With organizations in all industries making strides to combat vendor and third party risks, according to a 2017 study by Protiviti, it’s important to understand vendor management at the basic level. Vendor management plays a key factor in many businesses, often being a supplier of goods or services. In the modern age of technology, it’s imperative to know what risks come with vendor management. World Wide Specialty Programs offers vendor management insurance for businesses who need it, and we’ll start with a look at the biggest risk factors to be aware of.
Why Vendor Management Matters
Vendor management is a straightforward concept describing the relationship between the business and the third party who supplies their goods to them, according to Smartsheet. Just like with anything else with your business, it’s good to have your products covered in the event of something happening to them. World Wide has extensive knowledge in commercial liability insurance that can help you prepare for any future situations with vendor management, and we would be happy to discuss with you in further detail.
Some Risks Factors of Vendor Management
Just like with an employee, there are risks when dealing with a vendor or third party, and vendor management insurance can help with all of them. Here’s a list of some of the most prominent risks:
- Financial – You can take a hit if something goes wrong. Make sure your assets are covered before, during, and after your contract ends with the vendor.
- Reputational – This is big in the age of technology, and it’s important to protect your reputation. It’s always good to make sure that your livelihood can’t be damaged by outside sources.
- Compliance – There are compliance regulations that have to be followed. Make sure you are covered just in case there is a breach of contract.
- Legal – Just like with compliance, there are legal regulations to be followed. It’s good to have coverage just in case the vendor or third party makes a breach of contract.
- Data security – This is something that’s recent, especially with the growing use of the internet. Cyber security is imperative, make sure your business is protected from things like fraud and cyber crime.
- Loss of intellectual property – Be prepared just in case a vendor tries to steal your information and pass it off as their own.
These are some risks affiliated with vendor management that one should always keep in mind. If you’re worried about the integrity of your business, contact World Wide today and find out what vendor management insurance policies are just right for you.
About World Wide Specialty Programs
For the last 50 years, World Wide Specialty Programs has dedicated itself to providing the optimal products and solutions for the staffing industry. As the only insurance firm to be an ASA commercial liability partner, we are committed to that partnership and committed to using our knowledge of the industry to provide staffing firms with the best possible coverage. For more information about Staffing Professional Liability Insurance or any other coverage, we have available to protect your staffing business, give us a call at (800) 245-9653 to speak with one of our representatives.