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 karen.callanan@aspenspecialty.com

• Nick Taube

ntaube@mxmsig.com

• Gretchen Sayers gsayers@specialtyglobal.com