Month: December 2014

Drug Rehab Centers and Need for D&O Insurance

Drug rehab centers provide a valuable service to our communities. Alcohol and drug rehabilitation facilities provide medical assistance and behavioral and nutritional counseling to individuals who are in need of substance abuse services. They help individuals with drug dependency issues find a way to cope with their issues, and hopefully, create an outlet where they can become part of a group of like-minded individuals all hoping to find solutions to their problems and begin the healing process.

Running a non-profit business is no easy task. Oftentimes, there are unique insurance exposures that can be detrimental to the financial stability of the business. Non-profit companies typically require the use of volunteers and a board of directors, which can present challenges when physical or financial injuries occur.

The main reason that healthcare organizations such as these need to have more specifically-tailored Directors and Officers (D&O) insurance than non-healthcare entities is because they’re highly regulated and face a multitude of exposures unique to their field. In addition, they must also manage a potentially serious exposure that’s not unique to healthcare, but nonetheless is more prevalent in the healthcare field than in most segments of the economy, and that is antitrust violations.

This has become one of the more significant exposures to many healthcare organizations, and those involved in drug and alcohol rehabilitation should greatly consider the advantages of obtaining customized coverage in the event they find themselves accused of antitrust violations.

Accusations carry some fundamental concerns

Healthcare organizations, to some extent, must perform a balancing act that most other companies in America do not. They want and need to be successful, to some degree, and must turn a profit in order to survive, but they can’t become too dominant in their geographic region or they may be accused of creating a monopoly and violating antitrust laws. A healthcare organization can be accused of antitrust violations, especially when dealing with more specialized services and products that are not widely available.

These are real concerns for drug rehab centers and the people who run them. Insurance to protect directors and officers of these companies is vital to their ability to provide the services that this Country greatly needs.

Internet Liability Coverage Offers Protection from Hackers

Law firms, regardless of size or location, all have something in common: the need for internet liability insurance for a myriad of potential situations. For example, consider that every morning, the moment an attorney touches her desktop, laptop, tablet, or smart phone to review a brief, write up some notes on a case, or otherwise document some proprietary or confidential content on a client’s case, she is ripe for an attack from hackers who are intent on stealing the electronic information. This potential data breach-in other words, an event when someone’s personally identifiable information is compromised – could be extremely costly to the firm, from both a reputational standpoint as well as literally, in terms of the potentially huge financial damages from a lawsuit that it could face from an angry client whose most privileged, private data has been compromised while under the control of the lawyers.

Coverage can keep the company open for business

Fortunately, firms can purchase coverage that is specifically designed for the wide range of cyber, privacy, and media exposures they face as they conduct business using the electronic trading environment that is a part of the daily routine for most every company these days. The best providers offer policies that don’t have a retroactive date (meaning there is no restriction on the date when the liability-causing event occurred), as well as offer system business interruption coverage for lost revenue during downtime and even future revenue losses resulting from the harm to one’s reputation.

Smart about law, but easy prey

What is interesting to note that these otherwise savvy professionals may be considered “easy pickings” by nefarious groups who believe that legal eagles’ expertise often does not extend to computer technology, or at least not to the latest in safeguarding information. This idea is borne out by major incidents such as when a group of hackers based in China successfully infiltrated the data banks of seven law firms in Canada a few years ago, attempting to find confidential information about a multibillion-dollar takeover bid. Although ultimately it was found that the would-be thieves were not able to steal what they came looking for, the fact that they were able to penetrate the virtual walls of so many venerable firms was a major shock that underscored the need for coverage for these kinds of events.

Stay alert and get protection

Firms pull out all the stops to protect the interest of their clients, performing untold hours of due diligence in preparing for cases to get the best possible outcome. It is important to realize that data breaches and cybersecurity risks are now an inevitable challenge in conducting business, so obtaining internet liability insurance is essential for the firm’s own protection. Furthermore, such coverage could be looked at as a selling point; clients are going to be much more comfortable selecting legal representation when they know that the company invests actively in safeguarding the security and electronic confidentiality of their information. Contact a professional insurance agent today to learn more about this valuable coverage and all of the features and benefits it offers.

Know the Facts on Classic Car Insurance

Know the Facts on Classic Car Insurance

Owning a classic or collectible vehicle is a dream of many. For those in possession of these moving works of art, the right insurance is essential to maintaining your investment throughout the years. That’s why classic car insurance is important for owners of all valuable vehicles.

What Type of Cars Are Covered?

Highly-prized vehicles can come in many forms. Knowing the difference between these vehicle can help determine the best coverage option for your particular needs.

Antique - Vehicles older than 25 years are considered antiques. Antique vehicles must also be completely free of any modifications, and can include everything from motorcycles to trucks.

Classic/Collector - The classic/collector designation includes a range of vehicles that are at least 15 to 20 years old. Both original and modified vehicles can be considered classic or collector status when it comes to insurance purposes.

Specialty – Valuable vehicles of a more recent era are classed as specialty items. This typically describes newer exotic vehicles, as well as modified sports cars intended for speed.

What Protections Does Coverage Afford?

Classic car insurance must provide funding for essential maintenance and upkeep, as well as any damage that may occur to your vehicle. Unlike conventional vehicles, damage to a collectible can be extremely expensive, often involving exorbitant fees for even relatively minor repairs.

Keep Your Classic Vehicle Intact

No matter what type of vehicle you own, the right insurance company will work with you to devise a suitable policy for your exact needs. A reliable insurance policy will help keep your vehicle running smoothly for the duration, while also protecting your investment no matter what.


photo credit: myoldpostcards cc

Non-Profits Can Avoid Pitfalls By Carrying Charity Insurance

The amount of total charitable contributions by individuals, corporations, and foundations was an estimated $335.17 billion in 2013. Make no mistake, Americans are known for their generosity, civic duty, and desire to help others. It can be said that, as a nation, we rise to the occasion time and again to help those less fortunate individuals in need. This becomes even more evident by the significant and diverse charities that make up a large component of our communities.

Unfortunately, doing charitable work does not provide immunity to the many nonprofit organizations that are open to the inherent exposures associated with their line of work, or those that fail to obey the law, which is why they need charity insurance coverage for the exposures they face.

Non-profits often lack experience in this area

Nonprofit charitable organizations often do not budget properly, which leads to their not hiring experienced accounting, legal, or tax professionals to guide them through the legal and regulatory issues that can become a major concern. Predictably, they end up making costly errors as things end up slipping through the cracks.

Lawyers that frequently counsel nonprofit organizations describe some of the common types of legal trouble their clients often face, and how best to avoid some of those pitfalls. To protect a charity’s integrity and bank account, the lawyers say they must follow these important tips:

1. Always read the fine print. One of the most common mistakes that nonprofit organizations make is failing to read, understand, and negotiate contract terms.

2. Charity workers tend to be a little too trusting of the parties they deal with. They often assume that, because people are pleasant to work with, the terms of contracts will be fair.

3. Get sufficient insurance coverage. Many charities are so dedicated to their missions and programs that they fail to pay attention to some basic administrative needs, such as protecting themselves against liability risks.

4. Keep track of paperwork and deadlines. Another increasingly frequent and serious pitfall that charities face is the failure to comply with continuous reporting and remittance requirements under federal, state, and local laws.

5. Keep compensation reasonable. Payment of excessive compensation to people who are connected to a charity’s staff, such as members of employees’ or trustees’ families, can certainly be an issue. The amount of compensation needs to be “reasonable” in relation to the services being provided.

Charities function as a way of aiding less fortunate people but can come under heavy scrutiny. To avoid legal entanglements, always carry adequate charity insurance at all times.

Adapting Trends to Remain Competitive

Providing property and casualty coverage is at its heart a very necessary and helpful practice, in that the protection gives security and peace of minds to people that they need to go about their lives with the confidence that they can be made whole or compensated in the event of a claim. In processing all the millions of pieces of data behind these policies, there must be a staggering amount of back-office work to enter each bit of information correctly every step of the way, from inputting the insured’s personal information to collecting rates, completing policy agreements and more. This flow of data is only getting faster and larger as time wears on. For this reason, savvy MGAs, program administrators and carriers alike are constantly on a mission to find ways to enhance their business operations – that is, to find ways to function better, smarter, faster, with a greater level of accuracy always. This search includes rating engine insurance methods.

Productivity is on the climb

It’s a good thing, then, that modern technology has moved far beyond the pen and the clipboard. One example which can streamline operations substantially is the concept of the electronic signature, or e-signature, which industry analysts are saying has the potential to change the game for everyone. There are many reasons this development is catching on like wildfire, including:

  • Reduction of paperwork
  • Reduction of turnaround time (up to two weeks in savings, report some users)
  • Reduction of users’ practices and workloads
  • Popularity with customers, who enjoy the convenience and ease of conducting business in a manner that they are becoming increasingly comfortable with

Also, why not consider the significant benefits that this method brings:

  • It allows users to go green and reduce their carbon footprint. By collecting virtual instead of paper-based signatures, veritable forests can be saved and the reduction of mail that hardcopy would otherwise have created means that fossil fuel production in cars that transport the mail is also reduced.

These and other technology advances that support rating engine insurance processes will continue to develop; it’s important that agents, agencies, carriers, and managing general agents be prepared to adopt changes after vetting their security, of course, to ensure that they retain their competitive edge in the marketplace.