Bribery & Corruption Risks

Fifty percent of respondents in a corporate study expect that vulnerability to bribery and corruption will increase in the foreseeable future. Does your nonprofit risk management plan include a policy to ensure anti-bribery compliance?
It is a common misconception that the U.S. Foreign Corrupt Practices Act (FCPA) does not apply to nonprofits, especially if they are conducting their business on home soil. Despite the reference to “foreign” in the Act, anti-bribery compliance applies to all nonprofit agencies under FCPA, as well as several other acts that work against corruption in agencies.

Source: Boians Cho Joo Young via

The best way to mitigate possible losses due to bribery or corruption is to educate all members of your nonprofit of the dangers of improper payments to raise funds, to institute a clearly defined policy against such practices and to have proper insurance coverage in the event a lawsuit or if charges are filed against your nonprofit agency. Since the financial downturn of 2008, the government has increased its diligence in monitoring business transactions, and more cases than ever are being filed against corporations, businesses and nonprofits.

Since most cases of bribery or corruption include dealings with a third party, it is highly recommended that due diligence be performed on any third party your agency may do business with. It is worth noting that all of the recent cases of enforcement in the U.S. have involved third parties, and the government places the onus on the agency conducting transactions to thoroughly research anyone they are going to work with to profit their business or organization.

Despite the philanthropic intent behind your nonprofit organization, exposure to bribery or corruption is possible, especially when dealing with foreign markets. Your best advantage is to educate your staff and develop a policy that is reviewed often by board members, so your agency is not exposed to a potential act of enforcement.

Lamb Financial Group’s risk management services for nonprofits and social services organizations can help protect your agency from potential risks and provide the insurance coverage you need to protect your organization. Call us at 866-481-5262, or contact us to learn more.

Cyber Liability Insurance: Do You Need it?

You protect your physical property, so why wouldn’t you want to protect your virtual property too? Your virtual property could contain confidential, financial, or personal identification information. Imagine if this type of information found itself in the wrong hands, and you were to blame? With the web working as the epicenter of business administration and activity, Cyber Liability Insurance is a necessity for today’s business owners.

The Computer Security Institute reported that 2 in 5 companies experienced a significant cyber attack in a recent 12-month period. This past summer, in fact, was considered the “Summer of Hackers,” as a recent Forbes article noted. And the U.S. Secret Service and Verizon Communications, Inc. identified that 72 percent of all data breaches occurred in small-to-medium sized businesses.

One would think that with these recent trends, business owners would be running to buy Cyber Liability Insurance the first chance they could. But, actually, this is not the case at all. According to the Chubb 2012 Public Company Risk Survey, only 35 percent of companies invest in Cyber Liability Insurance.

So why are so many companies avoiding Cyber Liability Insurance in their company safety plans and Liability Insurance policies? The recent Forbes article reveals that most business executives do not know enough about this type of insurance and are also hesitant because of the high premium costs. For example, many don’t realize that just as you can qualify for “good driver” discounts, your business can potentially obtain Cyber Liability Insurance for less by putting cyber security policies and practices in place.

Here are some of the steps your business can take to boost cyber security on its own before going to an insurance company:

  • Hide Wi-Fi networks and protect them with encrypted passwords that are changed regularly.
  • Ensure that firewalls, anti-virus/anti-spam software and other security programs are updated regularly.
  • Make sure all company mobile devices that have the potential to be lost or stolen are password-protected.
  • Create employee user accounts for accessing data; require that employees use strong, unique passwords that must be changed regularly.
  • Allow only designated individuals to download and install software on company computers and devices and ensure that downloads are coming from safe and secure sources.

For additional help on best cyber safety practices, see the Federal Communications Commission’s 10 Cybersecurity Tips.

Once your business has implemented its own cyber safeguards, start shopping for the right Cyber Liability Insurance for your company. Cyber Insurance, for example, can be purchased to cover third/first party liability, privacy, media/content, regulatory actions, business interruption, extortion/threat expenses, and more.

lamb financial group cyber insurance new york

Photo via Stuart Miles /

When it Comes to Health & Safety, Sweat the Small Stuff!

Lauren Kornutick, a Sr. Claims and Loss Control Representative at Lamb Financial Group, recently offered up some valuable advice for employers on ensuring safety and health in the workplace:

“Be mindful of the small stuff!”

Here’s a perfect example of why you do need to sweat the small stuff when it comes to ensuring a healthy and safe working environment:

Lauren was on a site conducting a health and safety inspection, and everything appeared to be in compliance. But it would only appear that way to the untrained eye! Lauren quickly noticed that the inspection tags on the fire extinguishers – which are often hidden on the back of the extinguishers – were not up to date.

Do you know the last time the dates were checked on all of the extinguishers in your company’s building? The International Association of Certified Home Inspectors (InterNACHI) confirms that extinguishers do expire! As explained by InterNachi, here are a few common reasons why extinguishers expire.

“. . . over time, the seal on the neck will weaken and allow compressed gas to escape. Extinguishers that have lost much of their pressure will not operate . . . ‘ABC’ class extinguishers (ammonium phosphate) have the tendency to fail due to solidification of the chemical in the canister base.”


company safety plan tips

Ensuring that all the extinguishers in your company’s building are up to date and in proper working condition is just one example of what could be considered “the small stuff.” Here are a few other details that OSHA notes are often overlooked. .

  • Piles of equipment or supplies that could be dangerous if disrupted.
  • Poor lighting that could result in incidents or accidents on steps, walkways, etc.
  • Extension cords, piping, and any other object that could be a tripping hazard.
  • Loose guard rails, handrails, or windows.
  • Any objects that could potentially block aisles, escape paths, fire extinguishers, etc.

The list goes on and on! You can never be too careful when it comes to ensuring that your staff and employees are safe and that you are protected as well.

If you have questions or concerns regarding the safety and health programs at your business, contact Lamb Financial Group in New York or Pennsylvania at 1.866.481.5262. 



Photo via Suvijakra/