2018 Power Broker

Entertainment

Eagle-Eye View on Insurance

Berj Basralian
Account Executive
Risk Strategies/DeWitt Stern, New York

It’s no surprise drones would eventually find their way into the entertainment business.

“There’s this wave of drones,” said Lindsay Vetter, senior business affairs manager, VSA Partners Inc. “One of our productions decided to use footage from a drone, but I didn’t have the time to look it all over.”

Vetter turned to her trusted broker, Berj Basralian, who “researched the applications needed for the drones so that the production could have this footage like they wanted.”

Basralian’s work to get production covered will last longer than one production, too.

“We do the same thing every year. We know what we’re doing,” said Vetter. “The vendor changed it up and wanted to use a drone but didn’t want to invest in the coverage. Now it’s in place because of Berj, and every year we are ready to go.”

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Kristy Coleman, senior manager, risk management, Turner Broadcasting System, also turned to Basralian when she needed aircraft coverage. In addition to cast coverage for a popular prank show, they needed insurance to fly one of their talents in a fighter jet.

Later, they needed to insure a tank. Its purpose? To blow up a jeep.

“All of this was coming in piecemeal to the team, because production and the network would come up with new ideas. We needed to have the right insurance, all carriers on board, no exclusions,” Coleman said.

“It was filmed during a two-day event and went off without a hitch. Berj is always available; he never lets me down.”

Covering Every Angle

Konrad Dowling
Area Managing Director
Gallagher, Glendale, Calif.

Michelle Nishikawa, director, physical production, STX Entertainment, describes Konrad Dowling as a workhorse.

“I’m not sure when he takes a break. He has such an attention for details — we probably talk at least twice a day. I can see that he doesn’t ever want to leave me in the lurch.”

STX was filming abroad. The director and producer wanted to use a helicopter to scout for the next day’s shoots but needed the insurance coverage to do so.

“Generally, you want a week to 10 days to plan something like that, but unfortunately the call came in quickly,” Nishikawa said. She contacted Dowling, and it was handled in no time.

Another client said Dowling anticipates every question before they’re even asked. He’s always reviewing forms to see where his clients might be exposed.

For example, the client was deep into a production that had been in the works for a few years. It was filming abroad, and it required reshoots and extra takes after initial production wrapped.

Dowling sat with the team and discussed where they were vulnerable during their long shoot. He negotiated with insurers for the extra months of production at nearly a fraction of what it normally costs.

But that wasn’t all; his client said he was on top of everything. This particular project required animals sourced from France, housed in the U.S., then sent on location for filming. Dowling negotiated contracts for each country’s market and kept the animals properly cared for throughout the duration of filming.

Every Game Day’s MVP

Rebecca Hollis, ARM, CPCU
Vice President
Aon, Atlanta

Rebecca Hollis is in tune with the markets, according to her clients.

One client recently decided to engage with brand new markets, trusting in the value that Hollis brings to the company. Hollis orchestrated all meetings, talked on behalf of the company, researched each market to see they met the company’s needs and gave detailed insight on how the markets were different.

Hollis excels in paying attention, said the client. She knows the company’s program down to the last endorsement.

Christine Procops, senior vice president and CFO, the New York Football Giants, echoed that praise in Hollis’s attention to detail.

“She’s my go-to for all things insurance. The business is constantly evolving, and our insurance requirements and the complexity of our program have grown over recent years.”

Procops said Hollis comes through in the clutch at renewal every year. She praises Hollis as reliable and committed.

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“I’m the CFO of our team, so I am not dealing with insurance every day. Rebecca helps to keep the Giants educated on the market and new issues that may impact us, not to mention the difficult task of keeping me on track with renewals,” she said.

Procops said a 24/7 approach makes Hollis stand out: “We don’t have normal business hours. Rebecca understands our business and how we run. How many other vendors give out their cell phone numbers and then pick up when you call them on vacation?”

No Task Too Big or Too Small

Lorrie McNaught
Senior Vice President
Aon, Sherman Oaks, Calif.

No matter the scale of a task, Lorrie McNaught’s clients know she’ll get the job done.

One client said McNaught isn’t fazed by the volume, type or scale of a production — she’s always prepared for the task at hand.

“I can count on her as a resource,” added Margaret Morales, director of production management, Bunim Murray Productions.

Morales had an overseas production that added a last-minute stunt. She needed a 48-hour turnaround for permissions and insurance coverage. After speaking with the underwriters, McNaught had everything ready to go, said Morales.

Another client of McNaught’s works with a variety of reality shows. They have covered everything from wildlife to home life. With such a broad array of topics, McNaught is always on call.

When the company had to film on location for one of its reality shows, they sent an indemnification form to McNaught to double-check if they had broad-form property damage coverage in their policy. Shooting couldn’t begin without an answer. McNaught responded within 20 minutes, a company executive said.

The client said that it’s times like this, when McNaught can get back to them on-the-spot with an answer, that show how hard-working and knowledgeable she is.

Sometimes it’s big, and sometimes it’s small scale, the client said. To them, McNaught is a true insurance professional.

Weathering Any Storm

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

Kelly Todd, line producer, Dumplin Holdings Inc., said Gallagher’s Daniel R’bibo is always available, day or night.

Todd’s company was filming in Georgia when Hurricane Irma hit. Because R’bibo understood the production side, Todd knew R’bibo would be a reliable source for her insurance-related questions while preparing for the storm.

“After Hurricane Irma, Daniel visited set. He advised us that the best rule of thumb was to mitigate any claims that we could have,” she said.

When the company was closing the bond for production, R’bibo put many documents together quickly in order to close out the production process on time, Todd said. He helped identify what was covered and advised them on how to proceed post-claim in order to mitigate any extra expenses.

Another client described R’bibo as a go-getter.

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The client was working on a back-to-back filming project with a huge budget. Due to the size, the production needed more aggressive limits for the films’ unique exposures.

Additionally, the actors involved in the production wanted to work on other projects during filming, which brought outside production companies into the coverage mix.

R’bibo worked to ensure that no special exclusions were placed on the actors while they worked on other projects, and the client said R’bibo checked off everything on his list; filming went ahead as scheduled.

One Step Ahead

George Walden
Resident Managing Director
Aon, New York

Knowing how to head off potential risk is just one way Aon’s George Walden demonstrates his expertise.

“A lot of money is spent on creating new content,” said Gregory L. Goetz, VP risk management, insurance, enterprise risk management, Scripps Networks Interactive. The entertainment industry assumes risk developing new content ideas and a variety of exposures can arise while content is being produced.

“As people in this industry know, a variety of risk events can occur during content production, which can affect the ultimate profitability of that content.”

Walden and Goetz have regular discussions to prepare for any such events. Together, they designed various methods to transfer risk to insurance carriers or arrange other alternative funding methods.

Another client said Walden has grown with the times and keeps them current on certain coverages like cyber security and transmission.

Walden was described as an extremely responsive and educated broker by a third client. She saw him as an advocate — someone who thinks about the company from her perspective — and an advisor — someone who can be objective when a situation calls for it.

“George is very demanding of his team and customer service is a very high priority,” said Goetz. Walden works to have a fast turnaround and strives to present helpful information, he said.

More from Risk & Insurance

More from Risk & Insurance

Risk Scenario

The Betrayal of Elizabeth

In this Risk Scenario, Risk & Insurance explores what might happen in the event a telemedicine or similar home health visit violates a patient's privacy. What consequences await when a young girl's tele visit goes viral?
By: | October 12, 2020
Risk Scenarios are created by Risk & Insurance editors along with leading industry partners. The hypothetical, yet realistic stories, showcase emerging risks that can result in significant losses if not properly addressed.

Disclaimer: The events depicted in this scenario are fictitious. Any similarity to any corporation or person, living or dead, is merely coincidental.

PART ONE: CRACKS IN THE FOUNDATION

Elizabeth Cunningham seemingly had it all. The daughter of two well-established professionals — her father was a personal injury attorney, her mother, also an attorney, had her own estate planning practice — she grew up in a house in Maryland horse country with lots of love and the financial security that can iron out at least some of life’s problems.

Tall, good-looking and talented, Elizabeth was moving through her junior year at the University of Pennsylvania in seemingly good order; check that, very good order, by all appearances.

Her pre-med grades were outstanding. Despite the heavy load of her course work, she’d even managed to place in the Penn Relays in the mile, in the spring of her sophomore season, in May of 2019.

But the winter of 2019/2020 brought challenges, challenges that festered below the surface, known only to her and a couple of close friends.

First came betrayal at the hands of her boyfriend, Tom, right around Thanksgiving. She saw a message pop up on his phone from Rebecca, a young woman she thought was their friend. As it turned out, Rebecca and Tom had been intimate together, and both seemed game to do it again.

Reeling, her holiday mood shattered and her relationship with Tom fractured, Elizabeth was beset by deep feelings of anxiety. As the winter gray became more dense and forbidding, the anxiety grew.

Fed up, she broke up with Tom just after Christmas. What looked like a promising start to 2020 now didn’t feel as joyous.

Right around the end of the year, she plucked a copy of her father’s New York Times from the table in his study. A budding physician, her eyes were drawn to a piece about an outbreak of a highly contagious virus in Wuhan, China.

“Sounds dreadful,” she said to herself.

Within three months, anxiety gnawed at Elizabeth daily as she sat cloistered in her family’s house in Bel Air, Maryland.

It didn’t help matters that her brother, Billy, a high school senior and a constant thorn in her side, was cloistered with her.

She felt like she was suffocating.

One night in early May, feeling shutdown and unable to bring herself to tell her parents about her true condition, Elizabeth reached out to her family physician for help.

Dr. Johnson had been Elizabeth’s doctor for a number of years and, being from a small town, Elizabeth had grown up and gone to school with Dr. Johnson’s son Evan. In fact, back in high school, Evan had asked Elizabeth out once. Not interested, Elizabeth had declined Evan’s advances and did not give this a second thought.

Dr. Johnson’s practice had recently been acquired by a Virginia-based hospital system, Medwell, so when Elizabeth called the office, she was first patched through to Medwell’s receptionist/scheduling service. Within 30 minutes, an online Telehealth consult had been arranged for her to speak directly with Dr. Johnson.

Due to the pandemic, Dr. Johnson called from the office in her home. The doctor was kind. She was practiced.

“So can you tell me what’s going on?” she said.

Elizabeth took a deep breath. She tried to fight what was happening. But she could not. Tears started streaming down her face.

“It’s just… It’s just…” she managed to stammer.

The doctor waited patiently. “It’s okay,” she said. “Just take your time.”

Elizabeth took a deep breath. “It’s like I can’t manage my own mind anymore. It’s nonstop. It won’t turn off…”

More tears streamed down her face.

Patiently, with compassion, the doctor walked Elizabeth through what she might be experiencing. The doctor recommended a follow-up with Medwell’s psychology department.

“Okay,” Elizabeth said, some semblance of relief passing through her.

Unbeknownst to Dr. Johnson, her office door had not been completely closed. During the telehealth call, Evan stopped by his mother’s office to ask her a question. Before knocking he overheard Elizabeth talking and decided to listen in.

PART TWO: BETRAYAL

As Elizabeth was finding the courage to open up to Dr. Johnson about her psychological condition, Evan was recording her with his smartphone through a crack in the doorway.

Spurred by who knows what — his attraction to her, his irritation at being rejected, the idleness of the COVID quarantine — it really didn’t matter. Evan posted his recording of Elizabeth to his Instagram feed.

#CantManageMyMind, #CrazyGirl, #HelpMeDoctorImBeautiful is just some of what followed.

Elizabeth and Evan were both well-liked and very well connected on social media. The posts, shares and reactions that followed Evan’s digital betrayal numbered in the hundreds. Each one of them a knife into the already troubled soul of Elizabeth Cunningham.

By noon of the following day, her well-connected father unleashed the dogs of war.

Rand Davis, the risk manager for the Medwell Health System, a 15-hospital health care company based in Alexandria, Virginia was just finishing lunch when he got a call from the company’s general counsel, Emily Vittorio.

“Yes?” Rand said. He and Emily were accustomed to being quick and blunt with each other. They didn’t have time for much else.

“I just picked up a notice of intent to sue from a personal injury attorney in Bel Air, Maryland. It seems his daughter was in a teleconference with one of our docs. She was experiencing anxiety, the daughter that is. The doctor’s son recorded the call and posted it to social media.”

“Great. Thanks, kid,” Rand said.

“His attorneys want to initiate a discovery dialogue on Monday,” Emily said.

It was Thursday. Rand’s dreams of slipping onto his fishing boat over the weekend evaporated, just like that. He closed his eyes and tilted his face up to the heavens.

Wasn’t it enough that he and the other members of the C-suite fought tooth and nail to keep thousands of people safe and treat them during the COVID-crisis?

He’d watched the explosion in the use of telemedicine with a mixture of awe and alarm. On the one hand, they were saving lives. On the other hand, they were opening themselves to exposures under the Health Insurance Portability and Accountability Act. He just knew it.

He and his colleagues tried to do the right thing. But what they were doing, overwhelmed as they were, was simply not enough.

PART THREE: FALLING DOMINOES

Within the space of two weeks, the torture suffered by Elizabeth Cunningham grew into a class action against Medwell.

In addition to the violation of her privacy, the investigation by Mr. Cunningham’s attorneys revealed the following:

Medwell’s telemedicine component, as needed and well-intended as it was, lacked a viable informed consent protocol.

The consultation with Elizabeth, and as it turned out, hundreds of additional patients in Maryland, Pennsylvania and West Virginia, violated telemedicine regulations in all three states.

Numerous practitioners in the system took part in teleconferences with patients in states in which they were not credentialed to provide that service.

Even if Evan hadn’t cracked open Dr. Johnson’s door and surreptitiously recorded her conversation with Elizabeth, the Medwell telehealth system was found to be insecure — yet another violation of HIPAA.

The amount sought in the class action was $100 million. In an era of social inflation, with jury awards that were once unthinkable becoming commonplace, Medwell was standing squarely in the crosshairs of a liability jury decision that was going to devour entire towers of its insurance program.

Adding another layer of certain pain to the equation was that the case would be heard in Baltimore, a jurisdiction where plaintiffs’ attorneys tended to dance out of courtrooms with millions in their pockets.

That fall, Rand sat with his broker on a call with a specialty insurer, talking about renewals of the group’s general liability, cyber and professional liability programs.

“Yeah, we were kind of hoping to keep the increases on all three at less than 25%,” the broker said breezily.

There was a long silence from the underwriters at the other end of the phone.

“To be honest, we’re borderline about being able to offer you any cover at all,” one of the lead underwriters said.

Rand just sat silently and waited for another shoe to drop.

“Well, what can you do?” the broker said, with hope draining from his voice.

The conversation that followed would propel Rand and his broker on the difficult, next to impossible path of trying to find coverage, with general liability underwriters in full retreat, professional liability underwriters looking for double digit increases and cyber underwriters asking very pointed questions about the health system’s risk management.

Elizabeth, a strong young woman with a good support network, would eventually recover from the damage done to her.

Medwell’s relationships with the insurance markets looked like it almost never would. &

Bar-Lessons-Learned---Partner's-Content-V1b

Risk & Insurance® partnered with Allied World to produce this scenario. Below are Allied World’s recommendations on how to prevent the losses presented in the scenario. This perspective is not an editorial opinion of Risk & Insurance.®.

The use of telehealth has exponentially accelerated with the advent of COVID-19. Few health care providers were prepared for this shift. Health care organizations should confirm that Telehealth coverage is included in their Medical Professional, General Liability and Cyber policies, and to what extent. Concerns around Telehealth focus on HIPAA compliance and the internal policies in place to meet the federal and state standards and best practices for privacy and quality care. As states open businesses and the crisis abates, will pre-COVID-19 telehealth policies and regulations once again be enforced?

Risk Management Considerations:

The same ethical and standard of care issues around caring for patients face-to-face in an office apply in telehealth settings:

  • maintain a strong patient-physician relationship;
  • protect patient privacy; and
  • seek the best possible outcome.

Telehealth can create challenges around “informed consent.” It is critical to inform patients of the potential benefits and risks of telehealth (including privacy and security), ensure the use of HIPAA compliant platforms and make sure there is a good level of understanding of the scope of telehealth. Providers must be aware of the regulatory and licensure requirements in the state where the patient is located, as well as those of the state in which they are licensed.

A professional and private environment should be maintained for patient privacy and confidentiality. Best practices must be in place and followed. Medical professionals who engage in telehealth should be fully trained in operating the technology. Patients must also be instructed in its use and provided instructions on what to do if there are technical difficulties.

This case study is for illustrative purposes only and is not intended to be a summary of, and does not in any way vary, the actual coverage available to a policyholder under any insurance policy. Actual coverage for specific claims will be determined by the actual policy language and will be based on the specific facts and circumstances of the claim. Consult your insurance advisors or legal counsel for guidance on your organization’s policies and coverage matters and other issues specific to your organization.

This information is provided as a general overview for agents and brokers. Coverage will be underwritten by an insurance subsidiary of Allied World Assurance Company Holdings, Ltd, a Fairfax company (“Allied World”). Such subsidiaries currently carry an A.M. Best rating of “A” (Excellent), a Moody’s rating of “A3” (Good) and a Standard & Poor’s rating of “A-” (Strong), as applicable. Coverage is offered only through licensed agents and brokers. Actual coverage may vary and is subject to policy language as issued. Coverage may not be available in all jurisdictions. Risk management services are provided or arranged through AWAC Services Company, a member company of Allied World. © 2020 Allied World Assurance Company Holdings, Ltd. All rights reserved.




Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]