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The Worst Case Scenario
 
Thinking of Cutting or Canceling Your Insurance... Think Again  
 
Recently a diamond broker was on business traveling and had a Samsonite suitcase containing more than 70 rings and 150 loose jewels worth 1.5 million stolen from his rental car.  This was already a very sad story as he was en route to sell/exchange these goods as part of his business.  However, this was not the worst part, the worst part was that he did not carry insurance because it was "too expensive".
 
As both an insurance professional and a business owner this is heartbreaking.  His 40 year business, according to the diamond broker, is finished.  An absolutely unnecessary loss. 
 
If you are considering either canceling or decreasing your coverage I would caution you to consider the worst case scenario for your business.   Imagine that scenario with all its costs and inconveniences and then imagine not having replacement cost for your inventory, not having business interruption expense, and not having the backing of the legal defense of an insurance agency in a lawsuit.  Insurance takes the worst case scenario which has the potential to finish your business and keeps you afloat.
 
This caution does not mean that you shouldn't discuss whether you have the right types of coverage on at least a yearly basis.  However, it does mean that cutting the costs should not be the sole motivating factor in that discussion

Risks to Avoid When Formulating Layoff Policies

 

Most discrimination laws focus on not intentionally discriminating against individuals.  However, you can create liability in this area not only through intentional acts but also those which disparately impact certain protected classes. 

 

As many employers are considering lay-offs, they need to not only consider whether there is a true business reason for the individuals who are layed off.  But they must also ensure that the policies do not unnecessarily impact any particular group of people. 

 

Recently the US government initiated a suit against AT&T for their policy which refused to rehire employees who retired under certain retirement programs.  The government alleged that this policy unfairly impacted  former employees who were over the age of forty in violation of ADEA.

 

As such, employers should be able to clearly articulate the business related reason for the policy AND they should have researched how and who that policy would impact.  If there is a polcy which would achieve the same goal that has less of an impact on one particular group, the employer is obligated to adopt that policy.