#risk-management
Risk Management
Strategies for identifying and mitigating business risks including insurance
FTC Bans Air AI From Selling Business Opportunities: What the $18M AI-Washing Case Means for Buyers
The FTC's March 2026 settlement permanently bans Air AI and its owners from marketing business opportunities after buyers lost up to $250,000 on exaggerated AI earnings claims. Here's what the $18 million judgment covers, how the Business Opportunity Rule's seven-day disclosure and Earnings Claim Statement protect buyers, and a practical checklist for vetting any AI-powered business pitch.
Montgomery v. Caribe Transport: The Supreme Court Just Made Freight Brokers Liable for Negligent Carrier Hiring
On May 14, 2026, the Supreme Court ruled 9-0 in Montgomery v. Caribe Transport II that freight brokers can be sued under state negligence law for hiring unsafe motor carriers, ending FAAAA preemption as an early-dismissal defense. Here is what brokers and shippers should do about carrier vetting, documentation, and insurance coverage.
The NLRB Joint-Employer Standard Reverted in 2026: What It Means for Staffing, Franchise, and Subcontractor Arrangements
On February 25, 2026, the NLRB withdrew its 2023 joint-employer rule and reinstated the 2020 standard, which requires actual "substantial, direct, and immediate control" over eight essential employment terms. Here is what the reversal means for businesses using staffing agencies, franchise agreements, or subcontractors — and the practical steps to limit exposure.
Drake Plastics v. IRS: What the Micro-Captive Listed-Transaction Ruling Means for 831(b) Owners
In April 2026, a Texas federal court vacated the IRS rule that automatically branded micro-captives with loss ratios under 30% as listed transactions — eliminating the $200,000-per-year penalty tier — while upholding the 60% transaction-of-interest disclosure requirement. Here is what 831(b) captive owners must still file, and why loss ratios now determine your entire compliance posture.
How to Book a Workers' Comp Dividend Check (and Why a Retro-Rating Plan Can Also Send You a Bill)
Workers' comp dividend checks and retro-rating adjustments arrive 6–30 months after a policy expires. Dividends are discretionary — book them as a reduction of insurance expense when declared, never accrued in advance. Retro adjustments are contractual — accrue the estimated premium as a liability in the period the losses occurred, then true up at each 6-, 18-, and 30-month adjustment.
Business Owner's Policy (BOP): What the Bundle Covers, What It Costs, and What It Leaves Out
A Business Owner's Policy bundles general liability, commercial property, and business income coverage at 10–15% less than buying them separately — median premiums run $57–$83/month. Here's who a BOP fits, the exclusions that catch owners off guard, and why clean books determine how much a business income claim actually pays.
Does Business Interruption Insurance Cover Cloud Outages? A Small-Business Guide to CBI Coverage
Standard business interruption insurance requires physical damage to your property, so a cloud outage like the October 2025 AWS or Azure incidents typically pays nothing. This guide explains how contingent business interruption (CBI) coverage works, the trigger language and 24–72-hour waiting periods to check, typical costs ($40–$130/month standalone), and the financial records you need to substantiate a claim.
EPA's PFAS Reporting Rule (TSCA 8(a)(7)): What Small Manufacturers and Importers Must Report Back to 2011
EPA's TSCA Section 8(a)(7) rule requires manufacturers and importers of roughly 770 PFAS chemicals to report production, use, and disposal data back to January 1, 2011. The submission window now opens January 31, 2027 (or 60 days after a final scope rule), with proposed exemptions for articles and concentrations at or below 0.1% — here's what small businesses should document now.
The FTC's Fake-Review Crackdown: What the Consumer Review Rule Means for Your Small Business
The FTC's Consumer Review Rule (16 C.F.R. Part 465) took effect October 21, 2024, and in December 2025 the agency sent its first warning letters — with civil penalties of up to $53,088 per violation and no small-business exemption. A practical guide to the six prohibited practices, from rating-conditioned rewards to review gating, and a five-step compliance checklist owners can finish in a week.
Supplier Concentration Risk: What Happens When Your One Key Vendor Disappears
Supplier concentration risk — depending on one vendor for over 25–30% of spend or an irreplaceable input — is among the most predictable, least-planned-for small-business threats. A guide to screening your accounts payable for spend and operational concentration, mapping hidden sub-tier dependencies, and building affordable redundancy.
Georgia's SB 69 Litigation Funding Law: NMLS Registration, the $25,000 Discovery Rule, and What Small Businesses Should Check Before Signing
Georgia's SB 69, effective January 1, 2026, requires litigation funders to register with the Department of Banking and Finance via NMLS, makes funding agreements of $25,000 or more discoverable, caps funder fees at net recovery, and bars foreign-adversary funding. Here's what small business owners should verify before accepting a litigation funding offer.
KPMG Australia Cut Partner Pay 20% Over an Ethics Scandal. Here's How to Vet Your Own Accountant.
KPMG Australia is preparing to cut over 1,000 of roughly 10,000 jobs and reduce partner pay by up to 20% after admitting it mishandled a 2024 whistleblower complaint alleging misuse of confidential client data. The same five independence threats behind the scandal — self-interest, self-review, advocacy, familiarity, and intimidation — apply to any local CPA firm, and this guide covers the red flags plus a five-step due-diligence checklist (license lookup, peer review report, references, commission disclosure, engagement-letter scope) for vetting your own accountant.