Requirements: Each student will select a firm for examination of business risks and produce a risk assessment report. This report will then be the basis for deciding on insurance strategy/requirements. Research may be done on the internet or via interviews with firms. The final project will include the risk assessment and written analysis of insurance strategy. It is expected that additional time out of class will be required for successful completion of the project.
Completed Project Components
Firm Selection: The firm (company) selected for review must have significant commercial property, commercial general liability, and workers compensation exposures at minimum. Domestic U.S. firms are preferable as this course concentrates on the domestic commercial insurance market and standard policy forms.
Risk Assessment: Each student will perform a risk assessment to identify their firms most significant commercial business exposures. A baseline of 8-10 exposures can be used as a gauge and each exposure should include a narrative description of the exposure, potential negative consequences, and qualitative evaluation of both likelihood (frequency) and potential impact (severity). At least one exposure each that can be insured via workers compensation, general liability, and property insurance are required. Tabular or heat mapping of risk encouraged, but not required.
Insurance Strategy: Each exposure should be categorized as either insurable (wholly or partially) or uninsurable risk. An overall strategy and list of commercial insurance policies to be utilized for insurable risks should be provided in the form of a written report (estimate 3-4 pages). Key exclusions to those policies, with concentration on those exclusions most relevant to the firms operations, should be identified with commentary on risk treatment outside of insurance (e.g. risk transfer, risk finance, mitigation, avoidance).
