While weÃ¢â‚¬â„¢ve purposely stayed away from the topic of gun liability or risk management lessons to be learned from last monthÃ¢â‚¬â„¢s shootings at Virginia Tech, an article in the Chicago Sun-Times detailing how a father obtained a gun license for his 10-month-old son forces us to visit this contentious issue. According to the May 13 article, the infantÃ¢â‚¬â„¢s father applied on his behalf for the license after his grandfather bought him a shotgun as an heirloom. The application for the license was approved on the third go, after being turned down twice due to technicalities. While the father fully expected the application for the license to be rejected due to his sonÃ¢â‚¬â„¢s age, it appears that in the state of Illinois there are no age restrictions on issuing a firearms ownerÃ¢â‚¬â„¢s identification card (FOID). At risk of stating the obvious, we note that 16 remains the age at which a teen, subject to successful completion of driver education, can apply for a driverÃ¢â‚¬â„¢s license in Illinois.Ã‚ AsÃ‚ many states have legislation in place that restricts or prevents lawsuits against the gun industry, the question is should we be concerned? Following the Virginia Tech tragedy and given the lawsuits targeting Ã¢â‚¬Å“Big TobaccoÃ¢â‚¬ , and more recent suits against the alcohol industry and fast food industry, could we be looking at a potential rise in claims under liability coverages? What are your thoughts? Check out further I.I.I. info on the liability system.
As British Prime Minister Tony Blair announces his resignation and with U.S. President George BushÃ¢â‚¬â„¢s tenure soon coming to a close, today we turn to two reports that speak to the growing risks from political violence and terrorism. First, a RAND study finds that technology and knowledge-sharing among diverse terrorist groups is on the up and part of the complex threat posed by terrorism. Given concern about terrorist interest in unconventional weapons, individuals with skills involving chemical, biological, nuclear or radiological (CBNR) technology are frequently a central focus of analysts. But, the RAND study shows the importance of individuals with expertise in conventional explosive technologies as well. Threat assessments should monitor both these areas, it says. Then a report in from LloydÃ¢â‚¬â„¢s and the Economist Intelligence Unit finds that despite growing awareness of terrorism and political risks, nearly one in four businesses do not have a business continuity plan in place. A further 14 percent of companies believe that their plan is insufficient in the light of political violence. These figures are even greater for smaller firms. Check out I.I.I.Ã¢â‚¬â„¢s information on terrorism risk and risk management for small businesses online.Ã‚
The 45th annual Risk and Insurance Management Society (RIMS) conference opens in New Orleans this weekend so itÃ¢â‚¬â„¢s no surprise that a rash of risk management surveys are being released this week. Two of the highlights are from leading brokers Marsh and Aon. A study by Marsh reveals that the majority of national oil companies do not fully understand the emerging risks they face and how to manage them. Among the top five risks identified by the oil companies one in particular stands out: environmental impact of operations. At last it appears the climate change issue is on the radar screen. Meanwhile, AonÃ¢â‚¬â„¢s first Global Risk Management Survey reveals that damage to reputation is the number one risk faced by multinationals today. Business interruption is cited as the second key risk, with 30 percent of survey respondentsÃ‚ reporting they are unprepared. Third party liability risk comes in at number three, as the U.S. compensation culture spreads. For more information on insurance and risk management for businesses, check out I.I.I.Ã¢â‚¬â„¢s insuring your business website.Ã‚
Policy options for extending the Terrorism Risk Insurance Act (TRIA) beyond the end of 2007 will be the subject of debate at a hearing before the House Financial Services Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises scheduled for next Tuesday. WeÃ¢â‚¬â„¢ve said it before, and weÃ¢â‚¬â„¢ll say it again, but a continuing federal role is key to ensuring that terrorism risk insurance remains available to those businesses that want and need the coverage. A study by the American Academy of Actuaries notes that incidents involving chemical, nuclear, biological and radiological (CNBR) incidents in four U.S. cities could result in insured losses in the hundreds of billions of dollars. For example, in New York, a large CNBR event could cost as much as $778.1 billion, with insured losses for commercial property at $158.3 billion and for workers compensation at $483.7 billion. I.I.I. has additional information on terrorism risk online.Ã‚
At least 25 percent of all businesses that shut down in a disaster never reopen their doors. But it’s not just about being prepared for disasters. For small businesses in particular, understanding their overall insurance needs can make the difference between long-term success or failure. Purchasing the appropriate amount and type of insurance coverage is critical. A new website launched by the Insurance Information Institute can help. Insuring Your Business: A Small Business OwnersÃ¢â‚¬â„¢ Guide to Insurance provides information on what coverages businesses should consider, as well as what business owners should know about risk management and loss control.