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Practical and entertaining education for
attorneys, accountants, business owners and
executives, and investors.

Disclaimer
The material in this webinar is for informational purposes only. It should not be considered
legal, financial or other professional advice. You should consult with an attorney or other
appropriate professional to determine what may be best for your individual needs. While
Financial Poise™ takes reasonable steps to ensure that information it publishes is accurate,
Financial Poise™ makes no guaranty in this regard.
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Meet the Faculty
MODERATOR:
Eric Hampton - Rudolph Kaplan LLC
PANELISTS:
David Hallstrom - Willis Towers Watson
Lee Lazar - Associated Agencies, Inc.
Harvey Topitz - Rivers Insurance Group
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About This Series –
Insurance for the Business Owner 101
There’s one type of contract that virtually every business in the United States enters into each
and every year: their insurance contract(s). Despite being bound by and paying (sometimes
handsomely) for these contracts, they’re not always well understood by the business.
Questions as fundamental as what risks should be insured (v. self-insured or mitigated via
contract) and for how much or what losses will actually be covered and at what value are
simply not commonly understood. This Financial Poise webinar series teaches business
owners, executives and their trusted advisors, what they should know about their property &
casualty insurance so they understand how best to protect their assets and people in the
most cost effective manner.
Each Financial Poise Webinar is delivered in Plain English, understandable to investors, business owners, and
executives without much background in these areas, yet is of primary value to attorneys, accountants, and other
seasoned professionals. Each episode brings you into engaging, sometimes humorous, conversations designed to
entertain as it teaches. Each episode in the series is designed to be viewed independently of the other episodes so that
participants will enhance their knowledge of this area whether they attend one, some, or all episodes.
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About This Webinar –
Property/Business Interruption and Cyber Liability
This panel discusses key elements of a property policy such as what coverages could be
essential to your business, i.e., Business Income, Contingent Property, and Professional Services
(and you don’t need to be in the Professional Services business to get value from this coverage),
an explanation of co-insurance v. agreed value, and different valuations like replacement cost v.
cash value as well as proper valuation of assets
We’ll also discuss Cyber Liability coverage, why it’s so important to so many more businesses
than one might think and what could be important considerations for a policy since each policy
varies from carrier to carrier. We’ll look at topics like protecting inventory with a “street value,”
“Are you the insured?”, carrying a “foreign exchange” risk with your cyber policy, “Who’s going to
obtain crypto currency to pay a ransom?”, “Do you have a potential bodily injury risk?”, and “Do
you need business income coverage?”
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Episodes in this Series
#1: Understanding Risk Management Basics for Business Owners
Premiere date: 6/23/21
#2: Property/Business Interruption and Cyber Liability
Premiere date: 7/21/21
#3: General Liability, Umbrella/Excess Coverage, Commercial Auto, Workers’ Compensation
Premiere date: 8/18/21
#4: Executive Protection – Directors’ & Officers’, Employment Practices Liability,
Crime/Employee Dishonesty & Professional Liability
Premiere date: 9/29/21
#5: Personal Lines for the Business Owner/Executive
Premiere date: 11/10/21
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Episode #2
Property/Business Interruption and Cyber Liability
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Insurance Coverages Crucial to your Business
✓ Contingent Property
✓ Professional liability
o Professional Indemnity
o Errors & Omissions
✓ Business Interruption
o Loss of income after disaster
✓ Cyber Liability
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Co-Insurance vs. Agreed Value
✓ Coinsurance – percentage value of property policyholder will cover if there is a
claim for damage
✓ Agreed Value – optional coverage in which property value that insured and
insurer agree upon at beginning of policy period

Valuation of Assets
✓ Absolute Valuation (intrinsic value) - discounted cash flow analysis.
✓ Relative Valuation – a company's value compared to its competitors or industry
peers
✓ Cost v. Cash

Protecting Inventory with “Street Value”
✓ Business Property Insurance
o Covers losses caused by fires, explosions, theft, vandalism, and damage
from vehicles
o Items insured: building, office equipment, inventory, and outdoor items on the
property
✓ Endorsements
o Additional coverage added to provide additional protection

Items Business Property Insurance Might Insure
✓ The property
✓ Office equipment (computers, phone systems, and furniture)
✓ Accounting records and important business documents
✓ Manufacturing or processing equipment
✓ Inventory
✓ Fence and landscaping
✓ Signs and satellite dishes

Property Insurance Coverage
✓ Replacement Cost
o Amount necessary to repair, replace, or rebuild property on the same
premises, with comparable materials and quality
✓ Actual Cash Value
o Cost to replace with new property of similar style and quality

Commercial General Liability Insurance
✓ Usually covers the costs of legal defense and will pay all damages—up to the
policy limits
o Property damage, personal injury, and advertising injury
✓ Do you have a potential bodily injury risk?
o Bodily injury coverage – protection against losses from the legal liability of
insureds for bodily injury resulting from negligent acts or liability from
premises or business operations.

Do You Need Business Income Insurance Coverage?
✓ Covers a company's loss of income due to a slowdown or temporary suspension
of operations, from damage to its physical property
✓ May also be extended to apply to loss suffered after completion of repairs for
certain period of time

Are you the Insured? Who is the Insured?
✓ Parties:
1. First Named Insured
2. Insured
3. Additional Insured

Cyber Liability Insurance
✓ What is it?
✓ Why is it important?
o Is it important for all types of businesses?

Cyber Liability Insurance (cont’d)
✓ Important considerations for each policy
o Coverage of needs for your business
o How much coverage does your business need?
o How policies vary from carrier to carrier

Cyber Insurance Coverage
Cyber Insurance covers liability for data breaches involving sensitive customer
information:
✓ Social Security numbers
✓ Credit card numbers
✓ Account numbers
✓ Driver's license number
✓ Health records

Cyber Insurance Coverage (cont’d)
Besides legal fees and expenses, cyber insurance typically handles:
o Notifying customers about a data breach
o Restoring personal identities of affected customers
o Recovering compromised data
o Repairing damaged computer systems
o Forensic investigations
o Litigation expenses
o Regulatory defense expenses/fines
o Crisis management expenses
o Business interruption
o Cyber extortion

Cyber Insurance Coverage: Pros and Cons
✓ Pros:
o Data breach coverage
o Business interruption reimbursement
o Legal support
o Cyber extortion coverage (if included in policy)
✓ Cons:
o Possible inadequate coverage
o Can get expensive
o May not offer global coverage

Does my Business Need Cyber Insurance?
✓ Phishing schemes, cyber threats, and attacks on the rise
✓ The value of good cybersecurity is high and growing, even more so in finance,
health care, and other fields where the risks and costs of attacks are high
✓ Balance cost and need against the benefits.

Where Can I Purchase Cyber Insurance?
✓ Do I approach purchasing cyber insurance the same way as other business
insurance?
✓ Does each policy provide for global coverage?
✓ Are there qualifications for a company to provide cyber insurance to a business?

Cyber Policy – Ransomware Risks
✓ Some cyber insurance policies exclude extortion coverage and payment
coverage.
✓ Ransomware attack
o Is your business prepared?
▪ Cryptocurrency payment may take more time than expected
▪ Consider having payment arrangements pre-established in your cyber
incident response plan
▪ Prior arrangements can speed up and expedite recovery
▪ If issuing payment, ensure compliance with US Treasury Department’s
Office of Foreign Assets Control (OFAC) or other regulatory guidance
related to ransomware payments

Cyber Policy – Ransomware Risks (cont’d)
✓ Notify your insurance provider
✓ A cryptocurrency transaction consists of a payer sending funds to a payee
✓ Either party is only identified by an account number or address
✓ To purchase and send bitcoin, payers use either a bitcoin wallet or bitcoin ATM

Remote Working Challenges with Cyber Liability
✓ Data-security protocols of office computers
o Secure network/VPN (avoid public internet)
o Work only on office computers
o Encrypt data in emails
✓ Create a data breach response plan

Remote Working Challenges of Business Insurance
✓ Employer’s liability for employees working remote
✓ Coverage for remote business assets
✓ Business property damage
✓ Are there mental health obligations?

About the Faculty
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About The Faculty
Eric Hampton, Rudolph Kaplan, LLC – ehampton@rudolphkaplan.com
Eric is an associate attorney with Rudolph Kaplan, LLC and focuses his practice on commercial
and residential real estate transactional matters; real estate disputes involving condominium
associations, unit owners, developers, and contractors; and related litigation matters. Eric has
experience representing a variety of entities in all stages of commercial litigation and construction
law cases. Eric received his Bachelor of Arts degree from Kansas State University in 2014. Eric
earned his Juris Doctorate degree from The University of Iowa College of Law in 2018, where he
was a writer on the Journal of Corporation Law, worked on estate planning matters in The
University of Iowa Clinical Law Program, and worked as a research assistant. During the summer
following his second year of law school, Eric worked as a summer associate at a boutique
corporate restructuring law firm in Chicago. Eric is admitted to practice law in the State of Illinois
and the Northern District of Illinois.
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About The Faculty
David Hallstrom, Willis Towers Watson –
David.Hallstrom@willistowerswatson.com
David is a Senior Risk Placement Specialist in the FINEX Cyber and Technology practice. David has
more than 25 years’ experience building successful technology E&O, professional liability and cyber
insurance books of business at the carrier, broker, wholesale and MGA level. David consults companies
across varied industries on Cyber, Media and Tech E&O risk. David works with clients to determine their
renewal strategy, the placement of insurance programs and provides client service throughout the course
of the year.
Immediately prior to joining Willis Towers Watson, David worked for Symantec Corporation, on the
development of risk control tools for the cyber insurance market. David served for eight years as
Assistant Vice President, Cyber Line of Business Leader for CNA Financial Corporation, where he was
responsible for worldwide Cyber underwriting strategy, appetite and profitability. David has previously
served in leadership roles at Risk Placement Services, Zurich North America, and Aon.
David earned his B.A. in English from the University of Alabama and his M.A in English from the
University of Iowa.
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About The Faculty
Lee Lazar, Associated Agencies, Inc. – llazar@associated.cc
Lee is a Vice President at Associated Insurance and Risk Management Advisors.
He has been in the insurance industry for twelve years and focuses on Cyber and
health care technology business. Lee earned an MBA in financial analysis from
DePaul University and once worked at the largest Macintosh computer lab on the
planet. He brings these experiences to bear on behalf of his clients to translate
between the languages of finance, technology, and insurance.
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About The Faculty
Harvey Topitz, Rivers Insurance Group – htopitz@ri-gi.com
Harvey is the founder and principal of Rivers Insurance Group. Harvey is a graduate of City University of
New York with a Bachelor of Science degree in economics/accounting. He is a non-practicing NYS Certified
Public Accountant. Harvey has more than 39 years of experience in the insurance industry, placing property
casualty insurance for all industries and specializing in providing coverage for those businesses hardest to
insure. He began his insurance career at Liberty Mutual, where he was awarded Top Producers designation
and was a member of the prestigious Millionaires Club.At BRI Insurance Brokerage he introduced innovating
programs such as an asbestos abatement contractor’s program.While with Tanenbaum Harber, now
Alliant/T&H Brokers, he excelled in the hard-to-insure employee leasing industry (PEO) and the
entertainment sector insuring celebrities like EMINEM and 50 Cent. Harvey founded Rivers Insurance Group
in 2005. Harvey saw a void in the difficult to place coverage area for companies that were in distress or
working through a Chapter 11 Reorganization. Trustees, Bankruptcy Lawyers and Turnaround professionals
know that Topitz and his team at Rivers Insurance can get the coverage that most brokers run away from. He
has been on the Board of Directors of the New Jersey Turnaround Management Association for almost 10
years and is known as the Go-To Insurance Guru.
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Questions or Comments?
If you have any questions about this webinar that you did not get to ask during the live
premiere, or if you are watching this webinar On Demand, please do not hesitate to email us
at info@financialpoise.com with any questions or comments you may have. Please include
the name of the webinar in your email and we will do our best to provide a timely response.
IMPORTANT NOTE: The material in this presentation is for general educational purposes
only. It has been prepared primarily for attorneys and accountants for use in the pursuit of
their continuing legal education and continuing professional education.
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About Financial Poise
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