I’m working on a risk management discussion question and need an explanation and answer to help me learn.

1.

Judy owns a single-family house in the San Diego area, and she is shopping for better homeowners coverage. Right now, she has an unendorsed HO-3 policy, and she wants to make sure the coverage is appropriate for her needs. She is working with a new insurance broker, Xavier, who asks her to describe her insurance needs. Judy explains that she lives full-time at her house, but also runs her florist business out of her garage and garden shed. She stores about $5,000 worth of pots, dirt, seeds, gardening equipment, etc. on site, as well as about $10,000 of flowers, shrubs, etc. She is also an avid sailor, and has a small sailboat in her garage, as well as some expensive seascape paintings in the house valued at $25,000 each. Xavier indicates that, right now, Judy might not be covered for all her exposures. What are some endorsements she might consider adding to her HO-3 policy, and why?

2.

Imagine you work in the insurance industry. Would you rather:

-Work as a field agent or broker, with a primary responsibilities of sales and marketing?

-Work as an underwriter, reviewing submissions and pricing out terms?

-Work as a claims adjuster, handling company claims?

-Work as an actuary, establishing rates and handling reserves?

-Work in an ancillary department, such as legal, HR, or accounting?

Why are you choosing the role you are? What qualities do you think you have that match well with your understanding of the role, as well as interests or/abilities? What do you think would be some challenges associated with the role?

3.

Aztec Wellness Co. is a new, up-and-coming business. They have one brick and mortar location near the SDSU campus, just acquired, which will provide the following services:

• On-site fitness center, classes, and personal training
• Online/virtual fitness instruction
• Nutrition and wellness advice/guidance
• Aztec Wellness-branded fresh-squeezed juices, energy drinks, and supplements (retail and/or online sale)

This flagship location has about $100,000 in exercise equipment that the four owner/officers (CEO, CFO, COO, and VP) just purchased. They’ve hired a staff of 10 – 4 trainers, 2 wellness coaches, 2 baristas, 1 IT/web designer, and 1 bookkeeper. The owners will be in charge of marketing, promotion, and sales.

Aztec Wellness Co. has chosen Snapdragon Insurance Services to assist them in procuring a Commerical Package Policy. Their broker recommends a long list of coverages. What are at least 3 coverages you think belong on that broker’s list, and why? What protection would those coverages provide Aztec Wellness Co. in the case of various potential claims?