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... control group. Helps recruitment of in-demand workers. Telecommuting removes geographical barriers - you can hire the most qualified workers, no matter where they're located. And as more companies permit telecommuting, you'll probably find that offering telecommuting becomes a competitive necessity. May reduce the cost of disability leave. Telecommuting may help injured workers stay productive or ease back into the workplace while they recuperate. Facilitates compliance with air pollution and trip-reduction regulations. The federal Clean Air Act Amendments of 1990 require cities with certain levels of ozone pollution to implement trip-reduction programs. Employers with more than 100 workers at a site in these cities must take steps to reduce employee commutes. In addition, many states and localities, such as the San Francisco Bay area, have their own trip-reduction mandates. Reduces absenteeism. Pacific Bell found that ... equipment ownership disputes. Some of your potential telecommuters may already have a home office. If not, you'll have to provide the necessary equipment. It costs approximately $4 ,000 to equip an average home office with a work station, computer, telephone, fax machine, file cabinets, and possibly a printer. Your telework agreement should list office equipment and who owns it. If it's company property that you expect the worker to return when terminating the telework arrangement or leaving the company, then say so in the agreement. Don't forget equipment maintenance/service. Who'll be responsible for routine maintenance and service on equipment? If equipment is damaged by misuse, who's responsible for repairs? It may make sense to put telecommuters' equipment (even if employee-owned) under company maintenance contracts. Just ...

... properties. This emerging industry ...

... soft market renewal frenzy' that you fail to notice (or gloss over) the detriments of a cheaper renewal alternative. Examples: the Umbrella that doesn't include employees' in the definition of insured'; the Commercial Auto policy that limits radius of use; the claim, as opposed to loss, deductible; the Property policy with out an agreed-value provision; the Rental Property Liability coverage with a Pollution exclusion. Solution: Develop an online coverage matrix for any line in which coverage varies from carrier to carrier, and for company-specific products. Keep them current. Get double duty from that effort by using the matrices in your proposal documents to show why your proposed coverage is better that the competition's (or to show why a cheap alternative has coverage detriments) . Problem: I never said that ... year. Problem: There's a distressing tendency to get so caught up in the soft market renewal frenzy' that you fail to notice (or gloss over) the detriments of a cheaper renewal alternative. Examples: the Umbrella that doesn't include employees' in the definition of insured'; the Commercial Auto policy that limits radius of use; the claim, as opposed to loss, deductible; the Property policy with out an agreed-value provision; the Rental Property Liability coverage with a Pollution exclusion. Solution: Develop an online coverage matrix for any line in which coverage varies from carrier to carrier, and for company-specific products. Keep them current. Get double duty from that effort by using the matrices in your proposal documents to show why your proposed coverage is better that the competition's (or to show ...

... quick payout. Usually, the organization's expected losses are obvious but subject to timing fluctuation. An organization that could afford to self-insure these losses under normal payout time lines might not be able to handle a sudden demand for cash caused by timing variations. Transferring the timing risk to an insurer reduces or eliminates the sudden-demand risk. Risks that this technique addresses include Product Liability (including products recall), Pollution Liability, Errors and Omissions Liability, Workers' Compensation, and high-deductible Property. Various types of entities that could use Financial insurance include medium-size and large self-insured corporations, self-insured public entities or pools, captive insurers, and risk-retention groups. Insurance companies have used variation of this technique for many years (Financial reinsurance) . In the purest form, Financial insurance premiums are calculated by adding the current ... of loss payouts to expenses and insurer profits to establish the insurer's aggregate liability. This would be a pure timing risk transfer. In many Financial insurance transactions, however, underwriting risks also are transferred to the insurer. For example, the insurer's aggregate loss limit could be greater than the actuarially forecasted ultimate cost of the claims. If claims development is unexpectedly high, the insurer will pay the difference. Of course, this underwriting risk transfer entails an additional premium. Financial insurance policies contain an experience account provision, or commutation clause, which allows the insured to cancel the contract and receive a significant return (often 80% to 90% or more) of the unused premium plus interest earnings. TYPES OF FINANCIAL INSURANCE Financial insurance can be prospective or retrospective. In either case, the premium ...

... dropping off a brochure. 4. For a distressed agency, a seminar type of meeting might not be economically feasible. However, an association offers ways to approach a group. Consider sending a tip sheet' or an unsolicited newsletter or information item to the association's office for insertion in the association newsletter. Offer some free service to the association membership, such as a checklist for employment practices or pollution. This is a way to be very creative and contact a lot of people for very little cost. 5. Faxed solicitations, in my opinion, should be primarily a service to the prospect, such as an employment practices or pollution checklist with a fax response/request form attached. You can always add a byline that identifies you as a restaurant specialist with broad coverage and low rates ... development and implementation of a marketing program. While the agency needs to recognize its problems, it must go to its strengths and zero in on areas where it can realize some short-term success. Success breeds success, and small, short-term victories can be built upon. First, let's start with markets. Identify a class of business for which you have a market or two with competitive pricing and enhanced Property or Liability coverage forms. This tells you the carrier wants that class of business. Build your initial marketing around that area. For example, let's assume the agency has a good program and market for family-style and fast-food restaurants and is located in a growth area. If the program is relatively new and the carrier does not have a large group of agents in the agency's marketing area, prices ...

... to a general contractor, you would probably need to list only the Workers Compensation, Liability and Umbrella coverages, not property. I d also suggest that an agent include all applicable policies (primary and excess) unless the request for the cert asks only for limit/coverage verification up to a certain limit. When an agent issues a certificate but the excess policy excludes certain coverage (example: pollution), should the agent list the excess policy? If the certificate request is to show proof of Pollution coverage, the agent should not indicate on the cert any policies that exclude this coverage. Listing the policies although the coverage was excluded (even with a notation) might confuse the certificate holder. If you need to issue a cancellation notice (some carriers are putting this on the agent's ... policies? For example, do they list the primary and all excess policies? I could not locate any specific legal precedent while researching this issue. It makes sense to list only those &# 160coverages applicable to the request for the cert. For example, when sending a certificate to a general contractor, you would probably need to list only the Workers Compensation, Liability and Umbrella coverages, not property. I d also suggest that an agent include all applicable policies (primary and excess) unless the request for the cert asks only for limit/coverage verification up to a certain limit. When an agent issues a certificate but the excess policy excludes certain coverage (example: pollution), should the agent list the excess policy? If the certificate request is to show proof of Pollution coverage ...

... contingency plan (Example: alternate locations and supply resources,back-up computer, etc.) Appointment of the Crisis Management Committee Organization of Emergency Response Teams Institute a media management and public relations strategy Continuous vulnerability and crisis assessment Implementation of emergency response action guides (Example: evacuation, fire, earthquake, flood, utility failure, explosion, severe weather, flood, product contamination, hazardous chemical spill, pollution abatement, violence in workplace emergency, extortion, kidnap, bomb threats, actual bombings, etc.) Preparation of a Crisis Management Manual Production of a Crisis Management Emergency Directory (Includes: vital resources, emergency numbers, non-business hours contact information, etc.) Adoption and distribution of the Crisis Management Manual Anticipated operations during crisis impairment Pre-planned restoration tasks Establishment of a recovery plan Maintenance of on-going ... Management Committee area. The Emergency Response Team should have the primary responsibility for the immediate management of any developing crisis situation. The committee concept for the Crisis Management Plan is somewhat similar to the typical Loss Control Committee approach, however, the following significant differences must be noted: On-going Objectives: Operational goal is to focus on life safety, crisis vulnerability assessment, business continuity and financial survival rather than property, liability including auto, and workers compensation insurance claims frequency and severity Management Participation: Significantly higher level of management is represented on the committee, thus allowing for effective decision making while responding to the established line of authority 8.4 Plan Operating Authority Exhibit 8.2 illustrates "Crisis Management Plan Responsibilities" and the typical chain of command. Committee responsibility, Emergency Response Team direction and reliance ...

... built on trust and experience over long periods of time, not on a single multi-year policy with an insurer you know little about. More is less. Though multi-year policies allow for more efficient use of limits than traditional policies do, the limits they provide are spread over several years on an aggregate basis. Such limits might prove inadequate if a loss occurs over many years, such as losses involving pollution or asbestos liability. Under a traditional program, such claims might trigger several years of insurance, resulting in a cumulation of limits. Under the multi-year policy, there's usually no such cumulation. The substantial discrepancy in available limits between these two kinds of policy could expose the insured to an unexpected uninsured loss. What's A Risk Manager To Do? Protection of the corporation against catastrophic loss is paramount ... The renewed interest in these policies is generally as a means of locking in current beneficial terms, conditions, and pricing. Many insureds are considering such programs, believing that the very soft insurance market is about to end. But can you really be guaranteed that coverage or price will not change? Does committing to a multi-year deal really make sense? Here's what you should know before you decide. Property, Package, D&O , and many other kinds of insurance can now be purchased on a multi-year basis. While such deals may benefit insureds who enter into them, some are merely marketing gimmicks designed to attract new business or retain existing business. Insureds are being enticed by the promise of administrative efficiency, reduced premiums, and more efficient use of limits. But there's more you should ...

... "dynamic risk" and "static risk." A changing environment (lighting, hurricanes, earthquakes, floods, etc.) does not affect static risks. Change does affect dynamic risk. In the 19th century, cowboys and Indians created risk for each other. Wars with muskets and cannon were a problem; nuclear war wasn't. Train and stagecoach robberies were an issue; carjackings weren't. Pollution was about road apples; today it's about superfund sites and oil spills. In yesterday's world, hurt feelings often led to a duel — today, they lead to lawsuits. &# 160 The world of business is changing; there's a need for strategic and marketing planning, an evolving entitlement mentality, a growing sense of victimhood, and expectations for large short-term return on investments. We're also ... the machine. &# 160 The task of risk management is to protect a person, or business, against exposure to loss. &# 160 Five types of "bad" can happen to people: Premature death Unplanned aging Accident or sickness Unemployment Other contingencies — divorce, behavioral problems, bankruptcy, etc. Two types of "bad" can happen to things: Destruction of or damage to property and loss of its use, or Lawsuits. &# 160 The potential loss determines the best method to handle the "bad." Losses are defined by frequency (how often) and severity (how bad) . The options in loss control are: Avoid (high frequency/high severity losses) Assume (low frequency/low severity losses) Reduce (high frequency/low severity ...

... control group. Helps recruitment of in-demand workers. Telecommuting removes geographical barriers - you can hire the most qualified workers, no matter where they're located. And as more companies permit telecommuting, you'll probably find that offering telecommuting becomes a competitive necessity. May reduce the cost of disability leave. Telecommuting may help injured workers stay productive or ease back into the workplace while they recuperate. Facilitates compliance with air pollution and trip-reduction regulations. The federal Clean Air Act Amendments of 1990 require cities with certain levels of ozone pollution to implement trip-reduction programs. Employers with more than 100 workers at a site in these cities must take steps to reduce employee commutes. In addition, many states and localities, such as the San Francisco Bay area, have their own trip-reduction mandates. Reduces absenteeism. Pacific Bell found that ... equipment ownership disputes. Some of your potential telecommuters may already have a home office. If not, you'll have to provide the necessary equipment. It costs approximately $4 ,000 to equip an average home office with a work station, computer, telephone, fax machine, file cabinets, and possibly a printer. Your telework agreement should list office equipment and who owns it. If it's company property that you expect the worker to return when terminating the telework arrangement or leaving the company, then say so in the agreement. Don't forget equipment maintenance/service. Who'll be responsible for routine maintenance and service on equipment? If equipment is damaged by misuse, who's responsible for repairs? It may make sense to put telecommuters' equipment (even if employee-owned) under company maintenance contracts. Just ...