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R&R Insurance Blog

Scott Brookes

Recent Posts

85% of Companies Experience Supply Chain Disruption

Posted by Scott Brookes

A recent survey indicates that a significant percentage of companies were affected by supply chain disruption over the last 12 months. In the survey sponsored by Zurich Financial Services Group and conducted by the Business Continuity Institute (BCI), 85% of companies say they experienced at least one supply chain disruption.

Adverse weather was cited as the main cause of disruption by 51% of respondents. Weather was also a prominent cause of disruption in a similar survey last year. Some of the other findings from the article are listed below.

  • The earthquakes and tsunami experienced in Japan and New Zealand this year, affected 20 percent of responding organizations, which were headquartered in 18 different countries.
  • Cyber attacks became a top three source of disruption in the financial services sector.
  • Supply chain incidents led to a loss of productivity for almost half of businesses along with increased cost of working— 38% of respondents—and loss of revenue—32% of respondents.
  • Longer term consequences of disruption in the supply chain included shareholder concern, 19% of respondents, damage to reputation—17%—and expected increases in regulatory scrutiny—11%.
  • For 17% of respondents the financial costs of the largest single incident totaled a million or more Euros. This figure almost doubles to 32% where less resilient supply chains are evident in the research.
  • Loss of talent or skills rose from 14th place in 2010 survey to 6th place in 2011. This represents a warning that lay-offs among supply chain partners is leading to increased disruption, the report says.
  • Seventy-four percent of respondents either strongly agreed or somewhat agreed with the proposition that outsourcing and just-in-time/lean strategies were making their organizations more vulnerable to supply chain disruption.

If you have questions on how to evaluate your business income exposure including evaluation of dependent properties, interdependencies between locations, and how to develop an adequate limit, please contact Scott Brookes. I have taught courses in business income including how to evaluate your exposures, develop a limit, and possible risk management solutions to minimize the exposure.

Topics: Cyber Liability, Scott Brookes, Business Interruption, business continuity institute, Business Insurance, disruption in the supply chain, how to evaluate your business income exposure, Supply Chain Disruption, evaluation of dependent properties, how to evaluate your exposures

European OSHA Reporting Increase in Workplace Violence

Posted by Scott Brookes

European OSHA Reporting Increase in Workplace Violence

European OSHA Reporting Increase in Workplace Violence

Bullying, harassment and physical violence are on the rise in Europe and employers and governments aren’t doing enough to prevent it, according to the European Agency for Safety and Health at Work (EU-OSHA). According to a report entitled Workplace Violence and Harassment: A European Picture, between five and 20 percent of European workers are affected by workplace violence.While 40 percent of European managers are concerned about workplace violence and harassment, only 25 percent of them have implemented procedures to deal with it. In some European Union (EU) countries fewer than 10 percent of managers have done so.

According to EU-OSHA, the problem is most evident in the health, education and social work fields, with more than 50 percent of managers identifying it as a health and safety issue.

"Workplace harassment can lead to stress, long-term sick leave and even suicide," says EU-OSHA director Jukka Takala. "The economic consequences are reduced productivity, increased sickness absence, higher turnover of staff and premature retirement due to disability, at often early ages."

Topics: Safety, OSHA, Workers Compensation, International

People your most important asset

Posted by Scott Brookes

Personal accident coverage including emergency repatriation is an important purchase. London has a long history of underwriting these risks in hostile territories. Even Afghanistan and Iraq remain on cover at competitive rates.

Corporations should also strongly consider the threats of sudden and unanticipated upheaval that can lead to kidnap and ransom situations. The value of cover for ancillary risks such as wrongful imprisonment is greatly heightened.

For more information contact the knowledgbrokers

Topics: International

Disruption to supply chains

Posted by Scott Brookes

Even without owned assets in a political hotspot a company dependent on the movement of goods through the region faces exposure to risk caused by unfolding political events.

The Suez Canal and the Straits of Hormuz are main arteries of world trade. If they close many supply chains will be disrupted.

For example, in November 2004 one vessel blocked the Suez Canal for three days delaying 140 vessels.

Sanctions can also have an impact - for example an imposition of sanctions on the Ivory Coast is having a huge impact on cocoa supply chains.

Non-physical damage business interruption/trade disruption insurance are proven claims paying policies that can protect your client's revenues, extra expenses and contractual penalties in situations beyond their control.

For more informayion contact the knowledgebrokers

Topics: International

Political upheaval-protecting contracts and payments

Posted by Scott Brookes

In recent years North American companies have been increasing their trade with the Middle East and North Africa. In the business mix will be service contracts, sales of goods and product purchasing. All of these are threatened by political turmoil.

It is possible to purchase contract frustration and/or trade credit insurance to protect balance sheets and cash-flow.

For more information contact the knowledgbrokers

Topics: International

Political Risk Insurance Protects Assets

Posted by Scott Brookes

At times of political uncertainty long term policies without cancellation provisions begin to demonstrate their value. Political risks underwriters have paid many hundreds of millions of dollars in claims following changes in government.

Causes can vary from seizure of fixed assets such as refineries, mobile assets like satellite equipment through to consumable goods that sustain warring factions. In one such claim it was fish for the rebel forces to eat!

In cases of emergency evacuation kit and property is abandoned. This is also insurable.

For more information contact the knowledgbrokers

Topics: Long Term Care Insurance

Are There Gaps In Your Client`s Coverage?

Posted by Scott Brookes

As most of us know Iran, Algeria, Yeman, Jordan, Morocco, Tunisia, Bahrain, Egypt, and Libya have all been witnessing differing degrees of anti-government demonstration in recent weeks. Responses from security services have been variable. As situations escalate so the levels of insurance policy adequacy are tested- make sure there are no gaps in your client`s coverage.

For more info contact the knowledgebrokers.com

Topics: International

Should you buy Rental Car Insurance / Top 10 Safety Tips for Rental Cars

Posted by Scott Brookes

Last week, I had a conversation with a business owner in Sheboygan about whether or not he should purchase the rental car insurance offered at the rental desk. Truly, the decision must take into consideration what is stated in your policy, and your agent should be able to answer that for you.

Most policies will cover physical damage to the rental car and liability coverage if you cause bodily injury and property damage to others. The two claims that are often NOT covered however are "Loss of Use" of the vehicle during the time of repair and "Diminution in Value" of the vehicle. When you think about "Diminution in Value," think if you pulled a CarFax report and it showed that 10K in repairs had been performed on the vehicle a few years back. Would you rather buy that vehicle or another without the damage although they look exactly the same? There is a dollar value associated with Diminution in Value that you could be on the responsible for if not covered by your policy. Loss of use is simply the loss of rental value to the rental business because the vehicle is in the shop getting fixed.

Next time, before you go on a business trip or vacation, be sure to determine what is covered and what it not. Ultimately, it's going to come down to your risk tolerance, but I still recommend that my clients take the insurance.

By the way, if you are told that you are covered for loss of use of diminution in value, I recommend getting it in writing.

Here are some top ten safety tips for rental cars:

  • Don’t rent a vehicle larger than you can handle safely. If you are usually a subcompact driver, think twice before you rent a super-sized SUV or motorhome.
  • Get acquainted with the controls. Look at the dashboard and steering column and locate lights, signals, horn, hazard flashers, windshield wipers and other essential controls. Make sure the controls are working correctly.
  • Get the feel of the brakes before you need to use them.
  • Check that the tires are inflated properly to prevent high speed crashes.
  • Look in the trunk to see if there is a spare tire and a jack.
  • If the vehicle has an on-board navigation system or emergency signal, make sure you know how it works.
  • Ask for any special equipment such as a child seat, and make sure it is in good shape and functioning correctly.
  • Figure out where you are going before you leave the car rental lot. Check the airport map and city map. Program the navigation system before you drive.
  • For your own personal security, try not to look like a visitor in a rental car. Don’t leave maps where they can be seen from outside your car.
  • Keep the vehicle windows up and the doors locked.

 

Topics: Personal Insurance, Business Insurance

Highest rates of non-medical use of prescription pain relievers occur in... Arkansas, Kentucky, Nevada, Oklahoma, Oregon, Tennessee, and Wisconsin.

Posted by Scott Brookes

Prescription drugs are being misused and abused by a wide variety of people. According to SAMHSA, about 26 million Americans between the ages of 26 and 50 report they have used prescription drugs non-medically at some point in their life. Other age groups have lower lifetime incidents: 13 million who are age 50 or older, 9 million who are age 18 to 25, and 3 million who are 12 to 17 years of age.

Attached is a link to a Q&A with Michael Klein, Ph. D. about Combating Misuse and Abuse of Prescription Drugs - which I feel is relevant to the workplace as well. Having handled many workers compensation claims in a variety of jurisdictions including Kentucky and Wisconsin, drugs like Oxycontin and resulting addiction can undoubtedly impact a workers compensation claim in a negative way.

http://www.fda.gov/ForConsumers/ConsumerUpdates/ucm220112.htm

 

Topics: Business Insurance

7/22/10 - Wis. Supreme Court Denies Asbestos Death Claim

Posted by Scott Brookes

The Wisconsin State Supreme Court says a brake maker wasn't negligent in a machinist's death.

Walter Tatera, a former Hales Corners machine shop worker, died of cancer in 2004. His estate sued FMC Corp., a Milwaukee brake manufacturer, alleging disks the company sent to Tatera's shop contained asbestos and caused his cancer.

A Milwaukee judge found the company was not liable or negligent in Tatera's death. A state appeals court last year, however, ruled FMC could be sued for negligence.

The Supreme Court reversed that ruling in a 4-3 decision. The court says FMC's conduct didn't amount to affirmative negligence.

Jill Rakauski, an attorney for Tatera's estate, says she's disappointed and believes the estate should be allowed to make a claim.

I would have to assume this individual did receive workers compensation benefits but the family felt the company was negligent and that they should have had the opportunity to make a liability claim for additional benefits - such as pain and suffering which could amount to a much larger award. WI has a strong history of keeping work injuries and resulting statutory benefits under workers compensation coverage, and not allowing suits under liability policies.

Topics: Workers Compensation, Business Insurance