Zurich Academy program/course descriptions

Captives: Are they right for your client?

Credits/Hours: 3

A captive is a privately-held business that manages its own insurance operations with the financial and consultative assistance of an insurer. Due to the regulatory and capitalization requirements associated with running an insurance operation, a licensed, admitted insurer serves as a fronting company. A captive is a form of alternative risk transfer (ART) and enables a company to secure insurance and risk management expertise that is customized for its own operations. As an ART, a captive also allows a company to bypass traditional forms of risk transfer, including conventional forms of commercial insurance.

Captive ownership of an insurance operation allows a company to have control over claims and reserving practices, investments, enjoy certain tax advantages, and potentially recapture investment income and underwriting profit. At the same time, there are also disadvantages, including potentially large commitments of management time, administration and capital, as well as the potential for inadequate loss reserves and potential losses.

This program provides a solid foundation for the broker to understand captives and the tools used to evaluate whether such an arrangement is feasible for a given company. The program concludes by identifying critical criteria that might be considered in evaluating insurance companies to partner with in creating, implementing and managing a captive operation.

Course highlights:

• Advantages and disadvantages of captives
• Components involved in conducting an analysis to determine the feasibility for a business to establish a captive
• Criteria that should be considered in selecting an insurance carrier to assist in the design, implementation and execution of a captive program
• Regulatory environment, both domestically and internationally, relevant to captives

Creative alternative risk transfer solutions

Credits/Hours: 2

New and unprecedented loss exposures and risk management challenges are increasingly facing sophisticated insurance buyers. Examples include cyber liability, natural catastrophe losses and globally compliant employee benefit programs.

Traditional insurance solutions may not respond effectively to many of these new challenges. Sophisticated customers and brokers are increasingly looking for alternative solutions.

This program reviews two specific types of alternative risk transfer programs: structured programs and integrated programs.

Structured programs fall into three main categories:

• Loss-sensitive programs, which involve a blend of risk financing and risk transfer for excess casualty, property and specialty lines, often in combination
• Dual-trigger programs
• Customized risk management programs for unique and highly specialized risk transfer needs

Integrated programs provide a single aggregate coverage limit (among policy design features) that applies to a company’s portfolio of risks. It can be designed to include any variety of traditional coverages, blended under a single policy.

This course illustrates how these concepts work through four case study examples that demonstrate the value and suitability of alternative risk management programs under certain circumstances. It is designed to help producers understand alternatives to traditional programs so they can be in the best position to advise customers on their insurance and risk management needs. 

Course objectives:

• Understand why there is increasing interest on the part of commercial accounts for alternative risk management options
• Learn how integrated and structured programs are designed, including how they can be customized to meet individual account needs
• Understand the benefits of alternative risk management programs
• Learn how  alternative risk management programs are designed and implemented by reviewing four case studies involving a national truck rental firm, global technology company, major retailer and global manufacturer
• Understand the types of organizations that might be suitable candidates for alternative risk management programs

The Affordable Care Act: What producers need to know now

Credits/Hours: 3

Healthcare reform through the Affordable Care Act (ACA) is over nine years old. Its implementation has been difficult and rocky. Its impact has also been significant and has given ammunition to support arguments of those in favor of, as well as those opposed to, this major legislative initiative. Current developments pose a threat to its continuation as a total or partial repeal remain possibilities.

But since the Affordable Care Act is still in effect, insurance practitioners need to have a solid foundation in the major components of the law, an objective understanding of the current and emerging loss exposures associated with the law, and the risk management and insurance programming alternatives available to address those exposures.

For example, the Act requires healthcare providers to implement the use of electronic healthcare records to better coordinate the efficacy and cost of patient care. This creates significant privacy breach exposures. New organizational structures encouraged by the ACA, including Accountable Care Organizations, provide financial incentives for better coordination of care, but also open up such organizations to potential antitrust claims and lawsuits against directors and officers if financial performance does not meet objectives. Millions of new insureds pose the risk that there could be physician shortages that might compromise the quality of care, leading to increased malpractice claims. Finally, private healthcare exchanges are also being created by many insurance brokers to market not only health insurance products, but also a broad range of other financial products. This might increase Errors and Omissions (E&O) exposures. These are a few of the current and emerging loss exposures that have developed as a result of healthcare reform explored in this program.

Course highlights:

• Objectives of healthcare reform and how they were integrated into the Affordable Care Act
• Types of current and emerging loss exposures associated with healthcare reform, including privacy breaches, patient and healthcare worker safety risks, private health insurance exchange malpractice exposures and property risks, as well as the risk management strategies that can help address these exposures
• Types of organizations designed to promote cost-effective healthcare delivery, including Accountable Care Organizations and medical homes

Healthcare professional liability claims review and analysis

Credits/Hours: 2

Managing healthcare professional liability exposures requires ongoing vigilance, starting with evaluating a broad range of metrics related to healthcare claims. In this program, we’ll review and analyze insurance company data related to healthcare professional liability claims frequency and severity. This data will be further parsed by looking at claims experience by facility type (acute care vs. teaching and children’s hospitals, community type (urban, suburban and rural) and national experiences as contrasted with state-specific experience.

A review of the data finds three trends that are still problematic and which will continue to impact healthcare professional liability exposures: behavioral health claims, workplace violence and the opioid crisis. This program reviews the claims data and offers risk management strategies to help healthcare providers manage liability exposures more effectively.

Course highlights:

• Understand sources of professional liability claims, by frequency and severity.
• Analyze where claims are coming from, and assessing loss rates by type of facility and geographic region.
• Identify three ongoing trends that are major drivers of healthcare professional liability trends: behavioral health,  workplace violence and opioid use and abuse.
• Identify lessons learned from professional liability claims analysis and potential insurance and risk management strategies.

International risk management for the middle market company

Credits/Hours: 3

Middle market companies are broadly defined as those with annual revenues between $50- $750 million. Increasingly, these companies look to overseas markets to fuel growth. But conducting overseas operations is increasingly difficult due to the complex nature of insurance needs, rules and regulations. Navigating this complexity used to be the exclusive province of major Fortune 500 companies. But now, middle market companies need access to the same kind of international risk management and insurance expertise.

This program reviews critical global insurance structuring programs, including Controlled Master, Freedom of Service and Financial Interest coverage. It also reviews the growing range of loss exposures and insurance coverage and risk management strategies designed to address these needs. To enhance the learning experience, participants will see how strategies are applied through case studies.

Course highlights:

• Identify the current and emerging risks faced by organizations operating globally
• Learn how Freedom of Service program structures can facilitate insurance coverage arrangements in the 27 countries of the European Union
• Understand how a Controlled Master program issued in the United States, with local policies issued in countries in which the company operates, is designed and administered
• Understand how Financial Interest coverage is structured to protect the financial interest of a parent company when countries do not allow foreign carriers without a local license to provide coverage on a non-admitted basis
• Understand best practices for facilitating the underwriting process associated with global accounts

Managing the international account

Credits/Hours: 2

A broker has bound an international account. Mission accomplished, right? Actually, no. International insurance programs are extremely complex and require ongoing monitoring and vigilance to ensure coverage objectives are accomplished and international insurance rules and regulations are complied with.

Conflicting regulatory regimes, tax issues and corporate governance activities all present complex account management problems. For example, with regard to claims, if a loss occurs locally, can the local subsidiary retain local counsel to defend itself in a lawsuit and local loss control experts, including engineers and medical experts, to help adjudicate a claim? The answer is not necessarily “yes.” With regard to taxation, does a local claim need to be paid in-country? If the global policy cannot pay a local claim, would payment to the parent expose the parent to taxation in its home country? Concerning Certificates of Insurance, would failure to provide evidence of locally obtained insurance trigger breach of contract exposures for a parent company? Raising these issues drives home the point that preconceived assumptions about what will happen may not be true in the international arena and unforeseen outcomes can have significant and adverse financial consequences.

This program reviews the major issues involved in managing the international account on an ongoing basis and provides effective strategies for helping to monitor and manage these accounts so that risk management and insurance objectives can be achieved.

Course highlights:

• Identify critical insurance and risk management programs set-up and structure that need to be communicated to affected business units involved in a global program.
• Identify issues that require regular monitoring and updating in order to optimize account management objectives.
• Identify what information needs to be reported to whom in order to optimize decision-making.
• Learn how to manage ongoing policy change or servicing needs, including endorsements and Certificates of Insurance.

Titan international insurance challenge (business simulation)

Credits/Hours: 3

International insurance programs can be extremely complex and demanding in terms of compliance issues, coverages, coordination and integration with local insurance laws and regulations, costs, and ongoing servicing and administration.

This program presents participants with an opportunity to engage and interact in a business simulation that requires them to analyze the needs of a hypothetical manufacturing company named Titan Industries.

During the course of the simulation, participants are grouped in teams and are confronted with multiple events which will impact the design, implementation, execution and administration of Titan’s international insurance and risk management programs. The events present multiple options for which teams must select the “best” or most optimal alternative and justify the selection thereof, balancing a number of often conflicting demands.

One of the main objectives of the simulation is to demystify what the insurer is doing when presenting, underwriting, structuring and servicing an international insurance and risk management program and to understand how that process works from beginning to end.  All producers working with customers who have global operations will benefit from this intensive, comprehensive, hands-on learning experience.

Course highlights:

• Compete against other teams to formulate a globally compliant insurance and risk management program
• Develop awareness about the factors that may help ensure, or which might impede, successful program implementation
• Identify customer circumstances, goals and objectives in order to optimize global insurance and risk management program strategies
• Identify important insurance program structuring strategies, including use of master policies in coordination with local policies, and Difference in Conditions/Difference in Limits strategies designed to provide comprehensive coverage and prevent coverage gaps
• Learn how the entire process of presenting, underwriting, structuring and servicing an international insurance and risk management program works from beginning to end

Management liability exposures of the mid-sized financial institution: Challenges and opportunities

Credits/Hours: 3

Mid-sized financial institutions (with assets up to $500 million and including banks, brokerage firms, savings and loans, investment banks, trusts, mutual fund companies and other institutions ) are a large, but often underserved sector of the financial services industry in terms of risk management and insurance guidance. This course explains why risk consulting and insurance planning needs are on the rise for this group.

Course highlights:

• Examine new threats facing directors and officers of mid-sized financial firms
• Understand how aggressive competition for new customers (and retention of existing ones) is motivating risky liability-inducing behaviors
• Learn how the Dodd-Frank Wall Street Reform and Consumer Protection Act (a.k.a. financial services reform legislation) impacts mid-sized financial institutions

Management liability risk management strategies

Credits/Hours: 3

Closely-held businesses and not-for-profit organizations have something in common: they both face significant professional liability exposures, yet are frequently remiss in confronting these exposures effectively. While professional liability claims are generally low in frequency, they tend to be high in severity, with dollar verdicts capable of wiping out or severely disabling these types of organizations. In addition, reputational damage can also take a severe toll. This program explains why these organizations need these coverages and what obstacles and objections are voiced in response to these needs. It also reviews cost-effective management liability risk management and insurance strategies.

Course highlights:

• Understand why private companies and not-for-profits typically lack sound management liability insurance and risk management programs
• Identify traditional and increasingly non-traditional instigators of lawsuits against private companies and not-for-profits
• Learn about different types of claims and discuss risk management strategies designed to avoid, minimize or mitigate losses
• Learn how to package management liability submissions in order to facilitate the underwriting process and most effectively advocate on behalf of the applicant to help secure terms and pricing that meet the needs of both insurer and customer
• Understand the different insurance policy types available to address management liability risks and their associated costs and benefits

3D printing: Miracle development or insurance nightmare?

Credits/Hours: 3

3D printing promises to revolutionize everything from the foods we consume to our medical care to our national security. The technology can theoretically reproduce any type of object, but its sophistication, implications and rapid development are major challenges to risk management executives and insurance carriers alike. Examples of 3D technology include:

• 3D printers may now be able to fabricate guns capable of evading airport screening devices
• 3D printing technology has been used to create entire concrete residential homes
• Biotechnologists are developing techniques for creating 3D printer-generated, patient-specific organs to replace failing ones, which will not be subject to rejection
• NASA is hoping 3D printing will enable astronauts to print spare parts in space, eliminating the need for large loads of spare parts and decreasing weight to allow spacecraft to travel further and faster

3D printing technology creates significant new exposures associated with general and product liability, property, equipment breakdown, worker safety, errors and omissions, product recall, copyright and patent infringements. Not all of these exposures are insurable.

This program provides a broad overview of this technology and its capabilities, a sampling of its potential and dangers, and examines what we need to do to address the corresponding risk management and insurance challenges associated with 3D printing.

Course highlights:

• Identify the broad  range of current and emerging loss exposures associated with 3D printing
• Identify the broad range of insurance needs associated with 3D printing
• Identify underwriting challenges associated with 3D printing
• Understand current and future applications of 3D printing technology
• Understand the impact 3D printing can have on various industries, businesses, and on social, cultural and economic fronts

Three critical insurance needs for manufacturers

Credits/Hours: 3

The manufacturing industry is extremely competitive and is characterized by tight profit margins and an emphasis on cost control. Manufacturers tend to focus on maintaining or lowering input costs — whether they are labor, materials or fuel and energy. This cost focus extends to insurance buying decisions, because this consumes a relatively high percentage of both cost of goods sold as well as general overhead and administrative expenses.

While manufacturers need a broad range of property and liability coverage (including professional lines), this course takes the position that three key products should form the core of the average manufacturer’s insurance program: Workers’ Compensation (because it represents 40-50% of the manufacturer’s total insurance spend), Property (because of exposures related to production equipment breakdowns, shipping and transportation risks, theft and vandalism) and global insurance programs (because more manufacturers are producing, selling and/or purchasing products from abroad).

Course highlights:

• Learn the critical components necessary to design, implement and execute a global risk management and insurance program for manufacturers of all sizes
• Learn why export opportunities are improving for manufacturers
• Understand strategies that can impact Workers’ Compensation experience modification rates, especially for different demographic segments of the employee population
• Understand why manufacturers tend to neglect or overlook critical policy gaps in traditional property insurance coverages and how these gaps can be filled with specialized property forms tailored to the needs of the manufacturing industry

The art and science of insurance policy analysis

Credits/Hours: 2

Insurance policies are often difficult to understand and a high percentage of customers and brokers do not spend much time reading or analyzing them. Thus, they can be in for a rude awakening when a claim they assumed would be covered is denied.

Policy analysis is both an art and a science. It’s an art in that the reader must have some baseline skills related to what to look for and how to look for it. It’s a science in that the contract is a written document and that, absent contradictory information or circumstances, courts will interpret a contract as written.

During the program, we will review the major components of a property and casualty (P&C)  contract, how they interrelate and how to evaluate a policy to determine if coverage will apply to a particular circumstance or client. Most importantly, we evaluate a policy on a pre-loss as well as a post-loss basis, with the intent of helping the broker and client determine if coverage is adequate (pre-loss) and what steps need to be taken to quickly and efficiently resolve a claim (post-loss).

Insurance policies can be difficult to understand and interpret, even for seasoned professionals. This program provides a structured, organized and disciplined system for analyzing insurance policies that can help you explain the coverages your clients need and how they can be best structured to respond to their unique circumstances.

Course highlights:

• Understand basic principles of policy interpretation.
• Learn the different ways in which policies can define coverage.
• Learn how to conduct a pre- and post-loss policy analysis.
• Learn how policy interpretation can be impacted by legislative, regulatory and judicial/litigation-related developments.

Using financial statements to identify insurance and risk management needs

Credits/Hours: 3

Financial statements include critical information that can provide insights about a company’s past, present and future prospects. They also reflect an organization’s mindset and attitude about risk management and insurance. This course helps participants see and use financial statements in a different way: to identify loss exposures or planning opportunities that are amenable to risk management and/or insurance solutions.

Course highlights:

• Analyze the purpose, function and interrelationships between the balance sheet, income statement, cash-flow statement and notes in a financial report.
• Learn how to calculate and use key financial indicators to assess a company’s relative financial health.
• Use financial statements to identify key insurance and risk management needs and the company’s ability to pay for those needs.
• Understand how underwriters evaluate a company’s financial condition in the underwriting process.
• Learn to use knowledge of financial statements as a means to gain a competitive advantage in the marketplace.

What brokers need to know about commercial underwriting

Credits/Hours: 2

Effective and profitable underwriting is a core mission of every insurance provider. Carriers use the underwriting process to:

• Evaluate and classify risks.
• Avoid adverse selection.
• Identify and prevent insurance fraud.
• Determine the proper premium to be charged and the terms and conditions of the contract based on risk classification.
• Negotiate terms and conditions.
• Monitor underwriting decisions over the life of the contract in order to make needed contractual changes, appropriate renewal decisions (if applicable) and to continually improve underwriting results.

In addition, the underwriter must provide proactive, responsive service to ensure a mutually beneficial, long-term business relationship.

Clearly, the underwriting position is complex and requires extensive analytical and interpersonal skills. This program is designed to help producers and other agency personnel understand the underwriting process and provide advice on how the broker-underwriter relationship can be best managed in order to accomplish optimal results for all parties concerned: the customer, agency, and carrier. The concepts and principles are presented broadly enough to apply to all lines of commercial coverage, including property, financial lines and general liability.

Course highlights: 

• Learn how and why underwriters examine different parts of a company’s business, management, operations, competitive and regulatory environment, and other factors that impact insurability.
• Understand the documentation used by underwriters and the importance of its availability, timely transmission and accuracy.
• Understand common problems that lead to breakdowns in the underwriting process.
• Learn optimal industry behaviors that can facilitate and enhance the underwriting process to the benefit of customer, agency and carrier.

Why do people miscalculate risk?

Credit/Hours: 2

Behavioral economics is the field of research that evaluates cognitive, psychological, cultural, social and other influences and how those influences affect economic decisions made by individuals and groups. More specifically, it seeks to reconcile and understand why some people are motivated to make decisions that are seemingly irrational and contrary to what rational behavior would suggest is in their best interests. For example, when confronted with extensive information and warnings about an imminent hurricane, why do some people stay put -- at the risk of loss of life, property and/or serious injury -- hoping they’ll get lucky and the windstorm will miss them? The answers identified by behavioral economic research can help provide insights and strategies producers can use to motivate clients to take action.

Course highlights:

• Why a large percentage of individuals, families and organizations choose to underinsure or go without insurance in spite of rational economic evidence that it is not in their best interests to do so
• Understanding the rationale people use to defeat the “best interests” argument
• How to incorporate behavioral economics theory into your sales strategy in a manner that will help you more effectively target “persuadable” buyers and avoid the “unpersuadables”  

Advanced concepts in business interruption insurance

Credits/Hours: 3

Commercial property insurance is a standard coverage for most businesses. It pays for losses sustained to property as a result of a covered peril. But property insurance alone does not address the loss of business income that results from property damage unless it has been expanded to provide such coverage. Over 50 percent of property losses result in business income losses. That’s why most businesses have a critical need for business interruption (BI) and contingent business interruption (CBI) coverage.

A critical part of designing an effective business income protection program is the calculation of business interruption values. The analysis of a company’s financial information is needed to calculate adequate BI and CBI values in the event of losses. Additionally, an understanding of how BI and CBI values are calculated, and how they align with the terms of the policy coverage, can help facilitate payment in the event of a claim, and the restoration of the business in as complete and rapid a manner as possible.  

This program provides the producer with a comprehensive understanding of the need for these coverages, how they are structured, how to calculate the amount of coverage needed, and the best practices involved in documenting the claim.

Course highlights:

• Understand the importance of business income and contingent business income coverage.
• Analyze the difference between how financial statements are prepared based on Generally Accepted Accounting Principles (GAAP) and insurance accounting used to calculate BI and CBI losses.
• Understand how the BI worksheet is calculated for different types of business (manufacturing, retail and service).
• Learn best practices for documenting a BI or CBI claim.

Builders risk insurance essentials

Credits/Hours: 3

Builders risk insurance indemnifies a building owner for damage to buildings while they are under construction, loss of materials used in the course of construction and/or delays in completion for real property during the course of construction. Builders risk is stand-alone, first-party coverage.

During this phase, multiple exposures exist, including those related to fire damage, windstorm, theft and vandalism. Coverage typically covers the construction phase only, and terminates when the work is completed and the property is ready for use and/or occupancy.

Many producers are confused about when to use an inland marine builders risk policy versus a commercial property builders risk coverage form, especially for large or complex construction projects. Here we will compare and analyze the differences when, where and under what circumstances each coverage might best apply. This course also covers when and how to integrate installation floaters and rigging insurance into a comprehensive builders risk insurance and management program.

Course highlights:

• Analyze “soft cost”/optional coverages available on a builders risk policy, and when and how they might apply.
• Identify best practices in designing and implementing a builders risk insurance program to ensure coverage adequacy, suitable limits and to prevent coverage gaps.
• Identify the leading causes of builders risk losses.
• Understand how and when installation floaters may be appropriate in a construction project.
• Understand the similarities and differences between inland marine and commercial property builders risk coverage forms.
• Understand the specific perils covered and excluded under a standard builders risk policy.

Mid-sized vs. large account property insurance needs

Credits/Hours: 3

Companies of different sizes have significantly different property insurance needs. Small to mid-sized companies generally do not present unique loss exposures that are beyond the scope of traditional insurance solutions. At the same time, this market segment still should be aware of common property insurance gaps that need to be addressed. On the other hand, larger companies with more extensive property holdings (including possible global property holdings) do present some unique loss exposures that often require customized solutions, including manuscripting and layered programs.

This program reviews some of the major concerns that may impact the design and implementation of property insurance programs for the mid-sized vs. large property insurance customers.

Course highlights:

• Understand the characteristics of both mid-sized and large buyers of property insurance, including how they are similar and how they differ
• Understand property policy provisions that are typically relevant for mid-sized and large accounts respectively
• Understand differences in mid-sized vs. large account property insurance needs through the use of case study examples

Property insurance: vital coverages and coverage gaps

Credits/Hours: 3

Property insurance is generally described as insurance on commercial buildings and their contents. Most insureds have relied on the traditional ISO form for coverage.

This course reviews the basic property form, with a particular focus on critical coverage gaps, including those pertaining to equipment breakdown, renovation, reconstruction and new construction, vacancy, shipping and transportation, coverage for contractor’s equipment, coverage for lost accounts receivable information and other electronic data.

Typical standard exclusions are also reviewed for the coverage gaps they create. The training is designed to help insurance producers, consultants and other advisors provide better advice and guidance to clientele in need of cost-effective and sufficiently protective property coverage.

Course highlights:

• Identify unique loss exposures confronted by different industries and how traditional property forms may or may not respond to those loss exposures
• Learn about coverage forms or endorsements that can bridge these coverage gaps
• Learn about significant coverage gaps, exclusions and limit/sublimit characteristics that could compromise an insured’s property insurance arrangements
• Understand the major coverage provisions in traditional property contracts

Property risk management for large multinational corporations

Credits/Hours: 3

Large corporate customers face unique and growing property-related loss exposures that require a comprehensive, holistic, dynamic and evolving risk management orientation and mindset. This program seeks to review and analyze the major challenges facing these customers, risk management strategies for the most frequent and severe losses and the criteria that such customers might consider in selecting an insurer.

Special emphasis is placed on the growing risks associated with natural catastrophe exposures, building globally compliant insurance and risk management programs, coverage gaps due to inaccurate or out-of-date valuations and business continuity planning.

This program can benefit all insurance producers working on property risk management and insurance programs with large and multinational organizations.

Course highlights:

• Identify property-related loss exposures typically faced by large multinational corporations
• Identify the challenges associated with building and implementing a globally compliant risk management and insurance program
• Identify typical and recurring property-related loss exposures and the risk management strategies that can be deployed to address them
• Learn, through case study applications, how different types of global property programs can be structured
• Understand the impact of recent global catastrophe losses on capacity and pricing

Small business surety programs

Credits/Hours: 3

A surety bond is a three-party contract involving a principal, who agrees to perform certain work, an obligee, or the party for whom the work will be done, and an insurance company that issues the surety bond guaranteeing the performance of the principal. If the principal fails to perform, the surety or insurance company steps in to indemnify the obligee or to complete the contract. Construction projects typically involve the use of bonds.

All federal contracts greater than $100,000 require bonding. The most common types of bonds are “bid bonds,” which guarantee that the principal will make good on a bid that is accepted, and a performance bond, which is required pursuant to the awarding of the bid and stipulates what the principal is expected to do by way of performance. Many other bonds may also be issued in the context of a public or private construction project, including supplier bonds, environmental bonds and licensing/permit bonds.

The Small Business Administration (SBA) promotes and supports a wide range of programs designed to help socially and economically disadvantaged and minority-owned small businesses, as well as businesses run by veterans or service-disabled veteran-owned small businesses, and businesses operating or planning to operate in historically underutilized business zones (HUBZones). Some of these programs provide surety bond guarantees for companies that would ordinarily not qualify under underwriting standards applied in the private surety market.

This program provides an overview and analysis of the importance of surety bonding to small business owners, programs available to support economic growth under the SBA and other information critical to the qualification for these programs. This program is important for all producers who meet the small business definition, and other similar state and local regulatory and economic development organizations.

• Surety bonding underwriting criteria applicable to small businesses
• Types of bonds typically needed by small businesses, bond guarantee programs and the types of carriers issuing bonds
• Types of programs available through the SBA to support economically and socially disadvantaged groups, veterans and geographical regions, and the bonding requirements imposed by the SBA for these programs

Public-Private Partnerships (P3s)

Credits/Hours: 3

Public-Private Partnerships (P3s) involve a collaboration or partnership between a public entity (like a municipal, state and/or federal government) and one or more private sector companies, often to help develop large-scale infrastructure projects, like bridges, tunnels, roadways or sports stadiums. In these situations, the private sector typically provides and delivers the management and construction expertise, with the government entity supporting the project through outright grants, revenue subsidies and/or tax breaks

Public-Private Partnerships can present significant challenges, including political risks (depending on the region), supply chain gaps, ability to secure financing, meeting contractual obligations and delivering on construction-related guarantees on time and on budget. This program reviews and analyzes P3s and the insurance and risk management strategies designed to help support them.

Course highlights:

• Identify the opportunities and conditions that create the need for P3s
• Identify the top five project risks associated with P3s
• Learn how P3s are generally structured, including the definition and use of Special Purpose Vehicles (SPVs)
• Learn the criteria (including risk profiles) established by rating agencies that result in investment-grade financing arrangements
• Understand the critical risk management and insurance components of a P3 program

The changing risk landscape for technology-based companies

Credits/Hours: 3

This course is an overview of the unique and growing loss exposures faced by companies and organizations involved in a broad range of technology-based fields, including electronics, information technology, communications, factory automation and medical devices.

Many of these risks relate to the rapid pace of technological change, an evolving regulatory and legal environment, globalization, supply chain risks and professional liability exposures.

Course highlights:

• Review growing incidence of internal (employee-instigated) and external proprietary data theft and sabotage
• Identify emerging risks faced by directors and officers of technology-based companies
• Understand new technologies and the surprising (and unanticipated) liability claims they spawn

A growing threat to data security: Information, network security and privacy management

Credits/Hours: 3

Any company or organization that handles personally identifiable information about customers, customer lists or other information critical to an organization’s functioning, could suffer a range of loss exposures that could result in catastrophic financial or reputational loss.

Data can be mismanaged, stolen, sabotaged or lost. Organizations can inadvertently post copyrighted or defamatory information that could trigger claims. Further, data security and privacy laws vary widely, both within the U.S. and around the world.

This course provides an overview of the emerging risks associated with cyberspace and what companies can do to manage them.

Course highlights:

• Growth and cost of data breaches in both the public and private sector
• Growth in the sophistication in the tools and techniques of cyber criminals
• Information vital in underwriting and customizing the security and privacy policy

New risks of advancing technology

Credits/Hours: 3

Technology is rapidly changing the way both people and machines connect and communicate. One area where this is playing out is the Internet of Everything (IoE), in which a broad range of personal and business-related wireless applications and devices are connected. The resulting connectivity can make us more productive and enhance our living conditions and standards in multiple ways. It is making possible things like driverless cars and even surgery that can be carried out remotely, with the doctor hundreds of miles away from the operating room.

But this connectivity can be a mixed blessing. Hackers might be able to infiltrate the driverless car and send it into oncoming traffic or they might send contradictory messages from the robotic surgical device to sabotage an operation. Supply chain risks involve potential disruptions to the manufacturing and distribution of products due to natural or man-made catastrophes, or even endemics like the Asian flu or Ebola. Data collected via cloud computing could rely on servers located in regions that may be subject to extreme weather conditions or political turmoil and disturbance which could jeopardize data security.

The rapid pace of change is a challenge for the insurance industry, which is culturally ill-adapted to such change. For example, actuarial data and regulatory approvals for new insurance products designed to respond to these new risks can take a long time to develop and manage. Additionally, how traditional products (like property insurance, management liability coverages and Workers’ Comp) will respond to these emerging exposures is very much in question. This course addresses those issues and more.

Course highlights:

• Identify the broad range of current and emerging technologies and how they will impact risk management and insurance needs
• Learn that privacy laws vary – sometimes radically – around the world, which can subject individuals and organizations to unexpected liability exposures
• Understand how different traditional insurance products may or may not respond to current and emerging loss exposures and what insurance professionals need to do to plug any gaps in coverage
• Understand the types of products and capabilities presented by 3D printing and the types of product and liability exposures created by this technology

3D printing: Miracle development or insurance nightmare?

Credits/Hours: 3

3D printing promises to revolutionize everything from the foods we consume, to our medical care, to our national security. The technology can theoretically reproduce any type of object, but its sophistication, implications and rapid development are major challenges to risk management executives and insurance carriers alike. Examples of 3D technology include:

• 3D printers may now be able to fabricate guns capable of evading airport screening devices
• 3D printing technology has been used to create entire concrete residential homes
• Biotechnologists are developing techniques for creating 3D printer-generated, patient-specific organs to replace failing ones, which will not be subject to rejection
• NASA is hoping 3D printing will enable astronauts to print spare parts in space, eliminating the need for large loads of spare parts and decreasing weight to allow spacecraft to travel further and faster

3D printing technology creates significant new exposures associated with general and product liability, property, equipment breakdown, worker safety, errors and omissions, product recall, copyright and patent infringements. Not all of these exposures are insurable.

This program provides a broad overview of this technology and its capabilities, a sampling of its potential and dangers, and examines what we need to do to address the corresponding risk management and insurance challenges associated with 3D printing.

Course highlights:

• Identify the broad  range of current and emerging loss exposures associated with 3D printing
• Identify the broad range of insurance needs associated with 3D printing
• Identify underwriting challenges associated with 3D printing
• Understand current and future applications of 3D printing technology
• Understand the impact 3D printing can have on various industries, businesses, and on social, cultural and economic fronts

Trade credit insurance: Ignore at your own risk

Credits/Hours: 3

Trade Credit Insurance is issued to a company to indemnify it in the event the company’s customers (debtors) are unable to make payments on products or services received due to insolvency (Chapter 7, Chapter 11, etc.), protracted default (non-payment within six months of the due date of the receivable) and/or political risks. Political risks include, but are not necessarily limited to, political or economic events that prevent the transfer of payment (like inconvertibility of currency), confiscation, expropriation, and/or nationalization of assets of the customer by a host government, political violence (like an act of war) and/or non-payment for sales made to state-owned enterprises.

Trade credit losses can expose a company to severe financial harm, ranging from an erosion of liquidity and working capital all the way up to bankruptcy. Yet few companies use Trade Credit Insurance, evidence of a widespread lack of awareness of the risks and the availability of a cost-effective solution.

This program provides a review of Trade Credit Insurance, including its definition, why it is needed and how policies are underwritten and structured. To reinforce concepts, examples of trade credit programs are presented and discussed.

Course highlights:

• Understand the unique underwriting criteria used in evaluating trade credit applications
• Learn the purpose and benefits of Trade Credit Insurance
• Understand key policy provisions and protections provided in a Trade Credit Insurance policy
• Learn how to structure a Trade Credit Insurance policy to meet the unique needs of each insured

Healthcare professional liability claims review and analysis

Credits/Hours: 2

Managing healthcare professional liability exposures requires ongoing vigilance, starting with evaluating a broad range of metrics related to healthcare claims. In this program, we’ll review and analyze insurance company data related to frequency and severity of healthcare professional liability claims. This data will be further parsed by looking at claims experience by facility type (acute care vs. teaching and children’s hospitals), community type (urban, suburban and rural) and national experiences as contrasted with state-specific experience.

A review of the data finds three trends that are still problematic and which will continue to impact healthcare professional liability exposures: behavioral health claims, workplace violence and the opioid crisis. This program reviews the claims data and offers risk management strategies to help healthcare providers manage liability exposures more effectively.

Course highlights:

• Understand sources of professional liability claims by frequency and severity.
• Analyze where claims are coming from, and assess loss rates by type of facility and geographic region.
• Identify three ongoing trends that are major drivers of healthcare professional liability trends: behavioral health, workplace violence and opioid use and abuse.
• Identify lessons learned from professional liability claims analysis and potential insurance and risk management strategies.

Optimizing the claims management experience

Credits/Hours: 3

Claims handling and management is an often overlooked and unappreciated part of the insurance business. Many policyholders have negative predispositions about claims handling, believing that insurers are forever looking for ways to deny coverage or reduce their liability. This attitude works to the detriment of insureds and insurers alike. Independent experts generally agree that most businesses are uninsured or underinsured for a broad range of coverages, especially those of a “discretionary” nature (like financial lines coverage). Prospective insureds may believe that the low likelihood of receiving a claim payment or the hassle involved in the process is not worth the expense.

Yet effective and comprehensive claims management can help businesses manage and grow their organizations. The claims management and reporting process can help businesses proactively manage risks that can help save money and lead to long-term organizational growth. This program is designed for agency and brokerage personnel at all levels to gain a better understanding of and appreciation for the claims management process and the role that all parties (customer, broker and carrier) need to play in order for insurance to work most effectively.

Course highlights:

• Common claims myths that serve to discourage the purchase of insurance and/or the procurement of the proper amounts of coverage
• Effective insurer claims services and resources that help insureds mitigate losses and run their businesses better over the long term
• Thorough review of the claims management process — from initial intake to resolution — and strategies for managing the process to maximize results and customer satisfaction
• Unique claims challenges faced by insurers, ranging from catastrophic events to more common situations, like uncooperative witnesses and unreliable medical reports

Trends and developments in workers’ compensation

Credits/Hours: 2

Economic, social, political and legislative forces all have an impact on workers’ compensation. Since virtually every business must provide this coverage, producers need to have a solid understanding of trends and developments influencing workers’ compensation rates, coverage and challenges. In this course, we’ll review significant trends impacting workers’ compensation in several areas.

First, we’ll look at recent workers’ compensation data as it relates to growth in premiums, loss ratios and profitability.

Second, we’ll examine recent state and federal court cases that are impacting workers’ compensation coverage and benefits: marijuana usage, allowable attorney fees, exclusive remedy issues, and constitutionality of workers’ compensation.

Third, we’ll look at hot topics and trends in the workers’ compensation field, including the continuing legalization of marijuana; opioid usage; the impact of the gig economy (involving part-time, temporary and independent contractors); the continuing consolidation of healthcare providers; and the growing need for post-acute care.

Course highlights:

• Identify key recent workers‘ compensation premium, loss ratio and other performance metrics and their implications for effective workers‘ compensation management

Developments in the evolution of cyber insurance

Credits/Hours: 2

Cyber threats continue to be a major concern for businesses of all sizes. No organization, no matter how large or sophisticated, is immune from these threats, which are only expected to grow. As organizations recognize the need to respond, cyber insurance is becoming a critical component of risk management strategies.

This program traces the shifting nature of cyber insurance. We explore how traditional insurance coverages – including property, auto, commercial general liability and management liability – were designed to address conventional loss exposures that are easy to identify and generally agreed upon. Over the past 20 years, however, loss exposures have evolved significantly, led by cyber-related perils. The inability of traditional coverages to effectively address these perils has resulted in frequent changes and updates to cyber insurance coverages.

The program provides an important review and analysis of how coverage provisions have been revised to respond to current and emerging threats.

Course highlights:

• Identify cyber-related threats and how they have evolved over time.
• Learn why businesses are under additional pressure to implement cyber security protections given the rapid expansion of global legislative and regulatory activities demanding cyber security and privacy protections.
• Understand how traditional coverages have evolved to address emerging cyber-related claims.
• Learn why traditional coverages create significant gaps and deficiencies in coverage for cyber-related exposures.
• Understand how stand-alone Cyber Security and Privacy insurance has evolved, as well as recent enhancements to this coverage form.

Cybersecurity survey analysis

Credits/Hours: 2

The eighth annual Information Security and Cyber Risk Management survey from Zurich North America and Advisen demonstrates increasing concerns about cybersecurity exposures and vulnerabilities and, consequently, the growing reliance on cybersecurity insurance. This course reviews these survey findings and provides producers with important benchmarking data by identifying evolving cyber risk management strategies and key cyber concerns expressed by executives of large and middle market companies.

Course highlights:

• Understand the impact of legislative and regulatory developments related to cybersecurity and privacy laws, including the General Data Protection Requirement implemented in 2018 by the European Union.
• Identify potential business interruption exposures associated with cyberattacks.
• Identify vendor management requirements businesses are using to manage cybersecurity exposures.
• Learn the reasons why businesses are (or are not) purchasing cyber coverage.

Ethical behavior and the California Consumer Privacy Act of 2018

Credits/Hours: 3 (eligible for California ethics credit)

In 2018, Governor Jerry Brown signed the California Consumer Privacy Act (CCPA) of 2018 (AB-375). The bill provides significant and expanded privacy protections to consumers and imposes new requirements on businesses to ensure that those protections are properly carried out. The act, which will become effective on January 1, 2020, has significant implications for insurance producers in terms of how we handle data as well as the businesses the industry insures.

This program reviews the California statute in depth, analyzing the consumer protections incorporated into the law, who must comply, penalties and remedies for noncompliance. The program also compares the CCPA with the General Data Protection Requirement (GDPR) implemented by the European Union and explains why compliance with the GDPR will not necessarily be adequate to comply with the CCPA.

Finally, the program explains the linkage between privacy and ethical behavior and why insurance practitioners have an added duty of responsibility to maintain and protect consumer information.

Course highlights:

• Understand the general purpose and objectives of the California Consumer Privacy Act (CCPA) of 2018.
• Learn why the CCPA has global implications, given the size and importance of California’s economy and consumer population.
• Understand how the law broadens privacy protections beyond other privacy laws in the U.S. and around the world.
• Understand the connection between privacy and ethics and the additional demands and responsibilities imposed on the insurance industry and its practitioners in the protection of consumer privacy.

Global trends and developments in consumer privacy laws

Credits/Hours: 3

Countries around the world are enacting privacy laws that impact how companies collect and manage data and the personal information of their customers. Compliance with the laws of one nation or region may or may not be sufficient to comply with laws in other countries or regions.

This course examines legislative, regulatory and enforcement trends associated with privacy laws being enacted around the world and the implications for businesses operating globally.

It is nearly impossible for any company or organization to be in business and not have to confront and be compliant with relevant privacy laws. This applies whether a company is large or small, and whether it operates in multiple countries or has just one location.

Insurance producers need to be aware of relevant privacy law statutes in order to most effectively design cyber security risk management and insurance coverages that best protect their clients.

Course highlights:

• Learn why more governments are establishing and implementing privacy laws.
• Analyze key provisions of major privacy laws, including the General Data Protection Requirement (GDPR) implemented by the European Union and the California Consumer Privacy Act (CCPA).
• Compare and contrast different privacy laws.

A new approach to underwriting cyber insurance

Credits/Hours: 2

The insurance industry has been in the process of developing, introducing and improving a broad range of cybersecurity risk management and insurance tools over the past 20 years. But one of the biggest challenges for insurers is diagnosing the relative strength of an organization’s existing cybersecurity program. Having a robust, comprehensive framework for conducting such an evaluation is critical during the cyber insurance underwriting process. That analysis helps insurers develop the most cost-effective cyber risk and insurance management programs.

One such framework is the NIST (National Institute of Standards and Technology) Framework for Improving Critical Infrastructure Cybersecurity. The Framework is a risk-based set of industry standards and best practices designed to help organizations manage cybersecurity risks. The Framework helps promote organizational efficiency, innovation and economic prosperity while promoting safety, security, business confidentiality, privacy and civil liberties. 

Many carriers are integrating Framework principles into the cybersecurity underwriting process. This program reviews these principles and is designed to help brokers understand this process, how it impacts information needs and its overall impact on underwriting decision-making. Brokers who serve a broad range of industries will benefit from this training, as all industries increasingly face cybersecurity threats.      

Course highlights:

• Identify obstacles underwriters face in evaluating an organization’s cybersecurity strengths and weaknesses.
• Learn the elements of a risk-based approach to cyber risk underwriting.
• Understand the history and purpose of the NIST (National Institute of Standards and Technology) Framework for Improving Critical Infrastructure Cybersecurity and how the principles in the Framework can be applied to the cybersecurity underwriting process.
• Learn how brokers can use the Framework to facilitate the cybersecurity underwriting process to achieve optimal outcomes for their clients (maximum policy limits and broadest possible coverage terms at the lowest possible price).

Trends in cybersecurity insurance and risk management

Credits/Hours: 2

Rarely does a week go by without the announcement of another major data breach perpetrated against consumers, business and/or the government. 

The average total cost of a data breach in 2018 was $3.86 million, an increase of 6.4 percent from 2017, according to the “2018 Cost of a Data Breach Study” from the Ponemon Institute and IBM Security. The same study estimates the cost per lost or stolen record at $148.

Given that typical hacks and data breaches involve hundreds of thousands if not millions of records, the costs to recover are substantial. These costs include legal fees, fines, penalties and forensic analyses to identify the source of breaches. And that does not include intangible expenses associated with data breaches, including damage to reputation and loss of customers who lose confidence in an organization’s ability to protect personal data.

It’s also become quite clear that no organizations are safe from data breach and cyberattack exposure. Thus, effective and adequate cybersecurity insurance and risk management are a necessity.

In this program, we will evaluate and analyze components of comprehensive cybersecurity insurance coverage. But having adequate coverage is not enough, so we will also analyze a range of cybersecurity risk management strategies that can help complement and coordinate with effective insurance coverage.

Course highlights:

• Learn about recent trends related to cybersecurity threats and data breaches.
• Analyze components of a comprehensive cybersecurity insurance policy, including coverages for liability and nonliability coverages.
• Identify meaningful criteria for comparing and contrasting cybersecurity coverages from different carriers.
• Identify critical non-insurance cybersecurity risk management practices.

Integrated disability and absence management

Credits/Hours: 3

Workplace productivity is a key objective of all organizations. One of the biggest impediments to productivity is absence. Absence from work is an ongoing and normal reality, caused by both unplanned events — like sicknesses, injuries and certain family circumstances — as well as planned events, like vacations and maternity leave.

But managing absences, and doing so within the context of both federal and state law, can be particularly challenging. Integrated disability and absence management is a key component of a comprehensive human capital strategy designed to optimize employee productivity, effectiveness and even morale.

This program reviews and analyzes the critical components of an integrated disability and absence management program.

Course highlights:

• Understand key federal and state laws impacting absence management, including the Family and Medical Leave Act and the Americans with Disabilities Act
• Review and analyze Return-to-Work programs that get employees back to work in a cost-efficient manner and which fairly balance employer and employee needs
• Understand the range of both mandatory and discretionary short- and long-term disability insurance programs
• Demonstrate how comprehensive integrated disability and absence management programs can improve productivity and morale

Maximizing the value of employee benefits

Credits/Hours: 2

Employee benefits are an extremely important tool in attracting, retaining and rewarding a quality workforce. Talented employees are the key to any competitive, vital and profitable organization. Yet, despite this, most organizations do not view their human capital as an integral part of their overall Enterprise Risk Management program. They do so at great peril, because inadequate or ineffective human resource and employee benefit management can put organizations at great risk.

Employee benefit program design, cost and implementation issues involve significant challenges for organizations of all sizes. These challenges include rising healthcare costs, under-funded pension obligations, increasing Workers’ Compensation costs, aging workforces, and uncompetitive executive retention and succession planning programs. Benefit programs, including health and welfare programs, need to be managed with the same attention as property and casualty risk management programs.

All producers need to have a solid working knowledge of HR and benefit program management needs because they are so inextricably woven into an organization’s overall risk profile. Through this program, producers will understand why HR management and employee benefit optimization are central components of an enterprise-wide risk management program.

Course highlights:

• Learn about current and emerging human resources and benefit management-related organizational risks
• Learn how effective multinational pooling programs and benefit programs are structured, using case studies involving Fortune 500 companies
• Learn why employee benefit management programs need to be an integral part of an organization’s overall enterprise risk management program
• Understand the potential advantages of utilizing tailored coverage for globally mobile employees, multinational pooling programs and benefit captives in order to accomplish benefit planning objectives
• Understand the importance of employee benefits in attracting and retaining a qualified work force

Ocean cargo insurance

Credits/Hours: 3

Ocean cargo insurance provides first-party property coverage for goods in international transit. It is critical coverage for any company engaged in the importation or exportation of ocean-going shipments. Typical insureds include companies involved in import/export wholesaling and distribution, and manufacturers who have overseas processing operations, import raw materials and/or export goods for overseas sales.

The generalist property and casualty producer, who addresses a broad range of client needs, may or may not be aware of ocean cargo-related exposures. This course addresses those needs, including a review of critical marine-related insurance terminology (including Incoterms, the terms of sales that help determine who is responsible for providing insurance during international transit and Inchmaree clauses, which cover losses related to a latent defect in a vessel’s hull or machinery), losses resulting from errors in navigation or management of the vessel by captain or crew and risk management and underwriting concerns. This program will help the producer identify and facilitate the proper structuring of an ocean cargo risk management and insurance program.

Course highlights:

• Define ocean cargo coverage and the unique terminology used in ocean cargo and marine-related policy forms.
• Identify types of clients who are candidates for ocean cargo coverage.
• Understand the basic structure of the ocean cargo policy, including the extent of “all-risk” coverage and exclusions.
• Understand the benefits of ocean cargo coverage, including its importance in bank and trade financing arrangements.

Insurance and risk management strategies for the energy sector

Credits/Hours: 3

This course focuses on how changing energy demand, consumer preferences and legislative and regulatory developments are impacting the oil and gas, mining, power generation and alternative energy industries. Particular focus is placed on risk and crisis management strategies in the wake of recent major disasters, including the oil spill in the Gulf of Mexico and the nuclear reactor catastrophe in Japan.

Course highlights:

• International needs of energy companies
• Recent developments impacting the exploration and development of natural gas resources and their impact on risk management and insurance programming
• Unique risk management challenges and strategies associated with the energy industry

Risk management and insurance needs of middle market energy companies

Credits/Hours: 3

Middle market energy companies are those involved in the oil and gas, mining, power generation and renewable energy businesses with up to $250 million in annual revenues. Often privately-held family businesses, they operate in an industry that is typified by low profit margins, intense competition, significant regulation and often thin management depth or “bench strength,” particularly as it pertains to risk management and insurance expertise. Yet deficiencies in this area can jeopardize the survivability of these companies. This program reviews major challenges faced by these companies and strategies for dealing with them.

Course highlights:

• Identify trends impacting the profitability of companies in the middle market segment of the energy sector
• Understand why and how five areas — cyber security, fleet management, vendor control, property management and worker safety — present major opportunities for loss control improvements
• Learn how to coordinate insurance programming and non-insurance risk strategies into a comprehensive, integrated enterprise risk management program that can address the five major challenges faced by these companies

Manage the risk challenge (a business simulation)

Credits/Hours: 3

Supply chain management involves the management of flows involving goods and services, including the procurement and storage of raw materials, work-in-progress inventory and finished goods from point of origin through delivery. This management process requires coordinated, comprehensive and highly integrated design, planning, execution, control and monitoring of supply chain activities. Effective supply chain management can bring significant value to an organization, including helping it gain a competitive advantage, enhance profitability and shareholder value.

Numerous events and circumstances can jeopardize supply chains and all must be planned for. These events can include cyber events like hacking, natural catastrophes, fires, explosions, political risks, theft, fraud, corruption and/or regulatory developments that impact business operations. An inability to anticipate and manage supply chain disruptions can result in a host of negative outcomes, like financial losses, reputational damage and customer defections.

This program involves learning about supply chain management through the use of a business simulation, in which participants are assigned to teams. An effective insurance and risk management program can help maximize cash, while a program that is ineffective could result in cash depletion and bankruptcy.

Through this highly interactive business simulation, participants will gain a much better understanding of the importance of supply chain management. They will also learn about the role and proper design and implementation of an insurance and risk management program designed to ensure supply chain effectiveness.

Course highlights:

• Compete against other teams to formulate an insurance and risk management program designed to respond to supply chain disruptions, including natural catastrophes, terrorism, employee sabotage and cyber hacking.
• Identify both direct and indirect suppliers who populate an organization’s supply chain.
• Identify events that can cause supply chain disruptions.
• Learn how effective supply chain management can enhance organizational competitiveness and value.

New risks of advancing technology

Credits/Hours: 3

Technology is rapidly changing the way both people and machines connect and communicate. One area where this is playing out is the Internet of Everything (IoE), in which a broad range of personal and business-related wireless applications and devices are connected. The resulting connectivity can make us more productive and enhance our living conditions and standards in multiple ways. It is making possible things like driverless cars and even surgery that can be carried out remotely, with the doctor hundreds of miles away from the actual operating room.

But this connectivity can be a mixed blessing. Hackers might be able to infiltrate the driverless car and send it into oncoming traffic or they might send contradictory messages from the robotic surgical device to sabotage an operation. Supply chain risks can involve potential disruptions to the manufacturing and distribution of products due to natural or man-made catastrophes, or even endemics like the Asian flu or Ebola. Data collected via cloud computing could rely on servers located in regions that may be subject to extreme weather conditions or political turmoil and disturbance that could jeopardize data security.

The rapid pace of change is a challenge for the insurance industry, which is culturally ill-adapted to such change. For example, actuarial data and regulatory approvals for new insurance products designed to respond to these new risks can take a long time to develop and manage. Additionally, how traditional products (such as property insurance, management liability coverages and workers’ compensation) will respond to these emerging exposures is very much in question. This course addresses those issues and more.

Course highlights:

• Identify the broad range of current and emerging technologies and how they can impact risk management and insurance needs.
• Learn that privacy laws vary – sometimes radically – around the world, which can subject individuals and organizations to unexpected liability exposures.
• Understand how different traditional insurance products may or may not respond to current and emerging loss exposures and what insurance professionals need to do to plug any gaps in coverage.
• Understand the types of products and capabilities presented by 3D printing and the types of product and liability exposures created by this technology.

Strategic ERM and insurance programming

Credits/Hours: 3

Enterprise risk management (ERM) has been around a while, but its focus has shifted. In the 20th century, ERM was mainly focused on traditional risks like fire, windstorm and theft. These risks were primarily managed through insurance, with residual risk management coming in the form of loss control and claims management. Ultimately, protecting the organization’s balance sheet was the primary objective.

In the 21st century, the range of loss exposures is broader and often unprecedented, with potentially larger and more catastrophic consequences, including terrorist attacks, global economic crises and massive natural disasters. Further, the risk landscape is changing rapidly, abetted by technology, global outsourcing and cloud computing.

Many consumers and brokers view risk management and insurance through a narrow prism — as an expense item on the income statement. The reality, however, is different. Recent studies suggest that companies with strong enterprise risk management programs experience better financial results.* The focus on ERM has changed from a defensive, balance-sheet preservation approach to a more holistic, proactive, creative approach. Insurance professionals need to understand this new approach to ERM and the role that insurance plays in a comprehensive, well-rounded risk management program.

* Journal of Applied Business and Economics, Vol. 16 (2). 2014.
Aon Risk Solutions. Aon Risk Maturity Index, Insight Report. November 2013.

Course highlights:

• Analyze the phases of the risk-evaluation process, including the identification of possible loss exposures, prioritization of those exposures and analysis of alternative risk management strategies that, separately or in combination, can most optimally manage risk.
• Explain why independent rating agencies are now requesting public companies to provide greater oversight for and reporting of enterprise risk management programs.
• Understand why organizations benefit from greater risk accountability at all levels of the organization.
• Evaluate the broad range of risks faced by organizations, including people-related risks, market risks, financial risks, strategic risks, reputational risks and operational risks.
• Demonstrate how to incorporate enterprise risk management decision criteria into major business decisions, such as mergers and acquisition, global expansion and human resources management decisions.

The chain is only as strong as its weakest link: Supply chain risk management and insurance strategies

Credits/Hours: 3

Supply chain risk management is rapidly becoming a major concern for companies of all sizes, domestically and internationally. Disruptions due to natural or man-made catastrophes that impair or damage supply lines can threaten a company’s very existence. Accordingly, regulators both in the U.S. and abroad are requiring companies to provide an assessment of their supply chain risks and management capabilities in appropriate financial disclosure documents.

This program highlights the importance of supply chain risk management and the role Supply Chain Insurance can play in such a program. All producers need to have a sound working knowledge of this issue in order to adequately and proactively advise their clients in a matter of significant and increasing concern.

Course highlights:

• How a supply chain risk assessment is conducted and potential challenges (including organizational opposition and inertia) that can impede it
• How inadequate supply chain risk management can create professional liability exposures for directors and officers
• How to apply a supply chain “fire drill” to get a preliminary assessment of a company’s ability to deal effectively with a supply chain disruption
• What Supply Chain Insurance does and does not cover, and the role of this coverage in a coordinated, comprehensive risk management program
• Why both the monetary and non-monetary costs associated with supply chain disruption can be catastrophic
• Why conventional insurance coverages can fail to adequately address supply chain loss exposures
• Why regulators all over the world are requiring companies to disclose information related to business and supply chain resiliency to investors and other stakeholders

Contractor’s pollution liability insurance

Credits/Hours: 3

Contractor’s Pollution Liability (CPL) provides third party coverage for bodily injury, property damage, defense, and cleanup resulting from the discharge, dispersal, escape or release of pollutants due to contracting operations performed by or on behalf of a contractor. The coverage is offered on a claims-made or occurrence basis and can be provided on a project or blanket program basis. Typically, the purchase of CPL is motivated by contractual requirements imposed by an owner/general contractor, and by the need for asset protection and coverage in the event of a catastrophic environmental loss exposure, which can cause both financial and reputational ruin.

This program helps the producer understand the types of loss exposures faced by the broad range of contractors and subcontractors involved in construction projects, including the regulatory landscape within which they need to operate. The program then reviews CPL coverage and its role in managing construction-related environmental exposures.

Course highlights:

• Define strict, joint and several, as well as retroactive, forms of liability, as they pertain to federal and state environmental protection laws.
• Identify existing and potential environmental hazards at a construction job site
• Identify the broad range of environmental contractors, including abatement, hazardous materials, handling and cleanup, waste management and environmental consultants whose work can generate a liability claim
• Learn why the Commercial General Liability (CGL) policy may  not provide adequate coverage in the event of a pollution event, and that pollution coverage in the CGL form has eroded over time
• Understand major coverage grants in the Contractor’s Pollution Liability policy

Environmental risk management and insurance

Credits/Hours: 3

Environmental risk management and insurance programming should be a “top of mind” concern for all companies, because nearly all organizations leave an environmental footprint that can potentially create property damage, bodily injury and/or liability exposure. Sometimes these footprints are obvious, as in the case of smokestack industries like coal-burning utilities or manufacturers that discharge effluent into waterways. But many organizations inadvertently create liability-inducing pollution and/or are unaware that the byproduct of their activities is, indeed “pollution.” For example, a real estate management company might be exposed to indoor air pollution claims (like Legionnaire’s Disease) associated with mold spewed forth from a damaged HVAC system. A high school may get sued because a chemistry class experiment resulted in vapors being inhaled, which caused respiratory infections. Pollution may even be in the form of very unlikely substances, as when large amounts of cheese were discarded into city sewers by a manufacturer, resulting in significant damage to the sewage system in a local municipality.

A long-standing liability concern relates to the potential latent effects of exposure to pollution: it sometimes takes years, even decades, for such exposure to have damaging consequences.

This program reviews current and emerging environmental loss exposures, the different industries (some expected, some unexpected) that have these loss exposures, the changing legislative and regulatory environment, and relevant risk management strategies, including the major types and applications of environmental insurance.

This program will have value to all commercial producers, regardless of area of focus, because environmental exposures are broad-based and apply to virtually every industry.

Course highlights:

• How almost all businesses may engage in activities that can lead to pollution liability exposure
• Review of California’s climate change regulation (Assembly Bill 32) and its potential impact on climate change debate
• Top regulatory priorities being pursued by the U.S. Department of Environmental Protection
• Why “pollution” can be broadly defined to include not only conventional “toxic” substances, but also non-toxic substances that can still result in pollution liability exposure
• Why traditional coverage forms, including the Contractor’s General Liability policy, may not be adequate to meet pollution liability exposures
• Commonly-used specialized forms, including Contractor’s Pollution Liability, Fixed Price Remediation, Professional Environmental Consultant’s Liability and Lender Environmental Protection forms

Lender environmental liability protection

Credits/Hours: 3

Environmental liability is a major loss exposure for financial institutions engaged in financing loans where real estate is used as collateral. The “doomsday scenario” for lenders is when a commercial real estate deal defaults and forecloses, combined with a situation in which an environmental condition exists on the property that may put the lender at risk of liability exposure associated with environmental damage, including claims related to third- party property damage and/or bodily injury.

This program provides an understanding of the issues and insurance and risk management solutions that can address environmental loss exposures associated with commercial real estate financing. The program highlights the importance of the effective design and implementation of a Lender Environmental Collateral Protection and Liability insurance, also known as Secured Creditor Environmental Insurance, in managing environmental risk.

Course highlights:

• Identify environmental liability exposures faced by real estate loan originators, including banks, mortgage bankers, insurance companies and pension funds.
• Understand the credit underwriting challenges faced by real estate lenders as they pertain to environmental liability exposures.
• Learn why Lender Environmental Collateral Protection and Liability insurance can be a  cost- and time-effective solution for real estate lenders in managing environmental risk.

These courses are designed to satisfy state-mandated ethics, insurance rules and regulations and/or anti-fraud training requirements. Check with us regarding individual state rules.

Accountability: an ethical imperative

Credits/Hours: 3

This course is designed to satisfy state-mandated ethics and regulatory training requirements.

Adverse medical outcomes can create serious malpractice liability problems for doctors and healthcare organizations. Many health organizations are adopting a radically new communications strategy designed to forestall, eliminate or minimize lawsuits when an adverse medical event occurs. This strategy is based on a commitment to a full and fair objective evaluation of the negative event and, based on it, quickly and collaboratively working out a settlement when the fault is with the provider. There is also a corresponding investigation and communication to address why fault may not lie with the provider. These strategies have resulted in a significant decline in medical malpractice liability and have tremendous potential application in other lines of insurance as well.

Course highlights:

• Understand how to apply  the lessons of the healthcare accountability-based approach to other lines of insurance
• Explain the futility of a “deny and defend” approach to liability claims
• Demonstrate how some healthcare providers have solved their medical malpractice problems by adopting a customer service mentality

Ethical behavior and the California Consumer Privacy Act of 2018

Credits/Hours: 3 (eligible for California ethics credit)

In 2018, Governor Jerry Brown signed the California Consumer Privacy Act (CCPA) of 2018 (AB-375). The bill provides significant and expanded privacy protections to consumers and imposes new requirements on businesses to ensure that those protections are properly carried out. The act, which will become effective on January 1, 2020, has significant implications for insurance producers in terms of how we handle data as well as the businesses the industry insures.

This program reviews the California statute in depth, analyzing the consumer protections incorporated into the law, who must comply, penalties and remedies for noncompliance. The program also compares the CCPA with the General Data Protection Requirement (GDPR) implemented by the European Union and explains why compliance with the GDPR will not necessarily be adequate to comply with the CCPA.

Finally, the program explains the linkage between privacy and ethical behavior and why insurance practitioners have an added duty of responsibility to maintain and protect consumer information.

Course highlights:

• Understand the general purpose and objectives of the California Consumer Privacy Act (CCPA) of 2018.
• Learn why the CCPA has global implications, given the size and importance of California’s economy and consumer population.
• Understand how the law broadens privacy protections beyond other privacy laws in the U.S. and around the world.
• Understand the connection between privacy and ethics and the additional demands and responsibilities imposed on the insurance industry and its practitioners in the protection of consumer privacy.

Insurance anti-fraud training

Credits/Hours: 3

Insurance fraud costs U.S. consumers billions every year and the losses attributable to it continue to grow. The Coalition Against Insurance Fraud offers a very conservative estimate of $80 billion a year in losses due to insurance fraud.* It is often difficult to calculate insurance fraud loss accurately, because experts agree that a large percentage of insurance fraud incidents are both successful and undetected.

Insurance fraud is widespread and has a wide range of perpetrators, from organized crime gangs “staging” accidents to an individual applying for life insurance who misrepresents his smoking habits. Many consumers believe that insurance fraud is acceptable, taking the position that “I’ve paid my premiums every year for the past 25 years but haven’t gotten anything back.”

The bottom line is that insurance fraud has a highly damaging, corrosive effect, which is manifested in several ways: unnecessarily higher premiums, more intrusive time-consuming claims investigation activities and a loss of faith and trust in insurance by the very consumers who vitally need the protection it provides. This course defines insurance fraud, reviews the scope and extent of fraud, ways to detect it, and carrier and producer responsibilities in identifying, reporting and stopping insurance fraud.

* As of December 2015. Coalition Against Insurance Fraud website. (Accessed February 18, 2019)

Course highlights:

• Identify how fraud is perpetrated for different lines of insurance, including life, health, property and auto insurance.
• Identify major “red flags” that can indicate insurance fraud is being planned or has been perpetrated.
• Learn insurer responsibilities for identifying, reporting and stopping insurance fraud.
• Learn the producer’s role and responsibilities in identifying, reporting and stopping insurance fraud.
• Learn the sources of different types of losses in the insurance industry, including fraud, waste, errors and abuse and the interrelationship of these sources of loss.