Kamis, 17 Januari 2013

What Insurance Should a Technology Start-Up Consider?

Is your tech company protected properly?

At different stages of the Start-Up process, you may want to consider different policies. 

In the beginning stages you may want to pick one or two of the following policies because of limited resources. 

Once you procure funding and are trying to attract the best of the best, you may want to purchase all of the policies below.


Here are the policies you may want to consider in no particular order:

Technology Errors & Omissions (Tech E&O) – Insurance for failures in your technology service that could cause customers damages. Tech E&O is most likely your most important policy because most everything you do would be considered a professional service and is excluded from the General Liability policy.

•Data Breach/Privacy Coverage – In case you lose sensitive employee or customer data, this policy pays to notify, monitor credit, and anything else you need to do in case of a breach.

•Media Coverage – If you are doing any kind of media/social networking. Some of these coverages are added automatically to the Personal & Advertising injury section of the General Liability policy, but are explicitly excluded for companies with a media focus. Examples of these exposures include: unintentional copyright violations, libel, slander, etc.

•International Coverage – If you have operations outside the coverage area (US, US Territories, and Canada)

•General Liability Coverage – This is your most basic insurance that most contracts will require: covers basic trip and fall. You can also add supplementary auto coverage for rented and non-owned (including employee) vehicles. If you have company vehicles, you should consider purchasing a Business Auto Policy.

•Property – Cover your computers, servers, tenant improvements. In addition, business income is added to this policy; look for coverage including business income for Denial Of Service attacks, etc.

•Directors & Officers – Insurance if you have investors or stakeholders. Directors and Officers can be held personally liable for decisions of the company, so this coverage can be crucial in securing high profile board members.

•Disability – Insurance for the owners if they are in an accident and no longer able to work.

•Key Man Life – Insurance policy in case something happens to your partner. Both partners buy life insurance policies on each other, so they can buy out the partner’s share. This way you avoid becoming partners with that person’s significant other.

•Health Insurance – Great way to keep your employees on board and attract great talent.

•Workers’ Compensation – Mandated by CA state law even if you just have one part time employee. Good news is that rates for most technology workers are very inexpensive.

•Employee Practices Liability – Protect yourself from employment related lawsuits: wage & hour, wrongful termination, discrimination, etc.

Some of these policies are offered in packages, while others are sold separately. Most large companies that contract smaller technology services companies will require you to have General Liability, Technology E&O, Workers’ Compensation, and Business Auto.

Talk to an independent agent to see which of these coverages would be a best fit for your business.

This article was originally published on the Co-Merge website on Jan 11, 2013. 

Jumat, 11 Januari 2013

Raymond Ankner -Expected to be the biggest life insurance failure in Illinois : IRS Attacks CJA & CJA and Associates’ plans

Raymond Ankner -Expected to be the biggest life insurance failure in Illinois : IRS Attacks CJA & CJA and Associates’ plans: To Read More: http://taxshelteraudits.org/2011/10/14/irs-attacks-cja--cja-and-associates-plans.aspx

Liquidation Comes For Lavish Insurer


January |By Laurie Cohen

      In 1990 Chicago insurance executive Raymond Ankner flew about 100 of his top agents to Germany to celebrate Oktoberfest in Cologne. The cost of the trip was $800,000, billed to Ankner`s businesses.

But insurance regulators were already beginning to question expenses at his main insurance unit, InterAmerican Insurance Co. of Illinois. When the Illinois Insurance Department obtained a court order last month to liquidate the company, court papers showed a balance sheet crowded with overvalued real estate and questionable intercompany transactions and reinsurance arrangements.
The collapse of InterAmerican is expected to be the biggest life insurance failure in Illinois history, with a gap of more than $30 million between assets and liabilities. It has placed in the hands of state regulators the largest real estate and mortgage
Portfolio.         

ever managed by the department. InterAmerican`s $33 million portfolio of mortgages and real estate covers several investments on Chicago`s Near West Side, including a loan on its headquarters at 901 W. Jackson Blvd. There also are more far-flung holdings, such as loans to donut shops in Michigan and a bed-and-breakfast in Vermont. Nearly half the $20.5 million in mortgage loans are behind on payments, according to department officials.
Regulators are still investigating the possibility that company funds were improperly used. No charges have been filed, and Ankner denies any suggestion of wrongdoing.
A report by an independent accountant hired by the Insurance Department highlights several questionable charges, such as a $53,681 check to Neiman-Marcus Co. for catering a 1989 Christmas party at Ankner`s apartment here, the company`s payment of most of his $5,200 monthly rent and even a portion of the salaries of Ankner`s gardener and housekeeper in Vermont.



The information provided herein is not intended as legal, accounting, financial or any other type of advice for any specific individual or other entity.  You should contact an appropriate professional for any such advice.