International business travelers too often find security in the assumption that their existing health insurance—or even their employer—would cover a medical emergency abroad. Many travelers, however, have never given it a thought.

But anyone in a foreign land for any reason could find themselves in a dire predicament should immediate healthcare be required. Medical facilities outside the United States often do not accept insurance reimbursements from U.S. policies.

In fact, some medical policies won't pay for foreign treatment at all. So travelers who suddenly become patients are frequently required to pay cash up front for treatment—another condition most U.S. health policies often deny.

Many small and developing nations also cannot provide the level of healthcare Americans have come to expect. When they can, better facilities are few and far between. Safely transporting an immobile patient long distances can cost a small fortune.

A few years ago, a client of mine found himself in Greece suffering a severe heart attack. It was decided that treatment would best be provided in London. But just making the decision to move required an expensive Greek translator, who was not readily available.

Once that decision was made, my client was flown by air ambulance to London with his wife at a cost of more than $25,000. Had he been traveling with young children, the costs and logistics would have increased exponentially.

"Fortunately, he was president of a large company and had the resources to make necessary arrangements, but the coordination alone can create an enormous hardship for anyone facing an emergency," said Rich Yarborough, Vice President and international business expert with Hylant Group.

"People usually don't consider all of these issues when they plan a trip," he said. "There is a host of problems that can occur, even with a minor medical issue. But when they happen and you're not prepared, it's too late."

Many companies offer their employees "travel assist" coverage, but those policies only scratch the surface of real-life needs. Major medical underwriters such as ACE and Chubb now offer supplemental travel protection programs that provide full concierge service to accommodate most medical and logistical problems.

In the case of my client in Greece, all the travel, costs and logistical resources would have been covered by a supplemental travel program. Had there been young children along for the trip, the coverage also would have provided a guardian and travel accommodations for them, depending on need. Daycares and nannies are even available.

The heart attack struck him several years ago, when these kinds of programs were largely unknown. It was also long enough ago that some of his coverage was handled by his existing health policy.

Today, however, as the health insurance industry pursues continuous cost cuts, most of those provisions have likely been removed. The reality behind most assumptions concerning healthcare coverage abroad has diminished substantially.

Travel programs can be purchased by individuals or by entire companies and organizations for their employees and associates. Colleges and universities also find these programs advantageous with faculty and staff traveling internationally.

Exchange students and temporary residents need to understand their existing policies well to learn what additional needs exist. If you are unsure of what your current healthcare or travel policies include, ask the following questions:

• Does my company medical plan cover me abroad?
• Are there facilities near my destination that can provide proper care?
• How do I get home if needed?
• What about language barriers?
• Do I need to pay medical costs up front?
• How will my children be taken care of when I'm in the hospital or traveling as a patient?

For more information contact Bob Crisan at robert.crisan@hylant.com or 734-662-1629.

More than half the companies in the United States last year reported unauthorized computer use, according to a survey by the Computer Security Institute. Sixty percent reported Web site incidents and attacks, the survey noted, placing the average annual cost per incident at $150,000. Many cases spiked well into the millions.

Cyber issues run a gamut of scenarios, such as viruses, laptop theft, insider abuse, unauthorized access, information and identity theft, and even financial and telecom fraud. Newly significant exposures now include data privacy, network security, content, media and intellectual property issues.

These can cause major business interruptions. They increase operating expenses and third-party legal liability—not to mention a public relations meltdown akin to the headline grabbers of late last year.

The reality is that no organization is immune. Viruses and hackers, disgruntled employees or even unintentional programming errors will affect every organization at some point in time.

Because of this, businesses now spend more than $500 annually per employee on computer security and safeguards. And despite the growing expense, relatively little attention is paid to Internet and cyber liability insurance that could potentially save millions.

Recent state and federal legislation further protecting information privacy has made cyber insurance increasingly more important. Several states have enacted laws that hold companies and their officers liable for failing to take appropriate precautions to protect confidential employee and customer information.

Adding to the risk, hackers and other counter technology sources advance so rapidly that it’s nearly impossible to continuously keep a step ahead. Fueling the issue, federal statues, such as HIPAA and the Gramm-Leach-Bliley Act, carry fines in excess of $250,000 and the potential for prison.

Corporate board members run the risk of defending allegations of failed fiduciary duties by allowing violations or simply not properly protecting their organization from cyber-related harm, despite a variety of accepted security measures firmly in place.

Traditional insurance programs, including coverage under property and crime, protect organizations from tangible property loss from physical peril, such as fire, flood and theft.

Similarly, coverage under traditional liability policies and most professional liability policies were not written to address issues of cyber errors and omissions or intellectual property infringement.

Cyber liability insurance is specifically designed to fill the gaps in traditional coverages and can be customized to work in tandem with existing policies.

Because the possibilities are endless, each company should undergo a full risk assessment to understand weaknesses within their organization and within existing policies.

Cyber coverage can provide critical protection for:
• privacy violations
• intellectual property infringement
• security breaches
• Internet
• network programming errors and omissions
• business interruption, including revenue loss and added expense
• destruction, disclosure and theft of electronic data

For more information, contact Jim Lash, Hylant Group Executive Risk practice leader, who can analyze your existing coverages and review your operations to determine if this coverage makes sense for your organization.

jim.lash@hylant.com
513-354-1611

Patrick McDaniel has joined Hylant Group as a Vice President in the firm's Ann Arbor, Mich., office. McDaniel will be an integral part of the firm's Executive Risk Practice, which specializes in directors' and officers' liability, fiduciary, fidelity, kidnap and ransom, employment practices liability, professional liability and technology and cyber-related risks. In his new role, McDaniel will be responsible for advising existing clients and potential clients on the emerging risks of corporate governance.

According to Hylant Group's Chairman and CEO Patrick Hylant, "The addition of Patrick to our Executive Risk Practice is very significant for our clients. He is a proven leader in the Executive Risk field and will be an asset to Hylant as we continue to grow in this ever-changing segment of our business."

Prior to joining Hylant, McDaniel served as team leader for the Baltimore office of Marsh USA's FINPRO division. He led the operation, managed the advisory team and was named to the executive leadership team. He also served as Vice President in Marsh’s Louisville, Ky., office where he was a member of the Midwest Region FINPRO Professional Development Committee.

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Doug Miller has been named Vice President in Hylant Group's Ann Arbor, Mich., office. Miller has almost 20 years of experience in the Executive Risk field serving Fortune 500, middle market, public, private, and non-profit companies with their management liability needs.

"We are confident that Doug's expertise in the specialized area of management liability and corporate governance will be significant to our clients," stated Patrick Hylant, Hylant Group's Chairman and CEO. "Doug is a talented and well-known leader in the Executive Risk marketplace and brings invaluable experience to Hylant and our Executive Risk Practice. We're fortunate to have him on our team."

Prior to joining Hylant, Miller served as the Marsh FINPRO Practice Leader for Michigan. He was also the Executive Protection Department Manager for Chubb Group of Insurance Companies in Milwaukee, Wis. In that role, he was responsible for underwriting management of all of the company's management liability lines of coverage.

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