KMRD's Introduction / First Step
A technology firm with no previous losses was looking for an independent look at their coverage and risk management process. As part of their engagement process, KMRD conducted an assessment of a technology firm's insurance contracts. This process identified many coverage areas that could be fixed for no additional cost. This included:
- A $1M gap in their Umbrella Policy with respect to Personal Injury & Advertising Injury (their primary exposure)
- No coverage for Business Interruption at 5 out of their 6 locations.
- Flood coverage for a leased location on the 5th floor of a building on a hill.
- No crime coverage for Computer Fraud and Computer Fund Transfer Fraud.
- No Coverage for privacy related issues such as the release of a customer's confidential information (another primary exposure)
Following our assessment, KMRD was selected as their sole representative in the insurance marketplace. Our negotiation efforts plugged all of these coverage gaps while providing a 21% savings.
What Happened Two Years Later
Two years later the client suffered their first two claims in over 15 years including:
- A computer funds transfer theft involving an infiltration/hacking of their accounting and banking systems using a spam as a diversion/access points. The thieves were able to transfer $98,000 in small increments over a period of 2 days.
- A lawsuit from a client alleging that their IT security measures allowed for their confidential information to leak to the public. The original demand was for over $1,000,000.
The Value 
Prior to KMRD's involvement there would have been no coverage for these claims which ultimately totaled $130,000. KMRD's due diligence, risk assessment, coverage expertise, and quality control processes designed an insurance program that fit the specific needs of this client less expensively. Our process focuses on the exposures and making sure they are addressed through insurance, mitigation measures or both. It is the KMRD difference.
If you would like to be part of another success story, email us at contactus@kmrdpartners.com
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