NAVIGATING NAVIGATING
What Is Foresight?
Foresight: The ability to see what is likely to happen in the future and to take appropriate action. At Hummel, we draw on our decades of experience, varied expertise, and relationships to help our clients exercise foresight to protect their financial futures. We hope you enjoy a small taste of that foresight through this quarterly publication.
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By Matt Yost,, CIC, CRM, Principal & Chief Sales Officer
Claims Mitigation Stories
By Kelley Wallick, Benefits Claims Specialist
The Importance of Perpetuation Planning A Guide for Churches and Nonprofits
By Vaughn Troyer,CIC, President of Hummel
By Chad Olinger, CIC, Principal & Business Risk Advisor
By Peyton Gentry, AIF, Financial Advisor
By Tom Gregory, LUTCF, RHU ®, Benefits Risk Advisor
An Interview with Brock Nettleton, CIC, CRM
Navigating a High-Risk Environment
By Brock Nettleton, CIC, CRM, Business Risk Advisor
Preparing for the Sunset of the Tax Cuts and Jobs Act
By Karl Schlabach, CLU ®, ChFC ®, CFP ®, CExP™, Lead Financial Advisor
Nonprofit Spotlight: A Night to Shine
Kelley Wallick Going the Distance: Claims Mitigation Stories
Brock Nettleton Building Relationships and Managing Risk
Karl Schlabach The End of an Era: Preparing for the Sunset of the TCJA
Matt Yost Navigating the Challenging Market of 2025
NAVIGATING NAVIGATING
The Challenging Market of 2025
Expert Insights on Insurance
Trends
By: Matt Yost, CIC, CRM – Principal & Chief Sales Officer
The commercial insurance landscape is evolving rapidly, influenced by a myriad of factors ranging from natural disasters to technological advancements. As we move through 2025, businesses must navigate a complex environment marked by fluctuating premiums, emerging risks, and shifting market dynamics. This outlook provides a comprehensive analysis of the key trends and predictions for various segments of commercial insurance, including property, general liability, auto, umbrella liability, and executive lines. By understanding these trends, businesses can better prepare and adapt their risk management strategies to ensure adequate coverage and mitigate potential losses.
COMMERCIAL PROPERTY
2025 PRICE PREDICTION:
CAT-FREE: FLAT TO +10%
CAT-EXPOSED: +5% TO +15%
MARKET TRENDS
• NATURAL DISASTERS – Through October 2024, the United States saw 24 weather-related disasters, with losses exceeding $1 billion, according to the National Oceanic and Atmospheric Administration. Overall, in 2024, insured losses from natural disasters were expected to reach $140 billion, most of which came from convective storms and wildfires.
• INSURANCE TO VALUE – A property’s replacement value is often affected by inflation and material prices, which have been volatile in recent years. Although cost inflation has subsided, insurance carriers will continue to focus on valuations to ensure limit adequacy.
• CARRIER REQUIREMENTS – To lower risk profiles, many insurance carriers have been mandating wind and hail deductibles and requiring actual cash value settlements on older roofs.
• REINSURANCE STABILITY – The capacity issues originating during the pandemic have begun to subside, making more capital available to primary insurers and allowing them to take on portions of larger, more complex risks, in turn making it easier for insureds to obtain coverage.
GENERAL LIABILITY
MARKET TRENDS
• LITIGATION CONCERNS – Third-party litigation funding (TPLF) is anticipated to be a $30 billion industry by 2028 and is a key factor in social inflation. TPLF is the practice of a third party providing funding to finance a lawsuit in return for a portion of the settlement. This form of funding has increased the cost of litigation, the frequency of suits being filed, and the rise of nuclear verdict settlements — awards that exceed $10 million.
• ACTIVE ASSAILANT EXPOSURE – FBI reports show that there were 229 active shooter events from 2019 to 2023, an increase of 89% over the previous five-year period. In response to this growing risk, businesses are turning to specialized insurance policies designed to cover losses related to active shooter incidents.
• PERFLUOROSULFONIC ACIDS (PFAs) EXPOSURE –Also known as “forever chemicals,” PFAs can be found in textiles, auto parts, household cleaners, food packaging, and more. They have been linked to numerous health issues, and as a result, insurance carriers have begun adding mandatory exclusions to all liability policies.
COMMERCIAL AUTO INSURANCE
MARKET TRENDS
• FLEET ELECTRIFICATION – Electric vehicles (EVs) continue to gain popularity in the US market, with experts estimating over 4 million in US fleets by 2030. Uncertainties surrounding the use of EV’s include exposure to cyber threats, pedestrian accidents, and battery problems. However, while EV use may initially increase insurance premiums, expectations are that prices will stabilize over the long term.
• DRIVER SHORTAGES – According to the American Trucking Association, due to rising freight demand and an aging workforce, driver shortages could skyrocket to 160,000 by the end of the decade. As a result, companies are lowering their driver applicant standards to fill open
positions. However, drivers with less experience and shorter driving records are more likely to be involved in accidents.
• NUCLEAR VERDICT CONCERNS – The American Transportation Research Institute has found that trucking verdicts have increased by more than 50% each year for the past decade, with nuclear verdicts in the sector doubling during this time frame.
UMBRELLA LIABILITY
MARKET TRENDS
• REINSURANCE CONSIDERATIONS – Capacity from reinsurers has softened, particularly for mid-market business with premiums between $10,000 and $100,000, as carriers have found this sector more profitable overall. However, severity trends continue to challenge the adequacy of excess rates, which will cause price increases, especially for businesses with large auto fleets or highhazard products.
Matt
Yost
EXECUTIVE LINES 2025 PRICE PREDICTION:
+2% TO +8%
MARKET TRENDS
• EMPLOYMENT PRACTICES LIABILITY (EPL) – Overall, pricing in the EPL market remained stable in 2024, largely due to increased competition and healthy growth. Capacity is improving, and the EPL insurance continues to become a staple in most commercial insurance programs.
• DIRECTORS & OFFICERS LIABILITY (D&O) – 2025 is expected to see the trend of abundant capacity, competitive pricing, and declining premiums continue. A significant contributor to past claims has been Environmental, Social, and Governance (ESG) activism, which will continue to pose a threat to the D&O market.
WHAT CAN YOU DO?
• Evaluate your commercial property limits and make inflationary adjustments to ensure you are not underinsured. Doing so will reduce the likelihood of experiencing a coinsurance penalty in the event of a claim.
• Develop a documented business continuity plan that will help you remain operational in the event of an incident.
• Review or develop vendor and subcontractor agreements that can insulate you from a business-disrupting lawsuit.
• CYBER LIABILITY – Despite an ever-evolving threat landscape, the cyber market softened in 2024, primarily driven by a capacity surplus and increased competition among insurers. In 2025, insurers will continue to emphasize cybersecurity controls, leveraging advanced risk management assessment tools (e.g., AI-powered data analytics) to predict losses and price policies more accurately, but it should remain a buyer’s market.
• Implement and update employee handbooks with policies pertaining to discrimination, harassment, medical leave, and general employment expectations.
• Examine your risk management practices relative to your fleet of vehicles and drivers. Implement safety programs concerning safe driving, driver qualification, hands free devices, and a family use policy.
• Talk to a Hummel Business Risk Advisor about other strategies to help mitigate loss!
This document is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.
Resources:
© 2025 Zywave, Inc. All rights reserved. “2025 Commercial Insurance Market Outlook.” Zywave, December 2024.
“State of the Market - 2025 Outlook.” Amwins, 3 Dec. 2024, www.amwins.com/resources-insights/article/state-of-the-market-2025-outlook.
“Insurance Marketplace Realities 2025.” Edited by Jon Drummond, WTW, Willis Towers Watson, 4 Oct. 2024, www.wtwco.com/en-us/insights/2024/10/ insurance-marketplace-realities-2025.
Going The Distance: Claims Mitigation Stories
By: Kelley Wallick – Benefits Claims Specialist
SHOULD I JUST GO AHEAD AND PAY THIS MEDICAL BILL, OR SHOULD I PUSH BACK?
After going through a major health event and receiving a steep statement in the mail, the answer can be quite complicated. Maybe there was a mistake, maybe there was a misunderstanding over which services were “in network,” or maybe the full amount should be paid promptly. Or maybe, as the insured, you owe less than you think.
This is where insurance claims experts like myself and my colleague, Julie Penso, come in to potentially save people from paying more than they should. We figure out what needs to be corrected, working with insured employees and their family members, the insurance carrier, and sometimes the health provider’s offices to determine what the issue is and how to resolve it. Ideally, our services are requested before a medical visit (which is not always possible) so that we can help our clients determine their expected share of cost for an anticipated service, such as hip replacement surgery, and whether the medical services fall within their provider network.
Most of the time—I estimate 75% of the time—the issues are fairly routine, and we can confirm whether a billing statement is correct or needs to be corrected and either work with the carrier on the client’s behalf or let them know what they need to do to get it resolved. The other 25% of our time, however, involves more complicated or unusual situations.
The fact is, most people do not understand how their health insurance plans work. Most know that they have a deductible to meet and that it’s in their best interest to keep their care within the plan’s network. But sometimes, the full scope of health coverage does not match expectations. They may not know the right questions to ask. They may be handling the expenses of a loved one they have recently lost, or they may be dealing with their own serious illness and need a helping hand. Here are a few relevant situations illustrating how Hummel supports clients while administering benefits plans:
UNTANGLING A MESS
A dying man told me he was worried about leaving his wife with hefty medical bills. I assured him I would be there for her if she needed me. About a week after his passing, I heard from her. “All he told me was that when it comes to all this stuff, I’m supposed to call Kelley at Hummel,” she said. “Will you help me?”
Of course, I did. Her statements showed she owed tens of thousands of dollars, yet what she was getting billed did not match the plan’s out-of-pocket limits. She clearly did not owe the portion she was being billed.
Dealing with grief and unfair expenses is a high burden, and I was happy to do my part to sort out this mess with the hospital and explain to her what she should and should not pay. I also helped her by sharing resources like a widow support group in her area, as I could tell she, understandably, needed additional support at this time in her life.
Kelley Wallick
ACTING AS A SUPPORTIVE FORCE
The spouse of an insured employee was diagnosed with breast cancer for the second time. With her permission, I used her login to access her insurance portal to view her explanations of benefits (EOB). I noticed a mismatch: The carrier had been incorrectly processing her care as out of network. This mistake kept happening, so I continued to help her make sense of her medical bills for about a year. Fortunately, her health improved, and she is now able to process her bills completely on her own.
RESEARCHING A RESOLUTION
A skin cancer patient came to us after a doctor recommended a less traditional method of removing cancer from his arm. Rather than Mohs surgery, where cancer lesions are removed layer by layer, the provider wanted to use laser-guided treatment, which is much less invasive.
The carrier denied this request. The doctor appealed, but the request was denied again. The last recourse was for the patient to appeal. Since the insured did not know how to do this, we helped him put together a letter stating his case. First, I went to the National Institutes of Health website to research clinical case studies about the effectiveness of this type of treatment. I found a couple that supported the doctor’s plan and included them in the letter.
The appeal was approved! The doctor’s recommendation was the right treatment for this client, and I’m pleased we were able to reach a resolution with the carrier.
Hummel supports employees and their families when they have questions or concerns about their benefits plans.
We know it’s not always easy. In most cases, we can act on the insured’s behalf to get answers and resolve claims issues or walk through what the next steps should be.
Some people look to us to guide them on what to ask, while others request that we handle it for them. We do both. We can also help before a major event by aiding employees in determining whether the services they are signing up for are in network or whether they need preapproval to be fully or partially covered.
Whether we aid clients before or after a procedure, we can help clarify the details of any health insurance plan. We’ve found that for most people, a sense of understanding can help them feel like they have at least some control over a scary or overwhelming situation. These are the times when my job is most gratifying, when we make a real difference in people’s lives.
At Hummel Group, we have been committed to our community since our founding in 1957 by Paul and Mary Hummel. As a locally and privately owned business, we understand the importance of intentional perpetuation planning to ensure our continued success and community impact.
Paul’s sons — Bruce, Brian, and Barry Hummel — intentionally planned for their own transitions away from the business. Today, Hummel still values being locally and privately owned, and remaining so is a primary goal around which our long-range planning is centered.
These business owners are personally connected to the success of the community.
I have personally observed how privately held businesses are vital participants in the local economy. These business owners are personally connected to the success of the community. Often, the privately held businesses give at a greater level to local schools, support nonprofits, or promote civic projects that enhance our neighborhoods.
At Hummel, we understand that failing to plan for the perpetuation of a business carries a financial risk with greater consequences than many realize. Our ownership team talks about an issue of perpetuation at almost every monthly planning meeting — it is that important to us.
Intentional business perpetuation planning offers several key benefits that can significantly impact a business’s longevity and success of a business, in the following ways:
1. ENSURES CONTINUITY: It helps ensure that the business can continue operating smoothly even after the current leadership steps down or retires. This is crucial for maintaining client relationships and business operations and has a direct impact on your employees.
2. PRESERVES BUSINESS VALUE: By planning ahead, you can preserve the value of your business and protect it from costly disruptions. Business owners should recognize that failure to plan for the transition will likely cost them thousands or millions of dollars of valuation.
3. FACILITATES EMPLOYEE SUCCESS: Perpetuation planning provides a clear roadmap for succession, identifying and preparing future leaders within the organization. This helps ensure seamless transitions and reduces the risk of leadership gaps. Developing the next generation of leadership now results in greater success today, not just in the future.
4. ALIGNS WITH PERSONAL GOALS: It allows business owners to align their personal financial goals with their business goals, ensuring that their exit strategy supports their personal plans and time frame.
Have you started thinking about your own business perpetuation plan? If not, now is the time to act. Reach out to your Hummel advisor, or consult with your trusted legal or tax counselor. Don’t delay—your future self and business partners will thank you.
– Vaughn Troyer, President of Hummel
Vaughn Troyer
OVERCOMING INSURANCE HURDLES
A Guide for Churches and Nonprofits
By Chad Olinger, CIC – Principal & Business Risk Advisor
The church and nonprofit insurance market is currently facing significant challenges, making it increasingly difficult for organizations to obtain adequate coverage. Previously, a competitive market worked to the advantage of the customer, but recent shifts have led to increased premiums and more stringent requirements. Understanding these changes and taking proactive steps can help churches and nonprofits better navigate this hard market.
UNDERSTANDING THE MARKET SHIFT
In the past, multiple insurance carriers competed to cover churches and nonprofits, driving down costs. However, in recent years, several key factors have contributed to the current market difficulties.
• INSURERS EXITING THE MARKET: Companies that have experienced substantial losses are withdrawing from the sector.
• REINSURANCE COSTS INCREASING: Larger reinsurance carriers, which provide financial backing for primary insurers, are raising their rates, which trickles down to individual policyholders.
• COVERAGE LIMITATIONS AND DOWNGRADES: Major providers have seen their financial ratings downgraded, affecting their ability to offer competitive policies and/or forcing churches and nonprofits to carry higher deductibles with increased premiums.
These challenges have led to significant rate hikes, with property insurance costs increasing substantially. Many organizations are now seeing premium rates as much as double what they were in previous years.
PROACTIVE STRATEGIES FOR CHURCHES AND NONPROFITS
In the face of rising costs, churches and nonprofits must adopt strategic approaches to risk management and financial planning. Key steps include the following:
• INCREASE RESERVES AND PROPERTY DEDUCTIBLES: Setting aside funds within your budget can help offset the result of higher deductibles and lesser coverages.
• IMPLEMENT RISK MANAGEMENT STRATEGIES: Conduct thorough background checks, implement safety training programs (especially for children’s volunteers), and regularly review policies and procedures.
• BE CREATIVE WITH SPACE SHARING: Collaborate with other ministries facing similar difficulties via sharing resources and/or reducing costs.
• WORK WITH A PROFESSIONAL: Engage with an insurance advisor who has access to multiple markets and brokerages to find the best coverage options.
• KNOW WHEN TO SHOP VS. WHEN TO STAY: Evaluate whether switching insurers or modifying existing policies is the best strategy based on your specific risks and coverage needs.
Chad Olinger
UNDERSTANDING YOUR COVERAGES
It’s essential to understand the various types of coverage available and how they apply to your organization.
• COMMERCIAL PROPERTY: Covers physical assets like buildings and equipment.
• GENERAL LIABILITY: Protects against claims of bodily injury or property damage.
• SPECIFIC CHURCH COVERAGES: Includes protections for religious expression, pastoral counseling, sexual misconduct, directors and officers (D&O) liability, etc.
• COVERAGE FOR VOLUNTEERS AND STAFF: Extends protection to those who serve your organization.
ADDRESSING CHURCH-SPECIFIC COVERAGES, INCLUDING SEXUAL MISCONDUCT COVERAGE
Church-specific coverages, particularly regarding sexual misconduct coverage, remains a pressing concern. Many insurers are tightening restrictions on these policies due to the increased risk of lawsuits stemming from past incidents. Changes in the statute of limitations mean that claims can now be filed decades after an event occurred, exposing churches and nonprofits to unexpected legal and financial risks.
To mitigate these risks, organizations should do the following:
• Conduct thorough background checks on staff and volunteers
• Implement structured safety training programs
• Review insurance policies to ensure adequate retroactive coverage
BUILDING STRONG RELATIONSHIPS FOR LONG-TERM PROTECTION
Ultimately, navigating the hard insurance market requires more than just finding a policy—it involves building relationships with trusted professionals who can guide churches and nonprofits through their unique challenges. Understanding coverage options, implementing proactive risk management, and knowing when to make changes can help organizations protect their mission and financial health in an increasingly difficult insurance landscape. By staying informed and strategic, churches and nonprofits can weather this challenging period and continue to serve their communities effectively.
Chad Olinger is a dedicated Principal & Business Risk Advisor at Hummel Group leading our Newark, Ohio, location. During his decade working in the field of education, Chad taught middle school and coached various high school sports, all while obtaining a master’s degree in educational leadership. Following his tenure in education, Chad spent four years in vocational ministry, gaining a deep understanding of churches, church-related ministries, and nonprofits.
In addition to his work with churches and nonprofits, Chad works closely with various industries, including logging, lumber, and manufacturing. His mission is to assist his clients in navigating the challenging market by helping them understand their coverage and find the plans that work best for their organizations.
THE RETIREMENT CASH FLOW GAME
By: Peyton Gentry, AIF – Hummel Financial Advisor
The year is off to another up and down start in the financial markets, and those first quarter retirement account statements are starting to roll in. Whether retirement is just a few years away or decades down the road, it’s completely normal to take a look at those numbers and think, “Am I doing enough to prepare for life without a paycheck?” It’s easy to get caught up in the idea that you need to hit some magic savings number to retire “comfortably,” but retirement isn’t all about the size of your nest egg.
Retirement is a cash flow game —making sure you’ve got more money coming in each month than going out. This idea isn’t all that different from managing your finances during your working years, but in retirement, the dynamics shift. Without a steady paycheck from your job, you’ll need a clear plan to ensure your income sources can reliably cover your expenses.
Let’s break it down. On one side of the cash flow equation, you’ve got your income—think Social Security, pensions, rental income, or maybe some part-time work. On the other side, you’ve got expenses, which include everything from housing and utilities to healthcare and travel plans. The goal is to align your fixed income (those predictable, steady sources) with your regular expenses. That way, your “extra” savings act as a cushion for both the things you want to do—travel, hobbies, spoiling the grandkids—and for those inevitable unexpected costs.
But what if there’s a gap between your fixed income and monthly expenses? That’s where good financial planning before retirement comes into play. Instead of focusing solely on saving more money into retirement accounts, you can explore other strategies to balance the equation, such as the following:
• Delaying Social Security to maximize your benefits
• Paying off debt to lower your monthly expenses
• Allocating a portion of your retirement savings to an income-producing investment
• Contributing to an HSA to help with healthcare expenses if you plan on retiring before you’re eligible for Medicare
These options give you flexibility and control over both sides of the cash flow equation—income and expenses. And here’s the kicker: Time is your greatest advantage. The earlier you start thinking about these decisions, the more options you’ll have down the road. Even if retirement feels like a distant dream, taking stock of your financial situation and laying out a plan now will give you more confidence and flexibility when the time comes. It’s never too early to ask, “What steps can I take today to win the retirement cash flow game?” Future you will be glad you did.
Peyton Gentry
Historic Finds and Lasting Connections
Historic Finds and Lasting Connections
Tom Gregory, LUTCF, RHU® – Benefit Risk Advisor
Tom Gregory, LUTCF, RHU®, Benefits Risk Advisor for Hummel, has an interesting hobby and a YouTube channel he uses to share his findings with others.
The discovery of arrowheads in local farms and fields offers a window into the past. For observers, the primitive sharpened stones bring back memories of hunts they took with their fathers and other family members. And for searchers, arrowheads help us all feel connected to a longago time, to hunters and gatherers who once lived on the same land as us.
For Tom Gregory, LUTCF, RHU®, Benefit Risk Advisor for Hummel, his beloved hobby is also helping him make connections to present-day people, including landowners and fans of his YouTube channel, CommissionerTom. He’s heard from many people who have told him about their own arrowhead-finding memories and shared their admiration that he’s keeping up with the tradition. Tom’s wife, Jenny, tells him he shouldn’t let the recognition go to his head, but Tom is simply enjoying all the experiences that these hunts have to offer. He shared with us how he got started and how others can take up the hobby too.
Getting Their Lives Back
Tom’s own father is the reason he first got into arrowhead hunting, although he admits he wasn’t impressed at first. He was about nine years old when his father took him and his brother on a hunt, and he mostly remembers complaining that the experience left him hot, tired, and thirsty. It wasn’t until he was about 15 and living in a rural area that the arrowhead “bug” caught him; he and his cousin got inspired by a neighbor who showed them his arrowhead collection. Since then, Tom has uncovered a wide range
of tools and artifacts, including Paleo-Indian arrowheads that date back to between 10000 and 14000 BC. Artifacts from this group, who are known to be nomadic, are usually not concentrated in one area, Tom says. More common in Wayne County are artifacts from the Adena and Hopewell cultures that stem from the 500 BC to 100 AD time frame. Only arrowheads that have an intact point can have their origins traced back, but finding such tools is rare.
Every Hunt Is Productive
Even if nothing new is found during an arrowhead hunt, Tom considers it a successful experience. It’s time spent outdoors, enjoying the peacefulness that only nature can offer. “Success for me is not how many arrowheads I find,” he says. “I just love being out there.” It’s also great exercise; he’s amassed as many as 20,000 steps on an excursion.
Tom started his YouTube channel over a decade ago after watching videos of arrowhead aficionados on their hunts. He quickly earned a following and now has more than 4,000 subscribers who enjoy his succinct videos showing his finds around Ohio. Despite suggestions that he should branch
Tom Gregory
out to other topics, he’s discovered that his followers like watching his videos for one particular reason: “They want to see me go out in a field, walk the field, find an arrowhead, and talk about it,” he says. “I pretty much stay in my lane. They’re not interested in my garden or my pets.”
He’s also stayed away from monetizing his channel, saying he makes the videos simply for “the sheer enjoyment of sharing what I do.”
Present-Day Connections
Tom has received warm feedback through his YouTube channel and in person. Strangers have come up to him at artifact trade shows calling him Commissioner Tom. A seven-year-old drew a picture of herself and Tom hunting for arrowheads together. And he’s turned some virtual acquaintances and landowners into friends.
He’s even committed some of his finds to these acquaintances. With permission, he once undertook an archaeological dig on a property that uncovered, close to 200 arrowheads over the course of three years and many hours of sifting and shoveling. Afterward, he met with the property’s family in a Hummel training room to give them a presentation. “I showed them all the stuff we found and talked about the history. Then, I announced that my intention is that it will all go back to their family.”
Tom’s children have not taken up the hobby, but he’s always willing to share tips with others on how they can find arrowheads:
Focus on Water:
Arrowhead finds are more likely to occur near a water source, such as a spring or major waterway, and after a major rainfall.
Look High:
Higher-elevation areas tend to have been tilled by farmers over the past century, and erosion has opened up opportunities for exposed arrowheads. These are also the likeliest spots where the arrowhead makers set up camp. (A caveat with this tip, Tom says, is his wife often finds arrowheads at lower elevations.)
The work can be physically difficult and is not always fruitful.
Tom suggests going between the start of spring planting and when corn stalks reach about knee high. He also says to wait until right after a hard rain washes away some of the Earth’s surface to potentially reveal a tiny treasure.
Be Patient: Have Good Timing: Always Seek Permission:
Arrowhead hunting is not allowed on federally owned land; for privately owned land, you’ll want to ask the owners whether you can use their land and whether you can keep any findings.
As you hunt, look for pieces of flint, which are flat and shiny on one side and chipped on the other. Their presence implies that you are close to historic activity. “If you walk for 45 minutes and don’t pick up a single piece of flint, it doesn’t mean you can’t find an arrowhead, but you’re probably not in an area where you’re going to find much,” Tom advises. Happy hunting!
Visit Tom’s YouTube Channel https://www.youtube.com/ commissionertom
Tom Gregory pictured with his father and son.
Arrowhead Tom found
Building Relationships and Managing Risk
An Interview with Brock Nettleton, CIC, CRM
Brock Nettleton, Business Risk Advisor at Hummel Group, specializes in helping oil and gas companies enhance their risk management programs by tailoring solutions to meet their specific needs.
How long have you worked at Hummel?
I first started as “the intern” during the summer of 2017. I then began working full-time in an advisor capacity in January of 2018 after earning my bachelor’s degree in business administration with a focus on insurance and risk management.
What
does a risk advisor do?
A risk advisor helps businesses identify, assess, and manage risk. At the end of the day, our clients want assurance that their assets, operations, and financial stability are protected. To achieve this, we help implement strategies to mitigate risk and provide recommendations for the appropriate insurance coverage given the exposure.
How
did you first get involved in this field?
I grew up in Wayne County, which is known for being a rural agricultural community. While I love that aspect, I wanted to flip the script after high school and experience college in a “bigger city,” which led me to attend The Ohio State University.
Unlike most people, who end up in the insurance industry by chance, I chose to pursue a career in this industry early on. In my sophomore year of college, we had to pick a specialization within Ohio State’s business school. I initially shrugged off my advisor’s recommendation to investigate the insurance specialization because I had always thought a finance or marketing degree was more attractive. Given the fact that the finance department was at maximum capacity at the time, I took the introductory class for insurance, and things automatically clicked. I then realized the opportunity that exists within this industry, and here we are.
What were your early experiences in the industry like?
My first job in the insurance industry was an internship with Liberty Mutual. It was a personal lines sales role that included A LOT of cold calls trying to sell home and auto insurance. While I liked the challenge, I came to the realization that I would prefer a job with more variety and face-to-face interactions. The following summer, I interned with Hummel. This enabled me to determine what I enjoyed most (commercial insurance) by working on projects across all our different departments.
What is life outside of Hummel like for you?
I believe many of us at Hummel would have a similar response centered around our families. For my wife, Megan, and me, life is about to change significantly, as we expect our first child at the end of June.
Megan and I were married four and a half years ago during the pandemic. With limited honeymoon options in 2020, we decided to tour Northern Michigan, a trip we have since repeated to revisit some of our favorite spots. We both enjoy traveling, whether it is a quick weekend trip to my in-laws’ cabin in West Virginia, Jackson Hole, Tennessee, or somewhere tropical. We find solace in escaping the busy day-to-day to explore new places.
In my spare time, you can likely find me working outside on our family property. With my grandparents turning 93 this year and still residing there, much of the property maintenance falls to me, and I treat it as a hobby. I also find enjoyment in all things outdoors, including boating,
Brock Nettleton
riding side-by-sides, golfing, hiking, hunting, and anything that “goes bang.”
How does your background affect how you approach risk management and insurance?
My background has significantly shaped my approach to risk management and insurance. Growing up in a family that emphasizes faith, work ethic, integrity, and humility has been instrumental when it comes to applying those disciplines daily. Academically, my studies focused on insurance and risk management have provided a solid foundation for understanding risk, the principles of insurance, and how the industry operates.
Do any particular client types seem to work really well with you?
We work with a diverse array of clients, ranging from contractors and manufacturers to real estate investment firms and equipment dealers. Over the past five years, I have focused more on the oil and gas industry. I have found that clients resonate particularly well with our approach to assessing their risks, providing tailored solutions, and implementing strategies to mitigate those risks and protect their businesses moving forward. Those working in the oil
and gas industry benefit from our detailed approach to risk management, ensuring they have comprehensive coverage tailored to their specific needs.
What are some common issues that prospects and clients are dealing with right now?
Master service agreements (MSAs) in the oil and gas industry often require specific coverages and endorsements to be added to policies. Not everyone is familiar with these endorsements or understands the exact requirements. At Hummel, we meticulously review these contracts to ensure our clients have the necessary coverages and limits included within their policies and remain in good standing.
Over the past 5–10 years, the excess liability marketplace and capacity of insurance carriers have significantly decreased. When I first entered the industry, securing a full $10 million excess liability policy from a single carrier was relatively straightforward. Nowadays, you are often required to build a tower of excess liability using multiple insurance carriers with a maximum offering of $5 million per policy.
Increasing rates and limited options for insurance placement continue to be common issues.
Increasing rates and limited options for insurance placement continue to be common issues. With only a limited number of carriers providing coverage in the oil and gas industry, this can lead to higher risk concentration, reduced capacity, and less competition among insurers. As a result, premiums can rise, and clients may face less favorable terms.
What do you enjoy most about your job?
Building relationships with clients is something I truly enjoy, whether that involves reconnecting with someone I already know or meeting someone new. I find the sales process rewarding, but equally important is servicing existing clients
HIRING!
Samantha Lusk - Business Account Manager
Peyton Gentry, AIF - Financial Advisor
Oil and Gas
Navigating a High-Risk
Environment
By: Brock Nettleton, CIC, CRM – Business Risk Advisor
Operating in the oil and gas industry means navigating a challenging and high-risk environment. Comprehensive insurance coverage is essential to protect against the unique exposures that can lead to significant financial and operational impacts. In this article, we will explore the inherent risks of the oil and gas industry and delve into the specialized insurance coverages that extend beyond the standard general liability policy.
B. Drilling and Well Servicing Equipment – Damage can occur to equipment used in drilling and extraction processes, including but not limited to the casing, pipe, bits, tools, pump, or other machinery.
1. EXPLOSION & COLLAPSE HAZARD:
A. Explosion Hazard – Explosions can occur due to equipment malfunctions, blasting, or unexpected ruptures. The presence of flammable materials and high-pressure systems increases the risk of explosions, which can lead to significant property damage and loss of life.
B. Structural Collapse Hazard – Structural collapses involve the unexpected failure or collapse of a structure. This is particularly relevant where heavy machinery and infrastructure are common. A collapse can result in extensive damage to facilities and pose serious safety hazards to workers.
C. Claim Example – During the construction of a new pipeline, an explosion occurs due to a gas leak, causing a section of the pipeline to collapse. The incident results in significant environmental damage and disrupts the construction schedule. XCU coverage would help cover the costs of environmental cleanup, repairs to the collapsed section of the pipeline, and any additional expenses incurred due to the construction delays.
2. UNDERGROUND RESOURCES & EQUIPMENT HAZARD
Damage to underground resources, including oil, gas, water, and mineral substances, can have severe environmental consequences, such as contamination of water tables. Below are additional components to this exposure beyond underground resources.
A. Exploration of Production Areas – This includes any well, hole, formation, strata, or area where exploration or production of substances is conducted.
C. Claim Example – A well servicing contractor is performing maintenance on an oil well. During the operation, a piece of equipment malfunctions, causing a rupture in the well casing. This rupture leads to the contamination of an underground aquifer, affecting the local water supply. Underground Resources and Equipment coverage would help cover the costs associated with repairing the well casing, addressing the contamination of the aquifer and restoration of the water quality, and handling any legal liabilities arising from the contamination of the water supply.
3. BLOWOUT & CRATERING HAZARD (CONTROL OF WELL COVERAGE)
A. Blowouts – A blowout is the uncontrolled eruption of oil, gas, water, or drilling fluid from a well. These incidents can occur when high-pressure reservoirs are penetrated, leading to significant damage and potential fires. Blowout coverage helps manage the costs associated with controlling the blowout, repairing the well, and addressing any resulting pollution.
B. Cratering – This hazard involves the creation of a bowl-shaped depression in the Earth’s surface around the well caused by the erosive and eruptive action of oil, gas, air, or water flowing to the surface without restriction from the well.
C. Claim Example – During a drilling operation, the bit unexpectedly hits a high-pressure gas pocket. This causes a blowout, resulting in significant damage to the wellbore and surrounding formations. The blowout also damages
Brock Nettleton
the drilling equipment. Blowout & Cratering (Control of Well) has four coverage parts that would indemnify the contractor in this scenario:
i. Cost of Well Control: Actual costs to regain control of the well and/or firefighting expenses from a well.
ii. Restoration or Redrill Expense: Repairing the well via redrilling, recompleting, fishing, or salvage operations.
iii. Pollution Cleanup: Seepage, pollution/cleanup, and containment expenses are provided in addition to legal and contractual liability (including defense costs) for damages to the property of others or bodily injury.
iv. Damage to Specialty Contractors Equipment: (Care, Custody & Control): Covers damage to property of others leased or rented or for which the insured is legally or contractually liable. This includes loss of down-hole tools as a result of an out-of-control well.
4. POLLUTION & ENVIRONMENTAL HAZARD – Property damage arising out of the discharge, dispersal, release, or escape of natural gas, oil, or other petroleum substances/ derivatives, well drilling, or servicing chemicals, or saline substance into or upon land, the atmosphere, or a water source.
A. Pollutants – Pollutants can be defined as any solid, liquid, gaseous, or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals, and waste. Waste includes material to be recycled, reconditioned, or reclaimed.
B. Varying Coverage Types – Pollution Liability has various coverage forms, which are often specific to a business’s operations. Common types include Sudden & Accidental (Time Element), Gradual (Claims Made), Contractor’s Pollution, Site Pollution, Underground Tanks, and Transportation Pollution. Note that coverage applicability and discovery/reporting requirements can vary depending on the form and insurance carrier.
C. Claim Example – An acidizing contractor is performing a well stimulation procedure to enhance oil production. During the operation, a malfunction in the acid injection system causes a significant acid spill into the surrounding soil and groundwater. The spill results in extensive environmental damage, contaminating the local water table and affecting nearby agricultural land. Pollution coverage would help cover the costs associated with the environmental cleanup of the acid-contaminated soil and groundwater, any legal claims or fines imposed by regulatory bodies, and any claims made by third parties for property damage or loss of agricultural productivity.
Contractual obligations and regulatory bodies often dictate companies to carry adequate insurance for these hazards. However, the business owner and risk manager should work together to ensure the proper coverage is in place for respective business operations. Having specialized coverage helps mitigate the financial risk of working in the oil and gas industry by ensuring that companies can manage unexpected expenses without jeopardizing their financial stability.
References:
https://www.insurancejournal.com/magazines/mag-features/2006/03/20/68549.htm
https://www.drillingmanual.com/underground-blowout/#h-definition
https://www.businessinsuranceusa.com/news/insurance/explosion-collapse-underground-xcu-coverage/ https://profitingfromsafety.com/why-pollution-insurance-is-critical-in-the-oil-and-gas-industry/ https://www.chubb.com/content/dam/chubb-sites/chubb-com/us-en/business-insurance/petroleum/documents/pdf/42010033_energy_pollution_differences.pdf
Preparing for the Sunset of the Tax Cuts and Jobs Act
What you need to know
By: Karl Schlabach, CLU®, ChFC®, CFP®, CExP™ – Lead Financial Advisor
As the Tax Cuts and Jobs Act (TCJA) of 2017 approaches its sunset at the end of 2025, taxpayers and businesses alike are preparing for significant changes. The TCJA brought about some of the most substantial revisions to the US tax code in decades, aiming to stimulate economic growth and simplify tax filing. However, with its expiration on the horizon, the landscape is set to shift dramatically. This article delves into a few key aspects of the TCJA, its impending sunset, and the potential impacts on businesses, individuals, and estates. We will also explore several proactive strategies to help mitigate these effects, ensuring you are well prepared for the changes ahead.
WHAT IS THE TAX CUTS AND JOBS ACT?
The TCJA, enacted in December 2017, introduced sweeping changes to the US tax code. Key provisions included reduced individual and corporate tax rates, an increased standard deduction, and a doubled estate and gift tax exemption [1]. These changes were designed to stimulate economic growth and simplify the tax filing process.
BUSINESS IMPACT
For businesses, the TCJA brought several benefits, including a reduction in the corporate tax rate from 35% to 21% and the introduction of the Qualified Business Income (QBI) deduction, which allowed pass-through entities to deduct up to 20% of their income [2]. However, with the sunset, the QBI deduction will expire, and corporate tax rates may increase, affecting profitability and cash flow for many businesses [3]may increase, affecting profitability and cash flow for many businesses [3]
Example: A small business owner who operates as a sole proprietor and currently benefits from the QBI deduction will see their taxable income increase by 20% once the deduction expires. This could result in a higher tax liability and reduced funds available for reinvestment in the business [4].
PERSONAL IMPACT
Individuals will also feel the effects of the TCJA sunset. The individual tax rates, which were lowered under the TCJA, are set to revert to higher pre-2018 levels. The standard deduction, which was nearly doubled, will be reduced, potentially increasing taxable income for many taxpayers [5]. Additionally, the child tax credit will decrease from $2,000 to $1,000 per qualifying child [6].
Example: A married couple with two children currently benefits from a $30,000 standard deduction and a $4,000 child tax credit. After the sunset, their standard deduction will decrease to approximately $16,600, and their child tax credit will be halved to $2,000. This change could significantly increase their taxable income and reduce their overall tax savings [7].
ESTATE IMPACT
One of the most significant changes will be the reduction of the estate and gift tax exemption. As of 2025, the federal estate tax lifetime exemption is $13.99 million per individual. This means that individuals can transfer up to this amount to their heirs without incurring federal estate tax. For married couples, the combined exemption is $27.98 million. After the TCJA sunset at the end of 2025, the federal estate tax lifetime exemption is expected to be reduced to approximately $6 million per individual. For married couples, the combined exemption will be around $12 million. This reduction means more estates will be subject to federal estate taxes, potentially reducing the inheritance left to heirs.
Example: A couple with an estate valued at $15 million who passes away before the TCJA sunset can transfer their entire estate tax-free. However, if they pass away after the sunset, their estate will be subject to federal estate taxes on the amount exceeding the new $12 million exemption, potentially resulting in a tax liability of approximately $1.2 million.
Karl Schlabach
TIPS FOR LIMITING THE EFFECTS OF THE SUNSET
Predicting Congressional decisions is challenging — will they extend, modify, or let the provisions expire? Staying informed and planning ahead is crucial. Below are some strategies to consider regardless of the outcome.
REVIEW YOUR ESTATE PLAN
It’s essential for everyone to ensure that your entire estate passes to your intended beneficiaries efficiently and with as little administrative hassle as possible. Taking a few steps now can have a tremendous impact.
• Review your beneficiary designations and your essential legal documents (will, powers of attorney, healthcare directives, trusts, etc.).
• Update your personal financial statement. Often, individuals do not fully value their business or real estate holdings.
• If your net worth exceeds $10 million, discuss the potential impact of the TCJA sunset with a financial advisor and estate planning attorney.
• For those with a net worth over $30 million, it’s vital to review now to potentially maximize current opportunities.
EXPLORE TAX-MANAGED INVESTMENT STRATEGIES
• In 2024, many equity mutual funds distributed significant capital gains, with averages of around 5% and some funds exceeding 10%. These distributions can result in unexpected tax liabilities for investors [8] [9] [10].
• Consider using more tax-efficient investment vehicles, such as ETFs or individual securities, with a tax management overlay for a tax smart, personalized portfolio.
REVIEW RETIREMENT PLAN DESIGNS TO MAXIMIZE CONTRIBUTIONS
• Retirement plan contribution limits have continued to rise.
• Significant contribution limits are available depending on your specific plan design. Contributions can help maximize retirement savings and potentially provide considerable income tax deductions.
CONSIDER STRATEGIC CHARITABLE GIVING
• Donating appreciated assets rather than cash can provide a double tax benefit.
• This strategy allows you to claim a charitable deduction, avoid capital gains tax, and rebalance your investment portfolio.
Talk with your trusted professionals to identify potential opportunities for your situation. Regardless of the outcome this year, our advisors are available to collaborate with you to create a clear path forward.
Keep in mind, tax rules are constantly changing and there is no guarantee that the current tax landscape will remain the same or that the current tax rules set to expire will not be extended in years ahead. Tax and/or legal advice is not offered by Hummel. Please consult with your tax and legal professional for additional guidance appropriate to your specific situation.
Registered Representatives offer Securities through The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way, Cincinnati, Ohio 45242. Phone: 513-794-6794. Investment Advisory Services offered through O.N. Investment Management Company and Hummel Wealth Management, LLC. The O.N. Equity Sales Company and O.N. Investment Management Company are not affiliated with Hummel Wealth Management, LLC.
[1] Sessa & Dorsey. (2024, September 4). The 2026 Sunset: How the TCJA Expiration Could Impact Your Estate and What to Do Now. Retrieved from https://www.sessadorsey.com
[2] First Citizens Bank. Planning for the TCJA Estate & Gift Tax Sunset. Retrieved from https://www.firstcitizens.com
[3] The Tax Adviser. (2023, December). Tax Planning for the TCJA’s Sunset. Retrieved from https://www.thetaxadviser.com
[4] Allen Barron, Inc. How Does the TCJA Sunset Affect Business Taxation? Retrieved from https://allenbarron.com
[5] Ironclad Wealth Management. 3 Key Areas the TCJA Sunset Affects Small Business Owners. Retrieved from https://www.ironcladwm.com
[6] Innovative CPA Group. The Effects of the Tax Cuts and Jobs Act Sunsetting. Retrieved from https://www.innovativecpagroup.com
[7] My Personal Tax CPA. TCJA Sunset: Key Tax Changes Approaching in 2025. Retrieved from https://mypersonaltaxcpa.com
[8] Morningstar. Ready for a Big Capital Gains Tax Bill? Retrieved from https://www.morningstar.com
[9] Capital Group. (2024). 2024 Year-End Distributions. Retrieved from https://www.capitalgroup.com
[10] Hartford Funds. (2024). 2024 Hartford Mutual Funds Capital Gains Distributions. Retrieved from https://www.hartfordfunds.com
Rolling Out the Red Carpet
For one night in Wayne County, everyone is treated like royalty
February 7, 2025, was truly a night to remember at Grace Church in Wooster, Ohio. People lined up along a red carpet to welcome around 200 guests of honor who were dressed to the nines and ready to have the time of their life. For the next couple of hours, they were treated like celebrities, were doted on, and made to feel God’s love for them.
Designed to honor people with special needs ages 14 and up, the prom-like event was one of over 700 held that night across the country and world by Night to Shine, an initiative sponsored by the Tim Tebow Foundation. Night to Shine events include the usual amenities you’d expect to see at a high school prom—colorful decorations, an inviting dance floor, professional photography, and dinner and dessert. But they also have other benefits that make the time memorable for everyone involved: hair and makeup stations, a karaoke machine, a respite room for parents and caregivers, and “a crowning ceremony where every guest is honored as a King or Queen—the way God sees them each and every day.”
“It serves a community that can often be overlooked and kind of forgotten at times,” says Austin Taylor, Hummel Group principal and benefits accounts executive, who emcees the Wayne County event every year. He also serves on the local Night to Shine board along with Andy Yost. “To see the guests and everyone have such a meaningful, purposeful time, it’s pretty awesome,” as per the organization’s website.
As one of the few people who gets to interact with every single guest making their way down the red carpet, Austin says he’s in a unique position to see firsthand the smiles and excitement before the partying begins. “As guests walk
down the red carpet, people will cheer for them, welcoming them to the prom and making them feel like a celebrity.”
Night to Shine is a unifying event for all involved, and the excitement spills over to the hundreds of organizers and volunteers, who consistently show up year after year. Among other responsibilities, these volunteers provide refreshments, freshen up the guests’ hair and makeup, and moderate games in the respite room. Each guest is also matched up to a volunteer “buddy” so that caregivers are free to fully enjoy themselves as well.
Acknowledging the unique challenge that caregivers of people with special needs face, the event gives them moments of fun by offering space for them to play games and mingle with others who know exactly what they’re going through. “Seeing how appreciative the parents are and how much they enjoy seeing their children cared for and celebrated, that’s pretty special,” Austin says.
The Wayne County event was started by Patrick and Sarah Meenan and has been held at Grace Church since 2018. It’s free for participants and is made possible by the generosity of volunteers who donate their time along with sponsorships from local companies. “We are beyond appreciative of the time, money, and support we receive from our community for Night to Shine. Our faithful partners help us celebrate people with special needs in Wayne County,” Sarah Meenan remarked when letting us know that there are over 300 volunteers each year helping run all parts of the event. Each year, multiple Hummel employees volunteer at the event in different capacities. The volunteers get to know the guests, and friendships form as a result. One guest called Patrick after this year’s event saying he cannot wait until next year.
To learn more about Wayne County’s Night to Shine, go to www.nighttoshinewayneco.com.
BY THE NUMBERS
Since 2014, Night to Shine, a Tim Tebow Foundation initiative, has created special evenings across 72 countries and all 50 US states. These events have included:
625,000+ guests with special needs
1.1M+ volunteers
821 host churches in 2025
Andy Yost helping guest at the Night to Shine event
Andy Yost crowning guest at the Night to Shine event
