Summer recap: August 2024 Embroker Newsletter

As we transition from summer to fall, we reflect on a season marked by significant developments in the business world. The past few months have brought forth events that underscore the need for robust risk management strategies and adaptable business practices. From technological disruptions to economic uncertainties and global sporting events, the summer of 2024 has provided valuable lessons that will shape our approach to business and risk in the months ahead.

In this newsletter, we’ll explore three key areas: the implications of Microsoft’s global service disruption, the complex terrain of current economic conditions, and risk management insights from the Paris Olympics. Our goal is to provide you with actionable insights to enhance your organization’s risk management approach. In an era of constant change, staying informed and prepared is key to thriving in the face of challenges.

Let’s get into it.

What’s Going On?

Who’s liable for tech glitches that upend a company’s operations? — Fortune | In this article from John Kell, Embroker VP of Claims, Corrie Hurm, speaks on the effect of CrowdStrike & Microsoft’s relationship on the business community, and what it might mean for the future of vendor relationships and liabilities.

Recession fears understated, but not unfounded — NYT | As the economy grows and seems to move further from a possible recession, business owners and CEOs alike are still cautious of the future. According to the New York Times, however unlikely, these fears are not unfounded.

The role of risk management in the 2024 Summer Olympics — PropertyCasualty360 | While injuries and whatever is floating in the Seine were of big concern during this year’s Summer Olympics, we asked ourselves, what other risks are athletes, coaches, and the city of Paris facing? This article from P&C360 explores just that.

Microsoft’s Global Service Disruption: A Wake-Up Call for Cyber Resilience

In a significant event that underscored the vulnerabilities of our digital infrastructure, Microsoft experienced a severe service disruption that affected users worldwide and resulted in billions of dollars in losses.

Key Points:

• A software update error led to widespread outages across Microsoft’s cloud services.
• Businesses globally faced interruptions in accessing critical data and systems.
• The incident had a measurable impact on the global economy and tech stocks.

Implications for Your Business:

1. This event serves as a reminder of the critical importance of robust backup systems and comprehensive business continuity plans.
2. It highlights the need for diversification in tech infrastructure to mitigate single points of failure.
3. The incident underscores the value of thorough vendor risk assessments, particularly for critical service providers.

Insurance Consideration: In light of this event, we strongly recommend reviewing your cyber insurance policy. Ensure it provides adequate coverage for business interruption due to third-party service failures, as well as potential data loss or corruption scenarios.

Economic Outlook: Navigating Uncertainty

While inflation rates in the U.S. have shown signs of stabilization, businesses continue to express concern about potential economic headwinds.

Current Situation:

• Inflation appears to be moderating, but economic indicators remain mixed.
• The upcoming election cycle is introducing an element of policy uncertainty.
• Global economic factors continue to influence domestic market conditions.

Business Impact:

• Many companies are adopting cautious growth strategies.
• There’s an increased focus on operational efficiency and cost management.
• Businesses are reassessing their risk tolerance and insurance needs.

Risk Management Tip: In times of economic uncertainty, it’s crucial to ensure your business interruption and liability policies are robust and up-to-date. Consider stress-testing your coverage against various economic scenarios to identify potential gaps.

2024 Paris Olympics: A Showcase of Athletic Achievement and Risk Management

The recent Olympic Games in Paris not only celebrated athletic excellence but also highlighted the complex world of event insurance and risk management on a global scale.

Notable Aspects:

• The Olympic torch, a symbol of the games, was insured for a substantial sum.
• Many athletes had specialized insurance coverage for their unique skills and physical attributes.
• The overall event insurance package was one of the largest and most complex in sports history.

Business Insight: While most businesses may not operate on an Olympic scale, the principles of identifying and protecting key assets remain universally applicable. Whether it’s a crucial piece of equipment, intellectual property, or key personnel, proper valuation and protection of these assets is essential.

What’s New from Embroker?

Upcoming Events, Stories, and More

Embroker Introduces Insurance Program for Consultants

Have you heard? We have a new insurance program that’s built exclusively for consultants. Our industry-tailored coverage addresses the specific risks consultants face, including cyber threats, mistakes, and general business exposures.

Ben Jennings Named to Forbes Advisory Panel for Small Business Insurance

We’re thrilled to announce that our CEO, Ben Jennings, has been appointed to the Advisory Board for Small Business Insurance at Forbes Advisor! This appointment is a testament to Ben’s exceptional leadership and expertise in the insurtech industry, and reflects Embroker’s dedication to revolutionizing business insurance through innovative solutions and customer-centric approaches.

Embroker Head of Claims on CrowdStrike, Microsoft, and Insurance Consequences

In the wake of the CrowdStrike/Microsoft outage, Embroker’s Head of Claims, Corrie Hurm, provides valuable insights on potential liabilities and implications for the insurance industry.

Like What You’re Reading? Check out the Embroker Blog for more.