Risk & Business

Here is the scenario, your best driver in your company got a DUI on the weekend after leaving a restaurant and blowing a .08 at a checkpoint. This driver has had a excellent record up till this unfortunate situation. Now he has lost his license and cannot drive for your business for 6 months. Its a tough burden on your company but you make arrangements and keep the driver on as an employee waiting for the suspension to end. Finally the day arrives and he gets his license back. You notify your insurance company that you wish to add him back on as a driver in your fleet. The insurance company refuses to allow it and tells you he cannot be a covered driver for another 2 years!! This scenario is happening more and more as insurance underwriting standards have become tougher than state driver licensing laws. This usually adds up to more headaches and higher premiums for business owners. The reason for this can be found in the courts. Insurance company claim payouts increase if the courts f

A recent survey of  business owners on what they felt were their top risks, found that the risk of business interruption is feared the most. With tight margins and a continued sluggish economy , business owners know that they cannot afford for their companies to be down for any amounts of time. With this in mind,  let's take a look at the top 5 risks of business interruption.  Supply Chain issues tops out as the number one concern. Most businesses depend on just a few main suppliers or vendors. This dependency has a major financial risk to the business if the flow of goods or services were to be interrupted or stopped all together. Cyber Crime falls in as the second biggest risk. This is a growing problem that does not show any sign of slowing down. Rounding out the last three are Fire, Natural Catastrophes, and Machinery Breakdown. Keeping the business open needs to be a main talking point for insurance professionals as they discuss risk management strategies with owners. The key

There is a lot of talk about the sharing economy. Businesses that share resources with other businesses for money, is rapidly increasing. An example of this would be Company A  allowing a salesmen from Company B to share a ride in a company auto, for a small fee. Property and equipment sharing is also another example. This isn't new. Businesses share things with other peers all the time. What is different is money is now exchanging hands. When money is involved you create contracts. When there are claims involving these sharing situations standard business owners policies may not cover the contractual relationship a sharing risk creates.  The insurance industry is starting to respond to this trend but not as fast as it is growing.  Make sure you contact your insurance professional and check your policies if you are sharing your business resources.  It may seem like a great way to make extra profits, but you could be risking more than you realize. Until next time be careful out ther