Intellectual Property Insurance

Power (back) to the people?

Posted by 4 May, 2016 (0) Comment

 

 

Have the EU given data Power (back) to the people?

 

This blog is about data protection, how the laws are used against us and how the new broom will try and take miscreants to the cleaners .

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Data protection

 

It has always miffed me when the data protection act was used against me, especially when I know it was designed for me…to actually protect me. And you of course. I’m referring to the times when, with no malice in mind, I have been refused access to bank accounts, utility bill payments and more with the comment “It’s against our data protection policy to” help you.

I know that some of the people that have told me this were on a work avoidance programme (known as WAP when I worked in corporate’s). Their colleagues confessed in the bar. I now know privacy “defence” is used against us when it suits the data controller.

Thanks to this video showing how defences fold when a little “social engineering”, also known as lying, is used to break an individual’s defence down. The video shows how hackers (in 30 seconds) get access to personal or private information with a little trickery involving children of all things. Thank God the children aren’t real. It left me wondering why I can’t access my information when others can.

 

Plan of the insurers

 

Perhaps this is why European legislation fines companies 4% of turnover (not profits) following avoidable breaches. Even more interesting are the requirements to notify interested parties of a breach within 4 days of it happening. Since the old act was introduced, times have moved on and technology has increased the speed of such change. Surprisingly enough, insurers do have a plan. Not the Insurer’s you’ve heard off.

There are a new breed offering services as well as covering fines, legal costs and clean up costs. Having said that, very few of our data breach enquiries end up with insurance policies being required. It’s usually education that reduces risk. If you think that’s what you need get in touch to get a free trial (it’s on us). Because I have no doubt that we will adopt the EU data act, sooner or later. If we are not in Europe there will be greater scrutiny in weaknesses in the offerings of UK Plc.

It will become a business imperative to have the highest threshold of data security in the World. If the Panama Papers haven’t made people think carefully about what they have that’s important, private or confidential, nothing else will. Once the high risk data has been secured in your version of fort knox, you can then secure the next level of lower risk data and so on.

 

What now?

 

So you may well start preparing now. Or you could wait for the authorities to point the finger and aim their inspectors at someone else. These issues are extremely rare. The new breed of data inspectors will be targeted to find breaches so they can fine people. Now that the £35 per year Data Protection Register annual charge is being scrapped, the DPA will only get paid if they manage to raise funds through fines.

Data breaches will be a lot easier to spot than health & safety breaches so anticipate people with an axe to grind to start blowing the whistle. I also anticipate the forces that drove the compensation culture (whiplash anyone) will be a problem for those that don’t meet the regulations. I have no doubt that Data Protection inspectors will offer low paid workers (like cleaners) fees for “introducing them” to parties that have weak security. It will cost them nothing, they have a degree of protection from being disciplined when the whistle is blown, if it is for the “greater good”. If it were a Panama Papers employee that went rogue, I doubt they would suffer a severe penalty.

Wrap up; The people that were behind whiplash claims being made fraudulently or exaggerated have moved on. At the moment there are chasing ambulances (an American term) straight into the A&E departments. This because it is easier to exaggerate or commence a fraudulent injury claim when there is no car involved. It’s only a matter of time before they move sideways into data.

Top tip; As for the referendum, have a plan for staying and another for going. Keep both simple.

Categories : Accountants Insurance,All Risks Insurance,Business Insurance,Company Insurance,Contractors Insurance,Customer Service,General Requirements,Health & Safety,Intellectual Property Insurance,Solicitors indemnity,Uncategorized Tags :

Contracts, Consultants and indemnity‏

Posted by 11 January, 2016 (0) Comment

Jason really was amazing, he managed to find insurance cover for me as a consultant valuation surveyor when no one else could. He  kept me informed of progress continually. I  would thoroughly  recommend him.”

                                –  Robin Smith, FRICS

Getting your contracts in order

 

Robin called me saying “I need urgent assistance”. I’ve won a contract yet they’re asking me for insurance and nobody can provide me with what’s needed. This is something we deal with every week because a lot of insurance providers have placed their products on the Internet and don’t have the facilities to give advice as to what fits.

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The contract wasn’t complicated or onerous yet it was specific. The type of work to be carried out was slightly unusual yet the problem wasn’t the work it was the availability of cover. Robin also had a deadline to meet and so the frustration in finding red herrings all over the Internet was understandable. There were many providers that said they could offer the cover Robin needed but as soon as he scratched the surface they turned and ran in the opposite direction.

 

Insurance and contracts are usually at odds

 

Another challenge for Robin was that the contracts told him the terms and conditions of undertaking the project yet the insurance available has to be compare to the contract to ensure they dovetail. There are clauses in contracts that relate to insurance and there are clauses in insurance policies that relate to contracts.

Most insurances available via the Internet are no good when compared to contracts. The fact that so many insurance providers allow people to buy insurance without speaking to anyone is brilliant. Especially when you need something in a hurry. It’s not so brilliant when you need to speak to somebody and find that the Internet and, in particular the website that you found it on, doesn’t take your calls.

 

Whatever next?

 

Sometimes those awarding the contract start reading the insurance themselves and asking questions. Being cynical, they often ask these questions when they are due to pay an invoice. I’m not saying that they use this as a tactic to delay payment yet, if the insurance doesn’t meet the requirements, they will delay payment.

This happens most often when small businesses are working with a large company with an in-house legal team. They accept the insurance documents and only start checking the details when they are due to pay. This is so common we make sure that the insurance stacks up before it’s issued rather than suffer the pain of the late payment at a later date.


Wrap up
; Temptation to accept a contract with a large company is great. The offer may seem fantastic yet their requirements can offer the water down the profitability.

Top tip; Make sure you check the cost of the insurance before you negotiate your fees or payment terms. You might need insurance for a contract yet you don’t want to end up with zero profit.

Categories : All Risks Insurance,Business Insurance,Company Insurance,Contractors Insurance,Design Insurance,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Patent Insurance,Trade,Trademark Insurance,Uncategorized Tags : , , , , , , ,

No-one will sue me or blame me

Posted by 27 December, 2014 (0) Comment

Business is easier to do when people are getting on yet it pays to keep everyone happy when relationships start to falter. This article is about money, the fact that it talks when opinions differ and why it is a foreign language for some.

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I’ve had an idea…..but I can’t do it on my own

 

Inventors are not just stuck in sheds. Some of them are hugely creative and have big idea after big idea. I am contacted by inventors when they want to protect an idea they’ve created. Most of them are in “start-up” mode and it takes time for the income to pour in.

However, they still need services to help them lift off and it is not uncommon to reach bartering agreements or agree profit or equity shares with those that help them out. Wonderful isn’t it? In an ideal World, yes, in the real World it depends. Recently, I’ve been contacted by two different companies who both had similar issues with such agreements . They were both being taken to court when such “contracts” had gone sour, they were very loose unwritten agreements.

We can’t agree about everything

 

But it pays to sit down and agree the basics. The first indication that something was going wrong was the receipt of a legal document outlining a case of a service provided that hadn’t been paid for. In each case the inventor thought they had “come to an agreement” yet the complainant asserted that nothing had been written down and they expected a prompt realisation of profits, which is rare. Both inventors were upset as well as being annoyed. One was being asked for £40,000 in fees for work they had “ordered”. The other was being invoiced for £18,000 fees for time spent “assisting” the start-uo.

Even after the first legal notice was issued, the inventor contacted the person that was “owed” the £40,000 and came to another agreement. They were somewhat surprised to learn, soon after, that the complainant had obtained a judgement against them and bailiffs were chasing them for money they didn’t have. Sometimes, the courts do odd things. Launching an appeal has proved fruitless for at lease one company facing a wind up order. Their business was closed down by a judge before the appeal date arrived. It is beyond belief.

You owe me, I sue you

 

Eventually, the money was found yet it had been earmarked for marketing so the launch had to be delayed in one case. The debts were paid when they may not have been legally liable to pay them. They were forced to settle because they didn’t have the resources to defend themselves.

Defending yourself doesn’t have to be ridiculously costly but it does take up time. High quality legal resources have to be paid for. It’s not only about what you sign, it’s about what you agree.  Verbal agreements are often considered binding by one party and failure to defend a corner means louder voices are likely to be heard. The balance between defending and paying up doesn’t always leave defendants between a rock and a hard place. I have plenty of clients who have successfully defended  spurious allegations.

Wrap up; Contracts aren’t always big documents and verbal agreements are often taken seriously. It’s really difficult to juggle all the tasks when unexpected legal issues arise. Not to mention the upset if you don’t know where to turn.

Top tip; Do not ignore issues that are on the “too difficult list”. They have a habit of resurfacing  and investor shareholders hate that too. It is not fair but the deepest pockets usually win.

Categories : After The Event,Business Insurance,Company Insurance,Design Insurance,Domian name protection,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Patent Insurance,Trade Secret Protection,Trademark Insurance Tags : , , , , , , , , , , , , , , , ,

Serviced Offices- The Possibility of Data Pilferage

Posted by 30 August, 2014 (0) Comment

An interesting thought on the the possibility of data pilferage and how easy it may be for someone who services your office.

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So how many of us think our serviced offices are secure?

 

Work finishes, you tidy up and go home. Thousands, perhaps millions of us do this every day. Next day, you have a clean place to work. Magic!

But what happens in between. The magic is not automatic. People do arrive and clean. But how do they get in?

Keys of course, the same keys as you use to lock the door behind you and open it in front of you. Oh no, you might say, we don’t pay for the cleaners…..we do it ourselves. The cleaners might not know that.

Not a problem for most yet when the IT is down or the phone bill is up, people start asking questions

A massive phone bill will be noticed. The issue is the unnoticed. Data pilferage is on the increase. Cleaning companies don’t pay their staff a living wage so they’re susceptible to offers of bribes or worse. Imagine that, the lowest paid workers in the entire EU and they’re wondering around our offices unaided.

Of course the massive company that you pay for cleaning recruit the best. They’re recruitment process is second to none. That’s why they “lost” security guards just before the Olympics. Because they are so well organised. Fail.

Check your insurance!

 

If you are looking for insurance on a serviced office, check that the security requirements don’t mean your doors have to be locked before they pay for a break in. Or keep the cleaners out by sticking a hotel style “not today thank you” sign on your door.

Wrap up: Those offering you office space will tell you what they want you to hear in order to select their space so ensure you dig deeper to find out about the insurance history of the premises.

Top tip: The locks on offices ain’t London are woefully inadequate when compared to the locks insurance companies require. If it needs to be replaced, get the landlord to replace it before you sign on the dotted line. Use it as a bargaining chip.

Categories : After The Event,All Risks Insurance,Business Insurance,Company Insurance,Design Insurance,Domian name protection,General Requirements,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Patent Insurance,Solicitors insurance,Trade Secret Protection,Trademark Insurance Tags : , , , , , , , , , ,

Efficient insurance isn’t always friendly

Posted by 23 June, 2014 (0) Comment

This article is about how improvements in technology should help providers improve the service to their clientèle. Read on to find out how IT has made life easier, where it has failed, and the backlash that is “in the post”.

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Treating customers fairly?

 

Recently I have been learning how to use a new IT system which will increase our efficiency and profit. The people showing us how to use the system are terribly nice and say some nice things, yet also some very surprising things. One that really did surprise me relates to the way the system allows us to meet all the compliance regulations that are bestowed upon us, by the FCA (Financial Conduct Authority) I was pleased to find that the system made our life easier when ticking the compliance boxes.

It was during a discussion about “treating customers fairly” (TCF) that I was so surprised. TCF involves doing what it says on the tin – making sure that the customer is at the centre of what you do. This ensures that they are well treated and their aims are met whilst your business meets its aims too. For me, this is the most valuable thing you can do in a business, because customers are always right and when they are wrong, its usually because they have not been well informed. This is a statement that most business owners don’t want to hear, yet when they are the customer they realise that it’s actually true.

What’s the surprise?

 

The comment that surprised me so much was after I complimented the trainers on showing us how to add efficiency into our compliant processes. Our training lady announced that no one usually cares about this, to which I exclaimed “pardon!” because I couldn’t believe that a sector so beaten and bowed by criticism still fails to take its customers’ rights seriously. I enquired what the lady meant by “no one usually cares” and she reiterated that all the other people she trains (all is probably an overstatement) find ways to avoid ticking the compliance box of TCF. I am not surprised that this happens, but I am surprised that it is an industry wide problem. However, it does explain one scenario that has puzzled me somewhat.

Why is it important?

 

When I first went “alone” I carried out research and found that a healthy percentage of people that had purchased insurance were not sure that it was right for them. This meant there were people who would find our service useful. This gave us immense confidence as we ploughed our furrow and provided a service that isn’t available to all. It still isn’t available to all, because we could not possible service the entire commercial insurance buying public, not by ourselves. But watch this space. We have no immediate plans to dominate the UK, yet what I have discovered over the last few years has shown us that the vast majority of people who buy insurance are not treated fairly. There is work for us to do in changing that. It is a challenge, but one I am ready for.

Wrap Up: Not all insurance policies are the same. Not insurance companies are the same. Not all businesses are the same. So ensure you get what you need, before you need it.

Top Tip: If ever you do have a problem with insurance ask your supplier how they are treating you fairly, whilst dealing with the problem.

 

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Flatterers deceive UK start-ups

Posted by 19 April, 2014 (0) Comment

A spectacularly large US company flattered a UK start-up with a huge contract which was eventually signed and secured. This would give them the capital they need to multiply their success. The contract wasn’t exclusive and the start ups web application was valuable to many similar companies. A fantastic “result” and only two types of insurance were required by the US company.

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Contractual responsibility

 

The contract issued by the Americanclient had 2 pages making direct reference to the type of due diligence, risk management and business insurance required of the start-up. The rest of the contract revealed 26 further liabilities and requirements that were, or would become, necessary.

Not all were manageable for a small company with limited cash flow. The really fine points of the contract referenced this exact point and made it clear they would take full and furious legal action if something went wrong. Ouch, a soft landing is required so we received an introduction.

Part of the liability related to the website, which was provided as a service, and had to be operational 99.9% of the time. The US company staff would be trained to use it and then supported 24/7. It had to work and the contract made it clear that they would want compensation for any downtime over 0.01% in any one year. Keep in mind that one way to compensate is not charge fees that are due.

Penetration testing must be the answer

 

It helps work out weaknesses today yet doesn’t account for advances made by hackers tomorrow. IT Systems security methods of suppliers aren’t always reliable and data theft was the main concern of the US client. They made the UK startup contractually liable for the costs of notification to the relevant authorities and those whose personal data is compromised.

This is a really tough figure to try and quantify because few own up when they have a data breach so the statistics cannot be compiled. Contrast that with fires where it is easier to quantify losses.

That won’t change just because it becomes a must to do (new regulations are due to land in the EU in 2015). So if some Herbert got at the data, the US company would have to spend to meet US regulations and the UK start-up could be ruined by the losses. Identity theft costs vary from person to person so it really is a difficult number to calculate.

Legal liabilities change across borders or state lines

 

The chances of a breach are minuscule, the costs ridiculous. The damage to brand immeasurable. Get a lawyer to get legal on your contracts and they’ll close the gaps. Some clauses don’t hold water in the UK yet US companies issue proceedings where they want. The contract formed a vicious circle when the statement of work and suppliers agreement were reviewed together. No stone had been left unturned and the US company had a fair minded legal team. That is not always the case.

However, there was a liability of millions and the supplier of the application’s infrastructure were only going to cough up £182k if they failed to maintain their supply. Worse still, the infrastructure wasn’t easy to transfer to a new supplier and a 30 day window tied the start-up down. No fix in 30 days and the US contract terminated automatically. And further contracts would not have been issued by them or anyone else.

We deal with cyber risk every weekly basis. It rarely touches the smaller business, yet their suppliers are at risk. Cloud sounds great yet it is not as solid as your own database with your own security. The solutions are a contractual nightmare.

Wrap up: It is not unheard of for a large company to issue a contract to a start-up, allege an error and drown them in legal proceedings. This is because they can then strike a deal which leaves the start-up Directors free of debt if they give up their Intellectual Property. Only in America? No! Uk companies do this too. Does Directors protection work in these cases? No! See why here: http://www.cobinecarmelson.com/wp-content/uploads/2011/11/What-are-Directors-real-risks.-CCLv5-URL.pdf

Top tip: One digital games company signed an NDA and found the other signatory copied their ideas and started selling their titles. It cost £300,000 to force them to stop and compensate the original designer. There is no point getting someone to sign an NDA unless you have the means to enforce it !

Categories : Accountants Insurance,All Risks Insurance,Business Insurance,Company Insurance,Design Insurance,Domian name protection,General Requirements,Intellectual Property Insurance,Legal expenses insurance,Liability Insurance,Litigation expenses insurance,Patent Insurance,Solicitors indemnity,Solicitors insurance,Trade,Trade Secret Protection,Trademark Insurance Tags : , , , , , , , , , ,