Jessica Thayer was recently appointed Financial Services Risk Solutions Practice group leader for Starkweather & Shepley Insurance Brokerage Inc. Thayer specializes in directors and officers liability insurance, errors and omissions insurance, fidelity insurance, cybersecurity insurance, employment practices liability insurance and fiduciary liability insurance for investment advisers, mutual funds, hedge funds and securities/broker-dealers.
Previously, Thayer was a senior vice president at Theodore Liftman Insurance Inc., as well as for Marsh Inc., and was responsible for the professional management liability insurance for all financial institutions in the New England region. She is a graduate of Syracuse University with a Bachelor of Science degree in finance.
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PBN: What area of responsibility requires your most immediate attention in your new role as Financial Services Risk Solutions Practice group leader for Starkweather & Shepley?
THAYER: Ensuring the highest quality client service is my biggest focus. Client service has various facets and I am dedicated to make certain the team is equipped to adequately service any and all customer needs – whether that is making sure their insurance coverage fits various contract requirements, helping in the claims process, or answering questions regarding coverage.
Servicing also demands that we are up to speed on industry changes and evolvements, especially in regards to regulatory developments. Our clients are heavily regulated and my team and I ensure the team is up-to-date on any regulations, laws and rules that could impact our clients. As the leader of the … group, it is my job to be sure the team has the education, tools and knowledge of our insurance products to adequately cover our customers’ risk.
PBN: You have worked in the past on the topic of cybersecurity. This is a threat that has business people on the edge of their seats. What must managers know about cyberthreats to protect their businesses?
THAYER: Nobody expects to be hit with a cyberattack, but statistics are increasingly showing that that no one is immune to a cyber breach. Many are in the mindset that if they don’t hold credit card information, they are not at high risk for a breach, but this is far from true. All businesses hold employee data [birth dates, Social Security numbers, etc.] and perpetrators can easily hack into your system and steal information.
In many cases, hackers will shut it down and require a ransom to get your system back up and running. There are many other common scenarios to be considered, and cyber insurance is designed to cover the failure to protect your systems and the intangible data within a computer system.
PBN: Following on the topic of cyberthreats, is insurance to protect business against these threats becoming more essential for many or most businesses? How can managers assess what kind of coverage they might need?
THAYER: Cyber risk is an evolving exposure that never remains dormant. Just when we think we have figured out the new vulnerability, a new one is imminent on our radars. Regulators are focused on this as well. Cyber-risk management should be a priority for all businesses, but unfortunately you can’t always stop perpetrators from infiltrating your systems.
Cyber insurance offers our clients access to a data breach consultant who is able to analyze a breach or potential breach. This resource has been deemed priceless by many insureds. The policy provides coverage for liabilities associated with the failure to protect personally identifiable information, but it also provides other elements such as public relations costs, credit monitoring for the affected parties, legal costs, data restoration and business interruption expenses.
PBN: Are there changes or developments in the realm of management liability insurance that people outside your industry would be interested in learning about? What industry trends are on the rise?
THAYER: In the field of management liability, we’re seeing an uptick in employment-related litigation. With the onset of the #MeToo movement, more attention has been brought to employment-related issues, especially gender equality and harassment. Having clear and robust employment-related policies and procedures are imperative, but there’s no way to ensure a lawsuit against a manager or the firm won’t happen.
This is where exploring employment practices liability insurance becomes so important. This coverage protects the firm from lawsuits alleging wrongful acts such as sexual harassment, discrimination, wrongful termination, failure to hire and hostile work environment. Coverage extends to the covered damages as well as attorney fees. These lawsuits can be costly, regardless of the outcome, especially in industries where there are highly paid individuals.
PBN: What is it about working on insurance solutions for financial institutions that appeals to you?
THAYER: Unfortunately I have seen some very ugly claims in my time working in … [the] field. I like helping clients mitigate and transfer risk to keep their business intact and healthy. Every day is different for me, and that keeps things exciting. Some days clients have complex claims that they need help navigating, or they have risk exposures that may not be covered by a typical policy form. I enjoy tailoring coverage and helping clients address business risks.
Sometimes insurance is looked at as a necessary evil, but for clients that have had claims, they look at this insurance as so much more. I have seen again and again many companies that are saved by the insurance I place, and this has also allowed many companies to have access to risk-management tools that they may not have had on their own.
Mary Lhowe is a PBN contributing writer.
