IRMI Update—Issue #90
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
June 15, 2004
In This Issue
Colleague,
It appears that many businesses are ill-prepared for major loss events arising
from technology, media, privacy, e-commerce, and related risks. People don't
seem to have fully grasped the potentially catastrophic nature of these exposures
and, frankly, most insurance programs will provide little coverage for losses
arising from them. While we tend to think of this area as only affecting technology
companies, every business in America faces substantial technology risks. Thus,
there is a critical need for all risk and insurance professionals—regardless
of their industry focus—to understand these exposures and how insurance programs
match up to them.
To help increase understanding of these risks and how to handle them, we
have designed an intensive new seminar which we will present in three cites
around the country this August. "Tech-eRisk 2004" will be chaired by Mike Rossi.
Perhaps you've read his articles on IRMI.com—his column is one of our most popular.
Mike and his co-presenter, Mark Carey, will discuss the risks, how to transfer
them in contracts, how to insure them, and how to address them in an overall
enterprise risk management program. You will find an agenda, speaker biographies,
and list of cities where the seminar will be held, in the seminars section of
IRMI.com.
Thank you for subscribing to IRMI Update. Best wishes for a happy and healthy
summer.
Jack
Jack P. Gibson
President
IRMI
Mitigating the Risks of Employment References—Criminal
background checks and credit reports have an important place in hiring, but
they do not protect an employer from hiring someone who has no criminal history
or financial problems, and who is simply a poor performer. Many firms make it
a practice to only provide "name, rank, and serial number" on employee references,
with no comments about qualifications or performance, to avoid being sued for
defamation. However, in the past few years, 38 states have adopted laws that
afford employers substantial protection in these situations. When you need to
obtain or give a reference, you can cite these state laws to encourage open
dialogue and prevent your organization from hiring a lazy, incompetent, dishonest,
counterproductive employee ... or even a dangerous one, who could harm a third
party and trigger a negligent-hiring suit against your organization. Consider
protecting your rights in writing by including, in your employment application
or in a separate document, a release the applicant must sign that acknowledges
a previous employer's right—and your right, at any time in the future—to discuss
the applicant's job performance, reasons for separation, and whatever else the
state law allows. Cite the law. Your ability to fax a copy of that signed release
to previous employers might make the difference in your ability to have a candid
conversation with them.
Excerpted from "The CIMA Letter," March 2004
Corporate Insurance
Management, Inc.
Suggest a Risk Tip. Send us a practical tip (less than 300 words) for identifying and managing risks,
buying insurance, managing claims, or filling gaps in insurance coverages. We'll
acknowledge your contribution as we did for CIMA.
There are now 550 risk management and insurance articles on IRMI.com. Below
you'll find summaries of some recent additions with links to the articles.
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 use this
link to go directly to a summary of the new issues and information with
direct links into the publications.
Many brokers have the resources to assist their clients with a host of risk
management functions, from loss control to claims. Even smaller regional brokers
can usually provide help with key risk management tasks. Unfortunately, many
companies do not take full advantage of their broker's offerings. At the 24th
IRMI Construction Risk Conference, Frank Keres, a respected construction insurance
adviser, will lead a panel of brokers representing the production, loss control,
and claims functions in showing contractors how to take their broker relationship
to a new level. Panelists include Bill Kasper of Aon,
Dave Langton, of BB&T Insurance Services, Vickie Taylor of
Arthur J. Gallagher, and Troy Wagener of
Stewart Sneed Hewes. Mark your calendar to reserve November 8-11 and watch IRMI
Update for more information.
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