Supply Chain Management

Whether you’re a multinational company or a small business, Supply Chain Management is an intricate part of running a successful business. From production and distribution, to purchasing and inventory, controlling the risks associated with disruptions in your supply chain is imperative. Breaks in your supply chain can lead to:

• Reduction in your revenue
• Inflation in business expenses
• Jeopardizing production and distribution

To help you understand the risks associated with supply chain and assist you in becoming better prepared to handle disruptions, Seitlin brings you an informative webinar regarding Supply Chain Management presented by Zurich. This session will provide you the information necessary to anticipate, plan and compensate for supply chain disruptions, in turn protecting your profitability in the event of a break in your supply chain.

When: Wednesday, November 17, 2010
11:00 AM - 12:00 PM

To register for this event, please click on the following link:

http://seitlin.na5.acrobat.com/supplychain/event/

If you have any questions in the meantime, please contact Cristy Leon at 305.717.6054 or seitlin360@seitlin.com.

Seitlin Receives National Recognition as a Start! Fit-Friendly Company

We are extremely excited to announce that Seitlin has been recognized as a  Start! Fit-Friendly Company.  Congratulations to all of the staff who worked on the project.   Start! Fit-Friendly Companies are recognized by the American Heart Association as employers who go above and beyond when it comes to their employees' health.

The program offers companies several ways to be honored on an annual basis: "Gold" is the first tier of recognition and "Platinum" is the advanced tier. In addition, the recognition program also offers unique "Innovation" awards for companies that creatively tackle the issue of physical inactivity. The list of awardees includes 931 companies; 168 companies achieved Platinum recognition, 763 received Gold recognition, while 44 of those companies were also honored as Worksite Innovation Award winners, and 17 as Community Innovation Award winners.

Seitlin realizes the value of employee wellness, not only for its own employees, but for the employees of their clients and the community at-large. We have worked diligently to develop a program that encompasses an ongoing strategic approach that assists in fostering employee engagement and realizes great success for the employees and the company.

Our goal is to:

• To systematically promote wellness in the workplace, building an organizational culture that supports and promotes healthy choices, to minimize healthcare risks and costs over time
• To enhance employee engagement and increase employee loyalty through strategic and regular promotion of your positive, employee-centered corporate culture
• To educate employees and their families on topics related to their personal medical issues, as well as disease prevention

If you are interested in learning more about a customized Worksite Wellness program, please contact:  Kirstie Settas-Jones, Director of Corporate Wellness at 954-903-1629 or ksettas@seitlin.com.

Why a Stock Throughput

Globally, losses arising from International Cargo theft run into the hundreds of billions of dollars each year.  The FBI estimates this figure for the U.S. alone at over $18 billion.  Others think this figure is grossly underestimated and that the number is closer to $45 billion.

Natural Disasters are extreme, sudden, events caused by environmental factors that injure people and damage property.  The financial losses attributed to Hurricane Katrina in 2005 reached approximately $81 billion.  Hurricane Andrew in 1992 reached $26.5 billion and Wilma also in 2005 reached $20.6 billion.  Companies caught in the path of these storms were either badly damaged or temporarily ceased operating or worse, forced out of business totally.

A recent analysis has determined that 3 of every 5 major claims are directly related to human error.  Why people go on making mistakes is a question which cannot be adequately answered.  Even properly trained personnel can become careless and even reckless when responding to excessive pressure or suffering from fatigue, discomfort, boredom or stress.  Consider the damage that can be caused by improperly trained individuals.

Insurance serves to alleviate some of the financial losses to the supply chain attributed to the above perils.  One of the ways businesses can meet the challenges of the rising property premiums and deductibles is by insuring with a Stock Throughput  Policy.  This is a multi-peril policy that blends transit & stock policies into a single policy.  Cargo Underwriters that provide this type of coverage have not suffered as a result of some of the recent natural disasters as have the traditional property underwriters.  As a result, Stock Throughput Underwriters are able to provide terms, rates and deductibles that are not as restrictive as the traditional underwriters.

Coverage is provided on raw materials, work in process, finished goods and packing materials on a worldwide basis for goods being transported via land, sea and air.  In addition to the insured’s locations, coverage is provided for their goods while at warehouses belonging to sub-contractors, consolidators and freight forwarders.

Scope of coverage is generally on an all risk of physical loss or damage basis, including earthquake, flood and windstorm.  The valuation clause of the policy can be written at the insured’s selling price on finished goods and replacement cost on raw materials.  As indicated, this type of coverage is broad.  However, it does not answer all of the insured’s needs.  For example, Business Interruption is not part of this coverage.  A proper insurance program should be coordinated with a property policy to avoid gaps. 

What type of companies should consider a Stock Throughput?

• Manufacturers
• Importers / Exporters
• Distributors
• Logistics Providers
• Retail Operations (with transportation exposure; i.e. Furniture Stores)

For more information, contact:
Jack Rosmarin
Cargo & Marine Specialist
Tel:  305.717.6068
Cell:  954.439.1754
Email:  jrosmarin@seitlin.com

Cyber Liability: Do You Know the Risks?

Every single business in America has private information they have been entrusted to protect.  This information can belong to employees or customers and can range from social security and credit card numbers to medical records and business trade secrets.

 

An emerging business concern is the liability that may arise when private or confidential information is put at risk due to failure of computer security or a wrongful release or disclosure of information by the insured, the insured’s employee or another third party the insured has a relationship with. 

Currently 45 states, including Florida, have passed laws creating requirements for a business in the event of an information breach. Many times, failing to comply with these laws can result in financial penalties of substantial amounts.  Important questions to reduce the risk of significant penalties are:

• Do you know what to do in the event of a breach? 
• Is your company protected from the liability they may suffer? 
• Do you have the financial and logistical capability to comply with breach notice laws? 

A new type of insurance  coverage can provide protection against these risks.

Coverage Highlights:

• Defense Costs and Indemnity Payments for a Security Failure or Privacy Event
• Security Failure: a failure or violation of the security of a Computer System that results in or fails to mitigate any unauthorized access, unauthorized use, denial of service, attack or receipt or transmission of a malicious code
• Privacy Event: any failure to protect Confidential Information that results in an identity theft or other wrongful emulation of the identity of an individual or corporation
• Defense Costs and Fines and Penalties for a Regulatory Action brought by state, local or industry regulators (Defense costs included in form; fines and penalties coverage available by endorsement)
• Notification Costs and Credit Monitoring for individuals affected by a breach
• Costs to investigate a breach to determine the cause & origin
• Costs to restore an electronic database
• Costs for a PR firm to advise how to minimize harm and restore public confidence
• Contractual fines and penalties assessed by card associations (VISA, MasterCard, etc), (available by endorsement)

Indications for pricing can be provided based on a revenue figure.

For more information on Cyber Liability, contact:
Lisa DeKoeyer
Account Executive
Tel: 954.267.8542
Email: ldekoeyer@seitlin.com

Trade Credit Insurance, The Next Level of Protection

As many of us have come to understand quite clearly in the last few years, business transactions are not as secure as they used to be. Businesses rise and fall at the drop of a dime, and one may be left holding the bag without the chance for remuneration. How do you protect yourself in the event that your buyer becomes insolvent?

Trade Credit Insurance provides the protection companies need in such an event. The policy provides coverage for invoices or receivables that remain unpaid as a result of protracted default, insolvency or bankruptcy. Regardless of the commodity or service, Trade Credit insurance is applicable to any organization that is involved in Business to Business receivables, either domestic to domestic, or domestic to export.

 

When considering purchasing Trade Credit insurance, keep in mind that between 2008 and 2009, domestically 38% of businesses failed. All insurance carriers paid out in excess of $100 million in claims. The 4 most important reasons for having a Trade Credit policy are:

• Buyer Insolvency
• Catastrophic Loss: A debtor's inability to pay due to unforseen circumstances
• Increase Sales: Increased comfort level with new customers and extending credit
• Bank Financing: Higher advance rates for both domestic and export receivables

The following scenarios illustrate what Trade Credit can do to increase sales and protect your bottom line:

• A Computer company exporting to South America began with $3 million dollars. After purchasing TC insurance, they were able to extend credit, bringing their 1st year sales to $28 million.
• An Auto Parts distributor with $7 million in sales had an unpaid invoice for over $200,000. We came to find out that the account who the defaulted on the invoice had gone out of business. The TC insurance indemnified the Auto Parts distributor for 90% of the value of the invoice. Had they sustained a loss, this would have been catastrophic for a small business.
• A Brazilian exporter, exporting direct to Brazil, was in the midst of cash flow problems. Their TC policy enabled them to borrow up to 90% of the insured receivables.

In order to qualify for Trade Credit Insurance, you must have:

• Upward of $3 million in sales
• Business to Business receivables
• Year-end financial statements
• Bad debt loss
• Credit collection procedures
• Minimum of 1 year in business 

In these uncertain times, don’t be caught without this very necessary layer of protection for your business.

For more information on trade credit insurance, please contact:

Debbie Williams
Director, Trade Credit Insurance

Tel: 954.267.8577

Cell: 954.914.1728

Email: dwilliams@seitlin.com

Do You Have Enough Personal Insurance in Place?

Seitlin’s Private Client Division was established to provide risk management and insurance solutions to affluent individuals and their families.

In today’s busy world, personal insurance seems to just happen. People buy insurance as a series of transactions. The necessary due diligence is rarely performed to assure that all aspects of your personal exposures are adequately covered. Do you know if your insurance is up to par with your needs? Are your personal assets exposed? Has anyone ever done an in-depth audit of your personal insurance? From our recent experience we have noticed that most often the answer to these questions is a resounding “No”.

As an ever growing part of our company, we continuously look at clients and prospects and try to answer their question, “What is in it for me?” This question prompted us to look at a group of new clients and perform a thorough audit, comparing the client’s actual personal property and liability exposures to their current in force insurance.

Performed on 26 of our newest clients, the audit revealed that a large percentage of the group’s coverage did not meet their needs. Our findings were the following:

• 81% of clients were missing coverage they needed.
• 60% were overcharged
• 72% were underinsured
• 75% wanted higher limits for mold coverage on their homeowner's policy
• 77% had insufficient liability limits thereby exposing their net worth to litigation

Our audit process consists of a questionnaire that allows us to focus on the specific coverage needs of our clients, as well as the limits required to adequately protect their assets. We ask exploratory questions that focus on the personal activities of the insured and their immediate family. These inquiries help to uncover needs such as workers' compensation for domestic staff, excess directors' & officers' liability for those that participate on any charitable or non-profit boards, and Employment Practices Liability for their domestic staff should they ever be sued by an employee for sexual harassment, wrongful termination, etc.

Once we complete our risk management study we compare our findings to the current coverage and credits in place. This allows us to prioritize the client’s needs and to determine which areas need to be addressed. In addition to any coverage gaps or exposures we find, we also make sure that all applicable credits are being applied.

We have also uncovered in our audit process that many of our new clients were missing valuable services available to them:

Risk Management Services

• Hurricane & Wildfire Protection Units.
• Residential Risk Management Assessment
• Residential Security Analysis
• Complimentary background checks on domestic staff  

Collections

• Collection Management Services for Fine Arts and Antiques.

Do you think it is time for you to have someone perform an audit of your personal insurance?

For information regarding an audit of your personal insurance, contact:

Chad Rustici

Personal Insurance Consultant

Private Client Group

Tel:  954.267.8574

Email:  crustici@seitlin.com

Insurance Due Diligence Review, Imperative for Mergers & Aquisitions

A majority of today’s mergers and acquisitions come with hidden exposures and if not addressed can lead to catastrophic financial damage to the acquisition. In order to mitigate this concern, companies looking at acquisitions should engage an insurance consultant to review current exposures and coverage issues that influence the deal. The objective of engaging an insurance consultant is to initiate and manage the delivery of due diligence services, helping to coordinate the merger or acquisition for a private equity group, single corporate entity, or group basis. It is essential for the acquiring company to work with an insurance team that will uncover the unseen risks, costs, and potential liabilities of the new company’s insurance program.

The undertaking of a thorough due diligence review of a target company’s insurance and risk management program is an integral part of being successful in your acquisition. At Seitlin, our due diligence team will provide extensive research and analysis of the existing risk management programs in place that includes Property & Casualty, Employee Benefits, and Retirement Plans. Once the findings are completed, Seitlin will provide our client with a detailed Risk Assessment Report that summarizes the existing insurances in place, how accurately the coverage reflects the true risks associated with the target company, and any exposures not properly insured.

It is our goal to prepare our client making the acquisition and ensure their investment is safe and profitable if, and when, an exit is desired. Below we have identified a few key areas of focus to help uncover significant exposures and cost implications for the transaction.

• Identify uncovered liabilities and exposures that can be addressed by insurance products
• Complete Premium Comparisons and Forecasts – estimate the effect of the acquisition on future premiums
• Provide a forecast of estimated funded and unfunded long and short-term liabilities
• Identify potential areas of improvement for risk management policies and procedures
• Review of claims and loss history over the last five years – analyze trends in claims and make recommendations on how to improve

We are happy to discuss current and future opportunities to help position your company in the best way. Also, we can schedule an appointment to discuss the necessary items needed to complete our due diligence report.


For information regarding due diligence services for mergers and acquisitions, contact:

Jason Davis
Insurance Consultant
Tel: 305.717.6062
Cell:  305.401.6616
Email: jdavis@seitlin.com

 

Seitlin - Assurex Global's South Florida Partner!

Seitlin has been the proud South Florida partner for Assurex Global for over 20 years. 

Assurex Global is the largest association of independent insurance brokerage firms in the world. With 105 partners in 57 countries, this gives Seitlin the reach to serve our clients on a global basis.

Assurex Global was founded nearly 60 years ago and is based in Columbus, Ohio. Tom Cornish, Seitlin's President & CEO, has honor of being Chairman of the Board of Assurex Global and Seitlin's Chairman Steve Jackman is a past Chairman. We are one of the few partner firms to ever have two executives elected as Chairman of the Board.

Today we have many examples of ways that Assurex works for Seitlin and its clients. Whether we are placing property coverage in Brazil, or D & O insurance in Mexico or Workers' Compensation in Italy our partnership in Assurex Global allows us to work with our clients who are expanding operations to non-US markets.

If you have non-US exposures ask your Seitlin professional how our partnership in Assurex Global can help you.