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?

This article is presented for informational purposes only and is not intended to constitute legal advice.