The Unthinkable Happened To The “Unsinkable” Titanic.
“Sometimes bad things must happen before we sit up and pay attention,” states Glenn Salter, VP Risk Management and Compliance with Delaney Insurance Agency, Inc.
“Fortunately we can insure against these bad things to minimize or even completely neutralize our losses. There’s one caveat though, you must have insurance before the incident happens!
“Since childhood, there’s something buried deep in the subconscious caverns of our mind where we think nothing will happen to us. The mental wrestling match starts because consciously we do know better.
“We see in business that things DO happen such as fire, theft or the more modern activity of cyber crime.
“Staffing agencies are high on the list for hackers because of the important data stored on company servers. You probably have all the specific company and personal information. There are names, addresses, social security numbers, Tax ID numbers and possible banking information for payroll direct deposit.
“All this is lucrative information for hackers to create and use for false identities. There is insurance available to protect the staffing agency and owners.
“Even though the Titanic was considered unsinkable, it was still insured.”
On her maiden voyage from Southampton England to New York the Titanic was carrying 2,224 passengers and crew. At the time she was the largest ship afloat and considered unsinkable until running into an iceberg on April 14th 1912.
Although the shipbuilders Harland and Wolff insist that she was never promoted as unsinkable, the myth continued.
After the Titanic hit the iceberg, White Star Line Vice President P.A.S. Franklin stated" We place absolute confidence in the Titanic. We believe the boat is unsinkable." About the same time he made that statement the Titanic was laying on the ocean floor.
It seems that Harland and Wolff together with White Star Line thought nothing could possibly happen. They were so confident that they didn’t install enough lifeboats on the Titanic to accommodate all the passengers and crew. She was fitted with only enough lifeboats to carry 1,178 people—that’s half of those on board, and one-third her total capacity.
But just like in any business, unexpected "icebergs" do appear. The part of the iceberg that’s visible looks great, but it’s the other 80% below the surface that can cause the most damage, as in the case of the Titanic.
It's not hard to picture passengers on deck admiring the iceberg scenery, oblivious to what is below the surface. Although it did not save lives, the Titanic was insured and fortunately a commercial insurance policy can also protect your business against unexpected corporate "icebergs."
About 25 years ago rumors were being floated that it wasn’t the Titanic that sank but her sister ship the Olympic. As part of an elaborate insurance scam the identities of the ships were supposedly switched because the Olympic had been damaged in a collision.
Many believe that this rumor doesn’t hold water for one simple reason. Fifteen thousand Irish shipbuilders would be asked to conduct the identity switch and then not mention the clandestine project to a living soul not even in the pub.
Lloyd’s of London insured the Titanic and her sister ship, the Olympic, on behalf of the White Star Line as it was considered a prestigious risk. Coverage of the hull alone standing at about 1.5 million around $140 million in today’s money for a premium, back then, of about $10,000.
Despite the high levels of claims the insurers paid out in full within 30 days.
Salter concludes, “Things happen in business and there is insurance coverage to protect you. Consider, for one moment, all the consequences if your computer system being hacked. If employees and placement personnel lost money because cyber crime who would they look to for restitution?”
For quotes or more information, Glenn Salter may be reached at 909-481-7222 or visit http://delaneyins.com/