|
OUR
INSURANCE
CLAIMS
HISTORY:
Although we have handled
many cases where a higher than usual exposure to potential liability
might have existed if we had been negligent in our activities, we
have never had a lawsuit or liability claim filed against us.
The closest we came was the threat of a lawsuit for alleged FCRA
violations. Our response, and the response of our information
broker, to this wrongful allegation was to provide the attorney with
copies of relevant sections of the FCRA along with documentation of
our proper and legal use of the permissible reasons in that
case. Additionally, this attorney was invited to file
suit, but warned to expect quick and professional legal retaliation
to any such frivolous action.
Due to good luck as much as anything we've done, we have never had a
workers' compensation claim.
OUR
PROFESSIONAL
LIABILITY
INSURANCE
AGENT:
Designing an adequate
insurance policy to cover the special risks inherent in the
investigative and security consulting industry can be an art.
Standard policies applicable in other businesses often leave the
greatest risks uncovered. Other policies contain inappropriate
exclusions and limitations or fail to provide coverage for financial
losses caused by error or negligence. Most agents are
unfamiliar with the needs of our industry and are unable to provide
the coverage that gives clients the level of protection they should
expect. In the United States, there are only a handful of
insurance agencies specializing in this coverage.
Since commencing business, we have dealt with Bruce Brownyard, a
nationally known, second-generation specialist in investigation and
security-related insurance. In fact, the president of Loss
Prevention Concepts, Ltd. has been dealing with Mr. Brownyard for
well over twenty years. During that period, Mr. Brownyard has
shared his expertise in limiting potential liability problems and
has patiently provided informal training in evaluating, interpreting
and understanding baffling insurance terminology. We feel his
guidance has done much to minimize exposure for our clients, and
highly recommend him to other professional investigators. Mr.
Brownyard has also been happy to provide his valuable input to us on
complicated investigations. In one case his insider's
knowledge of an offshore haven's imperfect confidentiality laws gave
us the means to obtain documented identification of ownership of an
offshore company--an accomplishment thought by the client to be
impossible. Mr. Bruce Brownyard is president of Brownyard
Programs, Ltd., PO Box 169, Islip, New York, 11751-0169,
telephone 800/665-7304.
OUR
PROFESSIONAL
LIABILITY
INSURANCE
CARRIER:
Many insurers of
liability for businesses similar to Loss Prevention Concepts, Ltd.
are offshore insurance companies with questionable reserves.
There have been cases where such companies filed bankruptcy after a
single substantial jury award. In other cases, some unethical
investigators and consultants will purchase a low cost policy with
an unrealistic high deductible--or select an economical, but
significantly inferior "claims made" policy.
Other low cost policies void or exclude coverage during the
investigation of insurance claims, domestic cases and some even
exclude coverage during background investigations. Some
investigators and consultants who lack the knowledge to evaluate
coverage rely on personal umbrellas (often riders on their auto
insurance policies), which would generally not apply in the event of
a business-related claim.
|
|
