Risk & Insurance for AESA Members From USI Insurance Services November 2018 Ed Fugo| Cam Schilling | Max Monbouquette www.usi.com

What Makes USI Different? Today’s Agenda Introductions About USI Introducing the OMNI | Audit | Learning Experience Business Insurance Solutions AESA Cyber Insurance Program SERRC Case Study Next Steps © 2014-2017 USI Insurance Services. All rights reserved

USI Brings Material Value to AESA USI’s AESA Team Dedicated team of professionals Average tenure 20 years Connected with colleagues in 140 US offices Specialties aligned with the needs of ESAs Wide array of technical resources, including claims, safety, and analytics Resources to help improve employee health by changing behaviors Ongoing commitment of time and investment in hundreds of non-profit organizations #1 privately-held broker in the US USI Office Locations          Commercial P&C Employee Benefits Personal Risk

What Makes USI Different? USI ONE ADVANTAGE ® Our Long Term Risk Management Strategy Omni – proprietary analytical tool--Knowledge engine derived from more than 100,000 clients, thousands of professionals and over 100 years of doing business at USI through our acquired agencies – united within one real-time, proprietary, interactive platform. Network---Local technical expertise networked nationally with over 4,000 professionals nationwide to build integrated client centered teams. Enterprise: Strategic Planning - Integrated client centered teams in structured round table breadth, depth, dollar solutions development using proprietary knowledge engine customized for each client USI ONE Advantage - output | 4 © 2014-2017 USI Insurance Services. All rights reserved

Professional Liability Employment Practices Liability Property & Casualty Offerings Protecting Assets by Addressing Perils Associated with Education Professional Liability Business Income Cyber Workers Compensation Property D&O Liability General Liability Employment Practices Liability Auto Inland Marine Risk Control Umbrella Earthquake & Flood Claims Advocacy Risk Analytics

1 OMNI 2 Audit 3 Learning Experience USI’s Process for Delivering Solutions for AESA Members 1 OMNI Proprietary knowledge engine Data analytics and proven solutions 2 Audit Insurance program review for coverage gap and cost savings analysis 3 Learning Experience Analyze and share key findings with you Enhanced coverage results with focus on savings

USI ONE® OMNI Knowledge Engine™ Real-time knowledge base Captures experience and expertise of thousands of professionals Reflects lessons from 100 years of meeting the needs of more than 100,000 clients Proprietary analytics Actionable solutions engine Timely updates Measurable financial impact © 2014-2017 USI Insurance Services. All rights reserved © 2014-2017 USI Insurance Services. All rights reserved

USI ONE® Let Us Show You How It Works Data Entry USI enters specific data into OMNI engine including industry, region, revenues, and employee total Premium Analytics The OMNI engine uses data to compare to similar USI clients in order to develop conceptual premium by line Coverage Line Selection USI representatives select specific coverage lines to evaluate solutions and financial impact © 2014-2017 USI Insurance Services. All rights reserved © 2014-2017 USI Insurance Services. All rights reserved

USI ONE® Let Us Show You How It Works Proven Solutions USI can review a number of proven solutions by line of coverage Cost Savings Each solution has a cost savings analysis completed for financial impact Case Study and Information Each solution has relevant case studies, learning material, and additional information helpful to understanding the impact of the solution © 2014-2017 USI Insurance Services. All rights reserved © 2014-2017 USI Insurance Services. All rights reserved

USI ONE® Let Us Show You How It Works Potential Savings Report Provides estimated premium savings for a solution by solution basis Coverage Exposure includes adjusted exposure report for solutions that impact potential exposure Actionable Solutions with Real impact USI uses these values as a benchmark when marketing clients’ insurance programs © 2014-2017 USI Insurance Services. All rights reserved © 2014-2017 USI Insurance Services. All rights reserved

A Comprehensive, Holistic Review of Your Property & Casualty Program USI Program Audit & Review Deep Analysis of Current Program USI completes thorough review of current policies Coverage Improvement USI specialists look for areas of coverage improvement both in terms of limits, coverage grants, and exclusions Focus on Total Cost of Risk USI provides analysis of where rates can be reduced and coverage gaps can be narrowed to reduce fixed and variable costs Yes, No, N/A boxes for each coverage item General comments for each applicable section Coverage line by coverage line audit of potential gaps Cumulative review comments, concerns, suggestions, etc. at end of audit form A Comprehensive, Holistic Review of Your Property & Casualty Program

Perceived Coverage Gap USI Solution Associated Risk Level USI Learning Experience Process Perceived Coverage Gap USI Solution Associated Risk Level Financial Impact A Learning Experience allowing AESA members to see the value in the review of their program

Cyber Risk in Education

Cyber and Privacy Risk Exposures in the Education Sector Posting of Private Documents Online Ransomware and Cyber Extortion Unauthorized Access or Release of Information Lost Laptops, Smart Phones, Thumb Drives Data Destruction by Insider (rogue employee) Cyber Incident Map (as of August 31st, 2018)

What does a COMPLETE Cyber and Privacy Risk Policy Address?  Network Security/Privacy Liability Media Liability Breach Response Crisis Management Data Restoration Cyber Extortion Business Interruption, including Contingent Regulatory Defense, including Fines & Penalties PCI, including Fines & Penalties Cyber Crime, including Social Engineering Various Pre and Post Breach Services © 2014-2017 USI Insurance Services. All rights reserved

Cyber Insurance Program for AESA Members We heard you! USI built a cyber insurance program for AESA members and the school districts you serve. Our AESA Cyber Insurance program includes: Free Penetration Test and Vulnerability Scan of current environment Best in-class coverage at below market rates Suite of Cybersecurity services (DDoS mitigation, Ransomware Prevention, etc.) Ongoing credential monitoring Team of former intelligence officers as breach coaches

AESA Cyber Insurance Program Penetration Test Benchmark security ranking Recommendations for improvement List of compromised emails List of detected vulnerabilities

AESA Cyber Insurance Program Coverage Highlights AESA Cyber Program Others

AESA Cyber Insurance Program Cybersecurity Services The entirety of the services come free to policyholders and are initiated by our insurance carrier

Lack of understanding about threats Cyber 2018 5 Reasons entities don’t buy? Common Cyber cover misconceptions: Lack of understanding about threats Misguided belief that they aren’t a target Assume cost of Cyber or Privacy Insurance is too high But I’m immune/have governmental immunity! I have 3rd party IT vendor(s) and they will address the response and cost need in case of an incident. Bonus Reason: IT has it all covered – all the time

Sheryl Weinberg from Southeast Regional Resource Center SERRC Case Study Sheryl Weinberg from Southeast Regional Resource Center Sheryl Weinberg is the Executive Director of SERRC and a member of the AESA Executive Council USI gave an Educational Entity Cyber Insurance Presentation in Juneau for Superintendents of School Districts SERRC services USI performed the OMNI Audit Learning Experience with Sheryl on SERRC’s Property & Casualty Program

OMNI Audit Learning Experience? Next Steps What are the steps for the OMNI Audit Learning Experience? Step 1: Contact USI for initial discussion Step 2: Send electronic copies of complete insurance policies Step 3: Schedule meeting to discuss results A Lasting Partnership With USI © 2014-2017 USI Insurance Services. All rights reserved

A Lasting Partnership With USI Questions? THANK YOU! A Lasting Partnership With USI © 2014-2017 USI Insurance Services. All rights reserved