Insurance Journal West 2016-03-07 by Insurance Journal

WEST EDITION Flood Policies Explode in California Calif. WC Medical Review Decisions Googleâ&#x20AC;&#x2122;s Autonomous Car Hits Bus

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Inside This Issue

Special Report:

Homeowners Coverage Puzzle Taking on New Shapes

March 7, 2016 • Vol. 94 No. 5 • West

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NATIONAL COVERAGE

WEST COVERAGE

IDEA EXCHANGE

10 Why Buyers, Sellers File Claims Under M&A Insurance: AIG

W1 California Commissioner, Allstate Agree to Homeowner Rate Reduction

28 The Competitive Advantage: Chris Burand

14 Spotlight: 10 Things to Know About Luxury Auto 18 Closer Look: What to Know About Insuring Vacant Property 20 Special Report: Homeowners Coverage Puzzle Taking on New Shapes 24 Closer Look: California’s Porter Ranch Blowout Highlights Evacuation Risk 26 Special Report: Auto Insurer 2015 Underwriting Performance Loses Traction 31 2016 Hospitality Risks Directory

6 | INSURANCE JOURNAL-WEST March 7, 2016

W1 Record Number of Flood Policies Bought by Californians, FEMA Says

30 Growing Your Property Casualty Agency: Alan Shulman 46 Closing Quote: How to Attract, Retain Next Generation of Brokers

W1 Hoverboards Banned on San Francisco State University Campus W6 Nevada Insurance Commissioner Approves Workers’ Comp Rate Decrease W8 Google Self-Driving Car Hits Bus in California Crash W10 Report: Most California Workers’ Comp Medical Review Decisions Upheld

DEPARTMENTS W4 People 11 Declarations 11 Figures 12 Business Moves 16 MyNewMarkets

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Opening Note Property Claim Satisfaction Slips

ustomer satisfaction among homeowners filing a property claim has slipped for the first time in five years, largely driven by declines in satisfaction with the total settlement and service interactions, according to the J.D. Power 2016 U.S. Property Claims Satisfaction Study. The study measures satisfaction with the property claims experience by examining five factors (in order of importance): settlement; first notice of loss; estimation process; service interaction; and repair process. Satisfaction is calculated on a 1,000-point scale. According to the study, satisfaction fell 5 points to 846 from 2015. The largest changes are in the service interaction factor (- 8 points), driven by declines in both the local agent (-8) and claims professional (-28) sub factors. Weather events are drove declines in customer satisfaction this year. Survey results are impacted by how insurers handled a few major events. However, weather alone does not fully explain the dip in overall satisfaction. For instance, simple service practices such as returning promised callbacks are down 1 percentage point from last year, and only 42 percent of customers indicate that when contacting their insurer someone was “always available immediately” to assist them. Responsiveness, a primary Customer satisfaction among driver of service interaction homeowners filing a property satisfaction, is down significlaim has slipped for the first cantly year-over-year among claimants interacting with time in five years. local insurance agents or claims professionals (-0.09 points and -0.43 points, respectively, on a 10-point scale). Some of the key findings of the 2016 study: Eighty-one percent of highly satisfied claimants (overall satisfaction scores of 900 or higher) say they “definitely will” renew their policy, and 81 percent say they “definitely will” recommend their current insurer, while only 14 percent of displeased claimants (scores of 549 or less) say they “definitely will” renew and 7 percent say they “definitely will” recommend. Just 13 percent of displeased claimants indicate they have switched insurers due to claims experience and 40 percent intend to shop within the next 12 months. The desire for more help is strongest among the youngest groups, where 31 percent say they want help selecting a contractor. Non-weather water claims are the most frequently reported claims in 2016. Satisfaction with the handling of non-weather-related water damage dropped 19-points to 835, while satisfaction with the handling of hail damage claims is highest at 858. Additionally, satisfaction with theft claims is 840 (+20 points from 2015), while satisfaction with fire claims is 839 and Andrea Wells with mold 834 (-27 points and -38 points, Editor-in-Chief respectively). 8 | INSURANCE JOURNAL-NATIONAL March 7, 2016

Publisher Mark Wells | mwells@wellsmedia.com EDITORIAL Chief Content Officer Andrew Simpson | asimpson@insurancejournal.com Editor-in-Chief Andrea Wells | awells@insurancejournal.com East Editor Young Ha | yha@insurancejournal.com Southeast Editor Amy O’Connor | aoconnor@insurancejournal.com South Central Editor/Midwest Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Don Jergler | djergler@insurancejournal.com International Editor Lisa Howard | lhoward@wellsmedia.com Senior Editor Susanne Sclafane | ssclafane@insurancejournal.com ClaimsJournal.com Editor Denise Johnson | djohnson@claimsjournal.com Columnists Chris Burand, Alan Shulman Contributing Writers James Auden, Kate Holland, Mark Hollmer, Joshua Lauth, Kim Van Orman, Pascal Ray SALES Chief Marketing Officer Julie Tinney (800) 897-9965 x148 | jtinney@insurancejournal.com Sales Manager Lauren Knapp (800) 897-9965 x161 | lknapp@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 | dkaplan@insurancejournal.com Romeo Valdez (800) 897-9965 x172 | rvaldez@ijacademy.com.com Midwest Lisa Whalen (800) 897-9965 x180 | lwhalen@insurancejournal.com South Central Mindy Trammell (800) 897-9965 x149 | mtrammell@insurancejournal.com East (NY, PA and CT only) Dave Molchan (800) 897-9965 x145 | dmolchan@insurancejournal.com Southeast & East (except for NY, PA and CT) Howard Simkin (800) 897-9965 x162 | hsimkin@insurancejournal.com New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale Kelly De La Mora (800) 897-9965 x125 | kdelamora@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 DESIGN/WEB Chief Technology Officer/Chief Innovation Officer Joshua Carlson | jcarlson@insurancejournal.com V.P. of Design Guy Boccia | gboccia@insurancejournal.com Audience Development Elizabeth Duffy | eduffy@wellsmedia.com Marketing Director Derence Walk | dwalk@insurancejournal.com Senior Web Developer Chris Thompson | cthompson@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Tim Layer | tlayer@wellsmedia.com IJ ACADEMY OF INSURANCE V.P. of Education Chris Boggs | cboggs@ijacademy.com Online Training Coordinator Barbara Whiffen | bwhiffen@ijacademy.com ADMINISTRATION Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com

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News & Markets Why Buyers, Sellers File Claims Under M&A Insurance: AIG

early 14 percent of mergers and acquisitions (M&A) insurance policies written globally by American International Group Inc. resulted in a claim, according to a study by the insurer, one of the largest writers of M&A policies in the world. AIG said its study of its representation and warranties (R&W) insurance claims data between 2011 and 2014 suggests a significant number of M&A transactions worldwide may see issues from breaches of deal terms discovered after closing. Financial statement misrepresentations were the leading cause of these M&A insurance claims, accounting for 28 percent of all claims during the period. Tax errors or misrepresentations were the second most frequent claim type, accounting for 13 percent of filed claims, followed by 11 percent of claims filed due to discrepancies that emerge from a company’s contracts. “A deal can come back to haunt,” said Mary Duffy, global head of M&A Insurance. “From AIG’s perspective, transactions pose risks to a significant number of companies, despite the best efforts during due diligence. Even the most sophisticated and largest companies can and do miss critical issues during the deal process.” Buyers in a transaction purchase R&W insurance to protect against breaches of representations and warranties (whether innocent or otherwise) made by a seller during the deal process. Sellers also purchase the insurance to protect against buyers claiming such breaches. The study found that companies in deals worth $1 billion or more were the most likely to claim damages following the close of a transaction, with 19 percent of policies covering 10 | INSURANCE JOURNAL-NATIONAL March 7, 2016

this deal size seeing a claim. Companies a claim to be filed after a deal closes. The involved in transactions under $100 million data showed the tail on this type of M&A were the next likeliest with 15 percent of policy can extend well more than a year policies covering this deal size seeing a beyond a deal’s closing date. claim. Clients in the Asia Pacific region were The study also found: the most likely to file claims, • Buyers in a transaction were ‘A deal can come with about 18 percent of back to haunt.’ most likely to buy an M&A policyholders there reportpolicy, accounting for 75 pering a claim during the study cent of policy purchases. Approximately period. EMEA (Europe, the Middle East 13 percent of them reported a claim after a and Africa) had the lowest rate of claims deal closed. reported with 11 percent of policyholders • Sellers accounted for 25 percent of policy submitting a claim. uptake. They were much more likely to However, EMEA claims tended to be report a claim, with nearly one-in-five (19 more severe, accounting for the majority of percent) doing so. the largest claims paid out by AIG during • While buyers were less likely to file a the time period. claim, their claims were more severe. The While 74 percent of claims were filed by majority of the top 15 largest claims reportpolicyholders within 18 months of the close ed to AIG during the study period were of transaction, a significant 26 percent were from buyer-side policies. filed after the 18-month mark. “More and more, M&A insurance is Where and When? becoming part of the transaction process The study revealed global variations in worldwide,” Duffy said. “Companies see it M&A claim frequency and severity, as well as a better alternative to closing a deal than as the length of time it typically takes for contentious negotiations to allocate potential risks and unknowns.” The claims data between 2011 and 2014 cover a significantly larger pool of transactions than in prior periods, reflecting an increase in M&A activity and the growing acceptance and use of R&W policies as part of the deal process, according to AIG. The total number of claims during the study period was 132, which can be considered low volume relative to other insurance lines. However, the claims data spans policies covering roughly 1,000 deals worth more than $200 billion, and policies written during the study period still hold the potential for a claim. www.insurancejournal.com

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News & Markets Wrongful Death Suit Filed Against Washington Nursing Home

California Commissioner, Allstate Agree to Homeowner Rate Reduction

nursing home in Marysville, Wash., has again been accused of giving a patient inadequate care that resulted in death. An Edmonds lawyer has filed a wrongful-death lawsuit against the Marysville Care Center in connection to the February 2013 death of 85-year-old Norman Mallang. The company was also the target of a lawsuit in the death of 74-year-old Violet Riddle. According to court documents, Mallang became dehydrated and malnourished shortly after being admitted to the nursing home. He fell numerous times and also developed bed sores and MRSA. He was transferred to an Everett hospital and subsequently died from his injuries. The lawsuit claims the nursing home was negligent and didn’t provide adequate care. Marysville Care Center Executive Director Brandon Davis says he is unable to discuss pending litigation. Copyright 2016 Associated Press.

Record Number of Flood Policies Bought by Californians, FEMA Says

Hoverboards Banned on San Francisco State University Campus

ederal emergency officials in late February reported a surge in the number of California residents who have purchased flood insurance, most likely in response to a rainy El Niño winter. Officials with the Federal Emergency Management Agency said insurers wrote more than 55,500 new policies since Aug. 31, a 25 percent increase. The number of new policies topped 27,000 in December alone, astonishing agency officials who say they haven’t witnessed this kind of an increase since the National Flood Insurance Program was created by Congress in 1968. FEMA chalked up the uptick to greater awareness of El Niño. However, the agency did not report increases in other western states also affected by El Niño. Strong El Niño storms drenched parts of California in January. It’s uncertain whether this season’s rains will rival that of El Niño rains in 1997 and 1998, when storms killed more than a dozen people, washed out highways and wiped out crops. Copyright 2016 Associated Press. W2 | INSURANCE JOURNAL-WEST March 7, 2016

alifornia Insurance Commissioner Dave Jones reached an agreement last month with Allstate Insurance Co. and Allstate Indemnity Insurance to reduce the carrier’s homeowner insurance rates statewide by an average of 12.6 percent. The average annual decrease is roughly $230. The rate reduction is retroactive to Feb. 1. Rate regulation in California applies to homeowners, auto, and other property/casualty insurance. Insurers must get approval from the insurance commissioner before they can raise or lower rates. The commissioner approves rates he believes are sufficient to cover claims costs, administrative expenses and a reasonable return for the insurance company. The commissioner has the authority to reject what he feels are excessive rates. The amount of a decrease and whether a policyholder receives a decrease depends on factors that include the location of the insured property, and other risk characteristics and coverage features. Jones also approved a new coverage option added by Allstate that enables policyholders to select a separate higher deductible for wildfire peril and a lower one for other risks, such as fire not related to wildfire, water damage or burglary. The separate deductible option allows consumers to further reduce their overall premium.

tudents at San Francisco State University will have to come back from the future now that hoverboards have been banned from campus due to fire concerns. Administrators informed students by email in late February that the two-wheeled, self-balancing devices are prohibited on school grounds and in dormitories. The boards are popular but have been linked to fire hazards. The U.S. Consumer Product Safety Commission issued a letter last month noting 52 reports of fires that users say were caused by hoverboards in 24 states. The government says it will seize or recall any boards that fail to meet federal safety standards. In January, a homeowner in Sonoma County saved his house after finding his daughter’s hoverboard shooting sparks. Hoverhoards aren’t the only transportation device banned on the San Francisco State University campus of nearly 30,000 students. Bicycles, scooters, roller skates and skateboards are also prohibited. Hoverboards are legal on California streets and bike lanes with certain restrictions. www.insurancejournal.com

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People Frank Stipati

Pauline Bareno

Matthew Morris

Greg Winter

Cypress, Calif.-based UCA General Insurance Services Inc. has named Frank Stipati president of the firm. He will be responsible for day-to-day operations and the profitability of UCA. Stipati has held various positions within UCA for the past 26 years. UCA provides commercial property/casualty package markets for brokers throughout the western United States. SDS General Insurance Services Inc. in California has named Pauline Bareno vice president of marketing. Bareno began her career at an insurance carrier, moving to the retail side at John Burnham Insurance, International Facility and most recently Maverick Insurance as a senior workers’ compensation broker specialist. SDS is a wholesale operation specializing in workers’ comp insurance with offices in Fullerton and Long Beach. LP Insurance Services Inc. has named Matthew Morris to its Phoenix, Ariz., team. Morris is responsible for maintaining and servicing client relationships. His areas of expertise include professional services, real estate, technology, manufacturing and construction among others. Morris, formerly of CNA, has been in the insurance industry for more than 11 years. Reno, Nev.-based LP Insurance is a risk management and commercial insurance brokerage firm. Lockton’s mountain west operation in Denver, Colo., has named Greg Winter an employee benefits producer. Lockton’s pacific operation has named Suzy R. Betterly as a vice president, and consultant in San Diego, Calif. Winter was with Assurant Employee Benefits prior to Lockton. He was with Enterprise Fleet Management as a senior account executive before that. Betterly, who will be responsible for delivering solutions to clients’ benefits programs, has more than 17 years of experience in data analytics, consumer-driven approaches and flex pricing strategies. Betterly was a senior account executive at Intercare/ HUB International prior to Lockton. She also served in executive positions and as a senior analyst for benefits consulting firms including Willis, Mercer Human Resource Consulting, and Marsh & McLennan Kansas City, Mo.-based Lockton is a privately held insurance broker. Burnham Benefits Insurance Services in California

W4 | INSURANCE JOURNAL-WEST March 7, 2016

has named Denise Feldman vice president. Feldman has experience in the healthcare industry, regulatory compliance and the Health Insurance Portability and Accountability Act. Prior to Burnham Feldman was vice president of Keenan Healthcare, and before that was president of California Healthcare Consulting Inc. She was previously director of the Los Angeles Global Human Resource Solutions practice at PricewaterhouseCoopers. Burnham Benefits is an employee benefits consulting and brokerage firm headquartered in Irvine, Calif. EPIC Insurance Brokers & Consultants has added Trish Drew to the firm’s Northern California construction practice. Drew will be based in EPIC’s Concord, Calif., office and will report to Curt Perata, regional director of property/ casualty. Drew has more than 35 years of experience, and has focused on the risk management and insurance needs of the construction industry, both as a risk manager and as an account and client services executive. EPIC is retail P/C and employee benefits insurance brokerage and consulting firm. LP Insurance Services Inc. has hired Ryan Krauser on its Northern Nevada sales team. Krauser, formerly of Edgewood Partners Insurance Center in Reno, has been in the insurance industry throughout for more than six years. His areas of expertise include group captives, cyber liability/data breach, unmanned aerial vehicle and medical marijuana. Reno-based LP Insurance Services is a risk management and commercial insurance brokerage firm. Barbara Richardson has been appointed as commissioner of the Nevada Division of Insurance. The appointment comes after a long nationwide recruitment to fill the vacancy after the resignation of Scott Kipper in July 2015. Amy Parks, who served as acting commissioner during the interim, will resume her duties as the chief insurance counsel at the division. Richardson was the director of operations and fraud for the New Hampshire Insurance Department for the past 11 years. In that capacity was a state representative at the National Association of Insurance Commissioners. Previously, she was an adjunct professor at the University of New Hampshire School of Law and Franklin Pierce College. Prior to that she was a private practice attorney. www.insurancejournal.com

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News & Markets Nevada Insurance Commissioner Approves Workers’ Comp Rate Decrease

cting Nevada Insurance Commissioner Amy L. Parks approved a filing from the National Council on Compensation

Insurance for an average decrease of 5.5 percent for Nevada workers’ compensation voluntary insurance loss costs.

An average decrease of 4.2 percent for workers’ comp insurance assigned-risk rates was also approved. The filing will take effect on March 1. This decrease in loss costs is the largest since NCCI’s 2010 filing when loss costs decreased by an average of 7.6 percent, according to Parks’ office. The majority of the decrease in loss costs is due to combined favorable changes in loss experience and favorable changes in loss development. This suggests that the amount of reported workers’ comp claims will not grow over time by as large a proportion as previously anticipated. Both indemnity and medical loss components of workers’ comp, as analyzed by NCCI in its recently approved filing, showed improved experience and favorable loss development, according to Parks. The reduction in assigned-risk rates takes into account the factors affecting the voluntary market, as well as information specific to the assigned-risk market. In addition to the average decrease of 4.2 percent for the assigned-risk market, NCCI also reduced its assigned-risk expense constant from $240 to $160. This change would tend to benefit smaller risks in the assigned-risk market and is thus a change that is favorable to small-business development in Nevada. This table illustrates by industry group the proposed average changes: Industry Group Voluntary Assigned Risk Contracting Goods & Services Manufacturing Office & Clerical Miscellaneous

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News & Markets Google Self-Driving Car Hits Bus in California Crash

lphabet Inc.’s Google self-driving car struck a municipal bus in a minor crash, in what may be the first case of one of its autonomous cars hitting another vehicle. In a Feb. 23 report filed with California regulators,

Google said the Feb. 14 crash took place in Mountain View, Calif., when a self-driving Lexus RX450h sought to get around some sandbags in a wide lane. The vehicle and the test driver “believed the bus would slow or allow the Google (autonomous vehi-

Organizers of Salt Lake Comic Con Closer to Name Rights Settlement

he organizers of Salt Lake Comic Con and San Diego Comic-Con say they’re getting closer to settling a court battle over naming rights. Attorneys for the two pop-culture conventions say they have been able to resolve many of their disagreements and are working on the remaining sticking points. Court documents filed in California show they asked a federal judge to give them more time to work on a possible agreement. San Diego Comic-Con, considered the

flagship of the popular convention circuit, filed a trademark violation lawsuit against the rapidly growing Salt Lake convention in August 2014. San Diego’s organizers say they have legal ownership of the term “comic con” in all its forms, but Salt Lake says it’s a general term used around the country. The U.S. Patent and Trademark office is currently withholding judgment. Copyright 2016 Associated Press.

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cle) to continue.” But three seconds later, as the Google car reentered the center of the lane it struck the side of the bus, causing damage to the left front fender, front wheel and a driver side sensor. No one was injured. Copyright 2016 Reuters.

Cal Fire Files Lawsuit Against Utility for Cost of Powerhouse Fire

state agency is suing the Los Angeles Department of Water and Power to recover the more than $4 million cost in fighting a wildfire sparked by power lines three years ago. The California Department of Forestry and Fire Protection alleges in a lawsuit filed in late February that the Powerhouse Fire near Santa Clarita was ignited by the electric arcing of power lines, which dropped burning fragments of metal into the dry brush below. The fire in May 2013 burned 24 homes and about 50 square miles. The City Attorney’s office had no immediate comment.

A U.S. Forest Service investigation previously concluded the fire was caused by a tripped power line and gusty winds. Some victims have sued the DWP, blaming the utility for failing to properly maintain power lines. Copyright 2016 Associated Press. www.insurancejournal.com

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News & Markets Report: Most California Workers’ Comp Medical Review Decisions Upheld By Don Jergler

n examination of California workers’ compensation independent medical review decisions shows roughly nine-in-10 of disputed medical service requests reviewed by an IMR physician agree with the utilization review determination that the service is not medically necessary. The IMR and UR process was established by the state’s sweeping workers’ comp reform law, Senate Bill 863, which was passed in 2012. A report out in February from the California Workers’ Compensation Institute with updated figures may indicate the IMR process seems to be working as advertised, said Alex Swedlow, president of CWCI. “It’s basically the same physicians driving “It seems very steady, very stable,” most of the volume,” Swedlow said. Swedlow said. “It tells us that there is a Since January 2014, there has been a steady consistent character in the decisions that stream of IMR applications, and the volume are being made by the independent medical increased by 19 percent from 2014 to 2015, review.” according to the CWCI. The report, which looks at 2015, also The study’s author compiled data from shows the volume of IMR requests has not all 163,826 IMR final determination letters tapered off, with close to 300,000 service issued in 2015 by physician reviewers who requests undergoing IMR last year. conducted IMRs in response to denials or Half of those requests were for prescripmodifications of medical services requested tion drugs, according to the report. for injured workers. The high volume is being driven by a “rel That data was used to examine changes atively small circle of physicians,” Swedlow like: the volume, timeliness and geographic said. distribution of IMRs; to Roughly 85 determine the number, percent of those ‘It seems very steady, very physicians were stable. It tells us that there mix and uphold rates for identified in a is a consistent character in medical services that were reviewed; to note the disstudy released the decisions that are being tribution and outcomes of last year that pharmaceutical IMRs by focused on 2014, made by the independent drug type; the percentage according to him. medical review.’ of 2015 IMRs associated That report’s with the top 10 percent of medical providers findings showed that out of the nearly 5,200 with the highest volume of disputed medical physicians associated with IMR disputes service requests. in the first three months of the year, the 10 Requests for prescription drugs were by percent with the highest volume of disputed far the most common type of service sent requests were named in 70 percent of the through IMR, even though nearly 90 percent IMR decision letters, while the top 1 percent of the drug requests were still deemed medaccounted for 28 percent of the disputed ically unnecessary by the IMR physician, requests that went through IMR. W10 | INSURANCE JOURNAL-WEST March 7, 2016

according to the report. Requests for opioid painkillers remained the number one type of drug submitted for IMR, accounting for 27 percent of the IMR decisions rendered last year, although UR decisions to modify or deny opioid requests were upheld 88 percent of the time, according to the report. Adding in other drug disputes, drugs accounted for nearly of 50 percent of all IMR letters, according to Swedlow. However, there is a new law on the horizon that could help reduce some of the IMR volume being driven by medical disputes involving drugs. Gov. Jerry Brown last year signed Assembly Bill 1124, which requires the Department of Workers’ Compensation administrative director to establish a drug formulary on or before July 1, 2017, as part of the medical treatment utilization schedule for medications prescribed in the workers’ comp system. Among intentions of the new law is to establish evidence-based guidelines for access to appropriate medications pursuant to pain management prescription drug therapies. “It’s the wish and the hope of the legislative intent in AB 1124 that our state-mandated formulary will help eliminate a large layer of these conflicts,” Swedlow said. www.insurancejournal.com

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FIGURES

$50 Million The amount a class-action lawsuit is seeking against the Florida Department of Highway Safety and Motor Vehicles for what plaintiffs call an unfair process for DUI suspects. The federal suit says Florida’s practice of automatically taking away the license of drunken-driving suspects denies those accused of a DUI the right to due process. The Florida DMV said the agency doesn’t comment on pending litigation.

DECLARATIONS

45 The number of fatalities on Rhode Island’s roadways in 2015, which represents a steady decline from previous years. Sixty-seven people died in Rhode Island auto crashes in 2010. Each subsequent year had more than 60 deaths until 2014, when the number of deaths dropped to 51. Officials say one reason for the decline is increased seat belt usage, which last year reached an all-time high of 87 percent.

Crop Protection

“A key to encouraging growers to plant these crops is to ensure that they can manage their risk with appropriate crop protection programs.”

— U.S. Sen. Kirsten Gillibrand (D–N.Y.) in her Feb. 16 letter to the U.S. Department of Agriculture (USDA) urging the agency to expand crop insurance for barley in all counties in New York where production is possible.

Going with the Flow

“Just don’t tell the Highway Patrol.”

— Kansas state Rep. John Bradford, a Republican, who supports raising the highest speed limit on separated, multiple-lane highways in the state from 75 to 80 miles per hour. Bradford says many travelers in the region drive faster in open country.

Rule of Law

5.1 $72 Million The amount a St. Louis jury has ordered Johnson & Johnson to pay the family of a woman who blamed her fatal ovarian cancer on the company’s talcum powder. The amount includes $10 million in compensatory damages and $62 million in a punishment award. J&J is facing about 1,200 suits claiming studies have linked its Johnson’s Baby Powder and its Shower-to-Shower product to ovarian cancer.

The magnitude of an earthquake that shook northwest Oklahoma on Feb. 13. It was felt in seven other states and was the third strongest temblor ever recorded in Oklahoma. The earthquake was centered about 17 miles north of Fairview, and reportedly was felt across Arkansas, Iowa, Kansas, Missouri, Nebraska, New Mexico and Texas. At least 10 other, smaller earthquakes were recorded in the same area on the same day.

“I have to respect the rule of law. … I have to believe in our judicial system. I have to believe in democracy. I don’t think it’s a waste of time. Maybe we’ll see justice through the civil proceedings.”

— Karen Ireland, a city council member in Charleston, W. Va., comments on the conviction and one-month sentence for former Freedom Industries’ President Gary Southern. Freedom Industries was behind a 2014 chemical spill that contaminated the drinking water of 300,000 West Virginia residents. The maximum sentence Southern could have received was three years.

Resilience Within Reach

“Tornado-resilient designs of houses, or of any structure, is a thing within our grasp. … It’s something we can do, and we ought to do it.”

— University of Florida engineering professor David Prevatt, who surveyed damage in North Texas following a round of tornadoes — including one that was rated EF3 — that hit the area on Dec. 26, 2015. Many experts, including Prevatt, are encouraging communities to consider designing buildings to withstand twisters just as coastal communities build to survive hurricanes.

Workers’ Comp Matters

$13,815 The amount Anthony John Diaz, 35, allegedly stole in automobile policy premiums and unauthorized brokers fees by diverting premium payments from policies he sold. He was arraigned in a California court. www.insurancejournal.com

“I think once the court understands the impact that this has on workers, I’m hopeful they’ll reverse that decision they made.”

— Gail Evans, legal director of the New Mexico Center on Law and Poverty, said the group plans to file a motion requesting The New Mexico Supreme Court reconsider a stay in a case involving qualifying farm and ranch laborers across the state for workers’ comp benefits.

March 7, 2016 INSURANCE JOURNAL-NATIONAL | 11

NATIONAL COVERAGE

Business Moves will continue to provide risk management and insurance services for the transportation industry under the leadership of President Jeff Maconaghy. The agency reports approximately $4.5 million in revenues. Based in Lake Mary, Fla., AssuredPartners has grown to $550 million in annualized revenue, with over 125 offices in 30 states and a London office.

The Hilb Group, PriMed Consulting The Hilb Group, a middle market insurance agency based in Richmond, Va., has acquired PriMed Consulting, an independent agency in Ocean Township, N.J. Terms of the transaction were not disclosed. Founded in 1998, PriMed Consulting specializes in providing medical malpractice insurance services for physicians in New York and New Jersey. PriMed President Gabrielle Lamb will continue to lead the agency’s 13 employees under its current name and will serve as a medical malpractice resource to other Hilb offices. Established in 2009, The Hilb Group currently has more than 400 employees and 40 offices. The Hilb Group is a portfolio company of Boston-based private equity firm, ABRY Partners. AssuredPartners, Encompass Risk Solutions AssuredPartners Inc. has acquired Encompass Risk Solutions Inc., an independent agency based in Warminster, Penn., with two additional offices in York, Penn., and Marietta, Ga. Terms of the transaction were not disclosed. Founded in 2011, Encompass Risk Solutions offers specialized trucking insurance programs. The Encompass team of 15 12 | INSURANCE JOURNAL-NATIONAL March 7, 2016

FBinsure, Hardy & Ponte FBinsure, an independent insurance agency with nine locations in Massachusetts, has acquired the Hardy & Ponte Insurance Agency, an independent agency in New Bedford, Mass. Terms of the transaction were not disclosed. FBinsure said Hardy & Ponte’s President Jeffrey A. Hardy will step away from insurance to pursue other endeavors after the transition is complete. Hardy & Ponte’s two other staff members will join FBinsure as full-time employees. Hardy & Ponte’s New Bedford office will be merged into FBinsure’s existing New Bedford location in coming months. FBinsure is an independent agency based in Taunton, Mass., with eight additional offices in the southeastern Massachusetts region and more than 90 employees. The agency is partly owned by Taunton-based Bristol County Savings Bank. Patriot National, Mid Atlantic Insurance Patriot National Inc., a workers’ compensation outsourcing services firm based in Fort Lauderdale, Fla., has acquired Mid Atlantic Insurance Services, a wholesale commercial insurance broker and program administrator in Richmond, Va. Terms of the transaction were not disclosed. Mid Atlantic will become part of Patriot Underwriters, a Patriot National subsidiary and a program administrator for workers’ compensation insurance products. Steve

Love, president of Mid Atlantic, will report to Paul Halter, executive vice president of Field Operations, Patriot National Inc. and CEO of Patriot Underwriters Inc. Patriot National will maintain Mid Atlantic’s Richmond office. Mid Atlantic’s 18 employees will join Patriot Underwriters as part of the transaction. Patriot National is an independent national provider of comprehensive outsourcing services within the workers’ compensation insurance marketplace for insurance companies, employers, local governments and reinsurance captives. Patriot National has approximately 1,200 employees. United Community Financial Corp., James & Sons Insurance United Community Financial Corp., holding company of The Home Savings and Loan Co., has completed its acquisition of James & Sons Insurance in Youngstown, Ohio. This transaction marks the initial step in the formation of The Home Savings Insurance Group. James & Sons Insurance is a local insurance agency established in 1921. James & Sons offers a wide variety of insurance products for business and residential customers, which include, auto, homeowners, life-health, commercial, surety bonds, aviation and much more. USI Insurance Services, Best Insurance USI Insurance Services has acquired Best Insurance, located in Tamarac, Fla. Best Insurance offers a range of personal insurance products to customers in Florida, Georgia, North Carolina and South Carolina. Terms of the transaction were not disclosed. James W. Dunn, USI Southeast regional chief executive officer, said Best Insurance will help strengthen the company’s presence in the Southeast where it continues to invest heavily. USI is headquartered in Valhalla, N.Y., and has over $1.0 billion in revenue, more than 4,400 professionals and operates out of nearly 140 local offices nationwide. www.insurancejournal.com

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www.music-ins.com ÂŠ2016 Selective Ins. Group, Inc. Products provided are underwritten by Mesa Underwriters Specialty Insurance Company (MUSIC). Products available vary by jurisdiction. These descriptions are summaries and not offers to sell insurance; the actual policies show complete coverage, exclusions and limitations details. Policy issuance is subject to underwriting approval.

SPOTLIGHT

10 Things to Know About Luxury Auto High end car construction is becoming increasingly complex, with some now having numerous sensors including stereo visual, infrared and radar cameras, ultrasonic sensors, and grille shutters. A typical super car requires hand molded parts and vehicle assembly. Specialized automobile insurers can connect insureds with high-end brand factory repair facilities and global salvage shops to find hard-to-replace pieces and repair the luxury car with original equipment manufactured parts. — Ray Crisci, Auto/Excess Liability Product manager, Chubb Personal Risk Services

James Bond’s Aston Martin DB5 made its big screen appearance 52 years ago in “Goldfinger.” The car sported concealed Browning machine guns, tactical oil slicks, ejector seats and a 5-speed, 4.0 L engine that hit speeds of 145 mph. In 1997, the car was stolen from an airport hangar in Florida where it was stored. No one has seen the car since despite best efforts to find it. The car was valued and insured at $4.2 million by Chubb. — William Crowley, Claim Auto Liability manager, Chubb

Some luxury insurers offer coverage for pets that are injured or killed in a car accident. The policy will help pay to treat, board or replace domestic pets, even if they were pulled in trailers. — Christie Alderman, New Product manager, Chubb Personal Risk Services The National Insurance Crime Bureau (NICB) reports there were 5,570 luxury vehicles reported stolen in the U.S. from 2010 to 2013. California had the most luxury vehicle thefts with 1,390; Florida had 863; and New Jersey had 570.

Luxury vehicles stolen from Florida are the least likely to be recovered, according to NICB. Experts in the state say the state is surrounded by water and ports, which makes it easier for stolen cars to be stripped for parts and shipped overseas.

The recovery rate of all luxury cars reported stolen between 2009 and 2012 was about 84 percent, with General Motors’ Cadillac CTS having the highest recovery rate of 91 percent, according to NICB. The Mercedes S-Class model had the worst recovery rate at about 59 percent. The value of a new car depreciates as soon as it is driven off the dealer’s lot. Agreed value coverage provided through a luxury car insurer lets the new owner determine what the car is worth when the policy is written. If the car is stolen or totaled, the insurance company writes a check for the agreed amount, saving the policyholder the cost of depreciation or an insurance deductible. — Ray Crisci, Auto/Excess Liability Product manager, Chubb Personal Risk Services In 2014, Bloomberg reported that luxury car makers Mercedes-Benz and Audi acquired licenses to test self-driving vehicles in California. State regulations require each testing vehicle to be backed by at least $5 million of insurance coverage.

14 | INSURANCE JOURNAL-NATIONAL March 7, 2016

NICB reports that 485 Mercedes C-Class cars were stolen between 2009 through 2012, more than any other luxury model in that period.

The most expensive car to sell at auction was a 1962 Ferrari 250 GTO Berlinetta, which sold in August 2014 at the Bonham’s auction in Carmel, Calif. The car sold for $38,115,000. The GTO is perceived by many as a crown jewel, and this particular model had outstanding competition history and had been under the care of one family for 49 years. These factors, combined with the hot Ferrari market, led to the record sale. — Paul Morrissette, US Market Access manager, Chubb Personal Risk Services www.insurancejournal.com

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MyNewMarkets Exterminators Market Detail: VGM Specialty Underwriters (www.VGMSU.com) offers primary limits up to $3 million occurrence/aggregate; blanket additional insured endorsement available; medical payments coverage with a $5,000; lost key coverage with $25,000 limit; property damage extension (care, custody, and control) - policy limits up to a maximum of $200,000 per occurrence/$300,000 aggregate; pesticide/ herbicide applicator coverage; in-transit pollution coverage with $25,000 per occurrence; wood destroying organism inspection coverage with $25,000 per occurrence/$100,000 aggregate (higher limits available). Product Details Available limits: As needed Carrier: Unable to disclose States: Colo., Iowa, Ill., Ks., Mo., Neb., and Okla. Contact: Customer service at 800-203-3223

liability resulting from any negligent actions allegedly committed by a third party acting on the direction of the insured. The term “vicarious liability” is defined as one person being liable for the negligent actions of another even though the first person was not directly responsible for the error or omission. Protection against allegations of bodily injury, personal injury, or property damage arising from a covered event also available. Available limits: Minimum $250,000, maximum $1 million Carrier: Unable to disclose, admitted and non-admitted available States: All states except Calif., and Ky. Contact: Jason Haughey at 800-499-7242 or e-mail: Jason.Haughey@ foxpointprg.com

Exercise/Health Studios/Health Clubs Market Detail: Philadelphia Insurance Cos. (www.phly.com) provides broad form fitness center and gym insurance coverages for health clubs, fitness, Pilates and dance studios and day spas across the United States. Program features special causes of loss on building, contents, loss of income, and extra expense. Additional coverage enhancements including: ordinance or law, off-premises power failure, utility services, EDP, business interruption and extra expense (including contingent), and more. Special events coverage outside the club is included for the entity and professional instructors or consultants. Coverage extended to entity and employed professionals including lifeguards, racket sports instructors, dieticians, and aerobic and fitness instructors. Large excess limits available. Available limits: As needed Carrier: Philadelphia Insurance Cos. States: All states except La. And D.C. Contact: Customer service at 800-873-4552

Private Investigators/Security Services Market Detail: Fox Point Programs Inc. (www.foxpointprg.com) offers professional liability insurance – sometimes referred to as errors and omissions (E&O) – that provides financial protection from damages and expenses (such as legal fees and court costs) arising out of allegations of the negligent acts, errors, or omissions by: background/pre-employment checks; missing persons; polygraph services; security consultants; skip tracing and more. Fox Point offers: professional liability protection for services provided by private investigators, including investigation of facts, review of financial data and other information, surveillance, determination of wrongdoing and other similar activities; coverage for personal injury, including allegations of false arrest, malicious prosecution, wrongful eviction, and invasion of privacy, where insurable by law; low minimum premiums; coverage for punitive or exemplary damages, where insurable by law; coverage for commercial property, where insurable by law; duty to defend policy provision; coverage includes vicarious 16 | INSURANCE JOURNAL-NATIONAL March 7, 2016

Workers’ Compensation Insurance Market Detail: All Risks Ltd. (www.allrisks.com) offers worker’s compensation with in-house underwriting authority with most carriers. Markets for high e-mods and direct bill with payment plan options. Over 240 eligible classes, new ventures welcomed. Quotes are available nationwide except in N.D., Ohio, Wash. and Wyo. Online rating indications available for risks in Ariz., Calif., Ga., Md., N.C., S.C., Texas and Va. with more states coming soon. Available limits: As needed Carrier: Various, admitted States: All states except Ky., N.D., Ohio, and Wash. Contact: Customer service at 800-366-5810

Fine Art Market Detail: Berkley Asset Protection (www.berkleyassetpro. com) understand the “priceless” nature of fine art and collections, including its historical relevance and importance. Coverage is available for all risks of physical loss or damage to every type of artwork and collectible. Areas of expertise include: museums; exhibitions; historical societies; universities, schools, and colleges; dealers – fine art, antiques, or other historic property; corporate collections; private collections including: art, jewelry, furs, stamps, wine, coins, cameras, musical instruments, antiques, collectible firearms, silverware, or other collections of rare or historic nature. Available limits: As needed Carrier: Berkley States: All states Contact: Melissa at 330-697-4151; mbecker@berkleyassetpro.com www.insurancejournal.com

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CLOSER LOOK

High Risk Property What to Know About Insuring Vacant Property

By Kate Holland

acant buildings, partial vacant buildings and vacant land can be difficult to place since many standard markets do not have a comfort level with the exposure. Even though most brokers don’t specialize in this class, they do see the exposure when, for example, one of their insured’s home becomes vacant, a commercial risk is completing renovation work before opening their business or a business has closed. Continuing to insure these risks means holding onto the revenue generated by these accounts and onto the relationship with the insured. Depending on market conditions, a carrier which insures the vacant risk as part of a large schedule may be persuaded to stay on the risk. If not, the insuring agent must turn to a carrier which provides this specialty coverage. The opportunity is large for this segment. According to the latest U.S. Census statis18 | INSURANCE JOURNAL-NATIONAL March 7, 2016

tics, there are 13 million year-round vacant homes in the United States. This figure is in addition to vacant commercial properties. Failure to address a change from occupied to vacant could result in a claim denial and leave the agent at risk for an errors and omissions (E&O) claim. Vacant Coverage The Building and Personal Property coverage form (CP 00 10) removes coverage for vandalism, sprinkler leakage (unless protected against freezing), glass breakage for the building, theft or attempted theft if the building has been considered vacant for more than 60 consecutive days before the loss or damage. Vacant carriers give back that coverage using the Vacancy Permit (CP 04 50) apart from causes of loss marked with an X as excepted causes of loss. Many insureds propose insuring their vacant property for their purchase price or its market value. Part of the agent’s respon-

sibility is educating the property owner that the insurance company will likely value a building based on functional building valuation, actual cash value or replacement cost coverage. Failure to insure the risk properly can result in large coinsurance penalties in the event of a loss. Valuation programs run based on the former occupancy can aid in insuring the property to value. This is crucial because agreed value is often difficult to secure for this class. Many agents are often focused on obtaining coverage for the structure. However, the insured may still want contents coverage. Common examples of this are furniture left in a house when the former occupant moves to a nursing home and the residence is for sale or equipment from a business which has recently closed. If switching from a personal lines form to a commercial form, it is important to note that there isn’t automatic coverage for personal property or other structures at a percentage of the building value. Business income coverage is a consideration which is often forgotten, as well. The exposure can still exist even if a location is vacant. If there is a signed lease in place and a fire causes a location to no longer be available for a tenant to occupy, the property owner incurs a loss to their income. What to Know It is important to partner with a carrier who has a quick quote turnaround. This is necessary when a property investor needs to show proof of insurance for a settlement. Mortgagees also will likely need to be named as an additional insured. Supplying the carrier with appraisals, current photos and the real estate listing for the property provides valuable underwriting information to help get that quick quote when there is no time to pre-inspect a risk. Carriers offer quoting for vacants online or over the phone which can be especially helpful for a risk with a short fuse. Communicating directly with the underwriter will help to walk the agent through www.insurancejournal.com

Top 10 Loss Control Tips for a Vacant Risk

1 Lock and secure the location from unauthorized entry. 2 Repair any cracks and uneven surfaces on sidewalks. 3 Maintain heat in the building or drain pipes to help prevent water damage losses. 4 Do frequent walkthroughs of the building and alert local law enforcement to the vacancy. 5 Remove debris and hazardous materials. 6 Suspend mail and delivery services and remove any accumulation of newspapers and handbills. 7 Make sure the roof, gutters and downspouts are in good condition. 8 Secure any objects which could fall from the building causing injury or property damage. 9 Plan for weather-related events such as a hurricane or snow storm. 10 Use exterior lighting including motion detection and timed lighting.

vations is important because the insured can be held responsible for liability losses excess of the contractor’s policy or may be completing the renovation work themselves. The carrier needs to be aware of any renovations occurring during the policy term so that the appropriate charge for the renovation coverage can be made and any construction-related exclusions removed. An understanding of the project is critical. Some carriers will only provide coverage for certain types of projects such as those which do not involve changes to load bearing building components. Property investor groups are becoming more popular and provide an excellent opportunity to network with individuals who need coverage for vacants and provide insight into the concerns of these insureds. Speaking at these meetings is a way of establishing expertise in this class of business and gaining new business leads. Due to economic conditions, homeowners are still losing their homes through a foreclosure or short-sale and, even if they are no longer living at the property, may be required to insure the property until they are no longer the official owner. Investors may also be purchasing these properties.

Other Exposures Some other exposures to consider are spaces which are vacant and undergoing renovations by a tenant. The business is not operating yet; however the landlord requires a certificate of insurance and to be named as additional insured. These risks may need a policy which responds to losses related to the renovations and provide property coverage for the tenant’s improvements and betterments. Restaurants are a class of business that often has this exposure. Buildouts can be long and expensive as consumers seek unique dining experiences in that competitive industry. Vacant condominiums, either residential or commercial, are another type of vacant risk. Improvements, contents and business income coverages may all apply to these risks. In addition, associations can still make an assessment against the owner of a vacant condominium just as though it were occupied for property or general liability. Partial vacants are another type of risk with standard markets struggle. A common scenario for this exposure is vacant square footage on the ground floor of a building continued on page 23

Agency Ideas

coverage, if they are unfamiliar with this class. It is also important to know the history of the property. Many carriers have a restriction on how long a property has been vacant (often this is two to three years). In addition, there are even more limited markets for buildings with existing damage or those slated for demolition. Flipping Properties Due to economic conditions, entrepreneurs have started businesses “flipping” homes. Carriers who insure vacant risks can schedule locations and process endorsements as the “flipper” buys and sells properties plus provide coverage to respond to claims related to the renovations. Risks undergoing construction warrant special consideration. Coverage for renowww.insurancejournal.com

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March 7, 2016 INSURANCE JOURNAL-NATIONAL | 19

SPECIAL REPORT

Homeowners

By Andrea Wells

20 | INSURANCE JOURNAL-NATIONAL March 7, 2016

www.insurancejournal.com

he homeowners insurance line, not often thought of as a bastion of change, is actually quietly evolving beyond the traditional “one-size-fits-all” business. Some of the puzzle pieces that make up homeowners insurance are changing shape and new pieces that address new risks are being inserted. The reshaping of the homeowners market is ongoing and not all the new shapes are firmly cast. Even as they continue to review how standard policies deal with risks like trampolines, pools and dog bites, insurers are regularly adding coverages for things like identity theft, appliances and water backup. At the same time, they are anticipating how to handle newer risks such as personal drones and on-demand home rentals. The rethinking of coverages is occurring at a time when the market is performing fairly well and the future looks good. A recent report by Aon Benfield Analytics reveals that insurers’ expected after-tax return-on-equity for U.S. homeowners insurance is 8.6 percent on a countrywide average, and 12.6 percent excluding Florida. The overall outlook is positive thanks to rate increases, a decline in catastrophe losses and lower reinsurance costs. Changing All the Time Robb Lanham, chief sales officer, Personal Insurance at HUB International, says despite what some might think, coverage for homeowners changes all the time and much of that change is due to predictive analytics. Since the onset of predictive analytics insurance companies have become wiser about understanding who’s a good customer, Lanham said. “Insurance companies are in business to make money and they make money by writing a lot of customers who don’t have a lot of claims. So they track all the claims, then say, ‘Wow, I never realized we paid this many dog bite claims,’” he said. “Now that becomes a question on the policy application. Do you own a dog and what breed?” Trampolines are another example of how coverage has changed. www.insurancejournal.com

“They can be really dangerous. All of sudden someone falls and gets hurt. There are provisions in a homeowners policy that would pay their medical bills but a lot of times it ends up in lawsuit. We’ve seen it with pools. They were fine but then they said pools are OK but we don’t like diving boards; or you have to put up a fence. … It’s pools, it’s trampolines, it’s dogs, it’s all those things that can be considered an attractive nuisance,” Lanham said. Carriers tend to underwrite around these hazards. Trampolines, un-fenced pools, diving boards, pool slides, all-terrain vehicles, and aggressive dog breeds are commonly ineligible for coverage, says Richard “Gordy” Bunch, founder, president & CEO of The Woodlands Financial Group (TWFG), which operates a Texas domiciled homeowners insurer. “Our company excludes liability for some of these risks but offers a liability buy back to regain coverages at an adequate rate.” Vacation Rentals Vacation rental by owner (VRBO) properties is one area where the industry is struggling to find a solution, according to Brian Sullivan, editor for Risk Information Inc. The VRBO is clearly a commercial exercise, he says. “If you go and you look at vacation rental by owner, VRBO, it’s very explicit. Once you hand someone the keys, the coverage is through VRBO,” Sullivan says. Airbnb and other home sharing services are not quite the same risk as a VRBO. “If you rent a room out to somebody for the weekend, is that a commercial activity? If you rent your house out for a weekend, is that a commercial activity?” Sullivan asked. “You’re seeing companies work really hard as we speak on trying to figure out the best language for that.” If there is one area of policy form man-

agement headed for change, it’s in the vacation rental and Airbnb space, Sullivan said. Standard Forms Language At the center of reshaping puzzle pieces to reflect new risks is ISO, the Verisk Analytics business that collects property/ casualty insurance data and creates the language for many homeowners policy forms. Jeff De Turris, vice president of Coverage Products and Operations at ISO, says ISO analysts spend a lot of time thinking about new trends and the insurance implications of those trends on insurance coverage. “When we think about new risks and develop new forms and coverages, we work with agents closely to get their reaction to our new plans as well as existing coverages,” De Turris said. “We talk with insurers as well to get their reaction and input on what we’re thinking and to see how they view what we’re coming up with.” ISO says its process must balance the need to get to the market quickly with the need to get input from stakeholders. “When there’s some issue like, say, claims from trampolines, as an example, part of the analysis that goes on between the coverage team and the actuarial team is to try to evaluate how extreme the situation is,” said Rob Curry, vice president of Market Development at ISO. “Is this something we feel should be excluded from the base policy? Or is this something that just needs to be accounted for in the rating?” In the trampoline case, trampoline claims are not excluded from the ISO base policy. But ISO has a higher rating factor for someone who has a trampoline than for someone who does not have a trampoline. “Our preference would be to the extent possible to keep the coverage in the policy continued on page 22 March 7, 2016 INSURANCE JOURNAL-NATIONAL | 21

SPECIAL REPORT

Homeowners

continued from page 21

and charge a risk based price for people who have that particular situation,” he said. Drones Drones is up next on ISO’s docket. “What may evolve with drones is that they could potentially stay in the base policy or do we charge people who have drones because they may have a little bit higher risk? That’s the kind of thought process we’ll be going through on drones.” De Turris says ISO expects drones to be addressed in the homeowners policy this year. While the number is certainly growing, not all that many homeowners currently have drones. But they do have other risks that fall outside the traditional policy. Filling Gaps TWFG’s Bunch says home insurers are aggressively trying to fill these coverage gaps. “Our carrier is working on closing the coverage gaps in current forms by adding endorsements, integrating new lines of coverage, expanding package discounts offered, (and) customizing affinity discounts around consumers’ interests,” Bunch said. “Within two years you will be able to buy our homeowners policy with options to add cyber liability, identity theft, flood, umbrella, mortgage life, special limits for toys (drones, electric scooters, etc.) and equipment breakdown (warranty).” According to Peg Dynakowski, vice president of Trident Insurance Agency Co. LP, who handles insurance company relationships for her agency, carriers have been playing up ID theft coverage for years as a way to add value for insureds. Now insurers are also offering coverages for water and surge back-up as well as mechanical breakdowns. “Water back-up and surge back-up is not something that is normally part of a homeowners policy; it’s an endorsement,” she said. Same is true for mechanical breakdown and even ID theft. “You can add the coverage by endorsement and these are very, very, very important (options).” Dynakowski says mechanical breakdown, 22 | INSURANCE JOURNAL-NATIONAL March 7, 2016

also known as home warranty coverage, is the latest coverage option to “really hit” in the past five years. “Home warranty is basically covering appliances for wear and tear,” she said. “It will usually have a deductible and cap.” The coverage, which can be endorsed onto most homeowners policies, offers coverage limits for HVAC systems, refrigerators, washers and dryers. While limits will not often replace the failed mechanism, the coverage will provide repair costs or partial replacement. “You might be limited to $1,500 for A/C or $1,000 for refrigerator, so it’s not necessarily going to buy you a brand new one but it will give you something,” Dynakowski said. Bunch says mechanical breakdown fills an important coverage gap for insureds but also helps profitability in the homeowners insurance market. “Adding the equipment breakdown fills that gap but the other thing we gain is subrogation attention because now we have an expert that covers manufacturer issues such as product recalls or breakdowns,” which could potentially lead to some cost containment, Bunch said. Smart Homes The homeowners market is also having to come to terms with the Internet of Things technology wave that is expected to play an increasing role in homes. While consumers have been slow to purchase smart home technologies aimed at keeping their homes safer, insurers have been testing these gadgets, including connected water sensors, smoke detectors, door bells and other smart technologies. American Modern Insurance has built an entire smart home in its claims warehouse to test these devices, while several other carriers are using test smart homes to gauge the effects on various losses. TWFG’s Bunch says his carrier’s future equipment breakdown endorsement is designed to address the issues that come with these tech-heavy homes and the costly repairs that come with them. “One technology that has been proven to reduce loss costs is the water value shut

off system, which shuts off the main water supply,” Bunch said. “The water sensors that turn off the water main when triggered show potential to mitigate water loss claims and a few carriers are offering discounts with those devices installed.” Overall, truly smart home technology is moving slowly right now, says Sullivan. “There isn’t a smart home set up right now that is really worthy of the name, unless you want to spend thousands and thousands of dollars,” Sullivan said. “We’re waiting for Apple’s Home Kit and Google’s Brillo software — those are going to be software standards that the manufacturers of sensors and things like that will connect to so that your phone can run your house.” Sullivan said until there are standards, the idea of a truly connected home will remain just a dream. But some home insurers seem to be experimenting anyway, he said. “Every major insurer has somebody who’s got a bunch of this stuff in their house and they’re messing with it. Everyone is trying to figure it out.” Sullivan says the big question to be addressed is whether insureds will be comfortable exposing their home data to their insurers. “A classic example: Everyone gets a home alarm discount. You put in your home alarm, you get a discount. Regardless of whether you turn it on or not. Now, we’re going to have technology where the insurer will know if the house is empty but the alarm is not on. Should you give that customer a discount if they don’t arm the alarm? The answer is probably no,” he said. Sullivan believes the obstacles will be overcome. “I have to believe that the public will eventually — not happily, but eventually — be willing to trade whether or not the garage door was left open all day with their insurance company. Insurers will start to rate your behaviors at home the same way they’ll rate your behaviors in your car. But that’s not tomorrow.” It’s easily a year or two away, Sullivan said. “But once it comes, it will be profound.” www.insurancejournal.com

CLOSER LOOK

High Risk Property continued from page 19 a risk which has just finished a build out to an occupied restaurant. This frees up the agent’s time by minimizing remarketing of risks. If the policy does need to be cancelled, it is important to pay attention to the minimum earned premium when writing the risk. The premium for some carriers who write vacants is fully earned. Look for a carrier without a minimum earned premium or obtain a short-term policy with prorata cancellation to help mitigate this extra cost. Vacants may not be an everyday exposure an agent sees but they represent an opportunity to continue to provide an insurance solution for your clients.

due to the closure of a business but there are still occupied apartments on the second floor. This exposure also occurs when, for example, an anchor store closes in a shopping center but surrounding smaller stores remain open for business. CP 0010 states that a building is vacant when 70 percent or more of its square footage is not either rented or used to conduct customary operations so this change from occupied does need to be addressed. Vacant Land Vacant land is another exposure with the mortgagee also needing to be named as additional insured. In some areas, the property owner of a vacant lot is responsible for the sidewalk in front of the lot and as a result is at risk for slip and fall losses. This can be a large exposure especially in areas with icy conditions where injuries can be severe and attorneys readily available to take on new clients. It is important to verify that the land is actually vacant. In urban areas such as New York City, vacant lots are often used for parking so the carrier will likely want to rate the piece of land as a parking lot instead of a vacant lot. In more remote areas, parcels of land with a small maintenance shed or lakes present an additional exposure. Having one carrier, with a broad appetite,

who is able to handle a change in exposure, is a bonus. For example, a carrier who not only writesA&Mvacants but also restaurants helps BIG.pdf 1 1/5/16 12:36 including liquor coverage can often endorse

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Holland is the product leader for USLI’s Vacant Building, Vacant Land and Partial Vacant products. She also works with customers in the Mid-Atlantic region. Email: kholland@usli.com. PM Phone: 888-523-5545.

2/23/16 11:47 AM

March 7, 2016 INSURANCE JOURNAL-NATIONAL | 23

CLOSER LOOK

Oil & Gas California’s Porter Ranch Blowout Highlights Evacuation Risk Editor’s note: This is part two of a three-part series on the oil and gas industry. The first article covered the important changes that occurred in 2015 and the significance of the Porter Ranch, Calif., blowout that began in October 2015. Part three of this series will address the emerging risks arising from new technologies, new labor/employee risks, and simultaneous operations.

ollowing up on part one of this series, many believe the Porter Ranch natural gas blowout is the largest gas blowout in U.S. history. If this is validated, California By Pascal M Ray will hold the records for both the largest gas and oil well blowouts in U.S. history. America’s largest oil blowout occurred in 1910 in Kerns County, Calif., and was much larger in terms of volume of oil released than the 2010 Gulf of Mexico blowout. Changes in regulations and inspections regarding oil and gas wells are expected as a result of the Porter Ranch blowout. The well that blew out is part of a large natural gas storage facility with more than 100 other wells on location, 48 of which were drilled before 1953. A California state sen-

ator has issued three bills regarding Porter Ranch, one of which calls for older wells to be inspected and well integrity validated by a third party before any new gas is injected into these 60-plus year-old wells. There have been other cases involving catastrophic losses in natural gas storage facilities in the U.S. The worst of these involved explosions, fire, evacuation, loss of life and significant property losses. Mont Belvieu, Texas, is the location of the largest underground natural gas storage facility in the world. A series of three casing failure events between 1980-1985 ultimately required the local gas company to evacuate residents and rebuild the town two miles away. Other notable gas storage losses due to casing failure are Hutchinson, Kan., in 2001 and Napoleonville, La., in 2003. The Porter Ranch blowout has put a spotlight on evacuation risk and how a large evacuation event has the ability to significantly erode insurance limits. With more than 10,000 people evacuated, the Porter Ranch event is one of the largest, if not the

largest, evacuation due to a well blowout in the history of U.S. oil and gas. There are other notable blowouts involving mass evacuations. In 2003, more than 60,000 people were forced to evacuate their town due to a well blowout that involved H2S gas. H2S is immediately lethal when inhaled in large concentrations and can be very harmful in lower concentrations. About 9,000 people had to be hospitalized and 243 died. This happened in central China near the city of Chongqing. In 2006, a natural gas well being drilled reportedly had a well control event, resulting in a blowout consisting of mud and natural gas and became what is now called a mud volcano — nicknamed “Lusi.” Approximately 30,000 people were evacuated and permanently displaced, 12 villages were destroyed, and there were 20 deaths. Legal authorities concluded this was caused by an underground blowout during

24 | INSURANCE JOURNAL-NATIONAL March 7, 2016

Located here: http://www.gwpc.org/sites/default/files/Shale%20Gas%20Primer%202009.pdf

www.insurancejournal.com

Current Overview of the Porter Ranch Blowout

the drilling process. The well apparently was not cased according to Indonesian law. Appropriate well design and proper casing usage could have prevented this catastrophe. This blowout occurred in East Java, Indonesia, and continues today, 10 years later, highlighting the time duration that can exist in rare cases with a well control event. It is thought this blowout will stop on its own at some point in the near future, but no one knows for sure. Total economic losses are said to be around $4 billion. Evacuation Risk Maximum possible loss calculations for the evacuation risk element is extremely difficult because of the numerous variables involved. The unknown time element of the duration of the blowout, wind direction, and plume dispersion can become determining factors. An extreme example of what can possibly happen with evacuation risk occurred in Edmonton, Alberta, in 1982. The city was under threat of a deadly H2S gas plume coming from a blowout near Lodgepole, Alberta, more than 100 miles away. At this time, the population of Edmonton was approximately 550,000. There were media discussions regarding evacuating the entire city but www.insurancejournal.com

this never materialized. Airports are another example of locations where evacuation risks need to be a central part in the risk management strategy. Dallas/Fort Worth International Airport has more than 100 gas wells and supporting infrastructures; Denver International Airport has 72 wells on location; Oklahoma’s airports have 87 active wells; and Charleston, W.Va., and Pittsburg, Pa., airports also have wells on their locations. Los Angeles county is perhaps the highest at risk in the United States due to its proximity of more than 5,000 active wells and thousands more abandoned wells. Many of these wells are more than 100 years old. About one-third of the population of Los Angeles county live within one mile of an oil or gas well, approximately the same proximity as the Porter Ranch residents were to the well that blew out next to their community. The Porter Ranch blowout is a case study of emerging claims trends for the oil and gas industry, which should examine: • Well integrity risks are having implications for first party property, third party liabilities, blowout and environmental losses. • There are increasing evacuation risks as oil and gas operations move into populated areas along with increasing defense and settlement costs. • The use of punitive damages is increasing, which may not be insurable depending on the state. • Fines and penalties are also increasing. • All of the above is creating the need for higher insurance limits. Criminal charges and significant risk to a company’s reputation are also factors. As the Porter Ranch blowout event concludes over the next few years, the extent of the cost of this unfortunate event will be revealed. Some believe the total costs could be more than $1 billion. Ray manages USI’s Marine & Energy Program division. He has managed marine and energy programs for the U.S., Lloyds of London, and Bermud-based insurance markets. Email: Pascal.Ray@usi.biz.

Age of well: 62 years old and operational in 1954. Duration of Blowout: Oct. 21, 2015, to Feb. 11, 2016. Cause of loss: Well integrity (Reportedly a failed well casing at approximately 500 feet.) Blowout solution: Relief well intervention and plugging of the well. Scope of Evacuation: 6,400 families evacuated with two schools closed and relocated. Type of Claim Event: Air pollution from a natural gas well blowout. Complaints: Focused on health and environmental issues, but business interruption, declining property values and other concerns exist. Consequences: • State of Emergency declared by the California governor. • Federal Aviation Administration (FAA) declares the Porter Ranch area a “no fly zone.” • Numerous class action lawsuits from individuals and businesses, which will involve thousands of plaintiffs from the 30,000 area population involved. • Punitive damage requests figure prominently in these lawsuits. Punitive damages are generally not insurable by law in California and may possibly be a significant self-insured exposure if granted. • One wrongful death lawsuit. • The Los Angeles county district attorney’s office has filed criminal charges. • Numerous suits from various state agencies. • Numerous state and federal investigations. • Significant fines and penalties are possible. • Losses to date are approximately $250 million to $300 million and will likely rise. • Combined insurance limits on policies are reported at more than $1 billion dollars. March 7, 2016 INSURANCE JOURNAL-NATIONAL | 25

SPECIAL REPORT

Auto Auto Insurer 2015 Underwriting Performance Loses Traction

rivate passenger automobile insurance remains one of the most competitive segments in the U.S. property/casualty industry, with a number of large, well capitalized organizations battling for market share and searching for competitive advantages and better profits through pricing and risk selection, advertising, and claims management efficiency. Auto insurers conBy James B. Auden tinue to generate relatively robust premium growth and benefits from price increases, but top line growth has not translated into better underwriting performance in 2015. The personal auto insurance combined ratio rose by 1.4 percentage points in 2015 to 97.3 percent for a group of 10 publicly traded insurers. Underwriting performance deteriorated despite over 5 percent annual growth in segment written premiums for

Monthly Change in Motor Vehicle Insurance Costs

2014

2015

2016

Source: Bureau of Labor Statistics: Consumer Price Index Statistics Insurance information Institute

the group, as well as a modest decline in the expense ratio and reduced natural catastrophe related losses compared with the previous year. The property/casualty industry in aggregate has generated consistent moderate

statutory underwriting losses in personal auto for the last six consecutive years, including a projected combined ratio above 102 percent in 2015. Several large non-public insurers that tend to have less ambitious return objectives drive up the industry

2015 Personal Automobile Insurance Underwriting Results Company

GEICO Allstate Progressive Travelers Hartford Infinity Kemper Hanover Chubb Cincinnati Financial Horace Mann Group Total

Personal Personal Auto Auto Net Written Annual Combined Premiums %Change Ratio % 2015 23,378 20,662 17,703 3,534 2,721 1,373 1,031 900 701 524 398

11.5 5.1 5.6 8.4 2.3 - 30.6 1.8 (5.3) 7.2 4.7

49,547

5.5%

Change in Combined Ratio

2015

2014

98.0 99.9 93.5 94.7 99.4 95.6 104.5 99.3 98.5 110.0 102.4

94.3 96.9 93.3 97.2 98.4 96.0 99.0 100.6 96.8 105.1 99.0

3.7 3.0 0.2 (2.5) 1.0 (0.4) 5.5 (1.3) 1.7 4.9 3.4

97.3

95.9

1.4

Source: Company GAAP Filings Note: Infinity Result Includes Commercial Auto Hanover and Cincinnati Expense Ratio for all Personal Lines

26 | INSURANCE JOURNAL-NATIONAL March 7, 2016

www.insurancejournal.com

results compared to the group of public insurers. Market leader State Farm reported a statutory underwriting margin of -12 percent in personal auto for 2015. Recently, a number of insurers have pointed to claims frequency trends shifting unfavorably as a contributor towards higher loss ratios. The Allstate Corp. reported a 5.9 percent increase in bodily injury frequency and 6.3 percent increase in property damage frequency in full year 2015. Hartford Financial Services Group Inc. reported that frequency in auto business rose to 3.5-4 percent in the second half of 2015. In Hartford’s recent earnings conference call, the company suggested that this frequency change may represent a new norm that will need to be incorporated into future rate filings. Development of additional safety features in cars, such as anti-lock brakes, back up cameras and parking assist have promoted accident reductions, making this shift in frequency a bit unusual. While determining specific causes behind changes in claims trends is difficult, an increase in miles driven as gasoline prices sharply declined and the employed labor force expanded is a likely contributing factor. Greater prevalence

of distracted driving with Americans ever time by periodic increases in claims severigrowing dependence on handheld electronty. Rising auto claims severity is attributable ic devices may be another contributor to to medical cost inflation, and higher repair higher claims frequency. bills. New and used automobile prices Profit improvement in private passenger continue to increase. The cost of maintainautomobile has been hindered for some NAPSLO_IJ_halfv_print1.qxp_Layout 1 3/4/15 1:33 PM Page 1 continued on page 45

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March 7, 2016 INSURANCE JOURNAL-NATIONAL | 27

IDEA EXCHANGE

The Competitive Advantage Finding Producers in Small Towns

ow did agencies in small towns ever get started? Someone wanted to work on their own, in sales, and blaze their own future. People don’t usually get into insurance on purpose, and especially not into the insurance agency business. This is the career by accident/fortune/ karma industry. Many small town agencies were founded by peoBy Chris Burand ple who easily might have chosen another industry. They weren’t searching to found an insurance agency specifically. People who want to be in charge of their own future in small towns still exist. These people are likely no more or no less qualified than people who founded small town agencies 20, 40 or 50 years ago. Certain aggregators, franchisors and others are finding these folks and helping them start new agencies. Literally thousands of small town agencies have been founded in the past five to 10 years. The fact is that potential producers do exist. So why are small town agencies not finding them and if they do find them, why are they failing to convince these people to work for them rather than founding a competitor? The failure to hire these people is a double whammy because not only do they lose future production but their competition increases. The failure to find these producers before they become competitors is closely correlated to this being an accidental/fortune/ karma based industry. So many agency owners depend on a producer just falling into their laps rather than proactively and methodically finding these people first. The first factor that must change is the small town agency owner’s mind set. Good things do not always happen to good people. The mindset needs to be, if the owner wants a more assured future, build a methodical plan for hiring a producer who has no insurance experience.

Many agency owners do not know how to build this plan or in many cases, how to get their heads around the entire concept. The concept is easy to put on paper but not so easy to grasp the first time a person actually attempts execution. The first time everything seems so theoretical, even ethereal. Building a Plan Step one is to identify — extremely specifically — three great reasons a person with no prior insurance experience, but wants to be in charge of their own destiny, should consider insurance. The reasons listed must be absolutely concrete. No cloud in the sky reasons are allowed like, “This is a great industry!” Better is, “You can make six figures and eventually build a level of independence rarely available in today’s corporate world.” Step two is to identify — extremely specifically — three great reasons a person with no prior insurance experience (or maybe with some experience), but who wants to be in charge of their own destiny, should consider your specific agency. Reasons listed must be even more tangible. “Our agency is a great place to work!” “We have a great reputation!” and other dribble will not suffice. Name exactly why your agency is a great place to build a six figure career. Details and tangible

reasons inspire confidence and trust. Step three is to understand how important it is to attract people to the agency rather than you trying to find them. The most valuable marketing/advertising a small town agency might spend is money designed to attract quality people rather than clients. Build your networks to attract people as much as potential clients. Attracting high quality people is often a significant psychological barrier. Hiring quality people for the first time almost always invokes fear. It is fear of the unknown. It is fear of potentially being challenged. It is fear of not being good enough. Sometimes the fear is justified and sometimes it is not. Fear may be justified if, obviously, the agency is not a good place to work and build a six figure income. The calculation then becomes whether the financial and emotional cost of improving the agency is worth the rewards of simply having a better agency and even better, having an agency that is attractive to high quality people. If one’s retirement horizon is five years or less, the investment may not make sense. If a longer horizon exists, the financial investment is almost certainly worthwhile. Whether the emotional investment is worthwhile can only be determined by the person seeking to hire. Quite often the fear owners feel is related to the

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unknown and the fear So many agency owners always unique situations, of being challenged by look successful for depend on a producer they a high quality person. a while mostly based just falling into their laps on the owners’ personal If you feel these fears, quality coaching can rather than proactively skills, but they fail to work miracles if you’ll and methodically finding build a true business. ask for the coaching. The most confident these people first. Overcoming these and most emotionally fears and feelings is well-developed frequentrarely a DYI project. Asking for coaching ly seek great coaching. assistance is not indicative of a weakness Quite similarly, if the fears are not well either. Asking for assistance is in fact a founded, the best solution is to ask for sign of strength, a sign of immense internal assistance to learn if your concerns are or strength. are not justified. It is so hard to see one’s One of the key reasons so many agenown agency from the outside including cies stay small is the agency owner fails to the qualities that will make it attractive. find the strength to request assistance. I Usually only an outsider can provide the meet owners of small, medium and large necessary clarity. agencies all the time and those that insist Step four is to prepare yourself to sell the on a DIY process, or a de facto DIY process career but do not oversell. By this I mean, when they hire advisors/coaches that are do not forget you are doing the hiring and it sycophants, rarely ever achieve complete is most important for the candidate to talk success. At best, with extremely few and than you. Agency owners can get so excited

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they spend all the interview time selling the candidate instead of having candidates sell themselves. Step five, because agency owners in general tend to like every candidate at first, use high quality testing and go with the results rather than your guts. Ask a key staff person to participate in the interviews. Finding high quality producers in small towns is not any more or any less easy than it has ever been. The key is building the methodical plan for attracting enough candidates, not just one but many, and then use the testing and interviewing process to select the best. We know for a fact thousands of people want to work in the industry as producers and they’re finding other options. It is key you get to them first! Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719485-3868. E-mail: chris@burand-associates.com.

2/25/16 1:47 PM

March 7, 2016 INSURANCE JOURNAL-NATIONAL | 29

IDEA EXCHANGE

Growing Your Property Casualty Agency What People Collect Says Something About Them

verybody collects something. Some of these “somethings” are valuable; some are extremely valuable, while others are practically worthless. Regardless, whatever you collect says something about you and your interests; it’s a mini-window into your thirst for life. Why Collect? People who collect By Alan Shulman various objects do it primarily for the purposes of enjoyment or investment. These two motivations aren’t mutually exclusive; they are often intertwined. For instance, collectors of sports and entertainment-related memorabilia, comic books and more, enthusiastically accumulate these items while recognizing their potential investment value. Ditto with antiques, classic cars, fine art, wine, etc. There are “for fun” collections as well, such as salt and peppershakers and souvenir mugs. These seldom have serious value, although there are likely exceptions. Why Ask? The collections of your policyholders and prospects represent doors you can enter, allowing you to peer beyond the homeowner’s basic house and contents. You’ll uncover what interests them while helping to insure what the family elects to amass. Your reward is professional satisfaction, increased client loyalty, and additional commissions. Failing to ask about collections can leave a client un-or-underinsured. Plus, adequately dealing with this potential exposure closes the door on rival agents who could use your insureds’ personal interests against you. Additionally, some collectables are eternally in demand, while others go in and out of fashion. Think coins and stamps versus fad items. Nevertheless, most peo30 | INSURANCE JOURNAL-NATIONAL March 7, 2016

ple value what they gather and would be devastated if their collections were lost. Routinely inquiring about collectables, as part of the personal insurance review process, helps clients to properly insure objects of substantial worth. It also helps people to understand what they’ll be paid in the event of a claim, including those with collections of minimal value.

the club’s “insurance expert.” Tout your interest and expertise within the group’s communications. Regularly interact with them on social media. Post non-promotional advice for collectors on how best to insure their property. Look to specialty carriers and MGAs for guidance. Simultaneously, run ads on the group’s website or blog and in their print or PDF publications. Direct interested members to Why Appraise? a web-landing page on your site — to learn The acts of inquiring about and propmore — and to contact you. This dedicated erly insuring collections page might feature short shouldn’t be reserved Failing to ask about videos of members displaysolely for high-value their collections, and collections can leave ing homeowners. Everyday extolling the virtues of insura client un-or-under- ing with you. Market your folks need to explore the insured. insurability of what they skills to multiple groups to collect as well. Besides, generate continuous activity. they may possess treasures of which they People love their collections, so when you weren’t even aware (think antique valuation help to protect them, they may well show TV shows). When warranted, suggest that their appreciation with loyalty, referrals local appraisers examine your insureds’ and multiple policy purchases. collections to schedule and value them. In preparation for such assisShulman, CPCU, is the publisher of Agency Ideas® tance, stockpile the names sales and marketing newsletter (free basic subscripand contact information tion at www.agencyideas.com/join). He is also the of area appraisers for the author of “500 Sales Ideas for Commercial Lines most common collectables. Producers” among many other P&C sales resources. You might even bring some Email: alan@agencyideas.com. Website: www. of these experts in for periodic agencyideas.com. in-office “appraisal events.” Invite agency insureds, ex-clients, and selected prospects. Collect Leads Virtually everything that someone collects is collected by others who share the same passion — and these like-minded souls often huddle up to bask in their shared enjoyment. Ask your insureds whether they belong to such a group and if they do, inquire about it. Learn if enough members reside within your marketing territory, and if so endeavor to become www.insurancejournal.com

2016

2016 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 2016 Hospitality Risks Directory to be a useful tool when searching for quality markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.

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Banquet Halls Cochrane & Company CPRO Associates Crusader Insurance Company Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC Izzo Insurance Services, Inc. James River Insurance Company Jimcor Agencies Joseph Krar & Associates LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland and Hine, Inc. Monitor Liability Managers N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quirk & Company RCA Insurance Group RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Roush Insurance Services, Inc. SCU - All Offices SCU - Middletown Specialty Insurance SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company Unifax Insurance Systems, Inc. USG Insurance Services, Inc. USX/S W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program

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March 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N31

2016 Hospitality Risks Directory Bars/Night Clubs

Bars/Night Clubs

Bars / Night Clubs coverage category sponsored by: Midlands - check out our ad on page 4 (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 Advanced E&S Group - Southeast (Taverns - no clubs) Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency B&H Risk Services Bass Underwriters Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. Continental Risk Insurance Services CPRO Associates Crusader Insurance Company Entertainment Risk Evolution Insurance Brokers Founders Insurance Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Horizon E & S Insurance Brokerage Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies (and Taverns) Joseph Krar & Associates LevelFirst Lionheart Insurance Services, Inc.

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

N32 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

Market M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. MexiPass International Insurance Services, LLC Midlands Morstan General Agency of Florida II, Inc.

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

N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Northern Underwriting Managers Number One Insurance 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 (and Taverns) Promont Specialty (no nightclubs) Quaker Special Risk Quirk & Company RCA Insurance Group (and Taverns) Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMS Hospitality Group Roush Insurance Services, Inc. SCU - All Offices SCU - Middletown Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP Specialty Insurance (and Taverns) Tejas American General Agency Topa Insurance Company U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. USASIA Insurance Services USG Insurance Services, Inc. USX/S W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program Wright Insurance Services, LLC

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

State availability varies - call us!

CA CT MA ME NH NY RI VT All States All except AK VT WV IL IN OH All States CT MA ME NH NJ RI PA AL FL GA SC TN All except AK HI NJ NY CA CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX TX CA All States CA CA NV All States All States IL MO

AR IA IL IN KS KY MO OK TN

CA TX AZ NV LA ND NM OK TX CA All States All States

www.insurancejournal.com

2016 Hospitality Risks Directory Bed & Breakfasts Market A.I.I. Insurance Brokerage of Mass., Inc. Advanced E&S Group - Midwest Region Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC B&H Risk Services Bass Underwriters Brecht & Associates Burns & Wilcox Chopra Insurance Brokerage, Inc. CITA Insurance Services Ck Specialty Insurance Associates - All Offices Cochrane & Company Continental Risk Insurance Services CPRO Associates Crusader Insurance Company Evolution Insurance Brokers Executive Insurance Professionals, PLLC Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey IPC J.M. Wilson James River Insurance Company Jimcor Agencies Joseph Krar & Associates M.J. Hall & Company, Inc. McClelland and Hine, Inc. MexiPass International Insurance Services, LLC Monitor Liability Managers NeitClem Wholesale Insurance Brokerage, Inc. NIF Group 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. SCU - All Offices Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies www.insurancejournal.com

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

Market Topa Insurance Company Unifax Insurance Systems, Inc. Unisource Program Administrators W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program

States Available CA CA All except Monopolistic IL MO

AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX CA All States

Breweries/Micro Breweries/Micro coverage category sponsored by:

Anderson & Murison - check our ad on pg 28 (National Section) Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Bass Underwriters Brecht & Associates Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company CPRO Associates Crusader Insurance Company Delta General Agency Corp. Entertainment Risk Evolution Insurance Brokers Founders Insurance Company Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies

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

March 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N33

2016 Hospitality Risks Directory Casinos

Breweries/Micro Market M.J. Hall & Company, Inc. Market Finders Insurance Corp. Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC 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. Roush Insurance Services, Inc. SCU - Middletown Southern Insurance Underwriters, Inc. CMGA Specialty Insurance Tejas American General Agency Topa Insurance Company U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators W.A. Schickedanz Agency, Inc. Walter General Agency (WGA)

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

Casinos Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. American Specialty Ins. & Risk Services, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. B&H Risk Services Bass Underwriters Brecht & Associates Chopra Insurance Brokerage, Inc. CPRO Associates Distinguished Specialty Entertainment Brokers International (OneBeacon) Entertainment Risk Evolution Insurance Brokers

States Available MA NH RI All States CT ME All States Has Pen, All States All States All States Most States AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA TX CA NJ NV NY AR OK TN TX All States All States AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States

N34 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

Market Gray-Stone & Company, Inc. Izzo Insurance Services, Inc. J.M. Wilson James River Insurance Company Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM NIF Group Pacific Excess Insurance Marketing Prime Insurance Company RIC Insurance General Agency, Inc. U.S. Risk Insurance Group, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Wholesale Connection Insurance Services Wright Insurance Services, LLC

States Available Most States All States Most States All States AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV All States All States AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA WI All except CA NH NY RI CA All States IL MO

AR IA IL IN KS KY MO OK TN

CA All States

Caterers Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Advanced E&S Group - Midwest Region AFC Insurance Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC B&H Risk Services Bass Underwriters Braishfield Associates, Inc. Brecht & Associates Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company CPRO Associates Delta General Agency Corp. Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc.

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

2016 Hospitality Risks Directory Caterers

Dinner Theaters

Market Gremesco Of New Jersey Indemnity Excess & Surplus Agency International Excess Companies Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates LevelFirst

Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Bass Underwriters Brecht & Associates Chopra Insurance Brokerage, Inc. Continental Risk Insurance Services CPRO Associates Crusader Insurance Company Delta General Agency Corp. Entertainment Brokers International (OneBeacon) Entertainment Risk Evolution Insurance Brokers Executive Insurance Professionals, PLLC Gray-Stone & Company, Inc. Gremesco Of New Jersey Insurance Multiplex Agency, LLC James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland and Hine, Inc. Monitor Liability Managers Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Pacific Excess Insurance Marketing Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Advisors, LLC Quirk & Company RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Tejas American General Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program Wright Insurance Services, LLC

States Available NJ NY AZ CA CO ID MT NV OR TX WA All States OH All States DE FL MA MD NJ NY OH PA RI WV CT MA AR AZ CA CO GA KS LA MO MS NJ NM NV OH OK PA TX WA Lionheart Insurance Services, Inc. (Large Caterers) AZ CA CO HI ID NM NV OK TX UT WA WY M.J. Hall & Company, Inc. AK AZ CA HI NV Market Finders Insurance Corp. All States McClelland and Hine, Inc. TX Monitor Liability Managers All States Morstan General Agency of Florida II, Inc. All States Nautilus Insurance Co. & Great Divide Ins. Co. All States NeitClem Wholesale Insurance Brokerage, Inc. AZ CA NV New England Excess Exchange, Ltd. CT MA ME NH NJ NY OH PA RI VT NIF Group All States Number One Insurance Agency, Inc. MA Pacific Excess Insurance Marketing AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA WI Partners Specialty Group, LLC All States Patriot National Underwriters, Inc. TX Prime Insurance Company All except CA NH NY RI Professional Liability Ins. Svcs, Inc. - Underwriting Facilities All States ProHost USA All States except AK Quirk & Company LA NM OK OR TX WA RCA Insurance Group Most- see website for specifics Regency Insurance Brokerage Services State availability varies - call us! RIC Insurance General Agency, Inc. CA RISCO Insurance Brokerage, Inc. CT MA ME NH NY RI VT Roush Insurance Services, Inc. IL IN OH SCU - All Offices All States SCU - Middletown CT MA ME NH NJ RI PA Southern Insurance Underwriters, Inc. CMGA AL FL GA SC TN Specialty Insurance (and Delis) CAâ&#x20AC;&#x2C6;CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX TAPCO Underwriters, Inc. Most States Tejas American General Agency TX The McGowan Companies All States Topa Insurance Company CA U.S. Risk Insurance Group, Inc. All States Unisource Program Administrators All except Monopolistic USX/S All States W.A. Schickedanz Agency, Inc. IL MO Walter General Agency (WGA) AR IA IL IN KS KY MO OK TN Western Security Surplus Insurance Brokers CA TX Western Special Risks, Inc. AZ NV Western Surplus Lines Agency, Inc. LA ND NM OK TX Wholesale Connection Insurance Services CA Wright Insurance Services, LLC All States

www.insurancejournal.com

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

AR IA IL IN KS KY MO OK TN

CA All States All States

March 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N35

2016 Hospitality Risks Directory Gentleman’s Clubs

Gentlemen’s Clubs Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana B&H Risk Services Bass Underwriters Braishfield Associates, Inc. Chopra Insurance Brokerage, Inc. Continental Risk Insurance Services Crusader Insurance Company Entertainment Risk Evolution Insurance Brokers Founders Insurance Company Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Horizon E & S Insurance Brokerage Insurance Multiplex Agency, LLC Jacobs & Associates James River Insurance Company Jimcor Agencies LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. Midlands Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc.

Pacific Excess Insurance Marketing Partners Specialty Group, LLC Prime Insurance Company Quaker Special Risk Quirk & Company RCA Insurance Group Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. Risk Placement Services, Inc. RMS Hospitality Group

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

AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA WI All States All except CA NH NY RI Most States LA NM OK OR TX WA Most- see website for specifics

State availability varies - call us!

CA All States All except AK VT WV

N36 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

Market Southwest Risk, LP Tejas American General Agency U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Wholesale Connection Insurance Services Wright Insurance Services, LLC

States Available All except AK HI NJ NY TX All States CA All States IL MO

AR IA IL IN KS KY MO OK TN

CA All States

Hotels/Motels 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. All Risks, Ltd. 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 B&H Risk Services Bass Underwriters Brecht & Associates Burns & Wilcox CITA Insurance Services Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Continental Risk Insurance Services CPRO Associates Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Insurance Professionals, PLLC Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc.

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

www.insurancejournal.com

2016 Hospitality Risks Directory Hotels/Motels Market Gremesco Of New Jersey Horizon E & S Insurance Brokerage Hotels & Resorts Insurance Program – CITA Ins. Services (3, 4 & 5 Star Rated based on Amenities) Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC International Excess Companies IPC Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies KZ Insurance Brokerage, LLC LevelFirst

Hotels/Motels States Available NJ NY AZ CA NV WA All States

M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. MexiPass International Insurance Services, LLC Midlands Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc.

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

NIF Group Northern Underwriting Managers Partners Specialty Group, LLC Patriot National Underwriters, Inc. Prime Insurance Company

All States Most States All States TX All except CA NH NY RI

Professional Liability Ins. Svcs, Inc. - Underwriting Facilities

Promont Advisors, LLC Promont Specialty (GL & Liquor only) Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. Risk Placement Services, Inc. Roush Insurance Services, Inc. Sangamon Associates/Hotel Excess SCU - All Offices SCU - Middletown Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company Travelers

www.insurancejournal.com

All States

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

State availability varies - call us!

CA All States IL IN OH All States All States CT MA ME NH NJ RI PA AL FL GA SC TN All except AK HI NJ NY All States Most States TX All States CA All States

Market U.S. Risk Insurance Group, Inc.

UCA General Insurance Services, Inc.

Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. USX/S W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program Wright Insurance Services, LLC Zurich Programs

States Available All States

AZ CA ID IL NV OR UT WA WI CA All except Monopolistic All States All States IL MO

AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX CA All States All States Nationwide

Resorts Resorts coverage category sponsored by:

Gorst & Compass Insurance - check out our ad on page 12 (West Region) Market A.I.I. Insurance Brokerage of Mass., Inc. ACE Westchester Specialty--Property Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Atlas General Insurance Services, LLC Bass Underwriters Brecht & Associates Burns & Wilcox Chopra Insurance Brokerage, Inc. CITA Insurance Services Cochrane & Company CPRO Associates Delta General Agency Corp. Distinguished Specialty Entertainment Risk Evolution Insurance Brokers Gorst & Compass Insurance Gray-Stone & Company, Inc. Hotels & Resorts Insurance Program – CITA Ins. Services (3, 4 & 5 Star Rated based on Amenities)

States Available MA NH RI All States CT ME Has Pen, All States All States All States IL IN KY MI OH TN Many States AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA TX All States CA NJ NV NY All States ID MT OR WA AR OK TN TX TX All States AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States CA Most States All States

March 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N37

2016 Hospitality Risks Directory Resorts Market Izzo Insurance Services, Inc. James River Insurance Company Jimcor Agencies

K & K Insurance Group, Inc.

M.J. Hall & Company, Inc. MAXIMUM MexiPass International Insurance Services, LLC Monitor Liability Managers NIF Group Northern Underwriting Managers 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) Quirk & Company RIC Insurance General Agency, Inc. Risk Placement Services, Inc. SUITELIFE by Venture Insurance Programs Tejas American General Agency The McGowan Companies Travelers USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program Wright Insurance Services, LLC Zurich Programs

Restaurants States Available All States All States DE FL MA MD NJ NY OH PA RI WV

All States

AK AZ CA HI NV All States All States All States All States Most States AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA WI TX Most States All except CA NH NY RI All States All States (no GL in LA) LA NM OK OR TX WA CA All States All States TX All States All States All States IL MO

AR IA IL IN KS KY MO OK TN

CA All States All States Nationwide

Restaurants Restaurants coverage category sponsored by:

Burns & Wilcox - we’re on page 9 (National) M.J. Hall & Company - check us out on page 8 (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 AFC Insurance Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling

States Available MA NH RI CA All States CO FL IA IL IN KS KY MI MN MO NE OH TX WI All states except KY Most States CT ME Has Pen, All States All States All States AZ CA NV

N38 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

Market Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC B&H Risk Services Bass Underwriters Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. CITA Insurance Services Ck Specialty Insurance Associates - All Offices Continental Risk Insurance Services CPRO Associates Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Entertainment Brokers International (OneBeacon) Entertainment Risk Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Horizon E & S Insurance Brokerage Hotels & Resorts Insurance Program – CITA Ins. Indemnity Excess & Surplus Agency Insurance Multiplex Agency, LLC International Excess Companies IPC (includes Food Delivery) Irving Weber Associates, Inc. (no Fast Food) Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates KZ Insurance Brokerage, LLC LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. MexiPass International Insurance Services, LLC

States Available IL IN KY MI OH TN TX Many States Most States AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States TX All States CA NJ NV NY AZ CA CO ID MD NE NM NV OR TN TX UT WA All States AZ CA CO ID NV OR UT WA

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

www.insurancejournal.com

2016 Hospitality Risks Directory Restaurants Market Midlands Monitor Liability Managers Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Northern Underwriting Managers Number One Insurance 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 (and Diners) Promont Specialty Quaker Special Risk Quirk & Company RCA Insurance Group Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMS Hospitality Group (+ Franchise & Fast Food) Roush Insurance Services, Inc. SCU - All Offices SCU - Middletown Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP Specialty Insurance (and Delis) TAPCO Underwriters, Inc. Target Market Specialists Tejas American General Agency The McGowan Companies Tokio Marine HCC, Specialty Group Topa Insurance Company Travelers U.S. Risk Insurance Group, Inc.

UCA General Insurance Services, Inc.

Unifax Insurance Systems, Inc. Unisource Program Administrators USASIA Insurance Services USG Insurance Services, Inc. USX/S W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC

www.insurancejournal.com

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

All States

All States except AK All States All States Most States LA NM OK OR TX WA Most- see website for specifics State availability varies - call us!

CA CT MA ME NH NY RI VT All States All except AK VT WV IL IN OH All States CT MA ME NH NJ RI PA AL FL GA SC TN All except AK HI NJ NY CA CT DE FL GA IL MA MD MI MN MO NJ NY OH PA RI TN TX Most States All States TX All States All States CA All States All States

AZ CA ID IL NV OR UT WA WI CA All except Monopolistic CA NV All States All States IL MO

AR IA IL IN KS KY MO OK TN

CA TX AZ NV LA ND NM OK TX CA All States

Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC B&H Risk Services Bass Underwriters Braishfield Associates, Inc. Burns & Wilcox Chopra Insurance Brokerage, Inc. CITA Insurance Services Ck Specialty Insurance Associates - All Offices CPRO Associates Distinguished Specialty Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Hotels & Resorts Insurance Program – CITA Ins. Indemnity Excess & Surplus Agency International Excess Companies Izzo Insurance Services, Inc. James River Insurance Company Jimcor Agencies Joseph Krar & Associates M.J. Hall & Company, Inc. MexiPass International Insurance Services, LLC NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Pacific Excess Insurance Marketing Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Professional Program Insurance Brokerage Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. SASSI - Salon & Spa Specialty Insurance SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency U.S. Risk Insurance Group, Inc. Unisource Program Administrators USX/S W.A. Schickedanz Agency, Inc. Walter General Agency (WGA)

States Available MA NH RI CA CT ME Has Pen, All States All States All States AZ CA NV IL IN KY MI OH TN TX Many States Most States AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States All States CA NJ NV NY All States AZ CA CO ID NV OR UT WA

AR OK TN TX All States All States All States FL CA Most States NJ NY All States AZ CA CO ID MT NV OR TX WA All States All States All States DE FL MA MD NJ NY OH PA RI WV CT MA AK AZ CA HI NV All States AZ CA NV All States AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA WI Most States All except CA NH NY RI All States Most States LA NM OK OR TX WA

State availability varies - call us!

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

AR IA IL IN KS KY MO OK TN

March 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N39

2016 Hospitality Risks Directory Spas Market Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Wright Insurance Services, LLC Zurich Programs

Special Events States Available AZ NV LA ND NM OK TX CA All States Nationwide

Market International Excess Companies J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates

K & K Insurance Group, Inc. LevelFirst

Special Events Special Events coverage category sponsored by:

Abram Interstate - check out our ad on page 6 (West Region) Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Advanced E&S Group - Midwest Region Advanced E&S Group - Southeast Region Agency Intermediaries, Inc. All Risks, Ltd. American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Bass Underwriters Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. CITA Insurance Services Cochrane & Company Continental Risk Insurance Services CPRO Associates Delta General Agency Corp. Entertainment Brokers International (OneBeacon) Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company Gabor Insurance Services, Inc. Gateway Specialty Insurance Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Indemnity Excess & Surplus Agency

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

N40 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

Lionheart Insurance Services, Inc. (Large Events) M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. MexiPass International Insurance Services, LLC Midlands Morstan General Agency of Florida II, Inc. N-Surance Outlets, Inc. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Partners Specialty Group, LLC Philadelphia Insurance Companies Prime Insurance Company Professional Program Insurance Brokerage Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. Risk Placement Services, Inc. RMS Hospitality Group Roush Insurance Services, Inc. SCU - All Offices SCU - Middletown Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP TAPCO Underwriters, Inc. The McGowan Companies Tokio Marine HCC, Specialty Group U.S. Risk Insurance Group, Inc. USASIA Insurance Services USG Insurance Services, Inc. USX/S W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Wholesale Connection Insurance Services Willis Programs, ResortGuard Ins. Program

States Available All States Most States OH All States DE FL MA MD NJ NY OH PA RI WV CT MA

All States

AR AZ CA CO GA KS LA MO MS NJ NM NV OH OK PA TX WA AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV All States All States TX All States Most States All States AL FL GA LA NC SC TN All States AZ CA NV CT MA ME NH NJ NY OH PA RI VT All States MA AZ CA CO IA ID IL IN KS MO MT NE NM NV OK OR TX UT WA WI All States Most States All except CA NH NY RI Most States Most States LA NM OK OR TX WA State availability varies - call us!

CA All States All except AK VT WV IL IN OH All States CT MA ME NH NJ RI PA AL FL GA SC TN All except AK HI NJ NY Most States All States All States All States CA NV All States All States IL MO

AR IA IL IN KS KY MO OK TN

CA TX AZ NV LA ND NM OK TX CA All States

www.insurancejournal.com

2016 Hospitality Risks Directory - Alphabetical Directory of Markets A.I.I. Insurance Brokerage of Mass., Inc.

Burns & Wilcox - All Offices

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

Abram Interstate Ins. Services, 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

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

AmWINS Group, Inc.

See Website for Locations - HQ - Charlotte, NC 28210 Phone: 704-973-3489, Fax: 704-943-9000 Email: marketing@amwins.com www.amwins.com

Anderson & Murison, Inc.

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

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

Arlington/Roe & Co of Indiana

Advanced E&S Group - Midwest Region 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

Advanced E&S Group - Southeast Region 3250 N. 29th Ave., Hollywood, FL 33020 Phone: 954-842-7826, Fax: 904-834-4479 Email: tstevens@advancedesgroup.com www.advancedesgroup.com

AFC Insurance

3101 Emrick Blvd., Ste. 318, Bethlehem, PA 18020 Phone: 877-456-5323 ext. 1838, Fax: 610-974-8574 Email: dina.tristani@afcins.com www.afcins.com

Agency Intermediaries, Inc.

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

All Risks, Ltd.

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

American Specialty Insurance & Risk Services 7609 W. Jefferson Blvd., Ste. 100, Fort Wayne, IN 46804 Phone: 260-969-5203, Fax: 260-969-4729 Email: sbatt@amerspec.com for Casinos Email: zachm@amerspec.com for Special Events www.amerspec.com

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

Ashley General Agency

2040 N. Loop 336 W, Ste. 200, Conroe, TX 77304 Phone: 936-441-5959, Fax: 936-521-5922 Email: rcranford@ashleyga.com www.ashleyga.com

Atlas General Insurance Services, LLC 4365 Executive Dr., Ste. 400, San Diego, CA 92121 Phone: 877-66-ATLAS, Fax: 619-814-8914 Email: marketing@atlas.us.com www.atlas.us.com

B&H Risk Services

15660 N. Dallas Pkwy, Ste. 660, Dallas, TX 75248 Phone: 972-598-0416 ext. 416 Email: greenwoodl@bhrisks.com www.bhrisks.com

Bass Underwriters

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

Braishfield Associates, Inc.

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

www.insurancejournal.com

Chopra Insurance Brokerage, Inc.

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

CID Insurance Programs, Inc.

7125 El Cajon Blvd. Ste 3, San Diego, CA 92115 Phone: 800-922-7283, Fax: 619-593-2008 Email: Teresa@cidinsurance.com www.cidinsurance.com

CITA Insurance Services

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

Ck Specialty Insurance Associates - All Offices 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

Continental Risk Insurance Services 330 S. Fairmont Ave., Ste. 2, Lodi, CA 95240 Phone: 209-365-6130, Fax: 209-365-6040 Email: ed@continentalriskins.com www.continentalriskins.com

CPRO Associates

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

Crusader Insurance Company

26050 Mureau Rd., Calabasas, CA 91302 Phone: 800-669-9800, Fax: 818-591-9856 Email: dklayman@crusaderinsurance.com www.crusaderinsurance.com

Delta General Agency Corp.

P.O. Box 2045, Houston, TX 77252 Phone: 713-570-2700, Fax: 713-570-2800 Email: billf@deltains.com www.deltains.com

Distinguished Specialty

11245 SE 6th St., Ste. 100, Bellevue, WA 98004 Phone: 425-213-5130, Fax: 212-297-3130 Email: thughes@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

See Website for Locations HQ - Detroit/Farmington Hills Phone: 248-932-9000, Fax: 248-932-9046 Email: quote@burns-wilcox.com www.burnsandwilcox.com

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

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 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N41

2016 Hospitality Risks Directory - Alphabetical Directory of Markets

2016 Hospitality Risks Directory Horizon E & S Insurance Brokerage

Entertainment Risk

11350 McCormick Rd. Executive Plaza 2, Ste. 1002 Hunt Valley, MD 21031 Phone: 844-368-7475 Email: inquiry@entertainmentrisk.com www.entertainmentrisk.com

Evolution Insurance Brokers

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

Phone: 877-678-7342, Fax: 877-678-7342 Email: quotes@eibdirect.com www.eibdirect.com

681 S. Parker St., Ste. 300, Orange, CA 92868 Phone: 714-939-7420, Fax: 714-939-7437 Email: sbaxter@citainsurance.com www.citainsurance.com

Executive Insurance Professionals, PLLC

Indemnity Excess & Surplus Agency

8722 S. Harrison St., Salt Lake City, UT 84070

6001 W. Interstate 20, Ste. 214, Arlington, TX 76017

Phone: 800-779-4095, Fax: 866-779-4331 Email: cheryl@execins.com www.execins.com

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

International Excess Companies 1111 E. Touhy Ave., Des Plaines, IL 60018 Contact: Pat Vaulman Phone: 800-768-0040 ext 2562, Fax: 847-296-3362 Email: pvaulman@foundersinsurance.com www.foundersinsurance.com

Founders is a multi-state specialty carrier, serving the insurance needs of independent agents for over 100 years. Founders specializes in writing Liquor Liability and Special Events (liquor & GL*) 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. * (excludes AL, FL)

Gabor Insurance Services, Inc. Gabor Insurance Services, Inc. Phone: 786-924-7055, Fax: 786-924-7065 Email: Mgabor@gaborinsurance.com www.gaborinsurance.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

Gorst & Compass Insurance

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

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

Joseph Krar & Associates, Inc.

1676 West St., Southington, CT 06489 Phone: 860-628-3967, Fax: 860-628-3967 Email: submissions@jkrar.com www.jkrar.com

1915 NW AmberGlen Pky, Ste. 450, Beaverton, OR 97006 Phone: 503-526-9700, Fax: 503-626-2260 Email: submissions@ies-xs.com www.ies-xs.com

Insurance Multiplex Agency, LLC

Founders Insurance Company

Jimcor Agencies

3700 Park East Dr., Ste. 250, Beachwood, OH 44122 Phone: 216-797-9700, Fax: 216-797-9970 Email: kennethkukral@intlxs.com www.intlxs.com

IPC

K & K Insurance Group, Inc.

1712 Magnavox Way, Ft. Wayne, IN 46804 Special Events Ph: 800-553-8368, Fx: 260-459-56243 Resorts Ph: 877-355-0315, Fx: 260-459-5990 Email: kk.general@kandkinsurance.com www.kandkinsurance.com

With over 60 years of experience, K&K is a leading provider of specialty coverage for the sports, leisure, recreation, entertainment and motorsports industries. Over 5,000 agents across the U.S. choose K&K for competitive rates and admitted coverage—visit www.kandkinsurance.com for applications and underwriting guidelines.

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

Irving Weber Associates, Inc. (IWA)

180 E. Main St., Ste. 208, Smithtown, NY 11787 Phone: 855-661-4557, Fax: 888-622-0414 Email: info@iwains.com www.iwains.com

Izzo Insurance Services, Inc.

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

Jacobs & Associates

12782 Prospect Rd., Strongsville, OH 44149 Phone: 440-625-2690, Fax: 440-625-2731 Email: jim@jacobsnow.com www.jacobsnow.com

LevelFirst

5501 LBJ Fwy, Ste. 720, Dallas, TX 75240 Phone: 214-702-9389, Fax: 214-736-8628 Email: amoes@iiat.org www.level1st.com

Lionheart Insurance Services, Inc. 2742 Kingclaven Dr., Henderson, NV 89044 Phone: 702-834-8140 Fax: 702-834-8140 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: staceys@mjhallandcompany.com www.mjhallandcompany.com

Market Finders Insurance Corp P.O. Box 6549, Louisville, KY 40206 Phone: 800-626-5660, Fax: 502-426-7970 Email: sdavis@mfic.com www.mfic.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

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

N42 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

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 www.insurancejournal.com

2016 Hospitality Risks Directory - Alphabetical Directory of Markets McClelland and Hine, Inc.

P.O. Box 700930, San Antonio, TX 78270 Phone: 800-333-2017, Fax: 210-366-2407 Email: shannon@mhi-mga.com www.mhi-mga.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: 800800-4007, Fax: 800-800-4007 Email: marketing@midman.com www.midlandsmgt.com

Monitor Liability Managers

233 S. Wacker Dr., Ste. 3900, Chicago, IL 60606 Phone: 312-800-6200, Fax: 312-207-1839 Email: contactus@monitorliability.com www.monitorliability.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

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

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

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

New England Excess Exchange, Ltd. P.O. Box 650, Barre, VT 05641 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

Northern Underwriting Managers

6060 Strathmoor Dr., Ste. 3, Rockford, IL 61107 Phone: 815-226-9353 ext. 104 Email: acarpenter@niinsurance.com www.NorthernUM.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

www.insurancejournal.com

2016 HospitalityQuirkRisks Directory & Company

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

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

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

Regency Insurance Brokerage Services P.O. Box 190, Hallandale Beach, FL 33008-0190 Phone: 800-982-1895, Fax: 954-454-5862 Email: Submissions@RegencyBrokerage.com www.RegencyInsuranceBrokerage.com

Partners Specialty Group, LLC

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.

2544 Cleveland Ave., Ste. 100, Santa Rosa, CA 95403 Phone: 888-693-7892, Fax: 866-577-7595 Email: ricins@ric-ins.com www.ric-ins.com

Patriot National Underwriters, Inc. 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 Placement Services, Inc.

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

Prime Insurance Company

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

Professional Liability Insurance Svcs, Inc. - Underwriting Facilities 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

Professional Program Insurance Brokerage 371 Bel Marin Keys Blvd., Novato, CA 94949 Phone: 415-475-4300, Fax: 415-475-4303 Email: info@ppibcorp.com www.ppibcorp.com

ProHost USA

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. 1920, Chicago, IL 60601 Phone: 312-262-3340, Fax: 312-262-3301 Email: estellern@promontadvisors.com www.promontadvisors.com

Promont Specialty

1 E. Wacker Dr., Ste. 1920, Chicago, IL 60601 Phone: 312-262-3331, Fax: 312-262-3301 Email: estellern@promontadvisors.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

RMS Hospitality Group

100 Ring Rd. West, Ste. 202, Garden City, NY 11530 Phone: 516-742-8585 ext. 204, Fax: 516-742-5678 Email: info@rmshg.com www.rmshg.com

RMS HG presents an exclusive insurance program for your Hospitality Industry clientele with “A” rated carriers. A platform like no other in the Hospitality Industry, RMS HG provides a solution to the insurance agent/broker community for hospitality risks with a program that offers comprehensive and flexible coverage forms at competitive premiums.

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

Sangamon Associates/Hotel Excess

65 S. Main St., Ste. AC-200, 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 7, 2016 INSURANCE JOURNAL-NATIONAL REGION | N43

2016 Hospitality Risks Directory - Alphabetical Directory of Markets

2016 Hospitality Risks Directory Tokio Marine HCC, Specialty Group

SCU - All Offices

W.A. Schickedanz Agency, Inc.

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

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

SCU - Middletown

Topa Insurance Company

1800 Avenue of the Stars, 12th Fl, Los Angeles, CA 90067 Phone: 800-949-6505, Fax: 310-843-9409 Email: topa-marketing@topa-ins.com www.topains.com

Walter General Agency (WGA)

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

Southern Insurance Underwriters, Inc. CMGA

Travelers

Western Security Surplus Insurance Brokers, Inc.

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

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

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 Insurance Programs 1301 Wrights Lane East, West Chester, PA 19380 Phone: 800-282-6247 ext. 244, Fax: 610-692-5977 Email: Marketing@suitelifeins.com www.Suitelifeins.com

TAPCO Underwriters, Inc.

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

273 Clarkson Rd., Ste. 102, Ellisville, MO 63011 Phone: 636-391-4841, Fax: 636-391-2115 Email: newquotes@wgamo.com www.wgamo.com 5800 Granite Pkwy, Ste. 300, Plano, TX 75024 Phone: 972-702-0500, Fax: 972-702-0504 Email: kstevens@wssib.com www.wssib.com

Western Special Risks, Inc.

10451 W. Palmeras, Ste. 118, Sun City, AZ 85373 Phone: 888-317-5575, Fax: 623-977-4622 Email: rwilliams@westernspecialrisks.com www.westernspecialrisks.com

Western Surplus Lines Agency, Inc.

Southwest Risk, LP

8144 Walnut Hill Ln., Ste. 1400, Dallas, TX 75231 Phone: 214-206-4900, Fax: 214-206-4901 Email: wwrobel@swrisk.com www.swrisk.com

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

UCA General Insurance Services, Inc.

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

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

Wholesale Connection Insurance Services

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.

Willis Programs, ResortGuard Ins. Program

Unifax Insurance Systems, Inc.

26050 Mureau Rd., Calabasas, CA 91302 Phone: 800-669-9800, Fax: 818-591-9856 Email: dklayman@crusaderinsurance.com www.crusaderinsurance.com

Unisource Program Administrators

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

USASIA Insurance Services

21800 Burbank Blvd., Ste. 202, Woodland Hills, CA 91367 Phone: 818-716-9800, Fax: 818-716-9800 www.wcis-ins.com One New Hampshire Ave., Ste. 200, Portsmouth, NH 03801 Phone: 603-334-3029, Fax: 603-334-3090 Email: Jeffrey.benjamin@willistowerswatson.com www.resortguard.com

Wright Insurance Services, LLC

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

Zurich Programs

13810 FNB Pkwy, Omaha, NE 68154 Phone: 866-873-0782 Email: info@zprogramsmatch.com www.zprogramsmatch.com

319 Union Ave., Pomona, CA 91768 Phone: 909-618-0288, Fax: 909-618-0289 Email: shirley@usasia-ins.com www.usasia-ins.com

USG Insurance Services, Inc.

The McGowan Companies 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

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

USX/S

6929 W. 130th St., Ste. 100, Cleveland, OH 44130 Phone: 440-888-7300, Fax: 440-888-7380 Email: brokers@usxs.net www.USXS.net

N44 | INSURANCE JOURNAL-NATIONAL REGION March 7, 2016

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SPECIAL REPORT

Auto

continued from page 27

Private Auto Insurance Market Share Ranked by Direct Written Premium (2015)

Private Auto Direct Written Premium 9m 2015 ($ Bil.)

State Farm 27.6 GEICO 17.3 Allstate 15.1 Progressive 13.2 USAA 8.0 Liberty Mutual 7.8 Farmers Group 7.5 Nationwide 6.0 Travelers 2.9 American Family 2.8 Industry 155.9 Source: SNL Financial Statutory Accounting Principles

ing and repairing vehicles made of more technologically sophisticated materials and replacing more complex devices and equipment within a vehicle is also rising. Claims severity in 2015 moved higher in auto insurance in major coverages including: bodily injury, property damage and collision. GEICO Corp. reported claims severity increased 4-5 percent for property damage and collision claims, and 6-7 percent for bodily injury. Individual underwriter 2015 results in personal auto insurance varied considerably. Only three companies, Travelers Cos. Inc., Infinity Property & Casualty Corp., and The Hanover Insurance Group reported year-over-year improvement in GAAP basis auto underwriting profits. Progressive Corp., a strong performer and fourth largest auto writer by premium, reported a 93.5 percent auto combined ratio for the year. In contrast the second largest private auto underwriter, GEICO, reported a 3.7 point auto combined ratio increase in 2015, and third largest auto underwriter, Allstate, reported a three point increase in the auto combined ratio in 2015 to essentially breakeven results. Three underwriters, Kemper Corp., Cincinnati Financial and Horace Mann reported combined ratios in personal www.insurancejournal.com

auto insurance above 100 percent for the year. Looking ahead to 2016, personal auto results may show moderate improvement, but will ultimately Market hinge on how well insurShare ance pricing keeps pace 17.7% with loss trends that are 11.1% likely to continue to out9.7% pace general inflation. 8.5% Premium rate trends are 5.1% 5.0% currently more favorable 4.8% in personal lines relative 3.8% to commercial lines, as 1.8% publicly traded insurers 1.8% report regular renewal 100.0% rate increases in quarterly earnings disclosures, while most commercial segments are experiencing flat to declining pricing trends. Consumer Price Index (CPI) data shows that costs for motor vehicle insurance continues to increase and the monthly change averaged 5.4 percent through all of 2015. Besides the perpetual striving for pric-

Looking ahead to 2016, personal auto results may show moderate improvement, but will ultimately hinge on how well insurance pricing keeps pace with loss trends.

ing adequacy, personal auto insurers face other obstacles that could hinder future profitability, including reduced investment earnings amidst continued low fixed income market asset yields and a weakening equity market, balancing technology improvement with expense control objectives. Automobile insurance premium rates will continue to rise in the near term as targeting rate increases in response to recent loss experience is a key theme in auto underwritersâ&#x20AC;&#x2122; recent remarks to investors. Auden is sector head for North America Property/ Casualty Insurance ratings at Fitch Ratings. Email: jim.auden@fitchratings.com.

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 W6 Academy of Insurance ijacademy.com 39 Agency Ideas www.agencyideas.com 19 Anderson & Murison www.andersonmurison.com 23 Applied Systems www.appliedsystems.com 7 Applied Underwriters www.auw.com 2, 3, 48 Burns & Wilcox Ltd. www.burnsandwilcox.com 9 California Earthquake Authority www.earthquakeauthority.com/mvp W3 Century National www.cnico.com W5 First American Specialty Insurance Company www.firstam.com W9 Fujitsu www.fcpa.fujitsu.com 17 Gorst & Compass Insurance www.gorstcompass.com W12 Lighthouse Holdings, LLC www.lighthousepropertyins.com SC6, SE6

Louisiana Commerce & Trade Assoc. www.lctacomp.com SC5 M.J. Hall & Company www.mjhallandcompany.com W8 Midlands Management Corporation www.midlandsmgmt.com SC4 Monarch E&S Insurance Services www.monarchexcess.com W11 MUSIC www.music-ins.com 13 NAPSLO www.napslo.org 27 National General Insurance www.nationalgeneral.com 15 Pacific Gateway Insurance Services www.pgiainsurance.com W7 Pacific Specialty Insurance Company www.pacificspecialty.com W1 PersonalUmbrella.Com www.personalumbrella.com 4, 5 St. Johns Insurance Company www.stjohnsinsurance.com SE5 Texas Mutual www.texasmutual.com SC3 United Fire Group www.ufgsolutions.com M6, M7

March 7, 2016 INSURANCE JOURNAL-NATIONAL | 45

IDEA EXCHANGE

Closing Quote

How to Attract, Retain Next Generation of Brokers

I By Kim Van Orman

t is no secret that many insurance professionals, especially those in sales, tend to be at more advanced stages in their careers. But how do you attract and lead a new generation of brokers when insurance is not near the top of a millennial’s list when it comes to career choices? No matter what the career path, today’s young talent wants to know that their employer is going to develop them and provide a clear path with opportunity for progression. They want real-time training and incentives for professional growth. Millennials also are looking for a collaborative work culture that’s stimulating and surrounded by professionals, who have a passion for getting involved and helping others through solutions that benefit their customers and local communities. And, they want to see an investment in technology that is current; a platform that makes them more nimble. To enhance a brokerage firm’s outreach among strong, junior talent, there are several initiatives management should be spearheading. For starters, implementing a number of regional as well as national programs that focus on new business development processes can jump-start a young sales professional’s career or be a timely refresher for an experienced professional. It is important for these programs to be hands-on,

46 | INSURANCE JOURNAL-NATIONAL March 7, 2016

high-energy, deep-dive sessions with clear and practical goals designed to improve their sales success, not criticize it. During these sessions it also can be useful to spend some time helping young professionals build their personal brand (e.g., LinkedIn profiles). Doing so not only communicates their skills in a clear and professional manner, but ensures the message is aligned with the brokerage firm’s message. Equally important is the ongoing scheduling of weekly “enterprise planning” meetings that are focused on the sales cycle. This gives new producers the opportunity to work together on role-playing, prospect lists and emails, and how to collaborate with leaders and technical resources in the most effective manner. Other sessions should include preparing for appointments, closing business and retaining valued clients. Sales programs that are more technical in nature also are popular among future producers as it enables them to drill down into creating solutions by size and vertical specialty. Hosting week-long educational training sessions led by a firm’s veterans can help ensure that subject matter intelligence does not retire once they do, but remains in-house. Aside from training, millennials are concerned about the communities they live and work in, so it’s important to communicate your firms’ strategy on corporate social responsibility. Today’s talent are hyperaware of social and environmental issues, and where they choose to work is influenced by how much or how little a firm is doing to effect change. The industry hasn’t historically Employment had an exciting reputation, which is opportunities unfair. It is fascinating, particularly within the among firms that are constantly leveraging technology. The employindustry are ment opportunities that exist withplentiful, in this industry are plentiful, chalchallenging lenging and rewarding. Insurance, and rewarding. by its nature, addresses emerging risks that evolve with each generation. And the attraction and challenges associated with those risks are unique with each generation. Enter millennials who want to work for a company that isn’t just about profits, but a place that gives them a real sense of purpose. Firms that embrace the premise that millennials want to be part of an open, challenging and engaged workforce, will be the firms that lead the next generation of highdrive, high-knowledge and high-passion producers. Van Orman is senior vice president and chief human resources officer at USI Insurance Services.

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Expect big things in workersâ&#x20AC;&#x2122; compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide. For information call (877) 234-4450 or visit auw.com/us. ÂŠ2016 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.