No. You can seek insurance for pretty much anything unless there is some form of illegality involved. But the question is whether anyone will be willing to insure it and the scale of premium. Ultimately, as buyer, you will bear the cost of that risk transfer in the price you pay.
Bear in mind that commercial insurance can be first party (premises, property) or third party. Assuming you mean third party the exclusions tend to fall into various categories:
1. So-called peak risks such as:
- nuclear risks
2. Own actions such as:
- deliberate and/or fraudulent acts (e.g. own fraud, libel)
- pure contractual liability
- IP infringements
3. Other covers that are usually bought separately (e.g. Key Man, Workers Comp, D&O liability).
For first party covers you would tend to find a limited inclusion for Business Interruption and Contingent Business Interruption - here you should read the wording very carefully.
• Victorian State Government
Contact Andrew Jacopino IACCM member
I would be curious to know this as well. My main question would be around how to measure the outcome.
• University of Tennessee
The University of Tennessee has done significant research in this areas and has online courses, white papers and books on the topic. The result of their research is known as the "Vested" methodology/business model and it has been successfully put into practice by over 50 organizations in over 80 deals. You can find several case studies on UT's dedicated website on the topic at www.vestedway.com
Let me know if you have any questions...you can ping me on Linkedin and we can chat if you have questions.
(lead researcher and faculty for UT's Vested work)
• Avon Cosmetics Ltd
Thank you Paul Kruspe and Kate Vitasek, I will follow up on your recommendations.
When contracting goods that need to be specifically designed/developed for customers, we usually have Statements of Work in place where you describe the content and the milestones you want to contract. The better the outcome is described the easier the supplier will find the bidding.
I would be careful how risk transfer is handled and how a potential change can be managed, i.e. you need a change management process and clause.
• World Commerce & Contracting
With regard to technology, Docusign and others have fairly secure systems in place to ensure the integrity of e-signature contracts. Some organisations, however, still try to arrange in person signings where possible. In these circumstances, though, you will need to ensure that all signed contracts are stored safely and in a searchable repository as finding signed contracts remains a perennial problem for many who do not have comprehensive document repositories deployed.
With regard to your second question, many organisations have their legal functions handle the contract signature process. The larger the organisation, however, the more impractical such a set up can often be, as there are just not enough resources. Many organisations still have the sales function handling the signature process. There should be strict guidelines and processes in place to help ensure integrity and to prevent mistakes such as wrong versions being signed etc.