Brokers and Agents Meet at Annual San Diego

“Terrorism isn’t just simply killing people or injuring people… it’s creating chaos,” said Bob Captain of Barney & Barney.

Captain discussed terrorism and how it has and will continue to affect the insurance industry at the 2002 San Diego “I” Day Conference, hosted by IBA San Diego. His presentation, “The Cost of Terrorism Insurance,” prepared by the Sandi Kruise Insurance Agency, delved into the numerous types of claims insurers experienced as a result of the Sept. 11 attacks.

Among the different types of claims were property, including buildings and contents, business interruption, electronic data processing, valuable papers and records (Captain offers this suggestion: “Keep duplicate records off the premises.”), aviation, including property and liability, disability income, including both physical and mental, life, health, workers’ compensation, and professional liability.

Captain further discussed the changes the insurance industry can expect to see in the future. As we have already seen, the cost of insurance has and will increase as underwriting becomes more strict. Reinsurance has become more difficult to obtain, as new exclusions and provisions limit coverage for terrorist attacks.

Finally, Captain noted America’s preparedness in the event of another terrorist attack. At present time, hospitals and health care providers are under-staffed, while the Center for Diseases Control and Prevention reports not having enough vaccines in the event of a bio-terrorist attack. Training, adequate supplies, and preparation are key to avoiding another catastrophe like Sept. 11.

Chris Christian, senior vice president of London American General Agency, presented “EPL” Basics, and covered everything from what should be included in an EPL policy, to who agents can effectively deal with their clients.

Christian reviewed the exposures that employers are at risk for, including wrongful termination, discrimination, sexual harassment, and retaliation. Those four exposures constitute the minimum coverage that employers should seek, along with omnibus wording, which should include “any other protected class” in a policy’s discrimination definition.

EPL is currently seeing a contraction in the market due to developing loss results. Prices are doubling and retention increasing while coverage remains broad. But most importantly, EPL remains to be a necessary coverage as legal liability rapidly expands.

Topics Catastrophe Agencies