This expert panel embarks upon a discussion of key elements of risk management such as the 5-Steps of the Risk Management Process, Understanding 3 Main Types of Loss Exposures, Measuring Loss Exposures, and 5 Types of Risk Control. We’ll discuss Insurance Distribution, Wholesale v. Retail Insurers and Policies to give a business owner an understanding of what to look for in a carrier, a broker and how underwriters operate. We’ll also review some general best practices for Safety and Loss Control applicable to many businesses. In light of current circumstances, we’ll discuss safety measures for employees working from home. Part of the webinar series: INSURANCE FOR THE BUSINESS OWNER - 101 See more at https://www.financialpoise.com/webinars/

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Practical and entertaining education for
attorneys, accountants, business owners and
executives, and investors.

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Thank you to our Sponsor, Sunburst Digital.

4. Disclaimer
The material in this webinar is for informational purposes only. It should not be considered
legal, financial or other professional advice. You should consult with an attorney or other
appropriate professional to determine what may be best for your individual needs. While
Financial Poise™ takes reasonable steps to ensure that information it publishes is accurate,
Financial Poise™ makes no guaranty in this regard.
4

5. Meet the Faculty
MODERATOR:
John Eggum- Foran Glennon
PANELISTS:
Chris Breck - Alper Services/GCG Financial LLC/Alera, Chicago
Bernard Goldman - Foa & Son Corporation
Gary Kirshenbaum - Alper Global Trade Risk Management
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6. About This Series –
Insurance for the Business Owner 101
There’s one type of contract that virtually every business in the United States enters into each
and every year: their insurance contract(s). Despite being bound by and paying (sometimes
handsomely) for these contracts, they’re not always well understood by the business.
Questions as fundamental as what risks should be insured (v. self-insured or mitigated via
contract) and for how much or what losses will actually be covered and at what value are
simply not commonly understood. This Financial Poise webinar series teaches business
owners, executives and their trusted advisors, what they should know about their property &
casualty insurance so they understand how best to protect their assets and people in the
most cost effective manner.
Each Financial Poise Webinar is delivered in Plain English, understandable to investors, business owners, and executives without
much background in these areas, yet is of primary value to attorneys, accountants, and other seasoned professionals. Each
episode brings you into engaging, sometimes humorous, conversations designed to entertain as it teaches. Each episode in the
series is designed to be viewed independently of the other episodes so that participants will enhance their knowledge of this area
whether they attend one, some, or all episodes.
6

7. About This Webinar –
Understanding Risk Management Basics for Business
Owners
This expert panel embarks upon a discussion of key elements of risk management such as
the 5-Steps of the Risk Management Process, Understanding 3 Main Types of Loss
Exposures, Measuring Loss Exposures, and 5 Types of Risk Control. We’ll discuss Insurance
Distribution, Wholesale v. Retail Insurers and Policies to give a business owner an
understanding of what to look for in a carrier, a broker and how underwriters operate. We’ll
also review some general best practices for Safety and Loss Control applicable to many
businesses. In light of current circumstances, we’ll discuss safety measures for employees
working from home.
7

8. Episodes in this Series
#1: Understanding Risk Management Basics for Business Owners
Premiere date: 3/24/22
#2: Property/Business Interruption and Cyber Liability
Premiere date: 4/19/22
#3: General Liability, Umbrella/Excess Coverage, Commercial Auto, Workers’ Compensation
Premiere date: 5/17/22
#4: Executive Protection – Directors’ & Officers’, Employment Practices Liability,
Crime/Employee Dishonesty & Professional Liability
Premiere date: 6/14/22
#5: Personal Lines for the Business Owner/Executive
Premiere date: 7/19/22
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9. Episode #1
Understanding Risk Management Basics for Business Owners
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10. Understanding Risk Management Basics for
Business Owners
• Introduction to Risk Management:
✓ Five Steps in Risk Management Process:
1. Identify – First Party, Second Party, Third Party
2. Analyze/Understand
3. Evaluate, Measure & Quantify – Frequency, Severity, Flow Chart Analysis
4. Review Treatment Options & Implement – Avoid, Separate, Mitigate, Insure,
Improve Condition
5. Monitor & Review
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11. Understanding Risk Management Basics for
Business Owners
• Risk Management Objectives:
✓ Pre-Loss
1. Prepare plan for multiple scenarios
✓ Post-Loss
1. Stabilize
2. Contain loss(es)
3. Continue operations
4. Maintain growth
11

12. Understanding Risk Management Basics for
Business Owners
• Loss Exposure:
✓ First Party Losses
1. Direct Loss
2. Indirect/Consequential Loss
3. Contingent Loss
12

13. Understanding Risk Management Basics for
Business Owners
• Loss Exposure:
✓ Casualty Losses
1. Workers Compensation
2. General Liability
3. Automobile
13

14. Understanding Risk Management Basics for
Business Owners
• Other Types of Loss Exposures:
✓ Liability loss exposures
✓ Business income loss exposures
✓ Human resources loss exposures
✓ Crime loss exposures
✓ Employee benefit loss exposures
✓ Foreign loss exposures
✓ Intangible property loss exposures
14

15. Understanding Risk Management Basics for
Business Owners
• Measuring Loss Exposure
✓ Physical inspection
✓ Financial statements
✓ Historical loss data
✓ Industry/Market trends
• Loss Frequency
• Loss Severity
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16. Understanding Risk Management Basics for
Business Owners
• Risk Control
✓ Avoidance
✓ Sharing
✓ Transferring
✓ Loss prevention
• Loss reduction
16

17. Understanding Risk Management Basics for
Business Owners
• Risk Financing
✓ Retention
✓ Non-insurance Transfers
1. Contractual Risk Transfer
✓ Commercial Insurance
17

18. Understanding Risk Management Basics for
Business Owners
• Insurance Distribution and Insurers:
✓ Direct v. Independent Agency System
✓ Retail v. Wholesale Insurance Carrier Markets
✓ Government Insurance
18

19. Understanding Risk Management Basics for
Business Owners
• Insurance Distribution and Insurers:
✓ Broker Selection
1. How can the broker best help your company?
✓ Research
2. Does the broker know your industry?
✓ Experience
✓ Personalize based on needs
19

20. Understanding Risk Management Basics for
Business Owners
• Insurance Distribution and Insurers:
✓ Underwriting Objectives
1. Qualifications
✓ Credit
✓ Capital/equity
2. Approval/Denial
20

21. Understanding Risk Management Basics for
Business Owners
• Selecting The Proper Insurance:
✓ Policy limits
1. High enough for your company?
✓ Specialized needs to protect your company
✓ Does your company need multiple insurance policies?
1. Does one or more policy have any areas of weak protection?
21

22. Understanding Risk Management Basics for
Business Owners
• Policies and Covered Parties:
✓ 4 Elements of Every Policy:
1. Declarations
2. Insuring Agreement
3. Conditions
4. Exclusions (most important)
22

23. Understanding Risk Management Basics for
Business Owners
• Policies and Covered Parties:
✓ Insurance Binder (Contract)
✓ Insurance Certificates (COI)
✓ Parties:
1. First Named Insured
2. Insured
3. Additional Insured
23

24. Understanding Risk Management Basics for
Business Owners
• Responsibilities of Insurer:
✓ Duties of Insurer
1. Duty to Defend
2. Duty to Indemnify
3. Payment for losses
✓ What Services are Available
24

25. Understanding Risk Management Basics for
Business Owners
• Responsibilities of Insured:
✓ What does an Insured need to consider when selecting insurance?
✓ What does an Insured need to do after selecting insurance?
✓ Duties of Insured
1. Notify Insurer of claim/loss
2. Cooperate with Insurer
25

26. Understanding Risk Management Basics for
Business Owners
• Claims Process:
✓ What does an Insured need to consider when making a claim?
1. Policy limits
2. Deductible
3. Parties involved
✓ How are claim outcomes determined?
✓ When are claim outcomes determined?
26

27. Understanding Risk Management Basics for
Business Owners
• Working From Home, What Is The Risk?
• Introduction
✓ The number of individuals who work from home has increased by 140% since 2005.
✓ Working from the comfort of home brings unique Workers’ Compensation related issues
to the forefront.
• Benefits
✓ Flexibility
✓ Commuting time
✓ It’s always casual Friday
✓ Familiarity with the work environment
27

28. Understanding Risk Management Basics for
Business Owners
• Plan For Home Office Safety
• Safety Defined: Freedom from the occurrence of injury, danger or loss.
✓ Implement a work at home policy
✓ Educate your work at home employees on the risks
✓ Enforce the policy
✓ Have employees take step to increase their home WiFi security
✓ Use checklists to assist with compliance:
✓ OSHA workstation checklist:
https://www.osha.gov/SLTC/etools/computerworkstations/checklist.html
✓ Home office safety checklist:
https://www.telework.gov/federal-community/telework-employees/safety-checklist/
28

29. Understanding Risk Management Basics for
Business Owners
• Risk Mitigation Strategy:
✓ Establish and enforce a written work at home policy
✓ Establish security protocols in your policy
✓ Ensure “customer” visit protocol is also established
✓ Ensure the employee has a dedicated space for work
✓ Conduct a safety and ergonomic assessment of the work area
✓ Ensure there are dedicated breaks
29

30. About the Faculty
30

31. About The Faculty
John Eggum – jeggum@fgppr.com
As a shareholder in the firm, John Eggum concentrates his practice on insurance coverage
disputes and commercial litigation. He is regularly retained in a wide range of insurance
coverage matters relating to property and casualty commercial lines disputes. Insurance
company clients turn to John for his innovative and effective handling of issues including
property coverage litigation (fire, wind, hail, collapse, etc.), inland marine matters, and
liability coverage litigation such as mass tort, products claims, cyber/technology liability and
professional liability claims. He also represents both private and public companies, including
financial institutions, in commercial disputes around the country. John is frequently retained
by insurers, banks and other creditors to provide representation in insolvency and bankruptcy
proceedings. Following law school, John served as law clerk to the Hon. Bruce A. Markell in
the United States Bankruptcy Court for the District of Nevada.
31

32. About The Faculty
Chris Breck– CBreck@alperservices.com
Chris Breck began working at Alper Services in 1989, and today he manages the day-to-day insurance and
business needs of many of Alper Services' oldest clients. His primary responsibility involves the design,
marketing and implementation of commercial property and casualty insurance programs. He specializes in
delivering alternative risk solutions, including captive insurance programs.
Chris maintains a broad industry focus, which includes manufacturing, service, retail, healthcare and
nonprofit companies.
Chris graduated from Illinois State University with a B.S. in Marketing/Business Administration. He has been
a licensed insurance producer since 1992, has maintained his status as a Certified Insurance Counselor
since 1996, and as a Certified Risk Manager since 2010.
32

33. About The Faculty
Bernard Goldman– Bernard.Goldman@foason.com
Bernie leads Foa & Son’s legal and sales teams. An experienced trial attorney specializing in
high-exposure liability and sophisticated insurance coverage matters, he offers clients
creative multidisciplinary solutions to their most complex risk-management challenges. Before
joining Foa & Son, he spent more than 16 years with a Fortune 100 property and casualty
insurance company in executive roles. His responsibilities included oversight in the areas of
legal, sales, underwriting, loss control, and finance/accounting.
Bernie received his J.D., cum laude, from St. John’s University School of Law and his B.A. in
accounting with honor from the City University of New York at Queens College. In his spare
time, he enjoys collecting cars and writing fiction. Bernie has published the novel Shadow
Healer.
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34. Gary Kirshenbaum - GKirshenbaum@alperservices.com
Gary is a Vice President of Alper Services and the Director of the Alper Global Trade Risk Management Division (AGT).
Under his guidance, AGT provides companies the ability to strategically manage their commercial trade risk, both
domestic and export, as well as mitigating political risk involving international business investments.
Risk Management Expertise and Background
Gary has twelve years of experience in trade credit insurance in addition to nine years as a lender in the commercial
finance business. He possesses a deep knowledge of how to minimize credit risk and maximize growth & banking
relationships for Clients. Through this risk management expertise, Gary’s focus is protecting Clients’ money. Additionally,
having owned and run a family business for 10 years, Gary understands the everyday struggles of cash flow and credit
risk companies face related to Accounts Receivable.
Community & Industry Involvement
America-Israel Chamber of Commerce & Industry, Executive Committee, ‘90-’99
Posse Foundation, Advisory Board Member, ‘00-’05
North Shore Congregation, Committee Member, ’16-’19
Education
University of Illinois, Urbana-Champaign, 1988
Imperial College of London, London, England, 1986
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35. Questions or Comments?
If you have any questions about this webinar that you did not get to ask during the live
premiere, or if you are watching this webinar On Demand, please do not hesitate to email us
at info@financialpoise.com with any questions or comments you may have. Please include
the name of the webinar in your email and we will do our best to provide a timely response.
IMPORTANT NOTE: The material in this presentation is for general educational purposes
only. It has been prepared primarily for attorneys and accountants for use in the pursuit of
their continuing legal education and continuing professional education.
35

37. About Financial Poise
37
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