Category: Property & Casualty

Avoid M&A Blind Spots with Risk Management Due Diligence

Most businesses or firms involved in a merger or acquisition understand and value the traditional/financial due diligence process; however, many remain unaware of other types of risks that could impact the profitability of the deal.

At Scott, we offer a unique perspective through our analysis and assessment of M&A-related risk. With a focus on operations, human resources and culture, we can help uncover blind spots in a company’s risk management, insurance and/or employee benefits programs.  

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New Tennessee Workers’ Compensation Law Impacts Construction Industry

According to an update to Tennessee workers’ compensation law effective earlier this year, any company engaged in the construction industry in the state must be prepared to provide proof of workers’ compensation insurance coverage to officials or face immediate fines.

Tennessee is not alone in requiring this type of documentation. Other states have enacted similar rules with varying degrees of impact and severity over recent years.  While it may cause some headaches, ultimately this law serves to help contractors have confidence that subcontracted companies are carrying their own workers’ compensation coverage. This should serve to reduce the risk for the general contractor on the job.

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The Current State of Auto Coverage What you should know

Most businesses and individuals in the U.S. are experiencing considerable rate increases on auto coverage due to significant losses in the market. In 2016, carriers experienced a 13% spike in auto losses – their worst underwriting performance for the line since 2001 – and S&P projects that auto losses will increase by another nearly 7% this year, hitting a record high of approximately $154 billion. With the combined ratio at a 15-year high of 110%, it’s no surprise that carriers have been seeking rate increases into the double digits across their entire auto book.

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ACE-Navigator: Support for Your Workplace Injury Management Process

The once-popular television crime documentary 48 Hours got its name from a law-enforcement principle that the most critical time in solving a homicide case is the first 48 hours. In short, a case can go “cold” quickly, placing a premium on a swift, thorough and well-orchestrated response by investigators. A similar dynamic is present in worker’s compensation, although the critical window is often quite a bit shorter. The consequence of a delayed or incomplete response to a workplace injury or incident is routinely a sharp escalation in costs. 

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Service Interruption and Business Income … Are You Covered?

When it comes to explaining the need for various types of coverage to a client, we are often stuck using hypothetical scenarios. Recent developments in North Carolina’s Outer Banks provide a real-time example of a sometimes confusing coverage, business income.

On July 27, PCL Construction drove a steel casing through an underground cable that supplies power to parts of North Carolina’s Outer Banks. As a result, vacationers left and residents were without power for about a week. This loss of power could not have come at a worse time for the businesses in this area. Based on last year’s tourism numbers, Hatteras Island businesses could have easily lost $2 million for each day of the outage, according to Dare County officials. Some businesses may be able to withstand the loss of revenues for this time, while other businesses face the real possibility of closing the doors for good unless they have insurance coverage for the lost revenue. 

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