1. FOR PROFESSIONAL USE ONLY. Not for use with the general public. © 2016 M&T Insurance Agency, Inc. All rights reserved. Risk Management Insurance Considerations Erie County Bar Association M&T Insurance Agency, Inc. Brian Falk Bank Officer, Account Manager M&T Insurance Agency, Inc.

2. 2 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Agenda  Lawyers Professional Liability  Cyber Liability  ABA Exclusive Employment Practices Liability Policy  Crime Insurance

3. FOR PROFESSIONAL USE ONLY. Not for use with the general public. © 2016 M&T Insurance Agency, Inc. All rights reserved. Lawyers Professional Liability

4. 4 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Claims Made Policy  A Lawyers Professional Liability Policy generally provides coverage for demands made upon the policyholder for damages during the policy period resulting from an error or omission within the firms covered prior acts date  Occurrence Policy (Ex. Home Owners) Covers unexpected events during the policy period that results in injury of property damage Lawyers Professional Liability

5. 5 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. What is Typically Covered? Professional Services:  Legal Services Done as an Attorney  Any Fiduciary Role (Executor, Trustee)  Role as Officer in a Legal Association  Author or Publisher of Legal Papers Supplementary Coverages:  Disciplinary Proceedings  Subpoena (Response)  Loss Of Earnings  Public Relations Expense  Breach Notification Expense Lawyers Professional Liability

6. 6 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Who is Insured? The Named Insured This can include:  Shareholders or Partners  Employees Of Counsels (Current/Former)  The estate, heirs, executors, administrators of an insured Lawyers Professional Liability

7. 7 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Common Exclusions  Intentional Acts  Bodily Injury/Property Damage  Insured Vs. Insured  Owned Equity  Normally capped at 10-15% Lawyers Professional Liability

8. 8 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Claims Reporting & Extended Reporting Periods Report Claims Immediately! What Constitutes a Claim  Demand for Money or Services  Service of Suit or Arbitration Proceedings  Disciplinary Action  Request to Waive Statute of Limitations  Any notice of Alleged wrongful Act ERP/Tail Coverage  Available when retiring from practicing law  Partnership gets dissolved  Provides coverage for claims that occurred while the policy was in force Lawyers Professional Liability

9. 9 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Are All Policies/Carriers The Same? Deductible Options  Per Claim Vs. Aggregate  First Dollar Defense of Claims  Areas of Practice Appetite  Claims Expense, Inside/Outside the Limit  Different Premium Ratings Lawyers Professional Liability

10. 10 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. What is an appropriate Limit of Insurance?  Dollar Value of Current Transactions or Cases  Costs of Defending a Claim  Value of Assets You Want to Protect  Potential Billable Hours Lost Lawyers Professional Liability

11. 11 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Why Is My Premium So High?  Areas of Practice  Geographic Location  Attorney to Staff Ratios  Retainer Agreements  Docket Systems  Suit For Fees Lawyers Professional Liability

12. 12 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Choosing an Agent  Experience with Lawyers  Endorsements and Recommendations  Customer Service  Full Service Agency Lawyers Professional Liability

13. FOR PROFESSIONAL USE ONLY. Not for use with the general public. © 2016 M&T Insurance Agency, Inc. All rights reserved. Cyber Liability Exposures for Law Firms

14. 14 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. What is a Cyber Event?  A cyber event occurs when there’s an unauthorized public release of a person’s or entity’s private information. For example:  SS#s, personal financial information, Drivers License number, Health Information (HIPAA)  Business Information. Planned Acquisitions, Financial Statements Cyber Liability

15. 15 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. How Can An Event Occur  Internally Employees/Vendors  Malicious  Stealing Information  Negligence  Lost Resources (Laptop, Smart Phone, Tablet, Paper Files)  Vendor Contracts  Externally Individual Hackers/Organized Crime  Stealing Information  Sending Viruses/Malicious Code  Disruption of Business (Vandalism) Cyber Liability

16. 16 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Changing Landscape  State and Federal Breach Requirements.  May face Regulatory Proceeding/Fines  Damage To Reputation  Financial Ramifications Cyber Liability

17. 17 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. What to Consider  The sensitivity of your clientele’s non-public information  The Level of controversy surrounding cases your law firm is working on  The number of people from whom your law firm collects personally identifiable/health information  Private employee information Cyber Liability

18. 18 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Areas of Coverage Source: “A Guide to Cyber Risk.” Alliaz Global and Corporate Specialty. September 2014. www.agcs.allianz.com. Cyber Liability

19. 19 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Claims Example  An Associate Attorney decided it was time to leave the firm.  Prior to emailing in their resignation, they wiped out all hard drives available and removed the firms IP & Proprietary Information from storage devices.  It took 1,100 man hours and $300k to reconstruction or recollected all the data (http://www.lockton.com/whitepapers/Born_Cyber_Exposures_for_Law_Firms_May15-lr.pdf) Cyber Liability

20. 20 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Claims Examples  An email appearing to be an attorney/client work product was sent to the staff members of a firm that employed approximately 100 people.  After opening the attachment each employee was prompted to enter their Outlook username/password.  Over the next 20 hours the intruder was able to enter the firm’s Outlook Server and accessed hundreds of emails (http://www.lockton.com/whitepapers/Born_Cyber_Exposures_for_Law_Firms_May15-lr.pdf) Cyber Liability

21. FOR PROFESSIONAL USE ONLY. Not for use with the general public. © 2016 M&T Insurance Agency, Inc. All rights reserved. Employment Practices Liability American Bar Association's Exclusive Policy with Chubb Insurance

22. 22 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. What is Employment Practices Liability Coverage for Defense, settlements, and Judgments arising from actual or alleged discrimination:  First Party  Third Party  Partnership Issues (Insured vs. Insured) Employment Practices Liability

23. 23 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Employment Practices Actual or Alleged Discrimination based on:  Race  Sex  Disability  Age  Religion  Retaliation Employment Practices Liability

24. 24 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Claims Example  A firm with a succession plan runs into an issue between partners.  A former senior partner of the firm alleged that he was forced to transfer work to more junior partners against his wishes and to step down as a full partner.  He brought a suit against the firm alleging age discrimination based on the allegations that the firm interfered with his client relationships.  It settled for $300k, which included $110k in defense costs.  The former partner started his own firm. Source: Chubb www.chubb.com 11/14www.chubb.com Employment Practices Liability

25. FOR PROFESSIONAL USE ONLY. Not for use with the general public. © 2016 M&T Insurance Agency, Inc. All rights reserved. Crime Insurance

26. 26 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Crime Insuring Agreements  Employee Theft  On Premises  Forgery or Alteration  Computer Fraud  Funds Transfer Fraud  Identity Fraud  Social Engineering Crime Insurance

27. 27 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. What Is Social Engineering A scheme over CyberSpace by someone who is posing as a trusted vendor, new client or employee to induce him or her to part with money or securities Claims Examples:  Posing as a company’s CFO while overseas  Posing as a possible customer to have goods shipped without payment Crime Insurance

28. [ BIOGRAPHY ] 28 © 2016 M&T Insurance Agency, Inc. All rights reserved. CONTACT INFORMATION Brian Falk is a Surety and Executive Protection Representative in the Buffalo office of the M&T Insurance Agency. Brian began his career as an Energy Consultant, working with large energy users on reducing their costs. In 2012, he made the transition to the Insurance Industry where he handles surety bonds and specialty lines of insurance. Brian graduated from the University at Buffalo in 2009 with a Bachelor’s Degree in Liberal Arts. M&T Insurance Agency, Inc. 285 Delaware Avenue Buffalo, NY 14202 Phone | 716.651.4242 Fax | 716.651.4290 Email | bfalk@mtb.com Surety and Executive Protection Representative Brian Falk

29. 29 © 2016 M&T Insurance Agency, Inc. All rights reserved. FOR PROFESSIONAL USE ONLY. Not for use with the general public. Disclosures This presentation is for informational purposes only and is not intended as an offer or solicitation for the sale of any financial product or service. This presentation is not designed or intended to provide financial, tax, legal, accounting, or other professional advice since such advice always requires consideration of individual circumstances. If professional advice is needed, the services of your professional advisor should be sought. Insurance Products offered are: Not FDIC insured; not a deposit in, obligation of, nor insured by any federal government agency; not guaranteed or underwritten by the bank; not a condition to the provisions or terms of any banking service or activity. Insurance products are offered by M&T Insurance Agency, Inc., not by M&T Bank. M&T Insurance Agency, Inc. is licensed as an insurance agent and acts as agent for insurers. In case of excess and surplus lines, M&T Insurance Agency, Inc. is an insurance broker and places insurance on behalf of our clients. Insurance policies are obligations of the insurers that issue the policies. Insurance products may not be available in all states.