The Third Wave of Y2K

The third wave will be claims by customers and other third parties, ranging from breach of contract to garden-variety torts.

Some commentators suggest that the average citizen plan for the Y2K problem in the same manner as they might plan for a hurricane, blizzard or other natural disaster:

• Acquire a gasoline-powered generator to make electricity.
• Store food for a month.
• Lay in a supply of month’s cash and commodities suitable for barter.
• Generate hard copies of all financial, tax, school, insurance and governmental records.
• Keep all bank-deposit slips, bank, brokerage and fund statements.
• Store at least a month’s supply of prescription medicines.

While the advice may well be extreme, it isn’t irrational. The same sort of contingency planning may be appropriate at work.

After a natural disaster, insurance companies are presented with the types of claims for property damage that one might reasonably expect. However, they’re also presented with an increase in general liability claims, which seem to arise when humans do things that they aren’t accustomed to doing. It isn’t unreasonable to expect that most businesses will face “general liability,” simple negligence claims.

Problems may arise from deficiencies in embedded systems. A comprehensive review of the company’s insurance and risk-management plan is an important part of the planning process.