Insurance Journal West 2014-03-10 by Insurance Journal

WEST Former Calif. State Fund Exec in Conflict Farmers Hire Dowsers for H2O L.A. Vulnerable to Sea Level Rise

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WEST

Inside This Issue

On The Cover

Special Report:

Brewing Boom Opens Doors for Niche Industry

March 10, 2014 • Vol. 92 No. 5 • West

W10

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IDEA EXCHANGE

W1 Idaho House Backs New Legal Shield for Ski Areas

20 The Upcoming Windows XP Apocalypse

12 Spotlight: 10 Things to Know About Home & Auto

W1 Southern California Edison Sued Over $140,000 Pot Power Bill

24 E&O Insights: Pearsall on the Power of the Signed App

14 Tony Markel Leads City of Hope Fund Raising Effort

W2 Former California State Fund Executive Fined for Conflict of Interest

26 The Competitive Advantage: Burand on Insurer Stability

Labor Study Shows P/C Insurers Plan to Hire, Grow Significantly

16 Special Report: Brewing Boom Opens Doors for Niche Industry

W6 California Farmers Hire Dowsers to Find Water

22 Closer Look: Directors & Officers 31 2014 Hospitality Risks Directory

W10 California Almond Farmers Face Tough Choices Amid Drought

28 How to Control Hospitality Workers’ Comp Costs 46 Closing Quote: Who Shares the Risk in the Sharing Economy?

W12 Report Projects L.A.’s Vulnerability to Future Sea Level Rise

DEPARTMENTS 6 Opening Note 10 Figures 10 Declarations W4 People 11 Business Moves 45 MyNewMarkets

4 | INSURANCE JOURNAL-WEST March 10, 2014

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Opening Note Put a Woman in Charge

he key to long-term survival for many businesses is having a woman in charge. That’s according to Cornell University researchers who say that businesses survive longer under female ownership “We find that female-owned businesses consistently out-survive male-owned businesses in many industries and areas,” said Michele Williams, assistant professor of organizational behavior in Cornell’s School of Industrial and Labor Relations. “Our study contributes to the debate about gender and business ownership by going beyond typical questions asked by researchers and policymakers. We explore the often-ignored third possibility — that female-owned businesses systematically out-survive male owned-business in specific industrial sectors and regions.” This appears to ring true for many business sectors but four sectors stood out the most. Many of the largest industries in which survival rates of female-owned businesses outpaced those owned by men were related to four broad sectors: educational services and dance studios, clothing, gift giving and alcohol sales and service. “One of our more Eating establishments that surprising findings serve alcohol as well as was that eating estabdrinking establishments lishments that serve survive longer under female alcohol as well as drinking establishownership. ments survive longer under female ownership,” said Arturs Kalnins, associate professor of strategy in Cornell’s School of Hotel Administration, who co-authored the study with Williams. “This goes against some stereotypes that restaurants and pubs are male-dominated businesses.” In cities with populations of more than 500,000, femaleowned businesses lasted longer. Elsewhere, male-owned businesses survived longer, according to the report. “For 25 years, economy-wide aggregate studies have not distinguished between different types of industries. These studies often show that male-owned businesses survive longer. New kinds of studies will show that that is only true in certain industries,” Kalnins said. The study, “Business Survival 101 – Put a Woman in Charge,” will be published this year in the Journal of Business Venturing and is available at ScienceDirect.com.

Andrea Wells Editor-in-Chief 6 | INSURANCE JOURNAL-NATIONAL March 10, 2014

EDITORIAL Editor-in-Chief Andrea Wells | awells@insurancejournal.com 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 Senior Editor Susanne Sclafane | ssclafane@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com MyNewMarkets.com Associate Editor Amy O’Connor | aoconnor@mynewmarkets.com Columnists Chris Burand, Curtis Pearsal Contributing Writers David Eggert, Kyle Hightower, Keith Morelli, Laird Rixford, Patrick Rucker, Todd Seiders, Andrew Taylor, Kathleen Tierney 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 Classifieds, Jobs, Agencies Wanted/For Sale Ly Nguyen (800) 897-9965 x125 | lnguyen@insurancejournal.com MARKETING/NEW MEDIA Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 x120 | eburns@insurancejournal.com New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Matt Tolk | mtolk@insurancejournal.com DESIGN/WEB V.P. of Design Guy Boccia | gboccia@insurancejournal.com V.P of Technology Joshua Carlson | jcarlson@insurancejournal.com Audience Development Elizabeth Duffy | eduffy@wellsmedia.com Marketing Director Derence Walk | dwalk@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com IJ ACADEMY OF INSURANCE Online Training Coordinator Barbara Whiffen | bwhiffen@ijacademy.com ADMINISTRATION Chairman Mark Wells Chief Executive Officer Mitch Dunford Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com

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insurancejournal.com/subscribe Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. 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 2014 Wells Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc. POSTMASTER: Send change of address form to Insurance Journal, Circulation Department, PO Box 708, Northbrook, IL 60065-0708 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.

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News & Markets Labor Study Shows P/C Insurers Plan to Hire, Grow Significantly By Andrea Wells

ore than half of all insurance companies say they plan to increase staff in 2014, although hiring for the most-in-demand positions may prove difficult. That’s according to the latest Semi-Annual U.S. Insurance Labor Outlook Study conducted by The Jacobson Group and Ward Group. Jeff Rieder, partner for Ward Group, says when analyzing the history of the survey’s results, the predications for increasing employment levels is at record highs, and decreasing employment is at record lows. Nearly 62 percent of companies polled intend to increase staff in 2014 — the highest rate in the survey’s history. Only 4 percent of carriers that responded expect to decrease staff in the next 12 months — the lowest rate in the survey’s history. Since April 2011, 26,400 jobs have been added by insurance carriers, the study says. “There are not many people looking for work in the insurance industry right now,” says Gregory P. Jacobson, co-CEO of Jacobson. In Jacobson’s view, the industry is seeing a return to its pre-recession state, bringing increased confidence, optimistic staffing and robust revenue forecasts. According to Jacobson, there is a wid-

8 | INSURANCE JOURNAL-NATIONAL March 10, 2014

ening gap between the general economy Although product line has a significant and the insurance industry, which appears impact on the ease of filling positions, to be outperforming national trends in Rieder says claims-related positions and job growth. The Bureau of Labor Statistics human resource positions are particularly reported the unemployment rate for the difficult to fill. insurance industry at 2 percent, the lowest “Dating back to the 2008 time frame, since March 2007. The overall U.S. employthere was a lot of reduction-in-force, particment rate stands at 6.6 percent. ularly around the claims operations,” Rieder The survey also revealed that projections says. “We also saw many of the human for increasing insurance company staff in resource training departments depleted. the next 12 months directly correlates to What this caused is that for certain posithe industry’s expectations tions, particularly ‘The war for talent is to increase total revenue. insurance training and Some 61.9 percent of getting very, very hot.’ experienced claims insurance carriers respondadjuster roles, there ing to the survey plan to increase staff in are fewer of those [job candidates] because the next 12 months, while 87.3 percent of they found jobs in other industries.” those carriers also expect to increase revenue during that same time. National vs. Regional Carriers The anticipated job growth in insurance When it comes to revenue growth in the companies is good news for the industry next 12 months, national property/casualty overall, but filling open positions is proving carriers appear to be more confident in challenging. The study shows many carriers gaining market share, the study found. are experiencing difficulty recruiting. Eighty-five percent of all P/C compa “The war for talent is getting very, very nies surveyed expect an increase in revehot,” Jacobson says. “With the diminishing nue growth; less than 3 percent expect a unemployment rate and the severe skills decrease in revenue. However, 73 percent gap throughout the industry, companies are of national/multinational companies expect struggling to find experienced individuals market share to drive revenue changes, to fill their open positions.” compared to 49 percent of regional carriers. One study trend that caught the eye of Rieder and Jacobson is the more aggressive plans by national carriers to boost revenue and hiring in the next 12 months. “We saw that generally the national carriers were much more aggressive in both their hiring expectations as well as their anticipated growth,” Rieder says. “It’s important for those regional companies to have compensation plans that are competitive and attractive to retain staff. We are finding that many quality staff are being plucked away by their national counterparts.” The Semi-Annual Insurance Labor Outlook Study has been conducted twice a year since July 2009 to provide a look at labor market and hiring trends. The study’s next iteration will occur in July 2014. www.insurancejournal.com

Who insures you doesn’t matter.

Until it does.

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. ©2012 Chubb & Son, a division of Federal Insurance Company.

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FIGURES

80 mph

Could be the top legal speed in Idaho, thanks to a bid to increase speed limits on Idaho roads that passed on the Senate floor 30-4 and has moved to the House. Legal speeds would jump from 75 to 80 mph on the interstate and from 65 to 70 mph on state highways, if Idaho’s Transportation Department signs off.

DECLARATIONS

$10,869 The amount of a special grant received by the Moore, Okla., Fire Department from Apollo General Insurance and Fireman’s Fund Insurance Co. The grant will fund the purchase of personal protective equipment for firefighters — specifically, new sets of coats, pants, helmets, gloves, hoods and boots.

Seeking Justice

“Today is just the first step in a long process to seek justice against a corrupt politician.”

— Assistant U.S. Attorney Mack Jenkins has set his sights on California State Sen. Ron Calderon, D-Montebello, who pleaded not guilty in late February to federal charges that he accepted $100,000 in bribes in return for pushing workers’ compensation legislation.

Huge Accomplishment

“Constructing the hurricane protection system was a huge accomplishment and this letter certifies that the comprehensive, integrated system of levees, floodwalls and gates provide residents in Southeast Louisiana protection against a 100-year storm.”

725

‘Smart Car’ Technology

“New technologies being embedded in cars should only be used to make us safer, not as a way to intrude on the privacy of hundreds of millions of drivers without their permission.”

The approximate number of new associates that the Chevy Chase, Md.-based auto insurance giant GEICO said it will hire for its Fredericksburg, Va., regional office in 2014. GEICO’s Fredericksburg office already employs more than 3,300 associates. The insurer said it is boosting its personnel to keep up with policyholder growth.

$1 Million The amount Georgia has recovered from drivers and their insurance companies through a program to collect money to pay for damage to state property caused by auto accidents. State transportation officials say annual damages to state property — such as signs, guardrails, bridge supports and more — can add up to more than $10 million.

— U.S. Sen. David Vitter of Louisiana commenting on a letter from the Federal Emergency Management Administration certifying the accreditation of the New Orleans area levee system.

529 The number of arson cases Toledo, Ohio, had in 2012 – well above the number in the state’s other big cities. Cincinnati had 386, Cleveland 302, Youngstown 263, Dayton 129 and Akron 103. Toledo averaged around 500 arsons each year from 2009 through 2012, more than any other Ohio city. The intentional fires are typically set in vacant homes and vehicles.

— N.Y. Sen. Charles Schumer’s comment on the “smart car” technology. Schumer recently called on regulators to establish guidelines requiring carmakers to notify drivers when they are being tracked.

An Obligation

“When you own property, it’s your obligation to maintain a safe walking surface.”

— Attorney Mike Bush of Davenport, Iowa, who represented Brenda Alcala of Dallas, Texas, in a lawsuit against the Courtyard by Marriott hotel in Bettendorf, Iowa. In January 2010, Alcala slipped and fell on ice outside the hotel, shattering her right ankle and leaving her with a limp. A jury awarded Alcala $1.2 million after other lodgers testified to the slippery condition of the hotel’s sidewalks.

One of Many Factors

“We find that performance on field sobriety tests is but one of the many factors officers should consider when deciding whether to arrest a motorist for DUI or similar offenses without a warrant.”

— Tennessee Supreme Court Justice William C. Koch Jr. finding that police may still have grounds to arrest people for DUI even if they pass field sobriety tests. 10 | INSURANCE JOURNAL-NATIONAL March 10, 2014

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News & Markets Idaho House Backs New Legal Shield for Ski Areas

ouse members voted in late February 61-8 to give Idaho ski areas expanded protections from lawsuits that arise when their customers are hurt in terrain parks or swept up in in-bounds avalanches. The measure moved to the Senate. The Idaho Ski Areas Association fears liability arising from skiers and snowboarders using, among other things, man-made rails, jumps and hits that have become popular in recent years. Rep. Luke Malek of Coeur d’Alene, the Republican sponsor, said those using ski areas — and riding terrain parks — need to accept the inherent risk that accompanies their activities. The measure’s foes including Republican Rep. Lynn Luker and Democratic Rep. Grant Burgoyne, both Boise lawyers, argued the bill went too far in shielding ski areas from responsibility should operators’ negligence result in injury or death. Copyright 2014 Associated Press.

California High Court Assigns Liability in Liquor Cases

alifornia’s high court has ruled that hosts who charge admission to parties may be held legally responsible if a drunken underage guest is hurt or injures someone else. The state Supreme Court said in the unanimous ruling in Febuary that a cover charge amounts to a sale of alcohol, and state law creates liability for those who sell alcohol to obviously intoxicated minors. The case stems from a 2007 party organized by then20-year-old Jessica Manosa at a rental home owned by her parents. Nineteen-year-old Andrew Ennabe died after being hit outside the home by a car driven by another man who had been asked to leave the gathering. Ennabe’s family sought to hold Manosa liable for his death, through her parents and their homeowners insurance. Manosa’s attorney declined to comment. Copyright 2014 Associated Press.

Southern California Edison Sued Over Oregon Restaurant Sued Over $140,000 Pot Power Bill Mashed Potatoes

wo women are suing Southern California Edison, claiming their electricity was cut off for refusing to pay a nearly $140,000 bill racked up by a marijuana grower. The suit filed in Los Angeles alleges breach of the service agreement. Shu Chih Sun and her daughter-in-law, Mitha Pratiwi, say they leased a family-owned home in Corona to a man who was arrested last March on suspicion of growing pot there. The suit says he tapped power from Edison, which billed the property owners for three years of unauthorized service. The women say Edison shut off power this month to their Rowland Heights home. They’re using a generator for lights. Edison declined to comment on the suit but says it’s under review. Copyright 2014 Associated Press. www.insurancejournal.com

man who says he broke two teeth when he bit into some mashed potatoes is suing at Outback Steakhouse restaurant in Portland, Ore. Roger Branstetter says there were bits of broken porcelain in the food in February 2012 when he cracked two molars, and he says a manager admitted that bits of a broken plate had fallen into the potatoes. Branstetter is suing the restaurant for $48,000 in Multnomah County Circuit Court. A managing partner of the Evergreen Restaurant Group that owns the franchise, Jason Bender, told The Oregonian he couldn’t speak in detail about the case, but hadn’t heard of any other customers with a similar complaint. He says safety is very important to the restaurant. Copyright 2014 Associated Press. March 10, 2014 INSURANCE JOURNAL-WEST | W1

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News & Markets Former California State Fund Executive Fined for Conflict of Interest By Don Jergler

Coyne has more than 30 years of experience in IT. Before State Fund he served for six years as vice presformer top executive at California’s ident and CIO of Toyota Financial State Compensation Insurance Fund Services in Torrance, Calif. Prior has admitted to charges of a conflict of to Toyota, Coyne worked as a vice interest in awarding contacts to a software president and chief technology firm while he was at State Fund, it was officer of General Electric. made public in February by the commis The charges state that in January sion. 2009, State Fund and Tibco entered Shaun Coyne, former chief informainto an agreement under which tion officer of the state’s largest workers’ Tibco would provide software and compensation provider, was fined $7,000 related services to State Fund. by the California Fair Political Practices The agreement was structured Commission for failing to timely report so that over time the two parties gifts of $50 or more, receiving gifts from a would agree on future statements single source that exceeded the gift limit of work as needed by State Fund. and participating in making governmenEach statement of work would call tal decisions in which he had a financial for Tibco to provide additional serinterest. vices and for State Fund to make Coyne held the CIO post at quasi-priadditional payments. vate State Fund between 2009 and 2012. Additionally, the parties also According to the commission, during that could agree to modify an existing time he violated the Political Reform Act statement of work by agreeing to a by failing to disclose gifts he received from change order. Tibco Software Inc., a publicly traded com According to the commission, pany based in Palo Alto, Calif. Coyne attended a conference He also received gifts over the limit in Las Vegas held in 2011 called from Tibco. TUCON that was put on by Tibco. According to the commission, Coyne Tibco paid for Coyne’s airfare, also approved change orders and statehotel room and admittance ‘This arose out of an in internal to TUCON. The airfare cost $468.70, investigation State Fund conducted.’ and the hotel room cost $338, according to the charges. The charges state Coyne didn’t report ments of work related to a contract the airfare and hotel room as gifts on his between Tibco and State Fund. 2011 Statement of Economic Interest, a “This arose out of an in internal invesrequirement for many government employtigation State Fund conducted,” said State ees. Fund spokeswoman Jennifer Vargen. Later in the summer of 2011 he approved Vargen said State Fund has been coopernew statements of work and change orders ating with the commission throughout the to existing statements of work related to investigation. the master agreement from Tibco. The still-unexplained and sudden res The contract modifications were for ignation in November of State Fund CEO extensions of work and were for amounts Tom Rowe and Chief Financial Officer Dan ranging from $540,816 to more than $2.1 Sevilla “is completely unrelated” to the million. investigation of Coyne, Vargen said. On Aug. 31, 2012, Coyne left State A spokeswoman for Tibco did not Fund and filed an amendment to his 2011 respond to requests for comment.

W2 | INSURANCE JOURNAL-WEST March 10, 2014

Statement of Economic Interest and paid back Tibco for the cost of the airfare, hotel and conference, according to the commission. Following the exit of Rowe and Sevilla, who have still not publicly explained their reasons for leaving, State Fund’s board placed general counsel Carol Newman as the acting CEO while a search is being conducted for a new top executive. Board Chair Lawrence E. Mulryan said during an open board session that a decision could be made on a new CEO by late May, according to people attending the meeting. The board has retained executive search consulting firm Spencer Stuart to help find a replacement for Rowe. www.insurancejournal.com

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People Jim Lineweaver

The Leavitt Group has hired Jim Lineweaver, a client advisor, in its Tacoma, Wash., office. Lineweaver has 25 years of insurance experience. He specializes in large manufacturing risks, forest products, transportation, wholesale distribution, architects and engineering. Prior to joining the agency, Lineweaver was a partner with a large regional brokerage firm. He also managed the northwest for a specialty insurance company. The Leavitt Group provides clients with risk management services, and a range of employee benefit solutions. The Surplus Line Association of California has elected Ian Fitt, CEO and chairman of Western Re/ Managers Insurance Services Inc., chair of the SLA Executive Committee, the organization’s board of directors. Also elected were Denis Brady, president of Burns & Wilcox Brokerage, who becomes vice chairman, and Chris Houska, California managing director of R-T Specialty LLC, who becomes secretary/treasurer. Fitt takes over from Pam Quilici, executive vice president of Crouse & Associates Insurance Services of Northern California Inc., who completed her 2013 term as chair and was elected to a seat on the board. Completing the 13-member board are: Dean Andrighetto, ACE Westchester Specialty Group; Janet Beaver, Scottish American; Tom Ciardello, Worldwide Facilities Inc.; Rupert Hall, M.J. Hall & Company Inc.; Chris Kiley, AMWINS; Phil Mazur, Swett & Crawford; Davis Moore, Worldwide Facilities Inc.; Les Ross, Wholesale Trading Co-Op Insurance Services LLC; Gerald Sullivan, The Sullivan Group. Additionally, SLA members reelected Harry Low, a former insurance commissioner and retired presiding justice of the California Court of Appeal, as mediator. All individuals elected will serve until balloting is completed following the next SLA Annual Meeting in January 2015. San Francisco-based SLA operates as a self-governed private organization. Appointed by the insurance commissioner in 1994, the association serves as the statutory surplus line advisory organization to the California Department of Insurance. The Independent Insurance Agents & Brokers Association of Los Angeles recently installed new officers and directors for 2014. The new IIABA-LA lineup for officers are: Ryan Wunderlich, Hub International Insurance – president; Martin Flannery, Poms & Associates Insurance Brokers

W4 | INSURANCE JOURNAL-WEST March 10, 2014

– vice president; AJ Scott, Timothy Cline Insurance Agency – secretary/treasurer; Bradley Rutt, Elkins Jones Insurance – immediate past president. IABA-LA directors are: Gail Stonehouse, Lloyd S. Berkett Insurance; Jon Axel, Hub International Insurance; Zach Kuperman, Whorton Insurance; Joshua Valdivia, White & Company Insurance; Robb Greenspan, The Greenspan Co. IIABA-LA represents agents and brokers throughout the Los Angeles area. Klamath Falls, Ore.-based Work First Casualty Co. named Brian Schumacher vice president of information services. Schumacher previously served as director of information services. He has 13 years of experience in information systems management. Work First is licensed in 46 states, and provides workers’ compensation insurance to temporary staffing companies. James Eldredge has joined The Buckner Co. in Utah Eldredge has more than a decade of insurance experience, mostly within the commercial insurance sector. He focuses on contractors, real estate development, professional liability, environmental and pollution, nonprofits, manufacturing and distribution. Salt Lake City, Utah-based The Buckner Co. provides services to several industries including construction, trucking and transportation, restaurants and technology. Marjorie Berte, vice president for state affairs for the American Insurance Association’s Western region, announced plans to retire on March 31. Berte joined AIA in 2011 and has been responsible for overseeing AIA’s government affairs efforts in Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada, Oregon, Utah and Washington. Prior to AIA, Berte was undersecretary for the Business, Transportation & Housing Agency in the administration of California Gov. Arnold Schwarzenegger. Her public service also includes deputy secretary for the State & Consumer Services Agency, and director of the Department of Consumer Affairs. Joe DiGiovanni, AIA’s senior vice president for state affairs, will oversee the Western region in coordination with Steve Suchil, AIA’s assistant vice president for state affairs, until Berte’s successor is named. AIA represents roughly 300 insurers that write more than $100 billion in premiums annually. www.insurancejournal.com

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News & Markets California Farmers Hire Dowsers to Find Water By Jason Dearen

ith California in the grips of drought, farmers throughout the state are

using a mysterious and some say foolhardy tool for locating underground water: dowsers, or water witches. Practitioners of dowsing use rudimentary

tools — usually copper sticks or wooden “divining rods” that resemble large wishbones — and what they describe as a natural energy to find water or minerals hidden deep underground. While both state and federal water scientists disapprove of dowsing, California “witchers” are busy as farmers seek to drill more groundwater wells due to the state’s record drought that persists despite recent rain. The nation’s fourth-largest wine maker, Bronco Wine Co., says it uses dowsers on its 40,000 acres of California vineyards, and dozens of smaller farmers and homeowners looking for wells on their property also pay for dowsers. Nationwide, the American Society of Dowsers Inc. boasts dozens of local chapters, which meet annually at a conference.

‘It’s kind of bizarre. Scientists don’t believe in it, but I do and most of the farmers in the Valley do.’ “It’s kind of bizarre. Scientists don’t believe in it, but I do and most of the farmers in the Valley do,” said Marc Mondavi, a vineyard owner whose family has been growing grapes and making wine since the mid-20th century in the Napa Valley. Mondavi doesn’t just believe in dowsing, he practices it. On a recent afternoon, standing in this family’s Charles Krug vineyard holding two copper divining rods, Mondavi walked slowly forward through the dormant vines. After about 40 feet, the rods quickly crossed and Mondavi — a popular dowser in the world famous wine region — stopped. “This is the edge of our underground stream,” he said during the demonstration. Mondavi said he was introduced to “witching” by the father of an old girlfriend, and realized he had a proclivity for the practice. After the valley’s most popular dowser continued on page W8 1 W6ABRAM16725.indd | INSURANCE JOURNAL-WEST March 10, 2014

2/26/14 10:02 AM

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News & Markets continued from page W6 died in recent years, Mondavi has become the go-to water witch in Napa Valley. He charges about $500 per site visit, and more, if a well he discovers ends up pumping more than 50 gallons per minute. With more farmers relying on groundwater to irrigate crops, Mondavi’s phone has been ringing often as growers worry about extended years of dryness.

‘There’s no scientific basis to dowsing. If you want to go to a palm reader or a mentalist, then you’re the same person who’s going to go out and hire a dowser.’ He had six witching jobs lined up over a recent weekend, three homes whose springs were running dry and three vineyards. It’s so popular that he’s even created a line of wines called “The Divining Rod” that will be sold nationwide this year. While popular, scientists say dowsers are often just lucky, looking for water in places where it’s already known to likely exist.

“There’s no scientific basis to dowsing. If you want to go to a palm reader or a mentalist, then you’re the same person who’s going to go out and hire a dowser,” said Tom Ballard, a hydrogeologist with Taber Consultants, a geological engineering firm based in West Sacramento. “The success is really an illusion. In most places you’re going to be able to drill and find some water,” he said. Still, the consistent interest in water witches nationwide even spurred The U.S. Geological Survey to officially weigh in on the fairly harmless practice. Dowsing has not held up well under scientific scrutiny, the USGS said, adding that dowsers are often successful in areas where groundwater is abundant. “The natural explanation of ‘successful’ water dowsing is that in many areas water would be hard to miss. The dowser com-

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monly implies that the spot indicated by the rod is the only one where water could be found, but this is not necessarily true,” the survey said in its report. Christopher Bonds, senior engineering geologist for the state Department of Water Resources, said his agency does not advocate using witchers. “DWR is an advocate for having qualified and licensed water professionals locate groundwater resources using established scientific methods,” Bonds said in an email. Don’t tell that to John Franzia, co-owner of Bronco Wine Co., the nation’s fourth-largest wine producer based on sales. It makes wine under hundreds of labels, including the famous “Two Buck Chuck.” Bronco also owns more vineyard land in California than anyone else, and when it needs a new well there’s a good chance a dowser will be employed. Franzia said the company uses many technologies to find water on its 40,000acres, but turns to dowsers often and with great success. “I’ve used witchers for probably the last 15-to-20 years,” Franzia said. “Seems like the witchers do the better job than the guys with all the electrical equipment. I believe in them.” Copyright 2014 Associated Press.

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News & Markets Study: Grandpa and Grandma Much Safer Behind the Wheel By Joan Lowy

crash data for this age group — by licensed drivers or miles driven — the fatal crash involvement rates for afety researchers expressed concern a drivers 70 and older declined, and decade ago that traffic accidents would did so at a faster pace than the rates increase as the nation’s aging population for drivers ages 35 to 54,” she said in swelled the number of older drivers on the a report on the study’s results. road. Now, they say they’ve been proved At the same time, older drivers wrong. are putting more miles on the odom Today’s drivers aged 70 and older are eter than they used to, although less likely to be involved in crashes than they’re still driving fewer miles a previous generations, and less likely to be year than middle-aged drivers. This killed or seriously injured if they do crash, is especially true for drivers 75 and according to a study released recently by by driving less at night, during rush hour, older, who lifted their average annual milethe Insurance Institute for Highway Safety. in bad weather or over long distances. age by more than 50 percent from 1995 to That’s because vehicles are getting safer By 2050, the number of people in the U.S. 2008. and seniors are generally getting healthier, age 70 and older is expected to reach 64 “The fact that older drivers increased the institute said. million, or about 16 percent of the populatheir average mileage … The marked shift began tion. In 2012, there were 29 million people may indicate that they are taking hold in the mid-1990s ‘This should help in the U.S. age 70 and over, or 9 percent of remaining physically and and indicates that growing ease fears that the population. mentally comfortable with ranks of aging drivers as aging baby boomers driving tasks,” the institute baby boomers head into their retirement years aren’t are a safety threat.’ said. When older drivers Source: The Insurance Institute for Highway reduce the number of trips making U.S. roads deadlier. Safety they take, it’s often because they sense their Traffic fatalities overall in the U.S. have Copyright 2014 Associated Press. driving skills are eroding. They compensate declined to levels not seen since the late 1940s, and accident rates have come down for other drivers as well. But since 1997, older drivers have enjoyed bigger declines as measured by both fatal crash rates per driver and per vehicle miles driven than middle-age drivers, defined in the study as ages 35 to 54. From 1997 to 2012, fatal crash rates per licensed driver fell 42 percent for older drivers and 30 percent for middle-age ones, the study found. Looking at vehicle miles Goldenbear.com traveled, fatal crash rates fell 39 percent for older drivers and 26 percent for middle-age ones from 1995 to 2008. The greatest rate of decline was among drivers age 80 and over, nearly twice that of middle-age drivers and drivers ages 70 to 74. “This should help ease fears that aging baby boomers are a safety threat,” said Anne McCartt, the institute’s senior vice president for research and co-author of the Rated A- (Excellent) by A.M. Best Company study. 709 N. Center Street Stockton, CA 95212 (209) 948-8191 “No matter how we looked at the fatal

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News & Markets California Almond Farmers Face Tough Choices Amid Drought By Scott Smith

state’s rivers and reservoirs. In February before they have passed their prime. There’s President Barack Obama visited the Central simply not enough water to satisfy all 5,000 Valley, announcing millions of dollars in acres of almonds, he said. “Hopefully, I don’t ith California’s agricultural heartland relief aid that in part will help the state’s have to pull out another 20 percent,” Baker entrenched in drought, almond farmranchers and farmers better conserve and said, adding that sooner or later neighborers are letting orchards dry up and in some manage water. ing farmers will come to the same conclucases making the tough call to have their Baker, who favors farming over polision. “They’re hoping for the best. I don’t trees torn out of the ground, leaving behind tics, explained the math leading to his think it’s going to come.” empty fields. decision. Between now and the summer There are no figures yet available to In the California’s Central Valley, Barry almond harvest, he would need to irrigate show an exact number of orchards being Baker is one of many who hired a crew that his orchards with removed, but the brought in large rumbling equipment to economic stakes and ‘Hopefully, I don’t have to pull scarce, expensive perform the grim task in a cloud of dust. water and pay risks facing growers out another 20 percent.’ A tractor operator drove heavy steel to have the trees are clear. Almonds shanks into the ground to loosen the roots pruned and sprayed. Bringing in bee hives and other nuts are among the most and knock the trees over. Another operator, to pollinate the blossoms costs nearly $500 high-value crops in the Central Valley, the driving a brush loader equipped with a an acre. biggest producer of such crops in the counfork-like implement on the front, scooped That all would amount to a $2.5 million try. In 2012, California’s almond crop had an up the trees and root balls and pushed gamble, without knowing if the next couple annual value of $5 billion. This year farmers them into a pile, where an excavator driver of months will bring significant rain to the say the dry conditions are forcing them to grabbed them up in clusters with a clawing valley floor and snow to the mountains. make difficult decisions. grapple. The trees were fed into a grinder “You’d have wrapped a lot of money up in Gov. Jerry Brown earlier in the year that spit wood chips into piles to be hauled those trees to see what happens,” he said. declared a drought emergency after the away by the truckload and burned as fuel in Removing old trees is common pracstate’s driest year in recorded history. a power plant. tice. Almond trees remain productive for The thirst for water has sparked political Baker, 54, of Baker Farming Company, has about 25 years, growers said. The state’s battles in Washington, D.C., over use of the decided to remove 20 percent of his trees almond farmers removed over 10,000 acres of trees in 2012, according to a report by the California Department of Food and Agriculture. Most were past their prime. No figures are available on how many orchards Bars, Restaurants, and Tavern farmers are removing today, said departCatering, Including Food Trucks ment spokesman Steve Lyle. But Alan Thompson of G&F Agri Service Hotels & Motels LLC, who leads the crew ripping out Night Clubs & Gentlemans Clubs Baker’s orchards, said the drought spiked his business by 75 percent. This time of year Special Events is typically slow, but Thompson, 31, said his Clubs & Halls heavy equipment operators start at dawn CGL Limits up to $3,000,000 each day and works until sundown, removPrimary Liquor Liability up to $1,000,000 ing orchards in short order. “We don’t even mess around with cutting www.mjhallandcompany.com them up with chain saws,” he said. “That States Served Are AK, AZ CA, HI, NV & TX LIC #0488901 grinder is the way to do it right there.” (209) 870-2953, 709 N. Center Street Stockton, CA 95202 Ryan Jacobsen, executive director of Send submissions to: Alaska@mjhallandcompany.com the Fresno County Farm Bureau, said he Arizona@mjhallandcompany.com expects that almond growers will be removCalifornia@mjhallandcompany.com Hawaii@mjhallandcompany.com ing trees through the spring and summer Nevada@mjhallandcompany.com because of the drought. “I have no doubt Texas@mjhallandcompany.com

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A crew from G&F Agri Service LLC uses heavy equipment to remove an almond orchard and to turn the trees into wood chips at Baker Farming Company in Firebaugh, Calif., on Feb. 3. The state’s drought has forced farmers to remove some almond orchards earlier than they normally would because they don’t expect to have enough irrigation water. (AP Photo/Scott Smith)

permanent crops will be taken out because of this,” he added. Tim Lynch of Agra Marketing Group said power plants in the state nearly have more wood chips from almond trees than they can handle. Lynch’s firm acts as the middle man between growers getting rid of their trees and the power plants that need bio fuel to burn. The dry weather this winter has allowed growers to work in their orchards that are typically soggy, and the drought pushed them to take out trees earlier than normal, he said. The high value of almonds has caught the eye of investors in recent years, who paid top-dollar for land to plant almond orchards and cash in on the bonanza. Their value remains strong, making the decision for farmers to remove orchards difficult. William Bourdeau, executive vice presiwww.insurancejournal.com

dent of Harris Farms in Coalinga, said he and his colleagues within the next 30 days will have to confront the hard decision about scaling back their almond orchards. They’ve already decided not to plant 9,000 acres of vegetables — including 3,000 acres of lettuce that would have produced 72 million heads and generated 700,000 hours of work. Next, they may rip out 1,000 acres of almonds, a permanent crop, Bourdeau said. “I hesitate to use a number that big. Unfortunately, it’s going to that big or bigger,” he said, still holding out hope the season will turn wet. “We’re trying to limp along as long as we can.” Leaving the orchards un-watered and expecting they’ll somehow survive the drought is no option, Bourdeau said, because insects infest the dying trees and

multiply, spreading to other orchards. Drawing well water is a bad option, he said. Their wells sink 2,400 feet below ground in his region of the Central Valley, providing water that’s unhealthy and compromises the crops for years, if the trees survive at all, he said. They have considered blending well and surface water to minimize the harm. Or they can remove some almonds to direct their limited water to fewer orchards. “There’s a lot of what-ifs,” Bourdeau said. “There’s no good decision. It’s what’s the least worse option.” Copyright 2014 Associated Press. See related story on Page 6: “California Farmers Hire Dowsers to Find Water” March 10, 2014 INSURANCE JOURNAL-WEST | W11

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News & Markets CWCI and WCIRB: SB 863 Lowered Surgical Center Payments in California

verage facility fee payments to ambulatory surgery centers fell 26 percent per episode and 28 percent per procedure since fee schedule changes mandated by Senate Bill 863 were adopted last year. That’s according to a study by the Workers’ Compensation Insurance Rating Bureau of California and the California Workers’ Compensation Institute. The results of this study are consistent with the WCIRB’s initial projection of a 25 percent reduction in ASC costs that was part of the Jan. 1, 2013 pure premium rate filing, according to the authors of the study. The joint study measured average amounts billed and paid for workers’ comp outpatient surgery services in the year preceding the adoption of the revised fee schedule and in the first six months after the revised fee schedule took effect. Payment results were measured both on a per procedure basis using CWCI data, and

a per episode basis using WCIRB data. The authors also looked for changes in a number of factors that can affect the total amounts paid to surgical centers. Among the findings of the report: • The average amount paid per ASC procedure following the implementation of the revised ASC fee schedule fell 28 percent; • The average amount paid for ASC services per episode fell 26 percent; • Although billings increased and negotiated discounts eroded, the net paid amounts for ASC services were not materially affected; • Both ASCs and hospital outpatient departments showed declines in the proportion of outpatient facility fees paying for additional services associated with the primary paid procedure; • The proportion of ASC payments attributable to services not subject to the fee schedule change increased, but remained

relatively small; • The data indicate no change in the mix of services or the percentage of episodes occurring in outpatient hospital settings and ASCs. The study authors said their findings are preliminary, so WCIRB and CWCI will continue to monitor ASC experience and plan to update the report later this year to reflect all 2013 data.

Report Projects L.A.’s Vulnerability to Future Sea Level Rise

os Angelenos may expect to experience sea level rise of as much as two feet by 2050 due to climate change, according to current projections. A team from USC partnered with Los Angeles to gauge the impact of the rising tides on local communities and infrastructure. The results, according to a recent report, are a mixed bag. However, at-risk assets can be protected by proactive planning and early identification of adaptation measures, according to the report’s authors. “Some low-lying areas within the city’s jurisdiction, such as Venice Beach and some areas of Wilmington and San Pedro, are already vulnerable to flooding,” said Phyllis Grifman, lead author of the report and associate director of the USC Sea Grant Program. “Identifying where flooding is W12 | INSURANCE JOURNAL-WEST March 10, 2014

already observed during periods of storms and high tides, and analyzing other areas where flooding is projected are key elements in beginning effective planning for the future.” Other findings from the report include: • The city’s wastewater management, storm water management and potable water systems are highly vulnerable to sea level rise; • The Port of Los Angeles and the city’s energy infrastructure would be mostly

unaffected by the rise in sea level due to a replacement schedule that will allow the city to prepare for future needs to change infrastructure; • Projected flooding and erosion damage to roads along the coast could impede emergency services; • Many cultural assets located along the coast, including museums, historic buildings and the Cabrillo Marine Aquarium, could face damage; • Residents of low-lying communities, such as San Pedro and Wilmington, as well as those with older buildings and high numbers of renters, such as Venice, would be most affected by flooding; • In particular, the Abbot Kinney corridor and the fragile Ballona wetlands are at risk, however the region’s wide sandy beaches, if maintained, can provide a valuable bulwark against higher waters. Copyright 2014 Associated Press. www.insurancejournal.com

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Business Moves AssuredPartners, Bateman Agency Lake Mary, Fla.-based AssuredPartners Inc., through its subsidiary Donald F. LaPenna Associates Inc. in Clark, N.J., has acquired Bateman Agency Inc. Terms of the transaction were not disclosed. Bateman Agency is an independent insurance firm located in Somerville, N.J. The firm specializes in coverage for businesses, including inland and ocean marine insurance, builders’ risk, professional liability and bonds; and insurance for individuals, including homeowners’, renters’, and flood. As part of the acquisition, Bateman Agency will continue to operate out of its Somerville location under the leadership of Donald LaPenna, president of Donald F. LaPenna Associates. Doug Bateman, who has been serving as president of Bateman Agency, will join LaPenna as a producer, and continue to work with his clients. Cross Insurance, Driscoll Agency Bangor, Maine-based Cross Insurance, a subsidiary of Cross Financial Corp., has acquired Driscoll Agency, an independent insurance agency based in Norwell, Mass. Terms were not disclosed. Driscoll Agency specializes in risk management services and surety bonding. The agency represents more than 100 contractors throughout New England, providing risk management programs and surety bonding lines of credit. Since its founding in 1954, Cross Insurance has grown through the acquisition of more than 100 insurance agencies throughout New England. Arthur J. Gallagher, KK&T Arthur J. Gallagher & Co. has acquired Kent, Kent & Tingle, a retail insurance broker based in Shreveport, La. Terms of the deal were not disclosed. Founded in 1989, Kent, Kent & Tingle (KK&T) provides employee benefits, property/casualty and risk management insurance services, and specializes in the oil and gas, construction, manufacturing, distribution and medical industries. The group offers group health, welfare and wellness www.insurancejournal.com

plans, employee benefits consulting services, commercial property/ casualty insurance coverage and risk management consulting services for their clients throughout the southern United States. Fred Kent and his colleagues will continue to operate in their current location under the direction of John Neumaier, head of Gallagher’s South Central employee benefit consulting and brokerage operations, and Mitchel Brashier, head of Gallagher’s Southeastern property/casualty brokerage operations. Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Ill. Patriot National, Stonewood Patriot National Insurance Group Inc., a workers’ compensation insurer based in Ft. Lauderdale, Fla., has a new partnership with Stonewood National Insurance Co. for a health care industry program in the Midwest. Under the partnership arrangement, Patriot will write workers’ compensation through its managing general agency, Patriot Underwriters Inc., and Patriot will serve as a program administrator with defined underwriting and claims settlement authority, according to a company announcement. The program is focused in select Midwestern states on segments within the health care industry. Stonewood is an affiliate of the Franklin Holdings, a Bermuda -based holding company with companies that specialize in underwriting select lines of casualty insurance and reinsurance. This is Patriot’s second partnership with an A-rated insurance carrier and comes

shortly after a $28-million capital infusion into Patriot’s wholly-owned subsidiary, Guarantee Insurance Co., the company said. Patriot National Insurance Group has two operating subsidiaries — Guarantee Insurance Co. and Patriot Underwriters Inc. Stonewood Insurance Cos., headquartered in Raleigh, N.C., is the specialty admitted insurance platform of James River Group Inc., the U.S. subsidiary of Franklin Holdings Ltd. of Hamilton Bermuda. XL, Global Ag XL Reinsurance America Inc., a subsidiary of XL Group plc, has acquired Global Ag Insurance Services, a crop insurance provider based in the western United States. The two companies initially partnered in 2011 to deliver crop insurance solutions to western specialty crop producers and growers through the U.S. Department of Agriculture (USDA) multi-peril crop insurance program. The two companies then built a specialized platform to offer an alternative to growers and agents in the western United States. XL Group plc’s reinsurance companies offer products that include aerospace, property/casualty, marine and specialty. March 10, 2014 INSURANCE JOURNAL-NATIONAL | 11

SPOTLIGHT

10 Things to Know About Home & Auto New Jersey is the most expensive state for auto insurance where the average expenditure is $1,183.95. Idaho is the least expensive with an average expenditure for coverage at $535.15. â&#x20AC;&#x201D; Insurance Information Institute (III)

Homeowners claims related to wind or hail are the most frequent; the costliest are related to fire, lightning or debris removal. About one in 20 insured homes have a claim each year. (III/ISO) The average auto liability claim for property damage was $3,073 in 2012, while the average auto liability claim for bodily injury was $14,653. That same year, the average collision claim was $2,950, and the average comprehensive claim was $1,585. (ISO)

Based on third quarter 2013 reports, GEICO Corp. surpassed Allstate Corp. to become the nationâ&#x20AC;&#x2122;s second-largest private auto insurer. According to data compiled by SNL, GEICO logged $4.89 billion in direct premiums written during the third quarter of 2013, while Allstate recorded $4.65 billion in premiums. State Farm remained firmly in the number one position with $8.7 billion. (SNL Financial)

About one in 50 insured homes have a property damage claim related to wind or hail each year. About one in 65 insured homes have a property damage claim caused by water damage or freezing each year. About one in 200 insured homes have a property damage claim due to theft each year. About one in 230 insured homes have a property damage claim related to fire, lightning or debris removal every year. (III/ISO)

About one in 800 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others. (III/ISO) While 25 percent of consumers rent their primary residence, 46 percent of renters remain uninsured. When it comes to renters insurance, State Farm captures the largest share of the market (26 percent), followed by Allstate (12 percent) and USAA (10 percent). (J.D. Power)

In 2012, less than 1 percent of people with liability insurance had a bodily injury liability claim, while 3.5 percent of those with liability insurance had a property damage liability claim. Just 5.6 percent of collision insurance policyholders had a claim in 2012, while 2.6 percent of people with comprehensive coverage had a claim. (ISO) 12 | INSURANCE JOURNAL-NATIONAL March 10, 2014

In 2013, the homeowners industry will generate its first statutory underwriting profit since 2007. Fitch Ratings examined GAAP homeowners results from 2011-2013 for four homeowners insurers: The Allstate Corp.; Chubb Group of Insurance Cos.; The Hartford Financial Services Group Inc.; and The Travelers Cos. Inc. These companies reported an aggregate homeowners combined ratio of 79.6 percent for full-year 2013. (Fitch Ratings)

Dog bites accounted for more than one-third of all homeowners insurance liability claim dollars paid out in 2012, costing more than $489 million, according to the industryâ&#x20AC;&#x2122;s Insurance Information Institute and insurer State Farm.

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News & Markets Tony Markel Leads City of Hope Fund Raising Effort

ony Markel was recently honored for his work on a national campaign to raise $1 billion for cancer research. Markel, known as the name and the man behind building Markel Corp. into one of the largest property/casualty insurance companies in the U.S., recently served as national chair for the City of Hope’s Power of Hope campaign. Markel considers himself semi-retired and he is still on the board of the publicly traded, Glen Allen, Va.-based company. The 72-year-old now lives in Naples, Fla., and Tony Markel, of Markel Corp., talks about raising funds for cancer research. spends summers in Richmond, Va. He has “My line was to try to raise funds in two daughters and two grandchildren. chair with a target of raising $1 billion by order to leave a legacy for all our kids and Despite having a life that was full, Markel the organization’s 100th anniversary in 2013. grandkids that isn’t overhung by the specter said he decided to become involved with That campaign culminated in January, of cancer the way my generation has had City of Hope in 2006 after the National and they raised a little bit more than $1 bilto deal with it,” he said. Doing that will be Insurance Industry Council honored him lion, according to its organizers. quite a task, and it’ll take many more $1 bilwith its annual Spirit of Life Award given “When we asked Tony to lead the Power lion campaigns, he said. for insurance industry professionals for of Hope campaign we knew, with certainty, “It’s going to take a herculean effort to their charitable efforts. NIIC comprises repthat with his leadership we would meet really solve the problem, but I think strides resentatives from life and property/casualty our $1 billion dollar goal,” said Kathleen L. are being made,” Markel said. “I just think companies, law firms, brokers, accounting Kane, City of Hope’s chief philanthropy and progress is coming a little grudgingly, but it firms, reinsurers, executive placement firms external relations officer. “Tony is larger will be done.” and actuaries in the insurance industry. than life, as was our ambitious goal which COH works with the insurance industry Months after Markel received the award we exceeded by $33 million. Besides being through the National Insurance Industry his wife Sue was diagnosed with ovarian enormously compelling, he is an enthusiasCouncil, but Markel thinks it’s importcancer. While she tic spokesperson, a ant for all sectors of the economy to be was being treated generous donor and involved. COH has similar events for several in Virginia, the a creative thought other industries. Markel’s also got leader.” “I think it’s important for every segment help and advice Markel credited of the economy,” Markel said. “Any individufrom cancer City of Hope’s develal, company, organization, or group of orgaexperts at Duarte, opment department, nizations, have a social obligation to give Calif.-based City of and the fact that back, and clearly cancer is a major issue Hope. Sue Markel cancer has touched that has really become a rallying point.” fought the disease so many people, for He added, “I think the insurance industry for 13 months achieving that goal. Tony Markel, of Markel Corp., was honored as nationhas done a tremendous job in raising money before dying in “It’s a very easy al chair of City of Hope’s Power of Hope campaign. for the City of Hope.” 2008, but the expestory to sell,” he Capping Markel’s run was a gala to celrience with City said. “Everybody ebrate the centennial and honor retiring of Hope inspired Markel to establish the past the age of 3, I think has been touched City of Hope CEO Michael A. Friedman. Markel/Friedman Fund for Research into by cancer one way or another.” Freidman now becomes emeritus cancer Ovarian/Peritoneal Tumors at City of Hope, Markel, who referred to himself as “just center director. he said. the face of the campaign,” said his personal The reigns of the organization are being Roughly a year after his wife’s death the goal was to contribute to lessening the taken up by Robert Stone. Stone has been City of Hope approached Markel to head broad impact for future generations that with City of Hope for 18 years. up the Power of Hope campaign as national cancer has had on his. 14 | INSURANCE JOURNAL-NATIONAL March 10, 2014

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Specialty Markets

By Andrea Wells

he craft beer industry has been chipping away at the U.S. domestic beer market throughout the past decade. And the pace of growth in this specialty niche is not expected to stop anytime soon. By 2020, America’s craft brewers will have more than 20 percent market share, according to the Brewer’s Association, a national group that represents 2,000 U.S. breweries nationwide. In 2012, U.S. craft brewers accounted for 6.5 percent by volume and 10.2 percent by dollars in market share. The craft brewing industry grew 15 percent by volume and 17 percent by dollars in 2012 compared with growth in 2011 of 13 percent by volume and 15 percent by dollars. At the end of January, the Brewers Association counted 2,776 breweries in the United States — that’s up from less than 1,600 in 2010. The association expects the craft brewery count to run well over 3,000 by the end of 2014. In 1980, only 89 craft brewers existed in the United States. There’s been consistent growth in breweries year-over-year since the early 1990s, says Paul Gatza, director of the Brewers Association. “Some 400-500 new breweries start-up each year and there’s nothing to show us that that pace is 16 | INSURANCE JOURNAL-NATIONAL March 10, 2014

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going to slow down at all,” he says. On top of brewers opening up shop, there’s plenty more in planning stages right now as well, he adds. This is good news for insurance experts looking to grow their business in this specialty market. Market Specialists One insurance expert who began specializing in the microbrewery market in 1986 when a craft brewer opened up shop in his agency’s hometown is Peter Whalen, president and owner of Northampton, Mass.based Whalen Insurance Agency. When Whalen wrote his first brewery no one specialized in the market and many insurers were unfamiliar with the risks. That’s changed. “The insurance market for craft brewers is quite different than those earlier days,” Whalen says. “Today a number of regional and national carriers are in the class.” Whalen now writes more than 100 microbreweries, which accounts for about 15 percent to 20 percent of the agency’s total revenue. The microbrewery industry’s recent growth is attracting a number of newcomers to the insurance market. “You hear about new breweries opening every day,” Whalen says. “We have three or four opening in my area right now and I’m rural.” Whalen expects to see even more growth in the craft brewing sector. As with many new small business industries, he expects to see some brewing companies that won’t make it. “Some will not be able to hang in there because of the competition, but there’s going to be more coming www.insurancejournal.com

into the market. They will merge or sell to others. There will be some shakeout of the smaller players. But for every one leaving there will be one coming in.” Other states outside the Northeast where the microbrewery boom is exploding include California, Colorado and Michigan, says Paul Martinez who manages Brewery Pak Insurance Program, a managing general agency that offers an exclusive admitted program with Great American insurance to cover the needs of breweries nationwide. Brewery Pak launched three years ago and currently writes about 150 breweries in 42 states, British Columbia and Ontario. Martinez, an avid craft beer enthusiast, says his agency saw a need in the expanding market for specialized coverages tailored to the microbrewery industry. “We’ve been managing programs with Great American since 1998 — that’s when the Winery Pak program started. From that, our principal saw the opportunity with all the breweries opening, and he approached Great American to start a brewery program as well.” Martinez says there are a number of similarities, and lots of differences, when insuring both wineries and breweries. “Wineries have different exposures like personal dwellings on the premises, they do a lot of cased good storage off premises, whereas the breweries keep everything in one location, they have their production and storage on one location.” As they grow breweries might contract third party storage facilities to house their beer off site, but many smaller facilities store onsite, he continued on page 18 March 10, 2014 INSURANCE JOURNAL-NATIONAL | 17

SPECIAL REPORT

Specialty Markets

continued from page 17 explained. So far, Brewery Pak’s performance is solid, Martinez says. “The claims experience has been good. We haven’t had any major claims; a couple of leakage and contamination claims which are specialized coverages that we offer in our package, and also some spoilage claims due to equipment breakdown … overall the loss ratio is very good.” Rates for coverage are very competitive, Martinez says. Brewery Pak’s customized coverages for breweries include property, general liability, beer stock, beer contamination, leakage, tanks and barrels, specialized beer loss valuation, equipment breakdown coverage, production equipment, product withdrawal expense, stock in transit, liquor liability, and others. For breweries with tasting rooms, restaurants, special events and even lodging other lines of coverage can be purchased. Martinez says Brewery Pak will accept microbreweries of all sizes as well, even new ventures. “I think it would be foolish for us to turn away the new ventures due to the growing number of them,” he says. “Plus we pride ourselves with growing with the breweries. 18 | INSURANCE JOURNAL-NATIONAL March 10, 2014

We love to be there from the first step. We have a couple of clients who have already grown exponentially since we wrote them three years ago.” Specialized Coverages John Hoefer has been writing breweries for about six years now, but he created the Brewery Insurance program, a division of independent agency Milestone Risk Management & Insurance Services based in Irvine, Calif., two years ago. “I started the program because I saw that there was a real need for some education on proper insurance for breweries,” Hoefer says. For many brewery owners, buying commercial insurance for their new business was a first, he says. Often they may not understand the coverages and that led to gaps in their insurance program. “There are some specialized coverages that really need to be on the policy in order to properly protect the brewery,” Hoefer says. “Every time I came across a brewery that I didn’t insure, they were always missing.” Craft breweries need specialized coverages similar to wineries, he says. “They need coverage for contamination of

their stock. They need coverage for leakage. They have big tanks full of beer, and they’re full for weeks on end. If a valve breaks or a forklift runs into it, the equipment is covered, but the beer inside is not covered unless they have specialized leakage coverage,” Hoefer says. Breweries need everything that a winery has except the winery policies weren’t adapted to fit the breweries, he says. The type of coverages needed depends on the breweries classification, an important area where specialists can help, Hoefer says. “There are a couple different classifications, and it’s based on the license classification from the state,” he says. There are “production breweries.” Those don’t serve any food and generally have an onsite brewery and what’s called a “tasting room” or a “tap room.” “They can only sell their beer out of their tasting room. Otherwise, they distribute their beer to bars and restaurants,” he says. Then there’s a brew pub. “A brew pub is actually a brewing license for a restaurant. The production breweries are essentially manufacturers that have a license to sell their own beer. A brew pub is a restaurant that has a license to brew beer,” he says. “Brew pubs have a lot of the same coverages required as restaurants, but then they also need to have specialized coverages for the brewery as well.” One major difference between wineries and craft brewers is the land exposure, says Matthew Carlson, vice president of Risk Strategies Co. “It’s more of an agriculture exposure,” Carlson says. “A brewery can set up in any urban area, industrial area, or even some people are doing it in their auxiliary barn depending on what location they’re at. I have a client in a rural part of Texas and essentially their barn is the brewery and that’s where they’ll brew their beer.” What’s similar to winery owners, in Carlson’s view, is the passion that craft brewers hold for their product. www.insurancejournal.com

“I love working with breweries,” Carlson admits. “I definitely spend a good chunk of my time trying to grow that business segment of my book. I just met with a client last week for lunch. We placed their business, but they’re a little far up north, and I hadn’t quite made it up there yet, and she happened to be in Los Angeles. We had lunch, and she brought me beer from the brewery.” That’s the side bonus to working with brewery clients, he says. Market Expansion One area of the country hot for the brewing boom is California, which currently boasts about 600 microbrewers in the state and counting. Paul Fuller, senior vice president of underwriting for Alteris Insurance Services Inc., a managing general agency based in San Francisco, helped establish a new program launched in January 2014 called Brewery Plus. Brewery Plus, which is endorsed by the California Craft Brewers Association, is underwritten through an A.M. Best “AXV” rated carrier and is being offered exclusively through four California-based independent agencies and brokers specializing in the microbrewery space. “The program takes out the holes and smooths out the coverage cracks for smaller to medium-sized brewers,” Fuller says. Among other coverages, Brewery Plus offers contamination, leakage and profit coverage in case there’s damage to the beer and it’s destroyed. The selling price is consistent with Alteris’ winery program, which has been on the market since 2006, Fuller says. Coverages such as boiler and machinery and liquor liability can be embedded onto the general liability form. In the past, such options had only been available to larger brewers in California, he says. The target market for Brewery Plus will be microbreweries generating $5 million or less in receipts. This small- to medium-sized market for microbrewers is ideal for insurance programs, he says. “Our Winery Plus program gives us the scale and comfort to provide this product to what we consider a homogwww.insurancejournal.com

manufacturing expertise that we are able to enous class of business. The making of craft apply what we already have in-house to the beer and the making of wine are very simineeds they have.” lar to manufacture.” Cassady has only seen a few agencies in With the maturation of the craft brewing the Midwest targeting the small to mediindustry, Fuller expects to see more compeum-sized microbrewery market. “The smalltition in the program market for smaller to er ones aren’t getting the attention they medium size brewers. need in the industry,” he says. “The craft brewing space is bifurcated Cassady sees lots of opportunity in the into large and all others. The large are those Midwest for microbrewery business going generating over 25,000 barrels a year — forward. “At some point we may get to a they have options,” he says. But the rest of saturation point, but at this point, we’re the industry is still open for new insurance not seeing that happening, especially in the solutions. Chicagoland area; there’s new breweries Fuller expects Brewery Plus to underopening all the time.” write at least 200 policies this year in Plus, it’s a fun industry to be a part of, he California alone. “Once we have established says. “I’m a big beer drinker myself, and I our procedures we will look at Oregon, don’t brew beer, so this is a way for me to Washington, Colorado and the New be involved in the industry, and add a little England states.” bit of what I do, with the guys that I like Fuller expects to see a similar trend in hanging around with.” microbrewing as what hapCarlson sees a bright future pened in Napa Valley. ‘I love working for craft brewers as well. He “We see similarities with with breweries.’ enjoys working with emerging the custom crush with the industries and was one of the burgeoning growth in craft first producers in California to target food brew in California,” he says. “We’ll see a lot trucks. of start-ups and a lot of individuals staking He relates the craft brewers market to their claim and making a go of the manufacCalifornia’s technology market. turing of specialized craft beers.” “I know it sounds weird, but you get Another newcomer to the craft beer these people that are very passionate about insurance world is The Horton Group’s their product — whether that’s a techTom Cassady, a sales executive based in nology product or that’s beer — there’s a Chicago. While insuring microbreweries is potential for one of those tech companies or a newer market for The Horton Group, the one of those breweries to become the next agency has been writing risks in the food Google,” he says. and beverage manufacturing space for years. Like the tech market, brewery owners “I came to Horton about a year ago and are young. They are female and male. They saw a need in the industry, so I’ve been come from all walks of life. Either they just working on building it for about a year graduated with a brewery degree, or they now,” Cassady says. “We’ve got about five took their passion for beer and turned it breweries in the books now, most of them into a new career. are on the smaller end, but have met with “I have one person where it just so hapupwards of 30 breweries in the last year, of pened that a brew house came up for sale varying shapes and sizes.” and they were selling the brewery man Cassady says the microbrewery insurance ufacturing part of the business, but not market is underdeveloped and has a need the restaurant part. My client decided to for more specialized attention. “It’s somebuy the brewery part and start a business. thing we’re putting a lot of time into.” Now, 10 years later they’re doing great and “They’re manufacturers, especially once expanding.” Before the beer-making venyou get to the size of the really mature ture, the co-founders were in the construcbreweries— that’s where they really are a tion safety management field. manufacturer,” he says. “We feel with our March 10, 2014 INSURANCE JOURNAL-NATIONAL | 19

IDEA EXCHANGE

Technology The Upcoming Windows XP Apocalypse

he end of the world is coming. The world of Windows XP that is. A significant event is happening in the technology industry that will affect insurance agents. On April 8, 2014, Microsoft will no longer support Windows XP. Yes, that Windows XP, the operating system that was launched more than 12 years ago — the same operating system that still commands more than 40 percent of all business computers — will come to an end. By Laird Rixford Why is Microsoft cutting support for Windows XP? It is so old that it predates 9/11. Though it is clearly still popular, the operating system is consuming a large amount of Microsoft’s resources that they would rather use on their newer operating systems Windows 7 and 8. If you feel surprised by this news, you should know Microsoft actually announced in 2007 they were planning to end support of Windows XP. They also pushed back the date after originally planning to end it in 2010. What does the end of support for Windows XP mean? It means that Microsoft will no longer provide technical support to vendors, integrators and end users. In other words if you use Windows XP, you will no longer receive security updates or product fixes. Essentially, the operating system will be taken off life support. The Death of Windows XP in Agencies Why is this end of Windows XP’s life 20 | INSURANCE JOURNAL-NATIONAL March 10, 2014

important to insurance agents? First, with a lack of updates and fixes, your agency’s computers will no longer be secure. This puts your clients’ data at risk as cyber attackers can target Windows XP vulnerabilities without worry of security updates or patches. If you have been following the recent stories of the data breaches at Target and other companies, you know data security is extremely important to consumers. Many errors and omissions (E&O) liability policies and compliance departments require agents to run up-to-date supported software for this very reason. Second, as the technology in modern operating systems advances, the programs that use this technology do, as well. For example, many agency automation systems use the latest technologies that are available through modern operating systems — like newer browsers, updated API libraries and more — to provide agents the best experience and features to accomplish their daily tasks. These automation systems might require you to upgrade from Windows XP so they can start using the newer abilities available in the latest operating systems. On April 8, your computer should still work fine, but it will be at risk of becoming infected with viruses, spyware or other malware that may result in crashes or, even worse, the theft of your clients’ personal information. The size of the risk has not been calculated. However, when it comes to protecting your clients’ data from hackers and yourself from potential E&O claims, it does not matter how big the risk is. Your system will

be vulnerable. You need to protect it. What Can You Do? Upgrade! You can install an updated operating system or upgrade the computer completely. You might choose to switch to web-based programs for rating and management systems as you can access data from anywhere there is an Internet connection and a web browser. By migrating to all web-based systems, you can even move past the desktop altogether and use tablets and smartphones, thus avoiding the next operating system apocalypse. You can upgrade to the Windows 7 or Windows 8 operating systems. Windows 7 has the familiar interface and is more budget-friendly than Windows 8; however, it is the older of the two operating systems. Windows 8 may require some getting used to as the interface has significantly changed from the Windows look you’re used to.

Don’t wait until April, and potentially expose your clients to hackers. The end of Windows XP is inevitable. Upgrade now! Tech Talk Look for the new technology column “Tech Talk” beginning in the March 24, 2014, issue, sponsored by ITC. Rixford is president at Insurance Technologies Corporation (ITC), a marketing, rating and management software and services provider to the insurance industry. You can reach him on Twitter at @lrixford or email: lrixford@getitc.com.

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CLOSER LOOK

Directors & Officers Liability Carriers Committed to D&O Segment By Amy O’Connor

everal turbulent years of increased claims, more regulation and additional oversight of directors and officers have not deterred carriers from the directors and officers (D&O) liability segment. As more carriers beef up their policies to address new needs, other newer entrants see plenty of opportunity for growth. Beazley & Hiscox, Travelers and Berkshire Hathaway Specialty Insurance (BHSI) are the most recent newsmakers. Underwriters for the companies agree that the private, non-profit and public D&O segments have evolved significantly in the last 10 years. This has resulted in a need for changes to D&O policies — led by requests from insureds themselves — and insurers have to respond if they want to stay on top in this oversaturated market. “The market and coverage is changing very rapidly,” says John Trefry, D&O product manager for Travelers’ Bond and Financial Products. “We try to be prudent in responding to those requests and understanding the ramifications of making even minor changes to policy languages. Keeping up with coverage requests, understanding what the

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significance of the changes are and if they make sense can be a challenge.” Rachel Turk, D&O underwriter, Specialty Lines for Beazley, says the changing landscape of claims and increasing international risks are a challenge and a catalyst for changes to D&O policies. “There are an increasing number of multinational companies that don’t just work in the U.S. and need policies in multiple jurisdictions. The severity and frequency of claims is not as high in the U.S. but [when companies have operations] in other jurisdictions there are tax investigations that can cause upsets,” she says. What has not changed in this market is the importance and necessity of D&O coverage — whether it is for public, private or non-profit directors and officers. It has been a tumultuous time for financial institutions, especially, and having adequate D&O coverage has been more important than ever since the financial crisis of 2008. Berkshire Hathaway Specialty Many carriers cut back on coverage or limits for directors and officers of financial institutions, or exited this class altogether in the last several years. But one particular-

ly newsworthy new entrant — Berkshire Hathaway Specialty Insurance — has committed to the class for the long term. “From an underwriting perspective, financial institutions are highly correlated to the economy. When there is an asset or credit bubble that bursts, financial institutions are largely impacted by these events and their balance sheets, performance and claims activity are concentrated on these events,” says Dan Fortin, senior vice president of Executive and Professional Lines. “Many insurers shy away because of the volatility but insurers like Berkshire Hathaway take a longer term approach. You have to if you are going to participate in this space because of the volatility.” BHSI launched its directors and officers coverage for financial institutions and larger commercial entities at the end of January. The new Executive First policy includes expanded protection for individual members of a board and management team in the event the company is insolvent or otherwise able to indemnify them in connection with a claim. The form also addresses exposures like securities class actions, shareholder derivative actions and government investigations. Capacity is available up to $100 million on a non-admitted basis, with admitted coverage coming later this year. Fortin says part of the long term approach involves being selective in pricing and with whom they insure, as well as partnering with those brokers who have the same perspective. “In a seven to 10 year period, there will be a time when underwriting results will not be pretty. But that can be offset by some very good years,” says Fortin. Todd Greeley, vice president of Executive Professional Lines, Claims, says the frequency of claims for financial institutions has dropped off significantly since the height of the crisis between 2007-2009, which he says fits in with the historical pattern the underwriters at BHSI have seen in their more than 20 years in the space. www.insurancejournal.com

“The bottom line for us is we really like this space — it is very cyclical and we have the ability to ride out the storms,” he says. “That risk selection is critical. If you can do that well, that helps you ride out the bad years and the years we don’t have the systemic events can be very good years.” Greeley says working with the large risks also allows BHSI more flexibility. “It’s a space where the ability to be creative in how you approach the risks is greater. You have very sophisticated customers who really appreciate the ability to be creative,” he says. Travelers For Travelers, the time was right to update its D&O coverage for public, private and non-profit organizations. Trefry says since the carrier first released its original Broad Form policy in 2009, the D&O market has evolved and changed rapidly with requests from insureds that the carrier previously responded to with endorsements. “We wanted to have a cutting edge product and we could have accomplished that through endorsements to the older form, but we felt now was the time to come out with a new form,” says Trefry. The new Broad Form+ includes: nonrescindable coverage for nonindemnifiable claims against directors and officers, including pre-claim inquiries by regulatory or governmental authorities; no exclusions for independent directors and an additional limit of liability for nonindemnified loss of independent directors without a requirement that claims, pre-claim inquiries or custodial detentions be unrelated; and difference in condition (DIC) coverage or protection when indemnification is not available or paid by any other source; among other features. The carrier also conducted research in the fourth quarter of 2013 on nonprofit buying habits and found that 69 percent of nonprofits don’t have D&O coverage and with more than two million nonprofits in the U.S., that means there is a real opportunity. The top four reasons the carrier found for nonprofits not to purchase coverage were: lack of perceived risk; lack of budget; lack

of necessity; or they felt the coverage was London markets, says Turk. not affordable. The Travelers survey also “Brokers can no long discount London as found that 40 percent of nonprofits that there are now two markets that offer $50 don’t purchase insurance don’t know their million in capacity and we can come up personal assets are at risk. with more creative solutions because we are “The lack of perceived risk is most consharing the risk,” she says. “With the concerning,” says Trefry. “Clearly there is a sortium we are more relevant and we are knowledge gap and that is valuable informahoping to see more risks.” tion. We are trying to encourage our trading Hiscox is in the process of getting its U.S. partners to educate their D&O business up and The D&O market is nonprofit clients.” running, with the prochanging very rapidly. gram being led by former Beazley Beazley executive, Chris The Lloyd’s-backed insurer released a Warrior. Turk says Beazley’s previous relanew suite of directors and officers forms at tionship with Warrior was another reason the end of December and just last month for the partnership with Hiscox. The conpartnered with Hiscox to offer brokers and sortium agreement is just for new business clients a D&O consortium providing higher with Beazley leading the business until limits to U.S.-domiciled companies. Beazley Hiscox’s program has been established. currently works with most D&O risks Then it will be up to brokers and clients except financial institutions. which insurer they want the lead coverage Turk says the goal of the consortium is to to be with. Clients are also not forced to give the two London-based markets a “seat use the consortium if they would prefer to at the table” when it comes to providing just work with one of the insurers. directors and officers coverage to U.S.-based “The program is very flexible and we are companies. Up until now, Beazley has comtrying to offer choice to brokers and let peted with U.S. insurers and it has strugthem decide how it will operate for their gled with getting business to think of the clients,” says Turk.

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SPOTLIGHT

Errors & Omissions E&O Insights: Put the Power of the Signed Application to Work

ith few exceptions, an application is a necessary document to secure a proposal or to bind coverage, and can actually possess tremendous power. When an errors and omissions (E&O) matter develops, all of the various documents, file notes, etc., are discoverable and typically admissible. Without a doubt, an application can play a huge role in the By Curtis M. Pearsall outcome of litigation. The question — will the application and documentation help or hinder your agency’s chances of prevailing in the E&O litigation? The Proper (with a capital “P”) handling of applications is a great place to start if your agency is serious about reducing its E&O exposure. The ‘3 Cs’ Does your application meet the “3 Cs” criteria? That is, 1) complete, 2) correct and 3) current.

The first thing to consider is the completeness of the application. While most producers probably don’t enjoy completing applications, it is a critical task in the sales process. Are applications from your agency completed fully or are some questions left blank? The answers to these blank items could significantly impact the account’s desirability or pricing. What happens if you’re unsure of some correct answers as applications are completed? Do you “presume” to know the answers or do you contact the prospect to check? In the haste to get applications submitted, a producer or account executive may answer the questions believing he or she is answering honestly and correctly. Carriers rely heavily on the application and believe the information presented to be truthful. What happens if, after a loss, the carrier discovers the information was incorrect? The following actual claim reveals what typically will happen: The agency had a new client who needed coverage for a home. The agent was not able

to have the client sign an application in his presence. The application submitted to the carrier stated the home was occupied. After a major fire loss occurred, the carrier found out the home was vacant. The carrier rescinded the policy, stating it would not have written the property had it known the home was vacant. The carrier returned the premium, essentially stating the policy was not in effect. A key issue developed when it was discovered that although the client had eventually signed the application, the agency had only sent him the actual signature page, and thus the client was not aware of the questions/answers pertaining to occupancy. The application was 10 pages long and the client had proof he was only sent a three-page fax by the agent. The agency was found negligent in its handling of the matter. There have been other E&O claims where the carrier decided to pay the claim, but then pursue a claim directly against the agent due to misrepresentation of the nature of the risk. With the right set of facts, carriers are winning these claims. The Best Approach Completing the application face-to-face with the prospect is the best approach, asking him or her the questions exactly as they appear and accurately noting the responses on the application. Don’t simply require the client to sign the application after you complete it. Require him or her to review the application in its entirety to ensure you have accurately stated the exposure. Then have the client sign it. This is one of the most important procedures for an agency to insist upon. In virtually every state, the customer is held responsible for the contents of the application

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once he or she has signed it. If the prospect misled you in the completion of the application, having his or her signature on the document could play a significant role if a problem develops. Do Not Sign It Do not sign the client’s signature to the application. While the agency may believe the customer has authorized it to do so, after a loss the customer may disavow giving an agent this authorization. Handwriting experts have found their way into E&O claims, so extreme caution should be exercised in this area. This E&O claim, involving an unoccupied high-end home, shows what can happen: The client was paying high premiums and wanted the carrier to lower them. The agent completed an application, which stated the home was occupied, and signed it for the client. A very large water-damage loss occurred. When the carrier found

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out the home was vacant, it took steps to your carriers are extremely important and rescind the policy, stating it would not have must be handled accordingly. Your agency’s written a vacant home. The client pursued goal should be to ensure the information in E&O litigation against the application is comDo your home and auto the agent and the carriplete, correct and curer. The client testified apps meet ‘3 Cs’ criteria? rent, with the entire the agent knew the application reviewed That is, 1) complete, 2) home was unoccupied. correct and 3) current. and signed by the cusThe agent disagreed. tomer. While getting The agency was found negligent. the insured’s signature may be an additional step that takes time, the power of this A Current Discussion signed application cannot be emphasized Another issue that occurs now and again enough. By mandating and enforcing these involves agencies completing “this year’s requirements, the power of the application application” using the information from “last works for you, not against you. year’s application.” Avoid this. It is extremely dangerous and fraught with potential Pearsall is president of Pearsall Associates Inc., problems. Because of the possibility that a risk management consulting firm specializing the risk has changed, it is always best — to helping agents protect themselves. He is also a speensure complete accuracy — that the applicial consultant to the Utica National Agents E&O cation is completed through current discusprogram. Phone: 315-768- 1534. Email: curtis@ sion with the customer. pearsallassociates.com. Blog: www.agentseotips. Bottom line: applications you submit to com.

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IDEA EXCHANGE

The Competitive Advantage Insurance Company Stability

any years ago, a well-known insurance company went from being highly rated to insolvent almost in a fortnight. Most people in the industry older than 50 years old remember that time. The failure was a shock that created lasting skepticism about insurance company ratings. The industry has not had a similar event in a decade or more, which tracks with historic surplus By Chris Burand and the historic soft market that has lasted almost a full decade (insolvencies are rarer in soft markets). To a large degree, the industry has lost institutional knowledge of what a large insolvency means, especially when everyone thought the company was solid. When institutional knowledge is lost, people begin taking for granted the good times and they do not consider that bad things can occur. Many younger people cannot relate to advice regarding what to do if a carrier becomes unstable. A large carrier becoming unstable is a possibility they have never considered and cannot fathom. This loss of institutional knowledge is concerning because while there is record surplus and surface stability, many red flags are flying. I am not crying wolf. I am simply attempting to create awareness of a severe event that has painful consequences, that has occurred with some regularity in the past. Just because it has not happened in the past 10 years does not mean it will not happen again. In fact, some similarities exist now with how the economy was supposedly crash-free, just before the credit crises. Among the warning flags are: 1. Rising rates. Contrary to the belief that rising rates, i.e., a hard market, floats all boats, more boats crash in hard markets. 2. The number of downgrades. 26 | INSURANCE JOURNAL-NATIONAL March 10, 2014

4. New types of markets. • The industry may now have more unrated carriers doing Main Street business, often on an admitted basis. 3. Reserve deficiencies exist. • The industry absolutely now has more According to A.M. Best’s 2014 Review/ business in non-typical insurance Preview, the P/C industry has a $45 billion organizations than ever. Excluding reserve deficit excluding mortgage and captives, a great portion of clients buyfinancial guaranty segments. Some analysts ing insurance from these entities do have concluded no reserve deficiency exists, not understand the extra risk they are but in studying reserve deficiencies for the accepting. past 15 years, A.M. Best’s estimates are usu• A large proportion of producers and ally in the middle between Pollyannas and agency owners do not understand the the curmudgeons. extra risk these entities pose to them These deficits are not spread evenly. or their insureds. It is likely that specific companies have • An example of extra risk involves their more than their disproportionate share. capital structures, which are not norAccording to a story mal (relative to the Luck is where opportunity way most insureds in Insurance Journal on Oct. 15, 2013, Tower think about insurmeets preparedness. Insurance announced a ance). These entities $365 million loss reserve charge after previare sometimes being credited by reguously indicating the charge would “only be lators and rating companies with the $60 million to $110 million.” ability to do capital calls/assessments. The company’s future is now being deterThat is fine except that I’m willing to mined. bet a material portion of these carriers’ Downgrades have exceeded upgrades for the third consecutive year according to A.M. Best in February 2014.

FIF = Financial Impairment Frequency

Green line = NPW growth

Red line = Impairment rates www.insurancejournal.com

Service Centers Another change worth consideration is company service centers. What if an agency has a lot of business in a company service center and that company fails? Sure, these companies are highly rated, but so was the one that failed. What is your contingency plan? How does the service center contract address this possibility? I am not suggesting any company with a service center is in jeopardy. I am recommending that agencies not take their stability for granted and forge a contingency plan now. If for no other reason, we may someday again have a major carrier promote a new CEO that decides to quit the property/casualty business suddenly as one did in the early ’90s or decides to implement a new distribution model. Similarly, what if an agency is using a non-carrier service center and that company locks its doors and pulls their computer plugs? What happens to your agency? Your data? Your customer service? How does the contract address this possibility? Most agencies were heavily paper-based when that large carrier failed. Downloads did not exist. Paper was likely a blessing. Consider what would happen in today’s world? Beyond the fact the industry has lost institutional knowledge of how a large, supposedly safe carrier suddenly goes under impacts an entire industry, the industry has changed significantly in the past 10 years. I am concerned the changes combined with the loss of institutional knowledge have created significant exposures for agencies. The exposures are severity issues, not www.insurancejournal.com

frequency issues. Because they are severity issues, people have a more difficult time finding the urgency required to address them. I encourage all readers to build their contingency plans. Hopefully you will never use them.

If you do, you will realize the true beauty of the quote that: “Luck is where opportunity meets preparedness.” Burand is the founder and owner of Burand & Associates LLC in Pueblo, Colo. Phone: 719-485-3868. E-mail: chris@burand-associates.com.

For over 36 years, the National Insurance Industry Council has raised $22 million for City of Hope’s mission to provide innovative treatments for people facing life-threatening diseases.

Insurance industry executives gathered for the 2013 City of Hope tour.

STEVE DECARLO CEO, AmWINS

2014 Spirit of Life Honoree

Steve DeCarlo, CEO of AmWINS and City of Hope’s 2014 Spirit of Life® honoree, encourages you to continue your legacy of support by participating in industry activities, large and small.

Your participation does make a difference!

GET INVOLVED 2014 Event Calendar Wednesday, March 12 City of Hope Dinner Reception and Tour Hosted by NIIC Langham Huntington Hotel & Spa Pasadena, CA City of Hope campus Duarte, CA Thursday, March 27 Hoops for Hope Philadelphia, PA Friday, March 28 Hoops for Hope Des Moines, IA Monday, April 7 Hoops for Hope Los Angeles, CA San Francisco, CA

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Sunday, April 27 to Wednesday, April 30 RIMS National Annual Conference Tristar Booth Denver, CO Monday, July 14 City of Hope Golf Outing Sponsored by NIIC West Coast Committee Annandale Golf Club Pasadena, CA Wednesday, August 20 Strike Out Cancer 300 Atlanta Atlanta, GA To learn more, visit cityofhope.org/niic or call 800-272-2310, ext. 26370

Saturday, September 13 Spirit of Life Gala Honoring Steve DeCarlo, CEO AmWINS Atlanta, GA Wednesday, October 15 Strike Out Cancer Splitsville Tampa, FL Saturday, October 18 Los Angeles Wine Auction Jonathan Club Los Angeles, CA

DEV 22172.JJC

insureds do not know they have the real potential of a capital call. Even people who remember the highly rated carrier crashing so quickly, even those most acutely hurt that had E&O suits filed against them because that carrier failed, may not fully appreciate how industry changes could drastically impact them quite differently. The industry has changed so much since then.

3/1/14 9:13 AM

March 10, 2014 INSURANCE JOURNAL-NATIONAL | 27

IDEA EXCHANGE

Hospitality Hospitality Workers’ Compensation Insurance Costs and Solutions

he worst kind of pain is self-inflicted pain. A large majority of the workers’ compensation injuries in the hotel and hospitality business are from the housekeeping department, and more specifically housekeepers/ room attendant injuries that could have been prevented. Workers’ comp insurance rates have skyrocketed in the past 18 months. The higher rates are due to increased medical By Todd Seiders costs, the unknown factors of Obamacare, and employees making more claims due to the recession and their fear of being laid off or losing hours. Many companies have reduced their management staff in the past several years, which has led to mismanagement of, or no management whatsoever, of employee on-the-job injuries and safety programs. Unmanaged employee injuries add more cost to workers’ comp insurance claims, and higher costs translate into higher insurance rates at renewal time. Because self-inflicted pain is the worst kind of pain, the loss control team at Petra Risk Solutions has accumulated and evaluated extensive workers’ comp injury data from the hotel industry. Below are some helpful suggestions on how to better manage hospitality workers’ comp injuries with the focus being on pre-employment and loss-avoidance opportunities. Pre-Employment and Hiring Practices First, careful consideration should be paid to an employee’s physical capabilities as they relate to the job description for the employment position. It’s recommended that the hospitality entity provide pre-employment physicals for hotel positions that require physical exertion. Examples of these positions could be housekeepers, laundry room attendants and maintenance staff. 28 | INSURANCE JOURNAL-NATIONAL March 10, 2014

The following example explains why. Recently we saw a 48-year-old female who had two complete knee replacement surgeries on the same knee, get hired as a housekeeper. Within the first three months of employment, she injured her bad knee, and the cost of her workers’ comp claim will be in the tens of thousands of dollars. If this employee had received a pre-employment physical prior to her hiring, the doctor may not have recommended her for that very strenuous position.

clean 15 rooms or less per day. Those housekeepers that clean 15 rooms or less per day have fewer injuries than housekeepers who clean 16 or more rooms a day. Housekeepers who have to rush to complete their rooms get injured more often. Statistical data has shown that the 15 room cleaning maximum is in fact the “magic number” that will reduce workers’

Loss Avoidance-Proactive Safety Management and accountability statistical data from Petra Risk Solutions shows that approximately 80 percent of all employee injuries occur within the first two years of employment, with many of those injuries occurring in the first year of employment. Many hotels are shortstaffed, so they tend to put a new employee to work as soon as possible, with little or no training. Injury data demonstrates it is extremely important to spend the time training new hires on their job and how to work safely before they jump into their job role. Hotel and hospitality management should spend time with the new employees and train them how to work safely and to use proper techniques to avoid injuries. Limiting the number of rooms that housekeepers clean is another huge revelation when it comes to loss avoidance. Hospitality risks can reduce housekeeping injuries by requiring housekeepers to www.insurancejournal.com

comp injury claims. The business segment of the hotel also affects the room attendant workload. For instance, it takes less time to clean a room with a single business guest as opposed to a family of five on vacation. Training staff to work using proper ergonomic techniques while working also will reduce injuries. Some of the most expensive injuries that require surgery and rehabilitation are cumulative and repetitive motion injuries. Repetitive motion injuries occur over time while using the wrong work techniques. For example: 1. Use proper lifting techniques, straight back, bent knees, lift with the legs. 2. Do not bend over to clean a floor or bath tub. Use a pole with a cleaning device to stand up while cleaning. Or, get on the knees and clean from an upright position, rather than bending over. 3. Do not stand on bath tub side walls or toilets while cleaning. Do not stand on chairs or other furniture. Use step stools or ladders. 4. Do not overfill or overload linen carts, dirty linen bins, or housekeeping carts. Make multiple trips with smaller loads to avoid injury. 5. Use gloves to protect hands and safety glasses or goggles to protect eyes. There are several new tools and products that can help hospitality entities reduce injuries to staff. One example: mattress “lifters” that prevent housekeepers from straining to lift heavy mattresses multiple times a day. Also available are devices that help housekeepers efficiently put bed pillows into pillow cases. The latest hotel industry trend is to have elegant bedding, which includes multiple pillows. Another recommended tool: cleaning devices on poles, or

powered scrubbing devices. There are seva concern. Doing this everyday can cause eral cleaning products on the market that shoulder or neck strains. Hotels should use poles, so employees can stand upright, review the type of vacuum they use, as well without bending or straining their backs as how much the unit weighs. This will as they clean floors, bath tubs and shower help to reduce worker strain when maneuenclosures. These products can be picked vering the vacuum multiple times a day. up at any home improvement store, or at Cleaning hotel rooms is difficult, physical national retailers work, and is taken Prevention of injuries and such as Target or for granted occasionWal-Mart. ally. Using newly cretraining staff in safe work We have tested and innovative practices will save money on ated a battery-powered hotel housekeeping scrubber device that workers’ comp injury claims products can prevent and overall insurance costs. injury. reduces cleaning time and effort, and Reevaluating also allows housekeepers to stand upright how a housekeeper or room attendant perwhile cleaning multiple floors and bathforms his or her day-to-day routine is also tubs. important. Prevention of injuries and train Room attendants use hand pump spray ing hotel staff in safe work practices will bottles to dispense chemicals every day. save money on workers’ comp injury claims This can lead to carpal tunnel injuries from and reduce overall insurance costs in the repetitive motion. Another type of sprayer long-run. allow the user to pump air pressure into the bottle, so the housekeeper only has Seiders is director of risk management for Petra to press on the trigger once, allowing the Risk Solutions, which provides risk management chemical to spray quickly and without addiand insurance services for the hospitality industry tional strain on the fingers and arm. nationally. Website: www.petrarisksolutions.com. Room attendants that “whip” large indusPhone: 800-466-8951. Email: todds@ trial-type vacuum cleaners around are also petrarisksolutions.com.

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11/19/13 11:26 AM

March 10, 2014 INSURANCE JOURNAL-NATIONAL | 29

Part of a Balanced Breakfast

Toast Coffee

Start Your Morning Smart with IJâ&#x20AC;&#x2122;s Daily Headlines eNewsletter

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IJ Daily Headlines

2014

2013 Hospitality Risks Directory

Hospitality Risks Directory

earching for the right market for a hard-to-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. We hope you find IJ’s 2014 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.

Banquet Halls Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Advanced E&S Group - Midwest Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies

www.insurancejournal.com

States Available MA RI CA IA IL IN KS KY MI MN MO NE OH WI CT AZ CA CO NE NM NV OR TN TX UT WA AR AZ CA LA MO MS NM NV OK TX UT All States All States IL IN KY MI OH TN TX Many States AL CA FL GA LA MS NV NY SC TX CA TX All States All States NY AZ CA CO ID NV OR UT WA ID MT OR WA CA

Banquet Halls Market Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Crusader Insurance Company Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland and Hine, Inc. Meadowbrook Insurance Group Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company

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

RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Southern Insurance Underwriters, Inc. CMGA Specialty Insurance SUITELIFE by Venture Programs Swett & Crawford TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services

CA CT MA ME NH NY RI VT All States IL IN OH

RCA Insurance Group

All States Most States LA NM OK OR TX WA

Most- see website for specifics

AR IA IL IN KS KY MO OK TN

AL FL GA SC TN CA CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX All States All States Most States TX All States Most States Most States All States CA All except Monopolistic All States IL MO LA NM OK TX CA

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N31

2014 Hospitality Risks Directory Bars/Night Clubs

Bars/Night Clubs

Bars / Night Clubs coverage category sponsored by:

Western Security Surplus Insurance Brokers- check out our ad on page 8 (West) and page 7 (South Central) Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property Advanced E&S Group - Midwest Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Camford National Insurance Brokers, LLC. Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Crusader Insurance Company Evolution Insurance Brokers Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Horizon E & S Insurance Brokerage Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC IPC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM McClelland and Hine, Inc. Meadowbrook Insurance Group Midlands Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New England Excess Exchange, Ltd.

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

N32 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

Market NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Advisors, LLC Quaker Special Risk Quirk & Company

RCA Insurance Group (and Taverns)

RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Taverns) Swett & Crawford Tejas American General Agency Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Security Surplus Insurance Brokers Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

States Available All States MA IN MI OH AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA All States TX Most States All States All States Most States LA NM OK OR TX WA Most- see website for specifics CA CT MA ME NH NY RI VT All States All States IL IN OH

AR IA IL IN KS KY MO OK TN

AL FL GA SC TN CA CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX All States TX Most States Most States All States CA All except Monopolistic All States IL MO CA TX LA NM OK TX CA All States

Bed & Breakfasts Market A.I.I. Insurance Brokerage of Mass., Inc. Advanced E&S Group - Midwest Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc.

States Available MA RI IA IL IN KS KY MI MN MO NE OH WI CT AZ CA CO NE NM NV OR TN TX UT WA AR AZ CA LA MO MS NM NV OK TX UT All States All States AZ CA NV IL IN KY MI OH TN TX Many States AL CA FL GA LA MS NV NY SC TX CA www.insurancejournal.com

2014 Hospitality Risks Directory Bed & Breakfasts Market Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Crusader Insurance Company Distinguished Programs Evolution Insurance Brokers Executive Perils Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC IPC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland and Hine, Inc. Meadowbrook Insurance Group Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Advisors, LLC Promont Specialty (GL & Liquor only) Quaker Special Risk Quirk & Company RIC Insurance General Agency, Inc. Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Programs Swett & Crawford TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies www.insurancejournal.com

Bed & Breakfasts States Available TX All States All States NY CA NJ NV AZ CA CO ID NV OR UT WA ID MT OR WA CA CT DE MA ME MD NH NJ RI PA VA AR OK TN TX All States CA All States All States except NY All States CA Most States NJ NY All States AZ CA ID NV OR WA All States Most States All States DE FL MA MD NJ NY OH PA RI WV AR KS LA NM OK TX AZ CA NV WA AK AZ CA HI NV TX TX All States All States All States AL FL GA LA NC SC TN All States CT MA ME NH NJ NY PA RI VT All States MA IN MI OH AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX Most States Most States All States All States All States (no GL in LA) Most States LA NM OK OR TX WA CA All States IL IN OH

AR IA IL IN KS KY MO OK TN

AL FL GA SC TN All States All States Most States TX All States

Market Towerstone, Inc. Trivedi-Capacity Associates, LLC Tuscano Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services

States Available Most States Most States Most States All States CA All except Monopolistic All States IL MO LA NM OK TX CA

Breweries/Micro Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies CPRO Associates CRC Insurance Services Crusader Insurance Company Evolution Insurance Brokers Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC IPC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Meadowbrook Insurance Group Morstan General Agency of Florida II, Inc.

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

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N33

2014 Hospitality Risks Directory Casinos

Breweries/Micro Market N-Surance Outlets, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company RCA Insurance Group RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Specialty Insurance Swett & Crawford Tejas American General Agency Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

Casinos

Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. AMC Insurance Services American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company CPRO Associates

States Available AL FL GA LA NC SC TN CT MA ME NH NJ NY PA RI VT All States MA IN MI OH AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA All States TX Most States All States Most States LA NM OK OR TX WA Most- see website for specifics CA CT MA ME NH NY RI VT All States All States IL IN OH

AR IA IL IN KS KY MO OK TN

CAâ&#x20AC;&#x2C6;CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX All States TX Most States Most States All States CA All except Monopolistic All States IL MO CA All States

States Available MA RI All States CT AR AZ CA LA MO MS NM NV OK TX UT All States All States All States Many States AL CA FL GA LA MS NV NY SC TX CA TX All States All States CA NJ NV AZ CA CO ID NV OR UT WA ID MT OR WA AR OK TN TX

N34 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

Market CRC Insurance Services Distinguished Programs Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Perils Fulcrum Insurance Programs Gray-Stone & Company, Inc. Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company K & K Insurance Group, Inc. LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM Meadowbrook Insurance Group Morstan General Agency of Florida II, Inc. National Specialty Underwriters, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Quaker Special Risk Prime Insurance Company RIC Insurance General Agency, Inc. Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) SUITELIFE by Venture Programs Swett & Crawford Tuscano Agency U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

States Available All States All States All States All States except NY All States All States Most States All States All States Most States All States All States AR KS LA NM OK TX AZ CA NV WA AK AZ CA HI NV TX All States All States All States All States CT MA ME NH NJ NY PA RI VT All States MA IN MI OH AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX Most States Most States CA All States IL IN OH AR IA IL IN KS KY MO OK TN

All States All States Most States All States All except Monopolistic All States IL MO CA All States

Caterers Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Advanced E&S Group - Midwest Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC

States Available MA RI CA IA IL IN KS KY MI MN MO NE OH WI CT AZ CA CO NE NM NV OR TN TX UT WA AR AZ CA LA MO MS NM NV OK TX UT All States All States IL IN KY MI OH TN TX Many States www.insurancejournal.com

2014 Hospitality Risks Directory Caterers

Caterers Market Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland and Hine, Inc. Meadowbrook Insurance Group Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities ProHost USA Quaker Special Risk Quirk & Company RCA Insurance Group RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Delis) www.insurancejournal.com

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

AR IA IL IN KS KY MO OK TN

AL FL GA SC TN CAâ&#x20AC;&#x2C6;CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX

Market Swett & Crawford TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Security Surplus Insurance Brokers Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

States Available All States Most States TX All States Most States Most States All States All except Monopolistic All States IL MO CA TX LA NM OK TX CA All States

Dinner Theaters Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Crusader Insurance Company Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Perils Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies K & K Insurance Group, Inc. LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc.

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

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N35

2014 Hospitality Risks Directory Dinner Theaters Market McClelland and Hine, Inc. Meadowbrook Insurance Group Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Southern Insurance Underwriters, Inc. CMGA Swett & Crawford Tejas American General Agency Tuscano Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

Gentleman’s Clubs States Available TX All States All States All States AL FL GA LA NC SC TN CT MA ME NH NJ NY PA RI VT All States MA IN MI OH AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX Most States Most States All States Most States LA NM OK OR TX WA CA CT MA ME NH NY RI VT All States All States IL IN OH

AR IA IL IN KS KY MO OK TN

AL FL GA SC TN All States TX Most States All States CA All except Monopolistic All States IL MO CA All States

Gentlemen’s Clubs Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Bass Underwriters Bliss & Glennon, Inc. Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Chopra Insurance Brokerage, Inc.

States Available MA RI CA CT AZ CA CO NE NM NV OR TN TX UT WA Most States AR AZ CA LA MO MS NM NV OK TX UT All States All States IL IN KY MI OH TN AL CA FL GA LA MS NV NY SC TX CA All States All States NY CA NJ NV

N36 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

Market Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CRC Insurance Services Crusader Insurance Company Evolution Insurance Brokers Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Horizon E & S Insurance Brokerage Insurance Multiplex Agency, LLC J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM McClelland and Hine, Inc. Meadowbrook Insurance Group Midlands Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc.

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

Partners Specialty Group, LLC Patriot National Underwriters, Inc. Prime Insurance Company Quaker Special Risk Quirk & Company RCA Insurance Group RIC Insurance General Agency, Inc. Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Specialty Insurance Swett & Crawford Tejas American General Agency Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

All States TX Most States Most States LA NM OK OR TX WA Most- see website for specifics CA All States IL IN OH

Pacific Excess Insurance Marketing

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

AR IA IL IN KS KY MO OK TN

CA CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX All States TX Most States Most States All States CA All except Monopolistic All States IL MO CA All States

www.insurancejournal.com

2014 Hospitality Risks Directory Hotels/Motels

Hotels/Motels

Hotels / Motels coverage category sponsored by: McClelland and Hine, Inc. - check out our ad on page 3 (South Central)

Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Advanced E&S Group - Midwest Region Advanced E&S Group - Southeast Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services American Union Risk Associates, LLC AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies CITA Insurance Services Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Crusader Insurance Company Distinguished Programs Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Perils

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

Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Horizon E & S Insurance Brokerage Hotels & Resorts Insurance Program – CITA Ins. Insurance Multiplex Agency, LLC IPC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies KZ Insurance Brokerage, LLC LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM McClelland and Hine, Inc. Meadowbrook Insurance Group Midlands Monitor Liability Managers Morstan General Agency of Florida II, Inc.

CA Most States NJ NY AZ CA NV WA All States All States AZ CA ID NV OR WA All States Most States All States DE FL MA MD NJ NY OH PA RI WV AZ CA CO LA NV TN AR KS LA NM OK TX AZ CA NV WA AK AZ CA HI NV TX All States TX All States Most States All States All States

Fulcrum Insurance Programs

www.insurancejournal.com

All States

Market Motel Insurance Brokers, Inc. N-Surance Outlets, Inc. National Specialty Underwriters, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New Empire Group New England Excess Exchange, Ltd. NIF Group NSM Insurance Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Partners Specialty Group, LLC Patriot National Underwriters, Inc. Prime Insurance Company

Professional Liability Ins. Svcs, Inc. - Underwriting Facilities

Promont Advisors, LLC Promont Specialty (GL & Liquor only) 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) Sangamon Associates/Hotel Excess Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Programs Swett & Crawford TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Towerstone, Inc. Travelers Trivedi-Capacity Associates, LLC Tuscano Agency U.S. Risk Insurance Group, Inc.

UCA General Insurance Services, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC Zurich Programs

Resorts

Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Atlas General Insurance Services, LLC Bass Underwriters

States Available Most States AL FL GA LA NC SC TN All States All States All States CT MA ME NH NJ NY PA RI VT All States Most States MA IN MI OH All States TX Most States

All States

All States All States (no GL in LA) 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

All States AL FL GA SC TN All States All States Most States TX All States Most States All States Most States Most States All States

AZ CA ID IL NM NV OR UT WA CA All except Monopolistic All States IL MO LA NM OK TX CA All States All States except FL

States Available MA RI All States CT AR AZ CA LA MO MS NM NV OK TX UT All States All States IL IN KY MI OH TN Many States AL CA FL GA LA MS NV NY SC TX

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N37

2014 Hospitality Risks Directory Resorts Market Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company CITA Insurance Services Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Distinguished Programs Evolution Insurance Brokers Executive Perils

Fulcrum Insurance Programs

Gorst Co. Gray-Stone & Company, Inc. Hotels & Resorts Insurance Program â&#x20AC;&#x201C; CITA Ins. Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies K & K Insurance Group, Inc. LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM Meadowbrook Insurance Group MexiPass International Insurance Services, LLC Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. National Specialty Underwriters, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Specialty (GL & Liquor only) 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) Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Programs Tejas American General Agency The McGowan Companies Travelers

Resorts States Available CA TX All States All States NY All States AZ CA CO ID NV OR UT WA ID MT OR WA CA CT DE MA ME MD NH NJ RI PA VA AR OK TN TX All States All States All States except NY All States

All States

CA Most States All States All States All States Most States All States DE FL MA MD NJ NY OH PA RI WV All States AR KS LA NM OK TX AZ CA NV WA AK AZ CA HI NV TX All States All States All States All States All States AL FL GA LA NC SC TN All States CT MA ME NH NJ NY PA RI VT All States MA IN MI OH AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX Most States Most States All States All States (no GL in LA) 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

AL FL GA SC TN All States TX All States All States

N38 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

Market Swett & Crawford

States Available All States

Tuscano Agency 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 Wright Insurance Services, LLC Zurich Programs

Most States All States All except Monopolistic All States IL MO CA All States All States All States except FL

Restaurants Restaurants coverage category sponsored by:

Brecht & Associates - check out our ad on pg 6 (South Central) Burns & Wilcox - our ad is on page N5 (National) M.J. Hall & Company - check us out on page 10 (West) Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property Advanced E&S Group - Midwest Region Advanced E&S Group - Southeast Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services All Risks, Ltd. AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Charles A Walker Corp, an AmWins Company Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Crusader Insurance Company Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Perils Founders Insurance Company Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey

States Available MA RI CA All States IA IL IN KS KY MI MN MO NE OH WI FL CT AZ CA CO NE NM NV OR TN TX UT WA Most States AR AZ CA LA MO MS NM NV OK TX UT All States All States AZ CA NV IL IN KY MI OH TN TX Many States AL CA FL GA LA MS NV NY SC TX CA TX All States All States NY

AZ CA CO ID NV OR UT WA

ID MT OR WA CA CT DE MA ME MD NH NJ RI PA VA AR OK TN TX All States CA All States All States except NY All States All except DC MA MS NM CA Most States NJ NY www.insurancejournal.com

2014 Hospitality Risks Directory Restaurants Market HCC Specialty (MA) Horizon E & S Insurance Brokerage Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC IPC (includes Food Delivery) Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies KZ Insurance Brokerage, LLC LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM McClelland and Hine, Inc. Meadowbrook Insurance Group Midlands Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company

Professional Liability Ins. Svcs, Inc. - Underwriting Facilities

ProHost USA Promont Advisors, LLC Promont Specialty (GL & Liquor only) Quaker Special Risk Quirk & Company RCA Insurance Group RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Alternatives & Management (RAM) Risk Placement Services, Inc. Roush Insurance Services, Inc. RSI International, Inc. (Missouri) Southern Cross Underwriters Southern Insurance Underwriters, Inc. CMGA Specialty Insurance (and Delis) SUITELIFE by Venture Programs Swett & Crawford TAPCO Underwriters, Inc. Target Market Specialists Tejas American General Agency The McGowan Companies Towerstone, Inc. Travelers Tuscano Agency U.S. Risk Insurance Group, Inc.

UCA General Insurance Services, Inc.

www.insurancejournal.com

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

All States

All States except AK All States All States (no GL in LA) Most States LA NM OK OR TX WA Most- see website for specifics CA CT MA ME NH NY RI VT All States All States IL IN OH

AR IA IL IN KS KY MO OK TN

All States AL FL GA SC TN CA CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX All States All States Most States All States TX All States Most States All States Most States All States

AZ CA ID IL NM NV OR UT WA

Market Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc.

States Available CA All except Monopolistic All States

W.A. Schickedanz Agency, Inc. Western Security Surplus Insurance Brokers Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

IL MO CA TX LA NM OK TX CA All States

Spas Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Bliss & Glennon, Inc. Burns & Wilcox Capitol Insurance Companies Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Perils Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Meadowbrook Insurance Group Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc.

States Available MA RI CA CT AZ CA CO NE NM NV OR TN TX UT WA AR AZ CA LA MO MS NM NV OK TX UT All States All States AZ CA NV IL IN KY MI OH TN TX Many States AL CA FL GA LA MS NV NY SC TX CA All States All States

AZ CA CO ID NV OR UT WA

ID MT OR WA CA CT DE MA ME MD NH NJ RI PA VA AR OK TN TX All States All States All States except NY All States CA Most States NJ NY All States All States Most States All States DE FL MA MD NJ NY OH PA RI WV AR KS LA NM OK TX AZ CA NV WA AK AZ CA HI NV TX All States All States AL FL GA LA NC SC TN CT MA ME NH NJ NY PA RI VT All States MA IN MI OH

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N39

2014 Hospitality Risks Directory Spas Market Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities 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) SASSI - Salon & Spa Specialty Insurance Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Programs Swett & Crawford TAPCO Underwriters, Inc. Tejas American General Agency Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC Zurich Programs

Special Events States Available AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA TX Most States Most States 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

Mostâ&#x20AC;&#x2C6;States AL FL GA SC TN All States All States Most States TX Most States Most States All States All except Monopolistic All States IL MO LA NM OK TX CA All States All States except FL

Special Events Special Events coverage category sponsored by:

Abram Interstate - check out our ad on page 6 (West Region) SPECIAL EVENTS Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Advanced E&S Group - Midwest Region Agency Intermediaries, Inc. Agostini Wholesale Insurance Services AMC Insurance Services American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Bass Underwriters Bliss & Glennon, Inc. Brecht & Associates Burns & Wilcox Capitol Insurance Companies Ck Specialty Insurance Associates - All Offices Cochrane & Company Compass Insurance Group of Agencies

States Available MA RI CA IA IL IN KS KY MI MN MO NE OH WI CT AZ CA CO NE NM NV OR TN TX UT WA AR AZ CA LA MO MS NM NV OK TX UT All States All States All States IL IN KY MI OH TN TX AL CA FL GA LA MS NV NY SC TX CA TX All States All States

AZ CA CO ID NV OR UT WA

ID MT OR WA CA

N40 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

Market Connecticut Underwriters, Inc. CPRO Associates CRC Insurance Services Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Founders Insurance Company Gateway Specialty Insurance Gorst Co. Gray-Stone & Company, Inc. Gremesco Of New Jersey HCC Specialty (MA) Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC J.M. Wilson James River Insurance Company Jimcor Agencies K & K Insurance Group, Inc. LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM McClelland and Hine, Inc. Meadowbrook Insurance Group MexiPass International Insurance Services, LLC Midlands Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Ohio E & S Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company 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) Southern Insurance Underwriters, Inc. CMGA Swett & Crawford TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Towerstone, Inc. Tuscano Agency U.S. Risk Insurance Group, Inc. Unisource Program Administrators USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Western Security Surplus Insurance Brokers Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Zurich Programs

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

AL FL GA SC TN All States Most States TX All States Most States Most States All States All except Monopolistic All States IL MO CA TX LA NM OK TX CA All States except FL

www.insurancejournal.com

2014 Hospitality Risks Directory - Alphabetical Directory of Markets

2013 HospitalityCharles Risks Directory A Walker Corp, an AmWins Company

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

Anderson & Murison, Inc.

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

800 W. Colorado Blvd., Los Angeles, CA 90041 Phone: 323-255-2333, Fax: 323-255-0957 Email: jmccarthy@amqts.com www.andersonmurison.com

P.O. Box 8049, Syracuse, NY 13217 Phone: 315-488-3143, Fax: 315-488-3029 Email: gseubert@twg-esr.com www.twg-esr.com

Abram Interstate Ins. Services, Inc.

Appleby & Sterling

2290 Agate Ct., Ste. D, Simi Valley, CA 93065 Phone: 805-583-9828, Fax: 805-583-9832 Email: mike@applebyandsterling.com www.applebyandsterling.com

Chopra Insurance Brokerage, Inc.

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

ACE Westchester Specialty--Property

Arlington/Roe & Co of Indiana

8900 Keystone Crossing, Ste. 800 Indianapolis, IN 46240 Phone: 800-878-9891, Fax: 888-552-9891 Email: info@arlingtonroe.com www.arlingtonroe.com

CITA Insurance Services

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

Advanced E&S Group - Midwest Region

Ashley General Agency

500 N. Michigan Ave., Ste. 1039, Chicago, IL 60611 Phone: 866-867-0505, Fax: 312-245-3001 Email: quote@advancede-s.com www.aesins.com

2251 - A Ward Ave., Simi Valley, CA 93065 Phone: 936-441-5959, Fax: 936-521-5922 Email: rcranford@ashleyga.com www.ashleyga.com

Advanced E&S Group - Southeast Region

Atlas General Insurance Services, LLC

3250 N. 29th Ave., Hollywood, FL 33020 Phone: 954-963-6666, Fax: 954-986-0670 Email: info@advancedesgroup.com www.advancedesgroup.com

4365 Executive Dr., Ste. 400, San Diego, CA 92121 Phone: 877-66-ATLAS, Fax: 619-814-8914 Email: info@atlas.us.com www.atlas.us.com

Agency Intermediaries, Inc.

Bass Underwriters

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

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

Agostini Wholesale Insurance Services

Bliss & Glennon, Inc.

7125 El Cajon Blvd. Ste 3, San Diego, CA 92115 Phone: 800-922-7283, Fax: 619-593-2008 Email: teresa@agostinisurplus.com www.agostiniwholesale.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 for Casinos Email: cmills@amerspec.com for Special Events www.amerspec.com

AmWINS Group, Inc. - 60 Offices Nationwide See Website for Locations - HQ - Charlotte, NC 28210 Phone: 704-973-3489, Fax: 704-943-9000 Email: marketing@amwins.com www.amwins.com www.insurancejournal.com

See Website for Addresses, HQ - San Jose, CA 95037 Phone: 800-411-0083, Fax: 408-227-7732 Email: carol@ckspecialty.com www.ckspecialty.com

Cochrane & Company

P.O. Box 19150, Spokane, WA 99219 Phone: 509-838-0655, Fax: 509-838-1710 Email: marketing@cochraneco.com www.cochraneco.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 www.gorstcompass.com

Connecticut Underwriters, Inc.

421 Wadsworth St., Middletown, CT 06457 Phone: 860-347-9600, Fax: 860-347-9611 Email: info@CTUnderwriters.com www.ctunderwriters.com

CPRO Associates

CRC Insurance Services - All Offices

Brecht &â&#x20AC;&#x2C6;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 Locations HQ - Detroit/Farmington Hills Phone: 248-932-9000, Fax: 248-932-9046 Email: quote@burns-wilcox.com www.burnsandwilcox.com

See Website for Locations Headquarters - Birmingham, AL 35209 Phone: 205-870-7790, Fax: 205-879-3739 Email: marketing@crcins.com www.crcins.com

Crusader Insurance Company

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

Distinguished Programs

1180 Avenue of the Americas, 16th Fl New York, NY 10036 Phone: 212-297-3100, Fax: 212-297-3130 Email: info@distinguished.com www.distinguished.com

American Union Risk Associates, LLC 1250 E. Hallandale Beach Blvd., Ste. 1003 Hallandale Beach, FL 33009 Phone: 954-362-1520, Fax: 954-362-1527 Email: Thomas.Clementi@aurains.com www.aurains.com

Ck Specialty Insurance Associates - All Offices

5501 LBJ Fwy., Ste 240, Dallas, TX 75240 Phone: 972-598-0400 Email: tcampbell@cproassociates.com www.cproassociates.com

10150 York Rd., 5th Fl, Hunt Valley, MD 21030 Phone: 800-366-5810, Fax: 410-828-8179 Email: allrisksij@allrisks.com www.allrisks.com 824 Front St., Conway, AR 72032 Phone: 800-233-2398, Fax: 501-450-6962 Email: stevejr@amcins.com www.amcinsurance.com

681 S. Parker St., Orange, CA 92868 Phone: 714-939-7470, Fax: 714-939-7753 Email: CSenefsky@citainsurance.com www.citainsurance.com

435 N. Pacific Coast Hwy, Redondo Beach, CA 90277 Phone: 800-829-7330, Fax: 877-622-2911 Email: info@bgsurplus.com www.bgsurplus.com

All Risks, Ltd.

AMC Insurance Services

16800 Devonshire St., Granada Hills, CA 91344 Phone: 818-923-6090, Fax: 818-923-6203 Email: rchopra@choprainsurance.com www.choprainsurance.com

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

Entertainment Brokers International A member of the OneBeacon Insurance Group 1100 Glendon Ave., Ste. 900, Los Angeles, CA 90024 Phone: 781-332-8450, Fax: 866-934-4992 Email: pwilliams@onebeacon.com www.onebeacon.com

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N41

2014 Hospitality Risks Directory - Alphabetical Directory of Markets

2013 Hospitality Risks Directory HCC Specialty (MA)

Evolution Insurance Brokers 8722 S. Harrison St., Salt Lake City, UT 84070 Phone: 877-678-7342, Fax: 801-304-5551 Email: quotes@eibdirect.com www.eibdirect.com

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

Executive Perils

Horizon E & S Insurance Brokerage

11845 W. Olympic Blvd., Ste. 750, Los Angeles, CA 90064

Phone: 310-444-9333 ext. 145, Fax: 310-444-9355 Email: damienm@eperils.com www.eperils.com

2245 First St., Ste. 211b, Simi Valley, CA 93065 Phone: 805-494-6553, 805-494-6778 Email: submissions@horizonsurplus.com www.horizonsurplus.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

Founders Insurance Company

Indemnity Excess & Surplus Agency

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

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.

Insurance Multiplex Agency, LLC

365 W. Passaic St., Ste. 225, Rochelle Park, NJ 07662 Phone: 201-880-1891, Fax: 201-880-1895 Email: inquiry@insurancemultiplex.com www.insurancemultiplex.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

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 & 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.

Gorst Co.

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

Gremesco Of New Jersey

1711 Ginesi Dr., Freehold, NJ 07728 Phone: 732-761-9904, Fax: 732-761-9905 Email: wendy.certo@gremesconj.com www.gremesconj.com

5501 LBJ Fwy, Ste. 740, Dallas, TX 75240 Phone: 214-347-8117 Email: wwrobel@level1st.com www.level1st.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

M.J. Hall & Company, Inc.

P.O. Box 192, Stockton, CA 95201 Phone: 209-948-8108, Fax: 209-465-3843 Email: mindy@mjhallandcompany.com www.mjhallandcompany.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

Izzo Insurance Services, Inc.

150 S. Bloomingdale Rd., Bloomingdale, IL 60108 Phone: 800-800-1704, Fax: 630-582-2803 Email: MJones@IzzoInsurance.com www.izzoinsurance.com

J.M. Wilson

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

MAXIMUM

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

McClelland and Hine, Inc.

P.O. Box 700930, San Antonio, TX 78270 Phone: 800-333-2017, Fax: 210-366-2407 Email: Shannon@mhi-tx.com www.mhi-tx.com

Gateway Specialty Insurance

1170 Devon Park Dr., Wayne, PA 19087 Phone: 877-977-4474, Fax: 610-254-1855 Email: info@gatewayspecialty.com www.gatewayspecialty.com

LevelFirst

Meadowbrook Insurance Group

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

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.kandkinsurance.com

N42 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

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

MexiPass International Insurance Services, LLC P.O. Box 60727, Pasadena, CA 91116 Phone: 800-639-4727, Fax: 800-639-4727 Email: jorge@mexipass.com www.mexipass.com

Midlands

3817 NW Expy, Ste. 1000, Oklahoma City, OK 73112 Phone: 800-800-4007, Fax: 800-800-4007 Email: marketing@midman.com www.midlandsmgt.com

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2014 Hospitality Risks Directory - Alphabetical Directory of Markets Monitor Liability Managers

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

2013 HospitalityQuirkRisks Directory & Company

Ohio E & S Agency, Inc.

5800 Monroe St., Bldg A, Sylvania, OH 43560 Phone: 419-885-2400, Fax: 419-885-7285 Email: jeff.pearse@ohioeands.com www.ohioeands.com

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

Morstan General Agency of Florida II, Inc. 1835 Banks Rd., Margate, FL 33063 Phone: 800-261-5177, Fax: 516-302-8951 Email: pwoodard@morstan.com www.morstan.com

Motel Insurance Brokers, Inc.

801 International Pkwy, 5th Fl, 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

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

RCA Insurance Group

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

Partners Specialty Group, LLC

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

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

RIC Insurance General Agency, Inc.

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

Patriot National Underwriters, Inc.

National Specialty Underwriters, Inc. 10900 NE 8th St., Ste. 1170, 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: sbentley@nautilus-ins.com www.nautilusinsgroup.com

New Empire Group

214 W. Park Ave., Long Beach, NY 11561 Phone: 516-431-8300, Fax: 516-431-5351 Email: jimo@newempiregroup.com www.newempiregroup.com

New England Excess Exchange, Ltd. P.O. Box 219, Montpelier, VT 05601 Phone: 800-548-4301, Fax: 800-347-4935 Email: achase@neee.com www.neee.com

NIF Group

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

NSM Insurance Group

555 North Lane, Ste. 6060, Conshohocken, PA 19428 Phone: 610-941-9877, Fax: 610-941-9889 Email: jwmccaffery@nsminc.com www.nsminc.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

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1333 Broad St., Clifton, NJ 07013 Phone: 800-526-0147 ext. 2019 Email: mmaher@rca-insurance.com www.rca-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

RISCO Insurance Brokerage, Inc.

60 Catamore Blvd., East Providence, RI 02914 Phone: 401-435-5400 Email: info@risco-inc.com www.risco-inc.com

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

Risk Alternatives & Management (RAM)

Prime Insurance Company

3104 Creekside Village Dr., Ste. 501, Kennesaw, GA 30144 Phone: 770-424-5770, Fax: 770-424-5774 Email: jonathan@ram-insurance.com ; submissions@ram-insurance.com www.ram-insurance.com

Professional Liability Insurance Svcs, Inc. - Underwriting Facilities

Risk Placement Services, Inc.

303 W. Madison St., Ste. 2075, Chicago, IL 60606 Phone: 800-257-5590, Fax: 877-452-6910 Email: RJL@primeis.com www.primeis.com

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

ProHost USA

Roush Insurance Services, Inc.

4500 Park Glen Rd., Ste. 410, Minneapolis, MN 55416 Phone: 952-922-2404, Fax: 952-922-5423 Email: info@prohostusa.com www.prohostusa.com

Promont Advisors, LLC

1 E. Wacker Dr., Ste. 19201, Chicago, IL 60601 Phone: 312-262-3331, Fax: 312-262-3301 Email: mniemann@promontadvisors.com www.promontadvisors.com

Promont Specialty

1 E. Wacker Dr., Ste. 19201, Chicago, IL 60601 Phone: 312-262-3331, Fax: 312-262-3301 Email: mniemann@promontspecialty.com www.promontspecialty.com

Quaker Special Risk

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

50+ Locations, Headquarters - Itasca, IL 60143-3141 Phone: 866-595-8413 Email: Contact_Us@RPSins.com www.rpsins.com 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

Sangamon Associates/Hotel Excess

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

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

March 10, 2014 INSURANCE JOURNAL-NATIONAL REGION | N43

2014 Hospitality Risks Directory - Alphabetical Directory of Markets

2013 Hospitality Risks Directory

Southern Cross Underwriters - All Offices

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

Specialty Insurance

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

SUITELIFE by Venture Programs

1301 Wrights Lane East, West Chester, PA 19380 Phone: 800-282-6247 ext. 286, Fax: 610-692-5977 Email: Marketing@suitelifeins.com www.Suitelifeins.com

The McGowan Companies

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

Towerstone, Inc.

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

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

Travelers

Contact your local Commercial Accounts Representative for more information. www.travelers.com (Addtâ&#x20AC;&#x2122;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

See Website for Locations, HQ - Atlanta, GA 30327 Phone: 404-240-5200, Fax: 404-240-5393 Email: info@swett.com www.swett.com

Swett & Crawford serves independent agents & brokers through specialized P&C, Oil & Gas/Energy, Professional Services, Transportation, Reinsurance & Underwriting Practice Groups. These groups provide access to commercial insurance products & programs, including P&C coverages, products liability, reinsurance, professional liability, commercial & public auto liability as well as a host of customized binding authorities & exclusive programs tailored to specific industries, businesses & professionals.

Tuscano Agency

950 Highland Ave., Greensburg, PA 15601 Phone: 724-836-1510 Email: info@tuscano.com www.tuscano.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

Tejas American General Agency

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

USG Insurance Services, Inc.

W.A. Schickedanz Agency, Inc.

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

Western Security Surplus Insurance Brokers, Inc. 595 E. Colorado Blvd., Ste. 810, Pasadena, CA 91101 Phone: 626-584-0110, Fax: 626-584-0110 Email: kstevens@wssib.com www.wssib.com

Western Surplus Lines Agency, Inc. P.O. Box 6609, Abilene, TX 79608 Phone: 800-592-4408, Fax: 325-695-0371 Email: fpeck@westernsurplus.com, croeder@westernsruplus.com www.westernsruplus.com

Wholesale Connection Insurance Services

21800 Burbank Blvd., Ste. 202, Woodland Hills, CA 91367 Phone: 818-716-9800, Fax: 818-716-9800 www.wcis-ins.com

Willis Programs, ResortGuard Ins. Program

One New Hampshire Ave., Ste. 200, Portsmouth, NH 03801 Phone: 603-334-3029, Fax: 603-334-3090 Email: Jeffrey.benjamin@willis.com www.resortguard.com

TAPCO Underwriters, Inc.

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

Unisource Program Administrators

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

Trivedi-Capacity Associates, LLC

Swett & Crawford

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

See Website for Locations - HQ - Jackson, MS 39211 Phone: 601-957-3344, Fax: 601-957-3344 Email: iinfo@scui.com www.scui.com

UCA General Insurance Services, Inc.

Wright Insurance Services, LLC

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

24551 Del Prado, Ste. 4126, Dana Point, CA 92629 Phone: 949-489-1833, Fax: 949-489-5702 Email: robert@robertwrightinsurance.com www.robertwrightinsurance.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.

Zurich Programs

N44 | INSURANCE JOURNAL-NATIONAL REGION March 10, 2014

13810 FNB Pkwy, Omaha, NE 68154 Phone: 866-873-0782, Fax: 402-963-5289 www.zprogramsmatch.com

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NATIONAL COVERAGE

MyNewMarkets Primary Flood Market Detail: SeaCoast Underwriters Inc. (www.

seacoastunderwriters.com) can write primary flood insurance for homeowners, renters and condo owners/renters. Limits for the building are available up to $250,000 max and $100,000 max for contents. The National Flood Insurance Program (NFIP) is managed by the Federal Emergency Management Agency (FEMA), a component of the U.S. Department of Homeland Security (DHS). Available limits: As needed Carriers: Nationwide, National Casualty States: Fla., Ga. and Texas Contact: Haley Miller at 407-333-7423 or email: marketing@seacoastunderwriters.com

Escapees RV Club Market Detail: BancorpSouth Insurance Services Inc.

(www.bxsi.com) provides customized coverage at competitive rates in every state. Available limits: As needed Carrier: Unable to disclose States: Ala., Ark., Ariz., Conn., D.C., Dela., Fla., Ind., Ky., La., Maine, Mass., Md., Miss., Mo., N.H., N.J., N.Y., Ohio, Okla., Pa., R.I., S.C., Tenn., Texas, Va., Vt. and W.Va. Contact: Dennis Vidrine at 225-336-3299 or email: dennis.vidrine@bxsi.com

Senior Living Market Detail: Commercial Risk Services (www.

commercialriskservice.com) offers complete programs for senior housing, assisted living facilities, nursing homes, as well as home health care businesses. Coverage includes: property, general liability, professional liability, auto, workerâ&#x20AC;&#x2122;s comp, as well as employee benefits needs. Available limits: Minimum $250,000, maximum $5 million Carrier: Unable to disclose States: Ark., Fla., Mo., ]Okla., Tenn. and Texas Contact: Bobby Bland at 479-273-1376 or email: bobby@ commercialriskservice.com

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Advertisers Index Readers, browse, contact, or do product searches on any of our full page advertisers at: www.insurancejournal.com/adshowcase/ Abram Interstate www.abraminterstate.com Access Home Insurance www.accesshomeinsurance.com ACORD www.acordlomaforum.org Agency Ideas www.agencyideas.com American Reliable www.assurantspecialtyproperty.com Applied Underwriters www.applieduw.com Brecht & Associates www.brechtassoc.com Burns & Wilcox Ltd www.burnsandwilcox.com Century National www.cnico.com Chubb Corporate www.chubb.com City of Hope www.cityofhope.org First American Specialty Insurance Company www.firstam.com Golden Bear Insurance Company www.goldenbear.com Great American Insurance Group www.GreatAmericanInsurance.com IICF www.iicf.org Lighthouse Holdings, LLC www.lighthousepropertyins.com M.J. Hall & Company, Inc. www.mjhallandcompany.com McClelland & Hine www.mhi-tx.com Monarch E & S Insurance Services www.monarchexcess.com Navigators Management Company, Inc. www.navg.com Oak & Associates www.oakandassociates.com PersonalUmbrella.Com www.personalumbrella.com QBE www.qbededicated.com State Compensation Insurance Fund www.scif.com Texas Mutual Insurance Company www.texasmutual.com Western Security Surplus www.wssib.com

W6 SC9; SE5 25 29 47 2, 48 SC6 5 W5 9 27 W7 W9 13 21 SC10; SE6 W10 SC3 W3 3 23 5 15 W1 SC5 W8; SC7

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IDEA EXCHANGE

Closing Quote

In the Sharing Economy, Who Shares the Risk?

By Kathleen Tierney

everal economic and societal factors have fueled the growth of the sharing economy, in which people rent, borrow, share and swap items they might have purchased 10 or 20 years ago. But what is being overlooked in the rush to embrace this new way of consumerism are the risks to those on both sides of the transactions. As more people turn their homes into hotels and their cars into cash, many are relinquishing some of their personal privacy while relying largely on trust to make deals with strangers they’ve met online. In this brave new world where laypeople — not businesspeople — are making the deals, many owners and renters are not adequately considering or managing all the risks. The safety nets that law, regulation and insurance provide will need to evolve to help mitigate the risks. A recent survey by ORC International conducted on behalf of the Chubb Group of Insurance Companies shows that more than half of vacation homeowners would rent their homes to others for financial gain, and more than one-third of boat owners would rent out their boats. More than one-third (36 percent) of Americans would rent someone else’s home for vacation, but far fewer (20 percent) would rent out their own home to others. There are inherent risks with sharing belongings when an unused home, boat or car is used for economic gain, including damage and personal injury. Although the chance of a serious incident may be slight, the financial consequences to the owner or renter can be devastating. The Chubb survey revealed that people are at least aware of some of these risks. Survey respondents selected

46 | INSURANCE JOURNAL-NATIONAL March 10, 2014

several fears that might prevent them from letting others rent their home: bedbugs as a parting gift from renters (73 percent); theft of silver, antiques or family heirlooms (70 percent); breakage of valuables (69 percent); and someone sleeping in their beds (56 percent). Other significant fear factors included: renters leaving lit candles that could burn down the house (76 percent); renters throwing a wild party (75 percent); and someone getting hurt on their property (70 percent). Most people renting out their vacation home will expect the usual wear and tear —a broken vase, a wine stain on the carpet, a clogged toilet. New strategies are But if they want to protect themselves from exposures that needed to tackle could result in significant finanthese emerging cial loss, they should speak exposures. with their insurance agents. Some risks may be covered by insurance and some may require an additional policy. For some exposures, there may be no coverage available. New risk mitigation strategies are needed to tackle these emerging exposures. Businesses will be created to help manage the risks, and insurance coverages will evolve. Most importantly, those on both sides of these transactions — the owners and the renters — will need to take some personal responsibility by better defining the rules and helping to protect one another. Tierney is chief operating officer of Chubb Personal Insurance in Whitehouse Station, N.J.

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