| | In economically troubled times business risks
take on increased weight. You need to understand what risk
you can transfer and what risk you cannot. |
| | Read more about transfer risk |
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| | From the perspective of your risk manager's desk, technology manufacturing is changing in both important and subtle ways. |
| | Read more about managing risk in technology manufacturing |
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| | Equipment Maintenance agreements are a major expense
to every business and very profitable to manufacturers and
venders. Experts generally agree that equipment maintenance
contracts are mandatory for a smoothly running office. |
| | Read
more about electronic equipment maintenance |
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| | In the wake of September 11th’s tragedies,
insurers are quietly making good on their annual promises
to pay losses. Interestingly, all policies exclude war related
losses in a very broad way. However, America’s insurers
are stepping up to the plate in the biggest way they ever
have, declaring these losses as "terrorist acts"
and not excluding coverage. Does that affect you? Absolutely! The whole principle of insurance is to spread the
risk among those parties at risk. Even the largest multinational
insurance companies use reinsurers to further distribute the
loss potential by "laying off" a portion of every
account limit. Reinsurers have already suffered significant
losses in the past several years. Those costs are passed back
to your insurer in higher rates. This will continue in a noticeable
way. You will have your chance to help. |
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| | As an editorial observation by this author looking
back over 30 years of professional work in technology, I am
compelled to draw some provocative conclusions. In the old
days, when we re-wired boards to run IBM 80-column cards,
we'd call Chris when things got tangled up. |
| | Read
more about hardware and software unreliability |
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| | The peril of a $70 billion loss to a $300 billion
industry has made insurers wary. Today we have the national
threat of catastrophic losses due to terrorism. Not since
the War of 1812 has the continental United States been attacked
within our own borders. Rates and premiums have been actuarially
set based upon natural disasters, never the threat of deliberate
destruction. But enough of historical perspective. What do we do? |
| | Read
more about risk management |
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| | A word on possible exclusions to your policy. You
have been reading in the press about insurers difficulties
with terrorism. The World Trade Center tragedy was a $70 billion
loss to a $300 billion industry. Insurers can't take too many
of those. The federal government is considering being the
insurer for terrorism losses, much as they are for flood losses.
[The consequences of not having terrorism insurance coverage
would be creating ghost towns of America's largest cities!] What does that mean to you? Depending on your location and the magnitude of your
property values at risk, your insurer may be adding terrorism
exclusions to one or more of your policies. We will keep you
informed.
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| | Your losses may not be covered. One lesson often
learned very painfully is loss of property stored somewhere
other than at your office premises. |
| | Read more about off-premises property |
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| | Technology manufacturing is the backbone of our
New England economy. Our Massachusetts manufacturers have
long exported nearly 1/3 of our technology products, making
Massachusetts an important part of the global economy. Risks
of the international marketplace naturally follow. Products liability cases have become more prevalent
in the EU markets, as noticeable shift from the non-litigious
culture so long distinct from our U.S. culture. Cases of product
performance (Errors & Omission), product safety and worker/employee
protections in important overseas markets directly affect
our local manufacturers. With overseas markets being seen
as a crucial element to local economic vitality, risk identification
and minimization is important. |
| | Read
more about manufacturing risks |
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| | Let's face it, when the winds die down, no company
has any business braving the high seas. So, what should you
do when bookings are scarce, billings are down, and backlogs
are depleted? This captain is scouring his ship from stem
to stern. |
| | Read more of this article |
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| | Indirect income loss from assemblers, shock loss from dropped boxes, or shipping loss even with F.O.B.: understand what the potential problems and solutions are. |
| | Read more about unexpected losses |
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