Most crime insurance policies exclude coverage when an employee is tricked into transferring money or property to an unauthorized party. This is considered to be willingly transferred, and is commonly known now as a “Social Engineering” crime. Social Engineering is not within the scope of most existing crime policies, which are intended for crimes such as holdups, robbery, or computer hacking by an outsider. Willingly parting with money or property is also a standard exclusion on crime policies.
N.P. James Insurance Agency sponsors Concord Carlisle High School Students In Control “Skid School” – Students Learn Driving Skills for Hazardous Conditions
Outsourcing a non-core function can save you time and lower your costs. It can give you access to added expertise, and can provide you with a valued partner in your business as the outsourcing relationship grows. In summary, here are reasons to outsource and reasons not, as well as how to get started:
Be sure your insurer understands your new operational configuration and has solutions within at least the same boundaries as before you outsourced. You will need to consider all outsourced services as branches of your own offices and operations. Coverage for each function should be analyzed and insured by you if not by your outsourced service provider.
Guest article by Gustav Widmayer – 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.
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.
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.
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!
In economically troubled times business risks take on increased weight. You need to understand what risk you can transfer and what risk you cannot.
Your attorney reviews all of your contracts, customarily asking you to send the insurance portions to us for review. Our habit is to comment on each clause and section, advising our clients what is covered and what is not covered under their current policy. After 20 years of business we also have a good sense of what is reasonably asked of you under any contract and what conditions you may be able to negotiate away.
Intellectual property, hard copy and in cyberspace, should be carefully examined to determine what insurance can best protect you.
As a technology based company, knowing you have developed state of the art products, you aggressively pursue selling a service contract to that large corporation you know badly needs your services. Required limits of liability usually follow, with specifics of coverage and “Additional Insured” status requirements.
What do you do?
Most software licensing agreements contain clauses regarding intellectual property infringement, usually indemnifying the client for any IP infringement complaints. Rarely are these clauses supported by insurance, which is important to understand should problems occur.
Given the high investment in information technology infrastructure, corporate management needs to establish policies and procedures to protect computers, e-mail, and Internet communications in the same manner other business assets are protected.
Computer theft is currently a $10 billion industry. Insurance claims on stolen computers have increased 600% with average theft claims in 1992 of $5,000 growing to $500,000 in 1998. Crimes where computers are the targets are currently being replaced by computers being used as the instrument of crime – are you safe?
At its annual meeting in Boston, the Massachusetts Society of Licensed Insurance Advisers elected Nancy James, principal of N.P. James Insurance Agency, as co-president for the 2006-2007 term.
It is not unrealistic to conclude that following the next major terrorism threat or attack on US soil or possibly a pandemic, the US government may restrict overseas outsourcing,…
Mass High Tech, 1998 – “War game aims to prevent legal battles for insurer” describes exercise undertaken to analyze and place first insurance policy on cyberspace.