Does your firm hire sub contractors? Do your third party vendors have proper protection to ensure you are properly covered?
Often we find that this is not the case. The issues that arise can be costly – of time and money. For example: a third party vendor is hired to perform work for your business and they do not have workers compensation insurance. If they are injured your firm is on the hook, and that can affect your workers compensation experience modification as well as add additional premium for that policy term. This is the most direct loss situation.
Other third parties can have an even more volatile effect on your business and can impact your firm if they were to have improper cyber and IT policies and insurance. This can cause direct costs such as fines, lawyer fees and notification expenses and indirect costs such as a damaged reputation and opportunity costs lost. A key indicator of this exposure is how the third parties handle and protect your sensitive data.
It is important to identify, analyze and properly manage these risks. Contact DG for some help organizing, qualifying and documenting proper insurance from the contractors and third parties you do business with.