21 Sep Insurance risk workshop

Traditional Risk Workshops: Insurance Risk

The Insurance Risk Workshop will focus on the transfer of risk in contractual agreements.

Insurance Risk Management is a critical way in which individuals and commercial entities transfer the risk of loss or payment to a third party.  As revealed in the lecture slides, there are a great deal of insurance products and the slides consider both the buyer of these products and the insurance providers.  This workshop will focus on using contracts to protect your business; specifically, certificates of insurance, hold harmless and indemnification agreements.

Some concepts applicable to information provided in this workshop:

Template outline:

This workshop is designed to provide a more immersive experience than lecture to understand how each of the traditional risk functions contribute to a robust ERM program. The purpose of each workshop is to provide a self-study guide to learn more about each risk discipline. The fifth of these workshops deals with Insurance Risk. The lecture slides and attached files are only the beginning of your research. You are required to explore the topic further to determine how to apply the separate risk disciplines in ways that lead to appropriate responses to adverse events or untapped opportunities. Each workshop will be scenario-based and you must apply your reading and research to develop an appropriate response to the adverse event.

Summary

Certificates of insurance, hold harmless and indemnification agreements are a complex subject; we have only scratched the surface. It is intended to highlight the pitfalls of operating without written agreements, signing agreements without a legal review, or using poorly written agreements.

Instructions:

1.      Please read:

The whitepaper – certificates of insurance, hold harmless & indemnification agreements

·         (https://www.societyinsurance.com/assets/1/AssetManager/WhitePaper-CertificatesHoldHarmlessIndemnification.pdf)

2.      Please provide answers to the following five (5) questions and submit via Canvas 

(to be submitted INDIVIDUALLY).

1)      Explain how and when a business should use a certificate of insurance?

2)      Explain the liability limits in certificates of insurance?

3)      Explain how “Additional Insureds” are used in contracts to protect a business?

4)      Explain the dangers and benefits of Hold Harmless and Indemnification in contractual agreements?

3.      Please provide an answer to the following question for LVMH company (research and find resources by yourself) and submit via Canvas (to be submitted along with your individual assignment)

1)      Large and small organizations use a variety of contractors and 3^rd party providers in the course of conducting business. Using the examples provided in the case study and supporting documentation to describe the steps LVMH company should consider prior to doing business with contractors and 3^rd party providers?

4.      • Propose a project plan for implementing an ERM Framework to improve risk management at LVMH company. (research and find resources by yourself)

1. Decide if you need a risk technology platform to aggregate enterprise risks across LVMH company. If not, explain how you will manage aggregation manually?