The Impact of Culture on Safety: Why Rules Only Get You So Far
Nov 30th, 2023
November 30th, 2023 at 7:30 AM AKDT
Description | The Safety Culture of all organizations creates the observed results regardless of rules. Learn why rules only get you so far and how to create a culture of safety in your organization.
Presenter | Mason Mimnaugh and Paul Bragenzer
Here is the registration link | Register HERE
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Biden Signs Executive Order Addressing AI
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
President Joe Biden issued an executive order (EO) on Oct. 30, 2023, to establish standards for artificial intelligence (AI) safety and security, protect privacy, advance equity and civil rights, and advocate for consumers and workers. It also seeks to promote innovation and competition and advance American leadership around the world while ensuring responsible and effective government use of AI.
Directed Actions
The EO seeks to build on the voluntary commitments of 15 leading companies by:
- Requiring developers of the most powerful AI to share their safety test results and other critical information with the U.S. government
- Developing standards, tools and tests regarding AI’s safety, security and trustworthiness
- Protecting against the risks of using AI to engineer dangerous biological materials
- Protecting against AI-enabled fraud and deception by establishing standards and best practices for detecting AI-generated content and authenticating official content
- Establishing an advanced cybersecurity program to find and fix critical software vulnerabilities
- Ordering the development of a National Security Memorandum on AI use and security
The EO also seeks to address privacy concerns by calling for the passage of bipartisan data privacy
legislation and directs actions to prioritize federal support for accelerating the development and use of privacy-preserving techniques. It calls for action to strengthen privacy-preserving research/technologies and privacy guidance for federal agencies, develop guidelines for federal agencies to evaluate the effectiveness of privacy-preserving techniques, and evaluate how agencies collect and use commercially available information.
To advance equity and civil rights, the EO directs actions to provide clear guidance to landlords, federal benefits programs and federal contractors; address algorithmic discrimination; and ensure fairness in the criminal justice system. In support of workers’ rights, the EO calls for actions to develop principles and best practices, produce a report on AI’s potential impacts on the labor market, and study and identify options for strengthening federal support for workers facing labor disruptions.
In the pursuit of innovation and competition and advancement of American leadership, the EO directs action to catalyze AI research; promote a fair, open and competitive AI ecosystem; and expand the ability of highly skilled immigrants with expertise in critical areas to study, stay and work in the United States through existing authorities. The EO directs action to expand bilateral, multilateral and multistakeholder engagements to collaborate on AI; accelerate the development/implementation of vital AI standards; and promote the safe, responsible and rights-affirming development and deployment of AI abroad.
To ensure responsible and effective government AI use, the EO directs action to issue guidance for agencies’ use of AI, help agencies acquire specified AI products and services, and accelerate the rapid hiring of AI professionals. The White House states the administration will work with allies and partners to govern the development and utilization of AI. For more information, contact us today.
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Understanding Protective Safeguards Endorsements (PSEs)
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
When it comes to property insurance, it’s not just about securing a policy; it’s about fully understanding its nuances to ensure you have the highest level of protection for all your assets. In some cases, misunderstanding the details of your property coverage can mean the difference between safeguarding your investments and costly oversights.
One often overlooked policy detail is the protective safeguards endorsement (PSE). These endorsements, embedded within many commercial property policies, stipulate specific safety and security measures businesses must uphold. Failure to adhere to these measures can leave your property vulnerable and lead to insurers denying claims when disaster strikes. As such, business owners and property managers must recognize, understand and actively maintain the conditions set by PSEs to ensure the integrity of their insurance coverage and the safety of their commercial property.
What Are Protective Safeguards Endorsements?
In property insurance, PSEs are conditions of coverage requiring policyholders to ensure that specific protective devices and services are installed, maintained and in proper working order. Regarding property insurance, common examples of PSEs include automatic sprinkler systems, automatic fire alarms, burglar alarms, leak detection systems, security services and surveillance systems. If the PSE conditions are not met, the insurer will likely not pay for losses incurred.
For example, if a fire damages a restaurant and a subsequent investigation finds that the sprinklers weren’t functioning properly, an insurer can deny coverage due to a PSE.
The common types of PSEs added to a commercial property policy include:
- Fire protection system endorsement—An endorsement stating losses resulting from fire will not be covered by the insurer if fire alarms, sprinkler systems and other fire prevention systems are not in use or maintained.
- Security systems endorsement—States that security equipment like closed-circuit television (CCTV), motion sensor devices, weapon detection systems and intruder alert notification systems must be operational and retained. It may also require a service contract with security personnel.
- Water detection systems endorsement—Requires the use and upkeep of water detection equipment like water sensors and leak detectors in areas where water damage can occur, including toilets and laundry areas.
- Heating system endorsement—Requires insureds to utilize and maintain hot water radiators, furnaces and boilers, solar heaters and similar devices.
- Automatic commercial cooking exhaust and extinguishing system endorsement—Requires commercial kitchens in the food service industry to operate and maintain automatic fire extinguishers, hood exhaust fans and wet chemical systems.
Implications for Policyholders
PSEs have a variety of implications for policyholders. Chiefly, if an insured has a PSE in their policy, they are responsible for:
- Monitoring protective devices and keeping them in proper working order; and
- Notifying the insurer promptly of any malfunction or impairment of protective devices or services listed in the PSE over which they have control.
Beyond these obligations, there are a number of benefits to PSEs. Notably, since PSEs encourage loss prevention measures, they can positively impact the cost of premiums. In many states, insurers provide a premium discount or credit when such an endorsement is attached to a policy.
Key Considerations for Policyholders
There are essential considerations for policyholders when dealing with PSEs:
- Compliance with endorsement—Policyholders need to meet the conditions of the endorsement to prevent claims denial.
- Periodic inspections—Some endorsements may require regular inspections of protective devices and services.
- Ongoing maintenance—Having protective devices serviced at recommended intervals is necessary to comply with PSEs. Building owners and landlords may need to clarify in their agreements which party is responsible for maintenance duties and how to keep detailed records of maintenance activities.
- Notification responsibility—PSEs mandate that insurers be promptly informed when protective devices are suspended or turned off, even for repairs. It’s essential for policyholders to establish protocols—like where and how to send notices—for proper notification.
- Understanding potential impairments—To ensure that all listed systems, devices and services remain functional, it may be necessary for property owners and tenants to consult experts, such as system vendors or engineers, to learn how non-impairment can be maintained.
- Communication with insurer and broker—Insureds should maintain open dialogue if any change is made to systems or if they have concerns about compliance.
Conclusion
Commercial property insurance policies that have PSEs impose additional duties on insureds. To avoid the hassle of being denied coverage, ensure that protective devices and services are well-maintained and functioning as intended, and notify insurers immediately if these are suspended or impaired.
By taking these necessary steps, property owners, managers and tenants can better protect their interests and ensure they have the coverage they need when it matters most.
Contact us today for more information.
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Human Resources Developments and Considerations for 2024
Dec 14th, 2023
December 14th, 2023 at 10 AM AKDT
Description | This webinar will review impactful human resources compliance related topics and developments from 2023 and look forward to the traditional and evolving HR areas employers should be prepared to navigate in 2024.
Presenter | Craig Weller, JD
Here is the registration link | Register HERE
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Vendor Management Tips for Small Businesses
This article is from RISQ Consulting’s Zywave client portal, a resource available to all RISQ Consulting clients. Please contact your Benefits Consultant or Account Executive for more information or for help setting up your own login.
Small businesses often don’t have the resources or expertise required to conduct every necessary function. That’s where vendors come in; they provide access to expertise, products and services that help a business run. Establishing practices for managing vendors is important for small businesses’ overall success and long-term growth, but vendor management comes with its own challenges. Luckily, there are strategies small businesses like yours can implement to efficiently manage their vendor relationships in order to optimize processes.
This article explores vendor management, including its benefits, potential challenges and best practices that will aid small businesses.
What Is Vendor Management?
Overall, the purpose of vendor management is to build, maintain and strengthen relationships that are essential to an organization’s success, such as lowering costs or increasing output. Therefore, it is important to note that regardless of your small business’s vendor management practices, they require overall business discipline and coordination from different areas, such as HR, finance and leadership. This is because the key elements of successful vendor management include vendor selection, contract negotiations, onboarding, vendor performance monitoring, risk management and payment processes.
Importance of Vendor Management
Vendor management is important for several reasons, including having better vendor selection, streamlining contract management, creating strong vendor relationships, enhancing vendor performance management and creating overall better value. The end goal of vendor management is to strengthen a company’s success and overall market performance, improve efficiency and lower costs, all of which can help your business get the most value out of using vendors and achieve its short- and long-term goals.
Vendor Management Challenges
Despite the benefits to vendor management, there are challenges to consider as well. The most common vendor management challenges small businesses face include:
- Compliance risks
- Payment terms
- Data storage and security
- Reputation management
It’s crucial to have processes in place for your business to follow when working with vendors to avoid challenge-related threats. Working with vendors often includes sharing sensitive information, which puts your business at risk if you’re not careful.
Navigating challenges related to vendor management doesn’t have to be impossible. In fact, there are ways to make the process easier for your small business.
Vendor Management Best Practices
To navigate challenges and avoid risks, it’s important to develop established practices for your small business to follow when working with vendors. Consider some of the following best practices:
- Review contracts. It’s important to write formal documentation while working with vendors. This keeps both the small business and the vendor on the same page and accountable for any communication or financial transactions.
- Put all terms in writing. Put all terms and agreements between your small business and vendors in writing. This could include agreements regarding quality control, delivery times and communication expectations.
- Communicate regularly. Getting to know your vendors is essential; this means you must communicate with them on a regular basis. Respond to vendor communications quickly and address any issues in a timely manner. The more effective the communication lines are, the better the experience will be for both parties.
- Be selective. Every time a small business chooses to outsource, it has to navigate the risk of doing so. Therefore, it’s beneficial to avoid high-risk collaborations, such as vendors who process financial transactions on the organization’s behalf. It can also be advantageous to create a framework and policies that help deal with issues if they happen to occur to mitigate potential risks.
- Establish expectations. It’s important for small businesses to communicate their expectations to vendors. This means it’s important that you and the vendor are in frequent communication. Expectations can be built into the terms of the contract and mutually agreed upon before the partnership is finalized.
- Control costs. Before committing to working with a vendor, verify that the vendor’s pricing does not exceed your organization’s budget. All details pertaining to pricing, such as payment methods, billing frequency and rates, should be laid out in advance in the agreement between the vendor and the small business.
Summary
Working with vendors can be challenging, as there are a variety of moving parts for both the small business and the vendor. The way each business chooses to navigate working with vendors is unique, so what may work for one business may not be the best for another. However, by creating processes for your small business to follow when working with vendors, you can mitigate the risks you could face and establish a strong, successful vendor relationship.
For additional small business resources, reach out to RISQ Consulting today.
- Published in Blog