Services: Business Risk Management
How to manage and mitigate your business risk in the US
You’ve worked hard to set up and expand your subsidiary in the United States, but how do you manage and mitigate your business risk? Axelia Partners can help you understand the common risks and liabilities your subsidiary faces in the United States, so that you can prepare for them. We will provide support as you assess your major risks, prioritize them according to your goals, and setup the right level of protection.
Our business risk management services comprise the following three areas.
1- Inter-company agreements
Companies that are part of the same group engage in transactions (e.g., sales or transfers of goods and services) and operations among them. These companies may also necessitate the direct or indirect involvement of shared executive management, directors, shareholders or partners. As such, inter-company agreements govern the relationships among companies that belong to the same group. These agreements may be required by regulatory authorities, tax authorities or as a matter of best practice. In order to provide protection from legal and tax risks, we can assist you in the preparation of inter-company agreements.
2- Data protection program
A data protection program for personal data and sensitive business information may be required by applicable statutes or regulations, whether in the U.S. or the GDPR, or implemented as a best practice. It is an internal program that forces organization to consider the adequacy of their data and security practices, and it can be a defense against liability in the event of a data security incident. U.S. companies should create and maintain a data protection program as part of their overall data governance strategy. We can provide you with an appropriate Data Protection Program that you can adapt to your needs.
3- Business insurance
Running a business in the United States comes with litigation risk. Axelia Partners will assist you in choosing a comprehensive insurance strategy that adequately protects your business and your people, so that you can operate your subsidiary with peace of mind. Our team will assist you in identifying the right insurance broker for your needs and will guide you through every steps of the implementation process. Standard business insurance coverage in the United States includes:
- GENERAL LIABILITY
General liability can be thought of as the foundation of a company’s insurance coverage. It covers a broad range of risks that a company may face, from a ‘slip and fall’ bodily injury to protecting against advertising risks and product liability claims. As such, a comprehensive general liability (CGL) policy is an essential first component of a company’s insurance coverage.
- PROFESSIONAL LIABILITY/ ERRORS AND OMISSIONS (E&O)
Professional liability is a type of malpractice insurance that protects against more abstract risks not included in a general liability insurance. Professional liability insurance covers negligent acts, errors and omissions in the services the business and its employees provide. As such, it is essential for companies whose primary business is service based.
- DIRECTORS AND OFFICERS
Directors and Officers (D&O) insurance is designed to protect a company’s directors and officers against exposure associated with management actions and decisions. These risks are not typically covered by general or professional liability insurance. A D&O policy is a must for publicly held companies, or businesses with stakeholders, such as venture capital funding. It is also important to consider for privately held companies without external shareholders, so that directors and officers are shielded from creditors, customers, competitors or employees suing them for actual or alleged wrongful acts in managing the company.
- EMPLOYMENT PRACTICES LIABILITY (EPL)
Employment Practices Liability (EPL) insurance provides coverage against claims stemming from employees and former employees’ allegations of discrimination, harassment, retaliation, wrongful termination and improper workplace conduct. No other policies cover these risks. As employment-related claims are becoming some of the most prevalent forms of insurance claims made against companies today, it is prudent for businesses to protect themselves against EPL loss.
Cyber coverage is insurance for liability that arises out of unauthorized use of, or unauthorized access to, electronic data or software within your network or business. The most basic description of the risk would be a data breach. A company that collects, transmits or disseminates sensitive client data (e.g., social security numbers, banking data, medical data, etc.) is responsible for protecting that data. The inherent risks of handling customer data in cyber space have increased exponentially over the last decade, and so has the need for Cyber coverage.
- COMMERCIAL CRIME
Commercial crime insurance provides coverage against losses stemming from business-related crime, such as employee dishonesty (theft, embezzlement), computer and funds transfer fraud (spoofing or phishing), and forgery. It will cover losses suffered by both the insured company and its clients. No other business insurances, including General Liability, EPL or Errors & Omissions, protect business owners against commercial crime. That’s why a commercial crime policy should be considered a vital component of a comprehensive business insurance coverage.
Let Axelia Partners help you protect your company against the known business risks in the US. Contact us.
Disclaimer: The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation.