riskandinsurance.com Open in urlscan Pro
2a06:98c1:3121::3  Public Scan

Form analysis
1 forms found in the DOM

GET https://riskandinsurance.com

<form class="search-form" method="get" action="https://riskandinsurance.com" role="search" autocomplete="off">
  <div class="search-wrapper ">
    <div class="input-holder">
      <input type="search" name="s" class="search-input" value="" placeholder="Search">
      <span class="search-help">Type your search term above</span>
      <!---->
    </div>
    <!--<span class="close search-toggle"></span>-->
    <div class="result-container">
    </div>
  </div>
</form>

Text Content

118
 * 
 * 
 * 

 * Sections
   * Critical Risks
   * Risk Management
   * The Insurance Industry
   * Claims & The Law
   * Workers’ Comp Forum
   * Risk Insiders
   * Sector Focus
   * .
   * Risk Central
   * Power Broker
   * Risk Matrix
   * Risk Scenarios
   * Risk All Stars
   * Teddy Award
   * Sponsored Content
   * Branded Webinars
 * Magazine
   * Digital Issue
   * Issue Archive
   * Subscribe
 * Conferences
   * Ergo
   * National Comp
 * Advertise
 * Subscribe
 * More
   * Award Applications
   * Newsletters
   * &BrandStudio
   * Privacy Policy
   * About R&I
   * Contact Us
   * Media Kit


 * Trending Stories
 * National Comp
 * Power Broker
 * Workers’ Comp Forum
 * Risk Matrix
 * Risk Central
 * The Profession

 * Sections
   * Critical Risks
   * Risk Management
   * The Insurance Industry
   * Claims & The Law
   * Workers’ Comp Forum
   * Risk Insiders
   * Sector Focus
   * .
   * Risk Central
   * Power Broker
   * Risk Matrix
   * Risk Scenarios
   * Risk All Stars
   * Teddy Award
   * Sponsored Content
   * Branded Webinars
 * Magazine
   * Digital Issue
   * Issue Archive
   * Subscribe
 * Conferences
   * Ergo
   * National Comp
 * Advertise
 * Subscribe
 * More
   * Award Applications
   * Newsletters
   * &BrandStudio
   * Privacy Policy
   * About R&I
   * Contact Us
   * Media Kit

NEWSLETTERS

The best of R&I and around the web, handpicked by our editors.

SIGN UP.

RISK CENTRAL

White papers, service directory and conferences for the R&I community.

GO TO RISK CENTRAL.

DIGITAL EDITION

Web replica of the print magazine.

VIEW DIGITAL EDITION.

Type your search term above

 * 
 * 
 * 
 * 





IT PAYS TO BE PROACTIVE. HOW PAUL BOATMAN’S REPLICA COVERAGE STRATEGY ENSURED
CONSTRUCTION PROJECT SUCCESS

Paul Boatman worked to ensure that a high-end construction job's coverage would
remain intact, despite incurring significant damage.
By: Alex Wright | July 25, 2022
Topics: July/Aug. 2022 Issue | Risk All Stars



Prometheus Real Estate Group’s construction projects often involved multiple
buildings or phases.

With each building or phase starting at different times, that added to the
complexity of finding coverage for the company, which specializes in high-end
multiple family properties.

For strategic purposes, cover was placed per project rather than by building or
phase.

When a project incurred significant damage, the part of the building that was
yet to be constructed would most likely be subject to increased construction and
inflation costs.

The problem was that in the event of a large loss, those associated increased
expenses weren’t covered under a traditional builder’s risk policy because, in
effect, there had been no physical damage to the unbuilt property.

This could prove expensive with the uncovered risk’s cost around $5 million to
$15 million per project.

Enter Paul Boatman, vice president of risk management at Prometheus. To address
the problem, Boatman approached a reinsurer and his broker to develop replica
coverage.

This involved providing them with detailed project information including
construction design, scheduling, safety and loss history and control measures.
Using that, they created a model that applied a monthly inflation factor per
project for the unbuilt portion.

Boatman also had to gain the trust of the reinsurance company and get it
comfortable with the risk.

He did this by working closely with his point of contact, holding several
face-to-face meetings and phone calls.

“I was extremely proactive in assessing the initial risk involved in these
projects,” said Boatman.

“The main concern was that if there was a major loss we wouldn’t be covered
under a traditional builder’s risk policy because of all these additional
expenses such as rising construction costs and inflation.”

As a result, over a four-year period, they developed a hybrid
indemnity/parametric solution with the reinsurer, Swiss Re, that, in the event
of a significant event where at least 20% of the property’s value was lost due
to physical damage, would pay up to a pre-agreed amount to offset the
inflationary cost of the unbuilt part of the project, according to a pre-defined
schedule.

The amount reflected the coverage need at the various stages of the project.

To gain an economy of scale, the solution, which was presented to and approved
by Prometheus’ president, CEO and CFO, was implemented for a pipeline of eight
projects.

According to Swiss Re, this was the first solution of its kind that it had
developed for the construction industry in collaboration with its insured and
broker.

“Paul worked directly with the market to try and create a ‘ghost inflation’
product which effectively allowed us to bridge the exposure if there was a major
loss,” said Dan Emerson, Prometheus’ senior vice president of construction.

“He effectively orchestrated, built and developed that product, which we put in
place across the eight properties we were building at the time.” &

--------------------------------------------------------------------------------

Every year, Risk & Insurance selects deserving candidates to become Risk All
Stars. These are risk managers who, through their perseverance, passion and
creativity, make a big difference to the stability of their organizations.

See all the 2022 Risk All Star Winners here.

Alex Wright is a UK-based business journalist, who previously was deputy
business editor at The Royal Gazette in Bermuda. You can reach him at
riskletters@theinstitutes.org.





SHARE THIS ARTICLE!

Click to Copy
Share
Tweet
Share


TRENDING STORIES

MAKING THE IMPOSSIBLE POSSIBLE: INTRODUCING THE 2023 POWER BROKERS

February 27, 2023

WEAKNESSES IN YOUR CYBERATTACK RESILIENCE PLANS? IT MIGHT BE TIME FOR A TABLETOP
EXERCISE

March 1, 2023

WHEN IT COMES TO E&S UNDERWRITING, DATA MAY BE A KING, BUT THE HUMAN TOUCH IS
THE QUEEN

November 18, 2022

THE INS AND OUTS OF FERTILITY BENEFITS: HOW EMPLOYERS CAN ATTRACT TALENT AND
STRENGTHEN EMPLOYEE RELATIONSHIPS

August 19, 2022


MORE FROM RISK & INSURANCE




LEGAL ROUNDUP: FORD SETTLES FALSE ADVERTISING CASE, WALGREENS/CVS OPIOID SUIT
UPDATE AND MORE

A $10 billion settlement has been reached between Walgreens & CVS and several
U.S. states in the latest opioid crisis lawsuit.


6 COMMON MISTAKES TO AVOID IF YOU WANT TO MAXIMIZE YOUR CYBER INSURANCE CLAIM
RECOVERY

Despite the ever-rising prevalence of cyberattacks, the field of cyber insurance
is still relatively new and evolving. Do you know, then, what's inside your
policy?


AS MASS LAYOFFS SURGE, SO TOO DO REACTIVE WORKERS’ COMP CLAIMS. HOW
ORGANIZATIONS CAN ASSESS THIS RISK

One-third of companies estimate they will lay off 30% or more of their workforce
next year. Here's why workers' comp leaders need to be a part of those
decisions.

Sponsored Content by QBE North America


TECHNOLOGICAL ADVANCES ARE A BOON FOR FARMERS, SO LONG AS THEY HAVE THE RIGHT
INSURANCE PARTNER

Innovative tools are helping farmers manage the unpredictability of both extreme
and routine weather events.



Go to Homepage >

SPONSORED CONTENT BY QBE NORTH AMERICA



IN TODAY’S POLARIZED CULTURE, COMPANIES MUST HAVE CLEAR POLICIES FOR EMPLOYEE
SPEECH TO AVOID REPUTATIONAL DAMAGE AND EPL CLAIMS

Employees are engaging in more forms of political speech. The right carrier can
help you minimize the risks that arise.
By: QBE North America | March 1, 2023

Over the past few years, more and more employers have encouraged employees to
bring their whole selves to work.

The age of social media has encouraged increased sharing of all aspects of our
lives, and its effects have trickled into the workplace. Employees who once
eschewed discussions of politics or cultural issues in the office might now
share photos from a protest they attended or wear a T-shirt with a political
slogan. Others might more readily share personal details about their families or
their children.

With this increased openness, however, comes increased employment practices
liability (EPL) risk. Employees who are terminated for inappropriate workplace
communication or violating a company’s social media policy may sue, alleging
racial, gender or religious discrimination.

“There was a time when EPL was only catastrophic insurance, and now it has
evolved into everyday response insurance,” said Mary Anne Mullin, SVP, fiduciary
and EPL product leader, QBE.

“I think it’s incumbent upon us to be aware of what is going on in the world
because it filters down to the workplace, where it can result in exposure under
our policies, and to our employer insureds.”

Over the past few years, a number of lawsuits have illustrated the greater risks
of today’s increasingly political and polarized workforces. Some employees may
misunderstand what types of speech their private employers can and cannot limit,
resulting in lawsuits that may be unfounded.

Employers can protect themselves by educating their employees on company
policies and consistently applying any rules they have about what is and is not
appropriate communication.


RECENT EPL CASES: WHAT’S DRIVING THEM? HOW CAN THEY HELP EMPLOYERS UNDERSTAND
CURRENT EXPOSURES?

Mary Anne Mullin, SVP, Fiduciary and EPL Product Leader, QBE

Employees often believe that the first amendment protects their right to say
whatever they want inside or outside the workplace, though that is a
misconception.

The first amendment only protects people from the government encroaching on
their right to express their views. Private employers may create policies
governing employee code of conduct, including limitations on what types of
communication are appropriate for their workplace and their employees.

“There is no blanket right to free speech in the private workplace,” said Kristi
Garrett, VP, associate general counsel, QBE.

“Employers may generally terminate ‘at will’ employees, for example, for
expressing certain views inside or even outside the traditional workplace
environment. In an age of social media, using that power has become very
complicated. Even views expressed by someone outside of work and having nothing
to do with work can become an issue because expression outside of the workplace
may have employment-related consequences.”

Still, there are some forms of speech that are protected in the workplace.
Individual states may have laws protecting certain forms of communication, like
social media posts, for instance. Under the Federal National Labor Relations
Act, employees cannot be terminated for discussing working conditions, wages and
union organizing. Title VII protects workers from being terminated or
disciplined after making claims of discrimination in the workplace.

When an employee sues their employer, they will often allege racial, religious
or other forms of discrimination. In the case Carter v. Transp. Workers Union of
Am. Local 556, flight attendant Charlene Carter sued Southwest Airlines and the
union she was a part of after being fired over anti-abortion Facebook posts and
messages she sent to the union’s president, according to the Associated Press.
Carter believed union dues had been used to help other Southwest flight
attendants attend the Women’s March, which supported abortion.

A jury initially awarded her $5.1 million, saying the company discriminated
against her sincerely held religious beliefs, though Mullin and Garrett say that
award has since been reduced and litigation remains ongoing.

“She’s an abortion opponent and she wrote strong emails expressing her
displeasure,” Mullin said. “The company was ordered to reinstate her.”

Still, just because an employee claims discrimination doesn’t mean the courts
will agree. Whether the court system sides with the business or the worker
depends on a variety of factors, including how consistently a company’s policy
is enforced.

Take the recent case Kinzer et al v. Whole Foods Market Inc. as an example.
Three former Whole Foods employees sued the company, alleging they were
illegally fired for donning Black Lives Matter masks during the pandemic in
violation of the company’s dress code.

Because the company had a dress code policy that prohibited employees from
wearing attire with any logo other than the one belonging to Whole Foods, the
judge ruled in favor of the employer.

“It didn’t matter if it was Black Lives Matter, a political slogan or even a
sports team logo, you weren’t allowed to wear anything other than Whole
Foods-branded attire,” Mullin said. “Whole Foods had a very clear dress code
policy.”


HOW EMPLOYERS CAN PROTECT THEMSELVES FROM EPL RISKS

Kristi Garrett, VP, Associate General Counsel, QBE

Though there are many new entrants in the management liability insurance space
and rates remain stable, from a carrier perspective, one of the most valuable
things a risk manager can do is develop a strategy for preventing EPL claims.

Clearly communicating policies, enforcing them consistently and making sure the
company is in compliance with shifting laws are just a few strategies for
staying ahead of EPL risks.

“As the EPL insurer, we must pay for the cost of defending the claim regardless
of liability. So, the key is preventing the lawsuit in the first place,” Garrett
said.

Human resources departments should make sure they’re up to date on shifting
state and federal regulations and state laws. This is especially important for
businesses with locations in California, which tend to be litigation-heavy.

“A large California presence could possibly increase your exposure,” Mullin
said.

Consistency is also key. All policies limiting any form of speech need to be
enforced equally among employees, otherwise a worker may be able to claim
discrimination. Going back to the Kinzer et al v. Whole Foods Market Inc. case,
part of the reason Whole Foods came out victorious was because they were able to
prove they enforced their no-logo policy consistently.

“If, through the discovery process, the plaintiffs had been able to prove that
that policy was enforced on an erratic basis or against some groups of people
more than others, then they might have been able to prove disparate or
discriminatory treatment,” Mullin explained.


CHOOSING STRONG EPL RISK PARTNERS

With EPL case law and legislation shifting, often on a state-by-state basis,
it’s important for insureds to retain the right insurance carrier.

QBE partners with an employment practices law firm to provide a number of risk
management services to help prevent EPL claims and support insureds when a loss
occurs. For instance, the firm can review employment manuals to see if they are
up to date and provide employment-related training. They also operate a hotline
where employers can call in with questions. “An insured can ask a particular
question that they just need a quick answer to, hoping to nip a potential
problem in the bud,” Mullin said.

“EPL laws are constantly changing,” Mullin said. Having a strong insurance
partner is critical, especially for small to midsize companies, which may not
have the internal resources to create and update guidelines and policies.
Insurers have found that even large companies with well-resourced HR teams can
appreciate having a second set of eyes on critical documents.

Both QBE’s underwriters and claims professionals have extensive expertise on EPL
exposures. Many have law degrees, and the teams work together to draft policy
language. When a claim occurs, the QBE team tries to approach litigation from
the client’s perspective rather than pressuring for a settlement or trial.

“Both teams look at all the policies when we renew, and when we rewrite a
policy. That way, the claims professionals are not saying one thing while the
underwriters are saying a different thing to our clients.”

Most importantly, they remain abreast of current litigation and trending EPL
risks so that they can continue to act as a risk management partner for their
insureds.

“The world never stops changing. That means employers and insurers must adapt,”
Mullin said. “We have to keep up so that we can best serve our clients.”

To learn more, visit: https://www.qbe.com/us/qbefinancial.





This article was produced by the R&I Brand Studio, a unit of the advertising
department of Risk & Insurance, in collaboration with QBE North America. The
editorial staff of Risk & Insurance had no role in its preparation.

QBE North America is a global insurance leader focused on helping customers
solve unique risks, so they can focus on their future. QBE operates out of 27
countries around the globe, with a presence in every key insurance market. QBE
insurance companies are rated "A" (Excellent) by A.M. Best and "A+" by Standard
& Poor's.







SHARE THIS ARTICLE!

Click to Copy
Share
Tweet
Share


MORE FROM RISK & INSURANCE




FROM UNDERGRADUATE TO UNDERWRITER: FOUR EXPERTS SHARE THEIR STRATEGIES FOR
WIDENING THE RISK AND INSURANCE TALENT PIPELINE

Each year brings news of risk management and insurance programs launching at
colleges and universities of every tier. But to get students from classrooms to
careers in risk and insurance, faculty, recruiters and employers have their work
cut out for them.


LOOKING TO FURTHER REDUCE YOUR WORKER INJURIES? TAKE A REAL HARD LOOK AT
FIRST-YEAR EMPLOYEES

New employees are disproportionately likely to sustain an injury on the job, so
extra care and attention during their first year on the job can produce an
outsized impact.


INSURING THE CLIMATE TRANSITION: 3 WAYS SEVERE WEATHER IS INCREASING
ENVIRONMENTAL AND POLLUTION LIABILITY

Increasingly frequent and strong storms are ramping up pollution and
environmental liability risks. Is your company covered?


7 CONSTRUCTION AND ENVIRONMENTAL LIABILITY COVERAGE TRENDS AS IDENTIFIED BY RT
SPECIALTY

Demand for construction and environmental professional liability products is
expected to rise this year as construction activity rebounds from the impact of
the COVID-19 pandemic.



Go to Homepage >

RISK MATRIX: PRESENTED BY LIBERTY MUTUAL INSURANCE



11 WAYS INFLATION AND ECONOMIC VOLATILITY ARE INFLUENCING INSURANCE IN 2023

With inflation rising, every line of insurance must stay on top of its impact
and what that means for business moving into the new year.
By: R&I Editorial Team | February 1, 2023


The R&I Editorial Team can be reached at riskletters@theinstitutes.org.





SHARE THIS ARTICLE!

Click to Copy
Share
Tweet
Share


TRENDING STORIES

MAKING THE IMPOSSIBLE POSSIBLE: INTRODUCING THE 2023 POWER BROKERS

February 27, 2023

WEAKNESSES IN YOUR CYBERATTACK RESILIENCE PLANS? IT MIGHT BE TIME FOR A TABLETOP
EXERCISE

March 1, 2023

WHEN IT COMES TO E&S UNDERWRITING, DATA MAY BE A KING, BUT THE HUMAN TOUCH IS
THE QUEEN

November 18, 2022
Sponsored: AXA XL

5 FACTORS DRIVING RISING RISK COSTS FOR BUSINESSES. HOW TECHNOLOGY AND A STRONG
CARRIER PARTNER CAN HELP

March 1, 2023