As we start a new year, there is no time like the present to evaluate your company’s insurance and risk management program and plan for the year. Here is a brief checklist of steps to take and things to consider as you move into 2016.

  1. Take inventory of all of your coverages
    • Do you have all the coverage you need?
      • General liability insurance
      • Errors & Omissions liability insurance
      • Directors' & Officers' liability insurance
      • Employment Practices liability insurance
      • Employee Benefits liability insurance
      • Fiduciary liability insurance
      • Cyberliability and Data Privacy insurance
      • Property and Business Interruption insurance
      • Fidelity & Crime insurance
      • Terrorism insurance
    • Are your coverage limits adequate to protect the business?
    • Are you comfortable with your deductibles or self-insured retentions?
    • Are all of your affiliates insured?
    • Are your officers, directors and employees adequately insured?
    • Do you anticipate any upcoming purchases, sales, and/or mergers or acquisitions?
    • Do emerging risks such as global climate change, terrorism, and data and systems security need to be addressed in your planning?
  2. Plan for your policy renewals
    • When do each of your policies expire?
    • Plan ahead for renewals—don’t wait for the last minute
    • What are you trying to accomplish with your renewals?
      • Increase coverage limits
      • Broaden coverage
      • Obtain better pricing
      • Change insurance carriers
    • Review policies that afford the right to provide a notice of circumstances that may lead to a claim to assess pros/cons of providing such notice in the current policy period
  3. Analyze the substantive terms of your policies
    • Do they really cover what you think they cover?
      • Carefully review coverage provisions, endorsements and exclusions
    • Has your coverage grown with your business?
      • Don’t rely on just carrying over your coverage from one year to the next
      • When your business changes and expands, your coverage must change and expand with it
  4. Put systems in place for administering your policies
    • Know what the notice requirements are in each of your policies and have systems in place for providing notice
    • Know what constitutes a claim that must be reported under the terms of your policies
    • Know what your policies require regarding submitting proofs of loss and the timing of such submissions
    • Know what your policies require regarding cooperation and insurance company consent before incurring expenses and settling claims
    • Do you have systems in place so that those responsible for providing notice to insurers are aware of claims or potential claims that must be reported?
  5. Review your broker agreements
    • Are they one-sided boilerplate agreements provided by the broker?
    • Do they clearly spell out each side’s respective responsibilities?
    • Do they clearly spell out the compensation to be paid to the broker and for what services?
      • Do they permit the broker to obtain contingent compensation from insurance companies?
    • Are the termination provisions clear and sufficient?
    • What will you owe the broker if the agreement is terminated?
    • Do they contain provisions regarding data protection, data breaches, and protection of private information and trade secrets?
    • Are there provisions limiting the broker’s liability and addressing how disputes are to be resolved?
  6. Review your vendor agreements
    • Do they contain sufficient indemnification provisions?
    • Do they contain adequate insurance requirements?
      • Are vendor policies primary and non-contributory with respect to your own insurance policies?
      • Do you have systems in place to ensure compliance with insurance requirements?
    • Do they contain provisions regarding data protection, data breaches, and protection of private information and trade secrets?
    • How are disputes to be resolved?