The Battle Between "Blanket" Additional Insured Endorsement and the Underlying Contract

Posted by Purnima Rangarajan on Apr 7, 2015 2:21:47 PM

The construction and real estate industry continue to grow and so do the risk exposures from a fundamental inconsistency between a contract’s commercial intent and insurance policy language. “Additional Insured” is a very common requirement in a real estate or construction contract and many times there is a distinct lack of specificity with what is, actually, being required and why the provision is appropriate.  Additional Insured status provides vicarious liability coverage to an outside entity, usually, an owner or general contractor, under the subcontractor’s policy. It is often a requirement in construction contracts, and it can be the source of insurance disputes if not handled correctly given the changes in the regulatory framework of today’s insurance policies.

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Topics: Construction, Construction Accidents, Construction Premiums, Construction Project Risk, Insurance, Limit of Liability, Property Risk, Real Estate, Risk management, Risk Management Blog, Strategic Risk Management, The ALS Group, Total Cost of Risk

Defense Costs – In Addition to My Limits?

Posted by The ALS Group on Mar 24, 2015 2:13:16 PM

One of the areas often overlooked, but vital to an insured, is the defense costs coverage a liability policy provides. As some insureds may be aware, there are two types of defense costs payments, those policies that pay “in addition” to the limits and those whose payments are “within” the policy limits.

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Topics: Construction Project Risk, defense costs, Employment Practices, Fiduciary, General, Liability, Limit of Liability, Risk management, Risk Management Blog, Strategic Risk Management, Total Cost of Risk

What is Total Cost of Risk?

Posted by Albert Sica on Apr 24, 2014 12:20:41 PM

What is Total Cost of Risk and why do I care?

“What gets measured…gets managed!” This statement is the fundamental principle behind the concept of “Total Cost of Risk” (TCoR), and I’ve been saying this for years. The question that I am asked all the time is, “what is total cost of risk (TCoR) and why do I care about it?”

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Topics: TCoR, Total Cost of Risk, Total Cost of Risk (TCoR)

SUPERBOWL –Black Out or White Out? What's “Plan B”?

Posted by The ALS Group on Jan 30, 2014 10:03:42 AM

I’m sure everyone remembers the day the lights went out for 34 minutes during the Ravens/49ers  Super Bowl in 2012. Other than Ray Lewis having some choice words about the outage being more than a coincidence, the effects were minimal. What would have happened if they did not go back on?

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Topics: Property Risk, Reputational Risk, Risk Management Blog, Strategic Risk Management, Super Bowl, Total Cost of Risk, Total Cost of Risk (TCoR), Travel Risk

ERM: Where do we start?

Posted by The ALS Group on Jan 16, 2014 9:58:17 AM

With the multitude of information available, it is no surprise that the process of implementing an ERM Program seems daunting. As highlighted in our prior blog, Strategic Risks: More Important Now Than Ever, one of the very first steps in this process is to form an Executive Risk Committee (ERC).

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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Risk Committee, Risk Management Assessment, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)

What Makes an ERM Program a Success?

Posted by The ALS Group on Dec 3, 2013 3:15:18 PM

I recently attended the Enterprise Risk Management Roundtable Summit in North Carolina held by NC State University that included representatives from Harley Davidson and Caterpillar among  the speakers. This summit helped me gain insight into the emerging importance of a comprehensive risk management program and different strategies the companies have implemented.

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Topics: Enterprise Risk Management (ERM), Enterprise Risk Management, ERM, Risk Committee, Risk Management Assessment, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)

Political Risk - It Is More Than Just Insurance Coverage

Posted by The ALS Group on Oct 16, 2013 1:41:19 PM

Civil unrest in nations formerly viewed as politically stable, such as Sweden and Brazil, is forcing global organizations to consider Political Risk insurance coverage. A recent paper by nationally recognized insurer called the need for Political Risk coverage a “top emerging concern” for global companies.  This coverage is meant to help mitigate political exposures that are, normally, excluded from standard property policies to cover the risk to a company’s physical and financial assets. Some of the perils this policy will insure against are Terrorism, Riots, Deprivation or Confiscation of Assets, Strikes, Civil Commotion, Exchange Transfer Risk, Rebellion, and Insurrection. It is very difficult to model, price and determine the appetite for this coverage in the existing insurance marketplace. One thing that is important to note is that coverage is not guaranteed for the reason that rating basis in each country is based entirely on the underwriter’s evaluation of the risks in countries.  Coverage is available in both the public market, through OPIC and Miga, as well as the private insurance market.

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Topics: Cross Border Risk, Enterprise Risk Management, ERM, Political Risk, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Travel Risk

The Value of the Incident Report

Posted by Albert Sica on Sep 12, 2013 2:17:32 PM

Even when no injury occurs, after any workplace incident or accident, a written incident report allows a timely investigation. Some incidents are minor and need only slight fixes to prevent their recurrence. However, in more serious situations where a serious injury or property damage could have or did occur, a subsequent failure analysis allows management to determine how to best prevent similar occurrences.

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Topics: Claims Handling, Claims Management, Claims Management Process, Construction Accidents, HCP, Human Capital, Risk Management Blog, The ALS Group, Total Cost of Risk, Worker's Compensation

New Commercial Property Endorsement Can Mean Problems for Landlords

Posted by Albert Sica on Sep 5, 2013 2:45:26 PM

Each week, landlords and authorities discover 300 methamphetamine labs in the United States, according to National Public Radio. If you own apartments, rent hotels or run boarding homes, you may run into a tenant who decides your rental properties are a great place to cook meth. Better check your commercial property policy now, because recent changes in commercial property insurance coverage forms may significantly restrict coverage for the resultant clean-up from meth “cooking” operations.

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Topics: Construction, Political Risk, Property Risk, Real Estate, Risk Management Blog, Strategic Risk Management, TCoR, The ALS Group, Total Cost of Risk, Total Cost of Risk (TCoR)

Citi Bike Data Breach – Is Your Private Information “Secure”?

Posted by Albert Sica on Jul 31, 2013 2:45:51 PM

Think about how many times in the past year you have entered private information onto a website’s “secure” system; your name, credit card information, date of birth, social security number, billing address, mailing address, and/or security questions and answers and that’s how many times you were exposed to identity theft.   Each bit of information you provide online can be used by hackers to steal your identity. A cyber security breach is one of the most dangerous and harmful risks for any company regardless of the size or industry.  As highlighted throughout our Cyber Risk blog series, it is nearly impossible to be 100% protected from cyber criminals.  While having the appropriate insurance coverage is critical, there are other ways to mitigate this risk.  It is just as vital for company leadership to take a strategic view of the risks resulting from a data breach (e.g. reputational, supply chain, etc.)

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Topics: Breach of Security, Cyber Risk, Cyber Security, Enterprise Risk Management, ERM, Reputational Risk, Risk Management Blog, Social Media Risk, Strategic Risk Management, Total Cost of Risk, Total Cost of Risk (TCoR), Travel Risk

The ALS Group

Risk Management Blog

We manage more than a quarter billion dollars of premiums for a diverse range of clients around the globe. 

Our areas of expertise include:

  • Enterprise Risk Management (ERM)
  • Cyber Security & Cyber Liability Insurance
  • Construction Management
  • Customized Risk Management Assessments (RMAs)

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