Disasters Kill Companies: Insurance & Risk Management Issues
In government contracting, the stakes are always high. The loss of a critical asset, worker or other potential liability, can cause a significant loss of revenue and put unnecessary stress on you and others in your company. With stakes this high, it is essential to implement the right mix of insurance coverage and risk management controls.
The only thing that is always the same is that eventually everything changes. With so much information in the digital cloud, companies need to add extra layers of protection to safeguard their resources. While there are some changes to FAR and GSA guidelines, government contracting companies need to understand the difference between first party and third party cyber coverage. Each has its own advantages, depending on the company needs.
Other exposures that companies tend to neglect include the defense base act (DBA) and foreign voluntary workers compensation. With many government contracting companies working with the Department of Defense (DoD) and other agencies in foreign countries, knowing the gap in domestic versus international insurance coverage and the accountabilities the company can be liable in an unfortunate event can save or break a company.
There are other examples in the webinar presented by USI. Employee benefits are at risk while the current administration continues to transition from the Affordable Care Act (ACA) to the Americans Health Care Act (AHCA) or from Obamacare to Trumpcare. In addition, DOL audits have seen a steady increase over the past several years with 67% of companies audited facing fines and penalties in excess of $250,000.
To learn more, download the full webinar below.