IRMI Update—Issue #84
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
March 9, 2004
In This Issue
Colleague,
You've been an IRMI Update subscriber for a while and look forward to seeing
it land in your Inbox twice each month. But one day you realize you haven't
received it in over a month. What's wrong? Did IRMI drop you off the list?
Of course we didn't drop you from the list. It's more likely that your company
has installed new software to stop unwanted e-mail from unscrupulous marketers.
This new software is screening out IRMI Update (and any of our other e-mail
newsletters to which you subscribe).
If your company installs new software to stop unwanted e-mail, be sure to
"white list" us so your issues won't be kidnapped. The procedure varies depending
on the software, but generally you will need to either add our "from address"
to your e-mail program's (e.g., Outlook's) contact list or you'll need to add
it to a special white list. All our e-mail newsletters are sent from IRMI-Update@IRMI.com, so these would be the
two "from addresses" to add. Why not add these to your Outlook address book
right now in case your company adds the screening software in the future?
On another topic, I'm delighted to announce that Kate Westover has agreed
to chair a new series of seminars on captives this spring. The captive seminars
she did the last 2 years were highly acclaimed by the 585 people who attended.
This time she is doing a more advanced program for single-parent, group, and
agency captive owners, insureds, and service providers that understand the basics
of how and why captives are formed and want to look at the practical realities
of owning and operating an insurance company. Go to the seminar web site to
learn more.
Of course we are also still accepting registrations for "Proactively Managing
Risks and Claims in Design and Construction." To learn more visit the seminar section of IRMI.com.
Have a great day!
Jack
Jack P. Gibson
President
IRMI
Staying Awake While Driving. —Automobile accidents
are a major cause of liability claims. They are also probably the most frequent
type of loss to penetrate into umbrella layers. All this makes preventative
measures very worthwhile. Since the NHTSA estimates that approximately 100,000
crashes each year are caused primarily by driver drowsiness or fatigue, one
area of focus should be increasing drivers' awareness of this problem.
All drivers who have worked a full day need to be conscious of their sleepiness.
Driving fatigue is only a fancy way to say "dead tired." Don't let employees
become statistics due to their sleepiness—motor vehicle crashes are still the
number one cause of death in the workplace.
The following are some practical tips to pass along to drivers of your vehicles:
- Eat a healthy, balanced diet—People who are not eating properly or are
overweight suffer from poor quality sleep.
- Set a consistent sleep cycle—Consistency can help when getting "more"
sleep is not an option.
- Maintain a regular exercise schedule—Any activity on a consistent basis
should help.
- Cut down or eliminate caffeine, alcohol, and nicotine consumption, especially
before going to sleep. It can take up to 6 hours to get caffeine out of
your bloodstream—any of these substances before bedtime can affect how you
rest.
- Recognize warning signs—drifting or weaving in your lane, tailgating,
missing your exit, head nodding, excessive yawning or rubbing of eyes.
- Pull over (in a safe area) for a short nap and then take a walk to stretch
and wake up.
- Caffeine/Coffee is, at best, a short-term solution of last resort, and
will wear off quickly when you are overtired.
Get more tips from: National
Sleep Foundation, National Highway
Traffic Safety Administration, or AAA Foundation
for Traffic Safety.
By: Paul Farrell, CEO, SafetyFirst
A Fleet Safety Provider to the Insurance, Trucking and Construction Industries
Cresskill, NJ
E-mail: paulf@safetyfirst.com
www.safetyfirst.com
Suggest a Risk Tip. Future issues of IRMI Update
will include more risk tips from our readers. Send us a practical tip (less
than 300 words) for identifying and managing risks, buying insurance, managing
claims, or filling gaps in insurance coverages. Submit a risk tip.
We'll give you credit for your contribution as we did for Paul.
There are now 512 articles on IRMI.com, and many more are in production.
Below you'll find summaries of some recent additions with links to the articles.
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"A State of Normalcy"—In
the first article for his new column on security, David Nicastro looks at
changing perceptions regarding security issues after September 11, 2001,
and the cost of being secure.
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A Formula for Determining
Business Interruption Loss—Daniel Torpey explains that the most
fundamental elements in resolving claims are a correct application of the
BI formula and the integrity of the calculations behind it. Examples are
provided.
-
Personal Risk
Management: An Overview—Insurance for Dummies author Jack Hungelmann
outlines 16 commitments agents should consider if they want to add risk
management services to their personal lines insurance department.
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Protecting Your Employees
from Identity Theft—Theft of information by employees is the
top cause of identity fraud. Conducting an audit of how personnel information
is stored and used can reveal gaps in controls. The Privacy Council explains.
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Subrogation Rights
Against Personal Auto Uninsured Motorists Coverage—The statutory
right of a workers compensation insurer or employer to subrogate against
a third party generally does not include rights to personal auto UM/UIM
benefits. Brent Cooper and Dana Harbin explain.
What's New—We
have recently updated IRMI Online to include the latest issues of our newsletters, The Risk Report, Captive Insurance Company Reports, and Financing Risk & Reinsurance, as well as
supplements to a number of the reference manuals. Please go directly to a summary of the new issues and information with direct links into the publications.
Design and
Construction Risk Seminar to be Held in Three Cities—If you manage
design or construction risks, be sure to check out our latest 1 1/2-day seminar,
"Proactively Managing Design and Construction Risks and Claims." In this workshop,
two nationally known experts will describe and explain today's design and construction
risks, how they are allocated in standard contracts, and what actions owners,
contractors, and design professionals can take to manage them. While the focus
is on risk management, the professional liability insurance options available
to the various parties will be discussed, with particular emphasis on ways to
work around any deficiencies in the coverage they provide. The speakers will
also share valuable advice on what to do when construction claims arise. For
more information see the Seminars section.
In IRMI Update 83, Jack Gibson asked readers about
the cell phone policies at their firms and whether cell phones—particularly
those with cameras—are a security risk. Many readers feel cell phones in the
workplace pose risks, both security risks and privacy risks. Below are some
of the reader replies received.
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If a company has employees that are willing to compromise corporate security
or interests, the issue is not with having a camera phone, it's with having
the wrong employees.
—Barry M. Port, Executive Director, PURMA, Southborough,
MA
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This is certainly an issue in healthcare where families want to photograph
newborns or could be photographing other patients, even if it is unintentional.
We do not have a policy yet, but are discussing this issue.
—Elaine Bierman
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Oh, my gosh—could we all lighten up? Who are these people that have the
time at work, during the course of the day, to be taking pictures with their
camera phones?
Why aren't they working? There are maybe six people in the world that
this would affect—another knee-jerk reaction to be sure!!
—Elizabeth Drysdale, PHM, AU, AIS, Product Management
Analyst, HAI Group
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In response to your query regarding the use of cellular telephones with
cameras, our firm has a strict policy regarding use of cellular phones and
absolutely prohibits use of cameras of any type, including cell phone cameras.
Only those employees with a need to be in constant contact are provided
cellular telephones. Even those employees, with the exception of a few senior
managers, are allowed to use them in our gaming facility.
In addition, we severely restrict (or, in some cases, prohibit) the use
of cellular phones of any type in many of our facilities for confidential
reasons. We have not had any problems with these policies in the past and
do not anticipate any in the present or future.
—Don Baker, Risk Manager, San Manuel Band of Mission
Indians, Patton, CA
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In my opinion camera phones cause an increased security risk. I further
believe that a restrictive program to deter their use in the workplace is
good risk management. My company has not drafted a specific policy regarding
camera phones but has a policy in place for all cell phones in the workplace.
They can be carried but should be turned off. However there are individuals
in the systems unit that carry them at all times for work purposes.
I think the issue is bigger than the use of camera phones by employees
to photograph confidential information. The root problem is the lack of
integrity in the workplace by these types of individuals. I feel as employers
it is our responsibility to review our hiring processes and practices. Complete
background checks may show a person's history but actual conversations with
past employers or subordinates of the person may show greater insight into
a person and what motivates them. This type of in-depth interview may also
help or prevent situations where people feel the need to steal from their
employer.
—Renée Jo Chatt, Director of Pricing & Product Management,
AAA Auto Club South Insurance Company
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Not only do phone cameras pose a security threat to businesses, they
pose a threat with the Fair Credit Reporting Act and Privacy Notices regarding
information kept in an employee and/or client file such as S/S numbers,
driver license numbers, financial statements etc. A restrictive policy prohibiting
phone cameras in business is definitely an excellent risk management tool
and should be implemented in all business, large and small.
—Louise D. Neigel, CIC, M&M Corp. T/A The Pilgrim
Organization
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We insure YMCAs across the country and recommend restricting the use
of cell phones in general in YMCAs. It is difficult determine if a cell
phone is equipped with a camera or not, so we recommend that members and
guests only be allowed to use their cell phones in the lobby to ensure that
there are no pictures being taken inappropriately. Our main concern is pictures
being taken in the locker rooms, bathrooms, or around the pool—especially
of the children.
—David Golnick, CPCU, ARM, Director of Risk Management
Services, YMCA Services Corporation
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My opinion is that companies should require employees to turn off their
cell phones before they come into the office and leave them off. Cell phones
should be kept in the car if the employee feels tempted to turn them on
during the work day. The workplace is no place for personal cell phones.
—Patty Black, CIC., CPCU, Commercial Underwriting,
Grange Mutual Casualty Company, Columbus, OH
-
Although we do not presently have a policy banning camera phones in the
workplace, I can certainly see the reason for concern. In our case, we have
restricted computer access/reporting so that CSRs and other non-management
people cannot walk off with vital information. However, I can see that it
would be simple for them to do so using these types of devices. Your question
causes me to think that it may be time to adopt such a policy for the protection
of my clients and my business.
—Robert G. Slocum, CPCU, CIC, The Slocum Agency,
Inc., Warwick, RI
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After 9-11 the level of paranoia has been raised in almost every level
of our lives. The business community has also been affected by the inside
trader scandals and corruption of management that makes good headlines.
My own company is making a policy about cell phones that seems extreme,
but typical of overreacting. Policies against cell phone cameras will not
prevent business espionage or individuals that get paid to spy on companies.
Restricting cell phone cameras may prevent high school kids from taking
pictures in the girls' locker room, but will not have any effect in other
areas, especially business.
—David Bailey, CSP, REM, AIG Consultants, Inc.
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Prohibiting use of, or maybe even carrying, these devices on company
premises seems like the only way to go. Not only are there intellectual
property hazards, but there are deep privacy invasion implications to contend
with, both in terms of customer information and of broadcasting another
employee's embarrassing moment. Our company hasn't announced any related
policy, yet, but it's only a matter of time.
—John Koehler
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My daughter worked for a government agency in D.C. a few years back.
They were not allowed to have a cell phone in the building, they were not
allowed to take files out of the office, and they were not allowed to access
the Internet from their internal network. But, if the employer sets these
rules there are two choices; comply or work elsewhere.
—Steve Meleleu
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