WorldWide Drilling Resource

Drilling Into Money Not Boring by Mark E. Battersby Other Loss Protection As every drilling contractor and busi- ness owner is all too well aware, losses come in many shapes and forms. There are losses resulting from natural disas- ters, losses caused by dishonest employ- ees and/or customers, and financial losses from bad business decisions or a poor economy. While insurance pro- vides protection from many losses, some potential losses often exceed the scope of most basic insurance policies carried by many drilling businesses. According to the Small Business Administration, three out of five employ- ers face lawsuits filed by potential, cur- rent, and former employees every year. Admittedly, 75% of claims made by em- ployees are dismissed, but defending against those claims can be quite costly. Few drilling businesses are exempt from claims from disgruntled employees. Regardless of how hard a business tries to be completely fair, “politically correct”, or nondiscriminatory, age and gender gaps all too often lead to miscommuni- cation. A claim involving employment practices can happen to any business. Employment Practices Liability Insurance is a relatively new type of lia- bility protection which covers claims made by a drilling operation’s employ- ees. Designed to protect the business from claims made by employees, busi- ness insurance for employment claims is ideal for today’s litigious world. On another front, everyone in busi- ness today recognizes security threats and risks inherent in living in a digital world. Unfortunately, little thought is given to liability resulting from hacker attacks, viruses, and worms that steal or destroy a drilling business’ data. The typical business insurance poli- cy usually covers only so-called "tangible" assets and electronic data is not con- sidered tangible under the typical policy definition. Cyber liability insurance fills that gap. Fortunately, the new cyber insurance policies are available today. Cyber liability insurance protects a drilling business for liability arising from unauthorized use of, or unauthorized access to, the operation’s electronic data or software. Cyber liability policies also provide coverage for liability claims for spreading a virus or malicious code, com- puter theft, extortion, or any unintentional act, mistake, errors, or omissions made by employees while performing their jobs. The insurance companies so many drilling contractors and businesses depend on for help when those risks become an expensive reality can’t always keep pace with the potential for risks that seem to be developing faster and faster. Recoveries via our tax law are not always smooth, professional assis- tance or, at the very least, the help of an insurance broker may be necessary. Mark Mark E. Battersby may be contacted via e-mail at admin@ worldwidedrillingresource.com Perforando en Dinero No es Aburrido por Mark E. Battersby Otra Pérdida de Protección Como cada contratista de perfora- ción y propietario de empresa sabe que las pérdidas vienen en muchas formas. Hay pérdidas que resultan de desastres naturales, pérdidas causadas por em- pleados y/o clientes deshonestos, y pérdidas financieras por malas deci- siones de negocios o una economía pobre. Mientras los seguros ofrecen pro- tección contra muchas pérdidas, algunas pérdidas seguido exceden el alcance de la mayoría de las pólizas de seguro básicas de muchas empresas de per- foración. Según laAdministración de Pequeños Negocios, tres de cada cinco emplea- dores enfrentan demandas presentadas por potenciales, actuales y antiguos empleados cada año. Es cierto que el 75% de las demandas realizadas por los empleados son cumplidas, pero la defensa contra esas afirmaciones puede ser bastante costosa. Pocas empresas de perforación están exentas de reclamaciones de em- pleados insatisfechos. A pesar de que la empresas se esfuerce para tratar de ser justa, "políticamente correcta", o no discriminatoria, las diferencias de edad y de género muy seguido llevan a malos entendidos. Un reclamo que involucre prácticas de empleo le puede pasar a cualquier negocio. Seguro de Responsabilidad de Prácticas de Empleo es un tipo protec- ción de responsabilidad relativamente nueva que cubre reclamos realizados por empleados de una operación de perforación. Diseñado para proteger a negocios de los reclamos realizados por empleados, un seguro de empresas para demandas de empleo es ideal para el mundo litigioso de hoy. En otro frente, todos en negocios hoy reconocen las amenazas y riesgos de seguridad que trae el vivir en un mundo digital. Por desgracia, se le presta poca atención a la responsabilidad deri- vada de ataques de piratas informáticos, y virus que roban o destruyen datos de un negocio de perforación. La póliza típica de seguro de nego- Hector Leos Translator 63 WorldWide Drilling Resource ® OCTOBER 2014 +0 .5 .&((&*$ -1&,)"*0 ' 3 ** 0.""0 (5,% *0 ##& " ("/ 7 " %*& ( 1,,+.0 7 4 7 ) &( .+0 .5!.&((&*$"-1&,)"*0 $) &( +) 10%+.&6"! *!2&' &/0.& 10+. ".2&*$ 0%" .+1*!3 0". *!1/0.5 Battersby trans. cont’d on page 64.