Money Laundering Laws Get Serious

During the past few years, banks have been making a concerted effort to stop money-laundering activities. Most have developed and implemented specific policies and procedures designed to eliminate these scams. However, a new federal law will require much more.

The USA Patriot Act greatly expands the scope of existing anti-money laundering legislation. The act goes well beyond the banking community to cover all types of financial institutions, including broker/dealers, mutual funds, credit card companies, and even check cashing operators. These companies will all be required to create policies and procedures that will enable them to know their clients better than ever. In addition, they will have to check their client and vendor lists continually against a list of known drug dealers, terrorists, and other criminals.

Business owners who are considering any new affiliations with financial service organizations can expect significantly more in the way of customer verification procedures. Even opening a new checking account will become an administrative burden as financial service firms fine tune their procedures.

This might be a great time to contact one of our financial services representatives and see what the new laws mean for you and your business.

Insure Your Toys

Cell phones that receive e-mail. Laptop computers that rival or replace desktops. Digital cameras the size of a deck of cards. Flat panel monitors that turn the smallest workspace into a home theater. Scanners that fax and printers that copy. Handheld personal digital assistants (Palms and pocket PCs) that double as phones. PowerPoint projectors that fit in a briefcase.

Although dismissed by some as just the latest “toys for grownups,” these sophisticated devices represent an ever increasing business investment that needs insurance protection. These high-tech items are highly portable and at a high risk for loss or damage. You need to make sure that:

• Your inventory is documented and accurate
   
• Clear value is established; and
   
• All potential losses to hardware, software and other data are covered.

As well as property insurance, you also need to consider liability insurance to safeguard you in cases of compromised confidential data emanating from high-tech devices. Call, fax, e-mail, or beam us — we’re here to help.

Adventures in Advertising

Advertising often is crucial to a company’s success. Yet for most firms it’s an incidental activity that’s not part of the firm’s primary business.

All advertising creates risk exposures. In many cases, your commercial general liability (CGL) policy will cover advertiser’s liability. However, you should be aware that advertising liability coverage under the CGL is limited.

For coverage to apply, a party must suffer a business injury as a result of specific actions that occur during the course of a company’s advertising activities. Among the most common activities are:

• Oral or written publication of material that slanders or libels another;
   
• Oral or written publication that violates a person’s right of privacy;
   
• Misappropriation of advertising ideas or style of doing business; and
   
• Infringement of copyright, title, or slogan.

Coverage for these types of risks usually is found under coverage part B of the CGL policy. If you face a potential advertising liability exposure that might fall outside of these areas, you might need specific advertising liability insurance. Give us a call.

Don’t Let Your New Business Get Scammed

Have you recently moved or opened a new office? Beware of fraud and scam artists, who often target new businesses. The scammers hope to profit from the opportunities created by naiveté, optimistic hopes for success, or just the internal confusion accompanying change in locations, organization, and personnel.

If you have a new business, or you’re undergoing changes, stay alert for such tried-and-true scam tactics as:

• Invoices for items never ordered (or delivered);
   
• Phone or fax solicitations for promotional merchandise (it’s all too easy for a new business to overload itself with logo pens, pads, calendars, etc.); or
   
• Offers of “limited time” deals for everything from credit card processing to long-distance phone service.

You plan to be around for the long term. Don’t feel rushed into loading up on short-term “bargains.”

For more information on defending yourself against opportunistic scammers and fraud merchants, check out sites such as the Better Business Bureau (www.bbb.org), FTC (www.ftc.gov), the National Fraud Information Center (www.fraud.org) and www.ScamBusters.org.

ADA for Small Business

Although most businesses are aware of the Americans with Disabilities Act (ADA), some don’t understand how it should be implemented in their companies. The Equal Employment Opportunity Commission (EEOC) can help. A recent EEOC handbook outlines the provisions of the ADA and provides examples, tips, and caveats for small businesses.

The Americans with Disabilities Act: A Primer for Small Business covers:

• Who’s protected by Title I of the ADA;
   
• How to avoid mistakes when interviewing applicants with disabilities;
   
• When employers are permitted to ask employees questions about a medical condition;
   
• What to do if safety issues arise;
   
• Various aspects of reasonable accommodations requirements; and
   
• Tax incentives for businesses that hire and retain people with disabilities.

This book is another major effort linked to President Bush’s “New Freedom Initiative” designed to mainstream people with disabilities into American life.

Boning up on the ADA can help you avoid costly directors and officers liability suits. Get smart on the law — and call us to make sure you have the coverage you need

OSHA Changes Focus on Compliance Help

The Occupational Safety and Health Administration (OSHA) recently announced plans for a major restructuring and realignment. One of the most significant aspects of this reorganization is the creation of an Office of Small Business that will focus on coordinating compliance assistance activities. OSHA’s John Henshaw notes, “This reorganization realigns our resources and functions around proven strategies that will produce the best results in reducing workplace injuries and illnesses.”

This new approach formalizes OSHA’s efforts to expand training, outreach, and education programs, while creating an organization that builds on and expands the knowledge and successes of existing compliance assistance programs. The agency also wants to expand its partnership programs and voluntary efforts.

However, OSHA is quick to point out that these moves to become more business friendly won’t compromise the agency’s commitment to promoting the safest possible workplaces. In fact, it believes it’s strengthening that commitment.

OSHA regulations often appear burdensome to small businesses, but non-compliance can hurt far worse. Learn the requirements and implement solid programs that keep your risk and your premiums low.