Hospitality Risks Directory; Homeowners & Auto; Technology & New Media Risks

MARCH 5, 2012 | VOL. 90, NO. 5

WEST REGION

WEST

N8 On The Cover Special Report: Auto and Home

Inside This Issue

Sharing Economy Calls for Insurance Innovation

March 5, 2012 • Vol. 90, No. 5 • West Region

10

NATIONAL COVERAGE N8 Special Report: Auto and Home Sharing Economy Calls for Insurance

16

WEST COVERAGE

N18

N12

IDEA EXCHANGE

8 Smartphone Proof of Insurance Bill for California

28 You Can’t Put a Price on Benefits of Involvement

8 Nevada Approves Regulations for Self-Driving Cars

N1 Minding Your Business: Oak and Schoeffler

Innovation

N12 Closer Look: The Risks of Cloud Computing N14 Closer Look: What to Know About Cyber Liability Exposures

10 There’s an App for That: Mobile Phone Quoting

N16 P/C Insurers Face Obstacles on Road to Hard Market

16 California Earthquake Authority Kicks Off Second Marketing Program for Agents

N18 Spotlight: 5 Things to Know About Classic Car Insurance

20 Alaska’s Hall Saying Farewell to Director Post

N19 Spotlight: Group Personal Excess Liability Gives Added Protection

26 Insurance Highlights from Buffett’s 2011 Letter to Berkshire Shareholders

N21 2012 Hospitality Risks Directory

4 | INSURANCE JOURNAL-WEST REGION March 5, 2012

N6 Social Media and Employee Recruiting N36 Closing Quote: Ladner

DEPARTMENTS 6 9 9 12 14 N2

Opening Note Declarations Figures People Business Moves MyNewMarkets

www.insurancejournal.com

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Opening Note Where’s My Hovercraft?

I

f it’s not one thing it’s another. The stock market seems to have stabilized for a while, jobs are being created, albeit slowly, and housing’s not as bad as it used to be.

In fact, pending home sales in California climbed in January from December, and were up from a year ago, according to a recent California Association of Realtors’ report.

Now there’s climbing gas prices.

U.S. gas prices were up nearly 9 percent toward the end of February since the beginning of the year, according to the Energy Information Agency. Gas hit an average of $3.65 a gallon in late February, a record for this time of the year.

According to a survey late last month from Rasmussen Reports, most Americans think gas will top $4 a gallon in the next few months and most surveyed think we could even see $5 per gallon. The report shows 55 percent of Americans think it is at ‘I wonder if they’ll (tax) least somewhat likely gas will reach $5 per gallon hover crafts when we get or more in the next few them?’ months.

But instead of wondering what this’ll do to our still-fragile economy, it got me to asking myself: Where’s my hovercraft?

I attribute that oddball, borderline-zany, thought in part to a comment from a reader on InsuranceJournal.com. The comment was on a story about the Washington Senate passing a $100 annual electric car fee to make up for the lack of gas taxes electric car owners pay.

The reader, going by “Baxtor,” stated: “I wonder if they’ll (tax) hover crafts when we get them? They don’t use the roads. They’ve been talking about those since I was a kid.”

They have been talking about hovercraft for a long time.

When I was in grade school in the late 1970s and early 1980s, I remember my science teacher talking about such possibilities when we hit year 2000. I had recently seen “Star Wars,” and I even had plans on how I’d have my hovercar decked out.

I also recall the oil crisis around that time that had the entire nation questioning its dependence on foreign oil.

As it turns out, 30 years later we’re still calling into question our use of fossil fuels and only now are we starting to turn to electric vehicles, hybrids and other alternatives discussed so long ago.

And like Baxtor, I’ll just continue to daydream about my hovercraft.

Don Jergler West Editor

EDITORIAL Editor-in-Chief Andrea Ortega-Wells | awells@insurancejournal V.P. Content Andrew Simpson | asimpson@insurancejournal.com East Editor Young Ha | yha@insurancejournal.com Southeast Editor Michael Adams | madams@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor Charles E. Boyle | cboyle@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com MyNewMarkets.com Associate Editor Amy O’Connor | aoconnor@mynewmarkets.com Columnists Catherine Oak, Bill Schoeffler Contributing Writers John Allen, Christopher Bomar, Dave Coons, McKeel Hagerty, Gerald Ladner, Judi Lamble

SALES V.P. Sales & Marketing Julie Tinney (800) 897-9965 x148 jtinney@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 dkaplan@insurancejournal.com South Central Mindy Trammell (800) 897-9965 x149 mtrammell@insurancejournal.com Midwest Lauren Knapp (800) 897-9965 x161 lknapp@insurancejournal.com Southeast Howard Simkin (800) 897-9965 x162 hsimkin@insurancejournal.com East Dave Molchan (800) 897-9965 x145 dmolchan@insurancejournal.com New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classified Advertising (800) 897-9965 x125 classifieds@insurancejournal.com

MARKETING/NEW MEDIA Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns | eburns@insurancejournal.com (619) 584-1100 x120 New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Matt Tolk | mtolk@insurancejournal.com

DESIGN/WEB Vice President/Design Guy Boccia | gboccia@insurancejournal.com Vice President/Technology Joshua Carlson | jcarlson@insurancejournal.com Design and Marketing Executive Derence Walk | dwalk@insurancejournal.com Art Director Jamie Bethell | jbethell@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com

IJ ACADEMY OF INSURANCE Director of Education Christopher J. Boggs | cboggs@ijacademy.com Online Training Coordinator Barbara Dooley | bdooley@ijacademy.com

ADMINISTRATION Chairman Mark Wells Chief Executive Officer Mitch Dunford Accounting Manager Megan Sinclair | msinclair@insurancejournal.com

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Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this publication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2012 Wells Publishing, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission.

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6 | INSURANCE JOURNAL-WEST REGION March 5, 2012

ARTICLE REPRINTS: For reprints of articles in this issue, contact Rhonda Brown at 1-866-879-9144 ext. 194 or rhondab@fosterprinting.com. Visit insurancejournal. com/reprints for more information.

Who insures you doesn’t matter.

Until it does.

Financial Strength and Exceptional Claim Service Property | Liability | Executive Protection | Workers Compensation | Marine | Surety Homeowners | Auto | Yacht | Jewelry | Antiques | Accident & Health

Chubb Group of Insurance Companies ("Chubb") is the marketing name used to refer to the insurance subsidiaries of The Chubb Corporation. For a list of these subsidiaries, please visit our website at www.chubb.com. Actual coverage is subject to the language of the policies as issued. Chubb, Box 1615, Warren, NJ 07061-1615. Š2012 Chubb & Son, a division of Federal Insurance Company.

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News & Markets Smartphone Proof of Insurance Bill for California

A

Cellphone Driving Ban Nets 27 Violators in Helena

Police in Helena, Mont. say they have issued 27 citations in a little over a month following a cellphone ban that went into effect in January making it illegal to use hand-held electronic devices while driving or bicycling within city limits.

Lt. Steve Hagen told the Independent Record that 24 of the 27 receiving tickets pleaded guilty and paid a $25 fine.

Hagen says some drivers pulled over for violating the cellphone ban ended up in drug arrests or DUIs. Hagen says some motorists violating the ban were let off with warnings, including a woman whose husband was in the hospital and she was trying to make arrangements while driving.

AP

California legislator has introduced a bill to require auto insurers to issue proof of coverage verification to the mobile electronic devices of insureds if they request it.

Assembly Bill 1708, authored by Assemblyman Mike Gatto, D-Silver Lake, would enable a person required to provide evidence of financial responsibility to do so through the use of a mobile electronic device, according to the bill’s wording.

The bill would amend sections of California’s insurance and its vehicle codes. The bill states: “Notwithstanding any other provision of law, any insurer issuing policies of automobile liability insurance or motor vehicle liability insurance shall, upon request of either the named insured or the Department of Motor Vehicles, promptly issue to that person or the department written verification as to the existence of that coverage, and issue, upon the request of the insured, verification as to the existence of that

coverage, to a mobile electronic device.”

The bill would also amend Section 16028 of the vehicle code to read: “The evidence of financial responsibility may be provided using a mobile electronic device.”

The bill is currently in Assembly, and may be heard in committee on March 17.

Court Upholds Lawsuit Against NoCal Hooters

Nevada Approves Regulations for Self-Driving Cars

A

state appeals court has upheld a class-action lawsuit filed by servers at several San Francisco Bay area Hooters restaurants in Northern California.

The 1st District Court of Appeal denied a request by the restaurants’ owners that the case be settled through arbitration.

The court ruled that the owners’ employment agreement allowed them to seek arbitration.

But it agreed with a lower court that they waited too long to demand arbitration.

The lawsuit claims the Hooters’ servers were cheated out of tip money, forced to purchase their own uniforms and not given proper lunch breaks, among other violations.

It covers employees who worked at Hooters restaurants in Fremont, Campbell and Dublin and the now-closed Hooters in San Francisco.

N

Copyright 2011 Associated Press. All rights reserved.

Copyright 2011 Associated Press. All rights reserved.

8 | INSURANCE JOURNAL-WEST REGION March 5, 2012

evada is becoming the first of the U.S. states to regulate self-driving vehicles on its roadways.

The state’s legislative commission has approved regulations that were vetted by car manufacturers, insurance companies, law enforcement officials and others.

Nevada Department of Motor Vehicles Director Bruce Breslow says the motor vehicles department is now developing licensing procedures for companies that want to test self-driving cars in Nevada.

Gov. Brian Sandoval test-drove a self-driving Toyota Prius in July. The car being developed by Google Inc. uses radar, sensors and computers that allow the vehicle to drive itself, though human drivers can override the autopilot function.

Breslow says self-driving test cars will use red license plates.

www.insurancejournal.com

Declarations RAND Health Care

Dog Grooming

Aloha Building Codes

“Our analysis suggests eliminating the individual mandate would sharply decrease coverage, but it would not send premiums into a ‘death spiral’ that would make health insurance unaffordable to those who do not qualify for government subsidies.”

— Christine Eibner, a RAND Corp. economist and lead author of a study that shows eliminating the federal mandate in the new healthcare law that every individual carry health insurance would sharply lower the number of people gaining coverage, but would not dramatically increase the cost of buying policies through new insurance exchanges.

“I couldn’t believe what they did. I started crying because this is our baby, too, you know.”

— Gladys Kapuwai, who dropped off her dog Dodo for grooming at the Petco store in Kaneohe, Hawaii in July, said that the pet was returned with its ear cut off. She is one of two dog owners who filed a lawsuit claiming their pets were mutilated while being groomed at the pet store.

“This bill would have undermined key components that are essential to an effective state building code regime…”

— Wanda Edwards, Insurance Institute for Business & Home Safety’s director of code development. IBHS opposed a bill to abolish Hawaii’s State Building Code Council. It was voted down by state Senate.

Successor Liability “The threat of successor liability even if a thorough investigation is undertaken prior to a transaction has had a significant chilling effect on mergers and acquisitions.”

— U.S. Chamber of Commerce and dozens of other trade groups wrote a letter to law enforcement officials laying out the guidance they want regarding the Foreign Corrupt Practices Act. The groups also asked what circumstances a company is liable for past actions by another company it acquires.

Figures

4

$

Million

That’s how much a U.S. District Court judge in Iowa has ordered the operators of a popular pornographic website in California to pay for copyright infringement to an Iowa-based adult film company — a ruling that should serve as a deterrent to others who pirate content online, a lawyer said.

$100

Is how much Washington car owners would pay annually under a bill moving its way through state legislature. The state Senate has passed a bill to charge electric car owners an annual fee to compensate for the lack of gas taxes they pay. It is now in the House. www.insurancejournal.com

25

$

Million

That’s what an Oregon jury has awarded in punitive damages in the death of a Salem smoker whose family sued tobacco company Philip Morris USA over its low-tar cigarettes.

1.5

$

Million

Is the amount of a claim filed against a Northern California probation official by one of his deputies who said he sexually assaulted her. The official has been placed on paid leave, but says the allegations are false and the claim is an attempt to extort money from the county.

March 5, 2012 INSURANCE JOURNAL-WEST REGION | 9

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News & Markets There’s an App for That: Mobile Phone Quoting

By Don Jergler

D

on’t be surprised if in the nottoo-distant future on a television commercial you see Flo, adorned in her white apron, drop her price scanner and pick up a smartphone, on which she takes a picture of a driver’s license and a VIN number on a car and gets a quote for auto insurance.

Yeah, Progressive Corp.’s got an app for that. The app, or application, is called Mobile Photo Quoting. It was launched for the iPhone in February, and the company is set to roll out a version for Droid-based phones in the next few months.

“Ultimately it makes the process of quoting auto insurance easier,” said Matt Lehman, the mobile business leader at the Mayfield Village, Ohiobased insurer.

Mobile quoting has been around for nearly two years, but it’s been an arduous adventure, in which users have had to manually type in loads of information to get a quote.

“Getting ‘Ultimately it makes the all that data process of quoting auto in though a small device insurance easier.’ can be laborious,” Lehman said.

That’s were San Diego, Calif.-based Mitek Systems Inc. comes in. Mitek is the firm that introduced the software that enables users to deposit checks into their bank accounts by photographing them with their smartphones.

Some of Mitek’s clients include Chase Corp., Bank of America and PayPal. Together with Progressive, Mitek created an app that enables users to take a picture of their driver’s license, and their vehicle identification number (VIN), and the app then fills several pieces of information into a form on 10 | INSURANCE JOURNAL-WEST REGION March 5, 2012

the way to generating an auto insurance quote.

The VIN scan prefills the year, make and model, and even sub model, of the car.

A scan of the driver’s license fills in the first and last name, address, gender and license number of the licensee.

“A couple more screens and they’re provided with the rate, and they can buy that rate on the device if they so choose as well,” Lehman said.

Just how much time the app saves its users depends on them.

“We’ve seen some people who can literally get though it in just a couple of minutes,” he said.

Aside from mobile quoting, Mitek, under its Systems Insurance Solutions division, is offering apps such as: Mobile Photo Payment enables enrollment in electronic payment through checking accounts or direct deposit for a claim reimbursement transfer by allowing users to take a photo of a blank check; Mobile Photo Claims streamlines the claims process by enabling customers and agents to take photos of a customer’s driver’s license, insurance card and license plate; and Mobile Document Capture & Send allows policyholders and agents to take a photo of a document and send it as a PDF to an email address or fax number.

The latest app is something that Progressive is out in front with now, but other auto insurers, and other

property/casualty insurers, may be hot on their trail.

“We do know that all the major carriers have mobile strategies,” said James B. DeBello, president and CEO of Mitek. “We know that because we’re talking with them.”

He wouldn’t offer details on who Mitek is in talks with, nor would he discuss details of what type of insurance-related apps are in development.

“We’re changing the consumer paradigm,” DeBello said. “We’re making it easier for the consumer to engage with the carrier, and we’re making it easier for the carrier to engage with the consumer. So it’s a win-win.”

He added, “As these big insurance companies continue to grow their business, they are working on engaging the next generation of consumer. We’re enabling that to be done more efficiently.”

Such apps are likely to continue to shape how the insurance industry markets itself, said Ellen Carney, a senior analyst for eBusiness and channel stratcontinued on page 18 www.insurancejournal.com

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People John Rossetti

Jammie Nam

Mike Palotay

John Kelly

Los Angeles, Calif.-based Poms & Associates Insurance Brokers Inc. has named John Rossetti vice president of the employee benefits group in the firm’s Albuquerque, N.M. office.

Rossetti was previously an account executive at Blue Cross Blue Shield of New Mexico, and a director of sales for Lovelace Health Plan.

Poms & Associates offers commercial insurance, employee benefits, corporate wellness, personal lines, and risk management and risk control. Poms has offices in California, Colorado, New Mexico and Washington.

Walnut Creek, Calif.-based Heffernan Insurance Brokers has hired Jammie Y. Nam in its Orange County office as vice president of employee benefits.

Nam has nearly 20 years’ experience in the employee benefit industry as an underwriter and consultant.

Prior to Heffernan, she worked for an international consulting firm and two health insurance carriers. She specializes in alternative funding.

Heffernan, which provides insurance and financial services products to businesses and individuals, has several offices in California, as well as Portland, Ore., St. Louis, Mo., and New York, N.Y. NAS Insurance Services named Michael Palotay as senior vice president of underwriting.

Palotay has been with Encino, Calif.-based NAS since 2009, managing production and strategy for the NAS underwriting department. He joined NAS as assistant vice president to develop a technology and cyber liability product.

Palotay began his insurance career at American International Group as a senior insurance underwriter.

NAS is an independent underwriting manager of specialty insurance with full binding authority to underwrite on behalf of Lloyd’s of London.

12 | INSURANCE JOURNAL-WEST REGION March 5, 2012

San Mateo, Calif.-based Worldwide Broker Network has expanded their membership to include associate members.

Until now WBN membership has always been limited to property/casualty and employee benefits brokers.

The new members are: John Kelly, CEO, Hanover Stone Partners, global risk management services; John Dempsey, CEO, Dempsey Partners, global forensic accounting services; James R. Woods, general counsel, Dewey & LeBoeuf LLP, global insurance regulatory/compliance services; John Wepler, CEO, Marsh Berry, global insurance brokerage/agency management and merger and acquisition services.

WBN is comprised of independent insurance brokers and employee benefits consultants, and has 522 offices in 85 countries.

Wahington-based insurance software developer Vertafore promoted Mark Craig to senior vice president of product management and Bruce Winterburn to vice president of industry relations.

Craig is responsible Vertafore’s product strategy. He joined Vertafore in 2011 as vice president of agency management systems product management. Before Vertafore, he spent 13 years at Oracle.

With more than 20 years of experience in the insurance software industry, Winterburn will focus on Vertafore’s alliances with the industry.

Brian Janes and Vicki Snow have joined Tustin, Calif.based managing general agent Yates.

Janes and Snow, who become producers with Yates, spent the last two years as vice presidents of another California wholesale brokerage.

Yates & Associates was purchased last year by a venture capital group, with founder Jim Yates remaining on under contract as chairman. The MGA was renamed to Yates.

www.insurancejournal.com

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Business Moves was essential to accommodate the needs of their clients throughout all of Arizona including territories such as Phoenix, Tucson and Kingman, according to Sams.

The company also has its sights set on further western expansion.

Veracity, Stratus Pleasant Grove, Utah-based Veracity Insurance Solutions LLC has acquired Stratus Insurance Services Inc. Of particular interest to Veracity was Stratus’s collective experience in program management. The Stratus team brings decades of expertise to Veracity.

Stratus members joining Veracity officers include Daryle Stafford as president and CEO, Chris Van Leeuwen as vice president of sales and Melanie Allen as vice president of operations.

The enhanced Veracity product line now includes complete Program Management Services, small business insurance, wholesale brokerage, vitamin and supplement insurance, outdoor recreation insurance and a host of specialty and general liability services.

Veracity specializes in the placement of programs, general liability and product liability insurance.

Sams & Associates Sacramento, Calif.-based Donald K. Sams & Associates Inc., an independent claims adjuster has expanded into Arizona.

The expansion into the southwest 14 | INSURANCE JOURNAL-WEST REGION March 5, 2012

Apheta, O’Riordan San Diego, Calif.based O’Riordan and Associates, a strategic financial planning and insurance firm, announced it has merged with Apheta, a financial and insurance planning firm.

Michael O’Riordan, founder and president of O’Riordan and Associates, brings more than 25 years of experience delivering wealth preservation tools.

Apheta is an advanced planning firm based in Southern California. Apheta has a strong presence and reputation in the professional sports and entertainment industry.

Southwest Region will be led by Howard McClure, and will include Colorado, Kansas, New Mexico, Oklahoma and Texas.

West Region will be led by Sam Elliott, and will include Arizona, Hawaii, Nevada, Southern/Central California and Utah.

Midwest Region will be led by John Meder, and will include Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota and Wisconsin.

Northeast Region will be led by Pete Gilbertson, and will include Connecticut, Delaware, Massachusetts, Maine, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.

Mid-Atlantic Region will be led by John Meehan, and will include District of Columbia, Kentucky, Maryland, North Carolina, South Carolina, Virginia and West Virginia.

South Region will be led by Tom Longhta, and will include Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi and Tennessee.

Wells Fargo Insurance writes $20 billion of premiums annually in property, casualty, benefits, international, personal lines, and life products.

Wells Fargo Wells Fargo Insurance — part of Wells Fargo & Co. — announced a new regional structure for its insurance brokerage and consulting division.

Previously operating with 15 regional offices, the business is now based upon seven regions, with approximately 160 local offices. Serving the insurance needs of business banking, middle market, large corporate and high net worth clients, the group is led by Kevin Kenny, executive vice president with Wells Fargo Insurance.

Northwest Region will be led by Rich Lane, and will include Alaska, Idaho, Montana, Northern California, Oregon, Washington and Wyoming.

A.M. Best Rating agency A.M. Best’s London office said it has obtained the necessary approvals to establish a branch operation in the Dubai International Financial Center in Dubai, UAE. The new office will serve Middle East-North Africa, South and Central Asia.

The company said rating analytics will continue to be performed by teams based in London and Hong Kong.

Vasilis Katsipis has been appointed general manager for market development, and will be responsible for the office in Dubai reporting to Nick Charteris-Black, managing director, market development A.M. Best – EMEA. www.insurancejournal.com

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These are the strengths of ACE that allow us to customize environmental risk solutions for your specific needs. We take on the responsibility of your risks so that you can take on the responsibility of making things happen. We call this insuring progress. Visit us at acegroup.com/us

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News & Markets California Earthquake Authority Kicks Off Second Marketing Program for Agents

T

he business of selling earthquake insurance to homeowners may have just gotten a bit easier.

The California Earthquake Authority has launched its annual “Marketing Value Program,” in which the quasiprivate earthquake insurer encourages agents to sign up to receive at least 200 pieces of direct mail marketing preprinted with agents’ names to send to potential clients.

This is the program’s second year.

Last year’s program saw more than 4,500 agents participate and 10,000 policies sold as a result of the program, according to CEA. The intent is for the mailers, which are available in English, Chinese and Spanish, to get into the hands of 5,000 agents per round over two rounds, said Glenn Pomeroy, CEO of Sacramento, Calif.-based CEA. Each agent signing up for the program receives 200 pieces of mail to send to homeowners who could be prospects for earthquake insurance. The mailers are postmarked by CEA, and custom printed with the agent’s name.

16 | INSURANCE JOURNAL-WEST REGION March 5, 2012

An additional 100 mailers each are 821,000 policies in force, Pomeroy said, available in Chinese and Spanish. adding, “That’s more policies in force Agents must first visit than since 9/11.”

EarthquakeAuthority.com, click on “Here at the California Earthquake “Register for 2012 MVP,” and fill out a Authority, we’re in a race against time,” form.

Pomeroy said. “The scientists have For the first round of mailings made it clear that it’s not if the next agents must be employed or appointed big earthquake’s going to strike, it’s by participata matter of ‘As much as we’re in a race ing insurers. when.”

A second He cited against time, we’re in a battle round, which a study from against indifference too.’ requires the Working agents to be employed or appointed Group on California Earthquake by participating insurers, and requires Probabilities, showing there is a 99.7 agents to take a class on CEA’s earthpercent probability of a 6.7 magnitude quake products, puts another 200 earthquake striking somewhere in mailers in the hands of those agents.

California within the next 30 years.

Mailers in the second round will be That’s where the need for marketwrapped around Great California ing and awareness programs come in, ShakeOut mailers that go out each year Pomeroy said, adding that the potenand they will be co-promoted with tial catastrophe isn’t the only obstacle that popular annual event. Last year’s faced by agents selling earthquake Great Shakeout event drew more than insurance products.

8.6 million participants. This year’s Less than 12 percent of California Great California ShakeOut is set for homeowners have purchased earthOct. 18. quake insurance, according to the Last year there were three rounds of Insurance Information Network of mailings. The number of rounds this California. year has been narrowed to two to sim“As much as we’re in a race against plify things, Pomeroy said. Also new time, we’re in a battle against indifferthis year, in select areas an additional ence too,” he said.

100 mailers are avialable to send to And there’s some added incentive for renters. those signing up.

Last year CEA’s MVP program more The first 15,000 policies sold and than doubled the amount of agents reported through MVP will qualify trained to sell through CEA, accordpeople to receive an earthquake starter ing to the organization. In 2010, from kit, which includes a backpack with January through the fall, CEA trained putty to help secure things, picture 1,300 agents. In 2011 they trained over hooks and television straps. The first 3,000 agents.

5,000 agents who sign up will get their “We recorded an additionown starter kit. al 10,000 new policies issued While it’s going, the program will be as a result of that program,” supported by a marketing campaign on Pomeroy added. television, in newspapers and on the At the end of 2011 they had internet. www.insurancejournal.com

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News & Markets Mobile phone quoting, continued from page 10

pass along to their potential customers. Such egy at Cambridge, Mass.-based Forrester apps provide a “brand halo,” he said.

Research. The group has been tracking an “Consumers today want convenience, upswing in insurance-related apps, and sees they want speed and they want service,” he significant growth in that area. added. “The brand halo provides those capa“It’s something we’ve been talking about bilities as part of your brand offer. And we for a while,” Carney said. “When you think do it in a way that conforms to the lifestyle about the future of mobile, of insurance, this of this new conis really the direction ‘Our goal is making it easier sumer habit.” we see it going.” for the customer to work To cater to this Carney first saw this sort of app developed with us, and that includes new lifestyle and habit, for a U.K. insurance giving independent agents consumer Progressive’s aggregator, and that mobile technology to work Lehman said the app allowed users to with the customer.’ insurer spent take a picture of their a great deal of license plates and have time, money and resources on developing some information filled in. However, there Progressive’s mobile offerings. was still a great deal of typing to do first, “We have made a significant IT investand that particular app never took off, she ment around mobile,” he said. “We think said. it’s a very significant channel for us going According to DeBello, what apps like forward.”

Mobile Photo Quoting provide for the insurHe declined to state how many have er is beyond just the convenience they can

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downloaded the app, only that “we’re happy with the number of people who have used it and downloaded it on iPhone.” He also declined to state how much Progressive spent on developing the app, or how much the company is laying out going forward for apps and other mobile technologies.

Lehman equates being ahead of the game with Mobile Photo Quoting as something akin to being the first person to have the wheel.

“Being first to market with image capture is in the same vein as being the first to market with a website … it’s a pretty serious commitment on our part,” Lehman said. “We think it’s such a crucial part of our future that every business area, every IT area, is incorporating this as part of their mobile strategy.”

Some of these new developments include app offerings for independent agents themselves.

Progressive recently launched the ability for agents to provide a quote, or do claimsrelated activities though the iPad in a foragents-only portable platform. The FAO app started in 2011, and Progressive recently launched a quote-and-buy capability in January. It will be available for Android tablets later in March.

Lehman said Progressive’s goal in creating the Mobile Photo Quoting app was not to replace independent agents.

“Our goal is making it easier for the customer to work with us, and that includes giving independent agents mobile technology to work with the customer,” he said.

“We’ve got 35,000 independent agents that work with us, and we think that we’re going to continue to support them with technology.”

Other Progressive apps are mainly entertainment related, including Superstore Shuffle, a game where players process customers though a super store to help them by insurance, and Route-Rageous, a strategy game in which players route their vehicles through different paths. There’s even an app for the Progressive art collection.

And of course, there’s Flo-isims, an app that plays on notable lines from Flo, the star of Progressive’s commercials. www.insurancejournal.com

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News & Markets

Alaska’s Hall Saying Farewell to Director Post

By Don Jergler

L

inda Hall started as director of Alaska’s Division of Insurance on March 3, 2003, and nine-years later she’s calling it a day as the top authority on insurance in the land of the midnight sun.

The state has launched a search for a new director now that Hall will retire.

She plans to stay in the post until spring.

“I love what I do,” Hall said. “I really love the job. But it is consuming. I think to do it the right way it See more on page 24 takes a huge amount of time For Hire: Alaska and energy. I hope I’ve given Insurance Director that to the job, but it’s time I moved on to something a little less strenuous.”

During Hall’s tenure, the division’s financial examination section received an outstanding reaccreditation review, 20 | INSURANCE JOURNAL-WEST REGION March 5, 2012

affirming the state’s ability to analyze the financial solvency of insurers, according to the division, which currently licenses more than 39,000 producers.

The 51-person division is part of Alaska’s Department of Commerce, Community and Economic Development.

Hall, a long-time resident of Alaska, had 18 years’ experience as a commercial broker before becoming director. Before entering the insurance world, Hall was a high school English teacher in Michigan.

Hall is chair of the western zone of the National Association of Insurance Commissioners (NAIC), board chair of the National Insurance Producer Registry (NIPR) and she serves on NAIC’s Internal Administration and Executive committees. Hall is a past

president of the Alaska Independent Insurance Agents and Brokers, and she represented Alaska on the board of the Independent Insurance Agents & Brokers of America from 1997 through 2003.

‘I love what I do. I really love the job. But it is consuming.

I think to do it the right way it takes a huge amount of time and energy.’

Hall has had some unique experiences as director, many of which involved dealing with fraud, she said. But one of her biggest successes as director took place early in her tenure as director, around 2003, when Hall and the state were faced with an insolvency of Freemont Industrial, a major insurance continued on page 22 www.insurancejournal.com

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News & Markets Hall, continued from page 20

me the critical importance of financial solcompany that had written about a third of vency of companies that do business in our the state’s workers’ compensation market. state.”

And when Freemont was placed into Maintaining a balance between consumerreceivership, the guaranty fund was not adefriendly regulation and quate to take over the ‘It’s become difficult encouraging healthy busipayment of Freemont’s ness growth has been a claims. to know who’s doing to her department’s “Consequently we business in your state. key success, Hall said. had an $8 million gap,” We spend more time “It’s a balancing act Hall said. with attorneys and between good consumer Hall and the departprotection and a healthy ment worked with interpretation of marthe state legislature to products and how we quasi-competitive ketplace, so you have to change the assessment enforce our statutory be constantly aware that base, an effort that standards.’ you’re not leaning too far included soliciting either way and to keep early access distributhat balance, because that provides consumtion from some other receiverships to make ers choice,” she said. “And I think the best it work so that no “injured worker ever consumer protection any of us have is to went without claims payment,” she said. have choices of places to provide coverage.”

“That’s probably still today to me the bigSo, how has the industry changed in her gest accomplishment of my tenure in the nine-year tenure? position,” she added. “It also emphasized to

Linda Hall

“It’s become much more complex,” she said, noting that she’s seen more online insurance sales, more and varying forms of competition, and products that are becoming increasingly complex.

“It’s become difficult to know who’s doing business in your state,” she said, adding, “We spend more time with attorneys and interpretation of products and how we enforce our statutory standards. I just think the industry’s become more complex.”

She sees some of that complexity altering an already changing industry, and not necessarily for the better.

“I think we have a greater, and I’m going to call it a threat, of federal regulation, federal incursion, into business that has always been regulated by the states,” she said. “I think the states have done a good job. I’m a major advocate of state regulation. I think Alaskans are not going to get the same service calling a 1-800 number in (Washington) D.C. as they get calling my office with a complaint. So I think for consumers, state regulation is far better, it’s more personal. I have consumers that call me on my direct line.”

She added, “I don’t think we can have a federal regulatory system that works that well for consumers.”

On the Web Listen to full podcast of Hall’s interview at http://www.insurancejournal.tv/.

22 | INSURANCE JOURNAL-WEST REGION March 5, 2012

www.insurancejournal.com

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News & Markets For Hire: Alaska Insurance Director

By Don Jergler

W

anted: State Insurance Director. Must supply your own parka.

Linda Hall, director of Alaska’s Division of Insurance, is retiring after nine years on the job, and the state has launched a nationwide search for her replacement.

Besides working in a place of extended darkness and chilly temperatures during the winter, the director post is a job that likely requires a person who can thrive in the state’s independent environment and add a personal touch.

Hall often answers her own phone, and if she can’t return a call, she personally sees that a call is returned, from consumers and businesses, she says.

Even in a small state with a population of just over 700,000, that’s impressive.

“We’re looking for a clone of Linda,” said Curtis Thayer, deputy commissioner of Alaska’s Department of Commerce, Community and Economic Development.

The insurance department falls under the purview of Thayer and Commissioner Susan K. Bell, who have started a search in Alaska

24 | INSURANCE JOURNAL-WEST REGION March 5, 2012

that will soon reach around the nation. insurance director able to work with Hall “We realize this is going to have to be not during a training period, “and maybe walk only a statewide search, but most likely with her around Legislature, which adjourns a nationwide search on April 15,” to find a candidate Thayer said.

Alaska Fun Facts who can step into her So what sort In case you are interested in applying for shoes,” Thayer said. “We of qualifications Alaska’s director of insurance opening, here’s a are soliciting resumes must Alaska’s few facts on the state. nationwide.” new director of As Thayer disinsurance have?

Alaska by the numbers cussed the search, “First and fore• Population: 722,718 he was preparing to most we want • Housing units: 306,967 personally make a them to have an • Homeownership rate: 64.7 percent trip to the National insurance back• Median income: $66,521 (U.S. Median Association of Insurance ground,” Thayer is $51,914) Commissioners spring said.

• Total number of firms: 68,728 meeting in New Orleans Actually, prior • Land area: 570,640 square miles at the beginning of to Hall, who was • Persons per square mile: 1.2 (U.S. March to talk with a commercial broaverage is 87.4) potential candidates ker for 18 years, Source: U.S. Census Bureau. Figures are latest for the office, which is that wasn’t a job from Census, but vary from 2007 to 2011. appointed by the goverrequirement. nor.

“Since Linda’s “The goal is to have a list of candidates to been in the position, it’s been clear to every(Gov. Sean Parnell) fairly shortly, maybe 35 body that that’s a key component to this,” to 45 days,” Thayer said. he said.

And the hope is also to have the new Other attributes of the new director may be determined in part by Hall, who has offered to help in the search.

The new director will also have to be comfortable traveling back and forth between Anchorage and Juneau, overseeing 51 employees, and will be likely to follow up on implementing aspects of the 63-page HB 164, which Hall pushed through Legislature last year. The complex bill cleans up several of the state’s insurance statutes.

The job, Thayer said, pays about $110,000 a year, “give or take.”

While Thayer and Hall try to discourage the stereotype that “there are igloos in Alaska” — neither Thayer nor Hall, an 18-year Alaskan resident, have seen one in the state — they both agree that during winter months at least the successful candidate has to have a bit of a hardy side.

The coldest day Hall could remember was 25 below zero Fahrenheit. But that’s not so bad, she noted, because on that day she decided to take the day off. www.insurancejournal.com

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News & Markets Insurance Highlights from Buffett’s 2011 Letter to Berkshire Shareholders

By Andrew G. Simpson

W

arren E. Buffett thinks that among large insurance operations, those owned by his Berkshire Hathaway are the “best in the world.”

Buffett is chairman of the board of Berkshire Hathaway, which owns Berkshire Hathaway Reinsurance Group, personal lines powerhouse GEICO and General Reinsurance Corp. among other insurance operations.

Every year Buffett issues a letter to shareholders in which he discusses the economy, investing and the performance of Berkshire Hathaway and its various companies.

Buffett typically has good things to say about insurance and his annual letter on 2011 results that was issued on Feb. 24, 2012, continued that tradition.

He said that while the property/casualty (P/C) industry is suffering losses overall, his P/C insurance operations are managing to profit in part because they are willing to walk away from business that isn’t adequately priced.

Buffett calls the ‘Insurance has insurance operations been good to us.’ “Berkshire’s core operations and the engine that has propelled” the expansion of Berkshire Hathaway over the years.

Buffett said that while Berkshire’s insurers are bound to have underwriting losses from time to time, they have now had nine consecutive years of underwriting profits, totaling about $17 billion.

While underwriting profits are welcome, Buffett really values insurance operations for the float they generate, money from holding premiums that he terms “costless capital.”

“Our insurance operations continued their delivery of costless capital that 26 | INSURANCE JOURNAL-WEST REGION March 5, 2012

funds a myriad of other opportunities. This business produces ‘float’ — money that doesn’t belong to us, but that we get to invest for Berkshire’s benefit,” Buffett wrote.

“And if we pay out less in losses and expenses than we receive in premiums, we additionally earn an underwriting profit, meaning the Warren Buffett. Reuters/Rick Wilking float costs us less than nothing.” whole: We don’t think there is much Over the past nine years the float ‘Berkshire-quality’ float existing in the Berkshire has had to invest has insurance world,” he said. increased from $41 billion to its current “In most years, including 2011, the record of $70 billion. industry’s premiums have been inad“Insurance has been good to us,” he equate to cover claims plus expenses. said.

Consequently, the industry’s overall Buffett said it’s “unlikely” that return on tangible equity has for many Berkshire ‘s float will grow much — if decades fallen far short of the average at all — from its current level mainly return realized by American industry, because it has already reached an a sorry performance almost certain outsized amount relative to premium to continue. Berkshire’s outstanding volume. economics exist only because we have He said the P/C industry is in a some terrific managers running some period of “intense competition” that is extraordinary insurance operations. Let causing the P/C industry as a whole me tell you about the major units.” to operate at a significant underwritIn his letter to shareholders, Buffett ing loss. He noted that the country’s praises the performance of each of largest insurer, State Farm, which he Berkshire’s major insurance units. termed a “well-managed company,” has The biggest contributor to float incurred an underwriting loss in eight is Berkshire Hathaway Reinsurance of the last 11 years.

Group, run by Ajit Jain, who Buffett “There are a lot of ways to lose said has created an insurance business money in insurance, and the industry with float of $34 billion and significant is resourceful in creating new ones,” underwriting profits, “a feat that no Buffett quipped.

CEO of any other insurer has come He said that the value of its insurclose to matching.” ance float is “a huge reason” he believes General Re, managed by Tad Berkshire’s intrinsic business value sub- Montross, is another major Berkshire stantially exceeds book value. insurance operation.

“Let me emphasize once again that According to Buffett, General Re’s cost-free float is not an outcome to be strength is that it has been willing to continued on page 28 expected for the P/C industry as a www.insurancejournal.com

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News & Markets Buffett, continued from page 26

walk away from business where an appropriate premium cannot be obtained. “[A] good underwriter needs an independent mindset akin to that of the senior citizen who received a call from his wife while driving home. ‘Albert, be careful,’

she warned, ‘I just heard on the radio that there’s a car going the wrong way down the Interstate.’ ‘Mabel, they don’t know the half of it,’ replied Albert, ‘It’s not just one car, there are hundreds of them.’

Buffett said that in the first few years

after Berkshire acquired it, General Re was “a major headache but [n]ow it’s a treasure.”

The third leg on Berkshire’s insurance stool is direct writer GEICO, the insurer on which Buffett says he cut his teeth 61 years ago. GEICO is run by Tony Nicely, who joined the company at 18 and completed 50 years of service in 2011.

Buffett said that GEICO’s “much-envied record” is a result of Nicely’s “brilliant execution of a superb and almost impossible-to-

‘Among large insurance operations, Berkshire’s impresses me as the best in the world.’ replicate business model.”

In Nicely’s 18-year tenure as CEO, GEICO’s market share has grown from 2.0 percent to 9.3 percent and its premium volume now tops $15 billion. Buffett said GEICO’s not through growing.

“There is still more than 90 percent of the auto-insurance market left for GEICO to rake in. Don’t bet against [GEICO] acquiring chunks of it year after year in the future,” he wrote.

Buffett extols the virtues of GEICO’s online sales model — and its ubiquitous mascot — over companies like Progressive and others that use agents and real people.

“Our lizard has another endearing quality: Unlike human spokesmen or spokeswomen who expensively represent other insurance companies, our little fellow has no agent,” he wrote.

In addition to its three major insurance operations, Berkshire Hathaway also owns a group of smaller companies, the results of which have in the aggregate been profitable, according to Buffett.

At year-end, Buffett acquired Princeton Insurance, a New Jersey writer of medical malpractice insurance that brings with it more than $600 million of float.

In summary, Buffett said he believes Berkshire’s insurance operations are second to none.

“Among large insurance operations, Berkshire’s impresses me as the best in the world,” he wrote.

28 | INSURANCE JOURNAL-WEST REGION March 5, 2012

www.insurancejournal.com

IDEA EXCHANGE

Agent Association You Can’t Put a Price on Benefits of Involvement

By Stephanie K. Jones

A

gent advocacy may be the number one reason independent insurance agents join professional associations, one veteran agency owner says, but the benefits of participation are many and varied.

Bob Bramlett, president and CEO of the Bramlett Agency in Ardmore, Okla., and chairman-elect of the Independent Insurance Agents & Brokers of America (IIABA or Big “I”) has been giving his time and talents to agent associations on the local, state and national level since the beginning of his insurance career in the mid-1970s.

Bramlett says at both the state and national level, association lobbying teams have had “tremendous success” telling their story to lawmakers. “We win way more than we don’t; but we work really, really hard at it, and we’re really, really good at it,” he says.

While advocacy might be the number one

Classifieds LEGAL NOTICE

reason agents join the professional association, there are many other reasons agents get involved. Among them: an excellent errors and omissions program, which enjoys high participation by state associations; the ability to network and interact with other agents; and educational opportunities.

“You can’t put a price on what it is to get together — whether it’s a convention or an education seminar — to be able to network with your fellow agents and talk about what’s going on,” Bramlett says.

One major initiative Bramlett will be working as IIABA chairman is the consumer agent portal that the Big “I” began unveiling this year. Bramlett says the CAP is” ramping up very fast, where we’re actually going to be doing Internet marketing in a big way to compete with direct writers. … And that is happening very, very fast.”

The CAP portal aims to connect independent agents with personal lines insurance

On the Web Listen to podcasts with Bob Bramlett on IJTV: http://www.insurancejournal.tv/ videos/6451/ and http://www.insurancejournal.tv/videos/6455/. consumers at a local level. The actual roll out of the portal will begin in mid-2012.

The IIABA’s Invest program — which works with high schools and community colleges to provide insurance education opportunities — is also close to Bramlett’s heart.

He said the association will be “putting more and more emphasis” on the program “in order to get new people, new blood. We’re getting more companies involved in it.”

Mainly, Bramlett seems to want to spread the message about the intangible, “priceless” aspect of association involvement.

“I will tell you this,” he says. “I have gotten more out of it, I’ve taken more away from this than I’ve ever been able to give back.”

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Minding Your Business What Steve Jobs Would Do in Insurance A

fter reading Walter Isaacson’s great book about Steve Jobs, I began to imagine: What would Steve Jobs do if he were running an insurance agency?

The first obstacle I thought about was that Steve Jobs could not do it because he would have to deal with the products he could not control from insurance companies.

By Bill Schoeffler Let’s just ignore that issue and his bad traits for the rest of this article.

Steve Jobs’ primary focus was to create great products. All else was secondary. The product of an insurance agency is the service it provides to clients. and Catherine Oak The direction Steve Jobs would take would be to provide a seamless, integrated experience for the client. People have too many things to worry about and not enough time to be able to focus on their insurance needs and problem. They want to be taken care of.

Remember the time before the iPod? What was it like to go buy a stereo system? There were dozens of preamps to select, CD players to review, cassette decks to analyze, turntables to choose and speakers to complete the package. Who had time to figure out what was the best way to go?

The Steve Jobs Agency The Steve Jobs Agency would create a system that allows the prospect to quickly discover his or her insurance needs. The key step here is to develop the technique of collecting information from the prospect and analyzing his or her insurance needs. There are tons of questionnaires that do a good job in discovering potential risk areas. Steve Jobs would develop a way to collect information quickly, painlessly and efficiently.

Once the needs were analyzed, the client would be offered a prepackaged plan with www.insurancejournal.com

few options. The part of the plan that Steve Jobs would emphasize is not the insurance policies, but the services that the agency is providing the customer to make life easier. The agency would create emails and letters that would go out automatically over the course of the year, reminding them of the need to provide updated information and to reinforce the idea that the agency is there to support them.

One belief that Steve Jobs held was that it was important to create a product that the client did not yet know that they needed.

Steve Jobs Agency would be equally innovative. The agency would have periodic meetings with employees and key outside advisers to analyze what the agency is doing now, and 10 new ideas to focus on in the future. Steve Jobs would let the employees work on ideas to improve the product.

Another key belief Steve Jobs had was to obsess about the details. He wanted everything to be perfect, including the parts that the customer could not see. That might mean that Steve Jobs spends a lot of time developing streamlined procedures for the business. His agency would be very consistent in the product/service that the agency provides its customers.

A Single Team The various departments in the Steve Jobs Agency would work together as a single team. Changes would only occur after getting feedback from everyone. Collaboration and integration are to be expected from employees. This is important at several levels. It allows employees to have some control over what goes on. It also creates a sense of responsibility and accountability

since they were part of the decision-making process.

Steve Jobs also would employ his “reality distortion field.” He would push and challenge his employees to do their best, and more. This approach will work, however, only if the agency has all “A” players.

Steve Jobs would hire only the best. The employees would need to be passionate about providing excellent service for the client. These people are hard to find and usually demand higher compensation. The good news is that they are self-sufficient, they can manage themselves, and their productivity would be off the charts. The time and money required to find and hire these people will be worth it in the long haul.

Steve Jobs was that once-in-a-lifetime personality that was able to change the world.

He had the perfect blend of vision, drive and persuasion to create new things and build very successful businesses.

One of his traits that helped him succeed was to be able to spot a good idea and remold it into his unique version. Likewise, business owners should take great ideas from Steve Jobs and other successful people and make it their own.

Schoeffler and Oak are partners at the international consulting firm Oak & Associates, providing services for mergers, acquisitions, management and financial consulting. Email bill@oakandassociates.com. Phone: 707-9356565. Website: www.oakandassociates.com.

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IDEA EXCHANGE

Social Media & HR Social Recruiting: Branding Your Company as an Employer of Choice

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eventy-nine percent of companies are already using or planning to use social media in their business strategy. The No. 1 benefit organizations attribute to social media is increased awareness among target customers. Yet there is another often neglected benefit of social networking that businesses should be taking advantage of —

By Dave Coons employer branding.

Nearly nine in 10 job-seekers have a social media presence, and more than 22 million Americans reported using social media to find their current job, according to a Jobvite. com survey, “Social Job Seeker Survey 2011.”

“Social recruiting” is becoming commonplace, as employers realize the power of social media platforms and its effects on the way we recruit.

Your online presence is the main channel that projects your employer image. What is your online presence communicating about your company? What isn’t your online presence communicating? If you are not using or are underutilizing social media, you are missing out on a huge opportunity to reach potential candidates.

Know Your Venues The first step is to know your venues and select only those online venues that will deliver the most impact. Insurance organizations will likely narrow it down to LinkedIn and Twitter. Some will take it a step further with a company blog.

LinkedIn has emerged as the leading professional networking site. It boasts an excess of 150 million members worldwide.

Executives from all of the 2011 Fortune 500

companies are on it, and 2 million companies encourage people to share your message with have LinkedIn Company Pages. In many their contact base. It also communicates that instances, this is a candidate’s first stop your firm is growth-oriented. Employees when seeking information on a potential should be sharing this information on their employer. Companies are wise to build a personal pages, as well.

LinkedIn strategy, including a company page Provide useful links and industry informaand individual employee training pages. tion. Always use your organization’s original Another social media content. Tweet and share site that has been company press releases and Your social media embraced by the busiupcoming events. Market message can set you the benefits of working for ness world is Twitter. apart as an employer your organization — the This site is a great way of choice. to spread your message things that set you apart and drive traffic back to from the rest. your website. The database of Twitter users Be sure to keep your content balanced. is vast. To build a quality Twitter following, While the occasional promotional message focus on industry associations, media outlets, is okay, social media is not the place for well-known individuals in the insurance advertising. Consistently posting salesspace and your customer base. Use menoriented messages will drive your followtions and hash tags to ensure your Twitter ers away; silly and off-topic content rarely account shows up on other users’ feeds. garners shares and lacks professionalism.

Another way to build your company’s Furthermore, never underestimate the imporonline presence is to introduce a blog. It can tance of proofing, even if the message is only drive traffic to 140 characters. your website Engage others and keep the conversaand increase tion going. Occasionally pose questions to your search encourage feedback. If another user mentions engine visibilyou, always acknowledge the mention and ity. Candidates respond appropriately. Negative feedback appreciate a is a possibility, so have a plan to respond to blog’s more negative comments. If possible, address the intimate look original poster publicly to let him/her know at the company that you will be sending a private message. and its culture.

This shows other viewers that you are workWith any ing to resolve the situation, while restricting social media further conflict to a private forum. platform, don’t embark upon a task you When your potential employees begin don’t have time to maintain. to investigate your company, show them a strong corporate brand. Your social media Communicate Your Message presence and content speak volumes about Once you’ve put thought into what mescompany culture. A streamlined social media sage you want to convey to your customer strategy communicates professionalism, base, think about the message you want to growth and innovation. These are the facsend to potential employees. What do you tors that transform an organization into an want people to see when they Google you? employer of choice.

Your social media message can set you apart as an employer of choice.

Coons is senior vice president of The Jacobson Group, a Posting job openings is a must. Not only national provider of talent to the insurance industry. Phone: is this free advertising, it is a great way to 800-466-1578. Email: dcoons@jacobsononline.com.

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NATIONAL COVERAGE

MyNewMarkets My New Markets, continued from page N2

mum $100 million Carrier: Lloyd’s States: All states except Alaska and Hawaii Contact: John Watt at 954-931-4795 or email: jwatt@irs-incorporated.com

Pay-As-You-Go Workers Compensation

Carrier: Unable to disclose, non-admitted States: All states except Hawaii Contact: Customer service at 800-543-3248

Property and General Liability Market Detail: Element22 Insurance Services (www.element22ins.com) provides

commercial property and general liability coverage for shopping and retail centers.

Available limits: As needed Carrier: Multiple carriers, admitted and non-admitted available States: Ala., Ga., Fla., La., Miss., N.C., S.C. and Texas Contact: Customer service at 888-992-4405

Market Detail: Pinnacle Underwriters (www.pinnacleunderwriters.com) payas-you-go workers’ compensation has no down payment and is direct billed monthly.

Contractors, staffing and new companies are accepted.

Available limits: Minimum $500,000, maximum $1 million Carrier: Unable to disclose States: All states except Alaska, Conn., Del., D.C., Maine, Mass., Md., Mont., N.D., N.H., N.Y., Ohio, R.I., S.D., Vt., Wash. and Wyo. Contact: Derek Lynn at 972-715-0999 or email: dlynn@pinnacleunderwriters.com

Elite Restaurant Insurance Association Market Detail: DGP Miles Insurance Agency (www.dgpmilesins.com) offers all lines of coverage to restaurants. Other features: dividend on all lines of coverage (except umbrella); non-auditable; no coinsurance; no wind deductible; premium based on public square foot (not revenue); liquor included in general liability; and umbrella covers over liquor.

Available limits: Minimum $1 million; maximum $10 million Carrier: Unable to disclose, admitted States: Conn., Maine, Mass., N.H., N.J., N.Y., R.I. and Vt., Contact: Amanda Munoz at 972-934-4209 or email: amunoz@marketscout.com

Trade Contractors Market Detail: Norman-Spencer Agency’s (www.norman-spencer.com) construction insurance solutions (CIS) is a program designed for residential and commercial artisan-type contractors, operating in states noted for construction defect litigation. Underwritten by a national, non-admitted A-rated carrier, the program lead lines are general liability and excess liability, with property and auto also available. Program features include open distribution and availability in selected states.

Available limits: As needed www.insurancejournal.com

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N7

SPECIAL REPORT

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SHARING

ECONOMY CALLS FOR INSURANCE INNOVATION How Insurance Helped Getaround Get Going

By Andrea Ortega-Wells

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an technology positively impact a billion people in just 10 years? Possibly, if insurance is available.

Consider taking a low-use personal automobile — which might sit idle most of the time — and making it available to someone else in a community who needs a car.

That’s what Jessica Scorpio was thinking when she helped launch Getaround.com, a peer-to-peer car sharing company that allows participating car owners to share their vehicles to offset the high cost of ownership while making a positive impact on the environment.

Scorpio, co-founder and director of marketing, says the idea for Getaround spawned from her graduate studies project as a member of the Energy Team Project in 2009 at Singularity University, a Mountain View, Calif.-based educational institution aimed at advancing technologies to address humanity’s grand challenges.

“We were challenged to come up with a new idea that could positively impact a billion people in 10 years,” she said. “You have a car that sits idle 92 percent of the time; it serves its owner well, but it also is a really expensive asset that could be used more effectively.”

Scorpio didn’t expect people to stop driving completely anytime soon, but she saw an opportunity to create a marketplace that would connect car owners with other people in need of a car. Such a connection would provide a needed service but would also limit the number of cars on the road thereby reducing the carbon footprint.

The bonus: the car owner can make money off their asset, and other people can choose not to own a car.

But in order to make this innovative idea a reality, a few big problems had to be solved. One of those problems was finding insurance.

“We worked for about the first year to overcome the key challenges. One was insurance and the other was technology,” Scorpio said. “We felt like providing insurance was really key.”

Other car sharing networks, such as Cambridge, Mass.-based www.insurancejournal.com

Zipcar, which provides its members with access to shared vehicles in urban areas, have had some success. But Getaround’s business model would be different.

“Zipcar’s done a really great job of getting awareness for car sharing, but they’re very limited in where they can operate,” Scorpio said. That’s because Zipcar owns its fleet of vehicles, which Zipcar’s members then share. “It can only operate in the densest urban areas, so there are tons of little cities and towns, and even the more suburban areas that want car sharing that will never be able to have car sharing with the fleet model,” Scorpio said.

Scorpio said that while it had its advantages, Getaround’s model of using a peer-to-peer car sharing approach rather than a fleet of company-owned vehicles made securing insurance difficult.

“I think we were a little early in trying to get something like this developed,” she said. “We had to do a lot of education.”

Securing insurance for a start-up company can be tough even without Getaround’s unique peer-to-peer car sharing exposure. But getting a new type of policy created that would cover the unusual risks of car sharing was really, really difficult, she said.

“We had to be very scrappy, very creative even in reaching the right people, so we actually cold called insurance VPs,” Scorpio said.

That’s right — cold calling insurance brokers and carriers to find coverage. And sometimes it worked.

“We got through sometimes,” she said. “It was really interesting …

The VP of some major insurance company takes 20 minutes to talk to you. And at the end he says, ‘Well, call me back when you have two years of experience.’ And we’re like, ‘Oh, we will,’” she said.

The Sharing Economy Trend While peer-to-peer car sharing remains in its infancy and is pricontinued on page N10 March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N9

SPECIAL REPORT

Home & Auto Sharing Economy, continued from page N9

marily found in San Francisco and a few other places, peer-to-peer home sharing firms have had more far-reaching success.

San Francisco-based Airbnb claims that it has booked more than 5 million accommodations worldwide since August 2008. It operates offices in nine countries and lists peer-to-peer rental accommodations in more than 19,000 cities and 192 countries.

But the sharing economy is making more than cars and homes available.

People in need of a lawn mower or chain saw might find a friendly neighbor to borrow (or rent) from on social networking sites such as HeyNeighbor.com.

Or people who need an errand run can find a person willing to do the job for a few bucks at TaskRabbit.com.

Want to save on gas? In today’s sharing economy consumers can access car-pooling social networking sites like Zimride.com, or rent bicycles to ride from Rentcycle.com.

The sharing economy doesn’t seem to be going away any time soon. According to a national study, 60 percent of people say they find the concept of sharing appealing, and 71 percent of people who have used shareable products expect to continue to do so.

“This trend is no longer emerging, it’s here,” said Lynn Franz, of Campbell Mithun, the Minneapolisbased advertising agency that commissioned the study.

This year looks to be a good one for the sharing economy and start-ups ready for growth.

Ron Conway, special adviser to SV Angel, recently identified the sharing economy as 2012’s hot area for angel investment in The Economist.

Given the growth in sharingrelated options and new businesses, nurturing an insurance market ready to respond will be key, says one broker who was instrumental in developing an insurance program for Getaround.

“I personally believe that this is a very large trend,” said Julie Davis, vice president, brokerage and social media director for Heffernan Insurance Brokers based in San Francisco. The trend has become so commonplace that it’s forcing a change within the insurance industry, Davis says.

“The insurance industry is very focused on insurance policies where people own an asset, and they’re not focused on, ‘How do I actually cover something where the ownership and the maintenance might be a little bit different?’ Insurance carriers are trying to struggle with, ‘How do I make this work? How do I do this?’” she said.

Creating an Insurance Market Scorpio knew that for Getaround to be a success she had to find the right insurance partners. She found that in Heffernan’s Davis.

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“We were lucky enough to find Julie at that time and she’s just been our guardian angel since,” Scorpio said. “I think it’s about really finding the right broker with the right connections and vision when you’re doing something innovative.”

After all, it takes an innovative insurance program to serve the needs of an innovative company like Getaround.

After initially trying to find insurance through large national retail brokers, Getaround found Davis was a breath of fresh air.

“She really looked at it the right way, and I felt like a smaller firm could really help us because we got more attention. She was able to pull some personal connections and get the ear from people who otherwise would not really have wanted to listen,” Scorpio said.

Peer-to-Peer Coverage Challenges Getting someone in the insurance industry to listen wasn’t easy.

“Frankly, we beat the market to death,” Davis said. “I can’t even begin to tell you how many declinations we had.” Davis soon found out that for peer-to-peer car sharing nothing was simple when it came to insurance.

“The biggest challenge that you have surrounds a couple of things: First, you have the issue of ownership. You have the issue of maintenance. You have the user agreements, the contractual liability,” Davis said. “Then, specifically, whenever you’re talking about car sharing, the one additional item that comes into play is legislation.”

That’s because one of the biggest obstacles in peer-to-peer car sharing liability centers on the car owner’s personal auto policy coverage and whether or not the vehicle is considered a commercial vehicle due to the nature of car sharing for a rental fee.

“The crux of the issue is that standard language in a personal auto policy usually contains an exclusion if you are renting the car out,” said Robert Passmore, senior director personal lines policy for the Property Casualty Insurers Association of America.

Personal auto policies typically exclude coverage when vehicles are used as a livery (taxi or limos), or for rental car services, he said.

“Those are commercial uses of a motor vehicle and typically excluded under a personal auto policy.”

Legislation passed in California in 2010, and then in Oregon in 2011, has resolved ambiguity for some peer-to-peer car sharing liability issues. Similar pending legislation in Washington aims to do the same this year.

The legislation does two things, according to Passmore. “One, it prevents consumers who are sharing their cars from having to go and get a commercial auto policy. It also delineates who’s responsible for what, basically that the car sharing company’s insurance is going to be responsible for anything that happens while the vehicle is in possession of the car sharing company,” he said.

“The important thing is that if you are getting involved in one of these car sharing programs you want to make sure that your exposures are covered under whatever policy is being provided by the car sharing organization,” Passmore said.

In California, the legislation (AB 1871) also prevents a personal auto insurer from altering the policy because the owner is participatwww.insurancejournal.com

One Insurance Broker’s Drive for Innovation

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Getaround Founders: Elliot Kroo, director of engineering; Jessica Scorpio, director of marketing; and Sam Zaid, CEO

ing in a car sharing program, says Peter Moraga, spokesperson for the Insurance Information Network of California. In other words, a personal auto insured cannot be non-renewed or charged a higher rate just because they are participating in car sharing.

The law, which insurers helped craft, has brought about changes to personal auto policies in California, he said.

“Our members are reporting that because AB 1871 stipulates what can and can’t be done, they’ve had to adjust their policies to specifically exclude any claim arising during the car’s sharing,” he said.

“So where that may not have been clearly spelled out in the policy, some of our members have now added language to define ‘car sharing’ parameters for claims accepted on the auto.”

The car sharing economy likely will drive legislative changes in other states, too, as companies like Getaround expand.

States will have to address the issue, Passmore said, “because if an accident occurs you can probably expect that the plaintiffs will go after everyone, any potential sources of recovery.”

In his view, personal auto insurers will see car sharing as an unfavorable exposure even if they are protected under legislation like AB 1871.

“In effect you are renting out your car and that is typically excluded,” Passmore said. “So yes, it is considered an unfavorable exposure because you don’t know who is driving the car.”

Even so, personal auto insurers don’t seem to be making any decisions just yet.

“We haven’t seen much impact with insurers yet,” Moraga said.

However, he added that so far insurers have received few inquiries from policyholders about car sharing liability issues, but as the sharing economy evolves that may change.

“This is such a new thing,” he said. “Like any new thing it takes time before it’s actually tested.”

Passmore agrees that insurers have yet to respond in a big way, but he says the question really lies in what happens from here.

Anybody can name anybody in a lawsuit, he says. “I haven’t heard of any big cases or court decisions but it’s also a pretty new program — and it only takes one.” www.insurancejournal.com

hen Jessica Scorpio, 24, began her quest for insurance for Getaround.com, a peer-to-peer car sharing organization, she ran into a few closed doors.

“I definitely spent my whole 22nd year banging on insurance doors,” she said.

Scorpio, who serves as Getaround’s director of marketing, founded Getaround along with Sam Zaid, CEO, and Elliot Kroo, director of engineering. They knew from the get-go that insurance would be crucial to the success of their peer-to-peer car sharing company.

When she began her quest for coverage, Scorpio found that few people in the insurance industry wanted to take a chance on this unchartered territory. Then she came across one insurance broker who made all the difference. That broker was Julie Davis, vice president, brokerage and social media director for Heffernan Insurance Brokers based in San Francisco.

Julie Davis “We’ve worked extremely closely with Julie and the team at Heffernan,” Scorpio said. “They understand our business really well.”

That understanding of the risk was an asset in creating an insurance program almost as innovative as Getaround itself.

“Anytime you have people that are doing peer-to-peer sharing, I think it just sort of rewrites the rules of how personal coverage and commercial coverage work,” Davis said.

Davis’ expertise helped open the door to the right insurance partners. Those partners turned out to be RT Specialty and Berkshire Hathaway’s National Indemnity.

Lynn Cogger Koop, senior vice president for RT Specialty in Chicago, says developing an insurance program for Getaround required a little more creativity than even her most unusual commercial auto clients.

Davis said the biggest challenge was getting carriers to step back and understand the risk.

The main problem for underwriters is there’s no data to accurately assess the risk, Koop said. “There isn’t anything to go by.”

While Davis and Scorpio delivered a good risk model for Getaround — so well that National Indemnity took a chance on writing the coverage — the carrier remains unsure about writing other similar risks, Koop said.

“They are probably not going to do any others [peer-to-peer car sharing risks],” Koop said. “They are cautiously optimistic about this risk because there is really no rating methodology or actuarial data because no one has done this before.”

Koop says that even though the Getaround insurance program remains in a test phase, so far so good. “Getaround has been a great client,” Koop said. “They are helping us develop some data to share.”

Loss experience has been good as well. “My personal experience is the claims have been surprisingly great,” Davis said.

Both Davis and Koop see the sharing economy as a good opportunity for insurance growth and innovation.

“It’s definitely a class of business that we are writing,” Koop said.

“We’re in the test phase on auto so we are not actively pursuing any other peer-to-peer car sharing but the other classes are quite honestly a little bit easier to put together.”

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N11

CLOSER LOOK

Technology & New Media Risks Cloud Computing: The Risks Beyond the Metaphor

By Judi Lamble

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loud computing is big business. With a worldwide market forecast to reach nearly $241 billion by 2020, it’s no wonder chief information officers (CIOs) rank cloud computing in their top three technology priorities for 2012.

Cloud computing is the market’s metaphor for enabling convenient, on-demand network access to a shared pool of configurable computing resources (e.g., networks, servers, storage, applications and services) that can be rapidly provisioned and released with minimal management effort or serviceprovider interaction.

Cloud computing is most often: • Software as a Service (SaaS) — software applications accessible through an interface,

like a web browser. SaaS enables users (DaaS), Application Platform as a Service essentially to rent software and data storage (aPaaS), Software Infrastructure as a Service space from a provider (e.g., Gmail or Google (SIaaS), Cloud Enabled Application Platform docs).

(CEAP), Business as a Service (BaaS) and • Platform as a Service (PaaS) — platforms Gaming as a Service (GaaS). to host, test or maintain As the cloud market developers’ code (e.g., matures, multiple business As the cloud market Force.com). models for cloud computmatures, multiple • Infrastructure as a ing are emerging. business models for Service (IaaS) — outThe public cloud is cloud computing are available and marketed to sourced infrastructure emerging. on which users may businesses and consumdeploy their own operaters at-large and employs a ing systems and applications, (e.g., Amazon mega-scale infrastructure. Developers and Web Services, Rackspace, IBM’s various IaaS non-IT business leaders especially, are rushcloud offerings). ing to embrace the public cloud.

If SaaS, PaaS, and IaaS are familiar conThe private cloud focuses on IaaS and cepts, then you may also be aware of some is owned or leased by a single enterprise of their offspring: Development as a Service (diminishing the scalability benefits of cloud computing, but allowing users more control).

The community cloud serves, and is shared by, a defined, limited constituency of users.

The hybrid cloud is a creative blend of one or more of the previous options.

Advantages So why the current fascination with cloud computing? Outsourcing one’s IT needs from a PC or internal server(s) to an offsite, more accessible and probably shared server with state-of-the-art IT support offers many benefits, including: • Access to cloud-based data, apps, platforms, etc., from any computing device anywhere, anytime.

• Cost savings as hardware, software licenses, upgrades, etc., become unnecessary.

• Increased data storage capacity.

• Elimination of network maintenance and update disruptions.

• Enhanced data security.

• Flexibility to respond to changing resource demands and limitations (both electronic and human).

Perhaps most important, cloud computing offers scalability — the ability to do what you do in a bigger way. The cloud allows

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users to do more, faster and at a more complex level — without increasing the cost.

Risks While cloud computing has advantages that PCs and internal corporate IT departments may be unable to match, the concentration of data, applications and systems on mega-servers maintained by remote personnel presents distinct risks. Some risks include: loss of service and data, invasion of privacy and other privacy issues, compliance issues, and other disputes.

Loss of Service. Loss-of-service headlines pepper the media as “news,” but the reported causes are often familiar: errors in upgrades, bugs in updates and heavy traffic. Service outages can extend beyond inconvenience to material business interruptions.

Loss of Data. Incidents of permanent data loss have been rare, but they do occur, as mega-vendors like Amazon have learned.

Invasion of Privacy. Despite cloud providers’ assurances of data security, hackers are an ingenious lot. Citigroup, Sony, the International Monetary Fund, Lockheed Martin, the U.S. Senate, Comodo (a too-bigto-fail entity providing certificates of site authenticity to web browsers), and countless others have all learned the hard way.

Privacy issues also arise from the voluntary production of cloud-stored information incident to litigation. Courts are split on whether the Stored Communications Act (a legacy from the 1980s) prevents disclosure of cloud-based information, so cloud providers and users must be prepared for the possibility that otherwise private data, once stored in the cloud, may no longer be deemed private.

Traditional Business Disputes. As in any hot market, the cloud is populated with competitors aggressively challenging each other’s intellectual property rights and sales practices, as well as theft of trade secrets and the employees who know them. The cloud also promises traditional contract disputes, as vendors and their customers fight to allocate losses due to service interruption, secuwww.insurancejournal.com

rity shortcomings, and alleged poor performance.

Compliance Issues.

Cloud users, not their providers, are responsible for compliance with state and federal laws related to data privacy like HIPAA, the GrammLeach-Bliley Act, and the Federal Information Security Management Act. Likewise, compliance with e-discovery requests in litigation falls to the parties to a lawsuit, not their cloud providers. Because there are currently no universally accepted standards for cloud computing providers to follow in storing and maintaining information (although various groups are looking to develop them), passing the risk of noncompliance onto providers may be impossible.

Cloud Best Practices Outsourcing IT to the cloud is not the same as transferring data management risks.

Prudent users therefore should scrutinize cloud providers’ privacy policies, security measures, disaster recovery plans, and all aspects of the provider’s electronic infrastructure. For those new to the cloud, the National Institute of Standards and Technology’s (NIST) Guidelines on Security and Privacy may provide a useful starting point for that analysis.

Also, ensure the user’s own privacy policies, litigation holds and other datadriven protocols take its cloud activities into account.

Users should also consider the value of the “extras” such as data recovery services and redundant servers when purchasing cloud services.

Users should carefully evaluate contractual transfers of risk (warranties and indemnity provisions). Typical cloud service contracts will include an indemnity provision that favors the service-providers and provisions that limit damages to the cost of service, enhancing the cloud user’s need for contract negotiation.

For cloud providers, best practices will include making security measures and rigorous disaster recovery/business continuity plans a centerpiece of their design. Another best practice is to maintain favorable indemnity provisions and damage limitations.

As with any emerging technology, balancing risk tolerance with business benefit is key. And mitigating that risk with appropriate insurance coverage, such as a data protection and an errors or omissions insurance policy, is one way to strike the balance.

Lamble is vice president of claims for OneBeacon Technology Insurance.

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N13

CLOSER LOOK

Technology & New Media Risks What Insureds Should Know About Avoiding Cyber Liability Exposures

to everyone in its contact list, including all customers. As a result, one of your client’s customers gets the same virus, wipes out his

By Christopher D. Bomar whole network, and now the customer is suing your client for damages. n today’s business world, digital infor2. Your client runs a nonprofit organizamation is fundamental to everyday tion. Their website gets hacked by a virus operations. Whether it’s financial applicaand it corrupts all of their content then tions, email communications, supply chain emails a virus link to all their donors. They management, content management, sales rush to take the site down but not before order processing or customer relationship a lot of damage was done, plus they now management systems, data is the backbone must spend thousands of dollars to have of business. The more reliant a company is the computer network and website rebuilt. on digital data, the lower its tolerance is for Meanwhile, several major donors are not any interruption in application or data availpleased with the way things were handled, ability caused by cyber threats. so your client has lost a huge chunk of sponThe recent rise in high-profile cyber incisorship (income). dents, such as computer 3. A disgruntled former viruses, data theft, iden‘Cyber losses are employee logs into your tity theft and other cyber increasing, and the client’s network and crimes, makes it criticost to recover from blocks access to the comcally important to keep a data breach can be pany website so its cusdata secure, available and staggering.’ tomers cannot access their organized. accounts nor do business.

What happens when a After two weeks of this, everyone is upset data loss or breach occurs? More specifically, because they cannot operate normally and what are the implications from an insurance your client is losing customers by the hour. standpoint?

Not only have they lost customers but now Consider these scenarios: they also can’t get them back, and some are 1. Your client owns a small business and suing for damages. one of its employees accidently opens up an email that has a computer virus attached to Coverage Lacking it. The virus crashes the company’s computWhat do these three scenarios have in er network but not before spreading itself

I

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common? None of the losses would be covered under typical business insurance policies.

The Insurance Service Office’s Building and Personal Property Coverage Form, which covers damage to property, covers loss of data but only up to an annual limit of $2,500.

Commercial general liability policies cover claims against your clients for damage to others’ property, but damage to data is specifically excluded. Not only is the damage to data excluded, but damage (including bodily injury) caused by a loss of data is specifically excluded as well. This means the full financial impact of these scenarios would fall directly on your clients’ business.

Times have certainly changed, and most businesses aren’t prepared for these scenarios. Yet they are happening everyday at an alarming rate with more privacy and security breach headlines in the news, and that’s only a small portion of what is actually happening but is not reported.

According to the Cincinnati Insurance Board, most companies, particularly small businesses, are woefully unaware of the implications of cyber threats.

“Cyber losses are increasing, and the cost to recover from a data breach can be staggering,” said the Board’s Executive Vice President Ron Eveleigh. “At this time, coverage is limited for these cyber losses, but the coverage is evolving. Some policies will provide limited coverage for broad data and privacy breaches but, right now, the majority of commercial general liability policies need a specific endorsement for cyber peril coverage.”

How to Avoid Losses There are three things agents should do to help their customers avoid major losses caused by cyber-related threats.

Do a review with your clients of their businesses cyber risks. “Be sure to inquire of any e-commerce activity that their businesswww.insurancejournal.com

es do and what kinds of and whose information they store on their network,” said Brian Fey, vice president of Fey Insurance Services, Oxford, Ohio. “This would even include any information on subcontractors who do some of their e-commerce activity or help in running or maintaining the computer network.

At the same time, be sure to review their current coverage and see what possible gaps exist in their current plans as it pertains to covering cyber threats unique to their way of doing business.”

Discuss “cyber-risk” coverage for loss of or damage to data. “Be sure to ask not only about coverage for loss of their data, but also for their liability for loss of others’ data, as well as the damage that can be caused by the loss of data,” said Martin Dvorchak, consultant for CORE Risk Services, a Cincinnatibased Risk Management and Disaster Recovery firm.

“Endorsements and/or policies to cover data are readily available. There are many versions of so-called “cyber liability” policies available in today’s marketplace, and it is important to carefully review terms and conditions to make sure such a policy will do what they expect if and when it is needed,” Dvorchak added. “Unless they’re making buggy whips on a cash-only basis, they need some form of this coverage to protect their business. Covering these exposures is probably more affordable than they think, and it’s certainly more efficient than paying for damages out-of-pocket.”

Have a data security risk assessment performed by an IT professional who specializes in data security. This will help discover the strengths and weaknesses of data handling processes and fix them before something bad happens. A thorough risk assessment along with adopting best practices demonstrates that a business has exercised due diligence, and when properly documented, can serve as an “affirmative defense” when a cyber threat impacts their employees or customers.

As the saying goes, “an ounce of prevention is worth a pound of cure.” This is especially true for cyber perils. Each of these pointers can be the difference between business continuity and business failure for your www.insurancejournal.com

customers in the event of a cyber-related incident.

Bomar is the senior project manager and president of Cincinnati-based Boomarang Data Backup and Security. A

former insurance agent, he teaches data security risk management and HIPAA compliance best practices to insurance agents and underwriters in Ohio and Kentucky. Website: www.boomarangdbs.com. Email: cbomar@boomarangdbs. com.

Managing Payments, Driving Solutions

The business to business industry is growing. And payment processing requirements for your business continue to evolve. You need a partner who can keep you informed and educated on changes in the industry. One who will consult with you on optimal processing solutions for your customers’ payments. A partner that can help you evaluate ways to minimize your card processing costs and maximize your card data security.

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March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N15

NATIONAL COVERAGE

News & Markets P/C Insurers Face Obstacles on Road to Hard Market

By Andrew Simpson

W

ith interest rates low and looking like they will stay low for some time, property/casualty insurance companies will have to focus on making their profit on

underwriting rather than on investments.

However, P/C insurers expecting to achieve better results by relying chiefly on higher prices may need a Plan B. There are numerous forces inhibiting the broad price increases that might usher in a

real hard market, according to experts at the Professional Liability Underwriting Society (PLUS) Directors & Officers Symposium.

These forces include buyers who balk at paying more, brokers unaccustomed to asking for more, along with benign loss trends that make increases difficult to explain.

Will Customers Pay? The willingness, or unwillingness, of customers to pay more is a key factor in whether insurers can raise prices, according to Eric Andersen, CEO of Aon Risk Solutions Americas, part of Aon Corp. He said most buyers “are not budgeting for increases.”

“The market psyche right now is that when you get down to the level of a business deal, the pricing differential between new and renewal matters,” Andersen said.

Also, the transparency of data today makes it difficult for insurers to spread the effect of losses from one product line to another. Andersen said risk managers are more aware of what causes rates to spike in their line, and what doesn’t. U.S. customers are not willing to pay for Thailand flood losses, for example.

Being strongly-rated does not give a carrier a pass to higher pricing either, he added.

Continuing price competition and a slow economy are additional factors. “There is a firming of prices but there is a lot of activity chasing a static population,” Andersen said.

Michael Sapnar, president and CEO, Transatlantic Holdings, agreed that competition remains a factor, and there are a number N16 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

www.insurancejournal.com

of insurance markets going after a marketplace that isn’t growing.

Sapnar said brokers have a lot of influence over what happens in pricing. However, some question whether brokers are willing to ask customers to pay more.

David McElroy, president, financial and professional products at Arch Insurance, said the three largest brokers need to be convinced to ask for rate increases.

McElroy said it is difficult to articulate why insurers need higher rates, especially when loss cost trends are not rising. “We don’t lay that out. It takes guts.”

Brokers may also be out of practice. “It’s hard to ask for rate hikes if you’ve never had to do it,” said Sapnar, referring to the fact the market has been soft for an extended period.

Sapnar also said brokers have to prepare their clients and get risk managers to budget for increases.

Andersen said that roles get clarified in a hard market. When prices are going down, “being a broker is easy,” he said. But when prices are going up, a broker is more clearly working for the client.

“If customers will accept price increases, then brokers should push for them,” said Jay Gelb, citing workers’ compensation as one line in need of higher rates. Gelb is managing director and senior equities analyst at Barclays Capital, and follows insurance.

88 percent to make it in this market, but they of seismic events, insurers may just have to do not communicate that to underwriters, he pin their hopes on growth in the economy. said, calling this a “disconnect.”

“We are completely tethered to the Gelb said that while low interest rates economy,” McElroy said. “Growth depends may not directly drive pricing, they do influon what the economy does going forward.” ence insurer strategy. For every one-point “GDP drives growth,” Gelb said, indicatdecrease in its investment portfolio, an insur- ing he expects growth of plus one or two er needs two points better in its combined points on top of the GDP for the industry. ratio, according to Gelb.

Andersen said growth Sapnar said it will take would eventually come Some question some insolvencies before from new products, cuswhether brokers there is a hard market. tomers expanding, mergare willing to ask He said that the European ers, even regulatory issues customers to pay debt crisis could help trigthat create liabilities. more. ger a hard market, but that He sees growth in Latin it is “never just one event.”

America, in affinity proMeredith concurred that it would take grams and in the employee benefits area. some insolvencies for the market to harden There is one other factor that could significantly. drive growth: risk.

Sapnar said not to expect reinsurers to “The perception of risk in the world drive a hard market. Reinsurers, he said, do affects growth — the more risk, the more not have the capital or influence they previneed for insurance products,” Meredith ously had. “The days of the tail wagging the said. dog are gone,” he said.

In Andersen’s view, long-term dynamThe industry should not be wishing for a ics are positive. “Customer need around sudden hard market anyway, according to complex risks, the need for insurance, Gelb. “Slow, steady is better,” he said. has never been greater,” he said. But right now, “people are just now sticking their heads out of the foxhole and looking Hopes for Better Economy around.”

Rather than relying on pricing or a series

Some Upward Movement The experts agreed there is some upward pricing movement, especially in property and workers’ compensation. But they disagreed as to whether low interest rates are the reason some insurance prices are increasing.

P/C insurance analyst Brian Meredith, managing director at UBS Securities, credited current price increases in part to low interest rates. Because the Federal Reserve has said interest rates will be low until at least 2014, “companies realize they have to do something and can’t rely on investments.”

Meredith added he does not see significant price increases that would herald a real hard market because loss trends are benign.

But McElroy said low interest rates do not affect pricing. “At underwriting level, nobody cares what interest rates are,” he said.

Carriers may need a combined ratio of 87 or www.insurancejournal.com

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N17

SPOTLIGHT

Home & Auto 5 Things to Know About Classic Car Insurance

W

ith warmer weather around the corner, classic car owners are beginning to take their beloved vehicles out of storage for the driving season.

Agents may find this an opportune time to contact their clients to review their policies and make sure they have the most appropriate coverage for their automoBy McKeel Hagerty biles.

Classic car insurance companies have the ability to offer superior coverage at lower premiums and can provide other benefits specifically tailored to collector cars. Policy options often include repair shop of choice, roadside assistance with guaranteed flatbed towing, and coverage for spare parts and tools.

The main difference between a specialty classic car carrier and a standard auto carrier is the type of policy offered and how the policy accounts for a vehicle’s value. Guaranteed (or agreed) value coverage is typical for most companies specializing in classic car insur-

ance, while a traditional auto policy writes sic car insurance company or consult a price an actual cash value (ACV) or stated value guide. There are a number of classic car price policy. guides available to research current marGuaranteed value coverage means the ket values, including Hagerty Price Guide, owner and insurance provider agree upon NADA and Old Cars Price Guide. the car’s value at the time the policy is issued, and Work with a comClassic car owners that value will not be pany that deals excluare passionate about sively with classic cars. depreciated in the case of their vehicles. a total loss. An ACV or They understand the stated value policy will unique needs associated potentially depreciate the car’s value, reducwith older, collectible vehicles and will usuing the amount of the claim. This difference ally save the client money. Because specialty is particularly important because most clasinsurers recognize that the risk for loss is sic cars appreciate in value over time, while far less in a classic car than in a regular-use most modern cars depreciate. vehicle, the premiums are often much lower.

Also, look for a company that handles Coverage Considerations claims in-house. An in-house claims department makes for more efficient claims hanHere are some tips to consider when selecting insurance cov- dling and ensures that the person handling the claim has experience with the unique erage for your clients’ needs a collector car may require during the classic car(s). repair process.

Classic car owners Roadside assistance should include are passionate about flatbed towing. Classic car owners are their vehicles. Many six times more likely to experience a break collector car owners down than a claim. There are many types of have an emotional roadside assistance programs available along connection to their automobiles. Perhaps with insurance policies, but make sure a guaranteed flatbed tow truck is included to their classic is a famfully protect your vehicle. Flatbed towing ily heirloom or the first car they bought is one of the safest ways to transport a car as a teenager. There because all wheels of the towed vehicle are off of the ground. is often a sentimental value far greater than the actual dollar value.

Always keep a classic car insured.

The opportunity to Many mistakenly assume that the homeowner’s policy will cover the full value of their provide your client car when it is in their garage. It is important the best protection for something they truly to maintain coverage even if the vehicle is at a shop or in storage and not being driven. cherish can make a sigIn the event of fire or theft, your client will nificant impact with them. have to absorb the entire loss if the vehicle isn’t covered.

Properly value the car. It is important to accurately value your client’s vehicle when seeking a classic car insurance Hagerty is the CEO of Hagerty Insurance. Website: www. policy. Speak to a representative at the clashagerty.com.

N18 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

www.insurancejournal.com

SPOTLIGHT

Group Personal Excess Group Personal Excess Policies Give Businesses and Employees Added Protection

By John J. Allen

A

oncoming traffic, causing a headon collision with another vehicle.

Severe injuries are sustained to drivers and passengers in both vehicles, and a multi-milliondollar lawsuit is filed.

• A worker removing leaves from the insured’s gutters is severely injured in a fall, suffering neck and brain injuries. A claim of dangerous work conditions was cited as a factor. A lawsuit is filed and a settlement is reached.

• An insured’s son posts disparaging comments about his high school principal on a blog he maintained, resulting in a lawsuit for defamation of character.

• A family friend dives unknowingly and unwarned in the shallow end of the swimming pool at the insured’s house and suffers paralysis. A lawsuit is filed.

s the economy continues to languish, and competition for revenue becomes fiercer, it is important for companies to retain and protect their key talent. Beyond financial incentives, businesses must consider the full measure of an employee’s lifestyle and needs when contemplating remuneration. One component that should be standard in any benefits portfolio, particularly for executives, is a group personal excess program.

Group personal excess provides participants access to higher limits of excess liability than are typically available in the individual marketplace, with little to no underwriting scrutiny. The assets of high net worth individuals are always vulnerBenefits for Businesses able to lawsuits, but in difficult For companies, there are seveconomic times, the perception eral advantages to introducing a of “deep pockets” can increase group personal excess program. this exposure. Because of the First, it represents a valuestrict underwriting most insuradd to a benefits portfolio as ance carriers apply to high-limit it enables excess policies, a group Group personal excess employees to shore-up a personal allows employers a potential vulexcess procompliment to existing nerability in gram may benefits. their financial afford better planning and compensaasset protection process. tion the only means by which Second, it provides a measure to attain the necessary degree of of organizational stability as it financial protection. enables companies to retain the Consider the following loss investment they’ve made in their scenarios for which a group human capital, even in the event personal excess policy might of a catastrophic claim. respond: Lastly, it recognizes and • While driving, an insured’s addresses the continually blurdaughter crosses the lane into www.insurancejournal.com

ring line separating work and personal time.

While there is a widespread recognition of the need to maintain a diversified portfolio and purchase life insurance as risk management measures in the wealth-building process, excess liability can sometimes be overlooked. Yet it should represent a key component in financial planning.

Be it the result of ignorance of liability’s importance or an inability to obtain adequate limits, a deficiency in this area can result in financial calamity.

Group personal excess can complement benefits such as 401(k) plans or other wealth-building instruments, long term care insurance and group life, as well as provide much-needed coverage for employees.

Risk and randomness converge at an incalculable number of points. In an instant, all that one has worked for can be taken away by an incident arising from carelessness or misfortune.

While no degree of planning can ever completely eliminate such threats, proper coverage can mitigate the impact of loss.

For companies, a liability loss suffered by a key employee can remove services to the enterprise for a considerable period. The all-consuming distraction that

attends the possibility of losing one’s assets can destroy productivity, resulting in a material impact to a business’ bottom line.

While no one can remove the

psychological impact of loss, providing financial security certainly blunts the impact. For little or no cost to the organization, the revenue produced by more senior members can be better protected by providing them a bulwark against financial disaster.

Putting forth benefits that address the needs of both employer and employee is an important strategic consideration for businesses. Group personal excess is the rare product that provides value to all stakeholders in an organization, and is a welcomed addition to any competitive benefits portfolio.

Allen is the business development manager for Chubb Personal Insurance.

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N19

2012 Hospitality Risks Directory

2012

Hospitality Risks Directory

S

earching for the right market for a hardto-place hospitality risk? Look no further than Insurance Journal’s Hospitality Risks Directory — a comprehensive listing of

excess and surplus lines intermediaries and carriers offering hospitality risks coverage nationwide.

The information listed in this directory has been compiled to serve as a resource guide for independent agents and brokers looking for superior markets for everything from nightclubs to special events, hotels to motels, spas, resorts and restaurants too.

All markets profiled in this directory have been updated with the most current information available provided directly by the intermediaries and carriers writing the coverage. IJ has made every attempt to ensure the

accuracy of all information listed in this directory.

To submit a listing for future Hospitality Risks directories, e-mail Kristine Honey at: khoney@insurancejournal.com, or visit: www.insurancejournal.com/ directories. We hope you find IJ’s 2012 Hospitality Risks Directory to be a useful tool when searching for quality markets.

To comment on this directory, or any other IJ resource, please e-mail: editorial@insurancejournal.com. www.insurancejournal.com

Banquet Halls Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Excel Insurance Services, Inc. Founders Insurance Company Gorst Co. IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC

States Available MA RI DE MD NJ PA AZ CA CT AZ CA CO MD NM NV OR TN TX UT VA WA All States TX AZ CA AL CA FL GA LA MS NV NY SC TX CA All States TX All States All States CA All States NJ NY PA All except DC MA MS NM CA TN TX All States All States All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States

Monitor Liability Managers, LLC

All States

Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing

All States FL GA LA TN AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States

Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Professional Liability Ins. Svcs, Inc. - Underwriting Facilities RCA Insurance Group RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance

All States Most- see website for specifics CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL FL GA SC TN CA CT DE FL GA IL MA MD MI MO NJ NY OH PA RI TN

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N21

2012 Hospitality Risks Directory Banquet Halls Market SuiteLife by Venture Programs TAPCO Underwriters, Inc. Tejas American General Agency Topa Insurance Company Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services

Bars/Night Clubs States Available All States AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX CA Most States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT CA

Bars/Night Clubs Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Ashley General Agency Bass Underwriters Bliss & Glennon, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Camford National Insurance Brokers, LLC. Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Crusader Insurance Company Excel Insurance Services, Inc. Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. IMS/London American Indemnity Excess & Surplus Agency Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates

States Available MA RI DE MD NJ PA AZ CA All States CT AZ CA CO MD NM NV OR TN TX UT VA WA All States All States CA TX AL CA FL GA LA MS NV NY SC TX CA All States TX All States All States All States CA All States CA NJ NY PA All States All except DC MA MS NM CA Most States TN TX AZ ID OR WA All States All States All States AZ CA NV All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH

N22 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

Market James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC McClelland and Hine, Inc. Midlands Management of Texas, Inc. Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. National Insurance Underwriters Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Patriot National Underwriters, Inc. Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Property Risk Services (AmWINS) Quaker Special Risk Quirk & Company

RCA Insurance Group (and Taverns) RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Taverns) TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Pinnacle Insurance Services Westrope General Agency (WGA) Westrope Insurance Managers of Florida, LLC Wholesale Connection Insurance Services Yates & Associates Insurance Services

States Available All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States TX Most States All States FL GA LA TN All States All States AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA All States TX All States All States Most States LA NM OK OR TX WA Most- see website for specifics CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL FL GA SC TN CA CT DE FL GA IL MA MD MI MO NJ NY OH PA RI TN AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States AZ CA NV OR All States CA All except Monopolistic All States IL MO AZ CA CO ID MT NM NV OR UT WY CA IA IL KS MO NE FL CA VT CA

www.insurancejournal.com

2012 Hospitality Risks Directory Bed & Breakfasts Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. Anderson & Murison, Inc. Appleby & Sterling Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Excel Insurance Services, Inc. Executive Perils Gorst Co. Gridiron Insurance Underwriters GSS Insurance Services IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC McClelland and Hine, Inc. McGowan Program Administrators

Bed & Breakfasts States Available MA RI DE MD NJ PA CT AZ CA CO MD NM NV OR TN TX UT VA WA All States CA AZ CA NV TX AZ CA AL CA FL GA LA MS NV NY SC TX CA TX All States All States CA All States NJ NY PA All States CA AL CA CO FL GA IL LA MS NC NJ NV NY OR PA SC TX WA CA TN TX All States All States AZ CA NV All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States TX All States

Monitor Liability Managers, LLC

All States

Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing

All States FL GA LA TN All States AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States Most States

Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Philadelphia Insurance Companies Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Specialty (GL & Liquor only) Quirk & Company RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. www.insurancejournal.com

All States All States (no GL in LA) LA NM OK OR TX WA CA All States All States

Market Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC Southern Insurance Underwriters, Inc. CMGA SuiteLife by Venture Programs TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Trinity E&S Insurance Services, Inc. Trivedi-Capacity Associates, LLC U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services

States Available IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL FL GA SC TN All States AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States AZ CA NV OR Most States All States All except Monopolistic All States IL MO CA VT CA

Breweries/Micro Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. All Risks, Ltd. Anderson & Murison, Inc. Appleby & Sterling Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies

States Available MA RI DE MD NJ PA All States CT All States CA AZ CA NV AZ CA AL CA FL GA LA MS NV NY SC TX CA TX All States All States CA

Crump Insurance Services, Inc.

All States

Excel Insurance Services, Inc. Executive Perils Founders Insurance Company Gorst Co. Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson

NJ NY PA All States All except DC MA MS NM CA All States All States All States AZ CA NV All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX

Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc.

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N23

2012 Hospitality Risks Directory Casinos

Breweries/Micro Market Maximum Independent Brokerage, LLC Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Professional Liability Ins. Svcs, Inc. - Underwriting Facilities

RCA Insurance Group RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services

States Available Most States All States FL GA LA TN AZ CA NV All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA All States TX All States All States Most- see website for specifics CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT CA

Casinos Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. All Risks, Ltd. American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Excel Insurance Services, Inc. Executive Perils Fulcrum Insurance Programs Hospitality Insurance Solutions Insential, Inc.

States Available MA RI All States CT All States All States All States CA AL CA FL GA LA MS NV NY SC TX CA TX All States All States NJ NY PA All States All States Most States All States

N24 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

Market Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC Morstan General Agency of Florida II, Inc. National Specialty Underwriters, Inc. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Property Risk Services (AmWINS) RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates SIU, LLC SuiteLife by Venture Programs Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services

States Available All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States CA AK AZ CA HI NV TX Most States All States All States AZ CA NV All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States All States CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE CA All States Most States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT CA

Caterers Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. Anderson & Murison, Inc. Ashley General Agency Bass Underwriters Bliss & Glennon, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies

States Available MA RI AZ CA CT AZ CA CO MD NM NV OR TN TX UT VA WA All States CA TX AL CA FL GA LA MS NV NY SC TX CA All States TX All States All States CA www.insurancejournal.com

2012 Hospitality Risks Directory Dinner Theaters

Caterers Market Crump Insurance Services, Inc. Excel Insurance Services, Inc. Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC McGowan Program Administrators Monitor Liability Managers, LLC Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Professional Liability Ins. Svcs, Inc. - Underwriting Facilities

RCA Insurance Group RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Delis) TAPCO Underwriters, Inc. Tejas American General Agency Topa Insurance Company Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services www.insurancejournal.com

States Available All States NJ NY PA All States All except DC MA MS NM CA Most States TN TX All States All States All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States All States All States All States FL GA LA TN All States AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States All States Most- see website for specifics CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL FL GA SC TN CA CT DE FL GA IL MA MD MI MO NJ NY OH PA RI TN AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX CA Most States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT CA

Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Agency Intermediaries, Inc. All Risks, Ltd. American Specialty Ins. & Risk Services, Inc. Anderson & Murison, Inc. Bass Underwriters Market Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Crusader Insurance Company Excel Insurance Services, Inc. Executive Perils Gorst Co. IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC

States Available MA RI DE MD NJ PA CT All States All States CA AL CA FL GA LA MS NV NY SC TX States Available CA TX All States All States CA All States CA NJ NY PA All States CA TN TX All States All States All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States

Monitor Liability Managers, LLC

All States

Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing

All States FL GA LA TN AZ CA NV All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States Most States

Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Philadelphia Insurance Companies Professional Liability Ins. Svcs, Inc. - Underwriting Facilities RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates SIU, LLC Southern Insurance Underwriters, Inc. CMGA TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc.

All States CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE CA AL FL GA SC TN AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N25

2012 Hospitality Risks Directory Dinner Theaters Market Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Pinnacle Insurance Services Wholesale Connection Insurance Services Yates & Associates Insurance Services

Gentleman’s Clubs States Available AZ CA NV OR All States CA All except Monopolistic All States IL MO AZ CA CO ID MT NM NV OR UT WY CA VT CA

Gentleman’s Clubs Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Bass Underwriters Bliss & Glennon, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Crusader Insurance Company Gorst Co. Excel Insurance Services, Inc. Executive Perils Founders Insurance Company IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC Midlands Management of Texas, Inc. Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. National Insurance Underwriters Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group

States Available MA RI DE MD NJ PA CT AZ CA CO MD NM NV OR TN TX UT VA WA All States All States CA AL CA FL GA LA MS NV NY SC TX CA All States TX All States All States CA All States CA CA NJ NY PA All States All except DC MA MS NM TN TX All States All States All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States Most States All States FL GA LA TN All States All States AZ CA NV CA All States

N26 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

Market Number One Insurance Agency, Inc.

States Available MA

Pacific Excess Insurance Marketing

AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA

Partners Specialty Group, LLC Patriot National Underwriters, Inc. Property Risk Services (AmWINS) RCA Insurance Group RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri)

All States TX All States Most- see website for specifics CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States AZ CA NV OR All States CA All States IL MO CA IA IL KS MO NE FL GA NC SC CA VT CA

S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Westrope General Agency (WGA) Westrope Insurance Managers of Florida, LLC Wholesale Connection Insurance Services Yates & Associates Insurance Services

Hotels/Motels Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies CITA Insurance Services Compass Insurance Group of Agencies Crump Insurance Services, Inc. Crusader Insurance Company

States Available MA RI DE MD NJ PA AZ CA All States CT AZ CA CO MD NM NV OR TN TX UT VA WA All States All States CA AZ CA NV TX AZ CA AL CA FL GA LA MS NV NY SC TX CA TX All States All States All States CA All States CA www.insurancejournal.com

2012 Hospitality Risks Directory Hotels/Motels Market Excel Insurance Services, Inc. Executive Perils Fulcrum Insurance Programs Gorst Co. Gray-Stone & Company, Inc. Gridiron Insurance Underwriters HCC Specialty (CA) Hospitality Insurance Solutions Hotels & Resorts Insurance Program – Cita Insurance Services IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies

Hotels/Motels States Available NJ NY PA All States All States CA Most States AL CA CO FL GA IL LA MS NC NJ NV NY OR PA SC TX WA Most States Most States All States TN TX All States All States All States AZ CA NV All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV

Klein Insurance Services, Inc.

All States

KZ Insurance Brokerage, LLC Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC McClelland and Hine, Inc. McGowan Program Administrators Midlands Management of Texas, Inc. Monitor Liability Managers, LLC Morstan General Agency of Florida II, Inc. Motel Insurance Brokers, Inc. N-Surance Outlets, Inc. National Specialty Underwriters, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC New Empire Group NIF Group Number One Insurance Agency, Inc. Partners Specialty Group, LLC Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Specialty (GL & Liquor only) Property Risk Services (AmWINS) Quaker Special Risk Quirk & Company RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri)

AZ CA CO LA NV TN CA AK AZ CA HI NV TX Most States TX All States Most States All States All States Most States FL GA LA TN All States All States AZ CA NV CA All States All States MA All States TX All States

S A Freerks & Associates S.H. Smith & Company, Inc. Sangamon Associates/Hotel Excess

www.insurancejournal.com

All States All States (no GL in LA) All States Most States LA NM OK OR TX WA CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States All States

Market SIU, LLC Southern Insurance Underwriters, Inc. CMGA Stonebridge Underwriters, Inc. SuiteLife by Venture Programs TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Travelers Trinity E&S Insurance Services, Inc. Trivedi-Capacity Associates, LLC U.S. Risk Insurance Group, Inc.

States Available CA AL FL GA SC TN Most States All States AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States All States AZ CA NV OR Most States All States

UCA General Insurance Services, Inc.

AZ CA ID IL NM NV OR UT WA

Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Pinnacle Insurance Services

CA All except Monopolistic All States IL MO AZ CA CO ID MT NM NV OR UT WY All States CA IA IL KS MO NE FL CA VT CA

Westrope Westrope General Agency (WGA) Westrope Insurance Managers of Florida, LLC Wholesale Connection Insurance Services Yates & Associates Insurance Services

Resorts Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. All Risks, Ltd. Anderson & Murison, Inc. Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies CITA Insurance Services Compass Insurance Group of Agencies Crump Insurance Services, Inc. Excel Insurance Services, Inc. Executive Perils Fulcrum Insurance Programs Gorst Co. Gray-Stone & Company, Inc. Hospitality Insurance Solutions Hotels & Resorts Insurance Program – Cita Insurance Services IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc.

States Available MA RI All States CT All States CA AZ CA AL CA FL GA LA MS NV NY SC TX CA TX All States All States All States CA All States NJ NY PA All States All States CA Most States Most States All States TN TX All States All States All States

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N27

2012 Hospitality Risks Directory Resorts Market J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC

Restaurants States Available AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States

Monitor Liability Managers, LLC

All States

Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. National Specialty Underwriters, Inc. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing

All States FL GA LA TN All States AZ CA NV All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States Most States

Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Philadelphia Insurance Companies Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Specialty (GL & Liquor only) Quaker Special Risk RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates SIU, LLC Southern Insurance Underwriters, Inc. CMGA SuiteLife by Venture Programs TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Travelers Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program Yates & Associates Insurance Services

All States All States (no GL in LA) Most States CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE CA AL FL GA SC TN All States AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States All States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT All States CA

Restaurants Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property

States Available MA RI DE MD NJ PA AZ CA All States

N28 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

Market Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. Alliant Specialty Insurance Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Crusader Insurance Company Excel Insurance Services, Inc. Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. GSS Insurance Services HCC Specialty (CA) HCC Specialty (MA) IMS/London American Indemnity Excess & Surplus Agency Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies IPC (includes Food Delivery) Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies KZ Insurance Brokerage, LLC

States Available Agency CT AZ CA CO MD NM NV OR TN TX UT VA WA All States CA All States CA AZ CA NV TX AZ CA AL CA FL GA LA MS NV NY SC TX CA All States TX All States All States CA All States CA NJ NY PA All States All except DC MA MS NM CA Most States CA Most States All States TN TX AZ ID OR WA All States All States All States AZ CA NV All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV AZ CA CO LA NV TN

Klein Insurance Services, Inc.

All States

Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC Meadowbrook Insurance Group Midlands Management of Texas, Inc. Monitor Liability Managers, LLC

CA AK AZ CA HI NV TX Most States All States Most States All States

Morstan General Agency of Florida II, Inc.

All States

McClelland and Hine, Inc. McGowan Program Administrators N-Surance Outlets, Inc. National Insurance Underwriters Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing

TX All States FL GA LA TN All States All States AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA www.insurancejournal.com

2012 Hospitality Risks Directory Restaurants Market Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Specialty (GL & Liquor only) Property Risk Services (AmWINS) Quaker Special Risk Quirk & Company RCA Insurance Group RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance SuiteLife by Venture Programs TAPCO Underwriters, Inc.

Spas States Available TX All States All States All States (no GL in LA) All States Most States LA NM OK OR TX WA Most- see website for specifics CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL FL GA SC TN CA CT DE FL GA IL MA MD MI MO NJ NY OH PA RI TN All States AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA All States TX CA Most States All States AZ CA NV OR All States

Market Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies Crump Insurance Services, Inc. Excel Insurance Services, Inc. Executive Perils Fulcrum Insurance Programs Gorst Co. Gray-Stone & Company, Inc. IMS/London American Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies

UCA General Insurance Services, Inc.

AZ CA ID IL NM NV OR UT WA

Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Maximum Independent Brokerage, LLC Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. National Specialty Underwriters, Inc. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing

Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Pinnacle Insurance Services

CA All except Monopolistic All States IL MO AZ CA CO ID MT NM NV OR UT WY All States CA IA IL KS MO NE FL GA NC SC CA VT CA

Patriot National Underwriters, Inc. Philadelphia Insurance Companies Professional Liability Ins. Svcs, Inc. - Underwriting Facilities RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri)

Target Market Specialists Tejas American General Agency Topa Insurance Company Towerstone, Inc. Travelers Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc.

Westrope Westrope General Agency (WGA) Westrope Insurance Managers of Florida, LLC Wholesale Connection Insurance Services Yates & Associates Insurance Services

Spas Market A.I.I. Insurance Brokerage of Mass., Inc. Agency Intermediaries, Inc. All Risks, Ltd. American Safety Insurance Services, Inc. Anderson & Murison, Inc. Appleby & Sterling Ashley General Agency Bass Underwriters Bliss & Glennon, Inc. www.insurancejournal.com

States Available MA RI CT All States All States except CT DE IA CA AZ CA NV TX AL CA FL GA LA MS NV NY SC TX CA

S A Freerks & Associates SASSI - Salon & Spa Specialty Insurance SIU, LLC Southern Insurance Underwriters, Inc. CMGA SuiteLife by Venture Programs TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services

States Available All States TX All States All States CA All States NJ NY PA All States All States CA Most States TN TX All States All States All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV CA AK AZ CA HI NV TX Most States All States FL GA LA TN All States AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX Most States All States CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE Most States CA AL FL GA SC TN All States AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT CA

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N29

2012 Hospitality Risks Directory Special Events Market A.I.I. Insurance Brokerage of Mass., Inc. Aberdeen Insurance Group, Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Ashley General Agency Bass Underwriters Bliss & Glennon, Inc. Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Compass Insurance Group of Agencies

Special Events States Available MA RI DE MD NJ PA AZ CA CT AZ CA CO MD NM NV OR TN TX UT VA WA All States All States All States CA TX AL CA FL GA LA MS NV NY SC TX CA All States TX All States All States CA

Crump Insurance Services, Inc.

All States

Direct Event Insurance Excel Insurance Services, Inc. Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. HCC Specialty (MA) IMS/London American Indemnity Excess & Surplus Agency Insential, Inc. Insurance Multiplex Agency, LLC International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson

All States NJ NY PA All except DC MA MS NM CA Most States All States TN TX AZ ID OR WA All States All States All States All States AL AR GA IA IL IN KS KY MI MO MS NC NE OH OK PA SC TN VA WI WV OH All States DE FL MA MD NJ NY OH PA RI WV All States CA AK AZ CA HI NV TX

Jacobs & Associates James River Insurance Company Jimcor Agencies K & K Insurance Group, Inc. Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc.

N30 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

Market Maximum Independent Brokerage, LLC McClelland and Hine, Inc. McGowan Program Administrators Midlands Management of Texas, Inc. Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. Network E&S Insurance Brokers, LLC NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. People’s United Insurance Agency, Inc. Philadelphia Insurance Companies Property Risk Services (AmWINS) Quirk & Company RIC Insurance General Agency, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) S A Freerks & Associates S.H. Smith & Company, Inc. SIU, LLC Southern Insurance Underwriters, Inc. CMGA TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Trinity E&S Insurance Services, Inc. U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Yates & Associates Insurance Services

States Available Most States TX All States Most States All States FL GA LA TN All States AZ CA NV CA All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX All States Most States All States LA NM OK OR TX WA CA All States All States IL IN OH AR IA IL IN KS KY MO OK TN AR IA IL KS MO NE All States CA AL FL GA SC TN AL CA DC DE FL GA LA MD MS NC NH NJ NY OH OR PA SC TN TX VA VT WA TX Most States AZ CA NV OR All States All except Monopolistic All States IL MO CA VT CA

www.insurancejournal.com

2012 Hospitality Risks Directory - Alphabetical Directory of Markets

2012 HospitalityCrump Risks Directory Insurance Services, Inc.

A.I.I. Insurance Brokerage of Mass., Inc.

Appleby & Sterling

183 Davis St., P.O. Box 1139, Douglas, MA 01516 Phone: 508-476-1990, Fax: 508-476-1991 Email: info@agencyint.com www.agencyint.com

2251 - A Ward Ave., Simi Valley, CA 93065 Phone: 805-583-9828, Fax: 805-583-9832 Email: mike@applebyandsterling.com www.applebyandsterling.com

Aberdeen Insurance Group, Inc.

Ashley General Agency

1364 Welsh Rd., Ste. C110, North Wales, PA 19454 Phone: 800-845-4150, Fax: 215-641-1456 Email: submission@insure-mail.com www.aberdeeninsgrp.com

2251 - A Ward Ave., Simi Valley, CA 93065 Phone: 936-441-5959, Fax: 936-441-5922 Email: hnelson@ashleyga.com www.ashleyga.com

Abram Interstate Ins. Services, Inc.

Atlas General Insurance Services, LLC

- All Offices

See Website for Locations Headquarters - Roseland, NJ 07068 Phone: 877-247-9772, Fax: 321-757-6147 Email: TheOne@crumpins.com www.crumpins.com

Crusader Insurance Company

2211 Plaza Dr., Ste. 100, Rocklin, CA 95765 Phone: 916-780-7000, Fax: 916-780-7181 Email: media@abraminterstate.com www.abraminterstate.com

8954 Rio San Diego Dr., Ste. 600, San Diego, CA 92108 Phone: 877-66-ATLAS, Fax: 619-814-8914 Email: info@atlas.us.com www.atlas.us.com

ACE Westchester Specialty--Property

Bass Underwriters

San Francisco: Caroline Barwick - Phone: 415-547-4568 Email: caroline.barwick@acegroup.com Atlanta: John Lavin - Phone: 678-795-4022 Email: wsgatl.property@acegroup.com www.acewestchester.com

6951 W. Sunrise Blvd., Plantation, FL 33313 Phone: 954-473-4488, Fax: 954-316-3100 Email: bturgeon@bassuw.com www.bassuw.com

Agency Intermediaries, Inc.

435 N. Pacific Coast Hwy, Redondo Beach, CA 90277 Phone: 800-829-7330, Fax: 310-372-1903 Email: info@bgsurplus.com www.bgsurplus.com

1575 Boston Post Rd., P.O. Box 451 Guilford, CT 06437 Phone: 203-453-2859, Fax: 203-453-8859 Email: info@agencyint.com www.agencyint.com

Agostini Wholesale Insurance Services 333 E. Main St., El Cajon, CA 92040 Phone: 800-922-7283, Fax: 619-593-2075 Email: teresa@agostinisurplus.com www.agostiniwholesale.com

23251 Mulholland Dr., Woodland Hills, CA 91364 Phone: 800-669-9800, Fax: 818-591-9856 Email: dklayman@crusaderinsurance.com www.crusaderinsurance.com

Direct Event Insurance 1409 S. Lamar, Ste. 1007, Dallas, TX 75215 Phone: 800-481-7950 Email: bwarren@helioscoverage.com www.directeventinsurance.com

Excel Insurance Services, Inc. 100 American Metro Blvd., Ste. 104, Hamilton, NJ 08619 Phone: 877-530-0111, Fax: 609-538-0661 Email: mail@excelins.com www.excelins.com

Bliss & Glennon, Inc.

Executive Perils

Braishfield Associates, Inc. 2966 Commerce Park Dr., Ste. 350, Orlando, FL 32819 Phone: 407-825-9911, Fax: 407-825-9737 Email: info@braishfield.com www.braishfield.com

11845 W. Olympic Blvd., Ste. 750 Los Angeles, CA 90064 Phone: 310-444-9333 x 145, Fax: 310-444-9355 Email: damienm@eperils.com www.eperils.com

All Risks, Ltd. 10150 York Rd., 5th Fl, Hunt Valley, MD 21030 Phone: 800-366-5810, Fax: 410-828-8179 Email: hhobbie@allrisks.com www.allrisks.com

Alliant Specialty Insurance Services, Inc. P.O. Box 609015, San Diego, CA 92160 Phone: 858-505-4011, Fax: 858-505-4074 Email: marketing@alliantspecialty.com www.alliantspecialty.com

American Safety Insurance Services, Inc. 100 Galleria Pkwy. SE, Ste. 700, Atlanta, GA 30339 Phone: 800-388-3647, Fax: 770-955-8339 Email: info@amsafety.com www.amsafety.com

American Specialty Insurance & Risk Services, Inc. 142 N. Main St., Roanoke, IN 46783 Phone: 260-672-8800, Fax: 260-672-8835 Email: dsmith@amerspec.com www.amerspec.com

AmWINS Group, Inc. - 50 Offices Nationwide See Website for Locations Headquarters - Charlotte, NC 28210 Phone: 704-749-2700, Fax: 704-943-9000 Email: marketing@amwins.com www.amwins.com

Anderson & Murison, Inc. 800 W. Colorado Blvd., Los Angeles, CA 90041 Phone: 323-255-2333, Fax: 323-255-0957 Email: james.mccarthy@andersonmurison.com www.andersonmurison.com www.insurancejournal.com

Brecht & Associates 1450 Hughes Rd., Ste. 109, Grapevine, TX 76051 Phone: 817-424-5335, Fax: 817-424-3772 Email: jbrecht@brechtassoc.com www.brechtassoc.com

Burns & Wilcox - All Offices See website for addresses Headquarters - Detroit/Farmington Hills Phone: 248-932-9000, Fax: 248-932-9046 Email: quote@burns-wilcox.com www.burnsandwilcox.com

Founders Insurance Company 1111 E. Touhy Ave., Des Plaines, IL 60018 Phone: 800-768-0040, Fax: 847-296-3362 Email: marketing@foundersinsurance.com www.foundersinsurance.com

Founders is a multi-state specialty carrier, serving the insurance needs of independent agents for over 100 years. Founders specializes in writing liquor liability and general liability coverages for the hospitality industry. Founders is rated “A-” or “Excellent” by A.M. Best, and is a member of the Utica National Insurance Group.

Capitol Insurance Companies 1600 Aspen Commons, Middleton, WI 53562 Phone: 608-829-4208, Fax: 608-829-7408 Email: marketing-agency@capitol.net www.capitol.net

CITA Insurance Services 681 S. Parker St., Orange, CA 92868 Phone: 714-939-7420, Fax: 714-939-7437 Email: sbaxter@citainsurance.com www.citainsurance.com

Compass Insurance Group of Agencies 9310 Topanga Canyon Blvd., Chatsworth, CA 91311 Phone: 818-507-1980, Fax: 818-545-3818 Email: mail@compasseands.com

Fulcrum Insurance Programs 11235 SE 6th St., Bellevue, WA 98004 Phone: 425-453-5157, Fax: 425-454-8233 Email: drowland@fulcrumprograms.com www.fulcrumprograms.com

Fulcrum is an insurance program administrator and specialty wholesale broker dedicated to serving the insurance and risk management needs of select industries. We specialize in programs for hospitality and real estate including apartments, condos, hotels, resorts, casinos and more.

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N31

2012 Hospitality Risks Directory - Alphabetical Directory of Markets

2012 Hospitality Risks Directory International Excess Companies

Gorst Co.

9310 Topanga Canyon Blvd., Chatsworth, CA 91311 Phone: 818-507-0900, Fax: 818-507-1133 Email: mail@gorst.com www.gorst.com

26451 Curtiss Wright Pkwy, Ste. 103 Cleveland, OH 44143 Phone: 216-797-9700, Fax: 216-797-9970 Email: kennethkukral@intlxs.com www.internationalexcess.com

Lionheart Insurance Services, Inc. P.O. Box 8201, Calabasas, CA 91372-8201 Phone: 818-591-3010, Fax: 818-591-3066 Email: lionheartins@msn.com

Gray-Stone & Company, Inc. 275 E. Hillcrest Dr., Ste. 250, Thousand Oaks, CA 91360 Phone: 805-494-4440, Fax: 805-494-8798 Email: info@gray-stone.com ; hstone@gray-stone.com www.gray-stone.com

IPC P.O. Box 1150, Gardnerville, NV 89410 Phone: 775-782-6655, Fax: 775-782-6654 Email: chris@ipc-nv.com www.ipc-nv.com

Gridiron Insurance Underwriters 6951 W. Sunrise Blvd., Ste. 104, Plantation, FL 33313 Phone: 954-473-3728, Fax: 954-316-3132 Email: info@gridironins.com www.gridironins.com

GSS Insurance Services P.O. Box 402569, Hesperia, CA 92340 Phone: 760-947-5500, Fax: 909-494-7854 Email: info@gssinsurance.com www.gssinsurance.com

Izzo Insurance Services, Inc. 7234 W. North Ave., Elmwood Park, IL 60707 Phone: 800-800-1704, Fax: 708-452-1777 Email: info@izzoinsurance.com www.izzoinsurance.com

J.M. Wilson

M.J. Hall & Company, Inc. P.O. Box 192, Stockton, CA 95201 Phone: 209-948-8108, Fax: 209-465-3843 Email: angela@mjhallandcompany.com www.mjhallandcompany.com

8036 Moorsbridge Rd., Portage, MI 49024 Phone: 800-282-8113, Fax: 269-327-2620 Email: cbaldwin@jmwilson.com www.jmwilson.com

Wholesale Broker/MGA with 60+ markets with emphasis on Bar/ Restaurant/Nightclub risks. In business since 1973, writing business in AK, AZ, CA, NV, TX & LA

Jacobs & Associates

Maximum Independent Brokerage, LLC

8300 Dow Circle, Strongsville, OH 44136 Phone: 440-625-2690, Fax: 440-625-2731 Email: jim@jacobsnow.com www.jacobsnow.org

222 S. Riverside Plaza, Ste. 2340, Chicago, IL 60606 Phone: 312-559-9348, Fax: 312-559-0930 Email: joem@maxib.com www.maxbrokerage.com

HCC Specialty (CA) 50 California St, 13th Fl, San Francisco, CA 94111 Phone: 415-277-2642, Fax: 415-288-0771 Email: amccarthy@hcc.com www.hcc.com ; www.hccsu.com (Special Events)

HCC Specialty (MA)

McClelland and Hine, Inc.

401 Edgewater Pl., Ste. 400, Wakefield, MA 01880 Phone: 800-927-6306, 781-994-6001 Email: mmatheson@hcc.com www.hccspecialty.com

P.O. Box 700930, San Antonio, TX 78270 Phone: 210-366-2500, Fax: 210-366-2407 Email: gil@mhi-tx.com www.mhi-tx.com

Hospitality Insurance Solutions 100 Broadway, Ste. 2D, Sterling, CO 80751 Phone: 866-286-5889, Fax: 970-522-7792 Email: gdennington@hospitalityins.com www.hospitalityins.com

Hotels & Resorts Insurance Program – Cita Insurance Services 681 S. Parker St., Ste. 300, Orange, CA 92868 Phone: 714-939-7420, Fax: 714-939-7437 Email: sbaxter@citainsurance.com www.citainsurance.com

James River Insurance Company 6641 W. Broad St., Ste. 300, Richmond, VA 23230 Phone: 804-289-2700, Fax: 804-549-5087 Email: info@jamesriverins.com www.jamesriverins.com

Jimcor Agencies 60 Craig Rd., Montvale, NJ 07645 Phone: 201-573-8200, Fax: 201-573-8820 Email: dchiapperino@jimcor.com www.jimcor.com

IMS/London American 11000 Richmond Ave., Ste. 600, Houston, TX 77042 Phone: 713-243-4360 , Fax: 713-977-7606 Email: Larry@ImsLondonAmerican.com www.ImsLondonAmerican.com

Indemnity Excess & Surplus Agency

K & K Insurance Group, Inc. 1712 Magnavox Way, Ft. Wayne, IN 46804 Phone: 877-648-6404, Fax: 260-459-5502 Email: kk_general@kandkinsurance.com www.eventinsurance-kk.com

1500 NW Bethany Blvd., Ste. 235, Beaverton, OR 97006 Phone: 503-526-9700 , Fax: 503-626-2260 Email: submissions@ies-xs.com www.ies-xs.com

Insurance Multiplex Agency, LLC 365 W. Passaic St., Ste. 260, Rochelle Park, NJ 07662 Phone: 201-880-1891, Fax: 201-880-1895 Email: inquiry@insurancemultiplex.com www.insurancemultiplex.com

Old Forge Ctr, 20595 Lorain Rd. Fairview Park, OH 44126 Phone: 440-333-6300, Fax: 440-333-3214 Email: syoung@mcgowaninsurance.com www.mcgowaninsurance.com

MPA is a Managing General Underwriter and Program Manager that designs, administers and markets highly-specialized programs of insurance. These programs of insurance are available exclusively through MPA on a nationwide basis. All programs are offered on admitted paper through a variety of America’s leading “A” rated insurance companies.

Meadowbrook Insurance Group 26255 American Dr., Southfield, MI 48034 Phone: 248-358-1100, Fax: 248-358-1614 Email: pgajewski@meadowbrook.com www.meadowbrook.com

Insential, Inc. See Website for Locations in IL, NY, TX Headquarters - Plano TX 75024 Phone: 888-571-6160 Email: liquorsubmissions@insential.com www.insential.com

McGowan Program Administrators

Klein Insurance Services Inc. One Garret Mountain Plaza, Woodland Park, NJ 07424 Phone: 888-870-2997, Fax: 973-754-0600 Email: jonathanK@kis-hospitality.com www.kis-hospitality.com

Midlands Management of Texas, Inc. P.O. Box 794878, Dallas, TX 75379 Phone: 972-588-2000, Fax: 972-588-2020 Email: jcaldwell@midmantx.com www.midlandsmgt.com

Program administrator for Westport (Swiss Re) and Praetorian.

Admitted paper. Pkg and Mono-line.

N32 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

www.insurancejournal.com

2012 Hospitality Risks Directory - Alphabetical Directory of Markets

2012 HospitalityQuaker Risks Directory Special Risk

New Empire Group

25 Nassau Lane, Island Park, NY 11558 Phone: 516-431-8300, Fax: 516-431-5351 Email: jimo@newempiregroup.com www.newempiregroup.com

See Website for Locations in NJ, NY, FL, MA Headquarters - Eatontown, NJ 07724 Phone: 800-447-4180, Fax: 732-223-9072 Email: fwalsh@qsr-insurance.com www.quakerspecialrisk.com

NIF Group

Monitor Liability Managers, LLC 2850 W. Golf Rd., Ste. 800, Rolling Meadows, IL 60008 Phone: 800-446-2100 x 557, Fax: 847-806-6282 Email: contactus@monitorliability.com www.monitorliability.com

Monitor offers an Employment Practices Liability (EPL) program specifically for the hospitality industry including restaurants, hotels & motels, resorts, bed & breakfasts, banquet halls and caterers.

Morstan General Agency of Florida II, Inc.

Quirk & Company

30 Park Ave., Manhasset, NY 11030 Phone: 516-365-7440, Fax: 516-365-7392 Email: marketing@nifgroup.com www.nifgroup.com

P.O. Box 792030, San Antonio, TX 78279 Phone: 800-299-9421, Fax: 210-340-4075 Email: rquirk@quirkco.com www.quirkco.com

Number One Insurance Agency, Inc. 91 Cedar St., Milford, MA 01757 Phone: 508-634-2902, Fax: 508-634-2930 Email: atobin@massagent.com www.massagent.com

Pacific Excess Insurance Marketing

1835 Banks Rd., Margate, FL 33063 Phone: 800-261-5177, Fax: 516-302-8951 Email: pwoodard@morstan.com www.morstan.com

6363 Katella Ave., Cypress, CA 90630 Phone: 800-222-5582, Fax: 714-228-7838 Email: marketing@pacificexcess.com www.pacificexcess.com

Motel Insurance Brokers, Inc.

Pacific Excess Insurance Marketing is a Wholesaler/General Agent with access to many Standard, Surplus Lines and Workers’ Compensation Markets in 19 states.

719 Rodel Cove, Ste. 1031, Lake Mary, FL 32746 Phone: 866-387-8883, Fax: 800-466-5074 Email: info@motelinsurancebrokers.com www.motelinsurancebrokers.com

N-Surance Outlets, Inc. 1792 Woodstock Rd., Bldg. 200, Roswell, GA 30075 Phone: 770-971-9975, Fax: 770-971-7608 Email: jmurrey@nsoins.com www.nsoins.com

National Insurance Underwriters 800 Yamato Rd., Ste. 100, Boca Raton, FL 33431 Phone: 800-338-2680 x 507, Fax: 561-226-1123 Email: commercialbiz@niuw.com www.niuw.com

National Specialty Underwriters, Inc. 10900 NE 4th St., Ste. 1100 Bellevue, WA 98004 Phone: 425-450-1090, Fax: 425-450-1026 Email: info@nsui.com www.nsui.com

Nautilus Insurance Co. & Great Divide Ins. Co. 7233 E. Butherus Dr., Scottsdale, AZ 85260 Phone: 480-951-0905, Fax: 480-951-9730 Email: bmckrill@nautilus-ins.com www.nautilusinsgroup.com

NeitClem Wholesale Ins. Brokerage, Inc. 7442 N. Figueroa St., Los Angeles, CA 90041 Phone: 323-258-2600, Fax: 323-258-2676 Email: jcenteno@neitclem.com www.neitclem.com

Network E&S Insurance Brokers, LLC 160 N. Riversice Dr., Ste. 200 Anaheim Hills, CA 92808 Phone: 714-820-4606, Fax: 714-820-4503 Email: submissions@networkeands.com www.networkeands.com

3104 Creekside Village Dr., Ste. 501, Kennesaw, GA 30144 Phone: 770-424-5770 Email: jonathan@ram-insurance.com www.ram-insurance.com

P.O. Box 803143, Dallas, TX 75380 Phone: 972-239-1458, Fax: 972-233-3487 Email: corky.ellis@patriotnational.com www.patriotnational.com

Risk Placement Services, Inc.

People’s United Insurance Agency, Inc.

5001 Spring Valley Rd., Ste. 255W, Dallas, TX 75244 Phone: 972-774-0110, Fax: 972-341-8250 Email: malcolm_coffee@rpsins.com www.rpsins.com

P.O. Box 485, Burlington, VT 05402 Phone: 800-639-7526, Fax: 802-652-6245 Email: programs@peoples.com www.peoples.com/insurance

Philadelphia Insurance Companies One Bala Plaza, Bala Cynwyd, PA 19004 Phone: 800-873-4552, Fax: 610-617-7940 Email: phlysales@phlyins.com www.phly.com

Professional Liability Insurance Svcs, Inc. Underwriting Facilities

Property Risk Services (AmWINS) 91 Fieldcrest Ave., 2nd Fl, Edison, NJ 08818 Phone: 908-766-4300, Fax: 732-346-0131 Email: tspinner@prsins.com www.amwins.com

www.insurancejournal.com

Risk Alternatives & Management (RAM)

Patriot National Underwriters, Inc.

111 N. Canal, Ste. 801, Chicago, IL 60606 Phone: 312-262-3331, Fax: 312-262-3301 Email: mniemann@promontspecialty.com www.promontspecialty.com

MGA/PA with admitted and non-admitted programs for Restaurants, Taverns, Bar, Nightclubs, Social/Fraternal Clubs and additional hospitality risks.

2492 Walnut Ave., Ste. 250, Tustin, CA 92780 Phone: 800-310-1303, Fax: 800-842-3076 Email: ricins@ric-ins.com www.ric-ins.com

100 Tournament Dr., Ste. 214, Horsham PA 19044 Phone: 484-322-0400, Fax: 484-322-0401 Email: mcaviston@psgins.com www.www.psgins.com

Promont Specialty

1333 Broad St., Clifton, NJ 07013 Phone: 800-526-0147 x 239 Email: mmaher@rca-insurance.com www.rca-insurance.com

RIC Insurance General Agency, Inc.

Partners Specialty Group, LLC

5802 Thunderbird, Bldg 10, Ste. 100 Lago Vista, TX 78645 Phone: 800-761-7547, Fax: 512-327-5834 Email: underwriting@plisinc.com www.plisinc.com

RCA Insurance Group

Roush Insurance Services, Inc. P.O. Box 1060, Noblesville, IN 46061 Phone: 800-752-8402, Fax: 317-776-6891 Email: info@roushins.com www.roushins.com

RSI International, Inc. (Missouri) 273 Clarkson Rd., Ste. 102, Ellisville, MO 63011 Phone: 636-391-4841, Fax: 636-391-2115 Email: newquotes@rsimo.com www.rsimo.com

S A Freerks & Associates 911 Park Ave., St. Louis, MO 63104 Phone: 314-436-2682, Fax: 314-436-1532 Email: sfreerks@safains.com www.safains.com

S.H. Smith & Company, Inc. - 7 Offices Nationwide See Website for Locations Headquarters - Hartford, CT 06103 Phone: 860-561-3600, Fax: 800-329-7648 Email: info@shsmith.com www.shsmith.com

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N33

2012 Hospitality Risks Directory - Alphabetical Directory of Markets

2012 Hospitality Risks Directory Towerstone, Inc.

Sangamon Associates/Hotel Excess

W.A. Schickedanz Agency, Inc.

65 S. Main St., Ste. A300, Pennington, NJ 08534 Phone: 609-818-9534, Fax: 609-818-9535 Email: bcleave@sangamonassociates.com www.hotelexcess.com

14185 Dallas Pkwy, Ste. 1000, Dallas, TX 75254 Phone: 972-725-2100, Fax: 972-725-2101 Email: info@towerstonecorp.com www.towerstonecorp.com

300 W. Main St., Belleville, IL 62220 Phone: 618-233-0644, Fax: 618-233-0672 Email: sales@waschickedanz.com www.waschickedanz.com

SASSI - Salon & Spa Specialty Insurance

Travelers

Western Pinnacle Insurance Services

21 Maple Ave., Bay Shore, NY 11706 Phone: 888-823-9380, Fax: 631-666-7646 Email: info@brownyard.com www.sassiagency.com

Contact your local Commercial Accounts Representative for more information. www.travelers.com

600 W. Shaw Ave., Ste. 400, Fresno, CA 93704 Phone: 559-221-2050, Fax: 559-225-2066 Email: fresno@ampinn.com www.ampinn.com

Trinity E&S Insurance Services, Inc. SIU, LLC 700 N. Brand Blvd., Ste. 300, Glendale, CA 91203 Phone: 818-547-1333, Fax: 818-547-4450 Email: jlewis@siumanagers.com www.siumanagers.com

79-301 Country Club Dr., Ste. 200 Bermuda Dunes, CA 92203 Phone: 760-360-4100, Fax:760-360-0055 Email: mstith@trinityinsurance.com www.trinityinsurance.com

Southern Insurance Underwriters, Inc. CMGA

1100 Walnut St., Ste. 3200, Kansas City, MO 64106 Phone: 816-842-8222, Fax: 816-842-3081 Email: info@westrope.com www.westrope.com

4500 Mansell Rd., Alpharetta, GA 30022 Phone: 800-568-1700, Fax: 678-498-4610 Email: marketing@siuins.com www.siuins.com

Specialty Insurance

Trivedi-Capacity Associates, LLC

1610 Route 88 Ste. 102, Brick, NJ 08724 Phone: 732-701-8900, Fax: 732-458-3728 Email: mwatters@specialtyagency.com www.specialtyagency.com

(Addt’l cvg listing: EPLI for Hotel/Motel/Restaurant) One International Blvd., Mahwah, NJ 07495 Phone: 201-661-2411, Fax: 201-661-7383 Email: trivedi@tcacoverage.com www.tcacoverage.com/umbrella_program_Trivedi_2010.pdf

Stonebridge Underwriters, Inc. 6425 Sycamore Ct. N, Maple Grove, MN 55369 Phone: 877-965-0123, Fax: 651-365-0124 Email: bmeyer@stonebridgeuw.com www.stonebridgeuw.com

U.S. Risk Insurance Group, Inc. 10210 N. Central Expy, Ste. 500, Dallas, TX 75231 Phone: 800-232-5830, Fax: 214-265-4976 Email: julieb@usrisk.com www.usrisk.com

SuiteLife by Venture Programs

TAPCO Underwriters, Inc. is the Logical Choice. Through TAPCO’s exclusive call-center service model, quotes and applications are delivered and coverage can be bound, all within minutes, and all delivered to your e-mail inbox—before you even hang up the phone. Policy issuance and renewal is just as easy. Call. Quote. Bind. It’s as easy as that!

Tejas American General Agency

6363 Katella Ave., Cypress, CA 90630 Phone: 800-222-5582, Fax: 714-228-7855 Email: marketing@ucageneral.com www.ucageneral.com

UCA General Insurance is a Managing General Agent writing Program Business in 9 states. Our primary focus is on Property & Casualty Business, specializing in Restaurants, Hotels & Motels, Condos & HOAs, Shopping Centers and more.

Unifax Insurance Systems, Inc. 23251 Mulholland Dr., Woodland Hills, CA 91364 Phone: 800-669-9800, Fax: 818-591-9856 Email: dklayman@crusaderinsurance.com www.crusaderinsurance.com

255 NW Blue Pkwy, Ste. 200, Lee’s Summit, MO 64063 Phone: 816-246-1200, Fax: 816-246-1290 Email: dmcclendon@westrope.com www.westrope.com

Wholesale Connection Insurance Services 5959 Topanga Canyon Blvd., Ste. 250 Woodland Hills, CA 91367 Phone: 818-716-9800, Fax: 818-716-9899 www.wcis-ins.com

Willis Programs, ResortGuard Ins. Program 30030 N. Rocky Point Dr. W, Ste. 770, Tampa, FL 33607 Phone: 813-712-7017, Fax: 813-712-7001 Email: willisnhprograms@willis.com www.resortguard.com

Yates & Associates Insurance Services P.O. Box 25133, Santa Ana, CA 92799 Phone: 800-660-1125, Fax: 800-378-8588 Email: jyates@yates-assoc.com www.yates-assoc.com

Unisource Program Administrators

1620 La Jaita Dr., Ste. 300, Cedar Park, TX 78613 Phone: 512-346-0030, Fax: 512-342-2803 Email: submissions@taga1.com www.taga1.com

3665 Bee Ridge Rd., Ste. 214, Sarasota, FL 34233 Phone: 941-308-1918, Fax: 877-817-8099 Email: Lana.Potts-Buri@UnisourcePA.com www.UnisourcePA.com

Topa Insurance Company

USG Insurance Services, Inc.

1800 Avenue of the Stars, 12th Fl, Los Angeles, CA 90067 Phone: 800-949-6505, Fax: 800-949-6505 Email: topa-marketing@topa-ins.com www.topains.com

Westrope General Agency (WGA)

510 Vonderburg Dr., Ste. 214, Brandon, FL 33511 Phone: 813-315-3020, Fax: 813-315-3039 Email: agoldfarb@westrope.com www.westrope.com

UCA General Insurance Services, Inc.

3060 S. Church St., Burlington, NC 27216 Phone: 800-334-5579, Fax: 336-584-8880 Email: Jhenderson@GoTAPCO.com www.GoTAPCO.com

Westrope, the 8th largest wholesale brokerage in the US, specializes in Property, Casualty, WC, and Professional.

Westrope Insurance Managers of FL and Westrope General Insurance Agency CA have binding authority and focus on small to mid-size business and specialty programs. Classes: Contractors, Habitational, Restaurants, Bars,Taverns.

Westrope Insurance Managers of Florida, LLC

1301 Wrights Lane East, West Chester, PA 19380 Phone: 800-282-6247 x 247, Fax: 610-692-5977 Email: Marketing@suitelifeins.com www.Suitelifeins.com

TAPCO Underwriters, InC.

Westrope

1000 Town Center Wy, Ste. 300, Canonsburg, PA 15317 Phone: 800-886-3897, Fax: 724-265-5751 Email: kskender@usgins.com www.usgins.com

N34 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

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Advertisers Index Readers, browse, contact, or do product searches on any of our full page advertisers at: http://www.insurancejournal.com/adshowcase/ E: East, M: Midwest, N: National, SC: South Central, SE: Southest, W: West Abacus Insurance Brokers, Inc. www.abacus.net W27 Abram Interstate www.abraminterstate.com W22 ACE Insurance www.acelimited.com W15, SC15, SE15, E15, M15 Agency Ideas www.agencyideas.com N17 Anderson & Murison, Inc. www.andersonmurison.com W18 Applied Underwriters www.applieduw.com W68, SC56, SE56, E56 M56 Astonish Results www.astonishresults.com W12, SC12, SE12, E12, M12 California Earthquake Authority www.calquake.com W2 Century National www.cnico.com W19 Chubb Corporate www.chubb.com W7, SC7, SE7, E7, M7 Crump Insurance Services www.crumpins.com N3 First American Specialty Insurance Company www.firstam.com W17 Gateway Specialty Insurance www.gatewayspecialty.com W24, SC14, SE16, E16, M14 www.insurancejournal.com

Golden Bear Insurance Company www.goldenbear.com W29 JM Wilson www.jmwilson.com SE17, M13 Klein Insurance Services www.kis-hospitality.com N2 McClelland & Hine www.mhi-tx.com SC17 Midlands Management Corporation www.midlandsmgmt.com N12 Monarch E & S Insurance Services www.monarchexcess.com W21 Pacific Gateway Insurance Services www.pgiainsurance.com W3 PersonalUmbrella.Com www.personalumbrella.com W5, SC5, SE5, E5, M5 Philadelphia Insurance Companies www.phly.com W11, SC11, SE9, E11 M11 Quirk & Company www.quirkco.com SC17 RiskMeter.com www.riskmeter.com N7 St. Johns Insurance Company www.stjohnsinsurance.com SE11 UCA General Insurance Services www.ucageneral.com W25

Universal North America www.uihna.com W13, SC3, SE3 Vantiv www.vantiv.com/ij N15 Victor O. Schinnerer & Co. www.schinnerer.com W23, SC2, SE2, E2, M2 Webcetera www.webcetera.com N4, N5 Western World www.westernworld.com E3, M3 Zurich Insurance Company www.zurichna.com W67, SC55, SE55, E55, M55

March 5, 2012 INSURANCE JOURNAL-NATIONAL REGION | N35

IDEA EXCHANGE

Closing Quote Last year’s weather-related losses in the U.S. and around globally eerily resemble the kind of volatility found in our recent banking crisis, exacerbated by the European debt crisis. This may be an imperfect metaphor, but what happens in Japan and New Zealand impacts the cost of insurance in Amarillo, Texas.

Last year, our industry experienced four of the 16 largest insurance losses ever recorded. The legacy of 2011 remains with us in the form of increasing reinsurance costs. U.S. storms accounted for $ 21.3 billion, Thailand floods $10 billion, New Zealand earthquake $13 billion, and the Japan earthquake $37.5 billion, adding up to a total $81.8 billion loss of capital.

We’re observing another unforgiving aspect of a global economy. Industry accident year combined ratios are continuing to deteriorate, positive loss reserve development is reversing and we might as well become accustomed to functioning in a low interest rate environment. This market signal is unmistakable.

Message Discipline The signs of a firming market appear to be driven by a combination of firming reinsurance terms and U.S. insurers deciding they need more rates across their entire risk portfolio. The challenge is translating strategic underwriting intent into consumer education. How this is internalized and executed at the field underwriter level is anyone’s guess. If what the agents are telleering across the market, it’s easy to see the telltale signs ing me is true, there is a need for greater message discipline.

There is also a sobering cost to inaction. Rates will rise and of a market in transition, the completion of one cycle business will change hands. There will also be increased tension and the beginning of another. This time around, dusting off between agents and those companies who lack the front line the old underwriting “hard market” play book may be a very communication skills to facilitate a meaningful transition. Hard bad idea. skills matter in our business; soft skills matter even more durDuring the recent Independent Insurance Agents of Texas ing times of change.

(IIAT) Joe Vincent Management Seminar, I listened to a Independent agents have already begun making assessments range of agent observations on how different companies are of carrier relationships and have strong contingency plans for grappling with a pressing need for rate nourishment. Some addressing deviant behavior head on. They of these observations reflect a need to would readily agree that rate nourishment repair damaged balance sheets overnight Regional carriers is a good thing, even during tough economic at the expense of valued independent times. They also understand the importance agency relationships. Fortunately there will play a more are those who understand any hardensignificant role in the of company partners managing their coastal and RMS-modeled interior aggregates. ing of the market will likely be short in new market cycle.

Understanding this, the underwriting comduration in comparison to previous marmunity should ask, “Are we working as ket transitions. I suspect this will throw partners to protect customer balance sheets or are we focused a monkey wrench in the plans of those intending to execute “bleeding edge” rate-taking strategies. Never mind the invita- principally on our own?” The short answer is, both! We cannot be successful over the long term if we don’t balance these seemtion for regulatory intervention.

We should always remind ourselves of the global nature of ingly competing objectives.

Regional carriers will play a more significant role in the new our business. While the industry remains very well capitalmarket cycle and are sufficiently poised to grow. The leaner, ized, competition remains significant and pressures on the more agile carrier is never deluded into believing that it can financials of reinsurance markets and domestic U.S. insurexact a regressive tax when only a responsible rate is needed. I ance companies are very real. Reinsurance pricing, whether predict an inverted food chain scenario in which unbridled rate treaty or facultative, tends to roll down hill. We should all taking is met with the power of choice at the agency account take responsibility for educating consumers on the macroeconomic forces at work. Direct writer advertising that dom- manager’s desk, then at the point of sale. inates the media is influencing how consumers think about our business. Basic economics is not a part of the message.

Ladner is a regional president for State Auto Insurance Co.

The Power of Choice P

By Gerald F. Ladner

N36 | INSURANCE JOURNAL-NATIONAL REGION March 5, 2012

www.insurancejournal.com

Why insure people who would scale 100-story structures?

Because they’re building the country’s future.

When Zurich arrived in the US in late 1912, our goal was simple: to help a growing country grow more. We offered workers’ compensation insurance, enabling industry to grow exponentially. We insured the 1933 Chicago World’s Fair, which in turn brought fresh capital into the city during the Great Depression. And we provided insurance coverage to factories at the dawn of the assembly line, helping local companies to become global companies. The past 100 years have been nothing short of extraordinary. And we can’t wait to see what the next 100 will bring.

Insuring success since 1912. Visit zurichna.com/100

In the United States, insurance coverages are underwritten by individual member companies of Zurich in North America, including Zurich American Insurance Company. Certain coverages are not available in all states. Some coverages may be written on a non-admitted basis through licensed surplus lines brokers. Prior results do not guarantee a similar outcome. Risk engineering services are provided by Zurich Services Corporation.

ROCK-SOLID FINANCIAL STRENGTH SUPERIOR CLAIMS SERVICES UNRIVALED CUSTOMER SUPPORT INNOVATIVE RISK FINANCING UNDERWRITING ONE RISK AT A TIME

DO ONE THING. DO IT T BETTER THAN AN NYONE ELSE.

IT’S HOW WE MAINTAIN A CUSTOMER RETENTION RATE OF OVER 90 PERCENT. At Applied Underwriters,® workers’ compensation is all we do. This allows us to provide the deep resources and expertise to handle your claims with precision and speed.

And rather than send you all over the globe for answers, we give you one number to call – your direct line to a dedicated team in Omaha that understands your company’s unique needs.

Experience our way of doing things. Just one company, with one focus, and the hardest-working workers’ compensation insurance around.

Most classes. All states. Call (877) 234-4450 or visit www.auw.com for more information.

©2010 Applied Underwriters, Inc. A Berkshire Hathaway Company. EquityComp patent pending.

Applied Experience. Applied Intelligence.