The Future of Liability and Risk for Businesses

Business Insurance Trends

The business insurance world is changing at a fast pace. Technology is continually evolving and businesses must change or die. New technology also brings change in claims and litigation. Often lawsuits filed today are indicators of business liability claims tomorrow.

Business Insurance

Business or commercial insurance coverage is available for almost every conceivable risk your business might face. The cost and amount of coverage of policies vary among insurers.  Also, the type of business you are in also impacts cost and coverage.  You should discuss your specific business risks and the types of insurance available for your business with us.

Future Business Insurance Risks

Intellectual Property

This is one of the fastest-growing areas of litigation. The average defense cost in 2013 was over $500,000. With more information being disrupted over the internet, claims are sure to increase. Intellectual property insurance coverage protects companies for copyright, trademark, or patent infringement and claims arising out of the company’s operation.

Healthcare Professional Liability

As we move well into healthcare reform, we are seeing increased litigation focused on medical providers of all kinds. In 2012, litigation against OB/GYN doctors accounted for over $3.5 billion in claims. Many states have enhanced medical malpractice laws designed to speed up and compensate injured patients.

Cyber attacks

Recent news that Russian cyber thieves stole billions of passwords should create heightened awareness about the risks and need for cyber insurance. The problem, Munich Re explains, stems from the fact that “most traditional property and liability policies provide no cover for cyber risks,” although there still may be a duty to defend until such time as coverage is determined.

Social Media

Social media is becoming popular with many businesses, and this increases liability risks. The combination of personal use and business use combined with privacy laws increases the risk to businesses of being sued by employees and other third parties. There is a definite increased risk of defamation, libel, and slander for firms who don’t outsource the service.

Directors & Officers Liability

Most business owners don’t believe they can or will be sued despite statistics that show otherwise. The latest number by Chubb Insurance Company shows that about 20% of firms have been sued for directors’ and officers’ negligence. Claims can be made by shareholders, regulators, family members, customers, vendors, and competitors.

DSM Insurance was formed in 2008 by insurance professionals with over 50 years of combined experience in the insurance industry….experience includes; senior officers of regional insurance companies & wholesalers, reinsurance brokers, personal & commercial insurance production agents, agency owners, underwriting managers & agency directors. DSM has the capability to place virtually all lines of business insurance.

DSM agencies are members of Trusted Choice. Trusted Choice is an agency recommendation engine. They represent Independent Insurance Agencies that agree to deliver exceptional client experiences. By maintaining standards that exceed expectations, Trusted Choice agencies put the needs of their clients first. Because they’re independent, they’re not restricted to the limited products provided by one single insurance carrier. As an Independent Agency recommended by Trusted Choice, DSM works for you, not for the insurance company.