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Strategic Risks

Understanding & Managing your Risks

Understanding your risk is a complex process. It’s a process that requires purposeful effort, attention to detail and expert analysis. Strategic risks are risks to your business that do not include a physical element of loss. Hazard risks are risks that come as a result of losing tangible assets as a result of loss of property.

Professional Liability (Errors & Omissions)

You have professional liability exposure when you offer special knowledge/skills, and services that people rely on. Claims arising from allegations of negligence in the provision of professional services are specifically excluded in a standard general liability policy.

Professionals (including but not limited to medical professionals, engineers, consultants, and businesses offering consulting services) must protect themselves and their firms from claims arising from their failure to provide the agreed-upon services.

Management Liability (Directors & Officers (D&O) Liability / Employment Practices Liability)

Provides coverage for the legal liability of Directors & Officers of the corporation where they breach their fiduciary responsibilities. They may be personally liable if the corporation suffers a loss due to negligence. Common sources of liability include claims that Employees may bring, Creditors, Government, Customers, Shareholders, and Contractors.

Directors & Officers may also be held responsible for unpaid wages and taxes should the organization become bankrupt due to negligence.

Product Recall

This insurance indemnifies the insured for the cost of recalling products known or suspected to be defective, spoiled or contaminated. Reputational damage protection can also be included under a product recall program. This coverage is for claims brought against you by a customer for their financial loss due to the actual or alleged damage to their reputation.

Credit Insurance

Business credit insurance, also known as accounts receivable insurance, bad debt insurance, or credit risk insurance, is a financial management tool used to eliminate the risk of a sizeable unexpected credit loss resulting from insolvency or past due non-payment by your customer.

Accounts receivable may constitute up to 40% of a company’s total assets. When a buyer cannot fulfill their commitment to pay for the goods or services purchased, your company would have to absorb a loss. Your assets and net worth will decrease. With Credit Insurance, you can stabilize your cash flow, obtain more flexibility with your bank, and be able to expand your credit limits with existing customers.

Business Interruption

A large percentage of companies that have suffered a major loss, never recover from it. The major reason is either not having insurance coverage for business interruption or carrying inadequate limits. There are various forms of protection under Business Interruption coverage, all designed to assist you with loss of revenue as a result of a shutdown or slowdown in business, caused by an insured property loss. We can insure your loss profits, loss rents, or cover additional costs “in excess” of normal operating expenses that you incur to continue operations while your property is being repaired. We can also obtain the contingent cover that would reimburse lost profits and extra expenses resulting from an interruption of business at your customers’ or your suppliers’ physical operations. This too may be critical for your business, where you rely on key suppliers or clients.

Privacy and Network Security / Cyber Liability

Cyber Liability insurance is an insurance product used to protect businesses and individual users from privacy breach risks, internet-based risks, and, more generally, from risks relating to information technology infrastructure and activities. Privacy and network security breaches are becoming more and more common. Organizations must find ways to protect themselves against the costly expenses associated with a privacy and/or network security breach.

There is a great responsibility on businesses to protect the privacy of both their employees and customers. Companies may now face stiff fines and penalties for any breach which may lead to the release of this information and can incur enormous costs associated with advising and reimbursing all those affected by the privacy breach.

Crime & Social Engineering Fraud

The media continues to provide numerous examples of white-collar crime and the defrauding of employers.  Computerization, automation, and the increasing sophistication of perpetrators are causing crime losses to increase in frequency and severity.

Crime Insurance is designed to cover a range of acts relating to the theft of money, securities, and other property from a business or organization. Coverage generally includes employee dishonesty, forgery, theft, robbery and holdup, burglary, and fraud.

Social Engineering Fraud is a specific type of crime that leads to you or your staff being duped and misled into transferring money, securities, or other property funds to external criminals. This practice has become increasingly common over the last several years. Even though many instances of this fraud occur through email communications and wire transfers, your company’s crime insurance would provide coverage in the event of a social engineering fraud loss.

Kidnap & Ransom

In today’s uncertain political climate, conducting business internationally, as well as within the boundaries of Canada, has become more dangerous. Some estimates suggest that more than 15,000 incidents of kidnapping occur each year, and such occurrences are on the rise. While these events frequently occur outside North America, such incidents can occur in Canada and the United States.

Kidnap and Ransom coverage is designed to minimize the financial impact of a threatening incident on an organization and its employees. The coverage responds by payment of ransom monies and payment of numerous specified expenses associated with the total impact of an incident.

Planning the future of your business can feel uncertain. We're here to help.

At Wedgwood Insurance we have the experience to navigate the unique risks you face. We work for you, not the insurance company. This means you have more personal advice, more choice, better pricing and a representative that’s on your side in the event of a claim.

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