Insurance Journal West 2020-03-09 by Insurance Journal

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March 9, 2020 • Vol. 98 No. 5

Contents

News & Markets

Fitch Sees Only ‘Modest Impact’ on U.S. P/C Insurance from Coronavirus

22 Board Finalizes Rule

Idea Exchange

Special Report

Closer Look: Why Delivery Apps Might Leave Clients Without Coverage

24 Special Report:

Is It Covered?: The Case of the ‘Holey’ Insurance

What Small Businesses Want

The Competitive Advantage: What Do Clients Really Want?

22 Progressive Continues

Spotlight: Coronavirus, Pandemics and Workers’ Compensation

Closing Quote: Why Banning Rating Factors Could Hurt Auto Even More

27 Homeowners Fail to

2020 Hospitality Risks Directory

Scaling Back Joint Employer Liability for Franchisees, Contractors

Hiring Drive, Looking for 8,000 New Employees Across Country

Protect Against Water Damage, Most Common Property Claim: Chubb

Departments

6 Opening Note

6 | INSURANCE JOURNAL | MARCH 9, 2020

12 Declarations

12 Figures

14 People

18 Business Moves

48 My New Markets

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Opening Note Write the Editor: awells@insurancejournal.com

Homeowners' Satisfaction

.S. homeowner insurers are doing a better job than ever making their customers happy when responding to claims, according to J.D. Power. Results of the firm’s Property Claims Satisfaction Study show that overall customer satisfaction with the property claims process reached a record high of 881 on a 1,000-point scale. When a claim is filed with a homeowners insurance company it is a make-or-break opportunity for the carrier to positively engage with its customer, and, according to the J.D. Power 2020 U.S. Property Claims Satisfaction Study, insurers are rising to the occasion. Not only is overall customer satisfaction with the property claims process at a record high, yearover-year improvements have been realized across the majority of insurers evaluated in the study. The 2020 J.D. Power U.S. Property Claims Satisfaction Study found that: • The overall customer property claims satisfaction with homeowners insurance score of 881 (on a 1,000-point scale) represents the highest overall customer satisfaction level among all current J.D. Power consumer-based service studies in the United States and Canada, including auto claims (868); mail order pharmacy (867); and direct banking (860). • Two of the factors most likely to drive homeowners insurance customers to shop their policies with other carriers are claim-related premium increases and the necessity of exerting a high level of effort to get the claim resolved. When homeowners insurers miss the mark on these two factors, overall satisfaction decreases by 85 points and customers become 13.5 times more likely to shop for a new policy. • Digital solutions for first notice of loss (FNOL) and estimation, along with self-service account management tools are having a positive effect on convenience and speed of the claims process, but few claimants say they are ready for fully digital claims. More than one-fourth (27%) of customers still prefer the entire claims process to be handled offline and just 4% say they would prefer a digital only claims experience.

Overall customer satisfaction with the property claims process has reached a record high.

Amica Mutual ranks highest in property insurance claims experience for a ninth consecutive year, achieving a score of 902. The Hartford ranks second with a score of 896, followed by Farmers with a score of 893. The U.S. Property Claims Satisfaction Study measures satisfaction with the property claims experience among insurance customers who have filed a claim for damages by examining five factors (listed in order of importance): settlement; claim servicing; FNOL; estimation process; and repair process. The 2020 study is based on responses from 6,025 homeowners insurance customers and was fielded between April and December 2019.

Andrea Wells Editor-in-Chief 8 | INSURANCE JOURNAL | MARCH 9, 2020

Publisher Mark Wells | mwells@wellsmedia.com Chief Executive Officer Joshua Carlson | jcarlson@insurancejournal.com

ADMINISTRATION / CIRCULATION

Chief Financial Officer Mark Wooster | mwooster@wellsmedia.com Circulation Manager Elizabeth Duffy | eduffy@wellsmedia.com Staff Accountant Sarah Kersbergen | skersbergen@wellsmedia.com

EDITORIAL

Chief Content Officer Andrew Simpson | asimpson@insurancejournal.com Editor-in-Chief Andrea Wells | awells@insurancejournal.com East Editor Elizabeth Blosfield | eblosfield@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 & Contributors

Contributors: Chris Boggs, Jeffrey Brewer Columnists: Chris Burand, Bill Wilson

SALES / MARKETING

Chief Marketing Officer Julie Tinney | jtinney@insurancejournal.com West Sales Dena Kaplan | dkaplan@insurancejournal.com Romeo Valdez rvaldez@insurancejournal.com South Central Sales Mindy Trammell | mtrammell@insurancejournal.com Southeast and East Sales (except for NY, PA, CT) Howard Simkin | hsimkin@insurancejournal.com Midwest Sales Lisa Whalen | (800) 897-9965 x180 East Sales (NY, PA and CT only) Dave Molchan | (800) 897-9965 x145 Sales & Marketing Coordinator Ashley Berg | aberg@insurancejournal.com Advertising Coordinator Erin Burns | eburns@insurancejournal.com Insurance Markets Manager Kristine Honey | khoney@insurancejournal.com Senior Strategist Pam Simpson | psimpson@insurancejournal.com Social Media Manager Ly Short | Lshort@insurancejournal.com Marketing Administrator Gayle Wells | gwells@insurancejournal.com Marketing Director Derence Walk | dwalk@insurancejournal.com

DESIGN / WEB / VIDEO

V.P. of Design Guy Boccia | gboccia@insurancejournal.com V.P. of Technology Chris Thompson | cthompson@insurancejournal.com Ad Ops Specialist Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Terrance Woest | twoest@wellsmedia.com Web Developer Ryan Kleshinski | rkleshinski@wellsmedia.com New Media Producer Bobbie Dodge | bdodge@insurancejournal.com Videographer/Editor Ashley Waldrop | awaldrop@insurancejournal.com

ACADEMY OF INSURANCE

Director Patrick Wraight | pwraight@ijacademy.com Online Training Coordinator Nathan Granitz | ngranitz@ijacademy.com

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Property

Workers Compensation

News & Markets Fitch Sees Only ‘Modest Impact’ on U.S. P/C Insurance from Coronavirus

he coronavirus (COVID-19) outbreak is not currently anticipated to have a meaningful adverse impact on financial results reported by U.S. property/ casualty companies, nor their ratings, according to Fitch Ratings. The nature of insured commercial exposures along with restrictive language embedded in policy contracts will likely limit U.S. P/C carriers from a material level of claims, the analysts said. The most notable and immediate financial impact will be fluctuations in capital levels for companies with large common stock holding, given recent market downturns tied to the virus. In a broad sense, traditional property/ casualty insurance products protect against damage to physical objects such as cars, homes and factories, as well as various liability-related risks. Fitch noted these P/C products have limited direct exposure to claims related to a pandemic. More specialized lines that would potentially have more direct exposure include travel insurance, which provides reimbursement 10 | INSURANCE JOURNAL | MARCH 9, 2020

to travelers for canceled trips. However, contract language varies and pandemic-related cancellations are often excluded, the analysts added. The risk of pandemic-related claims could arise in business interruption insurance or contingent business interruption policies. Typically, however, most business interruption policy language requires some form of property damage for coverage to apply. Thus, an interruption of business activity — for example, a factory shut down due to general government guidance for workers in a certain city to stay home — would likely not be covered. However, if a factory was shut down on fears it was contaminated by infected workers or equipment, this likely could be covered. Even in this case, claim exposures would likely be limited by policy sub-limits, according to the advisory. Event cancellation is one area of insurance that may have losses. The largest event taking place is the Tokyo Olympics in July 2020. According to Fitch, industry

experts anticipate coverage of approximately $2 billion for this event, with the large risk spread among several insurance companies. Fitch said the scope of risk under liability policies is harder to predict, but could include the case in which a company experiences some outbreaks among its workers and is sued on the view that it failed to take adequate or reasonable steps to protect its other workers. Fitch estimates that the U.S. P/C industry has approximately 50% of its surplus invested in common stock with an additional exposure to alternative investments that have equity like return characteristics. Therefore, a 20% decline in the equity market would cause pre-tax unrealized losses of approximately 10% of statutory surplus, resulting in lower but still adequate capitalization ratios. Favorably, the majority of assets are invested in high quality fixed income securities, but any reduction in interest rates would have a lagging impact on investment yield. INSURANCEJOURNAL.COM

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Figures $734

The number of fatalities on Kentucky roadways in 2019, according to the Kentucky Transportation Cabinet’s Office of Highway Safety, an increase of 10 compared to 724 deaths in 2018. The governor has called for a $100 million investment in the state’s Highway Safety Improvement Program and the installation of more than 100 miles of guardrail across the state.

$4.8 Million The amount Riverside Community School District in Iowa will pay to settle a lawsuit brought by the family of a 16-year-old girl who died in a 2017 school bus fire. Megan Klindt died when the bus became stuck in a ditch, leading to a fire in the engine compartment that spread to the passenger compartment. The fire also killed driver Donnie Hendricks, 74. Klindt’s family sued for negligence and wrongful death in 2018, saying the district knew Hendricks was in poor health and still allowed him to drive the bus.

Declarations Not High Time

“This bill is not about getting high. This bill is about getting well.” — Dr. Alan Shackelford, a Colorado doctor who described the success of using medical marijuana on people with seizures and cancer at the Alabama Statehouse. Shackelford is one of many advocates who urged Alabama lawmakers to pass medical marijuana legislation this year. The bill passed the Senate Judiciary Committee in February. It would allow use of medical marijuana with a doctor’s recommendation for 15 conditions, including cancer, anxiety and chronic pain.

12 | INSURANCE JOURNAL | MARCH 9, 2020

Full Compensation Measure

“This is a crucial piece of legislation that helps survivors of violent crimes receive the full measure of compensation awarded to them by the jury.” — Ohio state Rep. Allison Russo, co-sponsor along with Rep. Kristin Boggs, of HB 518, which would lift caps on pain-and-suffering awards in rape victims’ lawsuits. The bill stems from a 2016 Ohio Supreme Court ruling that tossed out a $3.6 million jury award to a woman raped by her pastor at age 15. The court reduced the award to about $385,000 based on a 2005 law meant to limit lawsuit awards.

Asbestos Contamination

“What we’ve seen time and again is the District’s willingness to throw caution to the wind and as a result put children and educators at risk.” — The Philadelphia Federation of Teachers President Jerry Jordan said in a statement regarding the union’s lawsuit against a Philadelphia school district. The union, representing public school teachers in Philadelphia, is suing the district over its handling of asbestos contamination in schools.

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$183,302 The amount in damages a Louisiana appeals court said should be awarded to McKinley High School student Tristen Rushing, who was hospitalized after being ordered to perform 200 pushups for turning up late to band practice. Rushing was hospitalized with muscle and kidney issues stemming from the punishment; he and his mother Melissa Rushing sued the East Baton Rouge Parish School Board, McKinley High and the school’s former volunteer assistant band director, Jason Jones, in 2015.

$125,000 That’s the size of settlement Fort Collins, Colo., reached with a woman who sued the city after an off-duty police officer pinned her to the ground outside her apartment complex. A city spokeswoman confirmed the settlement with Kimberly Chancellor, who sued after the October 2017 incident. The lawsuit alleges the officer grabbed her arm, shoved his badge in her face and pulled her back toward her car while demanding her license and registration. He is accused of throwing her to the pavement and pinning her to the ground.

No Tsunami Construction

“It’s just probably best not to put things into the tsunami zone at all, no matter how strongly they build them.” — Chris Goldfinger, an Oregon State University professor and an earthquake geologist, says lawmakers are making a big mistake by allowing the construction of critical facilities in tsunami inundation zones.

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Act of God

“The damage was caused by Hurricane Harvey, and such a hurricane is an Act of God, which the government neither caused nor committed.” — U.S. Judge Loren A. Smith of the Court of Federal Claims ruled the U.S. Army Corps of Engineers isn’t liable for flood damage to thousands of Houston homes after Hurricane Harvey, because they would have flooded anyway. Smith said property owners downstream of the Addicks and Barker dams had no grounds to sue given the unprecedented nature of Harvey’s flooding in 2017.

Vehicle Safety

“We’re raising the bar for safety technologies in our new vehicles.” — Acting National Highway Traffic Safety Administration chief James Owens says his agency will make changes this year to a testing program that assigns safety grades to new and future vehicles, such as those using semi-automated driving technology. His announcement came after the U.S. National Transportation Safety Board chided regulators for lagging their European counterparts in efforts to ensure consumer and road safety.

MARCH 9, 2020 INSURANCE JOURNAL | 13

People National

Specialty insurer Everest Insurance has appointed Mike Karmilowicz to be executive vice president and president of North America P&C. He will be responsible for all property and casualty insurance underwriting units and direct brokerage business for the Everest Insurance North American platform. Karmilowicz joined Everest in July 2015 and most recently served as senior vice president and president of Everest Specialty Underwriters (ESU). He also held management responsibility for Specialty Insurance Group's (SIG) sports, entertainment and leisure insurance unit. Prior to joining Everest, Karmilowicz worked at Zurich Financial Services for six years and before that at The Hartford and Reliance National, each for about nine years. In his new job, Karmilowicz will partner with Vincent Vandendael, CEO of Everest Global Markets.

East

Distinguished Programs,

a national insurance program manager, has promoted Tom Lane. A sales professional with Distinguished Programs for more than 14 years, Lane assumes the role of regional sales executive for New York State, Manhattan, Bronx and Staten Island, as part of the company’s expanded sales team in 2020. He is based in Manhattan. In his new role, Lane will represent the complete range of Distinguished Programs insurance products across all industry service sectors. Lane has served as a relationship manager/commercial insurance broker specializing in hospitality, real estate

and gaming for Distinguished Programs. Working through a network of retail brokers and agents in Connecticut, Massachusetts, New Jersey, Pennsylvania and New York, Lane has been responsible for the distribution of insurance solutions in those industry sectors. Prior to his role with Distinguished Programs, Lane spent 11 years with Aon Corp. serving as assistant vice president.

surplus lines wholesale broker of specialty products and services. It specializes in property, casualty, transportation, DIC, builders risk and professional lines coverage.

CRU Group U.S. CEO David Repinski has announced that Adam Norman was hired as

Pinnacle Actuarial Resources, Inc. has named Tim Mosler

vice president for the Northeast region. In this role, Norman is responsible for CRU Group’s operational service delivery and client relationships across this multi-state territory. Norman’s background includes claims technical, operational and client-facing experience. He and his family will remain based in Boston, Mass. He will report directly to Repinski and serve on the U.S. Leadership Team.

Southeast

Kevin Burns

Maximum, an independent,

Chicago-based excess and surplus lines wholesaler, has hired Kevin Burns to its Tampa, Fla.-based team. Burns has nearly a decade of experience in the property and casualty sector and will continue to broaden his reach and industry knowledge with a move from South Carolina to Florida. Maximum is a national and

14 | INSURANCE JOURNAL | MARCH 9, 2020

Tim Mosler

Actuarial consulting firm

as a principal and consulting actuary. He will continue to be based in the firm’s Atlanta, Ga., office. Mosler joined Pinnacle in 2014 and has been in the property and casualty insurance industry since 1996. He has been a consultant since 2001, specializing in medical professional liability, workers’ compensation, general liability and commercial automobile insurance. His clients include insurance companies, captives, health systems, self-insurance funds and government risk pools. Mosler previously served as director and consulting actuary and a member of Pinnacle’s executive team. He currently leads Pinnacle’s research function, which keeps the firm ahead of major trends, directions and innovations in the insurance industry and actuarial profession.

Sharon Edwards

Risk Strategies, a privately held, national insurance brokerage and risk management

firm, has appointed Sharon Edwards as chief operating

officer. She will join the firm’s executive committee and lead its operating committee, immediately assuming oversight and management responsibilities for national operations. Edwards previously served as chief financial officer (CFO) of Willis Towers Watson’s corporate risk and broking segment, as well as CFO for Willis Towers Watson’s North America segment. Edwards’ experience also includes several roles spanning finance, shared services, operations, integration and large-scale system implementations. She served as co-chair of Women at Willis Towers Watson, a diversity and inclusion group. Edwards also worked for Arthur Andersen, focusing on the healthcare, senior living and financial services industries. At Risk Strategies, Edwards will lead improvements in client experience, with a focus on consistent associate experience.

South Central

R-T Specialty LLC has promoted Claudia May, based

in Houston, to co-president of the company’s national personal lines practice. May has concentrated on personal lines since the start of her career more than 25 years ago. She comes to RT via the March 2019 acquisition of Myron Steves, where she was the executive director overseeing the Personal Lines business and a part of the company’s executive committee. RT has made other changes to the leadership of its personal lines practice. Dave Adcock

continued on page 16 INSURANCEJOURNAL.COM

People continued from page 14 has been named a co-president in RT Specialty’s National Personal Lines Practice, and Jason Lentz has been tapped to serve as RT Specialty’s national practice leader within its Private Client Group. Adcock is based in Richmond, Va., and Lentz is in the Las Vegas, Nevada, office.

Jim Siddons

Chris Scott

Austin, Texas-based Watkins Insurance Group expanded its executive team with the addition of Jim Siddons and Chris Scott as shareholders. These appointments increase Watkins Insurance Group executive team to 11. Siddons joined the agency in 2014 and has been instrumental in building its Bond department. Scott, a native Austinite, has been with the agency for three years and assumes the dual role of chief financial officer and chief operations officer. Founded in 1949, Watkins Insurance Group has locations throughout Texas. The agency provides tailored insurance, employee benefit and bond solutions for risks of all sizes.

Midwest

Robert J. Klonk has been

appointed chairman and CEO of the Cleveland, Ohio-based independent risk management

and insurance brokerage firm,

Oswald Companies.

Robert Klonk

Klonk has served as CEO since January 2013 and has led the firm to expansive growth during his tenure. He is entering his 25th year with Oswald Companies and has 40 years of industry experience. This transition marks a final step in a succession plan the firm initiated in 2012. Oswald Companies, founded in 1893 in Cleveland, is employee owned. The firm has grown to employ 430 team members across seven office locations including Northeast Ohio (Cleveland, Akron and Medina), as well as Columbus, Cincinnati, Detroit and Toledo. Oswald Companies is a member of Assurex Global, the global association of privately held insurance brokers.

Lisa Messerschmidt

Integrity Insurance, a property and casualty carrier headquartered in Appleton, Wisc., promoted Lisa Messerschmidt to commercial lines underwriting manager. Messerschmidt will be responsible for leading a group of commercial lines underwriters and commercial field underwriters to ensure sustained growth, profit and execution of Integrity’s business objectives through underwriting, portfolio

16 | INSURANCE JOURNAL | MARCH 9, 2020

management and customer service. Messerschmidt has 15 years of commercial insurance experience. She joined Integrity in 2018 as a senior commercial lines underwriter. Integrity Insurance, established in 1933, offers auto, home, business and life insurance protection through a network of independent agents throughout Iowa, Minnesota and Wisconsin.

Christopher Bromiley

Bromiley will focus on primary and excess placements for difficult construction-related risks. Prior to joining AmWINS, Bromiley was with wholesale brokerage firms, including RT Specialty and CRC Insurance Services. AmWINS Group is an independent wholesale distributor of specialty insurance products.

Robert Qaoud

Valley Insurance Agency Alliance (VIAA), based in St. Louis, Missouri, promoted

Robert Qaoud to director of

performance. His responsibilities include providing resources to member agencies, integrating new members into the alliance and maintaining relationships with strategic partner carriers and vendors. Qaoud has worked at VIAA for six years in various capacities including in recruitment and as an alliance coordinator and a resource facilitator. He will continue to utilize and strive to improve the company’s efficiency as an active liaison among prospects, VIAA and its members. Founded in 2006, VIAA’s membership includes 130 independent insurance agencies in Missouri and Illinois.

West

AmWINS Group Inc. has named Christopher Bromiley as vice president and

casualty broker in the AmWINS Insurance Brokerage of California’s Los Angeles office.

Summer Jenkins

Cannasure Insurance Services has named Summer Jenkins a senior product

development manager. Jenkins is based in Sacramento, Calif., and reports to Kieran O’Rourke, director of underwriting. Jenkins has more than 20 years of foreign and domestic underwriting, program and product development experience with expertise in cannabis operations, captive formation, construction, healthcare and environmental risk management. Prior to joining Cannasure, Jenkins was senior program manager for commercial auto/ cargo cannabis programs at CannGen Insurance Services LLC. She previously held underwriting positions with a California-based commercial agency and a risk management organization. Cannasure is a cannabis and hemp MGA and wholesaler. INSURANCEJOURNAL.COM

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Business Moves

National

ProAssurance, NORCAL

Healthcare liability insurer ProAssurance Corp. has agreed to acquire medical professional liability insurer NORCAL Mutual Insurance Co. following NORCAL’s demutualization in a $450 million transaction. Based on available estimates of premium, the combination of these companies is expected to create the nation’s third largest specialty writer of liability insurance for healthcare professionals and facilities. Pennsylvania-based NORCAL writes in 39 states. It reported $342 million in direct written premium in 2018 and $50 million net income. The company’s underwriting performance and overall profitability have “deteriorated sharply recently driven by significant adverse reserve development,” according to Fitch Ratings, which does not rate NORCAL but placed its “A” ratings for ProAssurance on negative watch following the deal announcement. Headquartered in Birmingham, Alabama, ProAssurance serves more than 54,000 healthcare providers in 49 states. The company had annualized medical professional liability gross written premium of approximately $475 million and assets of more than $4.8 billion at Sept. 30, 2019. The boards of directors for both companies have approved the transaction. The companies are hoping to close the transaction by the end of 2020, subject to required approvals. ProAssurance said it will pay a base consideration of $450 million in cash, with 18 | INSURANCE JOURNAL | MARCH 9, 2020

a contingent consideration of up to $150 million should ultimate loss estimates as of the acquisition date develop favorably. In addition, NORCAL will have the opportunity to nominate two individuals to new seats on the ProAssurance board.

East

Alera Group, Sylvia Group

Alera Group, a national employee benefits, property and casualty, retirement services and wealth management firm, has acquired Sylvia Group, effective Dec. 31, 2019. Located in Dartmouth, Mass., Sylvia Group has been serving clients throughout New England since its founding in 1950. It aims to provide clients with solutions in personal insurance, business insurance, employee benefits and financial planning. Sylvia Group has expertise in serving nonprofits and startups, making them a key partner for organizations throughout the region. All Sylvia Group employees will continue operating out of the firm’s existing location under the name Sylvia Group, an Alera Group Company LLC. Based in Deerfield, Ill., Alera Group’s more than 1,800 employees serve thousands of clients nationally in employee benefits, property and casualty, retirement services and wealth management.

The Hilb Group, BR Vital Brokerage

The Hilb Group LLC has acquired New York-based BR Vital Brokerage Inc. The transaction became effective January 1,

2020. Based in Brooklyn, N.Y., BRV is an independent brokerage primarily providing property and casualty insurance with a specialty in providing liability coverage to medical professionals. Steven Bykovsky, owner of BRV, will continue to lead BRV’s associates out of its existing location in Brooklyn. THG is a middle market insurance agency headquartered in Richmond, Va., and is a portfolio company of global investment firm, The Carlyle Group. THG seeks to grow through targeted acquisitions in the middle market insurance brokerage space. The company now has more than 90 offices in 20 states.

The Hilb Group, Martens Johnson Insurance Agency

The Hilb Group LLC has acquired Maryland-based Martens Johnson Insurance Agency Inc. The transaction became effective January 1, 2020. MJIA is a full-service insurance agency focused on the unique needs of the commercial transportation industry in the Maryland and Washington, D.C., metro areas. MJIA’s associates will continue to operate out of their current office under the management of Agency Leader Bryan Johnson following the acquisition. THG is a middle market insurance agency headquartered in Richmond, Va., and is a portfolio company of global investment firm, The Carlyle Group. THG seeks to grow through targeted acquisitions in the middle market insurance brokerage space. The company now has more than 90 offices in 20 states.

CoreLogic, Location

CoreLogic, a global property information, analytics and data-enabled services provider, has completed the company’s acquisition of Location Inc., a Worcester, Mass.-based leader in geographic data sciences and predictive, location-based analytics for businesses across the U.S. and Canada. Location Inc.’s proprietary RiskSuite and NeighborhoodScout solutions combine the company’s spatial and property risk

continued on page 19 INSURANCEJOURNAL.COM

News & Markets Alleged Family-Run Auto Insurance Fraud Ring Snared in California

alifornia Department of Insurance detectives arrested seven suspects on 31 felony charges of auto insurance fraud for their alleged involvement in a family-run organized auto fraud ring dubbed Operation Car Seats. Suspects allegedly filed dozens of fraudulent false insurance claims using receipts for high-end child car seats costing an average of $950 each to claim a higher undeserved payout from insurers. The fraud resulted in a nearly $180,000 loss to the insurer. After receiving a tip from the insurer, the CDI launched an investigation which revealed that from 2014 to 2017, alleged ringleader, Lawanda Bogan, 42, of Long

Beach, conspired with family members and close friends to file 32 false insurance claims to an insurer totaling $179,106. The suspects claimed multiple high-end child car seats costing an average of $950 each were in the vehicles at the time of the accidents and submitted fraudulent digitally altered receipts for the car seats to pad their claims to receive higher, undeserved insurance payouts. The car seats accounted for $77,897 of the insurer’s loss. The investigation also found that multiple claims were for accidents that never took place, also called “paper collisions.” To further substantiate the alleged fraud, the suspects submitted digitally altered medical bills and vehicle repair bills. This case is a part of the Los Angeles County Automobile Insurance Fraud Task

Force, which is comprised of the CDI, California Highway Patrol, and the Los Angeles County District Attorney’s Office. The case is being prosecuted by the Los Angeles County District Attorney’s Office Automobile Insurance Fraud Unit. The suspects are: • Lawanda Bogan (42) of Long Beach – 18 Counts of 550(b)(1) – Insurance Fraud. • Jasmine Jackson (31) of Long Beach – 3 Counts of 550(b)(1) – Insurance Fraud. • Anthony Ficklin (37) of Long Beach – 2 Counts of 550(b)(1) – Insurance Fraud. • Cozette Baldwin (58) of Bellflower – 3 Counts of 550(b)(1) – Insurance Fraud. • Natasha Bogan (39) of Bellflower – 5 Counts of 550(b)(1) – Insurance Fraud. • Claudia Nunez (50) of Carson – 7 Counts of 550(b)(1) – Insurance Fraud. • Sherrell Scott (31) of Inglewood – 8 Counts of 550(b)(1) – Insurance Fraud.

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News & Markets California FAIR Plan Can Offer Only Fire Insurance, Judge Says

fund that offers only fire insurance to California residents in wildfire-prone areas can’t be required to provide coverage for other hazards such as flooding or theft, a judge ruled in late February. Superior Court Judge Mary Strobel issued a preliminary injunction barring Insurance Commissioner Ricardo Lara from compelling the California Fair Access to Insurance Requirements Plan to offer comprehensive policies to homeowners who lost their property insurance because of the threat of wildfires.

California’s insurance industry pays into the FAIR Plan, a fund that sells coverage to people who can’t buy it through no fault of their own. Known as the “insurer of last resort,” it only offers fire insurance. Homeowners must purchase a second plan in the private market to cover other hazards. Devastating wildfires have plagued the

state in recent years, destroying thousands of homes. Those claims have cost insurance companies, who have responded by dropping fire insurance policies for many homeowners who live in fire-prone areas. In response those homeowners have relied on the FAIR Plan to provide coverage. In November, Lara ordered the FAIR Plan to begin selling comprehensive insurance plans starting in 2020. His goal was to save homeowners money by not forcing them to purchase multiple insurance plans. But the FAIR Plan Association sued Lara in December, arguing his order was illegal. The association said law only requires the plan to sell basic property insurance and argued Lara’s order would destabilize the insurance market because there would be no incentive for private companies to sell plans in wildfire prone areas. “The preliminary injunction in no way delays our efforts to advance those elements of the department’s order that we had already been working to implement, including increasing coverage limits and allowing credit card payments,” FAIR Plan Association President Anneliese Jivansaid said in a statement. Deputy Insurance Commissioner

Michael Soller said the goal is “to have an effective backstop for consumers” who cannot otherwise obtain insurance. “The FAIR Plan is an important safety net for consumers and it needs to modernize to meet the increasing challenge of wildfire risk,” Soller said. The FAIR Plan is not a state agency and is not funded by taxpayers. It is funded by private insurance companies, who are required to participate in the plan if they want to do business in California. FAIR Plan policies have increased an average of 8% per year since 2016, coinciding with some of the most destructive wildfires in state history. The Camp Fire in 2018 killed 85 people and generated $12 billion in insurance claims. Insurance companies in California have declined to renew nearly 350,000 policies since 2015 in areas at high risk for wildfires. That data, which comes from the state Department of Insurance, does not include information on how many people were able to find coverage elsewhere or at what price. The judge’s ruling came the same day state lawmakers introduced a bill requiring insurance companies to cover all existing homes, including those in areas prone to wildfires, as long as they meet new safety standards. The measure would also require insurers to give homeowners financial incentives for fire safety upgrades. Copyright 2020 Associated Press.

California Father and Son Charged With Auto Insurance Fraud

father and son from California have been charged with felony counts of auto insurance fraud after allegedly falsifying an insurance claim in order to receive an undeserved payout from an insurance company. The charges were filed in late February against Rashpal Virk, 57, and son, Arwinder Virk, 26, both of California. An investigation by the California Department of Insurance showed Rashpal insured his Ford F-150 with GEICO Insurance Co. Due to non-payment of W4 | INSURANCE JOURNAL | MARCH 9, 2020

premium, however, the policy lapsed in October 2018 and Rashpal’s vehicle was uninsured. On Nov. 26, 2018, Rashpal’s other son, Yadwinder, was driving the Ford F-150 when he reportedly rear-ended another vehicle causing damage to the front end of the F-150. Less than two hours after the collision, Rashpal purchased a new insurance policy with Progressive Insurance Co. On Nov. 29, 2018, three days after the accident occurred, Rashpal filed a claim

with Progressive and falsified details of how and when the accident and damage to the F-150 occurred. Both Rashpal and his son, Arwinder, reportedly made false statements in an attempt to receive an undeserved insurance payout of approximately $28,000. Arraignment for both suspects is set for April 21, 2020, at 8:30 a.m. at the Fresno County Superior Courthouse. This case is being prosecuted by Fresno County District Attorney’s Office Deputy District Attorney Victor Lai. INSURANCEJOURNAL.COM

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News & Markets

New Mexico AG Sues Google for Collecting Personal Data of School Children

ew Mexico Attorney General Hector Balderas filed a lawsuit against Google LLC alleging the tech giant is illegally collecting personal information from New Mexico school children under 13 in violation of the Federal Children’s Online Privacy Protection Act and New Mexico’s Unfair Practices Act. Google offers its G Suite for education products, including Gmail, Calendar, Docs, and other services, along with Google

Chromebook laptop computers, to school districts across New Mexico at no cost. In his lawsuit, the attorney general alleges that Google then uses its products to collect large quantities of valuable personal information, without their parents’ consent, from children under 13 who are often required by their schools to use these services. “Student safety should be the number one priority of any company providing

services to our children, particularly in schools,” Balderas said in a statement. “Tracking student data without parental consent is not only illegal, it is dangerous; and my office will hold any company accountable who compromises the safety of New Mexican children.” The types of information collected include geolocation information, websites visited, terms searched for on Google and YouTube, contact lists, and voice recordings. Federal law prohibits companies from collecting these types of information from children under 13 without parental consent. The New Mexico Office of the Attorney General filed a similar lawsuit against Google and several other tech companies in 2018, alleging illegal data collection from child-directed mobile apps. The companies have denied wrongdoing, and the case awaits a decision by a federal judge in Albuquerque. In addition to filing the suit, Balderas has communicated with schools across New Mexico and let them know that there is no immediate harm to the continued use of these products and that this lawsuit should not interrupt daily instruction in schools. Balderas also wrote a letter to Google’s CEO demanding that the company immediately cease the practice. Copyright 2020 Associated Press.

Arizona Court Rules Workers’ Comp OK for Cops’ High-Stress Situations

n Arizona court ruling stemming from a sheriff’s deputy’s encounter with a shotgun-wielding man says law enforcement officers can claim workers’ compensation benefits if diagnosed with PTSD or other mental conditions because of extraordinary high stressful incidents on the job. A Gila County deputy diagnosed with PTSD and his “injury-inducing stress, imposed upon the claimant by virtue of his employment, was sufficiently significant and noteworthy” to differentiate it from general stress caused by work, the Arizona Court of Appeals ruled. Mental injuries, illnesses or conditions don't qualify for worker’ compensation W6 | INSURANCE JOURNAL | MARCH 9, 2020

“unless some unexpected, unusual or extraordinary related to the employment” was a substantial contributing cause, the ruling said. The state industrial commission denied the Gila County deputy’s claim resulting from a 2017 incident in which the deputy had a shotgun pointed at his chest and face at close range by a man who was then shot and killed by the deputy and another officer. The shooting occurred outside a home

where the deputies went in response to a report of a person threatening to kill himself. The appeals court’s ruling said not all situations in which officers draw their weapons or use deadly force will result in claims that qualify for compensation. It still would have to be shown that the employment-related event caused the claimed mental injury, the ruling added. Copyright 2020 Associated Press. INSURANCEJOURNAL.COM

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News & Markets Oregon Resort Sued For $30M After Deaths of Skier, Snowboarder

he families of a skier and snowboarder who died on the same day at a central Oregon ski area jointly filed a wrongful death lawsuit seeking $30 million. The lawsuit filed in late February in Deschutes County Circuit Court contends Mt. Bachelor failed to warn of the risks of tree wells after weeks of snowfall. Tree wells are voids that form beneath trees and can kill people who fall into them. Falling in headfirst can lead to snow collapsing down onto the skier or snowboarder as they struggle to get out. Twenty-four-year-old Alfonso Braun of Bend and 19-year-old Nicole PanetRaymond of Eugene suffocated in tree wells in separate incidents on different parts of the mountain in 2018. The lawsuit against Mt. Bachelor owner Powder Corp. said the ski area “knew or should have known of the danger” after three weeks of snow that could produce tree wells “into which skiers and snowboarders could fall, become buried in snow, trapped and suffocate to death.”

The lawsuit said that both Braun, who was snowboarding, and Panet-Raymond, who was skiing, were within the ski area’s boundary when they fell into the tree wells. “These types of incidents caused by hazards naturally present in the mountain environment are thankfully rare,” said Mt. Bachelor President and General Manager John McLeod in a statement. “Our hearts and deepest condolences go out to the affected families and friends.” At about noon on March 2, 2018, Braun’s body was found under about 6 feet of snow in an area of the mountain called the West Bowls, which is for experts. He had been on the mountain with a friend, but they lost sight of each other. Panet-Raymond was reported missing at about 3:30 p.m. the same day. Searchers found her body about five hours later under 6 feet of snow in an area for inter-

mediate skiers. “They (Panet-Raymond and Braun) were both in-bounds in the area where the ski resort would expect them to be,” said Portland attorney Dan Dziuba, who is representing the families. “The resort knows people like to ski in the powder and that’s in the trees, and that’s where the tree wells are.” In March 2019, 53-year-old Kenneth Brundidge, an experienced skier from Oregon City, died on Mt. Bachelor after also falling into a tree well. Copyright 2020 Associated Press.

California Public Utilities Commission Fines PG&E $2.1B over Wildfires

he California Public Utilities Commission issued an administrative law judge decision imposing $2.137 billion in penalties against Pacific Gas and Electric Company for the utility’s role in the catastrophic 2017 and 2018 wildfires. If PG&E agrees to the modified settlement, and no party appeals and no commissioner requests review, it becomes the decision of the CPUC. The decision approves with modifications a settlement between PG&E, the CPUC’s Safety and Enforcement Division and Office of the Safety Advocate, and the Coalition of California Utility Employees. The decision increases the penalty amount in the settlement by $462 million and provides additional benefits to PG&E customers, including the return of any future tax savings when they are realized by PG&E to the benefit of ratepayers. PG&E shareholders would be liable for the $2.137 billion in penalties consisting of: W8 | INSURANCE JOURNAL | MARCH 9, 2020

• $1.823 billion in disallowances for wildfire-related expenditures (an increase of $198 million from the settlement agreement), meaning that PG&E shareholders will pay the cost of expenditures that it would otherwise seek to recover from customers • A $200 million fine payable to California’s General Fund (the settlement agreement did not include a fine) • $114 million in System Enhancement Initiatives and corrective actions (an increase of $64 million from the settlement agreement), including: Root cause analysis for wildfires where ignition involved PG&E facilities, and the implementation of recommended actions to prevent similar events; funding local Fire Safe Councils that focus on community-based wildfire prevention and mitigation efforts; funding to the California Foundation for Independent Living Centers to support the safety and

welfare of vulnerable customers before, during, and after disasters and Public Safety Power Shut-off events In addition, the modified settlement requires any tax savings associated with the shareholder payments to be applied to the benefit of PG&E’s customers. These benefits which PG&E shareholders would otherwise be expected to realize are likely to be in excess of $500 million. The wildfires that occurred in Northern California in October 2017 and November 2018 were unprecedented in size, scope, destruction, and loss of life. Following a CPUC staff investigation, the CPUC opened a formal investigation into the maintenance, operations, and practices of PG&E with respect to its electric facilities that were involved in igniting these fires, and to determine the appropriate penalties for violation of CPUC rules and regulations. INSURANCEJOURNAL.COM

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Midwest

LMC Insurance & Risk Management, AssuredPartners

LMC Insurance & Risk Management, headquartered in West De Moines, Iowa, has joined Florida-based AssuredPartners Inc.’s national broker team. LMC’s operations consist of 290 dedicated employees who will remain under the operational leadership of LMC President and CEO Greg LaMair. LMC’s founding dates back to 1865. The group provides property/casualty insurance, employee benefits, personal lines, financial services and risk management services. In addition to Des Moines, LMC has offices in Omaha, Neb., and Madison, Wis. LMC also has four additional licensed insurance subsidiaries, including Independent Insurance Services, Molyneaux Insurance, The Friedman Group, Inc. and Agri-Business Insurance Services, with offices in Iowa, Illinois, Ohio and Minnesota.

Arthur J. Gallagher, Affiliated Benefit Consultants

Arthur J. Gallagher & Co. has acquired Oakbrook, Illinois-based Affiliated Benefit Consultants Inc. Founded in 1986, Affiliated Benefit Consultants offers a full suite of benefits consulting services to clients throughout the United States. John Araujo and his associates will continue to operate in their current location under the direction of Tom Lannen, head of Gallagher’s Great Lakes region employee INSURANCEJOURNAL.COM

benefits consulting and brokerage operations. Arthur J. Gallagher & Co. is a global insurance brokerage, risk management and consulting services firm headquartered in Rolling Meadows, Illinois.

South Central USI, Forté Benefits

USI Insurance Services has acquired Fort Worth, Texas-based Forté Benefits, a full-service employee benefit broker-consulting firm. All of the agency’s employees and four partners — Logan Dickinson, Jeff Farmer, David Farrell and Bill Hester — will be joining USI. Headquartered in Valhalla, N.Y., USI delivers property and casualty, employee benefits, personal risk, program and retirement products and services to large risk management clients, middle market companies, smaller firms and individuals.

Southeast

Peel & Holland, Riddle Insurance

Peel & Holland Insurance has merged with Riddle Insurance of Madisonville, Ky., and its subsidiary, R. Barga and Company Insurance of Benton, Ky. The companies provide business property and casualty insurance, surety and bonding, family insurance, and employee benefits plans, along with workplace wellness programs. This merger, which was finalized Jan. 1, 2020, combines teams totaling 83 employees in seven regional office locations across Western Kentucky. From an operational standpoint, Riddle Insurance, R. Barga and Company, and Peel & Holland each will continue to function as independent insurance agencies with access to multiple carriers. Riddle Insurance targets the coal mining industry as well as serving agriculture and contractors. Peel & Holland is a privately-held independent insurance agency providing insurance products and services to businesses, individuals, employees, and public entities across 36 states. Established in 1924, Peel & Holland serves clients of all

sizes across a wide variety of industries. Areas of specialized expertise include agri-business, construction/contractors, churches, financial services, local government, non-profits, schools and workplace wellness programs. The company is headquartered in Benton, Ky., with offices also located in Franklin, Mayfield, Murray, and Paducah.

ITC, Agency Matrix

Insurance Technologies Corporation, a provider of websites, marketing, comparative rating and management software and services, has acquired Agency Matrix, an insurance technology provider headquartered in Georgia. Founded in 2004, Agency Matrix’s product offerings include its agency management system, insurance agency websites, document management, and a virtual employee. The acquisition of Agency Matrix will extend ITC’s agency management system offering. Through this acquisition, Agency Matrix clients will get access to ITC’s marketing products and services and TurboRater, ITC’s personal lines comparative rater. ITC’s clients will also be able to use the features available in the Agency Matrix agency management system. Agency Matrix, LLC is a Duluth, Ga.based technology company providing management system products to the insurance industry and small business owners. ITC is headquartered in Carrollton, Texas, and currently serves more than 200 insurers and more than 7,000 agencies.

West

AssuredPartners, Nevada West Business Insurance Agency

AssuredPartners Inc. has acquired Nevada West Business Insurance Agency Inc. in Las Vegas, Nev. The team of five will remain under the operational leadership of Jeff Maren. Nevada West Business Insurance Agency currently reports $1 million in annualized revenues. Lake Mary, Fla.-based AssuredPartners acquires and invests in insurance brokerage businesses across the U.S. and in London. MARCH 9, 2020 INSURANCE JOURNAL | 19

Closer Look: Auto Drivers at Risk:

Why Delivery Apps Might Leave Clients Without Coverage

By Patrick Wraight

ust a few years ago, a grocery run or a run to Chickfil-A was to get something you needed and bring it home. These days, it seems like a run anywhere can include a detour to help someone else. When you’re headed across town, you might turn your Lyft app on, letting them know you’re available for a ride or two. While you’re looking for something to calm that mid-afternoon snack attack, you might log in with Uber Eats and make a delivery, snacking along the way. That might create an issue for an insurance consumer’s personal auto policy. Ok, it

does create issues. The ISO Personal Auto Policy has a couple of exclusions that address these issues. We do not provide Liability Coverage for any “insured”: 5. For that “insured’s” liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This includes but is not limited to any period of time a vehicle is being used by any “insured” who is logged into a “transportation network platform” as a driver, whether or not a passenger is “occupying” the vehicle.

20 | INSURANCE JOURNAL | MARCH 9, 2020

a. A share-the-expense carpool; b. The ownership or operation of a vehicle while it is being used for volunteer or charitable purposes; or 7. Maintaining or using any vehicle while that “insured” is employed or otherwise engaged in any “business” (other than farming or ranching) not described in Exclusion A.6. This exclusion (A.7.) does not apply to the maintenance or use of a: a. Private passenger auto; b. Pickup or van; or c. “Trailer” used with a vehicle described in a. or b. above.

There isn’t (as of right now) an endorsement to provide coverage for the person driving for DoorDash, UberEats, or any of those other delivery services. The latest edition of the unendorsed ISO Personal Auto Policy (PP 00 01 09 18) gives us two clear exclusions related to what the customer is doing.

Commercial Exposures

ISO published and filed two endorsements to address transportation network drivers. INSURANCEJOURNAL.COM

(PP 23 41 09 18 and PP 23 45 09 18) but we are going to look at just one of them; PP 32 41 09 18 Transportation Network Driver Coverage (No Passenger). Without diving into the form, we realize from the title there is likely to be a coverage gap related to the passenger. Exclusion A.5. is replaced by the following: We do not provide Liability Coverage for any “insured”: 5. For that “insured’s” liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance. This includes but is not limited to any period of time a vehicle is being used by any “insured” who is logged into a “trans-

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portation network platform” as a driver, whether or not a passenger is “occupying” the vehicle. This exclusion (A.5.) does not apply to: a. A share-the-expense carpool; b. The ownership or operation of a vehicle while it is being used for volunteer or charitable purposes; or c. The ownership or operation of a vehicle during any period of time such vehicle is being used by an “insured” who is logged into a “transportation network platform” described in the Schedule or in the Declarations as a driver and a passenger is not “occupying” the vehicle if: (1) Such vehicle is described

in the Schedule or in the Declarations; and (2) A specific premium charge indicates that coverage under this Part is provided for such vehicle. The endorsement provides a schedule so the insured can know what coverages they have on this endorsement. If there is a premium shown for liability, medical payments, uninsured motorists, and collision, this endorsement provides those coverages while the insured has their Lyft app running. Notice it continues to exclude coverage when there is a passenger in the car. At that point, the transportation network’s coverage will pick up the exposure. Did you notice we’ve only dealt with drivers picking up

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passengers because of an app? This endorsement doesn’t mention anything about drivers tmaking deliveries. Unfortunately, this personal auto policy still includes a business exclusion. So, there isn’t (as of right now) an endorsement to provide coverage for the person driving for DoorDash, UberEats, or other delivery services. I’d watch for something to come for this exposure, but until then, the person delivering your McD’s might not have any insurance while zipping your way to deliver hot fries. Wraight is the director of the Academy of Insurance. Phone: 800-897-9965 ext. 130. Email: pwraight@ijacademy. com

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News & Markets Board Finalizes Rule Scaling Back Joint Employer Liability for Franchisees, Contractors

U.S. labor board finalized a rule that will make it more difficult to hold companies liable for unlawful labor practices by franchisees and contractors, reversing a more worker-friendly Obama-era standard criticized by business groups. The rule by the National

Labor Relations Board (NLRB) requires that companies have direct control over the working conditions of franchise and contract workers to be considered their “joint employers.” The issue is important for franchisors like McDonald’s Corp. or Burger King Corp. and the many companies that utilize staffing agencies,

because joint employers can be made to bargain with unions and found liable for violations of the U.S. law that governs union organizing. In a 2015 decision, NLRB members appointed by President Barack Obama said indirect control over working conditions could create a joint-employment relationship. Business groups have said that standard was too broad and would subject companies to liability even when they do not have the final say over employment-related decisions. The International Franchise Association, a trade group, said in a statement that the Obama-era standard had cost the U.S. economy more

than $30 billion per year and nearly doubled the number of lawsuits workers filed against franchise businesses. Unions and other opponents of the new rule have said it will deprive workers, particularly in low-income industries, of the ability to improve working conditions through collective bargaining. The left-leaning Economic Policy Institute estimated workers will lose $1.3 billion in wages annually as a result of the rule. The U.S. Department of Labor last April proposed a rule that would make it more difficult to prove companies are joint employers under federal wage law. The proposal is pending.

Progressive Continues Hiring Drive, Looking for 8,000 New Employees Across Country

nsurer Progressive said it intends to hire up to 8,000 new employees in 2020. With an increase in customers and total revenues topping $39 billion, the company said it needs more employees to support growth in auto, property, commercial lines and recreational products insurance at more than 250 U.S. locations. It currently employs 36,000 people. Last January, Progressive set about to hire 10,000 employees. A spokesman said the new goal of 8,000 is on top of the 10,000 hired last year. “Last year was monumental in terms of total numbers of hires, and as a result of

consistent growth, we are continuing to expand our workforce to meet the needs of our customers,” said Chief Human Resource Officer Lori Niederst. The company says its workforce has surged more than 57% in the last five years. Here is a breakdown of the approximate number of positions to fill: Austin, TX – 900 (customer sales, service, claims representatives, bilingual Spanish sales and customer service) Cleveland, OH – 1,500 (customer sales, service, multi-product sales, claims reps, marketing, legal, IT, business analysis and more)

22 | INSURANCE JOURNAL | MARCH 9, 2020

Colorado Springs, CO – 500 (customer sales, service, IT) Phoenix, AZ – 180 (customer sales, service, bilingual Spanish customer sales and service and claims representatives) Sacramento, CA – 80 (customer service, bilingual Spanish customer sales and service) Tampa, FL – 1,000 (customer sales, service, multi-product sales, claims representatives, bilingual Spanish sales and customer service) St. Petersburg, FL/ Nashville, TN – 270 (property claims, property customer

service, IT) More than half the jobs are based at larger Progressive campuses across the U.S., with others located in Progressive field claims offices in more than 250 locations. Across the country, the company is hoping to fill around 4,500 field claims roles, including claims adjuster trainees and claims adjusters in auto damage, bodily injury and rideshare functions. There are also nearly 400 work-from-home positions available in select locations for inbound sales positions. INSURANCEJOURNAL.COM

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Special Report: Small Business

By Andrea Wells

mall business doesn’t mean small-in-size when it comes to the commercial insurance market. Direct written premiums ranged between $99 billion and $103 billion in 2013, up from $91 billion in 2011, according to McKinsey & Co. “Small business insurance accounts for more than one-third of the U.S. commercial lines insurance market and is the fastest grow-

ing commercial segment when the economy is expanding,” according to McKinsey’s “Small Commercial Insurance” report. Small commercial is also a very fragmented segment of the property/casualty insurance market, ripe for expansion by carriers and agent partners dedicated to the space. “The small commercial insurance market is divided among many carriers, with the largest accounting for only 6% of total premiums,” according

24 | INSURANCE JOURNAL | MARCH 9, 2020

to the McKinsey report. “Market share is particularly fragmented at the smaller end of the market (businesses with one to 29 employees). However, the largest carriers are moving quickly to secure their positions.” Jeff Kroeger, executive vice president of strategy and development at Insureon, an online independent marketplace for small businesses, says carriers and independent agents have an “incredible” opportunity to

gain market share in the small commercial space. Kroeger, who joined Insureon in December 2018 from The Hartford, said the carrier, which is the largest writer of small commercial in the industry that’s not a direct writer, has a book of a little more than $4 billion. “So, if the market is roughly $100 billion in size, then just look at the opportunity from a market share perspective.” That’s why this space is so attractive, INSURANCEJOURNAL.COM

Kroeger says. As the small commercial market shows increasing promise for growth, it also continues to reinvent how it operates, experts say. To find success in this space, agents and their carrier partners need to keep up with what small business owners want most. Small businesses today are shopping in different ways and will pursue carriers that adapt to their needs, Brian Smith, The Hartford’s vice president, small commercial product management, told Insurance Journal. He believes the small business market will continue to grow throughout 2020 and beyond and the needs of small business customers will continue to evolve along with that growth. “In the end, as a carrier or an agent you have to know the small business owner better than anybody and you have to offer them the products that fit them and the service that suits them,” Smith said.

Micro Market

One area of the small business market gaining attention is the micro small business world — small commercial accounts generally $2,500 or less in premium, says Amir Farid, chief operating officer of small business, at Westfield Insurance. Westfield sees the micro small business market delivering bigger opportunity going forward, he says. The micro market, which Farid says has been underserved, has consistently accounted for 55% or above of the small business market firms. While the small business insurance market share has remained fairly consistent INSURANCEJOURNAL.COM

among insurers serving the space, Farid says that’s changing. Farid says small business premium growth outpaces the overall commercial market and he believes that trend will continue to expand. “Now you are starting to see a lot of movement where large insurers are being drawn to the small business market in response to the competitive pressures that they are feeling in the more traditional segments,” he said. Along with increased competition, Farid sees a small commercial insurance market that’s evolving. “There is a lot of chaos in the fragmented small business market,” he said. “We believe [it] presents an opportunity for Westfield to provide a very simplified, educational, intuitive and digital customer experience." To gain market share, especially from direct and captive carrier channels, independent agency carriers need to take the friction out of the transaction, he says.

Transformation

Insureon’s Kroeger says the small business market has experienced incredible shifts and transformation when it comes to risk classification. “The gig economy is changing the traditional way of thinking about, what is a retailer these days? How many people actually have a physical location to insure versus [selling products or services] online, and how do you actually account for that to insure?” he said. “For the insurers, and it’s also the obligation of the distributor, but for the insurer to get the classification right is to prove the actuary’s right

and the model’s right as far as profitability goes.” Jim Williamson, division president, Chubb Small Business, agrees. “The small business insurance market has evolved quickly over the last several years,” Williamson told Insurance Journal. Improved access to data, technology, and an expanding small business economy are key drivers of the evolution, attracting many carriers to the small commercial segment while also creating opportunities for agencies to grow their firms, Williamson added. In his opinion, “high touch models,” or those markets that cannot satisfy all the growing product needs of small businesses, such as cyber, D&O, and professional liability, “are struggling to gain adoption.” And refreshed versions of older products are not the answer that small businesses need, he said. “To manage this, independent agents need to partner with a carrier who can provide solutions for their local markets, provide cost-efficient service options through a carrier service center, and leverage data to reduce the number of questions needed to obtain a quote,” Williamson says. But it’s more than just efficiency in quoting, Kroeger said. Small business owners, like everyday consumers, want to do more themselves. “This is this sneaky thing that’s happening in the small business space, and where the nationals and some of the forward-thinking super regionals will advance themselves,” according to Kroeger. “The product set in small commercial is great, a BOP,” he

There are 30.2 million small businesses in the United States. Small businesses comprise 99.9% of all United States businesses. said. Carriers can spend a lot of money and time creating suites of endorsements, but it’s really about what’s wrapped around the product, adding value for the customer and small business, he said. Small businesses want what everyone else wants — service. And, Kroeger says, small businesses want to be able to self-service 24/7. For example, consider the small business owner who plows snow. “Let’s say it snowed in the middle of the night and I need to plow driveways at a mall. I need a certificate (of insurance). Well, my insurance agency’s closed, my carrier’s service center’s closed. What am I to do in that situation? Well, if I have an app, or even if I can use a desktop, to get online and generate that certificate, I’m pretty sure I will want to stay with that carrier, even if there’s a small premium increase.” That digital capability gives that insurance market a competitive edge, according to Kroeger. “The more that you can service the policy online, the better.” That’s why the small business insurance segment will continue to see investments to the customer experience, according to Williamson. He predicts heightened investments in: • Digital capabilities including third-party data and more

continued on page 26

MARCH 9, 2020 INSURANCE JOURNAL | 25

Special Report: Small Business continued from page 25

sophisticated pricing models; • Continued improvements in customer experience, including apps and self service tools; and • Customizable coverage options allowing the agent or customer to choose certain coverages and limits based on a small business’ unique needs.

Marketing

Enhanced digital capabilities around service is not the only tech-driven area receiving a boost for small business insurance. How agents and carriers reach potential customers is also changing. “Digital marketing is the future. It’s very different than it has been in the past,” says Cathy Allocco, Nationwide’s vice president of small commercial sales and distribution. Allocco says Nationwide partners with agents through a co-op program that allows agents to really lead with the agency’s brand and then just highlight their partnership with Nationwide. “But I think the bigger issue is that consumers and agencies really want value added services,” she said. “Most small businesses want to do easy, simple transactions on their time, when they have the time to do it. But when it comes to the more complex things that might impact either their rate or their coverages,

‘The small business insurance market has evolved quickly over the last several years.’

that’s when they really want the agency,” she said. Technology is driving the small commercial space, but it’s not just about technology. “It’s about expertise,” Allocco says. “What are the needs of small business customers? What are their demands, where are their gaps?” Small business consumers want to know that their agents and carriers understand their business. “The agency needs to be able to show the customer that they understand exactly what they do and exactly what their needs are,” Allocco added. Like Allocco, Chubb’s Williamson also believes marketing to small businesses is all about demonstrating that the agency and carrier understand their unique business needs and how to protect them in the event of a loss. “A small business owner’s primary focus is their business, not their insurance. They expect their agent and carrier to provide them with an insurance solution that will protect them, their employees and, effectively, their livelihood,” he said. To help agencies target businesses in their communities, Chubb uses data and analytics and works with agencies to develop campaigns, partners with local associations, and identifies growth opportunities. The Hartford’s Smith says delivering on promises to agents and customers is critical, too. “Trust is crucial and it’s the best brand association you can have,” he said. “The Hartford is a trusted brand and the independent agents are trusted in their communities. After that, nothing beats word of mouth for our agents.”

26 | INSURANCE JOURNAL | MARCH 9, 2020

Small business owners trust other small business owners, and they often ask each other where to go for insurance, Smith said. Providing useful content helps, too. “It can help quite a bit to have access to content that helps small business owners actually run their small businesses.” The Hartford makes available information helpful to small business owners through its Small Biz Ahead blog. “We make that content available for our agents to share on their social properties,” he said. “When you can demonstrate that you want to help small business owners be successful, it helps them see you as a trusted advisor, as a consultant.” Williamson says there is always room for improvement when it comes to carrier-agency coordination on marketing to small businesses. “Especially in analytics to identify the best small business targets and developing effective marketing campaigns, whether that is traditional direct mail, digital, or a combination,” he said.

Going Forward

From a macroeconomic standpoint, no one can predict the future stability of the small business market, but going forward, those looking to find success will need to adapt to change, Insureon’s Kroeger said. “The emerging workforce does not look like my folks who just retired,” he said. “The BOP was created in the ‘80s and it’s probably due for an update. ... There’s just going to be sweeping changes within the space because again you have this $100 billion addressable market.”

Middle market never makes any company money, he added. “I don’t care what anyone says. It just sounds really good because it’s got a big premium. But if you want a real annuity and profit center, it is in small [commercial] and I think you’re going to have more and more entrance into the space.” That alone will be a challenge. “It’s a significant challenge for brokers because you’re going to have so many companies with so many great offerings, but you still only get paid on your direct effective rate and your contingent commission. How do you actually deliver all of these great products, but still maximize your own profit center? It will be a challenge for brokers. At least brokers who care.” “These days you have to meet your customers where they are,” said The Hartford’s Smith. “As a carrier, there are multiple ways that customers want to have access to your product.” Even so, Smith pointed out that a recent survey by The Hartford found that 73% of small business owners stated that they shop with an agent or broker. “That local expertise is a requirement for most small businesses,” he said. “You have to do it all to position your agents to be successful.” Agents will continue to play a “major” role in Westfield’s small business strategy, Farid said. “Our strategy is to unify the experience and remove the friction from the transaction,” he said. “But ... we are [also] enabling this capability that allows us as a carrier to partner with our agents so we can collectively unlock the potential in the marketplace,” he said. INSURANCEJOURNAL.COM

News & Markets Homeowners Fail to Protect Against Water Damage, Most Common Property Claim: Chubb

here continues to be a disconnect between homeowner beliefs and behaviors, especially when it comes to protecting against the most common source of property-related damage: water. That’s according to the annual Chubb Homeowners’ Risk Survey, which found that when it comes to water damage, homeowners express concern about property protection yet continue to take a passive approach to risk management. The study found several inconsistencies between homeowner beliefs versus their actions: • The overwhelming majority of homeowners surveyed (89%) report being “very” or “somewhat” confident in their ability to check for possible damage or maintenance issues around their homes. But more than four million homeowners cost is more than $55,000, and the average still submit a property claim each year. water back-up loss for homeowners is • External weather threats and internal almost $45,000. water damage round out the top three Of those homeowners that tried to concerns for homeowners when it comes mitigate water risk, the Chubb survey to perceived home threats. Yet, no more found that many are not taking the right than one of every five homeowners steps. According to the survey, less than surveyed takes any single water-related 20% of respondents implemented any risk mitigation best practice. single water risk mitigation best practice. • Half of all homeowners (51%) think a plumbing or appliance water leak costs less While water is only becoming a greater threat to homeowners, for the most part, than $5,000 in damage. However, according to Chubb’s internal claims data from the percentage of homeowners taking the Despite an increase2018, in water-related property claims, to a largenecessary extent, homeowners are less likely to implement thefor the average water leak 2014 through risk mitigation best practices necessary safeguards than prior years.

Actions Taken to Prevent Water Damage 25 20

22%

21% 19%

20%

2017

21% 19% 19%

19%

2018 16%

2019

15% 15% 12%

11%

12% 10%

9% 9% 7%

5 0

Periodically checking appliance hoses

Home heating system inspection and maintenance

Water heater maintenance

Shutting off water supply when on vacation

Installing pipe insulation

Install water detection devices

Source: Chubb Homeowners’ Risk Survey According to the survey, however, there is one universal theme that compels INSURANCEJOURNAL.COM homeowners to act—extreme weather. In addition to ranking as the second most pressing property concern for

most popular are digital sources, with the majority (58%) turning to mobile apps or online weather sites first thing in the morning. Local and national broadcast weather reporters are less

water has decreased year-over-year. The report also said that homeowners often perceive claims for wind damage, which often occur in tandem to weather-related flooding incidents, to be much less than average claims. The Insurance Information Institute found that the average wind/hail claim runs $10,182. Unfortunately, 16% of homeowners believe the average corresponding damage to be under $1,000 and a quarter think it costs between $1,000 and $5,000. According to the survey, however, there is one universal theme that compels homeowners to act — extreme weather. In addition to ranking as the second most pressing property concern for homeowners, two-thirds of homeowners report that when reflecting back on their most recent home improvement or maintenance project, they were motivated by an approaching storm or in response to weather-related damage. “For comparison, just 21% took home protection measures as part of a planned renovation), 9% when getting ready to put their home on the market, and only 7% in response to a neighbor, friend or family member doing the same,” according to the report. MARCH 9, 2020 INSURANCE JOURNAL | 27

Spotlight: Workers' Compensation Coronavirus, Pandemics and Workers’ Compensation

pandemic is defined as, “an outbreak of a dis-

ease that occurs over a wide geographic area and By Chris Boggs affects an exceptionally high proportion of the population.” Although the media lives by the motto, “If it bleeds, it leads,” declaring a pandemic anytime more than a few people contract a virus, this time, even the World Health Organization (WHO) is warning of a possible Coronavirus (COVID-19) pandemic with one Coronavirus expert, Professor Gabriel Leung, Chair of Public Health at Hong Kong University, saying that unchecked, the virus could infect 60% of the global population. My intent is not to accuse the media of sensationalism, nor to intimate that WHO is overreacting (I don’t think they are); my purpose is to answer the question, what makes an illness an “occupational illness” and thus compensable under workers’ compensation? More specifically, how does or might workers’ compensation respond to the Coronavirus? Two tests must be satisfied before any illness or disease, including the Coronavirus, qualifies as occupational and thus compensable under workers’ compensation: 1. The illness or disease must be “occupational,” meaning that it arose out of and was in the course and

scope of the employment; and 2. The illness or disease must arise out of or be caused by conditions “peculiar” to the work. Whether an illness arises out of and in the course and scope of employment is a function of the employee’s activities. The simplest test toward determining whether an injury “arises out of and in the course and scope of employment” is to ask: Was the employee benefiting the employer when exposed to the illness or disease? Be warned, this “test” is subject to the interpretations and intricacies of various state laws. Qualifying as “occupational” is the low hurdle. The higher hurdle is whether the illness or disease is “peculiar” to the work. If the illness or disease is not peculiar to the work, it is not occupational and thus not compensable under workers’ compensation. An illness or disease is “peculiar” to the work when such a disease is found almost exclusively to workers in a certain

field or there is an increased exposure to the illness or disease because of the employee’s working conditions. For example, black lung disease in the coal mining industry is a disease that is peculiar to the work of a miner. Coal miners are subject to prolonged exposure to higher-than-normal concentrations of coal dust leading to black lung disease. This makes the disease peculiar to the coal mining industry. Another example of an exposure “peculiar” to the work is a healthcare worker contracting an infectious disease such as HIV or hepatitis as a result of contact with infected blood. The worker’s unusual or “peculiar” exposure to such diseases results in an illness that is occupational and compensable. Qualifying an illness or disease as occupational and, more importantly, peculiar to the work (and thus compensable) may ultimately require industrial commis-

sion or court intervention to sort medical opinion from legal facts. No one “test” is available to declare an illness or disease compensable or non-compensable; each case is judged on its own merits and surrounding circumstances. Concluding that an illness is occupational, peculiar to the work and ultimately compensable is not necessarily based on the disease in question but on the facts surrounding the worker’s illness. Factors investigated and considered by medical professionals and the court include: • The timing of the symptoms in relation to work: Do symptoms worsen at work and improve following prolonged absence from work (in the evening and on weekends); • Whether co-workers show or have experienced similar symptoms; • The commonality of such illness to workers in that particular industry; • An employee’s predisposition to the illness (an allergy or other medical issue); and • The worker’s personal habits and medical history. Patients in poor medical condition (overweight, smokers, unrelated heart disease, etc.) and/or with poor family medical histories may be more likely to contract a disease or illness than others in similar circumstances. Bad habits and poor medical history (and heredity) cloud the

relationship between the occupation and the illness. For example, smokers may be ill-equipped to fight off the effects of illnesses to which others may have no problem being exposed.

What About Coronavirus?

Judged against the qualifying factors presented, does any disease or virus declared a pandemic create a true workers’ compensation exposure? Does the Coronavirus create a workers’ compensation exposure? The short answer is, “not likely.” Other than the fact that the Coronavirus is currently garnering intense attention, in most cases, it is no more occupational than the flu.

Unless!

Only if it is proven that the employee has an increased risk of contracting the virus due to the peculiarity of his or her job might the Coronavirus be considered occupational and thus compensable. Remember, compensability as an occupational illness requires something about the job that increases the risk of exposure and illness. As intimated earlier, healthcare workers may be able to prove the necessary peculiarity – being face-to-face with sick people all day – to assert a compensable injury.

Which Policy Responds to Qualifying Occupation Illnesses and Diseases?

While the Coronavirus has

a relatively short gestation period, other occupational illnesses and diseases often have long “gestation” periods. Employees may be exposed to the harmful condition for many years before the illness manifests. It is also possible that the employee doesn’t contract the disease until years after the exposure ends. The workers’ compensation policy specifically states that the policy in effect at the employee’s last exposure responds to the illness — even if the employee is working for another employer or even retired at the time the disease manifests itself.

The Coronavirus Isn’t Special Coronavirus may be a humankind exposure rather

than one peculiar to most employments. Contracting the virus at work is not enough to trigger the assertion that it is a compensable occupational illness. To be occupational and compensable requires something peculiar about the work that increases the likelihood of getting sick. It is unlikely that both the “occupational” and “peculiar” thresholds can be satisfied to make most illnesses “compensable” for the vast majority of individuals; the same is true of the new Coronavirus. Boggs, CPCU, ARM, ALCM, LPCS, AAI, APA, CWCA, CRIS, AINS, is a veteran insurance educator. He is the executive director for the Big I Virtual University of the Independent Insurance Agents and Brokers of America.

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2020

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 2020 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 Advanced E&S Group AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Berkley Select Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Cochrane & Company CRC - Middletown Crusader Insurance Company Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage)

N30 | INSURANCE JOURNAL MARCH 9, 2020

States Available View website for state info All States All States IL IN KY MI MN MO OH TN WI TX CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States TX All States AZ CA CO ID NE NM NV OR TN TX UT WA All States ID MT OR WA CT MA ME NH NJ RI PA CA MN MT ND NE SD WI WY All States

Banquet Halls Market Executive Insurance Professionals, PLLC Founders Insurance Company Gorst & Compass Insurance Gray-Stone & Company, Inc. Heritage Specialty Insurance Hospitality Insurance Group Integrated Specialty Coverages (ISC) Izzo Insurance Services, A div. of Hull & Co. J.M. Wilson James River Insurance Company Jimcor Agencies Joseph Krar & Associates Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group McClelland & Hine, A div of Worldwide Facilities Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Osprey Underwriters Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quirk & Company RISCO Insurance Brokerage, Inc. RMIS Roush Insurance Services, Inc. RT Specialty Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Specialty Insurance SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency Unifax Insurance Systems, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Surplus Lines Agency, Inc. Wilson Smith Group

Worldwide Facilities, LLC

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

CA FL GA LA MO NC NJ NY SC TX VA LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

All States

www.insurancejournal.com

2020 Hospitality Risks Directory Bars/Night Clubs

Bars/Night Clubs

Bars / Night Clubs coverage category sponsored by: M.J. Hall & Company, Inc. - for more info, check out our ad on page 1 (West).

Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. (includes College/Stadium Bars & Dance Clubs) AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Braishfield Associates, a division of Hull & Co. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. Concorde General Agency CRC - Middletown Crusader Insurance Company Delta General Agency Corp. Empire Underwriters Entertainment Risk Evolution Insurance Brokers (includes assault & battery coverage) First Choice Ins. Intermediaries (Liq. Liab only) Founders Insurance Company Gorst & Compass Insurance Heritage Specialty Insurance Hospitality Insurance Group IBI - Insurance Brokers Incorporated Indemnity Excess & Surplus Agency Integrated Specialty Coverages (ISC) International Excess Companies

IPC

Izzo Insurance Services, A div. of Hull & Co. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies (and Taverns) Joseph Krar & Associates Legacy Employer Concepts, LLC

www.insurancejournal.com

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

AZ CA ID NV OR WA

All States Most States OH All States All States except AK HI IA NE SD ND MT WY CT MA ME NH RI All States except AK HI NC

Market Lionheart Insurance Services, Inc. London Underwriters, LLC M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland & Hine, A div of Worldwide Facilities McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. NeitClem Wholesale Insurance Brokerage, Inc. New Age Underwriters Agency, Inc. New England Excess Exchange, Ltd. Next Wave Insurance Services, LLC NIF Group Number One Insurance Agency, Inc. Osprey Underwriters Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies (and Taverns) Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMIS Roush Insurance Services, Inc. RT Specialty Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP Specialty Insurance (and Taverns) Tejas American General Agency U.S. Risk, LLC UFG Specialty Unifax Insurance Systems, Inc. USASIA Insurance Services USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Worldwide Facilities, LLC

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

CA FL GA LA MO NC NJ NY SC TX VA AZ NV All States

MARCH 9, 2020 INSURANCE JOURNAL | N31

2020 Hospitality Risks Directory Breweries/Micro

Bed & Breakfasts Market AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Berkley Select Burns & Wilcox CITA Insurance Services Cochrane & Company Crusader Insurance Company Delta General Agency Corp. Empire Underwriters Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage) Executive Insurance Professionals, PLLC Gorst & Compass Insurance Gray-Stone & Company, Inc.

IPC

J.M. Wilson James River Insurance Company Jimcor Agencies Joseph Krar & Associates London Underwriters, LLC M.J. Hall & Company, Inc. McClelland & Hine, A div of Worldwide Facilities McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Patriot National Underwriters, Inc. Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. TAPCO Underwriters, Inc. Tejas American General Agency UFG Specialty Unifax Insurance Systems, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

Worldwide Facilities, LLC

N32 | INSURANCE JOURNAL MARCH 9, 2020

States Available All States All States TX CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States All States All States ID MT OR WA CA TX All except monopolistic MN MT ND NE SD WI WY All States CA GA NM OK TX CA Most States

AZ CA ID NV OR WA

Most States All States All States except AK HI IA NE SD ND MT WY CT MA ME NH RI All States except NY & IL AK AZ CA HI NV TX AZ CO FL NC OK RI TN TX All States Most States AZ CA NV All States AR KS LA MS OK TX All States All States Most States LA NM OK OR TX WA CT MA ME NH NY RI VT All States Most States TX AZ CA CO ID NM NV OR UT WA CA

AR IL MO AR IA IL IN KS KY MO OK TN

AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

All States

Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co. Aspera Insurance Services, Inc. Bass Underwriters Braishfield Associates, a division of Hull & Co. CID Insurance Programs, Inc. Cochrane & Company CRC - Middletown Crusader Insurance Company Delta General Agency Corp. Elite Underwriters Entertainment Risk Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage) Founders Insurance Company Gorst & Compass Insurance Hospitality Insurance Group Indemnity Excess & Surplus Agency International Excess Companies

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

Izzo Insurance Services, A div. of Hull & Co. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Legacy Employer Concepts, LLC M.J. Hall & Company, Inc. Market Finders Insurance Corp. McLeckie Insurance Group Midlands Management Corp. NeitClem Wholesale Insurance Brokerage, Inc. New Age Underwriters Agency, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Osprey Underwriters Philadelphia Insurance Companies (+ Beer Gardens) Prime Insurance Company (includes assault & battery coverage)

All States Most States OH All States All States except AK HI IA NE SD ND MT WY All States except AK HI NC AK AZ CA HI NV All States AZ CO FL NC OK RI TN TX Most States AZ CA NV Most States CT MA MD ME NH NJ NY OH PA RI VT All States MA All States All States except LA

IPC

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 CT MA NC NH PA RI VT AZ CA CO ID MT NV OR TX WA All States

AZ CA ID NV OR WA

All States

www.insurancejournal.com

2020 Hospitality Risks Directory Caterers

Breweries/Micro Market Quaker Special Risk Quirk & Company RISCO Insurance Brokerage, Inc. Roush Insurance Services, Inc. RT Specialty Specialty Insurance Tejas American General Agency The McGowan Companies U.S. Risk, LLC UCA General Insurance Services, Inc. Unifax Insurance Systems, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Worldwide Facilities, LLC

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

All States

Casinos Market All Risks, Ltd. Alliant Insurance Services American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. Bass Underwriters Concorde General Agency Distinguished Specialty Empire Underwriters Entertainment Risk Evolution Insurance Brokers (includes assault & battery coverage) Izzo Insurance Services, A div. of Hull & Co. James River Insurance Company Jimcor Agencies Legacy Employer Concepts, LLC Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. MAXIMUM NIF Group Philadelphia Insurance Companies (E&S paper) Prime Insurance Company (includes assault & battery coverage) U.S. Risk, LLC Walter General Agency (WGA) Worldwide Facilities, LLC

www.insurancejournal.com

States Available Has Pen, All States All States All States All States AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA IA MN MT ND SD All States All except monopolistic AZ CA CO DE FL GA IL LA MA MD MI NJ NV NY OH TN TX UT VA All States All States All States All States except AK HI IA NE SD ND MT WY All States except AK HI NC AZ CA CO HI ID NM NV OK TX UT WA WY AK AZ CA HI NV All States All States All States except LA All States All States

AR IA IL IN KS KY MO OK TN

Market Abram Interstate Insurance Services, Inc. AmWINS Group, Inc. Anderson & Murison, Inc. Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Berkley Select Braishfield Associates, a division of Hull & Co. Brecht & Associates CID Insurance Programs, Inc. Cochrane & Company CRC - Middletown Delta General Agency Corp. Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage) Executive Insurance Professionals, PLLC First Choice Insurance Intermediaries, Inc. Founders Insurance Company Gorst & Compass Insurance Gray-Stone & Company, Inc. Hospitality Insurance Group 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 & Hine, A div of Worldwide Facilities McLeckie Insurance Group Midlands Management Corp. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. NIF Group Number One Insurance Agency, Inc. Osprey Underwriters

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

All States

MARCH 9, 2020 INSURANCE JOURNAL | N33

2020 Hospitality Risks Directory Caterers Market Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies (E&S paper) Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities ProHost USA Quirk & Company RISCO Insurance Brokerage, Inc. RMIS Roush Insurance Services, Inc. Specialty Insurance (and Delis) TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies U.S. Risk, LLC USG Insurance Services, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

Worldwide Facilities, LLC

Dinner Theaters States Available Most States AR KS LA MS OK TX All States except LA All States All States All States except AK LA NM OK OR TX WA CT MA ME NH NY RI VT All States IL IN OH AZ 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 All States All States AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ NY SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

All States

Market Entertainment Risk Evolution Insurance Brokers (includes assault & battery coverage) Executive Insurance Professionals, PLLC Founders Insurance Company James River Insurance Company Jimcor Agencies Lionheart Insurance Services, Inc. M.J. Hall & Company, Inc. McClelland & Hine, A div of Worldwide Facilities Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. NIF Group Number One Insurance Agency, Inc. Osprey Underwriters Pacific Excess Insurance Marketing Prime Insurance Company (includes assault & battery coverage) Seguros Underwriters, LLC U.S. Risk, LLC Unifax Insurance Systems, Inc. Walter General Agency (WGA) Wilson Smith Group (includes Comedy Clubs)

N34 | INSURANCE JOURNAL MARCH 9, 2020

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

Gentlemanâ&#x20AC;&#x2122;s Clubs

Dinner Theaters Market AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program All Risks, Ltd. Appalachian Underwriters Aspera Insurance Services, Inc. Bass Underwriters Berkley Select Brecht & Associates Concorde General Agency Crusader Insurance Company Elite Underwriters Empire Underwriters

States Available AZ CA CO DE FL GA IL LA MA MD MI NJ NV NY OH TN TX UT VA

States Available All States All States Has Pen, All States All States CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States TX IA MN MT ND SD CA CA FL GA NY All except monopolistic

Market Abram Interstate Insurance Services, Inc. All Risks, Ltd. AmWINS Group, Inc. Appalachian Underwriters Aspera Insurance Services, Inc. Bass Underwriters Concorde General Agency Crusader Insurance Company Entertainment Risk

States Available CA Has Pen, All States All States All States CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA IA MN MT ND SD CA AZ CA CO DE FL GA IL LA MA MD MI NJ NV NY OH TN TX UT VA

www.insurancejournal.com

2020 Hospitality Risks Directory Gentlemen’s Clubs Market Evolution Insurance Brokers (includes assault & battery coverage) First Choice Ins. Intermediaries (Liq. Liab only) Founders Insurance Company Gorst & Compass Insurance Heritage Specialty Insurance Hospitality Insurance Group Jacobs & Associates James River Insurance Company Jimcor Agencies Legacy Employer Concepts, LLC Lionheart Insurance Services, Inc. London Underwriters, LLC M.J. Hall & Company, Inc. Market Finders Insurance Corp. MAXIMUM McClelland & Hine, A div of Worldwide Facilities Midlands Management Corp. NeitClem Wholesale Insurance Brokerage, Inc. New Age Underwriters Agency, Inc. Next Wave Insurance Services, LLC NIF Group Number One Insurance Agency, Inc. Osprey Underwriters Prime Insurance Company (includes assault & battery coverage) Quaker Special Risk Risk Placement Services, Inc. RT Specialty Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP Tejas American General Agency U.S. Risk, LLC UFG Specialty Unifax Insurance Systems, Inc. USG Insurance Services, Inc. Walter General Agency (WGA) Worldwide Facilities, LLC

www.insurancejournal.com

Hotels/Motels Hotels / Motels coverage category sponsored by:

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

All States

Risk Placement Services, Inc. - for more info, check out our ad on page 2 (West).

Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. Alliant Insurance Services American Union Risk Associates, LLC AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Berkley Select Braishfield Associates, a division of Hull & Co. Brecht & Associates Burns & Wilcox CITA Insurance Services CID Insurance Programs, Inc. Cochrane & Company Concorde General Agency

Covenant Underwriters e-commerce insurance programs

CRC - Middletown Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters Empire Underwriters Evolution Insurance Brokers (includes assault & battery coverage) Executive Insurance Professionals, PLLC Gorst & Compass Insurance Gray-Stone & Company, Inc. HabPro Hotels & Resorts Insurance Program – CITA Ins. Services (3, 4 & 5 Star Rated based on Amenities) Indemnity Excess & Surplus Agency International Excess Companies IPC Izzo Insurance Services, A div. of Hull & Co. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies

States Available CA View website for state info Has Pen, All States All States All States All States All States All States All States TX CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States All States TX All States All States AZ CA CO ID NE NM NV OR TN TX UT WA ID MT OR WA IA MN MT ND SD

All States

CT MA ME NH NJ RI PA CA TX All States CA FL GA NY All except monopolistic All States CA GA NM OK TX CA Most States Most States All States AZ CA CO ID MT NV OR TX WA All States AZ CA ID NV OR WA All States Most States OH All States All States except AK HI IA NE SD ND MT WY

MARCH 9, 2020 INSURANCE JOURNAL | N35

2020 Hospitality Risks Directory Hotels/Motels Market KZ Insurance Brokerage, LLC Legacy Employer Concepts, LLC London Underwriters, LLC M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland & Hine, A div of Worldwide Facilities McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New Age Underwriters Agency, Inc. Next Wave Insurance Services, LLC NIF Group Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Philadelphia Insurance Companies (E&S paper) Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Quaker Special Risk Quirk & Company RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMIS Roush Insurance Services, Inc. RT Specialty Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies Travelers U.S. Risk, LLC UCA General Insurance Services, Inc. Unifax Insurance Systems, Inc. USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

Worldwide Facilities, LLC

N36 | INSURANCE JOURNAL MARCH 9, 2020

Resorts States Available AZ CA CO LA NV TN All States except AK HI NC All States except NY & IL AK AZ CA HI NV All States FL NC SC TX VA All States All States TX AZ CO FL KY NC OK RI TN TX All States Most States All States AZ CA NV Most States All States All States Most States AR KS LA MS OK TX All States except LA All States All States Most States LA NM OK OR TX WA CT MA ME NH NY RI VT All States All States IL IN OH All States FL GA MO TN TX AL FL GA SC TN All except AK HI NJ NY All States Most States TX All States All States All States AZ CA ID NV OR UT WA CA All States

AR IL MO AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ NY SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

Market Advanced E&S Group All Risks, Ltd. Alliant Insurance Services AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Aspera Insurance Services, Inc. Bass Underwriters Berkley Select Burns & Wilcox CITA Insurance Services Cochrane & Company Distinguished Specialty Elite Underwriters Empire Underwriters Entertainment Risk Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage) Gorst & Compass Insurance Heritage Specialty Insurance Hotels & Resorts Insurance Program â&#x20AC;&#x201C; CITA Ins. Services (3, 4 & 5 Star Rated based on Amenities) Izzo Insurance Services, A div. of Hull & Co. J.M. Wilson James River Insurance Company Jimcor Agencies

States Available View website for state info Has Pen, All States All States All States All States All States All States CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States All States All States ID MT OR WA All States CA FL GA NY All except monopolistic AZ CA CO DE FL GA IL LA MA MD MI NJ NV NY OH TN TX UT VA MN MT ND NE SD WI WY

Legacy Employer Concepts, LLC London Underwriters, LLC M.J. Hall & Company, Inc. MAXIMUM MexiPass International Insurance Services, LLC NIF Group Patriot National Underwriters, Inc. Philadelphia Insurance Companies (E&S paper) Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities Risk Placement Services, Inc. SUITELIFE by Venture Insurance Programs Tejas American General Agency Travelers USG Insurance Services, Inc. Walter General Agency (WGA) Wilson Smith Group

All States except AK HI NC All States except NY & IL AK AZ CA HI NV All States All States All States AR KS LA MS OK TX All States except LA

K & K Insurance Group, Inc.

Worldwide Facilities, LLC

All States CA AR OK TX All States All States Most States All States All States except AK HI IA NE SD ND MT WY

All States

All States All States All States All States TX All States All States

AR IA IL IN KS KY MO OK TN AZ LA MD MI MS NJ NV NY OK PA TX

All States

www.insurancejournal.com

2020 Hospitality Risks Directory Restaurants

Restaurants

Restaurants coverage category sponsored by:

Berkley Fine Dining Specialists - for more info, check out our ad on page 2 (East and Midwest). Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. Alliant Insurance Services AmWINS Group, Inc. Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Berkley Fine Dining Specialists Berkley Select Braishfield Associates, a division of Hull & Co. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Concorde General Agency CRC - Middletown Crusader Insurance Company Delta General Agency Corp. Distinguished Specialty Elite Underwriters Empire Underwriters Entertainment Risk Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage) Executive Insurance Professionals, PLLC First Choice Insurance Intermediaries, Inc. Founders Insurance Company Gorst & Compass Insurance Gray-Stone & Company, Inc. Heritage Specialty Insurance Hospitality Insurance Group Hotels & Resorts Insurance Program â&#x20AC;&#x201C; CITA Ins. Services (in Hotels & Resorts only) IBI - Insurance Brokers Incorporated Indemnity Excess & Surplus Agency

www.insurancejournal.com

States Available CA View website for state info Has Pen, All States All States All States All States All States IL IN KY MI MN MO OH TN WI TX CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA AZ CA CT DC GA IL MA MD MN MO NC NJ NV NY OH PA SC TN VA All States All States TX All States AZ CA CO ID NE NM NV OR TN TX UT WA All States IA MN MT ND SD CT MA ME NH NJ RI PA CA TX All States CA FL GA NY All except monopolistic AZ CA CO DE FL GA IL LA MA MD MI NJ NV NY OH TN TX UT VA MN MT ND NE SD WI WY All States CA GA NM OK TX Most 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 AR OK TX CT MA NC NH PA RI VT All States IL IN MI AZ CA CO ID MT NV OR TX WA

Market Integrated Specialty Coverages (ISC) International Excess Companies

IPC IPC

(HNOA for food delivery)

Irving Weber Associates, Inc. (no fast food) Izzo Insurance Services, A div. of Hull & Co. J.M. Wilson Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates KZ Insurance Brokerage, LLC Legacy Employer Concepts, LLC Lionheart Insurance Services, Inc. London Underwriters, LLC M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland & Hine, A div of Worldwide Facilities McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New England Excess Exchange, Ltd. New Age Underwriters Agency, Inc. Next Wave Insurance Services, LLC NIF Group Number One Insurance Agency, Inc. Osprey Underwriters Pacific Excess Insurance Marketing Patriot National Underwriters, Inc. Prime Insurance Company (includes assault & battery coverage) Professional Liability Ins. Svcs, Inc. - Underwriting Facilities ProHost USA Promont Insurance Advisors (and Diners) Quaker Special Risk Quirk & Company RISCO Insurance Brokerage, Inc. Risk Placement Services, Inc. RMIS Roush Insurance Services, Inc. RT Specialty Seguros Underwriters, LLC

States Available All except AL AK IA VT WV All States

AZ CA ID NV OR WA All States except FL

Most States All States Most States OH All States All States except AK HI IA NE SD ND MT WY CT MA ME NH RI AZ CA CO LA NV TN All States except AK HI NC AZ CA CO HI ID NM NV OK TX UT WA WY All States except NY & IL AK AZ CA HI NV All States FL NC SC TX VA All States All States TX AZ CO FL KY NC OK RI TN TX All States Most States All States AZ CA NV CT MA MD ME NH NJ NY OH PA RI VT Most States All States All States MA All States Most States AR KS LA MS OK TX All States

All States All States except AK All States Most States LA NM OK OR TX WA CT MA ME NH NY RI VT All States All States IL IN OH All States FL GA MO TN TX

MARCH 9, 2020 INSURANCE JOURNAL | N37

2020 Hospitality Risks Directory Restaurants

Spas

Market Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP

States Available AL FL GA SC TN All except AK HI NJ NY

SterlingRisk Programs TAPCO Underwriters, Inc. Target Market Specialists Tejas American General Agency The McGowan Companies Travelers U.S. Risk, LLC UCA General Insurance Services, Inc. UFG Specialty Unifax Insurance Systems, Inc. USASIA Insurance Services W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

All States Most States All States TX All States All States All States AZ CA ID NV OR UT WA AZ CA CO ID NM NV OR UT WA CA CA NV

Specialty Insurance (and Delis)

AZ CA CT DE FL GA IL MA MD MI MN MO NC NJ NY OH PA RI SC TN TX

Worldwide Facilities, LLC

AR IL MO AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ NY SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

All States

Spas Spas coverage category sponsored by:

Integrated Specialty Coverages (ISC) - for more info, see our partner company’s ad on page 15 - National. (SIS Wholesale) Market Abram Interstate Insurance Services, Inc. AmWINS Group, Inc. Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters

N38 | INSURANCE JOURNAL MARCH 9, 2020

States Available CA All States IL IN KY MI MN MO OH TN WI TX CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA

Market Braishfield Associates, a division of Hull & Co. Burns & Wilcox CITA Insurance Services Concorde General Agency Delta General Agency Corp. Elite Underwriters Evolution Insurance Brokers (includes assault & battery coverage) First Choice Insurance Intermediaries, Inc. Gateway Specialty Insurance Gorst & Compass Insurance Gray-Stone & Company, Inc. Heritage Specialty Insurance Hotels & Resorts Insurance Program – CITA Ins. Services (in Hotels & Resorts only) Indemnity Excess & Surplus Agency Integrated Specialty Coverages (ISC) International Excess Companies Izzo Insurance Services, A div. of Hull & Co. 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 Prime Insurance Company (includes assault & battery coverage) Professional Program Ins Brokerage, A div. of SPG Insurance Solutions RMIS SASSI - Salon & Spa Specialty Insurance Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA SUITELIFE by Venture Insurance Programs TAPCO Underwriters, Inc. Tejas American General Agency U.S. Risk, LLC UFG Specialty USG Insurance Services, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc.

States Available All States All States All States IA MN MT ND SD TX CA FL GA NY All States Most States All States CA Most States AR OK TX All States AZ CA CO ID MT NV OR TX WA All except AL AK IA VT WV All States All States All States All States except AK HI IA NE SD ND MT WY CT MA ME NH RI AK AZ CA HI NV All States All States AZ CA NV All States All States Most States All States Most States FL GA MO TN TX AL FL GA SC TN All States Most States TX All States AZ CA CO ID NM NV OR UT WA All States AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ NY SC TX VA AZ NV LA ND NM OK TX

www.insurancejournal.com

2020 Hospitality Risks Directory Special Events

Special Events Special Events coverage category sponsored by:

Philadelphia Insurance Companies - for more info, check out our ad on page 7 (National). Market Abram Interstate Insurance Services, Inc. Advanced E&S Group All Risks, Ltd. (includes Concert Venues) Alliant Insurance Services American Specialty Ins. & Risk Services, Inc. AmWINS Group, Inc. AmWINS Program Udr, ResortGuard Ins. Program Anderson & Murison, Inc. Appalachian Underwriters Arlington/Roe & Co. Ashley General Agency Aspera Insurance Services, Inc. Bass Underwriters Braishfield Associates, a division of Hull & Co. Brecht & Associates Burns & Wilcox CID Insurance Programs, Inc. CITA Insurance Services Cochrane & Company CRC - Middletown Elite Underwriters Erickson-Larsen, Inc. Evolution Insurance Brokers (includes assault & battery coverage) Executive Insurance Professionals, PLLC First Choice Insurance Intermediaries, Inc. Founders Insurance Company Gateway Specialty Insurance Gorst & Compass Insurance Gray-Stone & Company, Inc. Heritage Specialty Insurance Hospitality Insurance Group IBI - Insurance Brokers Incorporated Indemnity Excess & Surplus Agency Integrated Specialty Coverages (ISC) International Excess Companies

States Available CA View website for state info Has Pen, All States All States All States All States All States All States All States IL IN KY MI MN MO OH TN WI TX CA CO FL OR TX WA AL CA CO FL GA LA MS NJ NV NY OR PA SC TX WA All States TX All States AZ CA CO ID NE NM NV OR TN TX UT WA All States ID MT OR WA CT MA ME NH NJ RI PA CA FL GA NY MN MT ND NE SD WI WY

Jacobs & Associates James River Insurance Company Jimcor Agencies Joseph Krar & Associates

OH All States All States except AK HI IA NE SD ND MT WY CT MA ME NH RI

IPC

www.insurancejournal.com

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

AZ CA ID NV OR WA

Market

K & K Insurance Group, Inc.

States Available

Lionheart Insurance Services, Inc. (Large Events) London Underwriters, LLC M.J. Hall & Company, Inc. M.J. Kelly Company MacNeill Group Market Finders Insurance Corp. MAXIMUM McClelland & Hine, A div of Worldwide Facilities McLeckie Insurance Group MexiPass International Insurance Services, LLC Midlands Management Corp. Nautilus Insurance Co. & Great Divide Ins. Co. NeitClem Wholesale Insurance Brokerage, Inc. New Age Underwriters Agency, Inc. New England Excess Exchange, Ltd. NIF Group Pacific Excess Insurance Marketing Philadelphia Insurance Companies (E&S paper) Prime Insurance Company (includes assault & battery coverage) Professional Program Ins Brokerage, A div. of SPG Insurance Solutions Quaker Special Risk Risk Placement Services, Inc. RMIS Roush Insurance Services, Inc. RT Specialty Seguros Underwriters, LLC Southern Insurance Underwriters, Inc. CMGA Southwest Risk, LP TAPCO Underwriters, Inc. Tejas American General Agency The McGowan Companies U.S. Risk, LLC UFG Specialty USASIA Insurance Services USG Insurance Services, Inc. W.A. Schickedanz Agency, Inc. Walter General Agency (WGA) Western Security Surplus Insurance Brokers LLC Western Special Risks, Inc, a JenCap Holdings Co. Western Surplus Lines Agency, Inc. Wilson Smith Group

Worldwide Facilities, LLC

All States

AZ CA CO HI ID NM NV OK TX UT WA WY All States except NY & IL AK AZ CA HI NV All States FL NC SC TX VA All States All States TX AZ CO FL KY NC OK RI TN TX All States Most States All States AZ CA NV Most States CT MA MD ME NH NJ NY OH PA RI VT All States Most States All States except LA All States Most States Most States All States All States IL IN OH All States FL GA MO TN TX AL FL GA SC TN All except AK HI NJ NY Most States TX All States All States AZ CA CO ID NM NV OR UT WA CA NV All States

AR IL MO AR IA IL IN KS KY MO OK TN

CA FL GA LA MO NC NJ NY SC TX VA AZ NV LA ND NM OK TX

AZ LA MD MI MS NJ NV NY OK PA TX

All States

MARCH 9, 2020 INSURANCE JOURNAL | N39

2020 Hospitality Risks Directory - Alphabetical Directory of Markets 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

Appalachian Underwriters

800 Oak Ridge Turnpike, Ste. A-1000, Oak Ridge, TN 37830 Phone: 888-376-9633 , Fax: 866-409-3367 Email: marketing@appund.com www.appund.com

Arlington/Roe & Co.

8900 Keystone Crossing, 8th Fl, Indianapolis, IN 46240 Phone: 800-878-9891 Email: info@arlingtonroe.com arlingtonroe.com

Ashley General Agency

Advanced E&S Group

3250 N. 29th Ave., Hollywood, FL 33020 Phone: 954-461-9567, Fax: 855-289-3945 Email: sswanson@advancedesgroup.com www.advancedesgroup.com

All Risks, Ltd.

10150 York Rd., 5th Fl, Hunt Valley, MD 21030 Phone: 866-234-0955, Fax: 410-828-8179 Email: allrisksij@allrisks.com http://info.allrisks.com/insurance-journal-directory-hospitalityrisks-coverage

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

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

Aspera Insurance Services, Inc.

2221 Edward Holland Dr., Ste. 600, Richmond, VA 23230 Phone: 804-774-2101, Fax: 804-673-5697 Email: marketing@asperains.com www.asperains.com

Burns & Wilcox - All Offices

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

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: 888-813-9295 Email: john.jasinski@citainsurance.com www.citainsurance.com

Cochrane & Company

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

Bass Underwriters

Concorde General Agency

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

720 28th St. S, Fargo, ND 58103 Phone: 701-726-1611 Email: scott@cgains.com www.cgains.com

Berkley Fine Dining Specialists

Covenant Underwriters

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

American Union Risk Associates, LLC

100 N. Federal Hwy, Ste. 203, Hallandale Beach, FL 33009 Phone: 877-506-1430, Fax: 954-362-1527 Email: Thomas.Clementi@aurains.com www.aurains.com

301 Route 17 North, Ste. 900, Rutherford, NJ 07070 Phone: 201-518-2545 Email: dmerlo@berkleyluxurygroup.com www.berkleyluxurygroup.com

Berkley Fine Dining Specialists is a division of Berkley Luxury Group. The name is designed to clearly identify the company as an operating unit of Berkley, one of America’s largest commercial line writers, and what Berkley Fine Dining Specialists offers: tailored, all-inclusive insurance solutions for fine dining restaurants.

Berkley Select 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

AmWINS Program Underwriters, ResortGuard Ins. Program One New Hampshire Ave., Ste. 200, Portsmouth, NH 03801 Phone: 603-334-3029, Fax: 603-334-3090 Email: Jeffrey.benjamin@amwins.com www.resortguard.com

550 W. Jackson St., Ste. 500, Chicago, IL 60661 Phone: 312-800-6200, Fax: 312-207-1839 Email: info@berkleyselect.com www.berkleyselect.com

Braishfield Associates, a division of Hull & Company, LLC 5750 Major Blvd., Ste. 200, Orlando, FL 32819 Phone: 888-335-6616, Fax: 888-335-6615 Email: solutions@braishfield.com www.braishfield.com

N40 | INSURANCE JOURNAL MARCH 9, 2020

Covenant’s new program for hotels and motels combines Property, GL, Excess Liability, EPLI, Abuse, Cyber, Flood, Terrorism, Crime, Equipment Breakdown, and more onto a single custom policy. Our e-commerce platform allows for instant quoting, binding, and automatic monthly payments. If you write hotels, you need this product!

CRC - Middletown

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

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

Delta General Agency Corp.

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

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

e-commerce insurance programs

Phone: 346-330-3777 Email: daniel@covenantunderwriters.com https://covenantunderwriters.com/

Brecht & Associates

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

Distinguished Specialty

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

2020 Hospitality Risks Directory - Alphabetical Directory of Markets Elite Underwriters

Gray-Stone & Company, Inc.

Empire Underwriters

HabPro

395 Alhambra Cir., Coral Gables, FL 33134 Phone: 786-999-1350, Fax: 786-522-9046 Email: info@eliteunderwriters.com www.eliteunderwriters.com 12300 Race Track Rd., Tampa, FL 33626 Phone: 813-448-9300, Fax: 813-448-9310 Email: quotes@empireunderwriters.com www.empireunderwriters.com

Entertainment Risk

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

Erickson-Larsen, Inc.

6425 Sycamore Ct. N, Maple Grove, MN 55369 Phone: 763-535-0055 Email: pbloch@ericksonlarseninc.com www.ericksonlarseninc.com

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

Executive Insurance Professionals, PLLC 6001 W. Interstate 20, Ste. 214, Arlington, TX 76017 Phone: 800-779-4095, Fax: 866-779-4331 Email: cheryl@execins.com www.execins.com

First Choice Insurance Intermediaries, Inc. 814 A1A North, Ste. 206, Ponte Vedra Beach, FL 60173 Phone: 866-821-9572, Fax: 904-543-4501 Email: info@firstchoiceii.com www.firstchoiceii.com

275 E. Hillcrest Dr., Ste. 250, Thousand Oaks, CA 91360 Phone: 805-494-4440, Fax: 805-267-1769 Email: info@gray-stone.com ; hstone@gray-stone.com www.gray-stone.com

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

Heritage Specialty Insurance

609 Cheek Sparger Rd., Stes. 110-114, Colleyville, TX 76034 Phone: 866-544-1900, Fax: 866-832-0984 Email: submissions@heritagespecialty.com www.heritagespecialty.com

Hospitality Insurance Group

106 Southville Rd., Southborough, MA 01772 Phone: 877-366-1140, Fax: 508-836-4940 Email: MTrombly@hmic.com www.HMIC.com

IBI - Insurance Brokers Incorporated 400 Camby Ct., Greenwood, IN 46142 Phone: 800-536-4783, Fax: 317-885-7011 Email: gpomeroy@goibi.com www.goibi.com

Indemnity Excess & Surplus Agency

1915 NE Stucki Ave., Ste. 450, Hillsboro, OR 97006 Phone: 503-526-9700, Fax: 503-626-2260 Email: submissions@ies-xs.com www.ies-xs.com

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

Gorst & Compass Insurance

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

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

J.M. Wilson

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

Jacobs & Associates

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

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

Jimcor Agencies

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

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

International Excess Companies

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

Gateway Specialty Insurance

Izzo Insurance Services, A div of Hull & Co.

681 S. Parker St., Ste. 300, Orange, CA 92868 Phone: 888-813-9295 Email: john.jasinski@citainsurance.com www.citainsurance.com

500 Mamaroneck Ave., Ste. 320, Harrison, NY 10528 Phone: 908-723-8559 Email: contact@iscmga.com www.iscmga.com 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

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

Hotels & Resorts Insurance Program – CITA Insurance Services

Integrated Specialty Coverages (ISC)

Founders Insurance Company

Irving Weber Associates, Inc. (IWA)

K & K Insurance Group, Inc.

IPC

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

IPC specializes in Hired & Non-Owned Auto Liability for food delivery risks on a nationwide basis EXCEPT Florida. We write store owners that deliver their own food, businesses that deliver food on behalf of others (we call them food couriers) and grocery delivery. We entertain limits up to $2 million.

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

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

MARCH 9, 2020 INSURANCE JOURNAL | N41

2020 Hospitality Risks Directory - Alphabetical Directory of Markets Legacy Employer Concepts, LLC

McLeckie Insurance Group

Lionheart Insurance Services, Inc.

MexiPass International Insurance Services, LLC

London Underwriters, LLC

Midlands Management Corp.

3030 N. Rocky Point Dr., Ste. 150A, Tampa, FL 33607 Phone: 813-460-9166 Email: brett@legacyemployerconcepts.com www.legacyemployerconcepts.com 2742 Kingclaven Dr., Henderson, NV 89044 Phone: 702-834-8140, Fax: 702-834-8140 Email: laura@lionheartins.net www.lionheartins.com

18851 NE 29th Ave., Ste. 406, Aventura, FL 33180 Phone: 866-245-5197, Fax: 866-251-3030 Email: df@londonuw.com ; jg@londonuw.com www.londonuw.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

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

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

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

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

New Age Underwriters Agency, Inc.

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

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

1981 Marcus Ave., Ste. C108, Lake Success, NY 11042 Phone: 516-488-2500, Fax: 516-488-2508 Email: m.ascher@newageins.com www.newageins.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

Next Wave Insurance Services, LLC 610 W. Ash St., Ste. 1703, San Diego, CA 92101 Phone: 619-232-3900, Fax: 619-234-6500 Email: submissions@nextwaveins.com www.nextwaveins.com

NIF Group

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

Number One Insurance Agency, Inc.

MAXIMUM

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

McClelland and Hine, A division of Worldwide Facilities, LLC P.O. Box 700930, San Antonio, TX 78270 Phone: 800-333-2017, Fax: 210-366-2407 Email: deniser@mhi-mga.com www.mhi-mga.com

N42 | INSURANCE JOURNAL MARCH 9, 2020

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

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

NeitClem Wholesale Insurance Brokerage, Inc.

M.J. Hall & Company, Inc.

Patriot National Underwriters, Inc.

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: 800-257-5590 Email: RJL@primeis.com www.primeis.com

Professional Liability Insurance Svcs, Inc. - Underwriting Facilities 5802 Thunderbird, 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, A division of SPG Insurance Solutions, LLC 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 Email: info@prohostusa.com www.prohostusa.com

Promont Insurance Advisors

1 E. Wacker Dr., Ste. 1920, Chicago, IL 60601 Phone: 312-262-3334, Fax: 312-262-3301 Email: gmorris@promontadvisors.com www.promontadvisors.com

Quaker Special Risk

91 Cedar St., Milford, MA 01757 Phone: 508-634-2900, Fax: 508-634-2930 Email: atobin@massagent.com www.massagent.com

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

Osprey Underwriters

Quirk &â&#x20AC;&#x2C6;Company

777 W. Putnam Ave., Greenwich, CT 06830 Phone: 203-489-3400 Email: quotes@ospreyuw.com www.ospreyuw.com

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

Pacific Excess Insurance Marketing

RISCO Insurance Brokerage, Inc.

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

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

www.insurancejournal.com

2020 Hospitality Risks Directory - Alphabetical Directory of Markets Risk Placement Services, Inc.

TAPCO Underwriters, Inc.

Walter General Agency (WGA)

RMIS

Tejas American General Agency

Western Security Surplus Insurance Brokers, Inc.

The McGowan Companies

Western Special Risks, Inc., a JenCap Holdings Company

50+ Locations, Headquarters - Rolling Meadows, IL 60008 Phone: 866-595-8413 Email: Contact_Us@RPSins.com www.rpsins.com P.O. Box 87023, Yorba Linda, CA 92887 Phone: 714-738-1383, Fax: 714-921-1160 Email: quoteRMIS@RMISmga.com www.RMISmga.com

Roush Insurance Services, Inc.

3060 S. Church St., Burlington, NC 27216 Phone: 800-334-5579 Fax: 336-584-8880 Email: kallred@gotapco.com www.gotapco.com 1620 La Jaita Dr., Ste. 300, Cedar Park, TX 78613 Phone: 512-346-0030, Fax: 512-342-2803 Email: marketing@taga1.com www.taga1.com

18077 River Rd., Ste. 107, Noblesville, IN 46062 Phone: 800-752-8402, Fax: 317-776-6891 Email: info@roushins.com www.roushins.com

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

RT Specialty, LLC

Travelers

1792 Woodstock Rd., Bldg. 200, Roswell, GA 30075 Phone: 770-971-9975, Fax: 770-971-7608 Email: jason.murrey@rtspecialty.com www.rtspecialty.com

SASSI - Salon & Spa Specialty Insurance

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

U.S. Risk, LLC

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

8401 N. Central Expressway, Ste. 1000, Dallas, TX 75225 Phone: 800-232-5830, Fax: 214-647-5035 Email: kellyK@usrisk.com www.usrisk.com

Seguros Underwriters, LLC

UCA General Insurance Services, Inc.

800 Oak Ridge Turnpike, Ste A-1000, Oak Ridge, TN 37830 Phone: 888-981-1701, Fax: 877-834-3882 Email: marketing@segurosuw.com www.segurosuw.com

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

Southern Insurance Underwriters, Inc. CMGA

UFG Specialty

Southwest Risk, LP

Unifax Insurance Systems, Inc.

Specialty Insurance

USASIA Insurance Services

SterlingRisk Programs

USG Insurance Services, Inc.

SUITELIFE by Venture Insurance Programs

W.A. Schickedanz Agency, Inc.

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

8144 Walnut Hill Ln., Ste. 1400, Dallas, TX 75231 Phone: 214-206-4900, Fax: 214-206-4901 Email: wwrobel@swrisk.com www.swrisk.com 1610 Route 88 Ste. 102, Brick, NJ 08724 Phone: 732-701-8900, Fax: 732-458-3728 Email: clewis@specialtyagency.com www.specialtyagency.com 135 Crossways Park Dr., 3rd Fl, Woodbury, NY 11797 Phone: 516-719-8809, Fax: 516-719-8809 Email: Isterling@sterlingrisk.com www.sterlingrisk.com 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

www.insurancejournal.com

273 Clarkson Rd., Ste. 102, Ellisville, MO 63011 Phone: 636-391-4841, Fax: 636-391-2115 Email: newquotes@wgamo.com www.wgamo.com 4965 Preston Park Blvd., Ste. 650, Plano, TX 75093 Phone: 972-702-0500, Fax: 972-702-0504 Email: info@wssib.com www.wssib.com

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

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

Wilson Smith Group

1001 S. Dairy Ashford, Ste. 110, Houston, TX 77077 Phone: 713-808-9770, Fax: 713-808-9717 Email: info@wilsonsmithgroup.com www.wilsonsmithgroup.com

Worldwide Facilities, LLC

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

725 S. Figueroa St., Ste. 1870, Los Angeles, CA 90017 Phone: 213-634-6421 Email: gbohan@unitedfiregroup.com www.ufginsurance.com 26050 Mureau Rd., Calabasas, CA 91302 Phone: 800-669-9800, Fax: 818-591-9856 Email: info@unifaxinsurance.com www.crusaderinsurance.com 319 Union Ave., Pomona, CA 91768 Phone: 909-618-0288, Fax: 909-618-0289 Email: shirley@usasia-ins.com www.usasia-ins.com 1000 Town Center Wy, Ste. 300, Canonsburg, PA 15317 Phone: 800-886-3897, Fax: 724-265-5751 Email: jkessel@usgins.com www.usgins.com 300 W. Main St., Belleville, IL 62220 Phone: 800-869-9976, Fax: 618-233-0672 Email: submissions@was-irp.com www.was-irp.com

MARCH 9, 2020 INSURANCE JOURNAL | N43

Idea Exchange: Is It Covered? Logic & Language, Forms & Facts

The Case of the ‘Holey’ Insurance

or a number of years, I’ve done a workshop called “The Adventures of Ace Insura, Claims Detective.” By Bill Wilson Participants assist Ace in solving a variety of coverage and claims mysteries. Each case has one or more learning points that cumulatively lay a foundation for resolving virtually any coverage or claim dilemma. This month’s article is based on one of those cases and everything in it, other than the fictitious names, is absolutely true. Lester Green was a member of the Hornlake Mississippi Missionary Baptist Church. Every Sunday morning, Lester would drive his mini van and transport several elderly church members to and from church services. Lester had an ISO Personal Auto Policy (PAP) with RTFP Insurance Company. The church had no auto insurance. Since they didn’t own any autos, they figured they didn’t need any. The church, though, did have an ISO Commercial General Liability (CGL) policy with, coincidentally, the same insurance company. The pastor of the church was concerned about a lawsuit against the church if Lester had an accident that injured one of his church member passengers or a third party. He had Lester ask his agent if Lester’s PAP would cover an accident under these circumstances and, if so, if it would also protect the church. The pastor also contacted the church’s agent and asked if their ISO CGL policy would cover such a lawsuit. Lester’s agent contacted a personal lines underwriter at the insurance company and was told that the ISO PAP would not cover

44 | INSURANCE JOURNAL | MARCH 9, 2020

the use of his auto because it was being used as “public or livery conveyance” and it wasn’t rated for business use. The underwriter went on to say that, even if there was coverage for the accident, the church was not a family member or permissive user of the auto and, therefore, not covered as an insured. The church’s agent contacted a commercial lines underwriter at the insurance company and was told that, with a couple of exceptions like valet parking, the ISO CGL policy did not cover the use of autos. So, what do you think? If you have the current ISO PAP and/or CGL policy handy, examine the policy in the context of this potential claim scenario and see if you agree with the underwriters’ opinions. When you’re ready, keep reading.

Coverage

First of all, with regard to coverage under the PAP, in addition to resident family members and permissive users, any person or organization legally responsible for Lester’s acts or omissions involving his auto is an insured. As for the “business rating” comment, there is nothing in the policy that excludes coverage if the risk is not properly rated. Coverage and rating are two different issues. Besides, Lester was not being compensated in any way for transporting church members, so there was no “business” use. With regard to the “public or livery conveyance” exclusion, a “public” conveyance is one held out to the general public for hire. Some insurers use the “carrying persons or property for a fee” language which also would not apply here since no compensation of any kind was involved. So, the ISO PAP would cover both Lester and the church, pastor, or anyone else being held vicariously liable for an

otherwise covered accident involving his auto. For coverage for the church under the ISO CGL policy, it gets more complicated. While the CGL excludes most auto exposures, that doesn’t mean it’s an absolute exclusion. Specifically, what is excluded is bodily injury or property damage “arising out of the ownership, maintenance, use, or entrustment to others of any…‘auto’… owned or operated by or rented or loaned to any insured.”

‘First, pose coverage questions to an insurer’s claims department, not the underwriting department.’ For the exclusion to apply, two general conditions must both be met. First, the claim must arise from the “ownership, maintenance, use, or entrustment to others” of an auto. As for coverage for the church for a traffic accident, the church does not own Lester’s auto, it wasn’t maintaining it, it arguably wasn’t using it (though there is some legal premise for vicarious use), nor did it entrust the auto to Lester. Second, the claim must arise from an auto “owned or operated by” or “rented or loaned to” any insured. Lester’s auto was not owned or operated by the church, nor was it rented or loaned to the church. However, this is where it gets complicated. The exclusion applies to the ownership or operation of an auto by ANY insured under the policy. Lester owns and operates the auto, but is he an insured? According to the ISO Commercial Lines Manual rule in effect at this time, the endorsement CG 20 22 – Additional Insured – Church Member, Officers and Volunteer Workers was mandatory for this class of risk. This endorsement adds as an insured, “Any of your church members, but only with respect to their liability for your activities or activities they perform on your behalf.” With that attachment of this endorsement, Lester likely becomes an insured under the CGL policy, triggering the exclusion. INSURANCEJOURNAL.COM

However, here is yet another complication…this mandatory endorsement was never attached to the policy. No one knew why since it was expected to be added by automated process, but it wasn’t. So, Lester was not an insured and the exclusion would not apply if there was an auto accident. Of course, the insurer now wants to add the endorsement, but can it make that modification to the insurance contract mid-term? Normally, this endorsement is considered a coverage enhancement, but in this case for this particular claim scenario, it would be a significant reduction in coverage. What to do? Well, that discussion will have to come in another article.

Ace Insura Moral

So, what are some Ace Insura-like morals for this case? First, pose coverage questions to an insurer’s claims department, not the underwriting department. Second, don’t accept folklore (e.g., “CGL policies don’t cover auto accidents”) as fact. RTFP! Third, always get the answers to coverage questions in writing that cite the policy language that applies. Fourth, just about every

organization needs auto liability coverage, even if just hired and nonowned, in order to ensure that coverage exists. Don’t rely

on tenuous coverage that may or may not apply depending on the unique facts and circumstances of a claim scenario. Tune in next month when we examine a common and potentially catastrophic homeowners coverage gap that almost certainly exists in every personal lines book of business. Wilson, CPCU, ARM, AIM is the founder and CEO of InsuranceCommentary.com and the author of the book “When Words Collide: Resolving Insurance Coverage and Claims Disputes.”

Idea Exchange: The Competitive Advantage Consumer Advocacy:

What Do Clients

Really Want?

’m passionate about selling clients the coverage and protection they need, or at least helping them make good decisions about what they want to self-inBy Chris Burand sure. I have significant concerns that consumers are now, and soon will be getting even less advice than ever. The tricks — and these are tricks — carriers and distributors use that result in insureds buying less coverage are too successful for them to stop using. People who care can at least take this opportunity to create a niche that rewards their efforts and protects those clients who will work with them, collaboratively, to build strong insurance programs. The tricks can be generalized in these categories: Price, DIY and Complexity.

Price “You can save $X” or “The average 46 | INSURANCE JOURNAL | MARCH 9, 2020

new buyer saves $X” 1. The former does not make any claims the savings refer to apples to apples coverage. For example, in one case the client was told, “You have the same coverage as before, 25/50/25 adds up to $100,000 — just what you have now, but you’ll pay less.” The insured had $100,000 CSL. The two are not even close to the same, so the 25/50/25 quote should save the insured a

lot of money. Insureds see these ads and they automatically presume the coverages are the same and usually don’t know enough to easily identify when the coverages are not materially the same. I wish a requirement existed stipulating such ads be required to include a complete apples-to-apples comparison disclaimer. 2. The second claim is a case of serious statistical misapplication. It only applies to the consumers who buy from that carrier. 10,000 people could get higher quotes while 10 obtained materially lower quotes and the statement, “The average person switching saved $X” would be categorically correct, and rather pointless. By leaving out the 9,990 people who did not switch from the equation, reality is distorted. Currently the medical publishing and testing industry is struggling with drug tests that eliminate many of the negative results so that people have less awareness of the negative results. Omission, as in E&O, is just a different form of an error but omissions are often permitted in advertising, whereas purposeful errors are not.

Do It Yourself Insurance

Do it yourself (DIY) projects are popular INSURANCEJOURNAL.COM

in many areas, particularly hobbies, but should not be attempted when dealing with serious life affecting issues like insurance. In some ways, DIY insurance is as ridiculous as DIY surgery. From a sales perspective, it is a successful strategy because it empowers people. Being empowered is great if one knows what one is doing. Being ignorant and empowered has only one possible result – the empowered party losing someway and somehow. To be fair, many agents do not give better advice even though they have a license. So, a consumer faced with a lower rate on a DIY program versus a higher rate with an agent that is incompetent, choose the DIY rate. One does lose the ability to sue for bad advice because you can’t sue yourself for choosing the wrong coverages. The DIY insurance program is a unique version of an old con game that has an interesting result. Feeling empowered,

INSURANCEJOURNAL.COM

when the bet goes wrong, people don’t usually accept full blame. In fact, feeling empowered, even if their decisions are wrong, they will often buy again from the same con man failing to realize they are the shill. One requirement for these ploys to work is the insured has to think that all insurance policies are the same. To be a consumer advocate, one has to help people understand the huge differences in coverage options and even forms from one carrier to another.

Complexity

Add to the complexity and few consumers, even CFO’s of sizeable companies, have the time and/or ability or even access to the various forms to understand what their options are and how they will benefit from this endorsement or that endorsement. The pressure to make decisions on complex subjects increases the opportu-

nity for con men. When you add peoples’ desire for speed, saving money, and the DIY aspects into the mix, these carriers/ distributors will likely make a lot of money. I hope this article does not inspire anyone to follow this track. I suppose the old adage of giving customers what they want, even if what they want is not what they’ll actually get makes some sense. The real key to becoming a successful client advocate is to ask the client what they truly want. Ask if they really want a huge DIY project or the wrong coverages for a lesser price. Or do they want solid protection for their assets and protection if sued in a litigious happy society? Consumers really need advocates, and agents who care can be the best advocates. Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-4853868. E-mail: chris@burand-associates.com.

MARCH 9, 2020 INSURANCE JOURNAL | 47

My New Markets Commercial Auto

Market Detail: Osprey Underwriters

(www.ospreyuw.com) offers commercial auto insurance that is needed to cover the cars, trucks, and vans used in conducting business. Large fleets, as well as small businesses, should be properly covered by a commercial auto insurance policy. Coverage limits include: liability up to $2 million; deductibles range from $250 to $5,000; umbrella limits up to $100 million. Discounts available include: package discount; defensive driver course; CDL experience; business experience; Better Business Bureau; prior insurance discount. Coverage features include: Symbol-(1) available; monoline physical damage; motor truck cargo; additional insured; waiver of subrogation; hired and non-owned autos; on-hook coverage; trailer interchange; garagekeepers; bobtail coverage; radius up to 500 miles+; flexible billing options. Eligible vehicle types include: Trucks â&#x20AC;&#x201C; agricultural truck, box/ straight truck, bucket truck, catering truck, cement mixer, dump truck, flatbed truck, front loader garbage truck, pickup w/5th wheel, pump truck, tow trucks, and more; trailers â&#x20AC;&#x201C; auto hauler, bulk commodity trailer, dry freight trailer, dump body trailer, flatbed trailer, gooseneck trailer, livestock trailer, and more; vans & PPVs. Classes covered: special trade contractors; courier, mail and newspaper deliver; dealer and salvage plates; debris removal; dirt, sand and gravel; dry goods and refrigerated transportation; farming & livestock; food services, restaurants and more; fuel dealers (limited); hazmat transport; household goods movers; logging and log transport; manufacturers and wholesale distributions; mobile equipment;

This section brought to you by Insurance Journal's sister website:

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Need a Market? Find It. FAST 48 | INSURANCE JOURNAL | MARCH 9, 2020

professional services private passengers: vehicles; retail trade; security patrol (limited); towing services, gas stations and auto repair; trucking for-hire; warehousing; waste haulers (limited). Truckers general liability with ability to write risks with up to 20 units; property coverage on garage, truck repair or office buildings can be written; $1million/$2 million primary limits with up to $5 million excess; general liability limits available Available limits: Minimum $100,000; maximum $10 million Carrier: Unable to disclose, admitted States: Ala., Ariz., Calif., Colo., Conn., Dela., D.C., Fla., Ga., Ill., Ind., Iowa, Maine, Md., Mass., Mich., Mont., Neb., Nev., N.H., N.J., N.Y., N.C., Ohio, Okla., Pa., S.C., Tenn., Texas, Va., Wash., and W. Va. Contact: Osprey Underwriters at 203-4893400 or e-mail: quotes@ospreyuw.com

High Risk Work Comp PEO MGA

Blue to white collar options; new ventures w/no prior Available limits: Maximum $10 million Carrier: Various, admitted States: All states Contact: Brett Arthur at 813-460-9166 or brett@legacyemployerconcepts.com

March 9, 2020 MDAdvantage Insurance Company of New Jersey 100 Franklin Corner Road Lawrenceville, NJ 08648 The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

Market Detail: Legacy Employer Concepts, LLC (www.legacyemployerconcepts.com) offers coverage for PEO/employee leasing brokerage MGA firms. Any class code, any state available, including: restaurants, hospitality, cannabis industry, landscaping, tree trimming, trucking, towing, contractors, roofers, demolition, restoration, staffing companies, PEO master policies.

Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 02118-6200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

March 9, 2020

Rock Ridge Insurance Company B7 Tabonuco Street, Suite 912 Guaynabo, PR 00968

Employers Insurance Company of Nevada 10375 Professional Circle Reno, NV 89521

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts. Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 02118-6200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

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March 9, 2020

High Net Worth Homeowners

Market Detail: Irwin Siegel Agencyâ&#x20AC;&#x2122;s

(www.siegelagency.com) Private Client Group is a program for high net worth individuals seeking to protect their most valuable assets & benefit from flexible coverage, innovative products, services and competitive pricing. Private Client Group offers high deductible options, allowing clients to effectively control costs. Irwin Siegel works with the major high net

worth carriers and can provide multiple carrier quotes. ISA does not require any production minimums. Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Mark Madsen at 800-622-8272 or e-mail: mark.madsen@siegelagency.com

March 9, 2020

Amrock Title Insurance Company 5910 N. Central Expressway, Ste. 1445 Dallas, TX 75206

Farm Family Casualty Insurance Company 344 Route 9W Glenmont, NY 12077

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Title Insurance in the Commonwealth of Massachusetts.

The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

March 9, 2020

Hartford Insurance Company of Illinois 4245 Meridian Parkway Aurora, IL 60504-7901

Hartford Insurance Company of the Southeast One Hartford Plaza Hartford, CT 06155

The above company has made application to the Division of Insurance to obtain a Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts.

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Cerity Insurance Company 244 Fifth Avenue, Suite 2148 New York, NY 10001 The above company has made application to the Division of Insurance to amend their Foreign Company License to transact Property and Casualty Insurance in the Commonwealth of Massachusetts. Any person having any information regarding the company which relates to its suitability for the license or authority the applicant has requested is asked to notify the Division by personal letter to the Commissioner of Insurance, 1000 Washington Street, Suite 810, Boston, MA 02118-6200, Attn: Financial Surveillance and Company Licensing within 14 days of the date of this notice.

Advertisers Index Applied Underwriters 2, 3, 52 www.auw.com Berkley Luxury Group www.berkleyluxurygroup.com E2, M2 California Earthquake Authority mvp.earthquakeauthority.com W5 Cypress P&C www.cypressig.com FL3 FSLSO www.fslso.com FL7 GeoVera Insurance Company www.geovera.com SC1, S1 GIC Underwriters, Inc. www.gicunderwriters.com FL1 Great American Insurance Group www.gaig.com 17 Hudson Insurance Company www.hudsoninsgroup.com 11 Insurance Associates of America www.iaanetwork.com 21 Liberty Mutual www.libertymutualgroup.com/business 9 M.J. Hall & Company www.mjhallandcompany.com W1 Monarch E&S Insurance Services www.monarchexcess.com M7 National General Flood www.ngic.com FL9 Nationwide Mutual www.nationwide.com 23 Pacific Gateway Insurance Services www.pgiainsurance.com W3 PersonalUmbrella.Com www.personalumbrella.com 4, 5 Philadelphia Insurance Companies www.phly.com 7 Prepared Insurance www.preparedins.com FL16 Risk Placement Services www.rpsins.com W2 SIS Wholesale www.sisinsure.com 15 Society of Insurance Trainers & Educators www.insurancetrainers.org 47 St. James Insurance Group www.stjamesinsurance.com FL5 St. Johns Insurance Company www.stjohnsinsurance.com FL15, S3 Texas Mutual www.texasmutual.com SC3

MARCH 9, 2020 INSURANCE JOURNAL | 49

Closing Quote Why Banning Rating Factors Could Hurt Auto Even More

A By Jeffrey Brewer

Preventing insurers from using factors that are predictive of risk of loss would result in less accurate pricing with higher risk drivers paying less and lower risk drivers paying more for insurance.

uto insurance affordability is an important issue for consumers and the industry. Insurers take a wide variety of actions to make auto insurance as affordable as possible for consumers because they recognize that its cost can have a real impact on a family’s or individual’s wallet. The best way to achieve affordability for consumers is to address the most significant expenses that drive up the cost of insurance, while encouraging and supporting competition and innovation. Unfortunately, every year some lawmakers and regulators seek to address this problem by proposing to restrict or ban the use of certain factors that insurers use to fairly price policies. Often, the proposals are based on an all-too-common misconception that these factors are discriminatory and hurt low income and minority consumers. The simple fact is they do not. Currently, Congress is considering H.R. 3693, which would prohibit auto insurance companies from basing rates on anything other than a person’s driving record. For many Americans, driving records simply don’t tell the whole story. For example, speeding tickets and accidents can be expunged from a driver’s record by going to court, paying a fine, taking a course, or other methods that may not be feasible for every policyholder.

50 | INSURANCE JOURNAL | MARCH 9, 2020

To fairly and accurately set their rates, insurers use a wide variety of information, including driving history and other factors that have been proven to predict the risk of loss, in order to provide a more complete picture of a driver’s potential for filing a claim or having a loss. Since premiums are not based on one single factor, or group of similar factors, insurers are able to ensure that one small accident five years ago, or a speeding ticket does not have a monumental impact on the cost. Ultimately, this results in consumers benefiting from lower rates, more choices and greater market stability. This is why nearly all state insurance departments across the country have approved the use of these factors. State insurance departments subject all rating factors to rigorous actuarial standards and have a full toolbox of regulatory powers that require rates to reflect risk. In California, the Department of Insurance has proposed new regulations that would restrict affinity group auto insurance discount programs. These regulations would have the unintended consequence of taking away discount programs from drivers who are childcare workers, food technicians, electricians, music teachers and sanitation workers. These group discounts should be made available to more groups and occupations rather than denying discounts to millions of hard-working Californians. When purchasing insurance coverage, consumers simply

want a fair price that relates to the likelihood they will have an accident or file a claim. Eliminating the use of proven, reliable predictors of future loss would not lower consumers’ insurance costs. Rather, it would likely have the opposite effect, causing millions of drivers to pay more for auto insurance. Preventing insurers from using factors that are predictive of risk of loss would result in less accurate pricing with higher risk drivers paying less and lower risk drivers paying more for insurance. This creates subsidies, when all drivers want to pay only for their own risk of loss. Insurers want their products to be affordable and accessible to the largest possible number of people. The best way to make insurance more affordable is to help prevent crashes and injuries in the first place and insurers do that by advocating for highway safety. It is equally important to address congestion, fraud, the disrepair of roads, while tackling the high cost of litigation, medical expenses, and auto body repairs. These are the factors that truly impact affordability and drive up premiums. Legislators, regulators, consumer advocates, and insurers should work together on meaningful solutions to keep auto insurance affordable. Restricting proven tools used to price risk has been proven not to be the answer. Brewer is vice president of public affairs for the American Property Casualty Insurance Association. Email: Jeffrey.brewer@apci.org. INSURANCEJOURNAL.COM

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied.® For information call (877) 234-4450 or visit auw.com. Follow us at bigdoghq.com.