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...ability, Errors & Omissions, Directors & Officers Liability, Media &am...iligence can help reduce the frequency and severity of E&O claims as well ...

...ission of the entity Payments mandated by law, such as medical and indemnity payments to injured workers ...coordinate insurance-buying expertise, and (2) you'll upgrade the risk manager...

... &O carrier. E-COMMERCE RISKS Computers, the Internet, e-mail, and e-commerce have opened up a whole new arena of cyber risk. There's a plethora of high-tech businesses and applications that no one even imagined 20 years ago. General Liability, Errors & Omissions, Directors & Officers Liability, Media & Internet Liability, Crime & Fidelity, and Intellectual Property policies are just some of the insurance contracts dealing with these exposures. Intellectual property rights, copyright and trademark infringement, defamation, privacy and confidentiality, liability, and crime are ... of losses that can arise from not safeguarding your system exposures. A multitude of property exposures also loom. Due diligence here means being aware of the types of exposures and the products that cover them. And because there are so many home-based businesses and home offices now, agents must include e-commerce and cyber-risk fact-finding in their renewal process in Personal as well as Business lines. Agencies should also give ongoing training on new cyber risks and products for producers and others who deal with clients. NON-OWNED AUTO EXPOSURES There are also Non-owned Auto exposures ... insurance agents need to be more diligent than ever in analyzing their Errors and Omissions risks and exposures. Some of the areas that open up agency E&O exposures are trusts, cyber risk, Non-Ownership Auto exposures (Personal and Business Auto), D&O Liability, Umbrella & Excess Liability, Employment Practices, home-based businesses, intellectual property exposures, and company solvency issues. Everyone at every agency should keep "due diligence" and "awareness" in mind while taking care of clients. Agents, like other professionals, ...

... , or whoever, is responsibile for seeing that the function is properly structured. In a small entity, he may do it himself. In a larger entity, he'll delegate the function to one of the following: Chief Financial Officer. The CFO, treasurer, director of finance, controller, or the like will most commonly have this function because risk management is largely financial. However, this person must rely heavily on the skills of other departments. Personnel Director. This position frequently oversees safety, possibly Workers Compensation, and ... and much depends on the particular entity and individuals. Since risk management calls for a wide range of different skills, a person with broad knowledge is more effective than a specialist. For entities without a full-time risk manager, duties are often as follows: Chief Administrative Officer (CAO) . The CAO, whether a city manager, county executive, district manager, mayor, governor, or whoever, is responsibile for seeing that the function is properly structured. In a small entity, he may do it himself. In a ... control of the bottom line: total risk-management costs. Total risk-management costs' refers to the sum of costs for: Losses incurred, direct and indirect Loss prevention Claims adjusting Insurance premiums Administration Losses incurred may be controlled through various loss-control measures. Also, the amount of liability claims may be affected-strongly-by prompt and fair payment of legitimate claims combined with vigorous resistance to questionable claims. If claims are not handled in-house (and few public entities handle them), you can monitor the claims adjuster's work. Loss-prevention costs may be minimized by questioning ...

... computed. IRC Section 3121(v ) . Payments to S corporation stockholder Payments to an S corporation stockholder are normally not compensation, and there is no withholding. Rev Rul 59-221, 1959-2 CB 225. However, if such payments are made to an officer or director, withholding may be required. See 1992 Pub. 589, Tax Information on S Corporations, p. 11. Continuing as a solicitor Not infrequently a retiring producer wants to continue to place some new business as a solicitor. A solicitor should be an independent ... (10), Reg. 1-1402(a )17(c )( 1 ) . Covenants not to compete Generally, non-competition payments are not subject to withholding. H. R. Barnett (1972) 58 T.C. 284. However, where a corporate officer had a duty to consult with the corporation and could not consult for others, a duty to withhold was found. F. W. Stevens (CA11 1983) 707 F.2d. 478. The moral seems to be not to link a covenant not to compete ... from earnings of the business, with as little down as possible. He typically wants to be able to depreciate as many of the assets he acquires over as short a time as possible, to reduce the tax cost of the acquisition. He also wants to avoid liabilities of the acquired business, such as errors & omissions exposure. The seller may wish to defer tax from the sale. He normally wants as much of a down payment as possible. He typically would prefer to have capital gains treatment for the gain from the ...

... Specific coverage for wrongful employment conduct can actually be purchased in a number of ways. The most common are individual stand-alone policies covering your liability for specifically enumerated wrongful practices. EPLI coverage can also be obtained by the attachment of riders or endorsements to other policies such as Directors & Officers policies and others. The benefit of purchasing coverage under a unitary contract, however, is that the coverage provided is usually broader and the limit of liability is not eroded by the payment of unrelated coverage. Endorsements to other kinds of policies ... only provide limited protection and often lack a duty to defend. But criticism of the stand-alone policy approach is that the coverage can be expensive and it may be difficult to purchase policy limits greater than $10 million. Yet another approach is to purchase coverage for defense expenses only. This approach has the benefit of protecting against the often enormous cost of defense but keeps the price down by precluding coverage for judgments and settlements. Duty to Defend The promise by the insurer to defend the insured is arguably one of the most desirable features ... Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Epl: Building A Three-Legged Stool Of Protection 4/30/2013 10:35:25 PM by CompleteMarkets Editor , Gary Griffin This content has not been rated yet. EMPLOYMENT PRACTICES LIABILITY INSURANCE: BUILDING A THREE-LEGGED STOOL OF PROTECTION by Gary Griffin, ARM, and Rachel McKinney As the incidence of wrongful employment practice suits increases, savvy employers are taking proactive steps to control both the frequency and severity of claims. But even the most aggressive prevention ...

... parent, child, spouse or sibling of an account otherwise on the books of the Agency or (ii) it is a subsidiary, affiliate of or otherwise under common ownership by an account otherwise on the books of the Agency. Personal accounts developed from officers, directors or employees of a commercial account that is not part of the Producer's Book of Business shall not be included in the Producer's Book of Business. c. Net Annual Commissions' shall mean gross annual commissions less return commissions earned by the Agency on account of insurance ... is a parent, child, spouse or sibling of an account otherwise on the books of the Agency or (ii) it is a subsidiary, affiliate of or otherwise under common ownership by an account otherwise on the books of the Agency. Personal accounts developed from officers, directors or employees of a commercial account that is not part of the Producer's Book of Business shall not be included in the Producer's Book of Business. c. Net Annual Commissions' shall mean gross annual commissions less return commissions earned by the Agency on account ... to a policy on which a commission has been received. d. New Policies of Insurance' shall mean new lines of insurance coverage produced solely and exclusively through the efforts of the Producer for accounts of the Agency assigned to the Producer for servicing. Increased limits of liability and/or endorsements to existing policies or consolidation of existing coverages under separate policies into a single policy or rewriting of existing policies with other insurance companies shall not be deemed New Policies of Insurance. 2. Term. Commencing ___, 20_, the Producer agrees ...

... ETC. 5.1 Objectives of buyers and sellers of agencies. In the typical s...t of a decedent, suffering both estate and income tax (with

...R LITIGATION, LIABILITY INSURANCE, AND DISPUTE RESOLUTION 4.1 Risks posed by...tion 1286. 4.5.2. Different options for dispute resolution. &

...ccounts developed from officers, directors or employees of a commercial accoun...13. Notices. All notices, requests, demands and other communication required hereunder shall be in writing and shall be deemed to have been duly given and effective (a) on the date delivered if delivered in hand to the Producer or to the President...