Business Interruption: Business Income & Supply Chain Risks Revisited

Transcription

1 Business Interruption: Business Income & Supply Chain Risks Revisited 1

2 About Advisen: Advisen Ltd. is a privately-owned, independent and unbiased provider of news, data and risk analytics to the commercial insurance industry. Advisen s mission is to deliver productivity and insight to insurance professionals. Advisen brings greater success though technology and data, revolutionizing the way the commercial insurance industry functions. Our customers leverage the Advisen platform, adding power to their proprietary ability and bringing value to their clients. Please locate us on: 2

3 Many Thanks to our Sponsor!

4 About CNA: Serving businesses and professionals since 1897, CNA is the country s seventh largest commercial insurance writer and the 13th largest property and casualty company. CNA s insurance products include standard commercial lines, specialty lines, surety, marine and other property and casualty coverages. CNA's services include risk management, information services, underwriting, risk control and claims administration. For more information, please visit CNA at Please visit: 4

5 Business Interruption-Business Income & Supply Chain Risks White Paper: Protecting Business Income: Contingent Business Interruption Insurance and the Evolution of Time Element Coverages Copy of these slides Recording of today s webinar 5

6 Today s Moderator David Bradford- President, Research & Editorial Group, Advisen Ltd.

7 Today s Panelists Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

8 Today s Panelists Katie Wilson, Vice President Underwriting, CNA Katie came to CNA in 2005 as part of the Excess and Surplus Lines department; then led the Package and General Liability lines of business before moving into her current role as head of General Liability and Umbrella Underwriting. Katie has over 25 years of commercial and surplus lines underwriting experience with the last 20 years spent in underwriting management roles. She has worked for several carriers in various cities across the US Royal Insurance (St. Louis/Baltimore); Crum and Forster (St. Louis/Pittsburgh); Chubb (St. Louis); and Fireman s Fund (St. Louis/San Francisco/Chicago).

9 Today s Panelists Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Pat O Connor is the Senior Vice President responsible for Large Property and Equipment Breakdown. In January 2011, he brought his outstanding technical capabilities to CNA, joining the senior management group as Senior Vice President of Property Underwriting and Equipment Breakdown. Pat has 34 years of underwriting experience, all in large commercial property and equipment breakdown underwriting and management. He began his career with Wausau Insurance in 1977 and held various technical underwriting and managerial positions there, including Chief Underwriting Officer of Wausau Property. When Liberty Mutual and Wausau merged in 2000, Pat was named CUO of the newly formed Liberty Mutual Property. During his ten years in this position, Pat grew the property unit threefold while generating an underwriting profit nine of 10 years and launched the equipment breakdown underwriting operation for Liberty in Pat earned a bachelor s degree from University of Wisconsin Oshkosh in 1977.

10 Today s Panelists Eva Skordilis, Director, Forensic Accounting Claims, CNA Eva Skordilis joined CNA in May 2009 and is a Director in the Forensic Accounting Department with the Property Large Loss Organization. She is responsible for calculating and analyzing business interruption losses. She works directly with adjusters and insured's in determining the loss amount. She has more than 21 years of Forensic Accounting experience. She worked at the Hartford where she directed business income and liability claim functions evaluating and determining if claims should be litigated or settled, and began her career in Forensic Accounting at Matson Driscoll & Damico - a public accounting firm. Eva is a certified public accountant (CPA). She earned a Bachelor of Science, Business Administration with an emphasis in Public Accounting from Loyola University.

11 Can you explain the concept behind time element coverages? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

12 What are some of the more types of time element coverages? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

13 Let s focus on Business interruption. How does the coverage work? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

14 How does a company know how much coverage to buy? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

15 What are some of the mistakes that are commonly made in the valuation process? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

16 Please explain how a claim is made and settled. Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

17 What factors go into calculating the loss? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

18 How does contingent BI differ from BI? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

19 Why the heightened concern now about risk management issues? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

20 Is CBI an effective way to address these exposures? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

21 What are some of the other things companies should be doing to manage their supply chain risks? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

22 Is the process for determining how much CBI limit to buy similar to that for BI? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

23 Is the claim process similar? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

24 What other time element coverages should companies consider? How can they know which are appropriate to their specific circumstances? Dave Bradford- Advisen Ltd. Katie Wilson, Vice President Underwriting, CNA Pat O Connor, Senior Vice President, Large Property & Equipment Breakdown, CNA Eva Skordilis, Director, Forensic Accounting Claims, CNA

25 Q&A

26 Many Thanks to our Sponsor!

27 White Paper: Available on Advisen s Corner Store 27

28 Upcoming Advisen Webinars Visit for the 2012 Webinar Schedule Clinical Trial Research in Hospitals Thursday, September 27, 2012 at 11am EDT Changing Role of the Healthcare Risk Manager Tuesday, October 2, 2012 at 11am EDT 28

29 Upcoming Advisen Conferences Visit for the 2012 Webinar Schedule Cyber Liability Insights Conference Date: Wednesday October 24, 8:00 AM EDT Location: Bridgewaters, NYC 29

30 How to reach us: Advisen Ltd Broadway 8 th Floor New York, NY Voice: Fax: support@advisen.com 30