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2017 Power Broker

Entertainment

Setting the Bar for Brokers

Seth Cohen, ARM, CPCU
Vice President
HUB, Encino, Calif.

No project is too challenging for Seth Cohen and his team to insure, as his clients can attest to.

“One of our clients was producing the ‘Heaven Sent’ jump, in which Luke Aikins jumped out of a plane at 25,000 feet without a parachute or a wing suit. The only thing catching him was a net the size of a football field,” said Marcia Jacobson, president, The Jacobson Group.

“We were not covering Luke, but cameramen who were perched on a ledge on the side of a mountain and sound guys located on the ground. There was concern for their safety, and it was a potential workers’ comp nightmare. Seth, as usual, was able to make the coverage work for our client and the jump went off without a hitch.”

Another client, the producer of a television series, described how Cohen worked through ongoing negotiations with insurers after an injury to an actor caused setbacks in the schedule. Coverage had to be adjusted last-minute, and Cohen figured out the most cost-effective way to make the changes and get all of the necessary coverage in place.

“He’s set the bar for other brokers I work with as well. And those other brokers often don’t meet the expectations that I have because of Seth,” the producer said.
Casey Spira, executive in charge, Irwin Entertainment, said the time and care that Cohen and his team take with each client is not commonly found.

“They’re available 24/7, and that’s not something you can get with everyone,” Spira said.

Minimizing Risk to Enable Growth

John Galanis, ARM
Account Executive
Aon, New York

John Galanis spent time in both the Los Angeles and the New York offices of Aon subsidiary Albert G. Ruben Insurance Services. He’s worked on everything from television and film to magazine publishing and advertising. As a result, he can create solutions best suited to each unique scenario that arises.

Christine Busch, senior risk manager for the Hearst Corp., said, “I have thrown multiple projects at him over the past year and he is always quick to respond, quick to provide quotes, and great with explaining, following up, and getting the job done. We have had odd situations come up that have involved unusual locations, stunts or race cars, and nothing seems to faze John. He listens and then goes out to the market to find creative solutions.”

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“It’s a very last-minute, seat-of-the-pants industry,” said Nancy Perkins, director, insurance risk management at AOL, which started to create more original content in-house in 2016. “John and his team worked with me as our program grew from a small package policy to more of a production program that a larger size company would need.”

Similarly, Danielle Zubriksi, director of business affairs for advertising agency 22Squared, said, “John’s knowledge and willingness to talk me through insurance concerns has been key to our growth. He has been instrumental in helping my agency — a small, independent shop — institute production wrap-up policies that were previously only available to holding company agencies.”

A True Client Advocate

Robert Jellen
Managing Director
HUB, Encino, Calif.

For a recent movie production, HUB’s Robert Jellen recognized that the mere threat of bad weather could halt filming for days at a time, so he arranged for a policy enhancement that covered delays in production due to a threat of damage, even if no physical damage was sustained.

The enhancement proved critical. The movie lost production time due to threat of lightning on 27 days, resulting in a claim in excess of $1 million.

For Steve Burkow, a partner with Ziffren Brittenham LLP, Jellen came through with a life insurance policy that helped to seal an endorsement deal.

“We were working with an advertiser that wanted life insurance for the client, but was concerned about privacy. Bob created a structure under which the client could take over the policy on favorable terms. He does this consistently — advocates for the client to find a solution that works for everyone and either adds value or saves costs.”

Peter Oillataguerre, executive in charge of production for MGM Studios, said Jellen will answer a phone call at any time of day.

“We’ve had more than a few conversations at extremely inappropriate hours and he has always accommodated me,” he said.

“His knowledge of the industry is unparalleled. I’ve been working in this industry for 20 years and have had the pleasure of working with several different brokers, and Bob has more industry knowledge than anyone I’ve come across.”

Keeping Coverage on Pace with Production

Daniel R’bibo, ARM
Area Senior Vice President
Arthur J. Gallagher, Glendale, Calif.

Daniel R’bibo can conjure up innovative solutions in no time flat.

“As a production company, things are always changing. We don’t need him once a year for renewal; we need his services 50 times a year,” said Gretchen Stockdale, COO and general counsel for Pilgrim Media Group. “It’s important for him to really know our business and form relationships in the industry.”

“Daniel knows all the key players and is aware of all the different approaches that we need to take on each project,” said Ellen Schwartz, head of production at Black Label Media.

The insurance needs of each project are highly dependent on the actors involved and the production locations, and schedules are always subject to change.

“He was amazing in helping us come up with creative solutions for obtaining insurance on a movie with an actor who was also committed to another project at the time,” which made his travel and schedule hectic and presented coverage challenges, Schwartz said.

R’bibo sometimes acts as an educator to other brokers. Stockdale described one project in which a co-producing company was receiving inaccurate information from their broker, and R’bibo stepped in to get everyone on the same page and move the project forward.

On another show involving more than two dozen stunts, R’bibo proactively involved the loss control team and created a streamlined process for submitting information on each stunt first to loss control and then to the carrier, which expedited clearance of the stunts and made the carrier more comfortable providing coverage.

Behind the Scenes of the Big Game

Amy Walters, ARM
Senior Vice President
Marsh, San Francisco

Amy Walters knows that insuring a high-profile event like the Super Bowl means planning for every contingency and then some.

John Mitchell, COO at Future Fires and a member of the Super Bowl 50 Host Committee in San Francisco, said, “Amy and her team helped the Host Committee understand the risks involved in producing an event that saw more than a million visitors in 9 days. It was also taking place right around a number of unrelated national and international security incidents that made us want to make sure we were totally prepared.”

Danielle DeLancey, chief of staff for the San Francisco Super Bowl 50 Host Committee, also cited the challenges in creating “Super Bowl City” — a free-to-the-public, open access area in downtown San Francisco created to celebrate the big game.

“Insurers were either declining coverage or offering quotes beyond the budget,” she said. “Amy and her team worked tirelessly over the holiday season with their underwriters across the globe to secure coverage for our events. The result was a successful, safe event.”

A host committee member for a different Super Bowl echoed Mitchell’s and DeLancey’s sentiments. In need of event cancellation insurance, he turned to Walters to get carriers, the bank requiring the insurance, and a state reimbursement program on the same page.

“Amy and her team negotiated unique terms, communicated to underwriters the uniqueness of our event and our funding, and got insurance bound without delaying our loan closing,” he said.

Blazing His Own Trail

Paul Jones
Director
Aon, Sherman Oaks, Calif.

A production company client of Paul Jones was concerned that it would not receive a sizable tax credit it relied on to help fund its budget. Jones and his team with Aon subsidiary Albert G. Ruben Insurance Services set out to build a product that insured 85 percent of the multimillion dollar credit if the state couldn’t pay.

While difficult to bring together — the policy required several carriers to get on board even after a few rejections —the new product removed a lot of guesswork over the final budget and provided much needed peace of mind.

Kevin Drozdowski, vice president, treasury and risk management, AMC Networks, also relies on Jones for more than standard production coverage.

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“In addition to covering our production needs, he also places all of our cyber and events coverage. If I could use him for all of my insurance needs, I would. He’s the best broker I’ve worked with and I’ve worked with all the major brokerage houses.

“On a scale of one to 10, I’d rate his customer service a 15 and his industry knowledge a 20,” said the risk manager of another major production company. “He comes up with out-of-the-box solutions — not the expected standard policy — to handle complex problems.”

Kumi Maemura, director, production, BBC Worldwide Productions, also lauded Jones for his availability and quick responses, as well as his ability to put himself in his clients’ shoes.

“He brings creative ways to make sure we have the coverage we need for the exposure while being conscious of what we want to get on camera.”

Finalists:

Lorrie McNaught
Senior Vice President, Aon/Albert G. Ruben Insurance Services
Sherman Oaks, Calif.

George Walden
Resident Managing Director, Aon/ Albert G. Ruben Insurance Services
New York

More from Risk & Insurance

More from Risk & Insurance

Cyber Resilience

No, Seriously. You Need a Comprehensive Cyber Incident Response Plan Before It’s Too Late.

Awareness of cyber risk is increasing, but some companies may be neglecting to prepare adequate response plans that could save them millions. 
By: | June 1, 2018 • 7 min read

To minimize the financial and reputational damage from a cyber attack, it is absolutely critical that businesses have a cyber incident response plan.

“Sadly, not all yet do,” said David Legassick, head of life sciences, tech and cyber, CNA Hardy.

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In the event of a breach, a company must be able to quickly identify and contain the problem, assess the level of impact, communicate internally and externally, recover where possible any lost data or functionality needed to resume business operations and act quickly to manage potential reputational risk.

This can only be achieved with help from the right external experts and the design and practice of a well-honed internal response.

The first step a company must take, said Legassick, is to understand its cyber exposures through asset identification, classification, risk assessment and protection measures, both technological and human.

According to Raf Sanchez, international breach response manager, Beazley, cyber-response plans should be flexible and applicable to a wide range of incidents, “not just a list of consecutive steps.”

They also should bring together key stakeholders and specify end goals.

Jason J. Hogg, CEO, Aon Cyber Solutions

With bad actors becoming increasingly sophisticated and often acting in groups, attack vectors can hit companies from multiple angles simultaneously, meaning a holistic approach is essential, agreed Jason J. Hogg, CEO, Aon Cyber Solutions.

“Collaboration is key — you have to take silos down and work in a cross-functional manner.”

This means assembling a response team including individuals from IT, legal, operations, risk management, HR, finance and the board — each of whom must be well drilled in their responsibilities in the event of a breach.

“You can’t pick your players on the day of the game,” said Hogg. “Response times are critical, so speed and timing are of the essence. You should also have a very clear communication plan to keep the CEO and board of directors informed of recommended courses of action and timing expectations.”

People on the incident response team must have sufficient technical skills and access to critical third parties to be able to make decisions and move to contain incidents fast. Knowledge of the company’s data and network topology is also key, said Legassick.

“Perhaps most important of all,” he added, “is to capture in detail how, when, where and why an incident occurred so there is a feedback loop that ensures each threat makes the cyber defense stronger.”

Cyber insurance can play a key role by providing a range of experts such as forensic analysts to help manage a cyber breach quickly and effectively (as well as PR and legal help). However, the learning process should begin before a breach occurs.

Practice Makes Perfect

“Any incident response plan is only as strong as the practice that goes into it,” explained Mike Peters, vice president, IT, RIMS — who also conducts stress testing through his firm Sentinel Cyber Defense Advisors.

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Unless companies have an ethical hacker or certified information security officer on board who can conduct sophisticated simulated attacks, Peters recommended they hire third-party experts to test their networks for weaknesses, remediate these issues and retest again for vulnerabilities that haven’t been patched or have newly appeared.

“You need to plan for every type of threat that’s out there,” he added.

Hogg agreed that bringing third parties in to conduct tests brings “fresh thinking, best practice and cross-pollination of learnings from testing plans across a multitude of industries and enterprises.”

“Collaboration is key — you have to take silos down and work in a cross-functional manner.” — Jason J. Hogg, CEO, Aon Cyber Solutions

Legassick added that companies should test their plans at least annually, updating procedures whenever there is a significant change in business activity, technology or location.

“As companies expand, cyber security is not always front of mind, but new operations and territories all expose a company to new risks.”

For smaller companies that might not have the resources or the expertise to develop an internal cyber response plan from whole cloth, some carriers offer their own cyber risk resources online.

Evan Fenaroli, an underwriting product manager with the Philadelphia Insurance Companies (PHLY), said his company hosts an eRiskHub, which gives PHLY clients a place to start looking for cyber event response answers.

That includes access to a pool of attorneys who can guide company executives in creating a plan.

“It’s something at the highest level that needs to be a priority,” Fenaroli said. For those just getting started, Fenaroli provided a checklist for consideration:

  • Purchase cyber insurance, read the policy and understand its notice requirements.
  • Work with an attorney to develop a cyber event response plan that you can customize to your business.
  • Identify stakeholders within the company who will own the plan and its execution.
  • Find outside forensics experts that the company can call in an emergency.
  • Identify a public relations expert who can be called in the case of an event that could be leaked to the press or otherwise become newsworthy.

“When all of these things fall into place, the outcome is far better in that there isn’t a panic,” said Fenaroli, who, like others, recommends the plan be tested at least annually.

Cyber’s Physical Threat

With the digital and physical worlds converging due to the rise of the Internet of Things, Hogg reminded companies: “You can’t just test in the virtual world — testing physical end-point security is critical too.”

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How that testing is communicated to underwriters should also be a key focus, said Rich DePiero, head of cyber, North America, Swiss Re Corporate Solutions.

Don’t just report on what went well; it’s far more believable for an underwriter to hear what didn’t go well, he said.

“If I hear a client say it is perfect and then I look at some of the results of the responses to breaches last year, there is a disconnect. Help us understand what you learned and what you worked out. You want things to fail during these incident response tests, because that is how we learn,” he explained.

“Bringing in these outside firms, detailing what they learned and defining roles and responsibilities in the event of an incident is really the best practice, and we are seeing more and more companies do that.”

Support from the Board

Good cyber protection is built around a combination of process, technology, learning and people. While not every cyber incident needs to be reported to the boardroom, senior management has a key role in creating a culture of planning and risk awareness.

David Legassick, head of life sciences, tech and cyber, CNA Hardy

“Cyber is a boardroom risk. If it is not taken seriously at boardroom level, you are more than likely to suffer a network breach,” Legassick said.

However, getting board buy-in or buy-in from the C-suite is not always easy.

“C-suite executives often put off testing crisis plans as they get in the way of the day job. The irony here is obvious given how disruptive an incident can be,” said Sanchez.

“The C-suite must demonstrate its support for incident response planning and that it expects staff at all levels of the organization to play their part in recovering from serious incidents.”

“What these people need from the board is support,” said Jill Salmon, New York-based vice president, head of cyber/tech/MPL, Berkshire Hathaway Specialty Insurance.

“I don’t know that the information security folks are looking for direction from the board as much as they are looking for support from a resources standpoint and a visibility standpoint.

“They’ve got to be aware of what they need and they need to have the money to be able to build it up to that level,” she said.

Without that support, according to Legassick, failure to empower and encourage the IT team to manage cyber threats holistically through integration with the rest of the organization, particularly risk managers, becomes a common mistake.

He also warned that “blame culture” can prevent staff from escalating problems to management in a timely manner.

Collaboration and Communication

Given that cyber incident response truly is a team effort, it is therefore essential that a culture of collaboration, preparation and practice is embedded from the top down.

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One of the biggest tripping points for companies — and an area that has done the most damage from a reputational perspective — is in how quickly and effectively the company communicates to the public in the aftermath of a cyber event.

Salmon said of all the cyber incident response plans she has seen, the companies that have impressed her most are those that have written mock press releases and rehearsed how they are going to respond to the media in the aftermath of an event.

“We have seen so many companies trip up in that regard,” she said. “There have been examples of companies taking too long and then not explaining why it took them so long. It’s like any other crisis — the way that you are communicating it to the public is really important.” &

Antony Ireland is a London-based financial journalist. He can be reached at [email protected] Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]