IRMI Update—Issue #96
An E-mail Newsletter for Risk and Insurance Professionals
ISSN: 1530-7948
September 14, 2004
In This Issue
Colleague,
The Secret Service recently warned financial institutions that they are at
least as vulnerable to computer crimes committed by employees as they are outside
hackers. This is probably true for all businesses. The constant knocking on
our firewalls by hackers and virus laden e-mails caused businesses and individuals
to focus on security against outside threats. Meanwhile, Salesman Bob has found
a simple way to use access to the computer system to inflate his sales and increase
his commissions. Most businesses have always been more vulnerable to theft from
employees than outsiders and computer systems simply give them additional weaknesses
to exploit.
This report should be a wake-up call to all businesses to be certain that
proper safeguards are in place. This might include background checks on new
hires, drug testing, reinforcing the need to keep passwords secure, requiring
periodic password changes, limiting access to certain systems, and monitoring
after hours access to systems.
Have you seen losses from employees using the company's computers to steal?
What other safeguards do you recommend instituting for this exposure? Please
send your comments.
[See reader comments.]
As an aside, we have received no responses to my last two editorials and
that is why there have been no My View responses of late. We wonder if you have
experienced any difficulty communicating with us. If so, please let us know.
We value your input and hope to hear from many readers on this important security
issue.
Registrations for the IRMI Construction Risk Conference are coming in fast,
and we expect well over 1,000 construction risk managers, insurance agents/brokers,
underwriters, attorneys, and others in Orlando. If you are planning to attend,
please sign up soon to assure you get a room in the main hotel and the workshops
of your choice. For more information visit our Conference site.
Have a great day.
Jack
Jack P. Gibson
President
IRMI
Risk Tip: Where is It?—Unfortunately, we don't
have a risk tip for this month because no one sent one in for us to use. Why
don't you send one for the next issue? It's a great way to put yourself and
your company in front of 30,000 risk professionals without paying $1,200 for
an ad in IRMI Update. Risk tips are short (about 200 words), and provide specific,
practical risk and insurance management advice. Of course, product promotions
are not eligible (that's what the $1,200 ads are for). Send your risk tip.
There are now 578 risk management and insurance articles on IRMI.com. Below
you'll find summaries of some recent additions with links to the articles.
-
The Trend Against
Diminished Value Coverage Under PAPS—Brent Cooper examines 2003
state supreme court rulings that personal auto policies do not obligate
insurers to compensate insureds for diminished value when their vehicles
are fully repaired.
-
American Insurance
at the Dawn of the Twentieth Century—This Risk and Insurance
History column by Jack Bogardus and Robert Moore looks at the birth of the
U.S. insurance agency system and how changes in technology, business practices,
and regulation led to agent/broker professionalism.
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A Framework
for Theft Prevention—To be effective, equipment theft protection
techniques need to be incorporated into an overall risk management strategy.
David Shillingford provides a framework for applying these processes.
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Restless in Riyadh—Both
high- and low-level employees need to be concerned about their personal
safety when traveling abroad on business. David Nicastro examines the security
issues and proper precautions.
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The Courts and Equitable
Subrogation Versus Equitable Contribution—In the first of a three-part
series, Joseph Postel examines court rulings on additional insured status
and how courts have treated—and often confused—equitable contribution and
equitable subrogation.
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.
Join us at the 24th IRMI Construction Risk Conference in Orlando on November
8–11 and find out how to improve your insurance, surety, and risk management
programs. Nowhere but at the IRMI Construction Risk Conference will you find
such an offering of great ideas. We invite you to share this educational experience
with us; network with more than 1,000 construction risk management, insurance,
and surety experts; and enjoy beautiful, sunny Orlando. We are now accepting
online registrations. To register, download the brochure, or view the agenda
and speaker biographies, visit the Conference section of IRMI.com.
IRMI is pleased to announce the fifth edition of its best-selling publication, The Additional Insured Book. It has been
updated to reflect all the changes initiated by ISO and the latest court decisions
handed down in the 4 years since the fourth edition was published. In particular,
the new book addresses revised editions of a number of additional insured endorsements
widely used in connection with contracting operations. These revised endorsements
significantly reduce the protection available to additional insured project
owners and general contractors and will have a major impact on insurance programs
for construction projects throughout the United States. In all, the fifth edition
of the popular book includes more than 450 pages of additional insured information
and strategies with more than 240 case citations. For more information, visit
the Products & Services section of IRMI.com.
Craig
Stanovich has written on CGL insurance for IRMI.com since 2002 on
topics ranging from the duty to defend to the CGL pollution exclusion to recent
additional insured changes. He is a co-founder and principal of Austin & Stanovich
Risk Managers, LLC, a risk management and insurance advisory consulting firm
specializing in all aspects of commercial insurance and risk management. Mr.
Stanovich specializes in commercial and business insurance, including commercial
property and time element, commercial general liability, umbrella liability,
workers compensation, and employment practices liability coverages. He has practical,
in-depth experience in risk management, pollution liability, retrospective rating
programs, workers compensation self-insurance groups, association captives/risk
retention groups, and is familiar with most legal issues concerning insurance.
For more information on Mr. Stanovich, see his full biography and a list
of his articles.
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