Fraudulent wire transfers are an unfortunate reality in today’s business world, and as a result, many companies are now turning to insurance to help protect against these losses. The good news is that fraudulent wire transfers can be insured and the coverage is readily available at very affordable rates. The bad news is that placing the coverage correctly is very tricky, requiring significant expertise and attention to detail, so the chance of improper placement is high. In the marketplace today, coverage can be commonly found on a Commercial Crime insurance policy, or a Cyber Liability policy.
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Understanding How Insurance Covers Fraudulent Wire Transfers
The Hammer Clause – What Is It and When Is It Important?
What is the Hammer Clause?
The hammer clause is a coverage condition found in many management and professional liability policies. It works to cap the liability of the Insurance Company in the event that plaintiff offers you a settlement, but you reject it and continue defending. If you choose to reject the settlement offer and continue to ght, the Insurance Company will only cover you for the proposed settlement amount, and defense costs incurred up until you received the settlement offer. All additional costs will be excluded.
Understanding How Preambles Affect Insurance Policies
What are Preambles?
Preambles are the clauses in a policy that determine the scope of coverage being provided or excluded. In Executive & Professional Liability policies, they are often the most important clauses in the whole document. More money has been paid or denied to insureds based on policy preambles than any other clause. There are countless court decisions that illustrate the importance that preambles have on the coverage provided by an insurance policy.
Understanding Retro, Continuity, Pending and Prior Dates
Retro/Continuity/Pending and Prior Dates – What Are They?
These dates are your policy’s way of enforcing the basic principle of insurance that you cannot insure a known loss. In the insurance world, there is a common saying: ““you cannot buy fire insurance on a burning building.” Insurance is intended to protect against uncertainty by transferring part of that risk to the insurance company. Keep this in mind, you are transferring the risk of uncertainty to the insurance company. Once you determine that a loss is either occurring or imminent, you are unable to transfer the risk because the uncertainty has disappeared. Typical insurance is not intended to mitigate known losses. This principle is generally easy to enforce when the cause of loss and loss itself occur close in time. For example, if you discover that you are in the path of a specific hurricane, you will be barred from purchasing new insurance to protect your property from that hurricane (but not from future unknown hurricanes).
Our 2023 Scentsy Buddy Drive Donation Was a Success!
Again, another successful year for the Scentsy Buddy Donation!
Robin Valerio from our Mid-Atlantic office spearheads an annual drive to collect Scentsy Buddies for children in the hospital. This year we reached our goal and were able to collect 300 buddies for the children at St. Christopher’s Hospital of Philadelphia.
