Check out this presentation from Betsy Ellis Clement, of Gillis Ellis and Baker, during New Orleans Entrepreneur Week 2016.

1. READY FOR TAKEOFF
INSURANCE FOR ENTREPRENEURS
Insurance 101
Presented by:
Betsy Ellis Clement

2. Know what you are buying
Know why you are buying it
Buy it smart

3. 01 Building & Contents - How are they defined?
02 What are perils? Which “form” do I buy?
03 Improvements & betterments vs. contents
04
• Business Interruption
• Extra Expense
• Your agent needs your financials
Business Income - What is it?
property insurance.

4. • Percentage Deductibles – % of
what?
• Flood
• Electronic Data Processing
• What about someone else’s
stuff in your care?
• Off premises? In Transit?
• Don’t Guess
property insurance.

5. Covers
Three
Perils
How
much is
enough?
How is it
rated?
1) Bodily Injury
2) Property Damage
• At your premises
& for your
products &
completed ops
3) Personal Injury
• $1,000,000 per
occurrence /
$2,000,000
aggregate
• Consider
Umbrella /
Excess Liability
• Sales
• Payroll
• Square Footage
general liability.

6. •Subcontractors & Independent Contractors
•The Audit
•Classification limitation
•Designated Premises Limitation
•Coverage Territory
•Louisiana Payroll Cap
•Hired & Non-Owned Auto
•Employee Benefits Liability
general liability.

7. workers compensation.
•Part I: Statutory Workers
Compensation Insurance
•Part II: Employer’s Liability
•Part III: Other States Insurance
•In Louisiana, Workers Compensation
insurance covers the medical bills of
employees injured in course and
scope work and 66 2/3 of average
weekly wage (subject to maximums)
•Classification code rate is applied
per $100 of payroll

8. workers compensation.
• Owners/Officers can exclude
themselves (This is not
recommended)
• If not excluded, payrolls are capped
for owners/officers
• The audit
• Here come those subs again
• Stay away from the water, or
endorse policy accordingly (USL&H)
• Report, report, report your claims

9. •Excess over General liability, Employers
Liability, Auto
•How much is enough?
•Preferable to keep with the underlying
carrier
•Don’t be afraid to report claims
umbrella.

10. •Liability insurance payable to (or on
behalf of) directors and officers of an
organization or to the organization
itself as indemnification for wrongful
acts
•Can include defense costs associated
with criminal and regulatory matters
•Excludes civil or criminal fines and
any amount allocated to non-covered
losses
directors & officers.

11. 01$5,000,000
02$1,000,000
03$250,000
04$560,000
Misuse of funds:
State attorney general
sued a large charitable
foundation, alleging
the trustees were
overpaid and
underworked.
Settlement:
$5,000,000
Antitrust & False
Advertising: A
competitor sued
insured claiming that a
new product was
based on a proprietary
method and customers
were being improperly
steered to use it.
Defense alone:
$1,000,000
Intellectual Property:
Software developer
claimed the insured
organization took his
ideas and developed its
own software, allegedly
retaining and using his
intellectual property to
create a competing
product. Defense &
Settlement: $250,000
Patent Infringement:
Company sued the
insured, asserting
patent infringement,
fraud,
misrepresentation and
breach of contract.
Defense & Settlement:
$560,000
claims scenarios.

12. •A type of liability insurance covering
wrongful acts arising from the
employment process
•Wrongful Acts include wrongful
termination, discrimination, sexual
harassment, retaliation, defamation,
invasion of privacy, failure to promote,
deprivation of a career opportunity, and
negligent evaluation
•Third Party Claims
employment practices liability.

13. crime.
•Employee Theft
•Employee Theft of Client
Property
•ERISA Fidelity
•Funds Transferred Fraud
•Computer Crime
•In Transit
•Personal Accounts Protection
•Forgery or Alteration
•Money Orders & Counterfeit
Money
•On Premises

14. •An event that leads to a Privacy
Wrongful Act or a Network
Securities Wrongful Act
•Caused by:
 Hackers
 Viruses/malware
 Careless employees
 Lost computers/flash drives
 Stolen briefcase
cyber liability.
The new frontier of claims

15. • Privacy & Network Security Coverage
 Pays for the Loss (defense expenses, monetary damages, pre-judgement interest, post-
judgement interest, settlements, fines and penalties, etc.) due to a claim resulting from
a Privacy or Network Security wrongful act.
• Notification & Credit Monitoring
 The Insurer will reimburse the insured for the costs they incur to notify and monitor
the credit of a person residing in the US, including employees, who is the victim of a
Privacy Wrongful Act.
• Data Forensics
 The Insurer will reimburse the insured for data forensic expenses incurred in
connections with a data breach that leads or may lead to a Privacy Wrongful Act or
Network Security Wrongful Act.
• Crisis Management Coverage
 The Insurer will reimburse the insured for the Crisis management expenses they incur
in connection with a Material Event.
cyber liability.

16. PollutionKeyMan
other coverages to consider.
Professional
Liability
Kidnap&
Ransom

17. •Definition of an insured contract
•Additional insured status must be in writing
•Additional Insured Completed Operations
•Waiver of Subrogation
•Primary & Non-contributory
•Certificates of Insurance
 Laws pertaining to issuance
 Tracking and monitoring certificates
•30 day notice of cancellation
Contracts.

18. what’s next?
Decide where you are on the scale…
(cost) (correct)

19. • Involvement
• Responsiveness
• Risk Management
• Guidance
• A Trusted Advisor…. Not a salesperson
• You are driving the bus
the cost to you is 12%
What should you expect?

20. questions?

21. Get Social with GEB: @GEBInc
contact.
www.gillis.com
Betsy Clement
(504) 619-5074
bclement@gillis.com