miscellaneous e&o: a profession by any other name moderator: karen a. callanan, director,...
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Miscellaneous E&O: A Miscellaneous E&O: A Profession By Any Other NameProfession By Any Other Name
• MODERATORMODERATOR: : Karen A. CallananKaren A. Callanan, ,
Director, Program UnderwritingDirector, Program Underwriting
Aspen Specialty Insurance CompanyAspen Specialty Insurance Company
• Gretchen Sayers, Gretchen Sayers, Claims Manager Claims Manager
Specialty Global Insurance ServicesSpecialty Global Insurance Services
• Nicholas Taube, Nicholas Taube, Vice President,Vice President,
Professional Liability DivisionProfessional Liability Division
Maxum Specialty Insurance GroupMaxum Specialty Insurance Group
CASE STUDY 1ABC Consulting
• Fifteen year old New England regional consulting firm
• Annual revenue is $7 million
• 20 professional consultants and 35 support staff
ABC Consulting, Services Offered
• 80% of Revenue is from general business management consulting, including: HR Consulting Marketing/ Fundraising Consulting Process Management Consulting
ABC Consulting, Services Offered Cont’d.
• 20% of Revenue comes from specialized consulting for 1 client, a public company, on securities laws and regulations compliance
ABC ConsultingClients
Three Largest Clients are:
1. Well established world renowned privately held biotech Co.
2. Prestigious World Renowned Private University
3. Relatively U/K publicly traded Co., has been traded on NASDAQ
for 2 years.
ABC Consulting, Claims History
• One claim five years ago, University hired ABC to develop and implement a 3-year, $30 million capital campaign. ABC represented the campaign would raise 90% of stated goal but it ended at 30% less than goal . University sued, claim settled for $15K after $250K spent on defense.
CASE STUDY 2Glassblowers, Inc.
• 50-year old family run business specializes in designing and installing customized specialty decorative glass walls and partitions for use in high-end office buildings, airports and museums.
• For 30 years and now, 30% of revenue from 1 nationally recognized company
• Other revenue from 20 companies, 10 of them are non-US companies.
Glassblowers, Inc. Cont’d
• Junior, grandson of founder and newly graduated from top engineering school, wants the co. to begin designing bullet proof glass for military vehicles deployed to Mid-East. Grandfather said ok IF Jr. can obtain a $5 million E&O policy for new venture.
Glassblowers, Inc.Cont’d.
• Largest Client is the Nationally recognized client of 30 years
• No other client represents more than 10% of company’s total annual revenue.
• No Claims in past 30 years.
CASE STUDY 3 Overseer, Inc.
• 2-year old consulting firm, specializes in providing general oversight of large governmental construction projects.
• Clients expect them to minimize fraud and waste by major contractors on a project.
• Ensures that funding is distributed as planned and compliance with regs.
Overseer, Inc. Cont’d.
• Overseer staff is 4 attorneys and 3 accountants
• Each project has a project manager unrelated to Overseer, Inc.
• Overseer does not monitor day to day construction activity
• No Claims to date.
Overseer Inc. Clients
• Massachusetts Turnpike Authority – Boston Big Dig Project
• Minnesota Bridge Authority – Repairs to recently collapsed Minneapolis Bridge
• New Orleans Levy Authority – Rebuilding Levies
Panelist Contacts
• Karen Callanan [email protected]
• Nick Taube
• Gretchen Sayers [email protected]