Insurance Journal West 2017-03-06 by Insurance Journal

WEST REGION Insurance Accelerator’s Growth-Spurt Calif. Central Coast’s Comp Claims Wraight New IJ Academy Director

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Contents March 6, 2017 • Vol. 95 No. 5 • West

West

National 8 Interest in Insurtech Expected to Remain Hot in 2017

W1 LA County Supervisors Order Inspection of Dams in Wake of Oroville Emergency

10 Why Bundling Policies Is Both Good and Bad for Insurers

W4 California DIR Suspends 7 Workers’ Comp Medical Providers for Fraud W6 California’s Central Coast Accounting for More of State’s Comp Claims, Report Shows W8 Patient Complaints Can Identify Surgeons Who Are Higher Claims Risks

14 Special Report: Top 20 Auto & Homeowners Carriers

W4 CALIFORNIA DIR SUSPENDS 7 WORKERS’

COMP MEDICAL PROVIDERS FOR FRAUD

16 Spotlight: PURE COO on Mutual Growth, Home and Auto 18 Special Report: Building the Tiny Home Market 24 2017 Hospitality Risks Directory

W10 Wraight Named Insurance Journal Academy Director W16 Mentor-Driven Global Insurance Accelerator Is Enjoying its Own Growth Spurt

Idea Exchange

20 BEST PRACTICES FOR HOSPITALITY

BUSINESS INTERRUPTION RECOVERY

W12 Who Self-Insures for Workers’ Compensation in California? 20 Best Practices for Hospitality Business Interruption Recovery 40 The Competitive Advantage: Chris Burand 42 Closing Quote: Global Political Environment Puts Business Interruption Top of Mind

Departments W2 People 11 Declarations

42 GLOBAL POLITICAL ENVIRONMENT PUTS

4 | INSURANCE JOURNAL | WEST MARCH 6, 2017

BUSINESS INTERRUPTION TOP OF MIND

11 Figures 12 Business Moves 39 MyNewMarkets INSURANCEJOURNAL.COM

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OPENING NOTE

Write the Editor: awells@insurancejournal.com

Homes in Environmental Hazard Zones

M Publisher Mark Wells mwells@wellsmedia.com

EDITORIAL

SALES

Editor-in-Chief Andrea Wells awells@insurancejournal.com

West Sales Dena Kaplan (800) 897-9965 X115 dkaplan@insurancejournal.com

East Editor Elizabeth Blosfield eblosfield@insurancejournal.com

Romeo Valdez (800) 897-9965 X172 rvaldez@insurancejournal.com

Chief Content Officer Andrew Simpson asimpson@insurancejournal.com

Southeast Editor/MyNewMarkets 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 L.S. Howard lhoward@insurancejournal.com Columnists Chris Burand Contributing Writers

Todd Bryant, Mu-Sheng “Shane” Chang, Gary Fineout, Jacob Parsons, Douglas A Powell, Dan Tuman IJ ACADEMY OF INSURANCE Director Patrick Wraight pwraight@ijacademy.com Associate Director Barbara Whiffen bwhiffen@ijacademy.com

ADMINISTRATION

Chief Financial Officer Mark Wooster mwooster@wellsmedia.com

MARKETING

Marketing Director Derence Walk dwalk@insurancejournal.com Marketing Administrator Gayle Wells gwells@insurancejournal.com

NEW MEDIA

New Media Producer Bobbie Dodge bdodge@insurancejournal.com Videographer/Editor Ashley Waldrop awaldrop@insurancejournal.com

Chief Marketing Officer Julie Tinney (800) 897-9965 X148 jtinney@insurancejournal.com

South Central Sales Mindy Trammell (800) 897-9965 X149 mtrammell@insurancejournal.com Southeast and East Sales (except for NY, PA and CT) Howard Simkin (800) 897-9965 X162 hsimkin@insurancejournal.com Midwest Sales Lisa Whalen (800) 897-9965 X180 lwhalen@insurancejournal.com East Sales (NY, PA and CT only) Dave Molchan (800) 897-9965 X145 dmolchan@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 X120 eburns@insurancejournal.com Insurance Markets Manager Kristine Honey (619) 584-1100 X132 khoney@insurancejournal.com Social Media Manager Ly Short (619) 890-7735 Lshort@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale Sr. Sales & Marketing Coordinator Kelly De La Mora (800) 897-9965 X125 kdelamora@insurancejournal.com

DESIGN/WEB

Chief Technology Officer/ Chief Innovation Officer Joshua Carlson jcarlson@insurancejournal.com V.P. of Design Guy Boccia gboccia@insurancejournal.com Senior Web Developer Chris Thompson cthompson@insurancejournal.com Web Developer Jeff Cardrant jcardrant@insurancejournal.com Web Developer Terrance Woest twoest@wellsmedia.com

CIRCULATION

Circulation Manager Elizabeth Duffy eduffy@wellsmedia.com

illions of homes and condominiums are in high danger zones for environmental hazards, according to the Environmental Hazards Housing Risk Index, produced by ATTOM Data Solutions. The report showed 17.3 million single family homes and condos with a combined estimated market value of $4.9 trillion are in zip codes with high or very high risk for at least one of four environmental hazards: Superfunds, brownfields, polluters or poor air quality. The 17.3 million homes and condos represent 25 percent of the 68.1 million single family homes and condos in the 8,642 zip codes analyzed, according to ATTOM, which manages one of the country’s largest property databases. Researchers calculated a risk index for each of the four environmental hazards for each of the 8,642 zip codes, and then divided the indexes into five categories of risk: Very Low, Low, Moderate, High and Very High. Of the 8,642 zip codes analyzed, 6,238 with 50.8 million single family homes and condos (75 percent) worth a combined $16.9 trillion did not have a High or Very High risk index for any of the four environmental hazards. “Home values are higher and long-term home price appreciation is stronger in zip codes without a high risk for any of the four environmental hazards analyzed,” said Daren Blomquist, senior vice president at ATTOM Data Solutions. “Corresponding to that is a higher share of homes still seriously underwater in the zip codes with a high risk of at least one environmental hazard, indicating those areas have not regained as much of the home value lost during the downturn.” A total environmental hazard index combining the four individual hazard indexes was also calculated for each of the 8,642 zip codes nationwide. Zip codes with the 10 highest Total Environmental Hazard Index values were in Denver (80216); San Bernardino, Calif. (92408); Curtis Bay, Md. (21226 — in the Baltimore metro area); Santa Fe Springs, Calif. (90670 — in the Los Angeles metro FOR QUESTIONS area); Fresno, Calif. (93725); Niagara Falls, N.Y. REGARDING SUBSCRIPTIONS: Call: 855-814-9547 (14303); Saint Louis, Mo. (63133); Mira Loma, Outside the U.S., call 847-400-5951 or you may subscribe or change your address online at: Calif. (91752 — in the Riverside-San Bernardino insurancejournal.com/subscribe metro area); Hamburg, Pa. (19526 — in the Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media Reading metro area); and Tampa, Fla. (33619). Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 For the report, ATTOM Data Solutions per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this pubanalyzed 8,642 U.S. zip codes. A housing risk lication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended index was calculated for each of the four types to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2016 Wells of hazards. The maximum index value for Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. each index was 250 and the minimum was 0. Insurance Journal is a publication of Wells Media Group, Inc.

‘Home values are higher and long-term home price appreciation is stronger in zip codes without a high risk for any of the four environmental hazards analyzed.’

Andrea Wells Editor-in-Chief

6 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

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NATIONAL | News & Markets

Interest in Insurtech Expected to Remain Hot in 2017: KPMG By L.S. Howard

nvestor interest in insurtech is expected “to remain hot across all regions of the world” during 2017, following strong growth in 2016, according to a report by KPMG. In the coming year, most insurtech investments likely will focus on companies specializing in individual components of the value chain, such as distribution, underwriting, claims and customer service, said the report titled “The Pulse of Fintech Q4 2016 – Global analysis of investment in fintech.” However, some investors may follow the lead of Lemonade and Trov, which KPMG described as two early-mover, full-service digital insurance providers. The range of “disruptive insurtech solutions” introduced last year include some aimed at unbundling insurance offerings, while others aim to

provide niche insurance offerings “outside the purview of traditional insurers,” the report said. “Investment from corporates is also expected to grow as traditional insurers look for technologies that can help them respond to the evolving demands of their customers,” said the KPMG report. The report noted that traditional insurers also made significant fintech investments in 2016, “both by setting up fintech innovation labs and by investing in fintech companies more directly.” Further, interest in cross-industry technologies – such as healthtech, automotive telematics and commercial drones – are also expected to remain high, said the report. The industry has been ripe for disruption, and hence, investor interest in insurtech, because many traditional insurers have been hampered by legacy IT systems and regula-

8 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

tory transformation programs, which has created limited funds to invest in innovation, the report explained. “There seems to be significant pent-up demand for solutions to the problems challenging the insurance industry – from the need to improve operational efficiencies and cost effectiveness to creating more customer-centric product offerings,” said Murray Raisbeck, Partner Insurance, KPMG in the UK, who was quoted in the report.

‘There seems to be significant pent-up demand for solutions to the problems challenging the insurance industry.’ “When these challenges are combined with the growing availability of tech from other sectors with the applicability to the insurance sector,

there’s little doubt investment in insurtech is going to keep booming,” he added. Ironically, overall investment in fintech companies dropped by 47.2 percent to $24.7 billion during 2016 from the record-setting $46.7 billion reported for the previous year. Acknowledging that 2016 was a challenging year for fintech investment, the report explained that investors became more cautious after the Brexit vote in the UK, the US presidential election, a perceived slowdown in China and exchange rate fluctuations across the globe. However, enthusiasm for specific fintech areas helped keep overall interest in fintech high, the report said, pointing to insurtech, along with regulatory tech (regtech), artificial intelligence (AI) and data and analytics. Share this article

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NATIONAL | News & Markets

Why Bundling Policies Is Both Good and Bad for Insurers By Andrew Simpson

arketers love to bundle products for good reason. Bundling encourages consumers to buy more. However, new research suggests it’s not that simple. While bundling gets buyers to buy more, it can also make them less willing to pay more for the additional bundled items and more likely to be frustrated if a bundled item is taken away. University of Chicago Booth School of Business Professor Ayelet Fishbach and Chicago Booth Ph.D. candidate Franklin Shaddy explored bundling in “Seller Beware: How Bundling Affects Valuation.” Their study, which will be published in Journal of Marketing Research, defines bundling as the sale of two or more individual products together, in one seemingly “whole” package. Fishbach and Shaddy conducted six experiments in

online shopping that examined what they refer to as “the asymmetric effect of bundling on valuation.” They created the perception of a bundle in different ways: physically binding items together, placing items in a container labeled as a bundle, displaying items in close proximity, and referring to objects as a bundle. In each experiment, the authors manipulated whether consumers evaluated bundles or the same products offered separately. While they did not use financial services or insurance products, they believe their findings apply to consumers when buying these products as well. The effects might even be stronger.

Asymmetry

Asymmetry applies to the valuation of items offered as a bundle. “Consumers will demand more compensation for and experience greater dissatisfaction from the loss of items from bundles, compared

10 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

to the loss of the same items in isolation.” So if only two of the three pieces of luggage a buyer ordered arrived in time for Christmas, that customer would feel particularly dissatisfied. Although the customer only wanted one suitcase when originally logging onto Amazon, the bundled set of products became one “whole” product in the customer’s mind. Therefore, in losing one of these products, the Christmas gift feels incomplete. However, Fishbach said, “consumers will offer lower willingness-to-pay for and experience less satisfaction from items added to bundles, compared to the same items purchased separately.”

Demanding More

This illustrates the asymmetric effect of bundling on valuation: Despite demanding more for losses from a bundle, consumers are not willing to pay more for additional items added to bundles. Likewise, adding an item to a bundle does not excite consumers as much as losing an item from a bundle frustrates them. This disparity could change the way marketers approach bundling products and services for consumer purchases.

Insurance Bundles

The professors predict their research on bundling would hold for financial services products, as in insurance where personal lines insurers frequently give discounts to those buying both home and auto coverages. “Bundle discounts are very prevalent in this industry," Shaddy said. “This means that the expectation of price differ-

ences between bundled and non-bundled products is probably fairly strong.” He said he thinks there is a “lot of room for the ‘gestalt’ mechanism” to operate in this context and cited an example of an insurer offering a bundle of insurance products that covers all needs similar to a car dealership offering a comprehensive service package. “Knowing that all of your potential issues are taken care of with one company should be compelling,” he said. “This is akin to selling an insurance solution that takes care of everything, whether it’s home, auto, boat, or something else. When it comes to insurance, people probably really value that sense of having a complete solution.” However, because customers probably have a strong impression of these insurance bundles as “wholes,” policyholders are probably sensitive to losing any piece of their coverage. “Once you have an insurance bundle that covers everything, you are likely way more resistant to switching one component, such as auto insurance, to another company, just because you see a better rate, for example. You would ruin the sense of having everything ‘taken care of,’ so to speak, with one company.” Researchers at J.D. Power uncovered some generational differences in consumer enthusiasm for bundling. Nearly half (48 percent) of Gen Y customers unbundle for price and 32 percent unbundle for better coverage, compared with 41 percent and 19 percent, respectively, of Boomers. Share

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West

LA County Supervisors Order Inspection of Dams in Wake of Oroville Emergency

upervisors have ordered inspections of all Los Angeles County dams in the wake of flooding concerns at Northern Californiaâ&#x20AC;&#x2122;s Oroville Dam. The supervisors unanimously approved the order in late February after Oroville Dam looked as if it would produce flooding during heavy rains, INSURANCEJOURNAL.COM

prompting evacuation orders for nearly 200,000 people. A CoreLogic analysis showed roughly 50,047 residential homes could be damaged with an estimated reconstruction cost value of $13.3 billion if the dam were to fail completely. The L.A. Department of Public Works was given 30 days to report on the condition of dams, spill-

ways and debris basins. It also must create a priority list of flood-control projects needing completion. L.A. County operates 14 dams and reservoirs, most of them in the San Gabriel, San Fernando and Antelope valleys. Many were built in the 1920s and 1930s. Copyright 2017 Associated Press. MARCH 6, 2017 INSURANCE JOURNAL | WEST | W1

WEST | PEOPLE

Bruce Carnegie-Brown

Darren Cartwright

James Patterson

Tom Ciardello

Stephen Watson

Bruce Carnegie-Brown will become the chairman of Lloyd’s following a meeting of the Council of Lloyd’s where his appointment as successor to John Nelson was approved unanimously. His appointment also was unanimously supported by the Lloyd’s Franchise Board. The council, on Feb. 21, confirmed that CarnegieBrown, chairman of Moneysupermarket.com Group and vice-chairman of Banco Santander S.A., will take up the position in June of this year. This appointment is subject to formal approval and consent from the Prudential Regulation Authority and the Financial Conduct Authority. Carnegie-Brown has more than 35 years of experience across the financial services industry. He was chief executive for Marsh Europe between 2003 and 2006, non-executive chairman of Aon UK Ltd. from 2012 to 2015 and was also a senior independent non-executive director at the Catlin Group plc between 2010 and 2014. He will be stepping down from his current role as a non-executive director of JLT Group plc, a position he has held since May 2016. He has been chairman of Moneysupermarket Group since his appointment in April 2014 and a vice-chairman of Banco Santander since February 2015. He previously worked at JP Morgan for 18 years across a number of senior roles, ran 3i Group plc’s Quoted Private Equity Division from 2007 and was a senior independent director at Close Brothers Group plc. Between 1981 and 1983 he worked as an investment banker for Bank of America Corp. San Francisco, Calif.-based Woodruff-Sawyer & Co. has named Darren Cartwright claims auditing and consulting practice leader. Cartwright will be responsible for the direction of the claims group, which provides claims management and advice across the areas of property/casualty, management liability and workers’ compensation. Cartwright has nearly 25 years of experience in the claims and workers’ comp industry. He joined Woodruff-Sawyer in 2005. Before that he was an integrated disability manager at PeopleSoft. He was previously a workers’ comp claim consultant at Marsh. Woodruff-Sawyer has offices throughout California, and in Oregon, Washington, Colorado, Hawaii and New England.

Infogain has named James Patterson as Guidewire W2 | INSURANCE JOURNAL | WEST MARCH 6, 2017

head. Patterson is based in San Diego, Calif., and reports to Girish Kannalli, vice president and general manager of the insurance and healthcare business unit. Patterson is responsible for strengthening Infogain’s solutions and services around the Guidewire platform. He has more than 25 years of experience as a product and development strategist. He was previously part of the Guidewire implementation team at Ernst and Young. Prior to E&Y, he spent four years with Guidewire, initially as solution architect implementing Guidewire’s suite of products, later moving to Guidewire’s product management team. Infogain provides Digital Transformation solutions in property/casualty for auto claims, workers’ compensation claims and specialty P/C programs. The members of the Surplus Line Association of California have elected Tom Ciardello, senior executive vice president of Worldwide Facilities LLC, as the chair of the SLA board of directors. Ciardello’s election was finalized after the SLA tallied the final ballots from authorized voting representatives who were unable to attend the SLA annual meeting, which took place Feb. 7, and Feb. 9, 2017, in San Francisco and Los Angeles, respectively. Ciardello succeeds Chris Houska, California managing director of R-T Specialty LLC, who completed his 2016 term as chair and was elected to a seat on the board. Also elected to leadership were Robert Gilbert, underwriting director, Markel West Insurance Services, as vice chair; and Terri Moran, senior vice president, Western Region executive, and construction practice leader, Vela Insurance Services, as secretary/treasurer. Additionally, SLA members elected Tim Chaix of R.E. Chaix and Associates Insurance Brokers Inc., and Hank Haldeman of The Sullivan Group, to the board. Completing the 13-member board are the following who were reelected after serving on the 2016 board: Janet Beaver, Tokio Marine HCC Denis Brady, Burns & Wilcox Brokerage Rupert Hall, M.J. Hall & Company, Inc. Davis Moore, Worldwide Facilities, LLC Pam Quilici, Crouse & Associates Insurance Services of Northern California Inc. Les Ross, Wholesale Trading Insurance Services LLC

continued on page W20 INSURANCEJOURNAL.COM

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Property Liability Workers’ Comp Business Auto

WEST | News & Markets

California DIR Suspends 7 Workers’ Comp Medical Providers for Fraud

alifornia’s Department of Industrial Relations and its Division of Workers’ Compensation has suspended seven medical providers from participating in the state’s workers’ comp system. The providers were convicted of workers’ comp fraud or have been suspended from the Medicare or Medicaid programs for medical fraud, and they have filed more than 8,500 liens in California’s workers’ comp system with a total of claim value of at least $59 million, according to the DIR. The actions by the DIR were made possible by Assembly Bill 1244, which passed last year. The bill requires the DWC administrative director to suspend any medical provider, physician or practitioner from participating in the workers’ comp system when convicted of fraud. The suspended providers and their convictions providers are: Philip Sobol, an orthopedic surgeon in Los Angeles convicted in Santa Ana’s federal District Court for insurance mail fraud and other charges connected to receiving workers’ comp kickbacks. Sobol has nearly 6,000 active workers’ comp liens with an estimated total claim value

of more than $42.7 million. Jason Hui-Tek Yang, a psychiatrist in Pasadena convicted in Riverside County Superior Court for his involvement in an insurance fraud conspiracy, including the referral of patients for unnecessary care to justify workers’ comp billing. Yang has more than 2,000 active workers’ comp liens with an estimated total claim value of more than $13.7 million. Alan Ivar, a chiropractor in Costa Mesa convicted in Santa Ana’s federal District Court for referring patients to a Long Beach hospital in a kickback scheme. Ivar has more than 400 active workers’ comp liens with

an estimated total claim value of more than $2.5 million. Thomas M. Heric, a physician in Los Angeles convicted in Sacramento’s federal District Court for health care fraud related to the Medicare and Medicaid programs who was suspended from those programs. Carlos Arguello, a Chula Vista businessman convicted in San Diego’s federal District Court for his role in a kickback scheme that involved referring injured workers to specific chiropractors for medical care regardless of their injuries. Daniel Dahan, a former chiropractor in Long Beach sus-

pended from the Medicare and Medicaid programs who surrendered his license to practice. Boniface Okwudili Onubah, a former neurologist in Marina Del Rey suspended from the Medicare and Medicaid programs whose medical license was revoked. Suspension notices were issued to the providers in January. The suspension becomes effective 30 days later if the provider does not appeal the action. An additional three providers who were notified of the pending suspension have filed appeals of the action. Those appeals are in process.

Later Last Call Times Proposed by California Lawmaker

losing times at bars in California could go later if proposed legislation there gets passed. The bill proposed by state Sen. Scott Wiener, a Democrat who represents San Francisco, would let municipalities set

their own last call times. The Los Angeles Times reported that communities could decide to go as late as 4 a.m. Currently, the last call time across the state is 2 a.m. Wiener’s predecessor in the Legislature, former Sen. Mark

W4 | INSURANCE JOURNAL | WEST MARCH 6, 2017

Beyond Security®

“It Takes Discipline”

Marty Hacala Fitness Enthusiast General Star President & CEO

“Rolling out of bed at 5am every morning to work out requires discipline. It’s my way of getting the very most out of my busy day. “At General Star, we strive to get the very most out of our wholesale broker relationships. As a member of the Berkshire Hathaway family of companies, our financial strength is unsurpassed. But it’s our disciplined approach to building and maintaining profitable partnerships with a select group of brokers that drives us. “Discipline: Whether sticking with an early morning exercise regimen or standing firm with a limited number of valuable wholesale broker relationships, it remains the cornerstone of our success.” To locate the General Star broker nearest you, visit our website at www.generalstar.com.

© 2015 General Star National Insurance Company is licensed in the District of Columbia, Puerto Rico and all states. General Star National Insurance Company has its principal place of business in Stamford, CT and operates under NAIC Number 0031-11967. Insurance is placed with General Star National Insurance Company by licensed producers. General Star Indemnity Company is an eligible surplus lines insurer in all states, the District of Columbia, Puerto Rico, and the Virgin Islands. It has the status as an unlicensed insurer in California and operates under NAIC Number 0031-37362. Insurance is placed with the General Star Indemnity Company by licensed producers and, for risk that qualify, by licensed surplus lines brokers. Atlanta 404 239 6777

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WEST | News & Markets

California’s Central Coast Accounting for More of State’s Comp Claims, Report Shows

alifornia’s Central Coast has been accounting for more of the state’s workers’ compensation claims recently, a report issued in late February shows. The California Workers’ Compensation Institute has issued a new Regional Score Card, the sixth in its research series that looks at workers’ comp claims experience in eight regions of California. The CWCI Score Card provides detailed data from more than 127,000 claims for 2005 to 2015 injuries filed by residents of the Central Coast, which encompasses Ventura, Santa Barbara, San Luis Obispo, Monterey, and Santa Cruz counties, and compares the results to those from 1.7 million claims from the rest of the state. For the 11-year span covered by the report, claims by Central Coast workers represented 6.7 percent of all California workers’ comp claims and 6.3 percent of all claim payments. However, with a shift in the state’s

population and job market in recent years, the proportion of claims from the region has increased. Central Coast workers accounted for 7.7 percent of all California job injury claims in accident year 2015, the report shows. Average payments on these claims — almost a quarter of which involved agricultural workers — have shown recent increases as well. For example, average 36-month paid losses on Central Coast claims rose from $26,194 for the years between 2005 to 2007 to $35,874 for 2011 and 2012 claims. Other findings in the report show: • Time lags from the date of injury to employer notification, claims administrator

notification and initial treatment are significantly less on the Central Coast than in other regions, and claim durations are shorter; • At 24 months post injury, Central Coast claims average more medical visits for evaluation/ management, physical therapy, and chiropractic care, while the biggest difference in medical payments is in surgery, where Central Coast claims at the two-year benchmark average 11.2 percent more than

in the rest of the state; • Four of the top 10 drugs prescribed to Central Coast injured workers are opioids based on 2014 payments. Vicodin, Oxycodone, Tramadol, and Fentanyl together account for 20 percent of the region’s total drug spend. Recent CWCI Score Cards examined claims from Los Angeles County; the Inland Empire/Orange County; the Central Valley; the Bay Area; and San Diego County.

Colorado Wind Storm Deadly, But Not So Costly

wind storm that recently tore through a Colorado city was deadly, but less costly than expected. The Jan. 9 wind storm caused downed trees and widespread power outages, but it didn’t make the list of Colorado Spring’s most cost-

ly or destructive disasters. Two people have died from injuries received during storm, however, making it among the deadliest to hit Colorado Springs. The hurricane force winds didn’t cause enough property damage to make the

W6 | INSURANCE JOURNAL | WEST MARCH 6, 2017

Rocky Mountain Insurance Information Association’s

list of costly disasters, as the association’s Executive Director Carole Walker says a summer hail storm did. Walker says disasters must reach $25 million in insurance claims before being tracked by RMIIA. Copyright 2017 Associated Press. INSURANCEJOURNAL.COM

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WEST | News & Markets

Patient Complaints Can Identify Surgeons Who Are Higher Claims Risks

ecording and analyzing patient and family reports about rude and disrespectful behavior can identify surgeons with higher rates of surgical site infections and other avoidable adverse outcomes, according to a study led by Vanderbilt University Medical Center investigators in collaboration with six other major academic health systems. The study, published online in the journal JAMA Surgery, examined de-identified data from the National Surgical Quality Improvement Program for 32,125 patients treated at one of seven health systems. The outcome data were correlated with patient and family reports of disrespectful and

rude surgeon behavior as documented by the hospitals’ Offices of Patient Relations for a period of two years prior to the targeted surgical procedures. Unsolicited patient complaints have been used since 2000 in the Patient Advocacy Reporting System to identify clinicians who have high risk for medical malpractice claims. Currently, the PARS program is used by more than 140 hospitals in the United States, including those affiliated with the study collaborators. This study builds on more than 20 years of Vanderbilt research experience, according to lead author William Cooper, M.D., MPH, Cornelius Vanderbilt Professor of Pediatrics and director of the

W8 | INSURANCE JOURNAL | WEST MARCH 6, 2017

Vanderbilt Center for Patient and Professional Advocacy. Cooper said Dr. Gerald Hickson, one of the co-authors, conducted groundbreaking work that proved that physicians with more than their fair share of unsolicited patient complaints are at higher risk for medical malpractice claims. “We recognize that making families unhappy increases the likelihood of families filing suit in the face of any adverse outcome,” said Cooper. Complaint records can identify surgeons with higher rates of surgical site infections and oth-

er avoidable adverse outcomes. What this study reveals is that those same high-risk physicians not only make patients and families unhappy, their disrespectful behaviors also impact the ability of other surgical team members to do their work. Patients receiving care from surgeons attracting the highest numbers of patient complaints experienced nearly 14 percent more surgical and medical complications in the 30 days following procedures than patients seeing surgeons perceived as respectful. Complications could include surgical site infections, pneumonia, renal conditions, stroke, cardiovascular conditions, thromboembolic conditions, sepsis and urinary tract infections. There was only a 14 percent difference in adverse outcomes between patients cared for by the most respectful and least respectful surgeons. But if those numbers are distributed across the United States where 27 million surgical procedures are performed each year, that could represent more than 350,000 surgical site infections, urinary tract infections, sepsis — “all kinds of things that we know can be avoided when surgical teams work well together, said Gerald Hickson, M.D., senior vice president for Quality, Safety and Risk Prevention at VUMC. “We need to reflect on the impact patients and families experience from these avoidable outcomes,” Hickson

‘We recognize that making families unhappy increases the likelihood of families filing suit in the face of any adverse outcome.’

continued on page W20 INSURANCEJOURNAL.COM

WEST | News & Markets

Wraight Named Insurance Journal Academy Director

atrick Wraight has been named the director of the Insurance Journal Academy of Insurance, a leading property/casualty insurance learning center that is part of the Wells Media Group. Wraight, an Army veteran, comes to the Academy with more than 12 years of insurance industry training and underwriting experience. Wraight Patrick Wraight said he will be making some changes at the Academy but first he is surveying current Academy members and prospective students to get their feedback. (The online customer survey is open to anyone interested in insurance education.) “I want the Academy to be the trusted educational partner for the insurance industry,” said the new Academy director. Wraight most recently spent five years as senior training specialist for Florida’s largest property insurer, Citizens Property Insurance Corp. At Citizens, Wraight spearheaded a company-wide insurance education program, created an underwriter assessment tool and expanded his role beyond trainer to learning consultant. He has also served as a part-time faculty member for the National Alliance for Insurance Education and Research, creating and delivering a class on commercial general liability Before joining Citizens in 2005, Wraight worked at a Cortland, New York-based managing general agency, McNeil & Co. Inc., for seven years, first as an underwriter for specialty insurance programs and as a policy analyst. He then worked as an underwriter trainW10 | INSURANCE JOURNAL | WEST MARCH 6, 2017

er and established a new underwriter training program. Wraight explained his philosophy and plans for the Academy in a recent interview:

How has your experience prepared you for running the Academy?

My background as a consumer of educational programs in the insurance industry has given me the perspective of the participant. I know what I am looking for in a course that provides me value for my time and money. However, I think that what has prepared me best for this role was that in my prior role as a trainer and training consultant for a property insurer I had the liberty to explore and assess the customers’ needs and develop a training plan that met their business objectives. This provided a way for them to measure the ROI in learning and tie learning to the success of their core business.

What is your approach/philosophy on education and training?

My approach is simple. I want the Academy to be the trusted educational partner for the insurance industry. We will provide relevant content that keeps our customers up to date on insurance topics. We will use innovative learning technologies and techniques to engage our partners in training.

Wraight worked at Citigroup in Florida from 2002 to 2005, after he completed nine years of service in the U.S. Army as a training and retention non-commissioned officer (NCO). As an Army NCO, he worked in various locations helping soldiers formulate career plans and determine eligibility for retention. He also established a new junior retention NCO training program. Wraight is a graduate of Trinity Baptist College in Jacksonville, Fla., and holds several insurance designations including the Certified Insurance Counselor (CIC), Associate in Commercial Underwriting (AU), Associate in General Insurance (AINS) and Certified Insurance Services Representative (CISR). Wraight succeeds Christopher J Boggs, who has pursued another opportunity. The Academy, founded in 2010, provides live online training and on-demand webinars and classes taught by more than 65 of the industry’s leading educators, consultants, writers and executives. Its current library holds more than 600 different courses on coverages, management, sales and risk management. The Academy also offers books and insurance skills testing. The Academy is a division of San Diego-based Wells Media Group, which further serves the property/casualty insurance industry through its digital and print publications that include Insurance Journal, Carrier Management, Claims Journal, MyNewMarkets and InsuranceJournal TV.

I want the Academy to be the trusted educational partner for the insurance industry.

What can Academy users expect?

Users can continue to expect relevant content presented in an engaging way by some great presenters. They can also expect to see some things change. They have to if we’re going to continue to innovate. People will always have limited time, money and attention, and we are looking to respond with resources in a way that maximizes the impact for the customer.

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Workers’ Comp

Who Self-Insures for Workers’ Compensation in California?

By Mu-Sheng “Shane” Chang

orkers’ compensation liability is one of the main commercial lines in the U.S. property/casualty market. In order to manage this loss exposure, employers have two choices: they can either buy market insurance or implement an alternative risk-financing technique in the form of self-insurance. In lieu of buying an insurance policy from an insurer, employers may use self-insurance to retain their workers’ comp risk, take a key role in loss control activities and exercise greater control over their claims. In 2011, self-insured employers paid $24 out of every $100 of WC benefits paid in the U.S. Self-insurance is most prevalent in WC risk management — and it accounts for about three quarters of the total alternative risk transfer market. Self-insurance offers some potential benefits over market insurance. It is believed by self-insured employers that the former should be cheaper than the latter over the long run. However, the use of this alternative risk transfer technique in the form of self-insurance is linked to the industry with which the employers are affiliated. Understanding self-insurance choice in different industries is helpful for insurance agents and brokers to develop their marketing strategies. California has the largest workers’ comp W12 | INSURANCE JOURNAL | WEST MARCH 6, 2017

self-insurance program in the nation. Total vices. In other words, about one-in-two workers’ comp benefits paid in the state in workers of self-insurers is employed by 2011 reached $10.5 billion, more than twice retailers and healthcare providers. what was paid in New York, which ranked The manufacturing and agriculture second in workers’ comp benefits paid. industries rank third and fourth when it According to the Office of Self Insurance comes to the number of employees of all Plans in the California Department of self-insured employers. Roughly 8 percent Industrial Relations, 9,849 California of all covered workers are affiliated with employers were actively self-insured as manufacturing, and 7.5 percent are with of Jan. 1, 2014. In the aggregate, one out agriculture. of four California workers is covered by The preference for self-insurance for self-insured workers’ comp. Roughly workers’ comp liability is particularly continued on page W14 53 percent of employees of self-insured employers are in the priTable 1. California Employees of Private Active vate sector. It is important to Self-Insured Employers by Industry understand why firms Employees of choose to self-insure NAICS Industry self-insurers Ratio because this decision 11 Agriculture, Forestry, 155,500 7.5% process offers an exam Fishing and Hunting ple of how firms make 21 Mining, Quarrying, and Oil 1,038 0.0% and Gas Extraction choices in the midst of 22 Utilities 64,810 3.1% uncertainty. That is why 23 Construction 107,148 5.2% it is valuable to examine 31 Manufacturing 169,990 8.2% the attributes of private 42 Wholesale Trade 8,354 0.4% employers that forgo 44 Retail Trade 601,433 28.9% market insurance in 48 Transportation and Warehousing 72,230 3.5% favor of self-insurance 51 Information 65,020 3.1% for their workers’ comp 52 Finance and Insurance 9,184 0.4% liability. 53 Real Estate and Rental 2,769 0.1% In California, retail and Leasing trade has the largest 54 Professional, Scientific, - 0.0% number of employees and Technical Services covered in self-insurance 55 Management of - 0.0% programs as shown in Companies and Enterprises Table 1. 56 Administrative & Support 83,595 4.0% & Waste Management More than 600,000 61 Educational Services 45,383 2.2% workers in the retail 62 Health Care and Social Assistance 525,285 25.3% trade industry are 71 Arts, Entertainment, 38,265 1.8% employed by active and Recreation self-insured employers 72 Accommodation and 67,129 3.2% in the private sector in Food Services the state, accounting 81 Other Services (except 61,675 3.0% for nearly 30 percent Public Administration) of employees of all Total 2,078,808 100% self-insurers. Another Note: The ratio is calculated by the number of employees of self-insurers in an industry based on the North American Industry Classification System 25 percent of workers (NAICS) relative to the total employees of self-insurers in all industries. A dash represents no self-insurers in that industry. of all self-insurers are Source: California Department of Industrial Relations, Office of Self Insurance Plans, an ad hoc data offer as of Jan. 1, 2014. employed in health serINSURANCEJOURNAL.COM

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Idea Exchange

Workers’ Comp

continued from page W12

observed in some industries, such as utilas 0.60 for all industries, excluding mining In the face of high nonfatal workers’ ities, retail trade and healthcare, accordand utilities since each of them accounts comp injury incidence rates that contribing to the proportion of total workers for less than one percent of the total workute to high premiums for workers’ comp employed by self-insurers in each industry force in California. insurance, employers in the retail trade, based on the North American Industry Nonfatal incidence rates are indicative healthcare, construction, manufacturing Classification System. of the levels of occupational injury risk and transportation industries are more As shown in Table 2, the vast majority to which employers in the same industry likely to choose self-insurance over market of employees in the utilities industry are are exposed. Employers in the industries insurance in hope of dealing with workers’ covered by self-insured employers. Selfwith higher levels of work-related injuries comp liability more effectively. insurers hire roughly 40 percent of the and illnesses are prone to an alternative Essentially, an employer’s decision to total employees in the retail industry and risk financing technique for their workers’ self-insure can be influenced by several 30 percent of the total workforce in the comp risk. factors, such as firm size, industry affilhealthcare industry. iation, workers’ comp Table 2. California Self-Insurance and Nonfatal Roughly one-ininsurance costs and the five employees in the self-insurance pattern in Incidence Rate by Industry construction, manuan industry. The self-inNAICS Industry Employees in Self-insured Nonfatal facturing, and trans CA a employee incidence surance marketplace in portation industries California, the largest in proportion b rate c is covered by self-inthe nation, indicates that 11 Agriculture, Forestry, - - Fishing and Hunting surance programs for self-insurance is most 21 Mining, Quarrying, and Oil 24,459 4% 2.1 workers’ comp losses. commonly used in the and Gas Extraction Nevertheless, the retail industry. 22 Utilities 75,000 86% 2.8 self-insurance tech Some big retailers — 23 Construction 566,131 19% 3.7* nique is barely used or such as Target Corp., 31 Manufacturing 1,138,370 15% 4.3* not accepted at all by Macy’s Inc., Costco 42 Wholesale Trade 806,841 1% 3.3 the employers in some Wholesale Corp., Safeway 44 Retail Trade 1,539,979 39% 4.0* industries, such as Inc., Home Depot, and 48 Transportation and 439,204 16% 4.9* finance and insurance, Victoria’s Secret — have Warehousing real estate and profesput a self-insured work51 Information 537,357 12% 1.4 sional services. The ers’ comp program in 52 Finance and Insurance 586,829 2% 0.7 acceptance of self-inplace to mitigate workers’ 53 Real Estate and Rental and 274,643 1% 2.9 surance as a risk-ficomp losses. Risk attitude Leasing nancing tool varies toward self-insurance 54 Professional, Scientific, 1,128,912 0% 0.9 and Technical Services considerably from one among these companies 55 Management of Companies 285,828 0% 1.1 industry to another. reflects that they would and Enterprises Those industries rather take financial risk 56 Administrative & Support 1,167,386 7% 2.8 with nonfatal incion their own by self-in & Waste Management dence rates higher suring than transfer it to 61 Educational Services 381,636 12% 1.9 than the national insurance companies. 62 Health Care and Social 1,742,808 30% 4.8* average are positively Assistance correlated with a larg- 71 Chang is an associate proArts, Entertainment, 293,032 13% 4.6* and Recreation er proportion of total fessor of finance and insurance 72 Accommodation and 1,398,509 5% 3.8* workers employed by in the David Nazarian College Food Services self-insured employof Business and Economics 81 Other Services 549,507 11% 2.5 ers, according to at California State University (except Public Administration) Table 2. Northridge. He received his Total 12,936,431 3.4 d In particular, the Ph.D. in risk, insurance, and Note: a. The data on the number of employees are based on 2012 County Business Patterns (NAICS), the latest database, from the U.S. Census Bureau. The agriculture industry is not included coefficient of correlahealthcare management from due to conflicting data from different sources. The number of employees in the utilities industry is tion between nonfatal Temple University and his MBA in the range of 50,000 and 99,999. b. The self-insured employee proportion equals the number of workers hired by active self-insurers as a percentage of the total number of workers at the industry incidence rates and in international business from level. c. The nonfatal incidence rates represent the number of injuries and illnesses per 100 full-time workers. d. This value denotes the national average in the private sector. The asterisk (*) indicates self-insured employee the University of Southern the industry experiences above average nonfatal incidence rates. proportions is as high California. Source: Bureau of Labor Statistics. W14 | INSURANCE JOURNAL | WEST MARCH 6, 2017

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WEST | News & Markets

Mentor-Driven Global Insurance Accelerator Is Enjoying its Own Growth-Spurt By Stephanie K. Jones

three-year-old Des Moines, Iowabased business startup accelerator focused solely on the global insurance industry has developed into a streamlined organization with more applicants, more investors and more mentors than in past years, its managing director says. “We’ve matured as an organization,” said Brian Hemesath, managing director of the Global Insurance Accelerator (GIA), which was created in 2014 as an initiative of the Greater Des Moines Partnership. Financially backed by insurance carriers, GIA held its first startup class, or cohort, in 2015. Each year GIA selects six applicants to participate in the 100-day program in which budding companies work with mentors to develop their business model, which must serve the insurance industry in some way. The startups receive $40,000 in seed money and for the first time this year, housing for the duration of the program. At the end of the 100 days, each company presents its business plan at the annual Global Insurance Symposium in Des Moines. This year, “demo day” is slated for April 26. The GIA received its initial funding from seven Iowa-based insurance companies. It now boasts 10 investing insurers, two of which are located out of state. Hemesath said he expects to add even more carrier-investors for next year’s cohort, including additional insurance companies from outside Iowa. The mentor pool, which is populated with insurance professionals from all sectors of the industry, has also grown and diversified. There are now 110 insurance-centric mentors from across the United States — plus a few from other countries — working with the program,

Hemesath said. “We’ve garnered a lot of interest in what we’re doing and the companies are realizing that our program is not only really easy to support … but we’ve been able to attract some really great talent,” he said Grinnell Mutual Insurance Co., headquartered in Grinnell, Iowa, and six other Iowa insurers each committed to providing $100,000 in funding each year for at least three years. Grinnell President and CEO Larry Jansen was an enthusiastic supporter of the program from the beginning. “I had two ideas when I went with this. One was that if they could bring some new ideas to us as a company, to help us produce and grow more business from a technology standpoint, I thought that would be a great situation for us. The other piece was if I could find some companies that we can invest in from an investment standpoint, almost like a venture capitalist, we would do that, as well, to help grow revenue in the company,” Jansen said. So far Grinnell has invested in a startup from each of the previous two years — Drive Spotter from the 2014 class, which is developing technology and telematics for the trucking industry, and InsuranceSocial.Media from the 2015 class, which is developing social media platforms for agencies. “The Global Insurance Accelerator, to me, fit exactly in my vision of energizing [Grinnell], moving us forward, growing this company to a billion-dollar company in the next decade, and focusing on technology,” Jansen said. He added that Grinnell would continue its support of the program going forward.

‘We really want them to go off and be successful, wherever home is.’

W16 | INSURANCE JOURNAL | WEST MARCH 6, 2017

More Applicants, Greater Maturity

Hemesath said the number of applicants to the program has steadily increased, along with the maturity level of the startups, in

Brian Hemesath

Nabil Aidoud terms of the products they’ve developed. He cited one of this year’s participants, Boston-based InsuranceMenu, which has created a platform for distributing employee benefits to the small business market, as a prime example. “They’ve been around now two years, and they have paying customers, are making revenue and have a real product that’s in the market. We didn’t have a company like that two years ago when we started and we have three now this year. Three of our six have products in the market generating revenue,” Hemesath said. A fourth participant has a marketable product and the final two are at the early concept stage, “but the concept was fascinating enough to us that we wanted to

continued on page W18 INSURANCEJOURNAL.COM

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bring them in,” he said. Nabil Aidoud, one of the founders of InsuranceMenu, said that like the insurance industry itself the GIA as a startup accelerator is unique. “Insurance is a complicated industry with a lot of stakeholders,” and the GIA has “done an amazing job of bringing these different stakeholders together who traditionally don’t collaborate that well, and have created this little sort of mini ecosystem built around attracting startups, and innovating around that. You’re not going to find that in a lot of the other accelerators across the country or across the world,” he said. The InsuranceMenu product aims “to transform how employee benefits are distributed to the small business market,” Aidoud said. With 48 million Americans working for small businesses, those firms typically need an independent agent to help guide them through the decision-making process involved providing benefits to their employees, he said. Unfortunately, “because of the fragmentation at the small business market level, as well as the agent level, not a whole lot is standardized. This is where InsuranceMenu comes in. We make it easier for the employer. We make it more profitable for the agent and we bring the carriers closer to this target segment.” The product is geared toward both agents and carriers, and to “helping the agent community work more effectively with the carrier community,” he said. While there may be an assumption that once a company gets a product to the market it’s good to go, the truth is once the product is marketable a whole new set of questions arise. That’s what makes the GIA’s mentoring program so effective, Aidoud said. “It’s really amazing to be able to ask questions without having to worry about people perceiving you as being immature or not ready for full-time production. To be able to talk to potential customers … about my long-term distribution model and get W18 | INSURANCE JOURNAL | WEST MARCH 6, 2017

their take, that’s a very privileged position to be in,” he said. He’s been paired with mentors from both the carrier side of the industry and the distribution side. “They are helping me not only by giving me their perspective, but they’re also connecting me to other experts. … What’s great is that over the course of the program, we get to work with mentors who help us refine our business model, refine our pitch, get us to think about the important things,” Aidoud said.

Retaining Talent

While it’s not the aim of the program,

some of the talent attracted by the GIA has remained in Des Moines, Hemesath said. Including the current cohort, the GIA has fostered 18 companies, Hemesath said. Of the 12 that have completed the platform, “three of those are in Des Moines, and two of those relocated to be here — one from California and the other one from Germany. Aidoud said InsuranceMenu plans to establish a presence in Des Moines, as well. In addition to the three insure tech startups associated with the GIA that are now located in Des Moines, there are at least six others that are not associated with the accelerator that are headquartered in the city, as well. In addition, eight out of the 12 companies that participated in the GIA over the past two years are making money in the insurance industry or an affiliated industry, and that’s the important thing, Hemesath said. “We really want them to go off and be successful, wherever home is.”

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WEST | PEOPLE continued from page 20 Gerald Sullivan, The Sullivan Group

SLA members also reelected as mediator Hon. Harry Low, a former insurance commissioner and retired presiding justice of the California Court of Appeal. All individuals elected to the 2017 board will serve until balloting is completed following the next SLA annual meeting in February 2018. Based in San Francisco, the SLA operates as a self-governed private organization. Appointed by the Commissioner in 1994, the association serves as the statutory surplus line advisory organization to the California Department of Insurance and facilitates the state’s capacity to monitor and direct surplus line brokers’ placements of insurance with eligible nonadmitted insurers. San Diego, Calif.-based Cavignac & Associates has named Stephen Watson a junior account executive. Watson’s area of focus will be on professional liability. Watson previously was employed as assistant manager of Walmart in State College, Pa., where he led, trained and

continued from page W8

said, noting that conservative economic estimates place the cost of addressing the excess surgical complications to more than $3 billion annually. “Patients and their families are uniquely positioned to observe physician behavior and performance,” said Cooper. “And analysis of their stories provides insight into how physicians who interact with patients with disrespect and rudeness might also interact with other medical professionals and how those interactions could impact patient care. Team members who experience disrespect may be less likely to speak up, ask for help, or see changes in patients’ conditions.” He cited an example of a surgeon speaking disrespectfully to an anesthesiologist during a procedure. The anesthesiologist may become reluctant to speak up the next time the surgeon and the anesthesiologist work togethW20 | INSURANCE JOURNAL | WEST MARCH 6, 2017

managed a team of associates. Prior career experience includes administrative assistant for Levitzacks, Certified Public Accountants, in San Diego. Cavignac & Associates is a risk management and commercial insurance brokerage firm. Beecher Carlson Insurance Services LLC is expanding its West Coast operations with the appointment of Keith Newell as its managing director. Newell will be primarily based in the firm’s Woodland Hills, Calif., office. His focus is on new business strategies for the West Coast and he reports directly to Scott Davis, Beecher Carlson’s president of property/casualty. Newell has 29 years of experience in the insurance and surety industry. His previous positions include senior vice president at Hub International Ltd., senior vice president and Heffernan Insurance Brokers and president and managing director at Allied North America. Beecher Carlson Beecher Carlson is a risk management broker and is a wholly-owned subsidiary of Brown & Brown Inc.

er. “Similarly, if a nurse’s reminder to perform a safety procedure such as a surgical time-out is repeatedly ignored, the nurse may be less likely to continue to share his or her concerns with the surgeon,” he said. Study co-author Roger Dmochowski, M.D., executive director of Risk Prevention for the Vanderbilt Health System, and a urologic surgeon, suggested that surgeons who have trouble interacting with fellow team members or patients will continue with behaviors perceived to be disrespectful until a fellow professional or medical leader has the courage to bring their behavior to their attention. Nationwide, 80 percent of the more than 1,600 physicians and surgeons who have received peer-delivered interventions through the PARS program respond favorably, reducing subsequent complaints of disrespectful behavior and low-

Socius Insurance Services Inc. has hired Cassandra Grace to join its management and professional liability practice as assistant vice president. Grace is based in Phoenix, Ariz. She has more than a decade of experience in the insurance industry, specifically in management and professional liability. Socius Insurance Services is a property/casualty and management liability wholesale broker based in San Francisco. Wholesale Trading Insurance Services LLC in San Francisco, Calif., has named Chris Kiley managing director and property broker. Kiley has more than 20 years of property broking and underwriting experience with expertise in real estate and specialty property. Kiley joins WTIS from AmWins Group Inc. where he was an executive vice president and served in various other capacities, including national property practice leader for several years. WTIS is a privately held wholesale insurance broker.

ering their malpractice claim experience. “Our findings reinforce the importance of giving professionals who are associated with a disproportionate share of patient complaints the opportunity to see themselves in the mirror, the way other team members see them,” said Cooper. “Most develop insight and self-regulate. Physicians are lifelong learners and respond if their medical colleagues have the courage to provide feedback in an organized, stepwise approach.” Study collaborators include physician-investigators and medical leaders from VUMC, as well as researchers from University of Pennsylvania, Stanford University, University of California-Los Angeles, University of North Carolina, Emory University and Wake Forest University. Source: JAMA Surgery INSURANCEJOURNAL.COM

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Cybersecurity Safeguards

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119,000 The number of American Express customers compromised by hacker Mihran Melkony, who was convicted by a federal jury in Sacramento, Calif., of breaking into the accounts and handing off funds to Russia.

$100 MILLION

The amount at stake in a federal lawsuit against Lance Armstrong after a federal judge refused to block the 2010 case stemming from his performance-enhancing drug use. The lawsuit was filed by Armstrong’s former teammate Floyd Landis. The federal government joined in 2013 after Armstrong admitted he cheated to win the Tour de France seven times. INSURANCEJOURNAL.COM

“These strong, first-in-the-nation protections will help ensure this industry has the necessary safeguards in place in order to protect themselves and the New Yorkers they serve from the serious economic harm caused by these devastating cyber-crimes.” — New York Governor Andrew Cuomo, announcing

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depend on the recommendations of their engineers and that he had not known of the warnings about the risk of catastrophic flooding below a major Northern California dam.

Hail Claim Litigation

The amount of loss to the federally funded crop insurance program that Wisconsin farmer Mark E. Johnson admitted to causing by misreporting corn and soybean production in 2013 and 2014. He was sentenced to one year of probation, fined $20,000, and ordered to pay $228,523.35 in restitution.

800,000

“With the majority of our policyholders who filed litigation, we were never notified of a dispute before the lawsuit was filed. That is certainly an indication to us that attorneys rather than homeowners are driving the large increase in hail claim litigation across the state. A number of homeowners who we insure have told our adjusters they were solicited at their home to sign documents to have someone assist them with an insurance claim.” — Greg Farnik, litigation counsel for the Republic

Group affiliates in Texas. The insurance industry in Texas is seeking legislation that would deter attorney-driven property lawsuits against insurers.

A Grassroots Effort

“In the smaller communities, it’s hard to get volunteers in the door. … It’s a grassroots effort.” — Minooka (Illinois) Fire Chief Al Yancey speaks to

the problems that small Illinois communities are having with recruiting and retaining volunteer firefighters.

The amount of estimated damage to two Maine condominium buildings destroyed by a fire at Saddleback Mountain. The Associated Press reported Rangeley Fire Rescue Chief Tim Pellerin said two other buildings were saved, and no injuries were reported during the fire.

InsuranceJournal.com

Poll

What will happen if Donald Trump pulls the U.S. out of the Paris climate agreement? 46.84% Pulling out of the agreement would be disastrous for the climate. (111 votes) 22.36% Breaking an agreement with the rest of the world is bad form. (53 votes) 6.75%Go Trump, go. The agreement is bad for business. (16 votes) 24.05% Nothing. Climate change is a hoax. (57 votes) Total Votes: 237

MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 11

NATIONAL | Business Moves been named president of USI Columbus Employee Benefit Division. Terms of the transaction were not disclosed. Headquartered in Valhalla, N.Y., USI is a local and national insurance brokerage and consulting firm, delivering property and casualty, employee benefits, personal risk and retirement solutions throughout the United States.

Renaissance Alliance Insurance Services, Peter M. Bakker Agency Inc. Arthur J. Gallagher & Co., Eagle Insurance Agency LLC

Arthur J. Gallagher & Co. has acquired Eagle Insurance Agency LLC (Eagle) in Syracuse, N.Y. Terms of the transaction were not disclosed. Arthur J. Gallagher & Co. is an international insurance brokerage and risk management services firm headquartered in Itasca, Ill. Formed in 2001, Eagle is a retail insurance broker and consultant providing a range of property/casualty coverages and services to risk management clients throughout New York and Massachusetts, with a focus on the healthcare, energy, technology and manufacturing industries. Founder Timothy George and his associates will continue to operate from their current location as a satellite of Arthur J. Gallagher & Co.’s Albany office.

Eastern Insurance Group LLC, Chase and Lunt Insurance Agency LLC Eastern Insurance Group LLC has acquired the assets

of Chase and Lunt Insurance Agency LLC. Eastern Insurance Group is a wholly owned, Natick, Mass.-based subsidiary of Eastern Bank. Chase and Lunt Insurance Agency is a full-service insurance agency located in Newburyport, Mass. Chase and Lunt’s staff of 28 employees, including its president James (Jay) J. Howlett III, became Eastern employees on February 1. Eastern will rebrand Chase and Lunt’s office in Newburyport over the next six to 12 months and has plans to continue to expand in the North Shore and New Hampshire. The deal marks the 38th acquisition for Eastern Insurance.

Accelerated Benefits, USI Insurance Service

Accelerated Benefits in Ohio has joined forces with USI Insurance Services (USI). Founded in 1986 by Thomas P. Wagoner and headquartered in Dublin, Ohio, Accelerated Benefits and its employees will remain at the current Dublin location. Wagoner has

12 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

Renaissance Alliance Insurance Services has acquired the Peter M. Bakker Agency Inc. of Avon, Conn. Renaissance Alliance Insurance Services is an independent insurance agency collaboration based in Wellesley, Mass. The acquisition is set to create a Connecticut-based hub for Renaissance Alliance, furthering its commitment to growing its member network and strengthening its service capabilities to independent agencies in New England and elsewhere. Among the reasons for the acquisition, Renaissance Alliance President Bruce Cochrane cites the Bakker Agency’s leadership, employees, reputation in the industry, balanced portfolio of personal and commercial clients and underwriting profitability. Going forward, The Bakker Agency will remain an independent agency under the chairmanship of Cochrane. Peter M. Bakker Sr. will be special assistant to the chairman, and John T. Maschi will remain as president of the agency,

reporting directly to Cochrane. The Bakker Agency will continue managing the New England Insurance Alliance (NEIA), a 15-member independent insurance alliance.

Insgroup, The Fawcett Group Houston-based Insgroup Inc. (Insgroup) has acquired The

Fawcett Group (Fawcett), a firm specializing in employee benefit plan brokerage and consulting to emerging and mid-market businesses, as well as not-for-profits. Jan Fawcett-Heilman, owner of The Fawcett Group, joined Insgroup as a vice president in its Employee Benefits Practice, with responsibility for consulting with existing clients and for new business development. David Czarny, who has worked with Fawcett for more than 15 years, also joined Insgroup as an account executive and will continue to work alongside Fawcett-Heilman, servicing her current clients. Fawcett-Heilman has more than 25 years of experience. She is a Chartered Benefit Consultant designee who likes to collaborate, design, and revitalize employers’ benefit plans. Insgroup, based in Houston, Texas, was founded in 1978 and has been recognized by Insurance Journal as one of the top 100 largest independent property/casualty insurance agencies in the United States.

Hub International, Denali Alaskan Insurance

Hub International Ltd. has acquired the assets of Denali Alaskan Insurance LLC, a wholly owned subsidiary of Denali Federal Credit Union. Terms of the deal were not disclosed. INSURANCEJOURNAL.COM

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Property, Primary & Excess Casualty, Environmental, Marine, Energy & Construction, Management Liability, Professional Liability, Commercial Surety, Programs, Cyber Liability, Railroad

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NATIONAL | Special Report | Auto & Home Top 20 Private Passenger Auto Direct Premium Growth

2015 DPW Private Passenger Rank Company Physical Damage 1 Allstate Northbrook Indemnity Co. $1,787,757,109 2 Allstate Fire and Casualty Insurance Co. $6,700,911,346 3 State Farm Mutual Automobile Insurance Co. $33,345,599,160 4 GEICO General Insurance Co. $7,910,456,898 5 LM General Insurance Co. $2,360,729,857 6 GEICO Casualty Co. $3,239,766,178 7 Standard Fire Insurance Co. $935,329,512 8 GEICO County Mutual Insurance Co. $696,440,376 9 USAA General Indemnity Co. $2,041,578,697 10 State Farm Fire and Casualty Co. $2,388,140,984 11 GEICO Indemnity Co. $4,879,836,221 12 GEICO Advantage Insurance Co. $584,473,308 13 Government Employees Insurance Co. $4,847,498,272 14 Progressive Select Insurance Co. $1,334,781,310 15 Farmers Insurance Exchange $1,664,790,698 16 USAA Casualty Insurance Co. $3,435,039,216 17 American Home Assurance Co. $44,665,595 18 Progressive Direct Insurance Co. $2,287,534,651 19 Allstate Property and Casualty Insurance Co. $3,712,528,101 20 GEICO Choice Insurance Co. $394,050,938 Top 20 $84,591,908,427 All Others $ 122,428,582,246 Total $207,020,490,673

2014 DPW Private Passenger Physical Damage Growth $472,079,863 $1,315,677,246 $5,761,091,707 $939,819,639 $32,659,881,913 $685,717,247 $7,351,890,636 $558,566,262 $1,880,894,214 $479,835,643 $2,760,589,272 $479,176,906 $541,579,687 $393,749,825 $312,629,995 $383,810,381 $1,697,455,690 $344,123,007 $2,149,762,018 $238,378,966 $4,653,533,669 $226,302,552 $365,434,019 $219,039,289 $4,640,509,129 $206,989,143 $1,152,268,847 $182,512,463 $1,500,829,436 $163,961,262 $3,274,603,106 $160,436,110 -$106,061,130 $150,726,725 $2,142,070,209 $145,464,442 $3,569,908,212 $142,619,889 $252,049,749 $142,001,189 $ 77,033,000,241 $7,558,908,186 $ 119,860,119,830 $ 2,568,462,416 $196,893,120,071 $10,127,370,602

% Change 278.70% 16.31% 2.10% 7.60% 25.51% 17.36% 72.70% 122.77% 20.27% 11.09% 4.86% 59.94% 4.46% 15.84% 10.92% 4.90% -142.11% 6.79% 4.00% 56.34% 9.81% 2.14% 5.14%

Source: Demotech Inc., Insurance Journal's official research partner. Data Source: The National Association of Insurance Commissioners, Kansas City, Mo., by permission. Information derived from an SNL product. The NAIC and SNL do not endorse any analysis or conclusion based upon the use of its data.

Top 20 Homeowners Multiperil Direct Premium Growth

2015 DPW Homeowners Rank Company Multiperil 1 Allstate Vehicle and Property Insurance Co. $1,455,891,852 2 Auto-Owners Insurance Co. $779,404,345 3 Liberty Insurance Corporation $1,574,355,981 4 State Farm Fire and Casualty Co. $13,677,923,746 5 USAA Casualty Insurance Co. $1,507,293,427 6 USAA General Indemnity Co. $547,705,365 7 Erie Insurance Co. $500,918,646 8 Nationwide General Insurance Co. $433,277,930 9 First Protective Insurance Co. $239,567,158 10 California Automobile Insurance Co. $146,657,511 11 Travelers Home and Marine Insurance Co. $1,177,082,878 12 Integon National Insurance Co. $113,916,667 13 Farmers Insurance Exchange $1,215,124,187 14 Bankers Standard Insurance Co. $322,664,589 15 Garrison Property and Casualty Insurance Co. $264,487,257 16 United Property & Casualty Insurance Co. $470,397,660 17 Universal Property & Casualty Insurance Co. $806,138,445 18 Federated National Insurance Co. $430,788,830 19 Privilege Underwriters Reciprocal Exchange $297,554,218 20 Safeco Insurance Co. of America $1,135,438,231 Top 20 $ 27,096,588,923 All Others $ 32,015,798,086 Total $59,112,387,009

2014 DPW Homeowners Multiperil Growth $932,222,352 $523,669,500 $473,692,947 $305,711,398 $1,376,988,043 $197,367,938 $13,503,240,814 $174,682,932 $1,335,139,711 $172,153,716 $384,778,509 $162,926,856 $355,710,003 $145,208,643 $300,982,951 $132,294,979 $108,642,729 $130,924,429 $21,063,163 $125,594,348 $1,051,604,816 $125,478,062 $10,507,976 $103,408,691 $1,124,985,137 $90,139,050 $236,934,955 $85,729,634 $178,888,478 $85,598,779 $388,236,427 $82,161,233 $724,639,793 $81,498,652 $349,992,695 $80,796,135 $219,393,799 $78,160,419 $1,060,767,156 $74,671,075 $ 24,138,412,454 $2,958,176,469 $29,166,347,985 $2,849,450,101 $53,304,760,439 $5,807,626,570

% Change 56.17% 64.54% 14.33% 1.29% 12.89% 42.34% 40.82% 43.95% 120.51% 596.27% 11.93% 984.10% 8.01% 36.18% 47.85% 21.16% 11.25% 23.09% 35.63% 7.04% 12.26% 9.77% 10.90%

14 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

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NATIONAL | Spotlight | Mutual Insurers

PURE COO on Mutual Growth, Home and Auto By Don Jergler

artin Hartley, executive vice president and chief operating officer of PURE Group of Insurance Cos., sees ample growth opportunities for mutual carriers despite a soft market. Some of those opportunities are in the form of increasing and measuring customer satisfaction, building a better team through superior human resources strategies and being innovative. Hartley spoke with Insurance Journal about these opportunities, the environment for mutual carriers and home and auto. This has been edited for clarity and brevity.

Insurance Journal: Where do you see opportunities for growth by mutual insurers as the soft market continues? Hartley: We’re structured such

that if we have an underwriting profit, if at the end of the year we collect more in premiums than we pay out in claims and expenses, then we return that money back to our policyholders. That is an incredible demonstration of alignment of interests, if you think about it. If our premiums are too high and we don’t pay out that much in claims, then we return that money back to the policyholders. On the flip side,

a stock company, their stated purpose is to maximize value to shareholders. They’re trying to maximize the difference between the premium they charge and the amount they pay out in claims and expenses. When they do achieve that, that doesn’t go back to policyholders, it goes to the shareholders in the insurance company. If you start with that fundamental question of what makes the mutual company different, and we are reciprocal. It’s a form of mutual. What makes a mutual company different? It is that alignment of interests.

IJ: What growth opportunities do you see? Hartley: We have a real focus on

Martin Hartley

16 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

serving our members. Through that focus, we see growth opportunities. This is the opportunity for mutuals everywhere, through that alignment, through that transparency, and

through a focus on serving their customers, to find those opportunities for growth. Just to give you a sense of some of what those are, from a growth opportunity standpoint, if we do an amazing job of delighting our customers, they tell other people. If you think about growth into other areas or other geographies, that’s one thing. But we operate in a big market segment. We have some proportion of that market segment. Our belief is that if we do an amazing job in delighting our customers, they will tell their friends. They will renew with us each year because they enjoy what we do. We will grow through delivering a better product and a better customer experience than anybody else. That is the primary growth opportunity for any business: Deliver an amazing product and have it be talked about. We have a 96 percent retention rate, year on year. Ninety-six percent of our members renew with us each year, which shows the level of satisfaction with what we’re doing.

IJ: What are the challenges to growth as the soft market continues? Hartley: There’s a couple of

things there. You’re right in pointing out a soft market, that there’s a challenge for an insurer when rates are coming down. If you do grow, do you compromise your sustainability? There’s a couple of things there that I would say. One is that we’re not trying to maximize the underwriting profit, as we talked about, we’re passing that back. INSURANCEJOURNAL.COM

We’ve probably got a higher tolerance for a soft market than some stock companies looking for a different return. The second is that I’d say two important things exist in a soft market. One is that it can be universally soft, but some segments of the market are still overpaying for their insurance. Using data science to identify which customers are likely to have lower loss costs over time, we can continue to grow in that segment. We also can avoid those customers that when we look at, we think their loss costs are going to be higher than the premium we can charge in the market that would compromise our surplus base.

IJ: What do you see as obstacles to growth? Hartley: If you think about the

challenges out there, one of them is the human resource element of growth, that as we grow, we have to bring on more people, grow our organization, our infrastructure. To grow successfully means growing your employee base and maintaining the same culture that allows you to deliver the exceptional service that we’re delivering. In terms of challenges and obstacles, maintaining a culture of service while growing the team is a key element of that. We do a few things in that area to ensure consistency. One of them is in our interview process. We interview for empathy, to get a very distinct interview process around identifying whether the person we’re speaking to and interviewing is emotionally intelligent, can register INSURANCEJOURNAL.COM

and interpret how the people they’re serving are feeling, can listen appropriately, can adjust their own response, monitor their own behaviors, and respond with great empathy to situations. Building a robust interview process to make sure we’re attracting and bringing on the people who we really believe will be able to serve our members well is a key element. The second element of this is really our culture. I’ll speak briefly.

‘I think that is the primary growth opportunity for any business: Deliver an amazing product and have it be talked about.’ It’s difficult. We have, I would say, a fairly clear culture here, a clear purpose to what we’re trying to do in terms of helping our members be safer, smarter and more resilient. A real culture of putting the

member first, what we could call member-centricity. If you think about the principles under which our team operates, we’re clear about what should come first at all times. What that creates is a consistent culture that allows us to execute well, but also brings in new people who recognize that culture quickly and fit with it. Share this article

with a colleague. IJMAG.COM/306JH

PURE Executive: Profitability Issues in Home Insurance Market to Continue Insurance Journal: Where do you see opportunities in home insurance (both in the high net worth industry and otherwise)? Hartley: We find our opportu-

nities by looking to our own membership and identifying areas where we can deliver even greater service and/or fill coverage gaps. For example, some of the most beautiful places to live are also the riskiest to insure — like extreme coastal locations or barrier islands — and not surprisingly the most expensive to buy property — attracting the high net worth. The homes in these areas typically fall into the E&S (excess and surplus) insurance market. Historically, the level of service offered through this market has been drastically different than what high net worth families are accustomed to. We saw this as an opportunity to better serve our mem-

bers, so we launched PURE Programs, an E&S solution that delivers the same exceptional service our admitted members enjoy. This also provides an opportunity for us to offer coverage to members with rental exposures as Airbnb gains in popularity among luxury homes.

IJ: How do you see the home insurance market (both in the HNW industry and otherwise) faring now, and through the end of this year? Hartley: Throughout the rest of this year, we believe localized profitability issues will continue. The assignment of benefits in Florida is one such example. We also believe that insurers will continue to advance in their use of innovative technology, as they leverage IoT (internet of things) and other data in their underwriting, pricing and risk management.

IJ: Have you seen any trends developing in this area?

Demotech recently announced it will downgrade the ratings of up to 15 carriers in Florida. This will force many of the homeowners insured by these carriers to find alternatives and could create movement back to Citizens.

IJ: Where do you see opportunities in auto insurance? Hartley: Unfortunately, the

reality in the auto insurance industry is that distracted driving is causing an increase in accidents. PURE, along with the rest of the insurance industry, should continue to look for innovative ways to help keep members and all drivers safe on the road. It is our responsibility to educate, as the rate of auto accidents and fatalities related to distracted driving continues to rise year over year.

MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 17

NATIONAL | Special Report | Homeowners

By Andrea Wells

espite big media hype that has included TV shows, magazines and blogs, the tiny home market is still small. Figures on its current size are hard to come by but the tiny home movement of people looking to downsize and simplify is passionate and promising enough to convince a few patient insurance carriers and agents to get in on the foundation in hopes they can help build it into something bigger. The tiny home trend began to take hold a little more than

a decade ago when early adopters of tiny home living began building do-it-yourself (DIY) units. Today the idea has moved beyond DIY to where some builders are specializing in tiny homes. Generally speaking, tiny homes have living space of about 400 square feet or less and are built either on wheels or on a foundation. The labor cost to build or buy a tiny home varies from zero for a self-build to a high of $80,000 or more with a luxury builder. In general, a truly tiny 20-foot house on wheels costs about $25,000 in materials and

18 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

an additional $20,000 or more in labor. Advocates see them as a way to live relatively low cost and debt-free. Other advantages they cite include: reduced carbon footprint, flexibility to move easily, off-grid capabilities, minimalist living, property tax exemption, rental income, guest house or vacation house, and the ability to build a custom home for less money and in a short amount of time. While enthusiasm within tiny home circles runs high, as with other new ideas like home sharing, would-be tiny home owners and builders have run into the realities of building codes, zoning ordinances, community norms and insurance issues that have, at the least, slowed construction and sales. Tiny home sales are so small they don’t register in the data collected by the National Association of Realtors (NAR). According to the trade group, common claims that more homebuyers are either flocking to McMansions in the suburbs or to tiny homes are unfounded. NAR data shows that since 2011, the median size of homes bought is 2,000 square feet. “While many millennial

renters living in urban areas have sacrificed space for proximity to jobs and entertainment, they’ve so far followed previous generations by fleeing to the suburbs for larger and more affordable homes when they’re ready to buy,” said Lawrence Yun, NAR chief economist. “It’ll be interesting to see in coming years if the typical home size shrinks as baby boomers downsize, and if there’s a shift towards more young buyers opting for less space to live closer to city centers. So far it hasn’t happened.” But there remain some true believers. Mike Schmidt is a business development director for the Tiny Home Industry Association and CEO of Ensemble Ventures, a Colorado Springs business development firm. Although he acknowledges that statistics are scarce, Schmidt firmly believes that tiny home buying and use are on their way up. He points to the attendance at the second annual Tiny House Jamboree in Colorado Springs. In 2015, there were 43,000 people, 10 tiny house vendors and 50 commercial vendors there, Schmidt said. A year later in August 2016, the Jamboree jumped to 55,000 attendees, more than 50 tiny house vendors and more than 100 commercial vendors. “So, it’s growing leaps and bounds.” As with any emerging indusINSURANCEJOURNAL.COM

try, it has its share of challenges that have in some ways impeded growth and raised insurance concerns. Some of the biggest issues involve building codes that have yet to be standardized and a variety of city and municipality zoning and ordinance regulations on where tiny homeowners can place their dwelling legally, according to Schmidt. Some state and local governments remain unsure on whether to classify tiny houses as recreational vehicles (RVs), mobile homes or backyard cottages. Another hurdle: some residents and local officials worry that having tiny homes in their neighborhoods will drive down property values. According to Schmidt, there’s confusion over definitions between RVIA standards (Recreational Vehicle Industry Association) versus International Residential Codes (IRC), an internationally accepted building code that addresses the design and construction of one- and two-family dwellings and townhouses.

‘There are different types of tiny houses — how they are sited and built, how they are placed, whether they are on a trailer; a lot of things that are evolving and developing.’ “There’s been some crossover between the two and how you apply insurance to this market is very interesting,” Schmidt said. “There are INSURANCEJOURNAL.COM

different types of tiny houses — how they are sited and built, how they are placed, whether they are on a trailer; a lot of things that are evolving and developing.” Then there are other regulations that affect zoning codes for occupancy. Tiny homes that are classified as RVs might be at odds with HUD codes and permanent residency. HUD “basically mandates and specifies that you can’t live in an RV more than 30 days at a time in a fixed location which has really hampered the (tiny home) industry significantly,” said Schmidt. “We’ve spent a lot of time looking at single family homes building, and development lags in the country. There’s a serious need for affordable housing and tiny houses may have a role to play if we can get some of the conflicting zoning and ordinances cleaned up,” Schmidt said. While regulations for tiny houses that are on wheels and thus often classified as RVs remain unregulated, standardization of rules for tiny houses on foundations is happening slowly. A recent addendum to the International Residential Code for tiny houses is seen by some as a step in this direction.

The IRC addendum gives architects, designers, builders, community developers and zoning officials “a means of recognizing tiny houses as an official form of permissible dwelling,” according to a tiny home blogger, Thom Stanton of the Housing Development Institute and GoTiny.com. The change could provide an opportunity for tiny house advocates to introduce statutory and municipal adoption of the new tiny house appendix during regional code change meetings, Stanton wrote.

Insurance Industry Response

In addition to building codes and zoning issues, insurance has been a challenge. But one independent agent has seized the opportunity to become a tiny home insurance expert. Darrell Grenz, owner of the Darrell Grenz Insurance Agency in Portland, Ore., met one of the earliest adopters of the tiny home movement. Portland Alternative Dwellings’ Dee Williams moved into her tiny home in 2004 but didn’t have insurance to cover it. At that time, and up until about four years ago, the majority of tiny homes were largely uninsurable.

“I met Dee Williams and she talked about the frustration of not being able to find insurance,” Grenz said. “I started going to some of her workshops to learn about the tiny home industry and then one of my clients built a tiny home.” That began Grenz’s journey down the tiny home insurance path. “It was almost like destiny,” Grenz said. “My office, located in North Portland, has become a hotbed for the tiny home movement.” Grenz began calling his insurance carrier reps. “Everyone was intrigued by tiny homes but all I got was a lot of 'no's.” No one was willing to tackle insuring the risk. Then Grenz reached out to a managing general agency who in turn contacted Lloyd’s of London. “They agreed to build a program and that was our first tiny homeowners package.” His client Williams began spreading the word through her blog, www.padtinyhouses. com. “She was ecstatic and started telling people. Word spread and I started getting calls from all over the country,” said the agent. Now Grenz said he receives about 10 to 20 calls a day for tiny home coverage. Most insurance agents do not

continued on page 22

MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 19

Idea Exchange

Business Interruption

Best Practices for Hospitality Business Interruption Recovery

By Jacob Parsons

chieving fair recovery for business interruption losses is often one of the most challenging aspects of resolving commercial property insurance claims. This is especially true for hoteliers and others types of hospitality companies where the amount of income loss can be difficult to pinpoint due to the dynamic nature of market and economic forces that influence how the business could have reasonably been expected to perform if no loss had occurred. Hospitality companies also tend to underestimate the type and amount of expenses that will necessarily continue during the restoration period – leaving potentially recoverable costs unclaimed. The good news is that hoteliers and other hospitality companies can position themselves to achieve a fair and timely resolution of business interruption claims by adhering to the following best practices. One of the keys to a successful claim is having a good policy in place. Companies in the hospitality business face a unique set of risks, some of which may not be addressed in a generic property insurance policy. Enlist the help of a broker with an established book of hospitality clients to assist with placing coverage tailored for hospitality businesses and consistent with the organization’s risk transfer objectives. It is also important for the insured to

report business interruption (BI) values that reflect its insurable business interruption exposures. The BI worksheets that policyholders are asked to complete tend to be overly simplistic and come with little to no explanation as to how to quantify values that are reflective of the BI exposure that are to be insured. Reporting BI values that are too high can result in excess premiums and unnecessarily high deductibles. On the other hand, reporting values that are too low may cause a portion of the income loss to be uninsured in the event of a catastrophic loss. To avoid either of these undesirable outcomes, policyholders should consider having their business interruption values quantified or at least reviewed by a financial or accounting professional who understands the nuances of BI insurance available to hospitality businesses.

Set the Stage for BI Claim Recovery

The first steps that every hotelier should take upon learning that a loss has occurred is to take all reasonable measures to ensure the safety of its guests and staff to mitigate further loss. As soon as the basic details of the loss have been ascertained, the insured

20 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

will need to provide notice of the loss to its insurance carrier(s). Once these formalities have been addressed, the insured will need to focus on operational and financial recovery, and assemble a cross-functional team to assist with the evaluation, analysis, preparation and resolution of the claim. For hospitality companies, a typical team may include internal personnel, including the general manager, finance and accounting, operations, legal and risk, and may also include outside professionals, including brokers, forensic claim accountants, coverage counsel and technical experts. It is essential for all member of the insured’s claim team to be coordinated in communicating with the insurance company’s claims teams. This typically works best when the insured designates a senior-level manager within the organization to lead the claim. The team lead should oversee the collection and compilation of data required to develop and support the claim, and control the flow of information to insurer, brokers, claim consultants and adjusters. Throughout the claim process the insured will need maintain regular communication with the claim adjusters

INSURANCEJOURNAL.COM

and insurers. Keeping the adjusters and insurers apprised of plans and restoration efforts will help to eliminate surprises and lead to a less contentious claims process. Disputes are bound to occur during the adjustment process; however, the insured should not be quick to let such disagreements derail settlement discussions. Rather the insured should strive to resolve as many claim items as it can and table the disputed items for a narrowly focused final claim negotiation. Miscommunication can derail an otherwise smooth claim process. Disjointed communication, internally or externally, may lead to misunderstandings, which will take time and resources to overcome. Companies need to be open about the importance of establishing and working through a set communication protocol. This typically works best when the team lead is responsible for controlling the flow of all information related to the claim. Every analysis, email, memo and press release could be used in the context of a dispute. In the event of a potentially difficult claim, consider channeling communications through counsel to establish legal privilege.

set of comparable hospitality properties in the area, or forward-looking projections or budgets that were developed prior to the loss. It is not uncommon for there to be significant differences in the measure of lost revenue under the different approach-

es â&#x20AC;&#x201C; each of which has strengths and weaknesses depending on circumstances surrounding the loss and recovery. A hotelier would be well served to evaluate its loss using several of these approaches before

continued on Page 23

Thereâ&#x20AC;&#x2122;s strength in our circle.

Representative of Actual Loss

Coverage for business interruption may vary by policy, but at its root, business interruption insurance is intended to provide reimbursement for the actual loss sustained by the insured â&#x20AC;&#x201C; consisting of the net profit which is prevented from being earned plus all charges and expenses that must necessarily continue during the interruption of business. To quantify the lost-profits pieces of the equation, the policyholder must first determine how much profit it would have earned if no loss had occurred. Policyholders should start by establishing a realistic and supportable estimate of how much revenue the business would have been able to earn if the property loss had not occurred. There are many ways to arrive at such an estimate, but the most common approaches are based on historical experience of the business, benchmarking the impacted property performance to a competitive

Choose a NAPSLO member to help you deliver cost-effective, innovative solutions for nonstandard insurance risk. So cost-effective, in fact, that a recent Conning analysis of distribution costs concludes that wholesale distribution does not increase the cost of the transaction to the insured. Count on NAPSLO members to create expertly tailored insurance solutions.

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MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 21

NATIONAL | Special Report | Homeowners continued from page 19

understand the tiny home market, which is a matter that concerns Martin Burlingame, CEO of Commercial Insurance Group, based in Colorado Springs. “The problem is that most insurance agents do not understand the differences on all these things (in tiny homes) and the tiny home movement, if it’s really a movement,” said Burlingame. “It’s a disaster for insurance because you have agents doing all kinds of crazy things.” The biggest problem when it comes to insurance is whether the tiny home is a permanent residence or a rental property. Many tiny home enthusiasts have taken to the Airbnb-style home venture, Burlingame said. The tiny home market is broken down into a few segments for insurance coverage purposes. First is a builder-built tiny home

that’s mobile. Then there’s builder-built homes that are non-mobile. Lastly, are the DIY, or self-built tiny homes. Burlingame’s managing general agency, through its tinyhome.insure website, offers an exclusive tiny home insurance program developed specifically for tiny homes. Premiums can range anywhere between $600 and $1,200 annually depending on the tiny home size and value, how it was built and where it is located. “One problem is a lot these (tiny home) builders are building non-RVIA certified tiny homes,” said Burlingame. So, Burlingame’s firm created the program to treat the home as a dwelling. It includes a trip endorsement that allows the owner to relocate the home and it provides auto comprehensive and collision liability when the home is moved. The program is under-

What to Know About Tiny Home Underwriting

ne insurer willing to tackle the tiny home market is Foremost Insurance Co., a division of Farmers. Lauri Atkinson, head of Specialty Product Development and Recreational Casualty for Farmers Specialty, said Foremost has been dabbling in tiny homes for a few years but right now will only write those that are professional built and certified by either Recreational Vehicle Industry Association (RVIA) or National Organization of Alternative Housing (NOAH). From an underwriting perspective, owner usage is an important issue, she said. “It must be owner occupied as opposed to being used in some type of commercial way such as an Airbnb.” Underwriters also are concerned about location including coastal restrictions and whether there are features like wood stoves or fireplaces. The trailers that tiny homes sit upon are also a big concern in underwriting. “We want to make certain the trailer that it’s on has a weight rating and make sure

the axles are strong enough to support the structure,” Atkinson said. Foremost underwrites tiny homes through its recreational casualty underwriting group so requirements are similar to how the company treats travel trailers, she added. Atkinson also recommends that agents make their customers aware of unique exposures for tiny homes such as theft. “Make certain that you have coverage for theft of the entire home. These are tiny and they can get carted away and be stolen,” she said. She also said tiny homes could be a target for vandals given their unique presence. “Make sure it’s covered for vandalism,” she said. Just like an automobile, location may change the rate. “Remember if you move the tiny home it may be re-rated.” The final thing piece of advice, Atkinson said, call for help. “Most agents probably aren’t going to run across a lot of these (tiny homes) so call our underwriting department to walk through the process of how to handle it.”

22 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

written by United National Insurance Co., an American Reliable division. Burlingame said the United National Insurance Co. program shies away from self-built tiny homes “from the ground up” but the underwriters will write shells that have been customized. For tiny homes that do not fit into the United National program, Burlingame offers coverage through an inland marine company. With this program, he can write tiny homes that are self-built or non-selfbuilt but can’t offer liability. “It’s written as an inland marine,” he said. He said the insured can always buy a general liability policy as well but the problem there is that general liability policies are area specific. Burlingame said Progressive, Foremost, National General and American Modern will write tiny homes, but those markets tend to classify them as travel trailers.

Tiny Home Future

Right now, Burlingame works with about six or seven independent agents who specialize in tiny homes nationwide but still gets the sporadic one off account. After two years, Burlingame’s tiny home insurance program has racked up about $5,000 in claims but only brought in around $400,000 to $500,000 in premium. “It’s not grown as fast as we want or as fast as the carrier wants it to,” he admits. But he’s not deterred yet. How the industry evolves over the next few years will be interesting to watch, he said. The evolution reminds him of another emerging market and product evolution: the legal marijuana industry. “Being in Colorado, we dealt with marijuana coming in. It was a completely new product that nobody understood what to do with it,” he said. “The tiny home market is like that but the difference is a marijuana policy is $70,000 for a grow operation, while a tiny home policy is $650. That’s the problem.” Even so he says it’s amazing to watch a completely new insurance product evolve with a much different and, in Burlingame’s view, a better risk clientele. Share this

article with a colleague. IJMAG.COM/306YT INSURANCEJOURNAL.COM

Business Interruption continued from page 21

adopting the one it believes best represents the actual loss it has sustained. In the process, hoteliers are prone to overlook certain variable costs that will necessarily continue even if they are not immediately reflected in its income statement. For example, many hotels are subject to franchise, management, advertising and various other types of fees that are calculated on a set percentage of a defined revenue stream. At first blush, one might not think that these fees would continue if the revenue stream that serves as the basis for such fee is reduced or disappears all together. This, however, is often not the case. In many cases, franchise, management or advertising agreements will stipulate that the revenue streams that serve as the basis for these fees include proceeds from BI insurance. Therefore, depending on the wording of the policy these fees may be treated as continuing expenses, since the insured has an obligation to pay them on BI proceeds it receives.

Set Realistic Goals and Expectations

Hospitality companies who are experiencing their first major BI loss are often surprised at the amount of time it can take to resolve the BI portion of their claim – even when things go smoothly. Unlike the property damage claim in which there are invoices to support the cost to restore or replace damaged property, a BI claim is C essentially an estimate that requires many M assumptions, thereby making it more comY plex to measure than a typical property CM damage claim. A standard policy provides coverage for MY the actual business losses sustained, which CY means that unless the hospitality company CMY has sustained a total loss, it will have to wait and see how the property performedK during the period of restoration before it can certify the details of its loss. Further, income losses are measured on a monthly-basis, and there is often several weeks of lag between when a month ends and when the profit-and-loss statements and competitive set data are published. Even after this data becomes available, the insured still needs to evaluate the loss and submit a claim, which then must be reviewed by

the forensic accountant who is working on able, the insured should fine tune its meabehalf of the insurance company. surement of the loss and periodically sub Policyholders do not need wait for its mit and request interim payments for the full business income loss to be realized to agreed portions of it loss. Adopting such receive insurance proceeds for its loss. The an approach helps to identify differences insured should take an iterative approach in the loss measurement early in the proto pursuing recovery for their business cess and provides an opportunity to work interruption losses. though issues throughout the adjustment. At the onset of the loss, the insured should strive to prepare a high-level estiFinal Thoughts mate of its loss based on the best available Any hospitality company that experiencinformation pertaining to the restoration es a business income loss will confront a plans and schedule with a cushion for unique set of challenges. The best practices unexpected delays in the recovery. The outlined above represent general guideadjuster may use preliminary estimates lines to help the insured to navigate the to set an initial reserve for the BI loss and claims adjustment process and promote it is typically more challenging to get a a successful recovery and resolution of reserve increased than it is to explain the claims. Share this article with a colimpact to the business was less significant league. IJMAG.COM/306AD than anticipated and pursue recovery for income losses that ultimately fall below Parsons is managing director in The Claro Group’s A&M helps BIG.pdf 1 1/5/16 12:36 Disputes, PM the preliminary estimate. Claims and Investigation Practice based in As actual financial results become availWashington, D.C.

Close More, Larger Accounts with A&M Helping Small Brokers Get Big Small and mid-size brokers can feel locked out of the competition for the larger more complex accounts. You can compete and succeed on large accounts with the combination of your drive and marketing know-how, and A&M's ability to deliver the right coverage at the right price. Contact us today to talk about larger accounts.

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MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 23

2017

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 2017 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.

Banquet Halls Market A.I.I. Insurance Brokerage of Mass., Inc. Advanced E&S Group - Midwest Region Advanced E&S Group - Southeast Region AFC Insurance Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC Bass Underwriters Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Ck Specialty Insurance Associates - All Offices

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

N24 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

Banquet Halls Market Cochrane & Company CRC Swett Crusader Insurance Company Erickson-Larsen, Inc. 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 Izzo Insurance Services, Inc. James River Insurance Company Jimcor Agencies Joseph Krar & Associates LevelFirst Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MacNeill Group 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 RIC Insurance General Agency, Inc. Roush Insurance Services, Inc. SCU - All Offices SCU - Middletown Southern Insurance Underwriters, Inc. CMGA 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 Walter General Agency (WGA) Western Surplus Lines Agency, Inc. Willis Programs, ResortGuard Ins. Program

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

LA ND NM OK TX All States

www.insurancejournal.com

2017 Hospitality Risks Directory Bars/Night Clubs

Bars/Night Clubs

Bars / Night Clubs coverage category sponsored by:

Market Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC 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 Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Advisors, LLC (and Taverns - no clubs) 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 Specialty Insurance (and Taverns)

Midlands Management Corp. - check out our ad on page 7 (South Central)

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 (Taverns - no clubs) Agency Intermediaries, Inc. All Risks, Ltd. American Team Managers Insurance Services 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. Combined Group Continental Risk Insurance Services CPRO Associates CRC Swett 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 International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies (and Taverns) Joseph Krar & Associates LevelFirst

www.insurancejournal.com

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

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 Walter General Agency (WGA) Western Security Surplus Insurance Brokers Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Willis Programs, ResortGuard Ins. Program Worldwide Facilities, LLC

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

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

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N25

2017 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. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC B&H Risk Services Bass Underwriters Burns & Wilcox Chopra Insurance Brokerage, Inc. CITA Insurance Services Ck Specialty Insurance Associates - All Offices Cochrane & Company Combined Group Continental Risk Insurance Services CPRO Associates CRC Swett Crusader Insurance Company Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey J.M. Wilson James River Insurance Company Jimcor Agencies Joseph Krar & Associates M.J. Hall & Company, Inc. McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. 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 Quaker Special Risk Quirk & Company RIC Insurance General Agency, Inc. Risk Placement Services, Inc. SCU - All Offices TAPCO Underwriters, Inc. Tejas American General Agency

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

N26 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

Market The McGowan Companies Company Unifax Insurance Systems, Inc. Unisource Program Administrators Walter General Agency (WGA) Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Willis Programs, ResortGuard Ins. Program

States Available All States Topa Insurance CA CA All except Monopolistic

AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX All States

Breweries/Micro Breweries/Micro coverage category sponsored by:

Anderson & Murison - check our ad on pg 23 (National Section) States Market Available A.I.I. Insurance Brokerage of Mass., Inc. MA NH RI Abram Interstate Insurance Services, Inc. CA Advanced E&S Group - Southeast Region All states except KY Agency Intermediaries, Inc. CT ME All Risks, Ltd. Has Pen, All States AmWINS Group, Inc. All States Anderson & Murison, Inc. All States Appleby & Sterling AZ CA NV Arlington/Roe & Co of Indiana IL IN KY MI MN MO OH TN WI Bass Underwriters AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA Braishfield Associates, Inc. All States CID Insurance Programs, Inc. AZ CA CO ID MD NE NM NV OR TN TX UT WA Ck Specialty Insurance Associates - All Offices AZ CA CO ID NV OR UT WA Cochrane & Company ID MT OR WA Combined Group Most States CRC Swett All States Crusader Insurance Company CA Delta General Agency Corp. TX Elite Underwriters CA FL GA NY Entertainment Risk AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA Erickson-Larsen, Inc. MN MT ND NE SD WI WY Evolution Insurance Brokers All States Founders Insurance Company AL CO CT FL IA IL IN KS LA MD MI MN MT NC NH NV NY OH OR TN VA WI Gorst & Compass Insurance CA Gray-Stone & Company, Inc. Most States Gremesco Of New Jersey NJ NY Indemnity Excess & Surplus Agency AZ CA CO ID MT NV OR TX WA International Excess Companies All States Izzo Insurance Services, Inc. All States J.M. Wilson Most States Jacobs & Associates OH www.insurancejournal.com

2017 Hospitality Risks Directory Casinos

Breweries/Micro Market James River Insurance Company Jimcor Agencies

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

M.J. Hall & Company, Inc. M.J. Kelly Company Market Finders Insurance Corp. McLeckie Insurance Group Midlands Management Corp. Morstan General Agency, a div of Hull & Co., LLC 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 Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company Roush Insurance Services, Inc. SCU - Middletown Specialty Insurance

AK AZ CA HI NV AR FL IA LA MO MS NC TN TX All States AR LA NC OK TN 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 CT IA ID IL KS MO NE NM NV OK OR TN TX UT WA WI All States All States except LA All except CA NH NY RI

Tejas American General Agency Topa Insurance Company U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators Walter General Agency (WGA) Worldwide Facilities, LLC

All States Most States LA NM OK OR TX WA IL IN OH CT MA ME NH NJ RI PA CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX TX CA All States CA All except Monopolistic AR IA IL IN KS KY MO OK TN

All States

Casinos

Market A.I.I. Insurance Brokerage of Mass., Inc. Agency Intermediaries, Inc. American Specialty Ins. & Risk Services, Inc. All Risks, Ltd. Alliant Insurance Services AmWINS Group, Inc. B&H Risk Services Bass Underwriters Chopra Insurance Brokerage, Inc. CPRO Associates CRC Swett Distinguished Specialty www.insurancejournal.com

States Available MA NH RI 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 CA NJ NV NY AR OK TN TX All States All States

Market Entertainment Risk Evolution Insurance Brokers 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 Partners Specialty Group, LLC Prime Insurance Company U.S. Risk Insurance Group, Inc. Walter General Agency (WGA)

States Available AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA All States 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 CT IA ID IL KS MO NE NM NV OK OR TN TX UT WA WI All States All except CA NH NY RI All States

AR IA IL IN KS KY MO OK TN

Caterers Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Advanced E&S Group - Midwest Region 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 CRC Swett Delta General Agency Corp. Erickson-Larsen, Inc. Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company

States Available MA NH RI CA CO FL IA IL IN KS KY MI MN MO NE OH TX WI CT ME Has Pen, All States All States All States IL IN KY MI MN MO OH TN WI 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 All States TX MN MT ND NE SD WI WY 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

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N27

2017 Hospitality Risks Directory Caterers Market Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Indemnity Excess & Surplus Agency International Excess Companies Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates Lionheart Insurance Services, Inc. (Large Caterers) M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. McClelland and Hine, Inc. McLeckie Insurance Group Midlands Management Corp. Monitor Liability Managers Morstan General Agency, a div of Hull & Co., LLC 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 Patriot National Underwriters, Inc. Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities ProHost USA Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, Inc. Roush Insurance Services, Inc. SCU - All Offices SCU - Middletown Specialty Insurance (and Delis) TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Topa Insurance Company U.S. Risk Insurance Group, Inc. Unisource Program Administrators USX/S Walter General Agency (WGA) Western Security Surplus Insurance Brokers Western Special Risks, Inc. Western Surplus Lines Agency, Inc.

Dinner Theaters States Available FL CA Most States 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 AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV AR FL IA LA MO MS NC TN TX FL NC SC TX VA All States TX AR LA NC OK TN TX Most States All States All States All States AZ CA NV CT MA ME NH NJ NY OH PA RI VT All States MA AZ CA CO CT IA ID IL KS MO NE NM NV OK OR TN TX UT WA WI All States AR KS LA MS OK TX All except CA NH NY RI All States All States except AK LA NM OK OR TX WA

State availability varies - call us!

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

Market A.I.I. Insurance Brokerage of Mass., Inc. Abram Interstate Insurance Services, Inc. Anderson & Murison, Inc. Agency Intermediaries, Inc. All Risks, Ltd. AmWINS Group, Inc. Arlington/Roe & Co of Indiana Bass Underwriters Brecht & Associates Chopra Insurance Brokerage, Inc. Ck Specialty Insurance Associates - All Offices Continental Risk Insurance Services CPRO Associates CRC Swett Crusader Insurance Company Delta General Agency Corp. Elite Underwriters Entertainment Risk Evolution Insurance Brokers Executive Insurance Professionals, PLLC Founders Insurance Company Gray-Stone & Company, Inc. Gremesco Of New Jersey 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 Number One Insurance Agency, Inc. Pacific Excess Insurance Marketing Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quirk & Company U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. Unisource Program Administrators Walter General Agency (WGA) Willis Programs, ResortGuard Ins. Program Worldwide Facilities, LLC

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

AR IA IL IN KS KY MO OK TN

All States All States

AR IA IL IN KS KY MO OK TN

CA TX AZ NV LA ND NM OK TX

N28 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

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2017 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 Continental Risk Insurance Services CRC Swett 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 Jacobs & Associates James River Insurance Company Jimcor Agencies LevelFirst

States Available MA NH RI CA CT ME Has Pen, All States All States All States IL IN KY MI MN MO OH TN WI Most States AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA Most States All 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 OH All States DE FL MA MD NJ NY OH PA RI WV AK AR CA CO FL GA KS LA MO MS NJ NM NV OH OK PA TX Lionheart Insurance Services, Inc. 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 MAXIMUM All States McClelland and Hine, Inc. TX Midlands Management Corp. Most States Morstan General Agency, a div of Hull & Co., LLC All States N-Surance Outlets, Inc. AL FL GA LA NC SC TN 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

Partners Specialty Group, LLC Prime Insurance Company Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services Risk Placement Services, Inc. RMS Hospitality Group

www.insurancejournal.com

AZ CA CO CT IA IDIL KS MO NE NM NV OK OR TN TX UT WA WI All States All except CA NH NY RI Most States LA NM OK OR TX WA

State availability varies - call us!

All States All except AK VT WV

Market Southern Insurance Underwriters, Inc. CMGA U.S. Risk Insurance Group, Inc. Unifax Insurance Systems, Inc. USG Insurance Services, Inc. Walter General Agency (WGA) Worldwide Facilities, LLC

States Available AL FL GA SC TN All States CA All States

AR IA IL IN KS KY MO OK TN

All States

Hotels/Motels Hotels/Motels coverage category sponsored by:

Nautilus Insurance Co. & Great Divide Ins. Co. - check out our ad on the Inside Front Cover & page 7 (West) Market A.I.I. Insurance Brokerage of Mass., Inc. Advanced E&S Group - Midwest Region Advanced E&S Group - Southeast Region AFC Insurance Agency Intermediaries, Inc. All Risks, Ltd. Alliant Insurance Services American Union Risk Associates, LLC AmWINS Group, Inc. Anderson & Murison, Inc. Appleby & Sterling Arlington/Roe & Co of Indiana Ashley General Agency Atlas General Insurance Services, LLC B&H Risk Services Bass Underwriters Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox CITA Insurance Services Chopra Insurance Brokerage, Inc. CID Insurance Programs, Inc. Ck Specialty Insurance Associates - All Offices Cochrane & Company Combined Group Continental Risk Insurance Services CPRO Associates CRC Swett Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters

States Available MA NH RI 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 All States All States AZ CA NV IL IN KY MI MN MO OH TN WI 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 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 Most States AR OK TN TX All States CA TX All States CA FL GA NY

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N29

2017 Hospitality Risks Directory Hotels/Motels Market Evolution Insurance Brokers Executive Insurance Professionals, PLLC 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. Services (3, 4 & 5 Star Rated based on Amenities) Indemnity Excess & Surplus Agency International Excess Companies Izzo Insurance Services, Inc. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies KZ Insurance Brokerage, LLC LevelFirst

Hotels/Motels States Available All States OK TX 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 Most States OH All States DE FL MA MD NJ NY OH PA RI WV AZ CA CO LA NV TN AK AR CA CO FL GA KS LA MO MS NJ NM NV OH OK PA TX M.J. Hall & Company, Inc. AK AZ CA HI NV M.J. Kelly Company AR FL IA LA MO MS NC TN TX MacNeill Group FL NC SC TX VA Market Finders Insurance Corp. All States MAXIMUM All States McClelland and Hine, Inc. TX McLeckie Insurance Group AR LA NC OK TN TX MexiPass International Insurance Services, LLC All States Midlands Management Corp. Most States Monitor Liability Managers All States Morstan General Agency, a div of Hull & Co., LLC All States N-Surance Outlets, Inc. AL FL GA LA NC SC TN Nautilus Insurance Co. & Great Divide Ins. Co. All States NeitClem Wholesale Insurance Brokerage, Inc. AZ CA NV NIF Group Partners Specialty Group, LLC Patriot National Underwriters, Inc. Philadelphia Insurance Companies Prime Insurance Company Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Promont Advisors, LLC 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 SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc.

All States All States AR KS LA MS OK TX All States except LA All except CA NH NY RI All States All States 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 States Most States

N30 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

Market Tejas American General Agency The McGowan Companies Topa Insurance Company Travelers U.S. Risk Insurance Group, Inc.

UCA General Insurance Services, Inc.

Unifax Insurance Systems, Inc. Unisource Program Administrators USG Insurance Services, Inc. USX/S Walter General Agency (WGA) Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Willis Programs, ResortGuard Ins. Program Worldwide Facilities, LLC Zurich Programs

States Available TX All States CA All States All States

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

AR IA IL IN KS KY MO OK TN

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

Resorts Market A.I.I. Insurance Brokerage of Mass., Inc. Advanced E&S Group - Southeast Region Agency Intermediaries, Inc. All Risks, Ltd. Alliant Insurance Services AmWINS Group, Inc. Arlington/Roe & Co of Indiana Atlas General Insurance Services, LLC Bass Underwriters Burns & Wilcox CITA Insurance Services Cochrane & Company CRC Swett Delta General Agency Corp. Distinguished Specialty Elite Underwriters Entertainment Risk Erickson-Larsen, Inc. 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) Izzo Insurance Services, Inc.

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

www.insurancejournal.com

2017 Hospitality Risks Directory Resorts Market James River Insurance Company Jimcor Agencies

K & K Insurance Group, Inc.

M.J. Hall & Company, Inc. M.J. Kelly Company MAXIMUM MexiPass International Insurance Services, LLC Monitor Liability Managers 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 Quirk & Company Risk Placement Services, Inc. SUITELIFE by Venture Insurance Programs Tejas American General Agency The McGowan Companies Travelers USG Insurance Services, Inc. Walter General Agency (WGA) Willis Programs, ResortGuard Ins. Program Zurich Programs

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

All States

AK AZ CA HI NV AR FL IA LA MO MS NC TN TX All States All States All States All States AZ CA CO CT IA ID IL KS MO NE NM NV OK OR TN TX UT WA WI AR KS LA MS OK TX All States except LA All except CA NH NY RI All States All States LA NM OK OR TX WA All States All States TX All States All States All States

AR IA IL IN KS KY MO OK TN

All States Nationwide

Restaurants Restaurants coverage category sponsored by:

M.J. Hall & Company - check us out on page 15 (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 AFC Insurance Agency Intermediaries, Inc. All Risks, Ltd. Alliant Insurance Services American Team Managers Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc.

www.insurancejournal.com

States Available MA NH RI CA 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 CA All States All States

Market Appleby & Sterling 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 Combined Group Continental Risk Insurance Services CPRO Associates CRC Swett Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters Entertainment Risk Erickson-Larsen, Inc. 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 â&#x20AC;&#x201C; CITA Ins. Services (in Hotels & Resorts only) Indemnity Excess & Surplus Agency International Excess Companies 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.

States Available AZ CA NV IL IN KY MI MN MO OH TN WI 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 Most States AR OK TN TX All States CA TX All States CA FL GA NY AZ CA CO FL GA IL LA MA MD MI NJ NV NY TN TX UT VA MN MT ND NE SD WI WY 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 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 AK AR CA CO FL GA KS LA MO MS NJ NM NV OH OK PA TX AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N31

2017 Hospitality Risks Directory Restaurants Market MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland and Hine, Inc. McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Monitor Liability Managers Morstan General Agency, a div of Hull & Co., LLC 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 ProHost USA Promont Advisors, LLC (and Diners) Quaker Special Risk Quirk & Company Regency Insurance Brokerage Services RIC Insurance General Agency, 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 Specialty Insurance (and Delis) TAPCO Underwriters, Inc. Target Market Specialists Tejas American General Agency The McGowan Companies 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 Walter General Agency (WGA) Western Security Surplus Insurance Brokers Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Worldwide Facilities, LLC

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

AR IA IL IN KS KY MO OK TN

CA TX AZ NV LA ND NM OK TX All States

N32 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

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 Combined Group CPRO Associates CRC Swett Elite Underwriters Evolution Insurance Brokers Gabor Insurance Services, Inc. Gorst & Compass Insurance Gray-Stone & Company, Inc. Gremesco Of New Jersey Hotels & Resorts Insurance Program – CITA Ins. Services (in Hotels & Resorts only) 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. M.J. Kelly Company 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 SASSI - Salon & Spa Specialty Insurance Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency

States Available MA NH RI CA CT ME Has Pen, All States All States All States AZ CA NV IL IN KY MI MN MO OH TN WI 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

Most States AR OK TN TX All States CA FL GA NY 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 AR FL IA LA MO MS NC TN TX All States AZ CA NV All States AZ CA CO CT IA ID IL KS MO NE NM NV OK OR TN TX UT WA WI All States except LA All except CA NH NY RI All States Most States LA NM OK OR TX WA

State availability varies - call us!

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

www.insurancejournal.com

2017 Hospitality Risks Directory Spas Market U.S. Risk Insurance Group, Inc. Unisource Program Administrators USX/S Walter General Agency (WGA) Western Special Risks, Inc. Western Surplus Lines Agency, Inc. Zurich Programs

Special Events States Available All States All except Monopolistic All States

AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX Nationwide

Special Events Special Events coverage category sponsored by:

Abram Interstate - check out our ad on page 9 (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. Arlington/Roe & Co of Indiana Ashley General Agency Bass Underwriters Braishfield Associates, Inc. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Cochrane & Company Combined Group Continental Risk Insurance Services CRC Swett Delta General Agency Corp. Elite Underwriters Erickson-Larsen, Inc. 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 International Excess Companies

www.insurancejournal.com

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 IL IN KY MI MN MO OH TN WI TX AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States TX All States AZ CA CO ID MD NE NM NV OR TN TX UT WA All States ID MT OR WA Most States Most States All States TX CA FL GA NY MN MT ND NE SD WI WY 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 All States

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

K & K Insurance Group, Inc. LevelFirst

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

All States

AK AR CA CO FL GA KS LA MO MS NJ NM NV OH OK PA TX Lionheart Insurance Services, Inc. (Large Events) AZ CA CO HI ID NM NV OK TX UT WA WY M.J. Hall & Company, Inc. AK AZ CA HI NV M.J. Kelly Company AR FL IA LA MO MS NC TN TX MacNeill Group FL NC SC TX VA Market Finders Insurance Corp. All States MAXIMUM All States McClelland and Hine, Inc. TX McLeckie Insurance Group AR LA NC OK TN TX MexiPass International Insurance Services, LLC All States Midlands Management Corp. Most States Morstan General Agency, a div of Hull & Co., LLC All States N-Surance Outlets, Inc. AL FL GA LA NC SC TN 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 Pacific Excess Insurance Marketing AZ CA CO CT IA ID IL KS MO NE NM NV OK OR TN TX UT WA WI Partners Specialty Group, LLC All States Philadelphia Insurance Companies All States except LA Prime Insurance Company All except CA NH NY RI Professional Program Insurance Brokerage Most States Quaker Special Risk Most States Quirk & Company LA NM OK OR TX WA Regency Insurance Brokerage Services State availability varies - call us! RIC Insurance General Agency, Inc. CA Risk Placement Services, Inc. All States RMS Hospitality Group All except AK VT WV 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 TAPCO Underwriters, Inc. Most States Tejas American General Agency TX The McGowan Companies All States U.S. Risk Insurance Group, Inc. All States USASIA Insurance Services CA NV USG Insurance Services, Inc. All States USX/S All States 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 Willis Programs, ResortGuard Ins. Program All States Worldwide Facilities, LLC All States

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N33

2017 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

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

Advanced E&S Group - Midwest Region 333 W. Wacker Dr., Ste. 1950, Chicago, IL 60606 Phone: 866-867-0505, Fax: 855-301-8177 Email: quote@advancede-s.com www.aesins.com

Advanced E&S Group - Southeast Region 3250 N. 29th Ave., Hollywood, FL 33020 Phone: 561-459-2881, Fax: 855-289-3945 Email: scook@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

Alliant Insurance Services

1301 Dove St., Ste. 200, Newport Beach, CA 92660 Phone: 949-756-0271, Fax: 619-699-0937 Email: marcomm@alliant.com www.alliant.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

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

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

Ashley General Agency

Cochrane & Company

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

See Website for Addresses, HQ - San Jose, CA 95037 Phone: 800-411-0083, Fax: 408-227-7732 Email: carol@ckspecialty.com www.ckspecialty.com P.O. Box 19150, Spokane, WA 99219 Phone: 509-838-0655, Fax: 509-838-1710 Email: marketing@cochraneco.com www.cochraneco.com

Combined Group

P.O. Box 819045, Dallas, TX 75381-9045 Phone: 214-295-1600, Fax: 800-275-3194 Email: marketing@combinedgroup.com www.combinedgroup.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

CRC Swett

See Website for Addresses Headquarters - Birmingham, AL 35209 Phone: 205-870-7790 Email: marketing@crcins.com www.crcswett.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

1030 N. Armando St., Anaheim, CA 92806 Phone: 714-414-1200, Fax: 714-414-1255 Email: mmartino@atminsurance.com www.atminsurance.com 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

Chopra Insurance Brokerage, Inc.

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

American Team Managers Insurance Services

American Union Risk Associates, LLC

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

N34 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

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

www.insurancejournal.com

2017 Hospitality Risks Directory - Alphabetical Directory of Markets Distinguished Specialty

Gray-Stone & Company, Inc.

Jimcor Agencies

Elite Underwriters

Gremesco Of New Jersey

Joseph Krar & Associates, Inc.

Entertainment Risk

Horizon E & S Insurance Brokerage

Erickson-Larsen, Inc.

Hotels & Resorts Insurance Program – CITA Insurance Services

11245 SE 6th St., Ste. 100, Bellevue, WA 98004 Phone: 425-213-5130, Fax: 212-297-3130 Email: thughes@distinguished.com www.distinguished.com 395 Alhambra Cir., Coral Gables, FL 33134 Phone: 786-999-1350, Fax: 786-522-9046 Email: info@eliteunderwriters.com www.eliteunderwriters.com 11350 McCormick Rd. Executive Plaza 2, Ste. 1002 Hunt Valley, MD 21031 Phone: 844-368-7475 Email: inquiry@entertainmentrisk.com www.entertainmentrisk.com 6425 Sycamore Ct. N, Maple Grove, MN 55369 Phone: 763-535-0055 Email: pbloch@ericksonlarseninc.com www.ericksonlarseninc.com

Evolution Insurance Brokers

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

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

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

K & K Insurance Group, Inc.

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

Indemnity Excess & Surplus Agency

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

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

Executive Insurance Professionals, PLLC

International Excess Companies

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

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

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

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

Founders Insurance Company 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

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

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 www.insurancejournal.com

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

Jacobs & Associates

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

Gateway Specialty Insurance

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

LevelFirst

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

M.J. Kelly Company

4415 E. Sunshine, Springfield, MO 65809 Phone: 800-725-7211, Fax: 800-678-7211 Email: khampton@mjkelly.com www.mjkelly.com

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N35

2017 Hospitality Risks Directory - Alphabetical Directory of Markets MacNeill Group

P.O. Box 45-9003, Sunrise, FL 33345-9003 Phone: 954-331-4800 ext. 2031, Fax: 954-331-4848 Email: mgmarketing@macneillgroup.com www.macneillgroup.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

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

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

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

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

McLeckie Insurance Group

P.O. Box 770, Naples, TX 75568 Phone: 903-897-9090, Fax: 760-462-1696 Email: bill@mcleckie.com www.mcleckie.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 Management Corp.

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

Monitor Liability Managers

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.

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: 312-262-3334, Fax: 312-262-3301 Email: zelbert@promontadvisors.com www.promontadvisors.com

Quaker Special Risk

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

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

Partners Specialty Group, LLC

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

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

Professional Liability Insurance Svcs, Inc. - Underwriting Facilities

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

Quirk & Company

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

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

Risk Placement Services, Inc.

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

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

7233 E. Butherus Dr., Scottsdale, AZ 85260 Phone: 480-951-0905, Fax: 480-951-9730 Email: tpytel@nautilus-ins.com www.nautilusinsgroup.com

N36 | INSURANCE JOURNAL-NATIONAL REGION March 6, 2017

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. www.insurancejournal.com

2017 Hospitality Risks Directory - Alphabetical Directory of Markets Roush Insurance Services, Inc.

USASIA Insurance Services

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

SCU - All Offices

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

Topa Insurance Company

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

USX/S

24025 Park Sorrento, Ste. 300, Calabasas, CA 91302 Phone: 818-466-5900 Email: topa-marketing@topa-ins.com www.topa-ins.com

Walter General Agency (WGA)

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

Travelers

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

273 Clarkson Rd., Ste. 102, Ellisville, MO 63011 Phone: 636-391-4841, Fax: 636-391-2115 Email: newquotes@wgamo.com www.wgamo.com

SCU - Middletown

U.S. Risk Insurance Group, Inc.

Western Security Surplus Insurance Brokers, Inc.

421 Wadsworth St., Middletown, CT 06457 Phone: 860-347-9600, Fax: 860-347-9611 Email: Ctapps@scui.com www.scui.com/Middletown

5800 Granite Pkwy, Ste. 300, Plano, TX 75024 Phone: 972-702-0500, Fax: 972-702-0504 Email: kstevens@wssib.com www.wssib.com

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

Southern Insurance Underwriters, Inc. CMGA

Western Special Risks, Inc.

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

Specialty Insurance

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

SUITELIFE by Venture Insurance Programs

9059 W. Lake Pleasant Pkwy, Ste. 340, Peoria, AZ 85382 Phone: 888-317-5575, Fax: 623-977-4622 Email: rwilliams@westernspecialrisks.com www.westernspecialrisks.com

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

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

TAPCO Underwriters, Inc.

Unifax Insurance Systems, Inc.

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

www.insurancejournal.com

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

Willis Programs, ResortGuard Ins. Program

1301 Wrights Lane East, West Chester, PA 19380 Phone: 800-282-6247 ext. 276, Fax: 610-692-5977 Email: marketing@suitelifeins.com www.suitelifeins.com

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

Western Surplus Lines Agency, Inc.

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

Worldwide Facilities, LLC

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

See Website for Locations Headquarters - Los Angeles, CA 90017 Phone: 213-236-4500, Fax: 213-244-9655 Email: info@wwfi.com www.wwfi.com

Unisource Program Administrators

Zurich Programs

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

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

March 6, 2017 INSURANCE JOURNAL-NATIONAL REGION | N37

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MyNewMarkets | NATIONAL as well as the handling of the state/federal filings involved. Available limits: Minimum $100,000, maximum $1.5 million Carrier: Echelon Property & Casualty States: Indiana Contact: Brian Collins at 317888-2593 or email: bcollins@ goibi.com

Investigators

Market Detail: For more than

Commercial Auto Preferred Admitted Market Detail: Search

Insurance Services (www. marketsearchinsurance.com) offers coverage for: contractors, retailers, wholesalers, and manufacturers. Ineligible risks include truckers — common carrier; truckers - contract carrier — livery. Liability, uninsured motorist and physical damage available. Available limits: Minimum $50,000, minimum $1 million Carrier: Unable to disclose, admitted States: Calif. only Contact: Customer service at 888-273-0165

Energy PAC - Admitted Program Market Detail: Citadel

Insurance Services’ (www. citadelus.com) target market is the “on-shore” energy industry and its related operations, including “pure” incidental maritime employer’s liability. The target market can be categorized into five target classes of business: contracting; consulting; manufacturing; transportation of associated product and waste; and small utilities INSURANCEJOURNAL.COM

providing local energy supply. Available lines include: general liability, products, pollution, site pollution, contractor pollution liability, professional liability, and follow form excess. Available limits: Maximum $25 million Carrier: Unable to disclose, admitted States: All states Contact: David Johnson at 877247-4468 or e-mail: djohnson@ citadelus.com

Builders’ Risk & Renovation Residential Insurance

Market Detail: QuickIns (www. quickins.com) offers online, phone and email quoting for builders risk insurance, single family dwellings with ground up or major renovations. Targeted classes: single family homes valued $25,000 — $1 million for protection classes 1 through 10. Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Customer service at 877-275-9578

D&O/E&O for Insurance Agents & Insurance Companies Market Detail: Quadrant

Insurance Managers (www. quadrant-us.com) is a program administrator with exclusive products in E&O and management liability for insurance retailers, wholesalers, managing general agents (MGAs), program administrators, third-party administrators (TPAs), reinsurance intermediaries. Can also write insurance companies with $350 million or less in gross written premium. Available limits: As needed Carrier: Unable to disclose States: All states Contact: Karen Harris at 614841-1425 or email: kharris@ quadrant-us.com

Non-Emergency Medical Transport

Market Detail: IBI Insurance

Brokers of Indiana (www.goibi. com) is a competitive outlet for non-emergency medical transport risks (ParaTransits) located in Indiana and Illinois. IBI can write single unit accounts, as well as fleet accounts. State required limits are offered,

25 years The Mechanic Group (www.mechanicgroup.com) has specialized in delivering custom-built private security insurance programs to armed and unarmed security guard, private investigation, intelligence, electronic security, alarm installation and monitoring, background screening and security consulting firms. Coverages include: errors and omissions, commercial excess, commercial general liability, workers’ comp, directors and officers, umbrella, liability, contractors license bonds, and employment practices liability insurance. Available limits: As needed Carrier: Unable to disclose, admitted and nonadmitted available States: All states Contact: Marc Katz at 800214-0207 or email: mkatz@ mechanicgroup.com

This section brought to you by Insurance Journal’s sister website: www.mynewmarkets.com

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MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 39

Idea Exchange

The Competitive Advantage

Insurance is Losing the Battle of Public Relations

By Chris Burand

looding in southern Louisiana in the late summer of 2016 revealed 86 percent of flooded homes had no flood insurance. No flood insurance next door to one of our nation’s — and that state’s — largest catastrophe, which involved a huge flood. The average elevation of the flooded area is only 30 feet to 50 feet and is surrounded by rivers. How can this happen? Heck, even the federal government runs advertisements all over the country advising of the need to buy flood insurance, and somehow, some way, agents fail to sell it. I don’t see how those agents deserve either the title “insurance agent,” “salesman,” or “saleswoman.” I can think of many other titles, but none possess positive connotations. To be fair, I know many do offer flood, but offering and selling are not the same. I know many clients decline to purchase, but 86 percent? Closer to my personal home in Colorado, four or so years ago, approximately 700 homes burned to the ground in two separate fires. I never learned how many were materially underinsured and/or did not have the right coverages. I’ve heard stories though that an extremely large percentage, probably close to the 86 percent cited above, were not arguably insured properly. The result was not a huge deluge of errors and omissions claims from what I know

anecdotally (maybe because most of the homes, as is common, were insured by captives or I’m not part of that grapevine), but worse. A California nonprofit partially funded by the plaintiff’s bar saw the opportunity this presented. They helped homeowners fight for more claims dollars. They then worked to change the laws in Colorado to make agents more responsible for getting ITV’s (insurance-to-value) correct. The standard of care for agents here, specific to homeowners at least, is likely now higher than any other state. A few months ago, a small fire burned eight homes near me. Homeowners on the news were thanking this same nonprofit for helping them get more claims dollars, within 72 hours of the fire if I remember correctly. If it was not for that nonprofit, in their opinion, they’d be shafted by the insurance company. In only 72 hours, such a factual conclusion isn’t realistic, but emotionally the conclusion is final.

Where Is the Agent?

The nonprofit is now the hero. Where is the agent? Where is the agent when the agent sells insureds the right coverages and the homeowner does not have to fight the mean, bad insurance company? If that story is not communicated, quality agents lose. Period. Moreover, to go after the insurance companies may not always be fair based on my anecdotal but very experienced knowledge of the coverage inadequacies. The problem is not always the company (although it may be more likely with certain direct/ captive situations because the distinction between the agency and the company is either lacking or blurred).

40 | INSURANCE JOURNAL | NATIONAL MARCH 6, 2017

The problem is not necessarily or even primarily that the insurance company is shorting the insured. If the insured does not have the right coverage because he or she bought insurance from an agent that failed to explain, advise, and promote the right coverages, then the fault is at least partially the agent’s depending on the applicable standard of care. We can distinguish between amateur agents for which the homeowner really is a caveat emptor situation (Leonard v. Nationwide U.S. District Court S.D. Mississippi, Southern Division) and those situations involving professional agents. But in either case, none of the articles or television reports I’ve seen even mention how the disgruntled policyholders are upset with their agents. I have heard even less about them suing their agents. This is a blessing for the incompetent agents writing homeowners insurance. Heaven knows plenty of incompetent agents write homeowners insurance. It makes me sick every time I learn of how some agent has

INSURANCEJOURNAL.COM

convinced a homeowner they only need 80 percent of their ITV. I’m seeing a number of potential E&O claims already being filed relative to recent catastrophes. My data is clearly partial and imperfect, but based on what I see, many claims are due to pure, sometimes gross, agent incompetence. It is embarrassing. A key question then exists if all the incompetent agents are captives/direct or independent agents. If the company is the agency, maybe the consumer attacking the company makes sense. It’s half a dozen of one and six of another. For independent agents, the agent should be sued for incompetence if it is a coverage issue for a common coverage that should have been offered assuming the agent is acting as a professional. That is not the company’s problem. I am not writing of hard to find coverages or obscure endorsements. I am not concerned with situations where the insured fails to disclose or even misrepresents. I am writing of 100 percent ITV’s to the best of a reasonable person’s ability (allowing for the huge degree of honest variance when completing ITV’s), updated regularly (the inflation factors only apply if

INSURANCEJOURNAL.COM

the homeowner makes no material changes to their home and people regularly make such improvements). I am writing of offering the replacement cost endorsements, extra O&L, extra additional expenses, additional care for outbuildings, and schedules. Flood is a great idea, too, as is earthquake in many areas. Umbrellas should almost always be offered. Just because you, the producer or the CSR, have become Karnak and can predict that no point exists in offering coverages “you know” the client will not purchase, does not mean you should not at least document their rejection. Karnak type knowledge does not hold up in court.

Incompetent Agents

My experience in conducting E&O audits and due diligence for 25 years is that the problem is not usually the insured. The proximate cause of loss is the fact that agents do not offer the applicable coverages. I state this as a fact because 90-plus percent of the agents I’ve audited or met do not use coverage checklists with any consistency if they use them at all. If a coverage is not offered, a client cannot buy it. The opportunity for professional independent agents, truly professional independent insurance agents, is great. The silence of professional independent agents is thunderous and damaging. Silent professional agents pay the price for the incompetent agents because in a barrel of bad apples, the few good ones are going to get thrown out with all the others. The standard of care gets reduced and the lower the standard of care, the less important it is to be professional. The less important it is to be professional, the more commoditized insurance will become. E&O suits against incompetent agents, rather than railing against unfair insurance companies, serves a valuable purpose for the professionals in this

industry. It distinguishes between the amateurs, snake oil salesmen, confident men and women versus professionals. Truly professional agents will benefit if courts and regulators, and especially companies, recognize the difference between these two classes. The time is great to stand proud and take a stand against incompetence. Share this article with a col-

league. IJMAG.COM/306EA Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-485-3868. Email: chris@burand-associates.com

Advertisers Index

Read, browse, contact, or do product searches on any of our full page advertisers at: www.insurancejournal.com/adshowcase/

Abram Interstate www.abraminterstate.com W9 Anderson & Murison www.andersonmurison.com 23 Applied Underwriters www.auw.com 44 Aspen Insurance www.aspen-insurance.com 13 California Earthquake Authority mvp.earthquakeauthority.com 2 First American Specialty Insurance Co. www.firstam.com W11 FSLSO www.fslso.com 9 Fujitsu www.fcpa.fujitsu.com 3 General Star www.generalstar.com W5; S5; E5; M5 Golden Bear Insurance Company www.goldenbear.com W13 Great American Insurance Group www.gaig.com 15 IIA of Houston www.iiah.org SC8 Lighthouse Holdings, LLC www.lighthousepropertyins.com SC9; S9 Louisiana Commerce & Trade Assoc. www.lctacomp.com SC10, S9 M.J. Hall & Company www.mjhallandcompany.com W15 Midlands Management Corporation www.midlandsmgmt.com SC7 Monarch E&S Insurance Services www.monarchexcess.com W17 NAPSLO www.napslo.org 21 National General Insurance www.nationalgeneral.com 7 Nationwide E&S www.wearenownationwide.com 5 Nautilus Insurance Company www.nautilusinsgroup.com 2; W7 Pacific Gateway Insurance Services www.pgiainsurance.com W19 PersonalUmbrella.Com www.personalumbrella.com 43 St. Johns Insurance Company www.stjohnsinsurance.com S10 Texas Mutual www.texasmutual.com SC6 The Hartford Insurance Group www.thehartford.com W3; SC3; S3; E3; M3 United Fire Group www.ufgsolutions.com W21

MARCH 6, 2017 INSURANCE JOURNAL | NATIONAL | 41

Closing Quote Global Political Environment Puts Business Interruption Top of Mind

By Dan Tuman

ccording to the Summer/Fall 2016 Edition of the Clements Worldwide Risk Index, business interruption is the leading cause of losses for companies, multinational organizations and nongovernmental organizations (NGOs) that operate outside the U.S. Most business interruption is caused by property damage from fire and explosions, power blackouts, and catastrophic weather events like earthquakes and hurricanes. In recent years, organizations have come to terms with the fact that manmade risks like political violence and cyber-attacks are as much of a potential threat to global operations as environmental risks like weather and catastrophic perils. Political violence is a subset of political risk, which encompasses strikes, terrorism and civil disturbances. Preliminary results of the Winter/Spring 2017 Edition of the Clements Worldwide Risk Index point to both political violence and legislative risk as top losses for global companies. This is further evidence of the volatility

The pervasiveness of mobile devices has changed consumer expectations. that now often encompasses electoral and legislative activity, and its potential to contribute to instability — and with it, business interruption. Viewed through an even broader lens, concern about political risk, violence and government change/legislation indicates a global order — including global economic arrangements — under enormous stress. The United Kingdom's vote to exit the European Union is the most dramatic example of this dynamic. Other examples include:

Deliberate targeting of civilian activities: While civilians

and non-military economic enterprises have always been harmed by conflict, it has been accepted that they are not deliberate targets. The rise of groups and self-proclaimed states that deliberately target civilians has seriously challenged this norm. As disturbing, states are also now crossing this line with impunity. Attacks

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on hospitals, humanitarian relief operations and economic enterprises in Syria and Yemen are simply the most egregious examples. Deliberate business interruption is a daily occurrence in several countries.

Violent redrawing of borders: Armed groups and states

have used violence to redraw national borders in the Middle East and eastern Europe. While these new borders are often unofficial, they are real. They disrupt personal and business lives, close trade routes and upend supply chains. They also inject uncertainty that affects internal investment and external investors’ analyses.

Illiberal democracy: Eastern

Europe and the near East have witnessed the rise of “illiberal democracy.” These are movements and states that believe democratically elected officials can act with impunity, usually in the interest of the majority. Institutions and practices designed to protect minority

rights are weakened or eliminated. Any challenge to rule of law is a recipe for heightened risk. No one can be certain when any rights, including property rights, will be violated. In such an environment, politically motivated business interruption as a result of denial of access to operational centers can become a governance strategy. Global organizations are faced with a breadth of risks, but there are ways to manage risks through insurance. Organizations can benefit from the advice of an experienced broker to maximize the value of new insurance products to address these heightened risks. Business interruption is a large and growing concern, driven by challenges to the global economic and political order. Organizations can use new products to insure against risks that could interrupt activities and investment plans. Tuman is senior vice president of Sales at Clements Worldwide. INSURANCEJOURNAL.COM

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