Don't Think You Need Privacy Liability Insurance? Think Again!

Pending situation in Tennessee. Local Blue Cross/Blue Shield health insurer has run up a $7million tab cleaning up the mess after they lost a laptop.

http://content.usatoday.net/dist/custom/gci/InsidePage.aspx?cId=jacksonsun&sParam=32630677.story

Judge orders Lloyd's to fund Stanford defense. Good example of why "final adjudication" language is important in D&O policies! Even more important is to have a "non-rescindable" policy so when the CFO takes a plea bargain everyone else doesn't loose their coverage.

Story in Houston Chronicle:

http://www.chron.com/disp/story.mpl/business/stanford/6837100.html

Another Day, Another Potentially Uninsured Embezzlement Brings A Compay To Its Knees!

I tell my clients all the time to not forget the crime insurance and the employee dishonesty part in particular! Here is yet another example of a company nearly going out of business because a "trusted employee" took everything. Over the years people have said to me they feel that buying employee dishonesty insurance sends a message they don't trust their employees. Not true! People buy insurance every day for all sorts of perils that may never effect them (except life insurance of course!). Good internal controls and insurance to back those controls up are an inexpensive way to keep this from happening to you. I have a folder of stories just like this one that go back 25 years and most of them are small businesses who got taken for well over $100,000.

The premium for a $1,000,000 employee dishonesty insuring clause for a company with 35 employees costs about $2,500 a year. A small investment to keep this from happening.

http://www.newburyportnews.com/punews/local_story_006223612.html

The Timing of Disclosure Regarding Legal Problems Embroils Fidelity National

The dilemma of what legal matters warrant disclosure to shareholders is a difficult one for publicly owned companies and particularly for financial services companies who bring suits and are defendants on a regular basis. Fidelity National Financial is just one example of a firm where shareholders are questioning the withholding of information about a legal mess. The underlying scandal is interesting too so worth a read:

http://www.nytimes.com/2010/01/07/business/07title.html?em