Insurance Journal

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‘SICK BUILDING’ SYNDROME Mass. Case Extends Coverage

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OFFICE ODDBALLS The Power of Outsiders

PANDEMIC PROBLEMS How Flu Impacts Workers’ Comp

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Inside This Issue May 18, 2009 • Vol. 87, No. 10 • East Region

EAST COVERAGE 10 | Court: Insurer Must Indemnify Contractor in Mass. ‘Sick Building’ Case Closely Watched Opinion Focuses on Intangible Damage to Property 10 | Marsh & McLennan Settles Connecticut Price-Fixing Claims Broker Settles for $2.4 Million, Admits No Wrongdoing

SPECIAL REPORT

• Inside & Outside the Beltway with the Big ‘I’ • Why Health Care Reform Matters to P/C Agents • P/C Agents Join Fight against Government Plan • Plus, Big “I” CEO on Carrier Relations, AIG and Agent Grassroots

NATIONAL COVERAGE N4 | International Report Fight for IPC Re Intensifies; Pirates Continue Attacks; Solvency II Gets EU OK N6 | Closer Look: Restaurants/Bars/Liquor Attacked in a Restaurant: The Insurance Implications of Assault and Battery N12 | SPECIAL REPORT: Inside & Outside the Beltway with the Big ‘I’ Why Health Care Reform Matters to P/C Agents. P/C Agents Join Fight against Government Plan... Plus, Big “I” CEO Weighs in on Carrier Relations, AIG and Agent Grassroots N24 | Special Report: 2009 Workers’ Compensation Directory

6 | INSURANCE JOURNAL-EAST REGION May 18, 2009

DEPARTMENTS 14 9 9 N18 8 12

| | | | | |

Business Moves Declarations It Figures MyNewMarkets Opening Note People

10 | Pennsylvania Supreme Court Upholds Denial of Coverage for Late Notice Insurers Say Decision Upholds Plain Meaning of Insurance Contracts

IDEA EXCHANGE 13 | The Power of Oddballs Office Outsiders Make Everyone Better N1 | Pandemics in the Workplace How a Flu Pandemic Impacts Workers’ Comp

N1 Workplace Pandemics How the Flu Impacts Workers’ Comp

N2 | Capital, Capital Where Did All the Money Go? N16 | Growing Your Property/Casualty Agency Benefit by Experimenting With a Second Agency Brand N20 | A Practical Guide to Workers’ Compensation Prepare Clients by Knowing the ABCs of Premium Audits N22 | Education Strategy Propels Workers’ Comp Agency Agency Shows Growth Even in Down Economy

10 ‘Sick Building’ Syndrome Closely Watched Mass.

Case Centers on Intangible Damage to Property

N36 | Closing Quote: PIA’s Ken Auerbach Amid Obstacles, Opportunities Exist

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High Value Property

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Idea Exchange Opening Note Publisher Mark Wells Chief Executive Officer Mitch Dunford

All Insurance Is Local

EDITORIAL

T

his recession is costing more than jobs; it’s also costing business leaders their reputation. A new Harris/ Financial Times poll shows that the economic crisis has damaged the reputation of business leaders very badly. Large majorities of the public in the U.S. and the five largest European countries (Great Britain, France, Germany, Italy and Spain) say their opinions of business leaders have become worse, that the recent behavior of “business leaders in general” has been unethical, and that they are overpaid.

Fully 68 percent of American adults say that “as a result of the current economic situation” their opinions of business leaders have become worse. Even more Americans — 76 percent — believe “the recent behavior of business leaders in general” has been unethical.

Fully 79 percent of Americans, and similar majorities in the five European countries, believe that business leaders “are generally paid too much.”

A majority (68 percent) in the U.S. believe that governments should claw back bonuses or pensions of business leaders whose companies have been bailed out with government money.

Massive majorities of the public in all six countries, including 87 percent in the U.S., say that securing the jobs of their employees should be a higher priority for companies than increasing their profits by cutting their employees.

So What?

As the pollsters themselves point out, the reputation of business and business leaders is “not just a beauty contest.” Low popularity can affect not only the public but also how elected leaders and governments handle business issues, how the media report business stories and how other interest groups interact with them.

Perhaps the most obvious effect for business leaders of being very unpopular is that it increases the likelihood of governments adopting what corporations might see as anti-business regulatory and taxation policies.

The leaders of the property/casualty insurance industry are not immune to the effects of low popularity of business leaders in general. Most consumers, lawmakers and media do not distinguish among the various segments (life, health, property, casualty) of the insurance industry. All lines are lumped together and, even worse, too often referred to as part of the financial services industry. Everyone is put in the same room with the Wall Street wonders, Ponzi schemers and bonus babies.

Also, like it or not, AIG is the fa ce of the insurance industry these days. When the public thinks insurance today, it thinks AIG — and that’s not good. The public doesn’t think about Travelers, Farmers, Progressive, the sensibly-sized Super Regionals or the close-tohome domestic carriers as separate from the villains. All insurers are the same.

The common wisdom among political talking heads and their pollsters is that the p ublic does not rate Congress very highly but at the same time most voters think their own representatives and senators are just great.

Rescuing the reputation of the insurance industry won’t be easy. American Agency System insurance companies are particularly fortunate they have independent agents and brokers representing them. The late House Speaker “Tip” O‘Neill coined the oft-cited phrase, “All politics is local.” Americans may not like insurance companies these days but they still love their local insurance agent.

Kenneth J. St. Onge

East Editor kstonge@insurancejournal.com 8 | INSURANCE JOURNAL-EAST REGION May 18, 2009

Editor-in-Chief Andrea Ortega-Wells | awells@insurancejournal V.P. Content/ and Interim Midwest/Southeast Editor Andrew Simpson | asimpson@insurancejournal.com East Editor Kenneth J. St. Onge | kstonge@insurancejournal.com South Central Editor Stephanie K. Jones | sjones@insurancejournal.com West Editor Patricia-Anne Tom | ptom@insurancejournal.com MyNewMarkets Associate Editor Chris Boggs | cboggs@insurancejournal.com International Editor Charles E. Boyle | cboyle@insurancejournal.com Columnists Alan Shulman Contributing Writers Kenneth Auerbach, John R. Graham

SALES V.P., Sales & Marketing Julie Tinney (800) 897-9965 x1188 jtinney@insurancejournal.com West Dena Kaplan (800) 897-9965 x115 dkaplan@insurancejournal.com South Central Eric Jeter (281) 655-02318 ejeter@insurancejournal.com

Midwest Lauren Knapp (800) 897-9965 x161 lknapp@insurancejournal.com Southeast Howard Simkin (800) 897-9965 x162 hsimkin@insurancejournal.com East Dave Molchan (800) 897-9965 x1185 dmolchan@insurancejournal.com

MARKETING

Marketing Administrator Gayle Wells | gwells@insurancejournal.com Advertising Coordinator Erin Burns | eburns@insurancejournal.com (619) 5818-1100 x120 New Markets Sales Manager Kristine Honey | khoney@insurancejournal.com Classified and Ancillary Sales Manager Nicola Coghill | ncoghill@insurancejournal.com (619) 5818-1100 x125 New Media Producer Chad Reese | creese@insurancejournal.com

DESIGN/WEB

Vice President/Design Guy Boccia | gboccia@insurancejournal.com Vice President/Technology Joshua Carlson | jcarlson@insurancejournal.com Graphic Designer Jamie Bethell | jbethell@insurancejournal.com Web Developer Jeff Cardrant | jcardrant@insurancejournal.com Web Developer Chris Thompson | cthompson@insurancejournal.com

A D M I N I ST R AT I O N

Accounting Manager Megan Sinclair | msinclair@insurancejournal.com Admin./ Marketing Asst.

Kristina Delavega | kdelavega@insurancejournal.com Cover designed by: Guy Boccia

Insurance Journal, The National Property/Casualty Magazine (ISSN: 0020187118) is published semi-monthly by Wells Publishing, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-17187. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 per special issue cop y, $195 per y ear in the U .S., $295 per year all other co untries. DISCLAIMER: While the information in this p ublication is deriv ed from so urces believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Cop yright 2009 W ells Publishing, Inc. All Rights R eserved. Content ma y not be photocopied, reproduced or redistrib uted without written permission. Insurance J ournal is a p ublication of Wells Publishing, Inc. POSTMASTER: Send change of address form to Insurance Journal, Circulation Department, PO Box 90189, Maple Shade, NJ 08052 FOR QUESTIONS REGARDING SUBSCRIPTIONS: please call 856-380-1817 6 or email subscribe@insurancejournal.com. You may subscribe or change your address online at insurancejournal.com/subscribe.

ARTICLE REPRINTS: For reprints of articles in this issue, contact Rhonda Brown at 1-866-879-911818 ext. 1918 or rbrown@fostereprints.com. Visit insurancejournal.com/reprints for more information.

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East Coverage Snapshot

It Figures $2 Million Settlement paid by Wal-Mart in connection with the trampling death last y ear of a temporary worker at its Valley Stream, New York store. The man was crushed by stampeding shoppers on ‘Black Friday.’ As part of the deal, Wal-Mart agreed to improve crowd management at its New York stores, increase safety efforts and set up a victims’ compensation and remuneration fund. The retailer admitted no guilt.

$11,000 m

Amount of workers’ compensation benefits illegally collected by a Maine man who claimed he was too incapacitated to work.

Investigators said he had been working under the table for hotels in Saco while collecting the benefits. He was sentenced to eight months in jail. Attorney General Janet Mills is vowing to step up investigations of workers’ compensation fraud.

$500,000 Amount allegedly stolen by a ring of four

identity thieves in Rhode Island. Federal prosecutors say the four obtained credit cards with the stolen personal information of more than 50 victims. The thie ves used the cards at casinos, car repair shops and retail stores. To obtain the cards, they first created fake licenses and then requested duplicate cards with the stolen IDs, claiming the original cards were lost.

$400,000 Amount of fire damage to a Maryland house which was destroyed when an overheated lawn tractor sparked a fire. Fire officials say the tractor was parked in the garage under the house after doing some yard work. Combustible materials near the tractor ignited, touching off the blaze.

$10 Annual fee for auto policyholders in New York. The so-called “Motor Vehicle Law Enforcement Fee” goes into effect June 1 for every insured vehicle registered in the Empire State.

Declarations The Price of Feedom

“What else is new; it’s New Jersey. Raise fees, that’s all we do.’’

— Sean Tomlin, of Millville, New Jersey, commenting on dozens of proposed fee hikes for motor vehicle operators in the Garden State. The Motor Vehicle Commission is proposing some 40 fee hikes in all. They vote on the measure May 26.

NYC Collapse thals py, R: to her ictoof 89,

“(T)he bricks started trickling off the top corner . I was thinking it wasraining or something. Then within 10 seconds it just all came do wn like a wave or an avalanche.’’

— Lewis Largent, who lives directly across the street from a five-story building in Lower Manhattan that collapsed earlier this month. Inspectors from the Buildings Department were at the scene, about seven blocks north of the World Trade Center site. The collapse sheared off the front half of the building, exposed interior floors and covered nearby vehicles in rubble.

ur818 on.

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East Coverage News & Markets

Marsh & McLennan Settles Connecticut Price-Fixing Claims

By Dave Collins

M

arsh & McLennan Cos. Inc. has agreed to pay $2.4 million to the state of Connecticut to settle claims of bid-rigging, pricefixing and receiving kickbacks.

State Attorney General Richard Blumenthal says the deal settles his 2005 lawsuit against the firm.

Marsh admits no wrongdoing in the agreement.

Blumenthal accused Marsh of coercing insurers into paying millions of dollars in kickbacks to the firm in exchange for Marsh steering customers to the insurers. He

alleged the cost of the kickbacks was secretly folded into consumers’ insurance premiums.

“Marsh masterminded a pay-toplay conspiracy of kickbacks and bid rigging that inflated insurance costs for consumers and injured competition,’’ Blumenthal said.

The amount that consumers allegedly overpaid in insurance premiums wasn’t clear. A spokesman for Blumenthal said he was trying to determine that figure.

Marsh, in a statement, said it “vigorously contested the allegations against it ... and the state has

agreed to withdraw the lawsuit as part of the settlement.’’

Blumenthal sued Marsh in January 2005 as part of his office’s investigation of insurance industry abuses. He said the probe has yielded 12 settlements with insurers and brokers, nearly $540 million in restitution to consumers and taypayers across the country and $35 million in civil penalties paid to the state. He initially accused Marsh and insurance provider ACE Financial Solutions Inc. of setting up a scheme in which ACE secretly paid a $50,000 commission to Marsh for steering

an $80 million state workers’ compensation contract to ACE. Blumenthal also sued ACE over the deal; ACE settled for $40,000.

The attorney general said he later expanded his lawsuit against Marsh when his investigation turned up evidence of the illegal contract-steering and kickbacks.

Blumenthal said several Connecticut companies were harmed by Marsh’s scheme.

In January 2005, Marsh & McLennan agreed to pay $850 million in restitution to end an investigation by New York state officials into bid-rigging and price-fixing. IJ

Pennsylvania Supreme Court Upholds Denial of Coverage for Late Notice

Court: Insurer Must Indemnif y Contractor in Mass. ‘Sick Building ’ Case

T

By Kenneth J. St. Onge

he Property Casualty Insurers Association of America (PCI) is praising a recent decision by the Pennsylvania Supreme Court that it says upholds the plain meaning of insurance contracts.

The Supreme Court’s, in Ace American Insurance Co. v.

Underwriters at Lloyds and Cos., affirmed that an insurer need not demonstrate it would be harmed when denying coverage under a “claims made” policy based upon late notice.

ACE had purchased a claimsmade policy with Lloyds that required ACE report a claim no later than 90 days after the expiration date. ACE sued when Lloyd’s refused to pay a $37.2 million claim lodged by its insured, Refuse Fuels. The denial was based upon ACE’s failure to time-

ly comply with the policy’s specific notice of claim requirement for claims that were reasonably anticipated to exceed $4 million.

In almost every state, when insurers deny a claim based on late notice, the law requires them to demonstrate they were prejudiced in some way by the insured’s failure to timely file that claim. Only two courts have ruled that prejudice is required in a claims made situation. The Pennsylvania court rejected ACE’s argument, a decision that PCI praises.

“Such an extension of coverage would be contrary to the fundamental purpose of a claimsmade-and-reported policy and provided coverage to an insured for which it neither bargained nor paid,” said Ann Spragens, senior vice president, secretary and general counsel for PCI. IJ

10 | INSURANCE JOURNAL-EAST REGION May 18, 2009

A

federal court ruled that an insurer has a duty to defend and indemnify a flooring company which installed carpets and tiles in a Massachusetts office that were so fume-ridden, they made the building unusable.

In a closely watched legal decision, the First Circuit Court of Appeals found that the CGL policy issued by Essex Insurance Corp. to BloomSouth Flooring Corp. covers property damage that is intangible, like odor.

The case centered on a construction project at the headquarters of Boston Financial Data Services (BFDS).

BloomSouth, a subcontractor on the project, had hired two separate subcontractors to supply and then install carpeting in BFDS’ building. After the work was completed, employees complained their offices smelled like a “locker room,” and some claimed of health problems from the fumes — a problem known

as “Sick Building Syndrome.”

BFDS paid $1.4 million to repair the problem, and then sued BloomSouth, arguing thatdefective carpeting made the space unusable. BloomSouth sought coverage under its CGL policy and Essex, citing the lack of physical damage, declined to pay.

The Court agreed that the nature of the damage rendered the office unusable and that business risk exclusions written into the policy did not apply to the situation. The case, some legal scholars say, could have future implications for building defect claims in the Bay State. IJ

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East Coverage People

Soto

Iannoti-Montz

Heft

Plafker

Morrissey

W. R. Berkley Corp. appointed Richard M. Baio to the newly created office of vice president - treasurer . He will manage the investment accounting and tax departments, global currency, banking relationships and all related treasury functions. Baio, 40, has o ver 19 years of experience in the insurance and financial services ind ustry, having served most recently as a director in Merrill Lynch & Co.’s financial institutions investment banking group, where he specialized in insurance company advisory, financing, merger and acquisition transactions.

The Independent Insurance Agents & Brokers (the Big “I”) has awarded Alex Soto with the Woodworth Memorial Award, the highest honor the association bestows on one of its members. The Woodworth Memorial Award recognizes the contributions of an independent agent or broker to the national association, its members and to the insurance industry. Soto is president and CEO of InSource, Inc. in Miami and served as chairman of the Big “I” from 2006 to 2007. Soto also served on the national association’s executive committee and was chairman of IIABA’s Communications Committee, Natural Disaster Committee and Branding Task Force, which was responsible for developing the Trusted Choice consumer brand.

Jack M. Rader, executive vice president and COO of Farmers Alliance Cos. in McPherson, Kan., was elected chairman of the American Association of Insurance Services (AAIS) at the association’s annual meeting. Rader succeeds James W. Sullivan, president and CEO of Cooperative Insurance Cos., Middlebury, Vt., who remains on the AAIS board of directors. Christopher P. Taft, president and CEO of Preferred Mutual Insurance Co., New Berlin, N.Y., was elected vice chairman to succeed Rader. In addition, R. Douglas Haines, president and CEO of Buckeye Insurance Group, Piqua, Ohio, was elected a member of the AAIS board. Haines has serv ed as a board member in the past.

The other AAIS board members are: Edward T, Berg, president and CEO of Pharmacists Mutual Insurance Co., Algona, Iowa; Roy Bubeck, president and CEO of Badger Mutual Insurance Co., Milwaukee, Wis.; Stuart C. Henderson, president and CEO of Western National Insurance Group, Edina, Minn.; Judy S. Jackson, president and CEO of NLC Insurance Cos., Norwich, Conn.; Jeffrey B. Kusch, president and CEO of Austin Mutual Insurance Co., Maple Grove, Minn.; Paul Baiocchi, president and CEO of AAIS. Zurich Financial Services Group appointed Francis Bouchard as head of the Climate Office. Bouchard will work to institutionalize the company’s climate-related expertise across the organization and accelerate the development of new products. Bouchard, who will maintain his current role as Zurich’s global head of Corporate

12 | INSURANCE JOURNAL-EAST REGION May 18, 2009

Communications, joined Zurich in 1998 as vice president of Federal Affairs in the United States.

Michael J. Morrissey has been appointed president and chief executive officer of the New York-based International Insurance Society Inc. (IIS). Morrissey previously served as chairman and chief executive officer of Firemark Investments. As a founder of Firemark, Morrissey also served as chief investment officer and portfolio manager of the Firemark Tiger Fund.

New Haven, Connecticut-based agency Abbate Insurance Associates has named Lisa Iannotti-Montz as a personal lines account executive. The 25-year industry veteran will be responsible for new business development and working with the agency’s current clients.

Crump Insurance Services Inc., based in Roseland, N.J., named Christopher Murphy as chief financial officer. In this position, Murphy is responsible for all financial activities of Crump Insurance Services, including implementing and maintaining financial systems, providing financial advice and support, and conducting management reporting. Previously, Murphy served as an independent financial advisor and chief financial officer for Marsh Inc. The New York State Insurance Fund has named James J. Wrynn as its new executive director. Wrynn, whose appointment became effective April 22, is a partner in the law firm of MacKay, Wrynn & Brady, which specializes in the areas of civil litig ation and appellate practice with an emphasis on insurance law. He has an extensive legal background in insurance, counseling agents, brokers, risk retention groups and insurance companies.

Alan Plafker has been appointed to the board of directors of New York’s Independent Livery Driver Benefit Fund. Plafker is a long-time insurance agents who is also secretary of the Professional Insurance Agents of New York. As a board member, he will be manage the fund, which provides independent contractor livery drivers with workers’ compensation benefits Bordentown, New Jersey-based New Day Underwriting has promoted John Heft to the newly created position of director - Real Estate Practice. Heft will lead the group’s focus on providing insurance and risk management solutions for all types of Commercial and Habitational Real Estate; M & A and priv ate equity transactions; and manufacturing classes via Pollution Legal Liability insurance coverage and combined form General Liability coverage. Heft joined New Day three years ago as vice president. Prior to then, he serv ed as a vice president and client adviser in the Environmental Practice of Marsh He has also worked for XL Insurance. IJ www.insurancejournal.com

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Idea Exchange Power of Outsiders

Office Oddballs Make Everyone Better

By Kenneth J. St. Onge

I

nsurance agency managers could learn a There are a couple of key conclusions that when the newcomer belonged to a rival sororlot from a beet-farming, volunteer sheriff Liljenquist said can be drawn from the study. ity or fraternity, the opposite was true — and paper salesman like Dwight Schrute.

One is the inherent power of outsiders. In these groups felt they worked together less the experiment, newcomers didn’t necessarily effectively, yet they significantly outperformed Schrute, the character played by ask tougher questions, possess novel informasocially homogenous groups.

Rainn Wilson on NBC’s “The Office,” is an tion or doggedly maintain a conflicting point “From a self-reporting perspective, what oddball whose eccentricities and awkward of view. Just being there was enough to people perceive to be beneficial turns out to interactions leave his coworkers bemused and change the dynamic be dead wrong,” Liljenquist said. “Teams that befuddled. He’s likely among old-timers who felt they worked least effectively together the kind of coworker shared a common identiwere ironically the top performers.” with whom nobody ty. When a member of the would want to share a group discovered he Find Your Schrute cubicle. agreed with the outsider, Finding an outsider need not require But if they want to he felt alienated from his hiring managers to head out to beet farms. succeed, they should. fellow old-timers — and There are common “social distinctions” in That’s according to he was motivated to today’s workplaces that cause enough tension new research by a explain his point of view to fit the mold for creating better-performing group of university on its merits so that his groups. To help employees in those situations professors who say Katie Liljenquist, assistant professor of cope, managers would be wise to explain that that, in business, groups organizational leadership, BYU’s Marriott peers wouldn’t lump him in with the newcomer. such conflict can generate better results. that include a Dwight School of Management.

The second lesson has to “Without that information people just Schrute or two tend to do with the perception of effectiveness. assume, ‘This is really uncomfortable. My make better decisions. The study looked at Subjects in the experiment were members of team obviously must not be working effectivethe impact of folks known as “socially distinct fraternities and sororities. In general, when ly,’” Liljenquist said. “If employees know that newcomers” — psychology-speak for someone the newcomer was from the same sorority or from the outset, they can better deal with who is different enough to bump other team fraternity as other team members, the gro up inevitable conflicts and recognize the potenmembers out of their comfort zones — on trasaid it worked well together, but was less like- tial benefits … it can translate to real perditional group problem-solving experiments. ly to correctly solve the problem. In contrast, formance gains.” IJ They added a newcomer to each group about five minutes into their deliberations, and when the newcomer was a social outsider, teams were more likely to solve the problem successfully.

“One of the most-cited benefits of diversity is the infusion of new ideas and perspectives,” Specializing in said Katie Liljenquist, assistant professor of Restaurants organizational leadership at BYU’s Marriott Bars School of Management and one of the study’s Program Business co-authors. “While that very often is true, we found the mere presence of a newcomer who is socially distinct can really shake-up the group dynamic. That leads to discomfort, but Agency Intermediaries, Inc. also to a better process that ultimately yields P.O. Box 451, 1575 Boston Post Road Guilford, CT 06437 superior outcomes.”

P: 800-922-3347 F: 800-522-3331 The key factor is simply whether newcominfo@agencyint.com ers are distinct in some way from the other group members. “Socially ‘distinct’ doesn’t necA.I.I. Insurance Brokerage of MA, Inc. essarily mean socially ‘inept,’” Liljenquist said.

P.O. Box 1139, 183 Davis Street Douglas, MA 01516 “Dwight’s upbringing and past work history P: 800-262-7475 F: 800-545-8331 — in addition to his bobblehead doll collection — all contribute to the measure of diversity he brings to ‘The Office’ melting pot.”

Excess, Surplus & Specialty Lines

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East Coverage Business Moves The Hartford Hartford Financial Services Group Inc. is reportedly trying to sell its property/casualty insurance business, as it reels from massive losses, according to Reuters. The Hartford has retained Goldman Sachs to begin vetting potential buyers, which include Allianz, MetLife, Munich Re and Travelers. It’s unclear whether any of these companies has been approached, however.

Hartford’s P/C business is worth about $8 billion on paper, but getting that price could be difficult, because capital and loan markets have been difficult to tap, reducing the capacity of bidders to pay.

An insurer such as Travelers, with a market capitalization of about $23 billion, could have trouble raising enough debt and equity to pay for a deal, a source said.

Allianz made a $2.5 billion investment in Hartford last October, giving it a stake, and the ability to raise its ownership in future. And Allianz could also be better sit-

14 | INSURANCE JOURNAL-EAST REGION May 18, 2009

uated to pay for the business, a source said.

However, Sabia Schwarzer, a spokeswoman for Allianz of America, said the “investment in the Hartford is purely financial, not strategic.

She declined to comment further. Goldman spokeswoman Andrea Rachman declined to comment, as did Travelers and MetLife.

Hartford could not immediately be reached and Munich Re spokeswoman Johanna Weber also declined to comment.

Starr Marine/Starr Indemnity Starr Marine Agency, an indirectly wholly owned subsidiary of C. V. Starr & Co., and Starr Indemnity & Liability Co., an indirectly wholly owned subsidiary of Starr International Co., a private investment holding company, have announced an agreement, allowing Starr Marine to offer $100 million of commercial underwriting capacity to its clients effective July 1, 2009.

Bollinger, Gail Steinberg & Co. Inc. New Jersey-based insurance brokerage Bollinger Inc. has acquired Gail Steinberg & Co. Inc. of New York. In connection with the merger, Gail Steinberg, president and chief executive officer of her namesake firm, will join Bollinger as a senior vice president. She founded the company in 1990 to provide employee benefits products and services to small and mid-sized companies in the greater New York area. The firm will relocate to Bollinger’s office in lower Manhattan.

Maran, NFIP Maran Corporate Risk Associates of Southampton, New York has been named Agency of the Year by the National Flood Insurance Program. The designation is given each year and recognizes agencies that demonstrate a dedication to promoting flood risk awareness and flood insurance.

Maran has focused on educating community members and clients on the real threats of flood damage and the costs of not p urchasing flood insurance through a number of marketing and advertising initiatives, such as radio ads, internet advertising and email blasts. IJ

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Idea Exchange Influenza at Work

Pandemics in the Workplace How a Flu Pandemic Impacts Workers’ Comp

By Andrea Wells

I

nfluenza is nothing new. Seasonal flu epidemics — disease outbreaks with more cases than normal— occur annually killing between 250,000 to 500,000 people worldwide. While most deaths associated with influenza in industrialized nations occur among people age 65 or older, an epidemic can cause serious public health and economic problems, including high levels of worker absenteeism and productivity losses.

When influenza viruses reach pandemic proportions — or a worldwide epidemic of the disease — the results can be de vastating.

So as H1N1 virus, or swine flu, continues to spread across the globe, the world has begun to take notice. For some, H1N1 also stands as a stark reminder of a much deadlier flu pandemic just a few years ago, H5N1, or avian flu.

Insurance Implications A pandemic’s effect on assets of any organization whose business involves the gathering of people could be severe. Most businesses would find no coverage for losses resulting from a pandemic. To combat the potential

impact, it’s important for businesses to have a crisis plan in place, says Dr. Steven Weisbart, the Insurance Information Institute’s chief economist and resident pandemic expert.

Employers need to adopt special policies for emergency times like this so their business is impacted less, Weisbart advises.

“There’s very little insurance for the business implications of supplier disruptions other than the usual perils,” he said. “This www.insurancejournal.com

Insurance Professional’s Practical Guide to (swine flu) is not on that list so therefore Workers’ Compensation: From History would not be an insured event.” Not only supThrough Audit.” pliers but also customers are at risk. In a pan“A worker contracting asbestosis, that’s demic, “you would potentially see people staypeculiar to the job. Coal miners, contracting ing home from movies or malls. There is no black lung disease, it’s a hazard of the work. coverage for business interruption that would But if you’re a grocery store worker and you pay off in those instances either,” he noted. get sick, that’s not peculiar to the job. That’s Weisbart said that unlike the avian flu, peculiar to being a human,” where mortality rates have Boggs said. Unless the disease been identified as very high, ‘You need to arises out of the job, not the swine flu so far appears to have a plan. because you were at your job, be less lethal. But he cautions, workers’ compensation would it’s still very early. The deadly It’s all about not come into play, he added.

1918 flu pandemic had a death protecting the While workers’ compensarate lower than 2 percent, he tion rules vary by state, comsaid, and that flu killed some worker.’ pensable claims are very fact 40 to 50 million people worldspecific, says Ken Brown of wide. theNational Council on Compensation Paul Braun, Aon’s director of casualty claims in the United States says that while businesses Insurance Inc. “Each state has specific rules in regards to may have prepared plans a few years ago in what’s covered,” Brown said. In some cases, response to the avian flu pandemic, when the workers’ compensation coverage for contractthreat of avian flu subsided, so did some risk ing swine flu might not be an issue, perhaps mitigation efforts. in health care work. “But for most folks, it’s “Like everything else, when the pandemic going to be tough to prove where the exposure was considered to be not as much of an issue to the disease took place. It gets back to everyone backed away from it and now we whether the exposure was in the course and have once again a similar kind of situation,” scope of the employment or not.”

Braun said. “The same issues apply,” he said.

In Texas, for example, for a claim to be “You need to have a plan. It’s all about protectcompensable the exposure to the disease has ing the worker. You need to take the approprito be something that occurred within the ate actions as an employer on developing a course and scope of the person’s employment, plan on how you are going to respond directly tied back to what they do. “For a depending on the type of industry you are in.” health care worker that distance becomes a lot shorter, but for a construction worker Workers’ Compensation where was the exposure? If the health care Workers’ compensation might be somewhat worker works in a clinic and is dealing with affected in the property/casualty market people that have that disease, you might be should a pandemic take hold, but only for able to prove that link.” those industries where the flu may have been In the end, workers’ comp coverage ties contracted during the course and scope of the back to medical evidence, says Aon’s Braun. job, experts say.

“Medical evidence and the laws in states — in To be considered an occupational disease every case there has to be the fa cts of the and therefore compensable under a workers’ claim and the medical evidence that supports comp policy, the disease must arise out of or the issue of compensation,” he added. “You are be caused by conditions peculiar to the work, applying proper investigation to make sure says Chris Boggs, associate editor of this is truly an occupational disease.” IJ MyNewMarkets.com and author of “The May 18, 2009 INSURANCE JOURNAL-NATIONAL REGION | N1

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Idea Exchange The European View

Capital, Capital, or Where Did All the Mone y Go?

By Charles E. Boyle

A

t least the global depression has focused people’s minds on some important issues. The Group of 20 (G20) meeting in London acknowledged the need for more capital to shore-up the world’s financial system — essentially the U.S./UK view — as well as the need for stronger regulation of the financial sector, to try and reign in the excesses that caused the problem — the European view.

Across the Irish Sea in Dublin the European Insurance Forum (EIF), which concluded its proceedings the day before the G20, got underway, focused on the same issues, albeit

from an insurance industry perspective.

This article focuses on what the world’s, and the insurance industry’s, leaders consider the most pressing problem — shoring-up the global financial sector.

How the Credit Crisis Affects Insurance Somewhat ironically, and with some notable exceptions, the industry has by and large escaped the worst consequences of the financial meltdown. American International Group, the monoline mortgage insurers, and many life and pension groups have suffered severe losses. But the property/casualty industry — in the United States, Europe, Asia and elsewhere — has so far avoided the most dire consequences of the meltdown.

At the EIF, James Vickers, chairman of Willis Re International, pointed out that “all the clever people” who saw the insurance industry as “not very exciting,” are now wondering how it managed to survive the current

needed to change for years. However, the curcrisis, while they are floundering. He said that rent capital crisis makes the message a lot the industry “had continued to “focus on what more urgent. it’s good at, while the others went ‘off piste.’”

Charman puts the blame for inaction on He didn’t need to mention that strong regulathe industry itself. In his opinion, the problem tion and reserve requirements played a major isn’t with the reinsurers, but is due to primary role in preventing the industry from following insurers “commoditizing pricing.” As a result, the bankers’ excesses. That’s understood. premiums are too low, and “customers refuse The more immediate concern is how the to pay, even when the price is right.” industry can continue to avoid being sucked As a consequence, if insurance companies into the financial maelstrom, which over time cannot offer the prospect of decent investcould threaten its continued access to capital. ment returns for potential investors, how are “We’re not capitalized enough,” was the way they going to attract capital? If the primary Michael O’Halleran, executive chairman of insurers don’t “adequately price products, it Aon Benfield, put it. In other words, if the discourages investors, as they can’t make any industry needs more capital, where will it go money,” Charman said. That’s the heart of the to find it? problem, but there may be some solutions.

In normal circumstances, the industry would be in relatively good shape. The reinInsurers have a ‘Window of Opportunity’ surance industry was able to handle $52.5 bilThe insurance industry doesn’t operate in a lion in property claims (according to Swiss vacuum. Companies and brokers have a recipRe) in 2008, the third worst year for natural rocal relationship with the economies in catastrophes in history. However, these are which they do business. If enterprises and not normal times. What would happen if 2009 individuals spend less, less coverage is written or 2010 were to produce similar figures? The and income drops. Therefore anything intercapital markets are in a coma. If a costl y disasnational governments can do to ameliorate the ter results in further losses — a major hurricurrent crisis ultimately helps the industry. cane for instance — the industry could find At the G20, world leaders pledged $1.1 trilthat it very difficult to replace the capital it lion to the International Monetary Fund, the needs to continue to function.

World Bank and to support trade in order to “This is the first time that the [insurance] help developing economies. True, much of that market has been affected by the asset side of money had already been allocated and a signifthe balance sheet,” said AXIS Capital CEO and icant portion may never materialize.

President John Charman. As a result, he Nevertheless, it should help developing counbelieves the industry, more than ever before, tries, and to some extent the will have to “get back to basics.” more developed ones, to avoid Not only can it no longer rely on ‘The industry a total collapse. Insurers and investments to make up for unbrokers doing business in derwriting losses, but it may not needs better those countries should benefit. even be able to rely on the capimanagement Spanish Prime Minister tal markets to supply capital.

José Luis Zapatero said — as Charman said the industry and governreported by Reuters and perneeds to do more to modernize ment.’ haps somewhat exuberantly “from a number of different — that the G20’s decision points.” It will have to “get back “contributes to confidence ... and will fa cilito basics, because its investments are negative; tate recovery. We have set in motion the greatto set higher risk [evaluation] standards, more est concerted plan of fiscal expansion in histodiscipline and higher underwriting stanry. It is unprecedented. It reaches $5 trillion ... dards.” His prescriptions aren’t new. Many This amount will contribute in a decisive way industry leaders, particularly at Lloyd’s, have been telling their colleagues that the industry continued on page N11

N2 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

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International Coverage News & Markets Fight for IPC Re Intensifies; Pirates Continue Attacks; Solvency II Gets EU OK

By Charles E. Boyle A good old-fashioned fight has developed between Bermuda-based Validus Holdings and the Max Capital Group over the latter’s planned amalgamation with IPC Re. At the end of March, Max announced that it had made a deal with IPC Re’s board of directors to take over the company.

Validus, however, saw things a bit differently. It launched an opposing plan, and when IPC and Max told the company to go away, it filed a lawsuit in the Supreme Court of Bermuda against IPC Holdings, IPC Ltd. and Max Capital, specifically challenging the “$50 million termination fee and ‘no-talk’ provision contained in the Agreement and Plan of Amalgamation between IPC and Max, dated as of March 1, 2009, as amended on March 5, 2009.”

Validus said it is “seeking among other things an injunction to restrain payment of the termination fee and to restrain operation of the “no-talk” provision on the bases that (1) because of its excessive size, the termination fee amounts to an unlawful penalty under Bermuda law and is accordingly unenforceable, and (2) entry into the Max Amalgamation Agreement, in circumstances where the agreement contained the termination fee and “no-talk” provision, constituted a breach of the directors’ fiduciary duties.”

In response, Max fired back that it would “vigorously defend the enforceability of the amalgamation agreement between IPC Holdings Ltd. and Max against the meritless lawsuit filed on April 28, 2009, by Validus Holdings.” Max Cap’s Chairman and CEO W. Marston Becker attacked Validus “hostile takeover attempts” and, in relation to the lawsuit, said: “We view this action as nothing more than another attempt by

Validus to distract investors.”

On May 1, Validus fired back with a “three-part plan,” which consists of “(1) soliciting IPC shareholders to vote “against” the proposed Max Capital Group Ltd. (“Max”) amalgamation, (2) commencing an Exchange Offer for all IPC common shares and (3) petitioning the Supreme Co urt of Bermuda to approve a Scheme of Arrangement under Bermuda law.”

Both sides have characterized their respective offers as superior to the other. As 94 percent of IPC Re’s shares are held by institutional investors and mutual funds, they presumably have competent people who can decide who is offering the better deal. Proxy materials have been sent, and the shareholders meeting, scheduled for June 12 should determine who wins.

For more detailed information go to: www.maxcapgroup.com, www.validusre. bm or www.ipcre.bm

ashore. They move their money ashore. You can’t have a discussion about eradicating piracy without having a discussion about the shore dimension.”

Admiral Roughead also noted that a combined sea and shore approach had helped curb pirate attacks in the Strait of Mala cca between Malaysia and Indonesia. Piracy in the Strait, one of the world’s busiest shipping lanes, became so serious that in 2005 the Joint War Committee of the Lloyd’s Market Association added the area to its list of war risk zones, sending insurance premiums sharply higher. Concerted efforts

by Malaysia, Indonesia and Singapore helped slash the number of atta cks in that region.

Admiral Michael Mullen, chairman of the Joint Chiefs of Staff, told reporters after a speech at the Navy League conference that he did not support putting arms on commercial ships and that it was up to merchant ships to pay for their own protection.

A sampling of Lloyd’s marine experts more or less concluded that the pirate threat could be conclusively dealt with, only if Somalia eventually gets some kind of stable government, something that doesn’t look very likely.

The French Navy did find a novel way to thwart the pirates. They tricked three boatloads of would-be pirates into thinking that they were attacking a merchant ship, instead of a well-armed frigate — taking 11 of the marauders into custody in the process.

Somali pirates continued to attack merchant shipping, despite increasing calls for a solution to the problem. Richard Phillips, the U.S. ship captain held hostage

by Somali pirates, told Congress that armThe Solvency II insurance regulaing some members of commercial ship tions continued their progress toward crews could help beat back pirate attacks. adoption, as the European But shipping executive approved the latest John Clancey opposed crews ‘This is key for Union version. Lloyd’s director and getting into an arms race modernizing general counsel Sean with pirates on the high McGovern stated: “We are seas. Clancey is chairman of insurance pleased that the Solvency II Maersk Inc., parent company regulation in Framework Directive has of Maersk Line Ltd., whose adopted by the EU. ship — Phillips’ Maersk Europe and we been This is key for modernizing Alabama — was attacked on are happy ...’ insurance regulation in April 8.

Europe and we are happy Chief of Naval Operations that we can continue with preparing for its Admiral Gary Roughead, as reported by implementation.” The rules are scheduled Reuters, said after a Navy League conferto be in place by 2012. IJ ence: “Pirates don’t live at sea. They live

N4 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

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Keeping a restaurant running smoothly is no simple task. Travelers IndustryEdgeSM covers the complexities unique to this demanding industry. Our risk control professionals understand your clients’ concerns, and can help identify and reduce exposures that could result in injuries or damage. Contact your local Travelers Commercial Accounts representative to see how our customized coverage and service can help your clients stand the heat that comes with running a kitchen. ©2008 The Travelers Companies, Inc. All rights reserved. The Travelers Indemnity Company and its property casualty affiliates. One Tower Square, Hartford, CT 06183

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Closer Look Restaurants/Bars/Liquor

Attacked in a Restaurant: The Insurance Implications of Assault and Batter y

By Chris Boggs

B

eing attacked by one or several restaurant employees is unexpected and somewhat disturbing. But it happened so quickly I could not react quickly enough to avoid being victimized.

The Setup My wife arranged a surprise birthday dinner party to celebrate my 40th year. As dinner wound down, several restaurant employees appeared with a sombrero to put on my head and sing me their version of “Happy Birthday.” I had been through all this before so I knew what to expect — at least I thought I did.

One employee put the hat on my head but the second unexpectedly hit me in the face with a whipped cream pie. I was attacked in broad daylight in front of several witnesses, none of whom sprang to my aid (mostly they just laughed at me).

As the initial shock dissipated and I wiped off all the whipped cream I could reach, I began to think about the insurance implications of what just happened (yes, even in a time of distress I think insurance).

Assault or Battery? Legal Definitions Related to the Attack Before I had my face fully whipped cream-free, I looked at the waitress and jokingly said, “You do realize that was assault and/or battery.” Although neither she nor the attackers responded, these terms have distinct legal meanings of which the restaurant’s management now needs to be aware: • Assault is not actual bodily contact, only the threat of bodily injury by force.

Such threat is intentional and unlawfully directed toward another person such that the other party has a reasonable fear that injury is likely to occur. The apparent ability to carry out such a threat must also exist. A person pointing a gun at someone and telling them, “I’m going to kill you,”

would amply qualify as assault (in this case it’s with a deadly weapon). Battery is actual physical touching and does not equate to assault.

• Battery, according to www.expertlaw. com, is actual physical contact with another individual against that person’s will.

Such contact does not have to result in physical injury to be considered battery.

Such contact is not limited to physical touching or beating but can also refer to the physical restraint of a person. Spitting on a person, although not likely to cause injury, can even qualify as battery. Battery can exist on its own without assault. An example would be someone just grabbing another person and beating them witho ut provocation or warning.

Based on the legal definition, I was a victim of battery. However, the amount of damages that I may be able to recover is minimal because I was not hurt (other than a little bit of my ego).

But what if the person has an allergy or was hit harder than expected resulting in a broken nose or gouged eye — would the restaurant’s general liability policy respond, and how?

N6 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

How the CGL Responds Questions regularly arise as to whether the commercial general liability (CGL) policy responds to claims of assault and battery. The unendorsed CGL contains no specific exclusion for such actions, but coverage may depend on who perpetrates the assault and/or battery.

The CGL promises to pay all sums the insured is legally obligated to pay as a result of bodily injury or property damage suffered by a third party. Legal obligation can arise out of contract or tort. A tort relates to the insured’s negligence in that if the insured is somehow negligent and a third party is injured as a result of that negligence, the CGL pays.

Relating this to assault and battery, if a customer is a victim of assault and/or battery and the insured is somehow held liable for the actions (did not keep the premises safe, allowed an argument to escalate, did not protect the customer, etc.), the CGL responds and pays the claim. If, however, the insured is found to not be liable for the injury, then the policy will not pay. continued on page N8 www.insurancejournal.com

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Closer Look Restaurants/Bars/Liquor Attacked, continued from page N6

But the attack on me was different. I was technically and factually a victim of battery, and the restaurant was undoubtedly liable — because its employees did it. The last fact seems to preclude coverage for the incident, leaving the restaurant on its own for any injuries that might have resulted; or does it?

Certainly the expected and intended

injury exclusion (2.a.) would act to exclude coverage for this incident. However, when each word is assigned its everyday meaning and the wording viewed in its entirety, it does not necessarily exclude coverage for the restaurant’s attack on me.

The exclusion reads: Expected Or Intended Injury: “Bodily injury”

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or “property damage” expected or intended from the standpoint of the insured. This exclusion does not apply to “bodily injury” resulting from the use of reasonable force to protect persons or property.

So yes, the action was intended, but any injury that might have occurred is not intended, or even expected.

Would the restaurant or anyone else reasonably expect someone to be injured by putting a pie in their fa ce? Further, do they intend to hurt anyone with a whipped cream pie? Not likely on either.

For the exclusion to apply, the injury has to be expected or intended. Neither seems to apply in this practical joke, so CGL protection is still intact and available to pay.

What About ‘Mental Anguish?’

Although there was no apparent intent to do physical harm, such attack could cause an intense psychological reaction in some people. It may bring back memories of some awful event or create uneasiness in the person’s belief in his or her ability to protect himself or herself.

I told my wife I was dreaming of being attacked by a can of whipped cream and was unable to close my eyes and sleep because of the fear. This lack of sleep may lead to sleep deprivation, reduced mental capacity and job performance, and ultimately the loss of my job. And my daughter, who saw the attack, is suffering from posttraumatic stress disorder even though she was not in the zone of dang er. continued on page N10 www.insurancejournal.com

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Closer Look Restaurants/Bars/Liquor Attacked, continued from page N8

anguish from the definition of bodily injury. Eight states include mental anguish, but only if it arises or manifests o ut of bodily injury.

Only 10 states appear to absolutely include mental anguish as bodily injury (without the arising out Costly to Defend Defending these claims Questions regularly of or manifesting out of requirement) and two and paying the loss if the arise as to whether could go either way jury finds in favor of the (they have suits on both plaintiff could be quite the commercial sides). expensive; and in many general liability Coverage B, “Personal states the unendorsed CGL and Advertising Injury,” extends no coverage for (CGL) policy also fails to provide any claims of injury from menresponds to claims protection to the tal anguish. insured. The definition Bodily injury is defined of assault and of personal injury does as bodily injury, sickness or battery. not extend to mental disease sustained by a peranguish either. son, including death resultInsurers that either: 1) do not subscribe ing from any of these at any time. Nowhere to ISO wording (in whole or in part); or 2) is coverage for mental anguish provided have proprietary endorsements may allow under the “Bodily Injury and Property bodily injury to be redefined to include Damage” coverage section (Coverage A). mental anguish. But many of these endorseThirty-two states exclude mental Now, while I’m joking about my dreams and my daughter’s stress (she was among those laughing), some people do suffer or claim to suffer such mental anguish injuries.

ments only extend to include mental anguish caused by bodily injury; not simply mental anguish as its own cause of injury.

Most likely any judgment or settlement arising out of charges of mental anguish may have to be paid by the insured.

If This Were Your Insured Had I been hurt by the attack, the liability policy would likely have responded to protect the restaurant.

However, if I was mentally traumatized by this action, my state’s common law would not have forced the insurer to include mental anguish as part of bodil y injury, thus there is likely no coverage for the restaurant’s actions in the unendorsed commercial general liability policy.

Beyond the insurance implications of the restaurant’s joke, such actions are simply inappropriate and unacceptable from a risk management perspective. IJ Boggs is associate editor of MyNewMarkets.com. Phone: 619-584-1100, ext. 137. E-mail: cboggs@mynewmarkets.com.

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Idea Exchange The European View Capital, continued from page N2

to facilitate a recovery of the world economy and to preserve millions of jobs.”

While that will help the insurance industry over the long term, it isn’t really a solution that will provide the capital it may need sooner.

Hubert Brandts, a partner in the Londonbased corporate financial advisory firm Hines & Associates, suggested insurers look closer to home. “How do you get them [investors] to invest?” he asked. “The biggest group of potential investors are the company’s shareholders,” as they are already investors. In that case, the industry may soon see more rights offerings.

Charman added that insurers “need to develop a greater sense of ‘communality’ with their investor base.” This would group together greater transparency, a cap on excessive executive compensation, the previously mentioned focus on improving earnings, and an adherence to sound regulatory principles. “The industry needs better management and government,” he said.

Implementing such initiatives would also highlight the fact that most insurance companies are not managed like banks or hedge funds. It would encourage a “flight to quality” that hopefully would make the insurance industry look like a good and a safe investment. “We have an opportunity to reset the rules of the game,” O’Halleran said. He explained that the biggest mistake Wall Street made was to look only to short-term considerations, thereby ignoring the long-term consequences. “We know risk, and what we’re seeing now is a classic reinsurance market turn,” he added. A change the industry must be prepared to deal with, because, as O’Halleran put it, “the role of the insurer is to surviv e.”

In Charman’s opinion that’s not enough “to just survive; companies must also evolve.” In addition to tighter underwriting standards, this also requires “greater intellectual capital, more diversification, more efficiency and a focus on better management control.” Costas Miranthis, chief executive of PartnerRe Global, added that the companies “who adapt better are the ones who will survive” and bigger companies may have an advantage in that respect.

Although assuring access to adequate capital is the most pressing problem, there aren’t any magic solutions. Better risk management in the form of higher quality information and spreading the risks along the lines of a subscription market like Lloyd’s may help.

Adequate reinsurance rates that reflect the real www.insurancejournal.com

nature of risks are another vital component.

These are things the P/C industry has been implementing. Now, however, the industry’s very survival may depend on getting them done right in order to attract capital.

O’Halleran warned, “if the reinsurers can’t cover the risks, the government will.” That could happen if the risks are really too large, or if there isn’t sufficient capital. It’s a solution that would fundamentally alter the insurance

industry, perhaps forever.

It’s not a solution that anybody in the industry would welcome, and until last October it might have been almost unthinkable. However, after AIG and the bank bailouts, it’s a possibility. The insurance industry may have escaped the worst of the financial crisis so far, but it will need to marshal every resource it has in order to continue to do so. IJ

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By Andrew Simpson

Inside the Beltway Why Health Care Reform Matters to P/C Agents P/C Agents Join Fight Against Competing Government Health Plan

P

roperty/casualty insurance agents have elevated health care reform to the top of their political agenda; the matter is now just a notch below the perennial battle against federal regulation of insurance on their Washington priority list.

P/C agents have addressed health insurance legislation in the past but the issue has taken on new urgency this year for several reasons.

First, after years of talk in Washington, the Obama Administration and a Congress run by Democrats appear on track to adopt major reforms. Second, many P/C agencies that write commercial accounts also sell group health insurance. The third, and the biggest concern,

is that the proposals under consideration include a possible government-sponsored health insurance plan that would compete with private health insurance plans — a competitor that agents fear could eat into their slice of the health insurance pie.

The issue of a government-sponsored plan has emerged as one of the major differences in the health care reform debate between Republicans, who oppose it, and Democrats, who generally support the idea. Conservative and liberal advocacy groups are raising funds and have already begun airing ads.

Last month, insurance agents joined the fray publicly. The Independent Insurance Agents

N12 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

& Brokers of America (Big “I”) and the Co uncil of Insurance Agents & Brokers (CIAB) — two property/casualty agent groups — joined health insurance agents from the National Association of Health Underwriters (NAHU) and the National Association of Insurance and Financial Advisors (NAIFA) in a letter urging congressional leaders to exclude health care reform budget reconciliation instructions that would require only 51 votes to pass a measure, rather than the usual 60 votes under normal Senate operating procedures.

The groups said they were worried that “the spirit of bipartisan cooperation will be lost if continued on page N14 www.insurancejournal.com

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Outside the Beltway Big ‘I’ CEO on Carrier Relations, AIG and Agent Gr assroots Rusbuldt Shares the View from Main Street

B

ob Rusbuldt, president and CEO of the Independent Insurance Agents & Brokers of America (Big “I”), sat down with Insurance Journal’s Andrew Simpson at the association’s recent legislative conference in Washington, D.C. The following excerpts are from the complete interview, which may be viewed at www.insurancejournal.tv.

Insurance Journal: Every year the Big ‘I’ conducts a market survey to gauge where independent agencies are in market share and other metrics. Were there any surprises in the most recent sur vey?

Rusbuldt: There were two pleasant surprises actually. The first one is that new, small independent agencies are being started at much greater numbers than we thought they were going to. You read all about the M&A activity in our side of the industry that agencies are

getting smaller, but there are less of them.

Interestingly, there’s a counter trend to that. A lot of people are leaving larger agencies, particularly bank-owned agencies, and starting their own agencies. There are people that were entrepreneurs and they miss that challenge of running their own business, rather than working for a larger corporate outfit.

So we’re seeing that trend, and I think it’ s refreshing. I also think it’s good for the marketplace. There’s more competition. And some of these younger owners or older owners that are now entrepreneurs again are hungry for business, and there’s a lot of competition that’s being created.

The second phenomenon we noticed is that M&A activity is not affecting the overall universe of the independent agency system.

Certain groups like Marsh Berry and others have predicted that there will be less and less independent agencies. But that number, over

the last couple of years, has remained static from an agency universe perspective.

So it’s a little counter to conventional wisdom, but the numbers are showing that new agencies are starting and that the M&A a ctivity is not affecting the overall number of independent agencies.

IJ: So to the extent that there is continued consolidation, there’s enough new blood or people reentering to make up for that?

Rusbuldt: That’s exactly right. The new startups are offsetting the M&A activity that’s taking place.

IJ: Agents are being hit by a double whammy of a recession and a continued soft market. What do they tell you across the country about how they’re doing in continued on page N15

Inside the Beltway Federal Regulation Threat Remains Priority Also

H

ealth care reform hasn’t completely overwhelmed federal regulation as a concern in Washington, at least for insurance agents.

They believe that given all of the current financial turmoil, some type of financial regulatory reform is likely this year.

“Congress is going to decide where we’re regulated, how we’re regulated, and who is going to regulate us. That’s a fundamental issue for any business, let alone independent insurance agencies. So we want to make sure, no matter what Congress does, that they do the right thing and that we help shape the future of our regulatory system,” said Bob Rusbuldt, president and CEO of the Independent Insurance Agents & Brokers of America (Big “I”), in a recent interview with Insurance Journal.

Life insurers and large property/casualty insurers have for years pushed for the option of being regulated at the federal level, rather than at the state level. Agents have long www.insurancejournal.com

opposed this federal option, arguing that it’ s a bad idea for independent agents, their carriers and their customers.

“We happen to believe that regulatory arbitrage is not good for consumers. We believe that dual regulation is bad for independent insurance companies and our consumers,” Rusbuldt said.

Rusbuldt said agents dread the situation where they would have to represent both federally regulated and state regulated carriers.

“One of your clients may have six different insurance policies. Half of them may be regulated at the federal level, half may be regulated at the state level. Agents will have to become experts in two regulatory systems, not one,” he said.

As far as agents are concerned, the imperfect devil they know — state regulation — is better than the devil they don’t.

“We want to make sure that we continue to have state regulation, but state regulation

that is improved.”

Whether the life and large P/C insurers lobbying for the federal option get their way remains to be seen. There is less talk a bout that in Washington than there is over whether there should be some sort of systemic risk regulator, council or both to oversee large banking, securities and insurance conglomerates like American International Group that now seem to fall between the cracks of the federal watchdogs.

The systemic approach could open the door for federal insurance regulation, however. Rep. Barney Frank, D-Mass., who chairs the powerful House Financial Services Committee and is generally in favor of state regulation of insurance, has indicated that his proposal to create a systemic risk regulator would likely cover large insurers. He has said that federal regulation ultimately may apply to life insurance that acts like an investment but is less likely for P/C insurance. IJ

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Special Report Inside & Outside the Beltway with the Big ‘I’ Health Care Reform, continued from page N12

sponsored health benefits system as we know regular order is put aside and the reconciliation process is utilized to fast tra ck health care it. Today, 160 million Americans receive health insurance through this system. It is effective. reform legislation.”

It is competitive. It works well for a majority But agents fear more than bipartisanship; they fear a loss of business. A procedural move of Americans,” Brewer said.

Rusbuldt’s goal is to make sure Congress

by Democrats, called reconciliation in Beltway doesn’t do anything to remove agents from the language, removes the fillibuster and means system. “If that is taken off the table, and indeonly 51 votes will be needed to pass health care legisaltion in the Senate. That “means that pendent agents are no longer the distribution pretty much health care reform is going to fol- force for health insurance, that will be a hug e hit for independent insurance agents,” he said. low what the Obama administration wants,” P/C agents are not said Bob Rusbuldt, president alone in that concern, of and CEO of the Big “I,” in an course. Health insurance interview with Insurance A Congressional brokers have also Journal. report concluded ramped up their lobby“I am not giving up hope ing against a governand nor should independent that achieving plan. agents or insurance compasubstantial savings ment The Association of nies, but we have a lot of Health Insurance work to do between now would probably (AHIA), the and September,” he said. require eliminating Advisors health insurance diviAgents fear that they sion of the National would be at a disadvantage the role of insurAssociation of Insurance competing with a public ance agents and and Financial Advisors plan in a market that is (NAIFA), says it is espeimportant to them and their brokers. cially concerned with customers. the public plan as a major step down the road toward a single-payer, government-run health More Agencies care system.

More and more P/C agencies are offering “Promoters of the government-run plan employee benefits including group health option always state or imply that a governinsurance. According to Rusbuldt, “almost all” ment-run plan that eliminates the role of the of the small and mid-sized group insurance market is written through independent agents. agent will lower administrative costs. But administrative costs are not reduced simply by “It’s one of the fastest growing parts of their switching administrators — a government book of business, employee benefits in generplan will not be less expensive unless services al,” Rusbuldt said. are reduced in some as yet ill-defined way,” Among some of the largest independent according to AHIA President Robelynn H. agencies, the percentage of their business that Abadie. is employee benefits related can be 25 percent “Experience of agents has shown that most or more, according to a survey of Insurance consumers benefit from access to professional Journal’s Top 100 agencies. assistance.”

For Missouri-based big broker Lockton, employee benefits is about 20 percent of revReducing Agent Involvement enues globally and 28 percent in the U.S. The argument that reducing agent and broLockton President Mike Brewer thinks Congress should let the 160 million Americans ker involvement could save money was addressed in an analysis released in December who now get health coverage through their by the Congressional Budget Office (CBO) that employers stay as they are.

“While we support broad health care reform looked at various health care reform options. that expands coverage and reduces cost, a large The CBO report concluded that achieving ‘public plan’ as envisioned by some will under- “substantial reductions” in administrative costs would “probably require the role of insurance mine and potentially destroy the employerN14 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

agents and brokers in marketing and selling policies to be sharply curtailed and the services they provide to be rendered unnecessary.”

The CBO report found that certain administrative costs such as for claims and customer service vary, while others are fixed and are similar whether a policy covers 100 enrollees or 100,000. The average share of the premium that covers administrative costs varies considerably — from about 7 percent for employment-based plans with 1,000 or more enrollees to nearly 30 percent for policies purchased by very small firms (those with fewer than 25 employees) and by individuals, according to the CBO report.

The CBO also noted that some a dministrative costs would be incurred under any system of health insurance, but proposals that shift enrollment away from the small group and individual markets could avoid at least a portion of the added administrative costs.

While agents and brokers are concerned, their cries and those of others opposed to a public plan appear to be having some effect.

Some Democrats, including Sen. Charles Schumer, D.-N.Y., who serves on the influential Senate Finance Committee, have indicated that they are open to rethinking the role of a g overnment option, if there is to even be one. One idea is to make it abide by all the same rules that private plans must follow — a “level playing field” requirement.

“The bottom line is you need somebody who is not a private insurance company to be in the mix, and there are many of us who feel very strongly about that. I don’t think the public plan should have an unfair advantage, but it would be giving all of you in the insurance industry an unfair advantage not to have a public plan,” Schumer said at acommittee meeting.

But insurance interests, including Scott Serota, president of the Blue Cross and Blue Shield Association, held firm in their opposition, maintaining that it’s impossible to structure a system with a government plan without an unfair advantage that would eventually force out the private market.

“Creating a government-run plan — in any form — to compete alongside the private sector for non-Medicare/Medicaid eligible individuals is unnecessary to achieve comprehensive reform and would have devastating consequences,” Serota told lawmakers. IJ www.insurancejournal.com

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Outside the Beltway, continued from page N13

this combined recession and soft market?

Rusbuldt: Well, you know this all started ... the economic problems that we have ... in Washington, D.C., and on Wall Street. It was a combination of both. But now Main Street America is catching the cold and independent agents are no different. We’re feeling the effects of a soft market. We’re feeling the effects of a national and global recession. When people aren’t buying new homes, when they’re not buying new cars, when they’re not starting new businesses, when they’re looking at reducing their premiums, increasing their deductibles, and changing their coverage limits, it affects independent agents. It’s less commission; it’s less revenue.

We have been living for the last couple of years on contingency compensation. It’s been very important. And as that is starting to w ane, for a variety of reasons, we’re seeing independent agents that are feeling the economic pressures that everybody else in this country is feeling. So it’s getting tougher.

The issues of compensation have sort of died down from the Eliot Spitzer investigation days.

But we still have pockets of areas where it’s an issue. New York state, right now, the legislature and the insurance department are looking at all these new transparency and disclosure laws.

So there are still issues on the table, both with our carriers and with regulators that we’re trying to work out.

IJ: How has the AIG crisis affected the ability of independent agents, in particular, to be heard in Washington?

Rusbuldt: The AIG debacle has been like a nuclear bomb that’s gone off in this town. The issues with AIG have been misunderstood by many members of Congress, and by a lot of people in the media. Credit default swaps is just one example of how members of Congress have misinterpreted the property/casualty insurance side versus the products side, which were not regulated by state insurance regulators. And to lump, as many decision makers do, the AIG issue and problems with the insurance IJ: In this environment, what seem to be regulatory system is wrong. It the concerns that agents doesn’t mean that the state regulahave with their carriers and tors were perfect. We know the life those relationships? insurance company side of AIG Rusbuldt: Interestingly, certain had problems and the state regulasurveys have come out in the last tors probably should have caught year saying that agents have some of the securities lending never been closer to their pripractices that were not caught. No mary carrier. But for carriers regulatory system is perfect. Look that aren’t the primary carrier, at the bank regulators. So we do relations are still sometimes need some enhancement in that tense and stressed. There’s a area. But saying that we have to number of areas where we’re Bob Rusbuldt replace the entire regulatory sysworking very well with our tem because of AIG is just wrong. company partners to make the workflow situaSo there has to be a lot of ed ucation that tion in independent agencies more efficient; takes place. It has affected independent agents. areas of technology is just one example. Real Not just on the regulatory side and the debate Time is a campaign that the Big “I” has been that is taking place in Washington right now; it spearheading through the Agents Council for is affecting independent agents in the marketTechnology. We’ve made great strides in that place. We get questions that we don’t really area. answer about what they should do for their But there are a number of other areas [where] we need carrier support. Certificates of customers, vis-a-vis AIG. Of course, every independent agency has to make that decision for insurance is a perfect example. Agents are burthemselves. They have to do their due dilidened with certificates of insurance problems gence, look at ratings of companies, and make now, where they’re hiring full-time people to those decisions. So it has been a huge issue in do nothing but issue certs. It’s very inefficient. the industry, in Washington, and it has affected We need the efficiencies that our carriers can bring to that problem to make it more efficient. the debate on regulatory reform. www.insurancejournal.com

To watch an IJ video with Bob Rusbuldt titled “What Most Irks Independent Agents With Their Carriers,” visit: http://www.insur ancejournal.tv/videos/2471/ IJ: There’s a lot of noise about who’s doing what on Capitol Hill. I want to give you a chance to toot Big ‘I’s’ horn a little bit. It’s recognized as the largest and most influential lobby for agents. What’s the size and scope of the Big ‘I’s’ operation in Washington? How does it work?

Rusbuldt: Well first of all, when you start with a base of 300,000 people that you represent, that is a true grassroots organization. And our people are primarily small business people. We do represent a lot of large agencies as well. But we have 1,500 people that have come to this legislative conference, and that speaks for itself. That is the largest industry legislative lobbying event. As we speak right now, we have all of those people on Capitol Hill, hopefully meeting with 435 House members and 100 U.S. Senators and their staff today. And we have meetings at the U.S. Agriculture Department today on crop insurance. We’re meeting with the Flood Insurance Administration. We have meetings at the Treasury Department.

We have real business people from every single state in the country here today, educating decision makers on the future of their business and what’s important for their clients. So that, in and of itself, is impressive.

We have 15 people in a Capitol Hill office; that’s beachfront property. We are right on Capitol Hill. We are a part of the culture of Capitol Hill. Everybody in that Capitol Hill office for the Big “I” worked for members of Congress, including myself. We worked on the inside. We know how it works.

IJ: How does that make you feel knowing that many people are out there looking to you as their leader in many ways?

Rusbuldt: The reason Big “I” has influence is not just because we have great lobbyists that worked on the Hill, understand the system, and are hardworking and dedicated. Our influence derives directly from our members. When these 1,500 people leave here today and go back to their homes, the residual effect of that is incredible. IJ

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Idea Exchange Growing Your Property Casualty Agency

Benefit by Experimenting With a Second Agency Brand Enjoy the Freedom of Marketing Experimentation

By Alan Shulman

P

roperty/casualty agencies can learn something valuable from successful car dealers. And no, it has nothing to do with waxing and buffing. It’s something even shinier, the wisdom to experiment. Dominant dealers are renown for owning multiple dealerships that sell competing brands of vehicles. They do it because they don’t know for certain which car lines will be popular in the future, so they hedge their bets to ensure their survival.

Agencies can do something similar.

Overpriced Image In today’s down economy, more people than ever are shopping their insurance. Some consumers bypass Main Street agencies in their search for fresh policies because they believe that these contracts are too high-priced. Instead, they seek out the highly promoted national marketers, without giving the traditional local agency a chance. These behemoths base their direct appeal on perceived discounts and routinely tout “typical” dollar savings. Full-service agencies can do something similar with discount checklists under their current agency name. [See “Don’t Emulate How the Big Auto Insurers Sell,” in Insurance Journal’s March 9, 2009, for details.] Another way to compete with these giants, and to benefit in other ways, is to follow the lead of the dealerships and initiate a second branded operation.

Start a Second Brand Doing business under a second name gives you the freedom to go after specialty commercial lines, the low-end of the auto market, and anything in between. Check with your legal advisors and carriers for the best way to set up the brand.

As for marketing it, here’s one way to go. If you elect to compete with the direct marketers in personal lines, offer quotes by phone, e-mail and online only. This way, you can avoid the in-person traffic that’s associated with insurance shopping while using your present staff and office space. Your necessities include a P.O. box, a dedicated toll-free number, a quote-generating Web site, and some attractive stationery with a cool logo. Such actions, among others, help to N16 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

Shulman

wall off the nascent brand from your existing agency. Rent space and hire additional personnel only as needed. Plus, take full advantage of any service centers offered by your carriers.

This way, the new enterprise concentrates on sales, leaving the day-to-day service to others.

With the second Marketing Freedom With the second operation in operation in place, place, you are able to test the you are able to effectiveness of virtually any sales or marketing action. For test the effectiveinstance, because you don’t ness of virtually need prospects to physically stop by your office, you can any sales or stretch your reach beyond marketing action. regional driving distances to the far borders of your licensing territory. If you are situated in a small town, you might solicit high premium personal lines contracts in the largest cities in your state (if your carriers cooperate). Essentially, you can solicit whatever policies you feel comfortable selling as long as they don’t generate excessive service and collection demands.

Another benefit is that you are free to experiment with new managing general agencies and carriers, new software tools, direct mailings and ads, plus trendy marketing tools like blogs, online videos, and more, witho ut unduly risking your core reputation. And whenever you encounter an insured or prospect that is better served by your main operation, you can seamlessly shift them over when it’s to their advantage. You can also adopt any marketing and operational positives that you’ve learned from your explorations.

If the future of insurance commerce is online as some sa y, it means that agency offices don’t have to be open to the p ublic. They just have to have an ever-contemporary Web site with the latest quoting and communication tools in place.

Establishing a second brand allows you to develop this outlook without having to worry about the impact on your current client base. You can have the best of both worlds, online and off. This benefit alone makes it worth the effort. IJ Shulman, CPCU, is the publisher of Agency Ideas, a subscription-only sales and marketing newsletter. He is also the author of the Illustrative Insurance Sales Letter series and other P/C sales reso urces. Phone: 800-724-1435. E-mail: alan@agencyideas.com. Web site: www.agencyideas.com. www.insurancejournal.com

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New Markets The following markets were selected from the MyNewMarkets database of 25,000 coverages and programs. To find additional markets, or to submit markets, go to www.MyNewMarkets.com.

Livestock Mortality Insurance Market Detail: Chopra Insurance Brokerage Inc. (www.choprainsurance.com) offers an “all risks of mortality” coverage that includes accidental and external injury, theft and limited governmental slaughter. Eligible animals include swine, cattle, equine, poultry, exotic animals, zoo animals and marine animals.

Minimum premiums and deductibles begin at $1,000.

Available Limits: Start at $1 million.

Carriers: Unable to disclose. “A” rated by A.M. Best. Admitted.

States: All except Alaska and Hawaii.

Contact: John Upchurch at 818-923-6090 or e-mail Chopra at info@choprainsurance.com.

Employment Practices Liability Market Detail: Apogee Insurance Group, a Berkshire Hathaway company, (www.apogeeinsgroup.com) has access to more than 10 carriers offering employment practices liability insurance. Available coverage terms include: defense cost outside the limits; full-prior acts coverage; and third-party liability coverage. Minimum premiums begin at $500 and deductible options range between $1,000 and $50,000.

Available Limits: $100,000 to $15 million.

Carriers: USLI, AIG, Beazley, Chubb, Evanston, First City, Monitor, Navigators Pro, Philadelphia, United National. “A” to “A++” rated by A.M. Best. Admitted and non-admitted.

States: All. Contact: Robert J. McIntyre at 610-337-3200 ext. 7021 or e-mail rmcintyre@apogee insgroup.com.

Gas & Convenience Store Program Market Detail: Hylant Group Inc. (www.HylantPetroleum.com) has an insurance program designed for petroleum dealers and convenience store exposures. A package of coverages is available including: property; crime; general liability; automobile; garage keepers’ liability; workers’ compensation; liquor liability; employment practices liability;

and underground and above ground pollution liability. Twenty-four hour operations are eligible in many states. Minimum premiums begin at $500.

Available Limits: As needed.

Carriers: Unable to disclose. “A” rated by A.M. Best. Admitted.

States: Ala., Ariz., Ark., Calif., Colo., Conn., Del., D.C., Ga., Idaho, Ill., Ind., Iowa, Kan., Ky., Maine, Md., Mass., Mich., Minn., Miss., Mo., Mont., Neb., Nev., N.H., N.J., N.M., N.Y., N.C., N.D., Ohio, Okla., Ore., Pa., R.I., S.C., S.D., Tenn., Texas, Utah, Vt., Va.,

Bringing Market Seekers and Market Providers Together • Find markets in our database • Promote your markets on our site • Join our community forums • Membership is free!

Wash., W.Va., Wis. and Wyo. Contact: Lynne Erickson at 312-283-1329 or e-mail lynne.erickson@hylant.com.

Bars, Taverns & Clubs Market Detail: Kevin Davis Insurance Services (www.kdins.com) offers access to coverage for bars, taverns, nightclubs, rap concerts, 24/7 adult entertainment and other special event operations. Program features include: liquor liability; assault and battery sublimits; and the availability of excess coverage. Minimum premiums begin at $7,500.

Available Limits: $1 million to $5 million.

Carriers: Unable to disclose. “A-” rated by A.M. Best.

States: Ariz., Calif., D.C., Fla., Ga., Hawaii, Mass., Nev., N.Y., N.C., Ohio, Ore., Pa., S.C.,

N18 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

Texas, Va., and Wash.

Contact: Ezana Asfaw at 213-833-6127 or e-mail easfaw@kdins.com.

Pizza Operators with Delivery Market Detail: AFC Insurance (www.afcins.com) introduces a program for pizza restaurant operators and delis including non-owned auto coverage for delivery.

Coverages available include businessowners’, non-owned auto and workers’ compensation.

Available Limits: As needed.

Carriers: Fireman’s Fund. “A” rated by A.M. Best. Admitted.

States: All except Alaska and Hawaii.

Contact: Art Lyons at 610-814-2184 or e-mail art.lyons@afcins.com.

Food Borne Illness Market Detail: Professional Liability Insurance Services Inc. (www.plisinc.com) offers coverage for restaurants suspected of causing or spreading a food-borne illness: trade name restoration/food borne illness loss of business income for restaurants. The costs of immediate crisis management expenses, communications, marketing and media support are covered. Accidental and malicious contamination both are covered by this policy. No restaurant is too small. The insured can purchase a six- or 18-month period of restoration. No minimum premium.

Available Limits: As needed.

Carriers: Certain underwriters at Lloyds.

“A” rated by A.M. Best. Non-admitted.

States: All. Contact: PLIS Product Team at 800-761-7547 or e-mail underwriting@plisinc.com.

Restaurants, Taverns, Caterers Market Detail: Specialty Insurance Agency (www.specialtyagency.com) offers a restaurant/tavern program covering all segments of the market; including taverns with 100 percent liquor and even new ventures.

Available Limits: As needed.

Carriers: QBE Insurance Co. “A” rated by A.M. Best. Admitted. www.insurancejournal.com

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States: Calif., Conn., Del., Fla., Ga., Ill., Md., Mass., Mich., Minn., N.J., N.Y., Ohio, Pa., R.I. and Tenn.

Contact: Mel Watters at 732-701-8900 or e-mail wwatters@specialtyagency.com.

Mass., Nev., N.J., N.Y., N.C., Ohio, Ore., Pa., S.C., Texas, Va. and Wash.

Contact: Ezana Asfaw at 877-807-8708 ext.

6127 or e-mail easfaw@kdins.com.

N.M., Ore., Pa., Tenn., Texas, Utah, Va. and Wash.

Contact: Elizabeth Gaida at 619-593-2059 or e-mail elizabeth@agostinisurplus.com

Bars, Taverns, Clubs and Concerts

Training Schools Package

Liquor Liability

Market Detail: Agostini Wholesale Insurance (www.agostinisurplus.com) offers a program focused on specialty training schools including: art, athletic, bartending, beauty, business, computer, cooking craft, dance, insurance, language, modeling, music, photography, public speaking, real estate, tailor, theater, tutoring instruction and more. General liability protection is available as part of a package or on a monoline basis. Professional liability and abuse/molestation coverage are also offered.

Available Limits: As needed.

Carriers: Various carriers. â&#x20AC;&#x153;A++â&#x20AC;? rated by A.M. Best. Admitted and non-admitted.

States: Ariz., Calif., Colo., Md., Neb., Nev.,

Market Detail: Tapco Underwriters (www.gotapco.com) offers agents in selected states access to a stand-alone liquor liability program. Coverage is designed for restaurants, bars and night clubs of all types.

Available Limits: As needed.

Carriers: Multiple carriers. Rating not provided. Non-admitted.

States: Calif., Del., D.C., Fla., Ga., Md., N.J., N.C., Pa., S.C., Tenn., Texas and Va. Contact: Chris Reisdorf at 336-584-8892 or e-mail creisdorf@gotapco.com. IJ

Market Detail: Kevin Davis Insurance Services (www.kdisonline.com) offers a general liability program designed for adult establishments. Target classes and activities include bars and taverns, clubs, concerts, nightclubs, promoters, rap concerts and other special events. Adult entertainment operations open 24/7 are also eligible. Full liquor liability coverage is available, as is assault and battery protection (subject to a sublimit). Excess policies are also available.

Available Limits: $1 million to $5 million Carriers: Unable to disclose. â&#x20AC;&#x153;A-â&#x20AC;? rated by A.M. Best. Non-admitted.

States: Ariz., Calif., D.C., Fla., Ga., Hawaii,

Submit your companyâ&#x20AC;&#x2122;s property/casualty markets to the industryâ&#x20AC;&#x2122;s leading searchable database at www.mynewmarkets.com.

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Idea Exchange Workers’ Compensation

A Practical Guide to Workers’ Compensation Prepare Clients for Premium Audits by Knowing the ABCs of Audits

I

nsurance agents and brokers are charged with many duties on behalf of their clients. One often neglected duty is working with insureds to prepare them for the annual workers’ compensation and general liability audits.

Many agents mistakenly assume insureds know what to expect and how to prepare for this yearly event. In fact, the opposite may be true. Insureds, even the most sophisticated and experienced, must be coached through the process to some Mitch Dunford extent every year.

Having experienced the audit process does not make the insured an expert. Because 12 months passes between meetings with the auditor, clients tend to forget the process.

Mitch Dunford, CEO of Wells Publishing, asked MyNewMarkets.com’s Associate Editor Chris Boggs in a recent podcast interview to list and discuss the “rules” of preparing clients for a premium audit. Boggs relates the “ABCs” of premium audits as found in his new book, “The Insurance Professional’s Practical Guide to Workers’ Compensation: From History

Buying the Book The “The Insurance Professional’s Practical Guide to Workers’ Compensation” by MyNewMarkets.com’s Associate Editor Chris Boggs addresses in clear, jargon-free English many of the concepts, policies and practices in workers’ compensation that brokers, risk advisors and corporate risk managers need to know. Boggs explains to non-lawyers the legal aspects of workers’ compensation, freeing the reader from having to wade through dense legal and regulatory treatises. The book can be p urchased as a digital download for $49.95 or as a paperback book for $55 by visiting: http://ijmag.com/wcbook.

through Audit.” Following is an excerpt from the podcast interview. To listen to the full podcast, visit: http://www. insurancejournal.tv/channels/podcasts/.

Mitch Dunford: In your new book, I found the first chapter very interesting. You talked about the history of workers’ comp all the way back to pirates. Can you talk about that?

Chris Boggs: Sure. It was actually quite an interesting study, to trace this history as to how workers’ comp got to the Chris Boggs United States and how it evolved over time. I was watching the History Channel and in one piece about pirates, it made a comment just in passing that the pirates actually had a system of workers’ compensation. I thought, “That’s pretty interesting. Let’s research this and see if this is true.”

What I found out is that they (pirates) did, in fact, have a system like we think of as workers’ comp. If a crew member was injured while attacking somebody else’s boat, trying to take their stuff from them, the crew felt obligated because the person was helping the crew and doing the work of a pirate. There was the caveat, you had to live; there was no death benefit for pirates. And if the member was able, he was allowed to stay on the ship and perform lighter duties.

Dunford: That’s interesting. In the last chapter of your book, you list five audit guidelines or rules. You call them the ABCs of premium audits.

What are the five guidelines agents should use to prepare their clients for their audits?

Boggs: In preparation for any audit, the agent needs to explain to the insured what’s coming. The first rule — the “A” of the ABCs — is to “always” be there. The

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Podcast To listen to the full podcast of this interview, visit: http://www.insurance journal.tv/videos/2495/ person who is intimately knowledgeable about the company’s finances and the company itself must be there to answ er questions. If the most qualified person is not there, the auditor is going to have to make some assumptions. And these assumptions are rarely to the insured’s advantage.

The “B” is “be prepared.” Have all the information the auditor needs. Basically, you want him in and out as fast as possible. Don’t make him (the auditor) wait, and don’t make him uncomfortable (prepare a place for him to work). Have the payroll records, employee records, cash disbursement records and certificates of insurance if the insured has subcontracted any work.

On the construction side, if the insured has participated in any wrap-ups or OCIPs (Owner Controlled Insurance Programs), that information should be provided.

The “C” in the ABCs is to al ways get a “copy” of the auditor’s work papers before he or she leaves. Before the auditor walks out the door, get a copy of his or her work papers. Because that’s the point at which the insured can see what his (the auditor’s) train of thought is, the information he has and hopefully be able to anticipate any problems.

It is much better to get audit problems ironed out before the audit gets chiseled in stone. And it’s much more difficult to deal with after it’s already been processed and billed. With the work papers, these problems can hopefully be cut off.

“D” stands for “don’t” volunteer more information than asked. It sounds like you’re trying to be secretive, but basically, don’t go overboard. I know insureds are proud of their company. Everybody’s proud of their company, but don’t give them (auditors) reason to investigate longer than necessary. It’s like when OSHA shows up.

In North Carolina, OSHA has to tell y ou what they want to see. The recommendawww.insurancejournal.com

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Dunford: What is the single enterprise rule?

Boggs: Basically, the single enterprise rule is an attempt to meet the goal of the workersâ&#x20AC;&#x2122; compensation classification system, which is to assign one code to the entire b usiness operation. This is part of and related to the governing classification rule. There are, however, four exceptions to the single enterprise rule the insured must know about and be able to apply. The exceptions are: standard exception classifications, the interchange of labor rule, general exclusion classifications and the multiple enterprise rule.

Dunford: If someone wanted a copy of your book, â&#x20AC;&#x153;The Insurance Professionalâ&#x20AC;&#x2122;s Practical Guide to Workersâ&#x20AC;&#x2122; Compensation: From History through Audit,â&#x20AC;? where could they order it?

Boggs: You can get it from www.insurancejournal.com and at http://ijmag.com/wcbook. IJ www.insurancejournal.com

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Idea Exchange Workers’ Compensation

Education Strategy Propels Workers’ Comp Agency’s Growth in Down Economy

By John R. Graham

W

hile the economy is in freefall, a and bad, healthy employee relaSioux Falls, S.D., workers’ comtionships are key drivers of profpensation agency, Insurance itability, and ACES works diliSpecialty Group, is racking up gently with employers to double-digit growth. strengthen their hiring practices, improve communication and According to owner Renae Eidenshink, the training, and cultivate positive reason for this remarkable record is simply corporate cultures. With a focus that the agency focuses on education rather on solving problems, the program than sales. “Sales become easy if you begin fosters commitment and support with education,” notes Eidenshink, who has from employees, thus maximizing more than 20 years experience in the insurproductivity. Because of this ance industry. approach, employers consider In 2005, Eidenshink became a Certified ACES a resource and are willing WorkComp Advisor (CWCA) after intensive monitoring, return-to-work programs, medical to pay for its services. training by the Institute of Work Comp clinic relationships, nurse triage and superviProfessionals (IWCP). As a CWCA, she became sor training. The process involves much more HR Consulting skilled analyzing workers’ comp accounts, than disseminating information; it requires a During the recession, more clients have identifying errors and overcharges, and develpractical hands-on effort. For example, when turned to ACES for consulting services related oping strategies to help employers reduce setting up medical relationships, the staff to human resources. Four hours a week or their workers’ comp costs permanently. takes the client with the job descriptions to more can be devoted to helping clients with However, she pointed out that the ability to the occupational medical clinic to review with reductions in the workforce and leverage this knowledge to the administrator. This practical approach guiding the termination process. build her business did not ‘Sales become means that services are customized to comKnowing the laws and the really become clear until she plement or enhance a client’s current loss-conimpact that termination has on was re-certified by the easy, if you trol procedures. Collectively these programs other employees, the staff proInstitute three years later. It begin with work to improve employee morale and control vides employers with a roadmap was then that she formed an costs for the employer. for the proper procedures as affiliate company, Alternative education.’

While employers may be reluctant to well as supervisor training to Comp and Employment embrace this comprehensive approach in cope with the effects of the reduction in Solutions (ACES) to brand the WorkComp today’s economic climate, Eidenshink addressworkforce. In some cases, employers rely on program. es this issue head-on with two creative pracACES to manage the layoff process.

While an important part of the program tices. In 2005, she developed a Coupled with this consultative involves identifying errors and overcharges pay-as-you-go workers’ compenservice, ACES provides the tools that are commonplace in workers’ compensasation program and after three employers need to systemize their tion accounts, Eidenshink saw opportunity in years, has four carriers that businesses with the right processeducating her clients and developed a prosupport the program with their es to reduce labor costs. For examgram, “Reduce Labor Cost by Helping underwriting and technology. ple, the American Payroll Business Owners Become More Productive Business owners have the Association estimates that hourly and Profitable.” option of purchasing workers’ payroll is overstated by 3 percent.

Building on the IWCP model, the program compensation with no money Recognizing the compounding promotes workers’ compensation not as a down and paying premiums on effect of this overstatement in product or commodity, but as a process that actual payroll with no audit. regard to federal and state unemcan reduce costs for employers over the longACES runs the payroll, an ployment and workers’ compensaterm. The goal is to systemize businesses with Renae Eidenshink added revenue source, and pays tion, clients appreciate the value the right processes and increase profitability the premium in arrears based on the prior of proper time tracking systems. and productivity. month’s payroll. Employers find this service In addition, the CWCAs work with The cornerstone of the program is underattractive because there is no upfront cost and employers to establish 24-hour injury standing labor costs and helping clients better they don’t have to wait for an audit to obtain response, proper claims management and manage their labor force. In both good times N22 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

www.insurancejournal.com

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the premium savings when there is a reduction in staff.

Second, not all programs are implemented at once. A quarterly calendar guides the business plan, and each quarter the employer receives new tools to help reduce labor costs.

The gradual introduction allows the employer to assimilate the program and control costs, while providing a catalyst for future changes.

Although each tool contributes to strengthening business practices and improving productivity, collectively the whole is greater than the sum of its parts augmenting the bottom line.

Marketing Eidenshink promotes her agency’s program through seminars, radio programs and published articles. While CPAs, business attorneys and HR attorneys are a strong source of referrals, most of the prospects come from satisfied clients. “Few businesses understand the complexities of workers’ compensation, the importance of lowering their experience mod and the interrelationship between workers’ comp and sound business practices. Most think all they can do is shop for better rates, b ut that does nothing to control costs long-term,” Eidenshink said. “Once a business has been in our program they experience the value of focusing on risk and claims management rather than policy shopping.”

Recently one manufacturing client that entered the program with a relatively high experience mod saw a 40 percent drop in premium as a result of implementing the process.

Success of the program is measured by the reduction in overall costs, the response of the clients and referrals from clients. While many clients are from labor-intensive fields such as manufacturing and contracting, the program benefits all types of businesses. Eidenshink said they have seen a spike in seasonal operations that value the pay-as-you-go approach and the guidance on hiring practices.

“When it comes to workers’ compensation, knowledge and education give us the competitive edge. IWCP provides the tools, the networks, connections and an Internet-based forum for ready access to experts throughout the country. On the forum, I get educated every day and leverage the knowledge to solve problems for my clients,” Eidenshink said. IJ Graham is president of Graham Communications, a marketing services and sales consulting firm. Phone: 617-328-0069.

E-mail: jgraham@grahamcomm.com. www.insurancejournal.com

May 18, 2009 INSURANCE JOURNAL-NATIONAL REGION | N23

Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2009 Workers’ Comp Directory, a comprehensive listing of intermediaries and carriers offering wor kers’ compensation co verage throughout the countr y. The information lis ted in this directory serves as a resource guide for independent agents and br okers looking for workers’ compensation markets.

Intermediaries and carriers writing workers’ compensation coverage and profiled in this directory submit updated information directly to Insurance Journal. We make every attempt to ensure the accuracy of all information listed in this dir ectory. You may also vie w Insurance Journal’s Workers’ Comp D irectory online at: www .insurancejournal.com/resources. To submit a listing for futur e workers’ compensation directories, visit: www.insurancejournal.com/directories, or e-mail Kristine Honey at: khoney@insurancejournal.com.

We hope you find the 2009 Workers’ Comp Directory to be a useful tool when sear ching for markets. To comment on this dir ectory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.

4 All Insurance Services P.O. Box 992, Woodland Hills, CA 91365 Phone: 818-346-4555 Email: info@4allinsurance.net Website: www.4allinsurance.net Markets Offered: Health Insurance, HMO, Managed Care, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $None Brokered Business: Accepted States Entered in: AZ CA FL NC NV OR TX UT VA WA

Advanced Professional Services, LLC 240 Lock Rd., Deerfield Beach, FL 33442 Phone: 866-551-9805 Fax: 954-725-6115 Email: info@advancedprofessional.com Website: www.advancedprofessional.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Not Accepted States Entered in: FL

5Star Workers' Compensation Services 906 S Kirkwood, St. Louis, MO 63122 Phone: 877-247-9772 Email: marketing@5starsp.com Website: www.5starsp.com Markets Offered: Claims Admin, Excess Workers’ Comp, Self Ins., Surety Bonds, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, AIG, Amtrust, Berkley Net, Cybercomp - Coregis & Westport, Employers Ins. Group, Hartford, DELOS, Praetorian, Redwood, Zenith, Zurich, Lincoln General, Self Insurance

Agostini Wholesale Insurance P.O. Box 880288, San Diego, CA 92168 Phone: 800-922-7283 Fax: 619-593-2008 Email: ane@agostinisurplus.com Website: www.agostiniwholesale.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: CA

ACE Risk Management 436 Walnut St., Philadelphia, PA 19106 Phone: 215-640-4642 Email: Please go to our website for contact info Website: www.aceusa.com Markets Offered: Workers’ Comp, Excess Workers’ Comp, Texas Excess Indemnity, GL, Automobile Liability & other financial products.

Phone Inquiries: Accepted Minimum Premium: Loss Sensitive Accounts with $100,000 Deductible/Retention for Workers’ Comp Brokered Business: Accepted States Entered in: All States Alliance With: ESIS, Inc. and other Third Party Administrators & Risk Management Providers

All Risks, Ltd. 300 Arboretum Pl., Ste. 410, Richmond, VA 23236 Phone: 800-366-7475 Fax: 804-330-9485 Email: jim.mitchell@allrisks.com Website: www.allrisks.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Over 10 National Carriers Represented

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All Risks, Ltd. 10150 York Rd., 5th Fl, Hunt Valley, MD 21030 Phone: 800-366-5810 Fax: 410-828-8179 Email: rlang@allrisks.com Website: www.allrisks.com Markets Offered: Program specific WC classes, USL&H, W orkers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Various in all states

AllComp Solutions 555 North Ln., Ste. 6060, Conshohocken, PA 19428 Phone: 800-970-9778 Fax: 610-941-9889 Email: workerscomp@nsminc.com Website: www.allcompsolutions.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: All States Carriers Represented: 10 National Carriers American Liberty Insurance Company 3601 N University Ave., Ste. 100, Provo, UT 84604 Phone: 801-226-8008 Email: receptionist@american-liberty.net Website: www.american-liberty.net Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: AZ CO ID MT NM NV UT

www.insurancejournal.com

2009 Workers’ Compensation Directory American Management Corporation 824 Front St., Conway, AR 72032 Phone: 800-233-2398 Fax: 501-450-6962 Email: marketing@amcins.com Website: www.amcinsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: Most States Carriers Represented: ACE, AmTrust, Zurich AMERISAFE 2301 Hwy 190 W, DeRidder, LA 70634 Phone: 800-897-9719 Fax: 800-450-1091 Email: aiic-mktg@amerisafe.com Website: www.amerisafe.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Not Accepted States Entered in: AK AL AR DE FL GA IA IL IN KS KY LA MD MN MO MS NC NV OK PA TN TX VA WI AMIS/Alliance Marketing & Insurance Services 355 Via Vera Cruz, Ste. 7, San Marcos, CA 92078 Phone: 800- 843-8550 Fax: 800- 573-8550 Email: bwest@amiscorp.com Website: www.amiscorp.com Markets Offered: Ins. Adjusters, Security Guards & Alarm Co’s, Workers’ Comp for Private Investigators Phone Inquiries: Accepted Minimum Premium: $297 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Travelers AmWINS Group, Inc. - 45 Offices Nationwide See Website for Locations Headquarters - Charlotte, NC 28210 Phone: 704-749-2700 Fax: 704-943-9000 Email: marketing@amwins.com Website: www.amwins.com Markets Offered: Excess Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $None Brokered Business: Accepted States Entered in: All States Carriers Represented: All Excess Workers’ Compensation Carriers AmWINS Access Insurance Services 19867 Prairie St., Ste. 250, Chatsworth, CA 91311 Phone: 818-772-3886 Fax: 818-718-9014 Email: lynda.becker@amwins.com Website: www.amwins.com Markets Offered: Excess Workers’ Comp, SelfInsurance - Group & Individual, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, AIG, Travelers, OneBeacon, Everest, Employers, Crum & Forster, Majestic, Safety National, CA State Fund Alliance With: Employers Insurance Group AmWINS Program Underwriters 214 Senate Ave., Ste. 201, Camp Hill, PA 17011 Phone: 717-214-7557 Email: ben.francavilla@amwins.com Website: www.amwins.com/apu Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Various AM Best A- Rated or Higher

www.insurancejournal.com

Apex Insurance Services of Texas 100 NE Loop 410, Ste. 650, San Antonio, TX 78216 Phone: 210-340-8985 Fax: 210-340-8986 Email: hughes@apexinsurance.com Website: www.apexinsurance.com Markets Offered: Excess Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $50,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Ace, AIG, CNA, XL, Safety National, MWECC, Liberty, New York Marine & General Appalachian Underwriters, Inc 800 Oak Ridge Turnpike, Ste. A-1000 Oak Ridge, TN 37830 Phone: 888-376-9633 Fax: 888-871-7644 Email: jonathan.hooven@appund.com Website: www.appund.com Markets Offered: Workers' Comp, Temporary Staffing Organizations Phone Inquiries: Accepted Minimum Premium: $750 Brokered Business: Accepted States Entered in: All States Carriers Represented: Multiple ‘A’ rated carriers, including several exclusive programs targeting Healthcare, Temp Staffing and Construction risks.

Applied Underwriters, Inc. P.O. Box 281900, San Francisco, CA 94128 Phone: 877-234-4450 Fax: 877-234-4452 Email: sales@auw.com Website: www.auw.com Markets Offered: EPLI, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $N/A Brokered Business: Accepted States Entered in: All States

Arrowhead General Insurance Agency, Inc.

701 B St., Ste. 2100, San Diego, CA 92101 Phone: 866-401-2111 Fax: 866-650-2747 Website: www.ArrowheadGrp.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies by Carrier Brokered Business: Accepted States Entered in: All States Carriers Represented: Multiple “A” rated carriers

Assurance TempStaff Insurance Brokerage

1750 E Golf Rd., Schaumburg, IL 60173 Phone: 847-463-7134 Fax: 847-440-9126 Email: tempstaff@assuranceagency.com Website: www.assuranceagency.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $75,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: AIG

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2009 Workers’ Compensation Directory Automotive Risk Mgmt. & Ins. Services, Inc. 1919 Grand Canal Blvd., Ste. C-7, Stockton, CA 95207 Phone: 800-224-6363 Fax: 888-504-8062 Email: apps@armonline.com Website: www.armonline.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $None Brokered Business: Accepted States Entered in: Most States Bass Underwriters 6951 W Sunrise Blvd., Plantation, FL 33313 Phone: 954-473-4488 Fax: 954-316-3100 Email: bturgeon@bassuw.com Website: www.bassuw.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $750 Brokered Business: Not Accepted States Entered in: CA FL Carriers Represented: Various Berkshire Hathaway Homestate Companies 50 California St., San Francisco, CA 94111 Phone: 888-495-8949 Fax: 415-591-0128 Email: marketing@bhhc-wc.com Website: www.bhhc-wc.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: Most States Britt/Paulk Insurance Agency, Inc. 100 Glen Eagles Ct., Carrollton, GA 30117 Phone: 800-842-8917 Fax: 770-836-8563 Email: ajbrown@brittpaulk.com Website: www.brittpaulk.com Markets Offered: Workers’ Comp, USL&H Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Not Accepted States Entered in: All States Brownyard Group 21 Maple Ave., P.O. Box 9175, Bay Shore, NY 11706 Phone: 800-645-5820 Fax: 631-666-5723 Email: info@brownyard.com Website: www.brownyard.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $10,000 Brokered Business: Accepted States Entered in: Most States Brownyard Programs Ltd. 86 Carleton Ave., East Islip, NY 11730 Phone: 631-581-9300 Fax: 631-581-9385 Email: info@brownyardprograms.com Website: www.brownyardprograms.com Markets Offered: Workers’ Comp for Security Guards, Investigators, Alarm Companies Phone Inquiries: Not Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: AIG

Builder’s & Tradesmen’s Insurance Svcs.

6610 Sierra College Blvd., Rocklin, CA 95677 Phone: 916-772-9200 Fax: 916-772-9292 Email: info@btisinc.com Website: www.btisinc.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: AZ CA CO NM NV OR TX California State Compensation Insurance Fund P.O. Box 420807, San Francisco, CA 94142 Phone: 800-834-2393 Website: www.scif.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $None Brokered Business: Accepted States Entered in: CA Alliance With: State Fund Medical Provider Network Cambridge General Agency (Clovis) 3134 Willow Ave., Ste. 101, Clovis, CA 93612 Phone: 800-979-5002 Fax: 925-977-1651 Email: julie@valleyins.com Website: www.cambridgega.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CA Carriers Represented: Ace Complete, Zurich, OneBeacon Cambridge General Agency (Rancho Cordova) 2865 Sunrise Blvd., Ste. 105, Rancho Cordova, CA 95742 Phone: 800-979-5002 Fax: 925-977-1651 Email: julie@valleyins.com Website: www.cambridgega.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CA Carriers Represented: Ace Complete, Zurich, OneBeacon Cambridge General Agency (San Diego) 4565 Ruffner St., Ste. 102, San Diego, CA 92111 Phone: 800-979-5002 Fax: 925-977-1651 Email: julie@valleyins.com Website: www.cambridgega.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CA Carriers Represented: Ace Complete, Zurich, OneBeacon Cambridge General Agency (Walnut Creek) 100 Pringle St., Ste. 420, Walnut Creek, CA 94596 Phone: 800-979-5002 Fax: 925-977-1651 Email: julie@valleyins.com Website: www.cambridgega.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CA Carriers Represented: Ace Complete, Zurich, OneBeacon

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Cambridge General Agency (West Covina) 100 N Citrus St., Ste. 405, W est Covina, CA 91791 Phone: 800-979-5002 Fax: 925-977-1651 Email: julie@valleyins.com Website: www.cambridgega.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CA Carriers Represented: Ace Complete, Zurich, OneBeacon Care Providers Insurance Services, LLC 16301 Quorum Rd., Ste. 130B, Addison, TX 75001 Phone: 800-761-7072 Fax: 800-224-7145 Email: parcher@nsminc.com Website: www.ins-cps.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $None Brokered Business: Not Accepted States Entered in: All States Carriers Represented: This Workers’ Comp in Texas only - Open Safety Group accessed through Texas Mutual Casualty & Surety, Inc. 100 Corporate Pkwy, Ste. 350, Birmingham, AL 35242 Phone: 205-332-8135 Fax: 205-995-0862 Email: cshiebler@csiapex.com Website: www.csiapex.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: AIG, Amerisafe, Am Trust, Crum & Forster, Zurich Global Energy, Liberty Mutual for Oil & Gas. CGA Associates, Inc. 30 W Main St., Freehold, NJ 07728 Phone: 800-684-1404 Fax: 732-845-1113 Email: info@cgaassociates.com Website: www.cgaassociates.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, AIG, OneBeacon, Travelers, Hartford, CNA, AmTrust Chamber Insurance Agency Services 100 Executive Dr., West Orange, NJ 07052 Phone: 800-336-2007 Fax: 973-731-2288 Email: jpferreira@chamberagent.com Website: www.chamberagent.com Markets Offered: Workers’ Comp (All Sizes & Classes), Excess Workers’ Comp, USL&H Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: All States Carriers Represented: AIU Holdings, Hartford, ACE, CNA, Travelers, Zurich, Crum & Forster and others.

www.insurancejournal.com

2009 Workers’ Compensation Directory Charity First Insurance Services, Inc. One Market, Spear Tower, Ste. 200 San Francisco, CA 94105 Phone: 800-352-2761 Fax: 415-536-4033 Email: charityfirstinfo@charityfirst.com Website: www.charityfirst.com Markets Offered: Workers’ Comp, Nonprofits Only Phone Inquiries: Accepted Minimum Premium: $1,500 Brokered Business: Not Accepted States Entered in: Most States Carriers Represented: Admitted in most states Cluett Commercial Insurance Agency, Inc. 8 Pembroke St., Kingston, MA 02364 Phone: 800-926-6771 ; Fax: 781-585-4180 Email: info@cluettinsurance.com Website: www.cluettinsurance.com Agent Registration for Submissions: www.cluettinsurance.net Marketing Contact: kalben@cluettinsurance.com Markets Offered: Workers’ Comp, Umbrella Phone Inquiries: Accepted Minimum Premium: $500 in certain states Brokered Business: Accepted States Entered in: CT FL GA IL IN KY MA MD ME MI MN NC NH NJ NY PA RI SC TN TX VA VT WI WV Carriers Represented: AIG, ACE Complete, AmTrust, Arrow Mutual, CyberComp, Magna Carta Co’s, Norfolk & Dedham Company, Safeco, Zurich Colemont Insurance Brokers - Atlanta 2859 Paces Ferry Rd. NW, Ste. 1500, Atlanta, GA 30339 Phone: 770-434-3666 Fax: 770-434-1008 Email: MarketingAtlanta@colemont.com Website: www.colemont.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Not Accepted States Entered in: All States Colemont Insurance Brokers- Chicago 300 S Wacker Dr., Ste. 900, Chicago, IL 60606 Phone: 312-986-0404 Fax: 312-986-0491 Email: MarketingChicago@colemont.com Website: www.colemont.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Not Accepted States Entered in: All States Colemont Insurance Brokers- Hartford 195 Farmington Ave., Ste. 210, Farmington, CT 06032 Phone: 860-678-8870 Fax: 860-678-8871 Email: CTMarketing@colemont.com Website: www.colemont.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Not Accepted States Entered in: All States Colemont Insurance Brokers - Phoenix 3333 E Camelback Rd., Ste. 260, Phoenix, AZ 85018 Phone: 602-567-4300 Fax: 602-567-4366 Email: MarketingPhoenix@colemont.com Website: www.colemont.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $3,500 Brokered Business: Not Accepted States Entered in: AZ CA CO ID NV OR UT Carriers Represented: AIG, Crum & Forster, Safety National

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Colemont Insurance Brokers- San Francisco 100 California St., Ste. 600, San Francisco, CA 94111 Phone: 415-693-5890 Fax: 415-693-9399 Email: MarketingNoCal@colemont.com Website: www.colemont.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Not Accepted States Entered in: All States Colemont Insurance Brokers- Texas (Dallas) 5910 N Central Expy, Ste. 500, Dallas, TX 75206 Phone: 800-528-5544 Fax: 214-528-9101 Email: MarketingTX@colemont.com www.colemont.com/us/products/workerinjury.aspx Markets Offered: Texas Non Subscription, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: NonSubscription- TX only; WCAll States Colemont Insurance Brokers- Woodland Hills 21650 Oxnard St., Ste. 1600, W oodland Hills, CA 91367 Phone: 818-710-3630 Fax: 818-710-3635 Email: workcomp@colemont.com Website: www.colemont.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: AZ CA ID NM NV OR Carriers Represented: Employers Direct (exclusive program), ICW, SeaBright, ACE, AIG, Alaska National, Crum & Forster and more.

Combined Resources P.O. Box 1152, Medford, NY 11763 Phone: 631-758-6780 Ext. 1 Fax: 631-758-6781 Email: AInsurer@aol.com Website: www.AutoInsureIt.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CT DE FL MD ME NC NH NJ NY PA RI SC VA VT Carriers Represented: over 25 Insurance companies Combined Underwriting Agency Network, Inc. 14 Front St., Ste. 201, Hempstead, NY 11550 Phone: 516-538-4400 Ext. 3705 Fax: 516-538-4613 Email: ASterenberg@comnet-insurance.com Website: www.comnet-insurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: NJ NY Carriers Represented: AIG, PSM, Rochdale, Tower, New York Compensation Managers CommonWealth Professional Group 133 N 23rd St., Reading, PA 19606 Phone: 610-370-1200 Fax: 610-370-2779 Email: tfoy@cpgins.com Website: www.cpgins.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $3,500 Brokered Business: Not Accepted States Entered in: AK AL CT DE GA IA ID IL IN KS MD MI MN MO NC NE NJ P A SC TN VA WI Carriers Represented: ACE, AIG, some regionals

Comp Solutions Network, Inc.

7826 Hillmont St., Houston, TX 77040 Phone: 713-690-3500 ; 800-256-8035 Fax: 713-690-8484 Email: diannewilson@compsolutionsnetwork.com Website: www.compsolutionsnetwork.com Markets Offered: Monoline Workers’ Comp, NonSubscriber Programs for Texas Employers Phone Inquiries: Accepted Minimum Premium: $250 Brokered Business: Accepted States Entered in: All States Carriers Represented for Work Comp: AIG, ACE, AMTRUST, Amerisafe, Benchmark, Berkshire Hathaway, Employers, General Casualty, Republic Indemnity Co of America, Midwest, Old Glory, Service Lloyds, Southern Vanguard, One Beacon, Texas Mutual, Texas Builders, Zenith Non-Subscriber Carriers Represented: ACE American, Aegis, Essex, American Fidelity, BCS, Chesapeake, CIGNA, Fidelity Security, GHS P&C, LEXINGTON, Markel, Mt. Hawley, OneBeacon, Philadelphia American, North American Capacity, Republic Vanguard, Service Lloyds, Starr Indemnity, Union Central, US Specialty General Agent for Monoline Workers’ Comp Programs. We are also specialist for Occupational Accident Plans for Texas Non-Subscribers. Visit our website and use our online fast & easy WEBQUOTE form for your submission. No Password Required!

Compass Insurance Group of Agencies 9310 Topanga Canyon Blvd., Chatsworth, CA 91311 Phone: 818-507-1980 Fax: 818-545-3818 Email: mail@compasseands.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: CA Compensation Risk Managers of California, LLC 2600 Michelson Dr., Ste. 1620, Irvine, CA 92612 Phone: 877-276-4747 Email: marketing@trustcrm.com Website: www.trustcrm.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $25,000 Brokered Business: Accepted States Entered in: CA Alliances With: N/A Costanza Insurance Agency, Inc. 9101 LBJ Freeway, Ste. 150, Dallas, TX 75243 Phone: 800-346-0942 Fax: 972-991-2139 Email: d.howard@cia-tx.com Website: www.costanzainsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Zurich Insurance Co.

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2009 Workers’ Compensation Directory CoverX Corporation 29621 Northwestern Hwy., Southfield, MI 48034 Phone: 248-358-4010 Fax: 248-358-2459 Email: coverxuw@coverx.com Website: www.coverx.com Markets Offered: Workers’ Comp for Security Guard & Alarm Contractors Phone Inquiries: Accepted Minimum Premium: $Varies Brokered Business: Accepted States Entered in: All States except AK & HI Carriers Represented: Travelers Cresta Insurance, LLC 6855 S Havana St., Centennial, CO 80112 Phone: 303-691-8540 Fax: 866-759-4954 Email: rrich@CrestaIns.com Website: www.CrestaIns.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $10,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Amerisafe, AIG, C&F, RTW + several others

Employer's Comp Associates, Inc. 14350 Proton Rd., Dallas, TX 75244 Phone: 972-931-2026 Fax: 972-931-2126 Email: darlenefreeman@empcomp.com Website: www.employerscompassociates.com Markets Offered: Workers' Comp, Health Insurance Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: TX Carriers Represented: Berkshire Hathaway, AIG

Employers Assurance Company (aka AmCOMP Assurance Corporation)

701 US Hwy 1, Ste. 200, North Palm Beach, FL 33408 Phone: 800-226-1898 Fax: 800-226-1805 Email: customerservice@employers.com Website: www.employers.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies by State Brokered Business: Accepted States Entered in: AL AZ DC FL GA IL IN KS KY MD MO MS NC NM OK SC TN TX V A WI

Employers Compensation Insurance Company (ECIC)

500 N Brand Blvd., Ste. 800, Glendale, CA 91203 Phone: 888-682-6671 Fax: 818-549-4770 Email: customerservice@employers.com Website: www.employers.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies by State Brokered Business: Accepted States Entered in: AZ CA CO FL ID IL MT OR P A TX UT Alliance With: Employers Occupational Health

N28 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

Employers Insurance Company of Nevada (EICN)

10375 Professional Circle, Reno, NV 89521 Phone: 888-682-6671 Fax: 702-671-7175 Email: customerservice@employers.com Website: www.employers.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: NV Alliance With: Employers Occupational Health

Employers Preferred Insurance Company (aka AmCOMP Preferred Insurance Co.)

701 US Hwy 1, Ste. 200, North Palm Beach, FL 33408 Phone: 800-226-1898 Fax: 800-226-1805 Email: customerservice@employers.com Website: www.employers.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies by State Brokered Business: Accepted States Entered in: AL AR DC FL GA IA IL IN KS KY MD MN MO MS NC OK SC TN TX V A WI Alliance With: Employers Occupational Health First Cardinal, LLC 10 British American Blvd., Latham, NY 12110 Phone: 518-213-1900 Fax: 518-213-1902 Email: rflaherty@firstcardinal.com Website: www.firstcardinal.com Markets Offered: NYS DBL, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $None Brokered Business: Accepted States Entered in: CT IL MA NH NJ NY P A TX VT Carriers Represented: AmTrust North America Alliance With: Self-insurance Groups Fly Away Home, LLC 200 Northpines Dr., Ste. 316, Kingwood, TX 77382 Phone: 281-380-2521 Fax: 281-576-7582 Email: darrylhunt@flyawayhome.us Website: www.flyawayhome.us Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $15,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Dallas National Ins., Companion Ins., Providence Ins., Ullico Ins. Global Aerospace 51 JFK Parkway, Short Hills, NJ 07078 Phone: 973-379-0800 Fax: 973-379-8602 Email: skeneally@global-aero.com Website: www.global-aero.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $None Brokered Business: Not Accepted States Entered in: All States Gresham & Associates, Inc. - Corporate Office One Gresham Landing, Stockbridge, GA 30281 Phone: 888-473-7442 Fax: 770-389-6867 Email: marketing@greshaminc.com Website: www.gresham-inc.com Markets Offered: Maritime Employers Liability Phone Inquiries: Accepted Minimum Premium: $3500 Brokered Business: Not Accepted States Entered in: All States

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2009 Workers’ Compensation Directory Guard Insurance Group P.O. Box A-H, Wilkes-Barre, PA 18703 Phone: 570- 825-9900 Fax: 570- 823-5930 Email: csr@guard.com Website: www.guard.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Not Accepted States Entered in: AL CA CT DC DE FL GA IL IN MA MD ME MI MS NC NH NJ NY P A RI SC TN TX VA VT WV Alliances With: An internal affiliate and some other vendors that vary by state.

H. R. Keller & Company, Inc. 1520 Sheridan Dr., Buffalo, NY 14217 Phone: 716-874-1644 Fax: 716-874-4920 Email: rmartin@kellerandco.com Website: www.kellerandco.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies Brokered Business: Accepted States Entered in: NJ NY PA Carriers Represented: Various Hamond Safety Management, LLC 1983 Marcus Ave., Lake Success, NY 11042 Phone: 516-488-2800 Fax: 516-488-2167 Email: rmege@hamondgroup.com Website: www.hamondgroup.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $10,000 Brokered Business: Accepted States Entered in: NY HULL & Company, Inc. – Horsham 2 Walnut Grove Dr., Horsham, PA 19044 Phone: 215-443-3500 Fax: 215-443-3502 Email: info@DVUA.com Website: www.DVUA.com Markets Offered: Excess Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $25,000 Brokered Business: Accepted States Entered in: DE MD NY OH PA WV Carriers Represented: ERC, Midwest Employers, CNA, Republic Western, ACE, AIG ICW Group 11455 El Camino Real, San Diego, CA 92130 Phone: 858-350-2400 Fax: 858-350-2616 Email: marketing@icwgroup.com Website: www.icwgroup.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $25,000 Brokered Business: Not Accepted States Entered in: All States Indemnity Excess & Surplus Agency, Inc. 1500 NW Bethany Blvd., Ste. 235, Beaverton, OR 97006 Phone: 800-487-2442 Fax: 503-526-9700 Email: jimh@ies-xs.com Website: www.ies-xs.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $3,000 - $10,000 depending on state & class Brokered Business: Not Accepted States Entered in: AZ CA CO CT FL HI ID NV OR TX WA Carriers Represented: Member companies of AIU Holdings

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Independent Brokers & Agents of the West (IBA West) 7041 Koll Center Pkwy, Ste. 290, Pleasanton, CA 94566 Phone: 800-772-8998 Fax: 818-888-1757 Email: info@ibawest.com Website: www.ibawest.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: CA Insential, Inc. 5601 Granite Pkwy, Ste. 240, Plano, TX 75024 Phone: 888-571-6160 Fax: 630-990-9098 Email: contact@insential.com Website: www.insential.com Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: AmTrust, Amerisafe, CNA, Safeco, Gateway, Chubb Custom

Insurex 2621 Denver St., Ste. C, San Diego, CA 92110 Phone: 877-467-8739 Fax: 619-229-7771 Email: dan@insurex.com Website: www.insurex.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: AZ CA CO ID NM NV OR UT W A Carriers Represented: 10 National Carriers

Insurisk Excess & Surplus

1500 Riverfront Dr., Little Rock, AR 72203 Phone: 501- 660-7127 Fax: 501- 748-3970 Email: stephaniereilly@insurisk.com Website: www.insurisk.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 – most classes Brokered Business: Accepted States Entered in: All States Carriers Represented: AIG, ACE, Hartford, Berkley Net Underwriters, AmTrust Insurisk is a NO FEE Workers Compensation wholesaler, with over 9 available standard carriers, all “A” rated. We have the experience and knowledge of the current Workers Compensation marketplace to assist you in receiving the most competitive quote for your clients. stephaniereilly@insurisk.com

Irving Weber Associates, Inc. 761 Koehler Ave., Ronkonkoma, NY 11779 Phone: 800-243-1811 Fax: 888-622-0414 Email: Mail@iwains.com Website: www.iwains.com Markets Offered: Workers’ Comp, WC Safety Group for the Business Products Industry Phone Inquiries: Accepted Minimum Premium: $2,000 Brokered Business: Accepted States Entered in: NY Carriers Represented: The New York State Insurance Fund Irving Weber Associates, Inc. 761 Koehler Ave., Ronkonkoma, NY 11779 Phone: 800-243-1811 Fax: 888-622-0414 Email: mail@iwains.com Website: www.iwains.com Markets Offered: Workers’ Comp, WC Safety Group for the Fabricare Industry Phone Inquiries: Accepted Minimum Premium: $2,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Great Central Insurance Company (A Excellent, Admitted) Irwin Siegel Agency, Inc. 25 Lake Louise Marie Rd., Rock Hill, NY 12775 Phone: 800-622-8272 Fax: 845-796-3661 Email: siegel@siegelagency.com Website: www.siegelagency.com Markets Offered: Workers’ Comp for Social Service Risk Packages Phone Inquiries: Accepted Minimum Premium: $10,000 Brokered Business: Not Accepted States Entered in: All States except New Jersey Carriers Represented: AIG iSurity, Inc. P.O. Box 6455, High Point, NC 27262 Phone: 800-869-3999 Fax: 336-869-7070 Email: underwriting@isurity.com Website: www.isurity.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,250 Brokered Business: Accepted States Entered in: FL GA KY LA MI MS NC OK SC TN VA WV Carriers Represented: AIG, ACE, NCME Izzo Insurance Services, Inc. 7234 W North Ave., Elmwood Park, IL 60707 Phone: 800-800-1704 Fax: 708-452-1777 Email: Info@IzzoInsurance.com Website: www.IzzoInsurance.com Markets Offered: Workers’ Comp for most class codes and experience mods Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Ace, AIG, AmTrust, Arch, CNA, Employers, Fireman’s Fund, Great American, Hanover, Hartford, Meadowbrook, Ohio Casualty, PEI, Rochdale, Technology, Travelers, Zenith, and Zurich

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2009 Workers’ Compensation Directory J.W. Terrill Inc. 825 Maryville Centre Dr., St. Louis, MO 63017 Phone: 314-594-2622 Email: dniedringhaus@jwterrill.com Website: www.jwterrill.com Markets Offered: Excess Workers’ Comp For Self Insured Entities & Group Captives Phone Inquiries: Accepted Minimum Premium: $100,000 Brokered Business: Accepted States Entered in: All States

Majestic Insurance 101 California St., 22nd Fl, San Francisco, CA 94111 Phone: 800-216-7770 Fax: 415-777-5997 Email: marketing@majesticinsurance.com Website: www.majesticinsurance.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $35,000 Brokered Business: Accepted States Entered in: AK AZ CA FL HI NJ NV NY OR

KF&B, Inc. 425 W Broadway, Ste. 408, Glendale, CA 91204 Phone: 818-242-5100 Fax: 818-242-6800 Email: rschwarz@kfbins.com Website: www.kfbins.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $7,500 Brokered Business: Not Accepted States Entered in: Most States

MarketScout 12700 Park Central Dr., Ste. 300, Dallas, TX 75251 Phone: 972-934-4200 Fax: 972-934-4299 Email: contactus@marketscout.com Website: www.marketscout.com Markets Offered: Workers’ Comp, USL&H Phone Inquiries: Accepted Minimum Premium: $2,000 Brokered Business: Not Accepted States Entered in: Most States Carriers Represented: Multiple A rated National and Regional Specialty Carriers

KZ Insurance Brokerage, LLC 2007-B Opportunity Dr., Ste. 12, Roseville, CA 95678 Phone: 916-781-6000 Fax: 916-783-5950 Email: info@kzib.com Website: www.kzib.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $350 Brokered Business: Accepted States Entered in: AZ CA CO LA NV TN Carriers Represented: Oak River, Cypress, Republic, Zenith, Hartford, OneBeacon, Travelers Lemac & Assoc, a Div of Risk Placement Svcs, Inc. 5670 Wilshire Blvd., Ste. 1200, Los Angeles, CA 90036 Phone: 323-857-9400 Fax: 323-857-9600 Email: marketing@lemacassociates.com Website: www.lemacassociates.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $25,000 Brokered Business: Accepted States Entered in: CA Carriers Represented: Zenith Ins. Co., Everest National, AIG, Majestic Ins. Co., Redwood Fire & Casualty, Sirius America, State Compensation Fund, U.S. Fire, Delos Ins. Co., Zurich, Tower Select, Insurance Co. of the West, Redwood LIG Marine Managers 9600 Koger Blvd., Ste. 225, St. Petersburg, FL 33702 Phone: 727-578-2800 Fax: 727-578-9977 Email: KLT@LIGMarine.com Website: www.LIGMarine.com Markets Offered: USL&H (Longshore), Workers’ Comp, MEL Phone Inquiries: Accepted Minimum Premium: $5,000 when submitted online Brokered Business: Accepted States Entered in: All States Carriers Represented: Various LowRateWorkComp 225 Main St., Destin, FL 32541 Phone: 850-625-5190 Fax: 888-625-2628 Email: gotcomp@yahoo.com Website: www.LowRateWorkComp.com Markets Offered: Health Insurance, USL&H, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $20,800 Brokered Business: Accepted States Entered in: Most States

McClelland and Hine, Inc. P.O. Box 700930, San Antonio, TX 78270 Phone: 210-366-2500 ; Fax: 210-293-6318 Email: amicia@mhi-tx.com Website: www.mhi-tx.com Markets Offered: Medical/Accidental Death, Occupational Accident, Workers’ Comp, EL, EPLI Phone Inquiries: Accepted (On-Line Quoting Avail) Minimum Premium: $500 Brokered Business: Accepted States Entered in: TX Carriers Represented: AIG, Rochdale, Travelers, Zurich, Texas Builders, Zenith

Meadowbrook Insurance Group 26255 American Dr., Southfield, MI 48034 Phone: 248-358-1100 Fax: 248-358-1614 Email: pgajewski@meadowbrook.com Website: www.meadowbrook.com Markets Offered: Excess Workers’ Comp, Specialty/Niche Programs, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies by Program Brokered Business: Yes; Varies by Program States Entered in: Most States Carriers Represented: Star Insurance Co., Williamsburg National Insurance Co., Ameritrust Insurance Corp.

MEMIC Group

1750 Elm St., Manchester, NH 03105 Phone: 866-636-4292 Fax: 603-695-6608 Email: mbourque@memic.com Website: www.memic.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $10,000 Brokered Business: Not Accepted States Entered in: Most States

Mid Atlantic Insurance Services, Inc. 1912 E Broad St., Richmond, VA 23223 Phone: 888-300-4720 Fax: 804-377-1169 Email: contact@midatlanticinsuranceservices.com Website: www.midatlanticinsuranceservices.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: AL AZ CO DE FL GA IL MD MI NC NJ NM OH PA SC TN VA WV Carriers Represented: AIG, ACE, Berkley, Hartford, Technology and more.

Midlands Management Corporation P.O. Box 22778, Oklahoma City, OK 73123 Phone: 405-840-0074 Fax: 405-840-5432 Website: www.midlandsmgt.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $None Brokered Business: Accepted States Entered in: Most States Carriers Represented: AM Best “A” Rated Carriers Midlands Management Corporation P.O. Box 22778, Oklahoma City, OK 73123 Phone: 405-840-0074 Fax: 405-840-5432 Website: www.midlandsmgt.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $3,500 Brokered Business: Accepted States Entered in: KS MS OK Carriers Represented: AM Best “A” Rated Carriers Midlands Management of Texas, Inc. P.O. Box 794878, Dallas, TX 75379 Phone: 972-588-2000 Fax: 972-588-2020 Website: www.midlandsmgt.com Markets Offered: Statutory WC WX EL Phone Inquiries: Not Accepted Minimum Premium: $Varies Brokered Business: Accepted States Entered in: All States Carriers Represented: AM Best “A” Rated Carriers Midlands Management of Texas, Inc. P.O. Box 794878, Dallas, TX 75379 Phone: 972-588-2000 Fax: 972-588-2020 Website: www.midlandsmgt.com Markets Offered: Non-subscriber - Excess Employers’ Liability / Texas Non-Subscriber - Occ. Acc. Phone Inquiries: Not Accepted Minimum Premium: $Varies Brokered Business: Accepted States Entered in: TX Carriers Represented: AM Best “A” Rated Carriers Midwest Employers Casualty Company 14755 N Outer 40 Dr., Ste. 300, Chesterfield, MO 63017 Phone: 636-449-7000 Fax: 636-449-7199 Email: rlunceford@mwecc.com Website: www.mwecc.com Markets Offered: Excess Workers' Comp, Large Deductible, Reinsurance, Self-Insured Bonds Phone Inquiries: Accepted Minimum Premium: $N/A Brokered Business: Accepted States Entered in: All States

Specialists in workers' compensation. Our unique approach provides policyholders with a safety consultant and other services that will help them to improve their safety record, leading to sustainable savings over the long run.

N30 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

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2009 Workers’ Compensation Directory NAS Insurance Services, Inc. 16501 Ventura Blvd., Ste. 200, Encino, CA 91436 Phone: (818) 382-2030 Fax: (818) 382-2040 Email: general@nasinsurance.com Website: www.nasinsurance.com Markets Offered: Workers’ Comp Gap Coverage Phone Inquiries: Accepted Minimum Premium: $1,500 Brokered Business: Accepted States Entered in: All States except IL Networked Insurance Agents 988 McCourtney Rd., Grass Valley, CA 95949 Phone: 530- 274-6922 Fax: 530- 274-2562 Email: regina.nunes@networkedins.com Website: www.networkedins.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: CA CO ID NM NV OR TX UT W A New York Compensation Managers, Inc. 6250 South Bay Rd., Cicero, NY 13039 Phone: 315-699-8475 Fax: 315-699-1438 Email: marketing@workerscomp.com Website: www.workerscomp.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: NY Northern Ohio E & S Agency, Inc. 5800 Monroe St., Bldg A, Sylvania, OH 43560 Phone: 419-885-2400 Fax: 419-885-7285 Email: ohioeands@buckeye-express.com Website: www.ohioeands.com Markets Offered: Excess Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: OH Carriers Represented: Safety National Alliance With: Safety National Northern Star Insurance Agency, LLC 1717 W Orangewood Ave., Ste. E, Orange, CA 92868 Phone: 877-667-7820 Fax: 714-938-0014 Email: cbitterlich@northernstarins.com Website: www.northernstarins.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $750 Brokered Business: Accepted States Entered in: Most States Carriers Represented: ACE, AIG, Crum & Forster, Everest, Guarantee, OneBeacon, SUA, Tower, CNA, Travelers Northwest Insurance Agency, Inc. 1750C Northpoint Pkwy, Santa Rosa, CA 95407 Phone: 888-693-7892 Fax: 866-577-7595 Email: dzeni@nwinsure.com Website: www.nwcinsure.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $200 Brokered Business: Accepted States Entered in: All States Carriers Represented: Everest National, AIG, Zenith, Employers Insurance, Hartford, Travelers, & many others.

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Oak Creek Insurance Services 1 E Northwest Hwy, Palatine, IL 60067 Phone: 847-705-4910 Fax: 847-705-4985 Email: Azawadzki@Oakcreekins.com Website: www.oakcreekins.com Markets Offered: PEO Bundle, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $750 Brokered Business: Accepted States Entered in: AL AR IL IN KS KY LA MO MS NC NJ NV OK TN WI Carriers Represented: Amtrust Group, AIG, ACE, GE, Hartford & St. Paul / Travelers

Pacific Excess Insurance Marketing A Division of UCA General Insurance 6363 Katella Ave., Cypress, CA 90630 Phone: (714) 228-7888; Fax: (714) 228-7899 Email: EAmador@pacificexcess.com Website: www.pacificexcess.com Markets Offered: Workers’ Comp, All Property & Casualty Risks Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: CA AZ NV Carriers Represented: The Zenith, Tower Select, Republic Indemnity, Delos Paradigm Risk Solutions, Inc. P.O. Box 152311, Arlington , TX 76015 Phone: (800) 799-7089 ; Fax: (817) 696-9118 Email: paradigmsolutions@sbcglobal.net Website: www.paradigmrisksolutions.com Markets Offered: Workers’ Comp, Health Insurance, Occ. Acc. / Comm. Auto / GL / Physical Damage / NTL, Truckers Occ. Acc Phone Inquiries: Accepted Minimum Premium: $1 Brokered Business: Accepted States Entered in: All States Carriers Represented: Variety Paragon Business Services, Inc. 7610 Stemmons Fwy, Ste. 600, Dallas, TX 75247 Phone: 214-884-2041 Fax: 214-951-1920 Email: cgarnham@paragon-pbs.com Website: www.paragon-pbs.com Markets Offered: Health Insurance, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: All States PMC Insurance Group 50 Cabot St., Needham, MA 02492 Phone: 781-449-7744 Fax: 781-449-7889 Email: info@pmcinsurance.com Website: www.pmcinsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $3,500 Brokered Business: Accepted States Entered in: All States except for monopolistic Carriers Represented: AIG, ACE, Crum & Forster and AMTrust

PRM Insurance Services, Inc. 6970 Destiny Dr., Rocklin, CA 95677 Phone: 877-579-1500; Fax: 877-579-1600 Email: prm@prminsurance.com Website: www.prminsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $10,000 Brokered Business: Accepted States Entered in: AZ CA NV OR Carriers Represented: SeaBright Insurance, Majestic Ins. Co., Delos Ins. Co. (CA only), PMA Insurance (CA only) Ramsgate Insurance 250 E Park Ave., Lake Wales, FL 33853 Phone: 800-394-2767 Fax: 888-335-8862 Email: Comp@RamsgateInsurance.com Website: www. RamsgateInsurance.com Markets Offered: Workers’ Comp, 24 Hour Policy Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, AIG, Aequicap, AmTrust, Guarantee, Hartford, Liberty Agency Underwriters, Travelers, Ullico Renaissance Plan for Workers' Compensation 981 Worcester St., Wellesley, MA 02482 Phone: 800-514-2667 Fax: 781-413-0222 Email: susan.reilly@renaissanceins.com Website: www.renaissanceins.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: CT MA ME NH RI VT Carriers Represented: Star & Savers Alliance With: Lynch Ryan & Associates Risk Placement Services, Inc. Two Pierce Place, Itasca, IL 60143 Phone: 630-285-3663 Fax: 630-285-4020 Email: George_Tarulis@rpsins.com Website: www.rpsins.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, AIG, CNA, Hartford, Safeco & Zurich Risk Reducers a Division of Swett & Crawford P.O. Box 1025, 10600 Train Station Dr. Mabelvale, AR 72103 Phone: 800-489-7475 Fax: 501-455-3975 Email: Rick.Spivey@riskreducers.com; Debbie.Oliver@riskreducers.com Website: www.riskreducers.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: All States except monopolistic Carriers Represented: ACE, AIG, Amerisafe, AmTrust, Berkshire Hathaway, Crum & Forster, Guarantee Ins. Co.,Hartford, Swiss Re, and Zurich

May 18, 2009 INSURANCE JOURNAL-NATIONAL REGION | N31

2009 Workers’ Compensation Directory Risk Transfer Programs, LLC 219 E Livingston St., Orlando, FL 32801 Phone: 407-481-9363 Fax: 407-481-9969 Email: rkirsch@risktransferprograms.com Website: www. risktransferprograms.com Markets Offered: Workers’ Comp for PEO & Temp Staffing firms Phone Inquiries: Accepted Minimum Premium: $Varies by program Brokered Business: Accepted States Entered in: National coverage, varies by program Carriers Represented: SUA, Work First, AmTrust

RoamNet Insurance Marketing Programs

3333 E Concourse, Bldg 9-200, Ontario, CA 91764 Phone: 877-272-0333 Fax: 909-987-2245 Email: anthonya@arainsurance.com Website: www.roamnetins.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1500 Brokered Business: Accepted States Entered in: AZ CA CO NM NV OR UT W A Carriers Represented: Safeco, One Beacon, Republic, Travelers, EIG, Hartford, Golden Eagle RPS Cambridge, MD / CCBsure 204 Cedar St., Cambridge, MD 21613 Phone: 800-336-5659 Fax: 410-901-0878 Email: info@CCBsure.com Website: www.CCBsure.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Per States Brokered Business: Accepted States Entered in: All States Carriers Represented: Great American, One Beacon, Chubb, Travelers, Hartford, CNA Alliance With: MGA for Great American

Russell Bond & Co., Inc. 295 Main St., Ste. 866, Buffalo, NY 14203 Phone: 800-333-7226 Fax: 800-677-6779 Email: info@russellbond.com Website: www.russellbond.com Markets Offered: Excess Employers Liability for Municipalities (NY Only), Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: CT MA NJ NY P A VA VT Carriers Represented: Rochdale, AIG, ACE, Tower WC; Mid West, Arch, Safety National - Excess WC S.H. Smith & Company, Inc. (Hartford) 20 Church St., Ste. 1500, Hartford, CT 06103 Phone: 860-656-1204 Fax: 860-656-1104 Email: Cynthia_Bruce@shsmith.com Website: www.shsmith.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,500 Brokered Business: Not Accepted States Entered in: Most States Carriers Represented: AIG, ACE

SeaBright Insurance Company

1501 4th Ave., Ste. 2600, Seattle, WA 98101 Phone: 206-269-8500 Fax: 206-269-8912 Email: dean.rappleye@sbic.com Website: www.sbic.com Markets Offered: ADR, MEL, USL&H, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $100,000 Brokered Business: Not Accepted States Entered in: Most States Alliance With: AGC of California, IMPACT Specialty Workers' Compensation insurer serving construction, energy, maritime and other niche industries.

Self-Funded Alternatives 1700 Wheeler Way, Ste. 200, Newtown, PA 19047 Phone: 215-860-7444 Fax: 215-860-3709 Email: SFAinfo@self-fundedalternatives.com Website: www.self-fundedalternatives.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Majority of the Market Self-Funded Alternatives of Nevada, LLC 500 N Rainbow, Ste. 300, Las Vegas, NV 89107 Phone: 702-740-8470 Fax: 702-740-8472 Email: ddsfanv@aol.com Website: www.self-fundedalternatives.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: AK AR AZ CA CT DE FL GA ID IL KY LA MA MD MS MT NC NJ NM NV NY OH PA UT WA Carriers Represented: All Excess Workers’ Comp Carriers Service Lloyds Insurance Company 6907 Capital of Texas Hwy N, Austin, TX 78731 Phone: 800-299-6977 Fax: 512-485-2690 Email: wcmarketing@service-ins-group.com Website: www.service-ins-group.com Markets Offered: Non-Subscription, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: TX Smith, Bell & Thompson 40 Main St., Ste. 500, Burlington, VT 05401 Phone: 802-658-4600 Fax: 802-658-6191 Email: info@sbtinsurance.com Website: www.sbtinsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $3,500 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Various

N32 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

Sports & Fitness Insurance Corporation 214 Key Dr., Ste. 2000, Madison, MS 39110 Phone: 800-844-0536 Fax: 601-853-6141 Email: askus@sportsfitness.com Website: www.sportsfitness.com Markets Offered: Health Ins, HMO, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies Brokered Business: Accepted States Entered in: All States Carriers Represented: Safeco, Hartford Superior Access Insurance Services 5 Oldfield, Irvine, CA 92618 Phone: 800-272-7550 Fax: 888-272-7550 Email: marketing@superioraccess.com Website: www.superioraccess.com Markets Offered: Workers' Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: AIG, Hartford, Zenith, ACE, Safeco, Travelers, AmTrust, OneBeacon & Zurich

Swett & Crawford (Minneapolis)

109 S 7th St., Ste. 600, Minneapolis, MN 55402 Phone: 612-333-0361 Fax: 612-333-3666 Email: ron_boudreaux@swett.com Website: www.swett.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: AIG, Crum & Forster, AmTrust, Chubb, Zurich, Ace Exceptional access to more than 200 standard and specialty carriers, domestic and foreign.

Many in-house binding authorities. Innovative, exclusive insurance programs for niche businesses and industries. Nearly 800 brokers, underwriters and support professionals.

Swett & Crawford (Dallas) 14643 Dallas Pkwy, Ste. 400, Dallas, TX 75254 Phone: 214-747-1200 ; Fax: 214-672-2700 Email: sharla_martin@swett.com Website: www.swett.com Markets Offered: Workers' Comp, Construction & Oil & Gas Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: AR NM OK TX Carriers Represented: Zenith Insurance Company Swett & Crawford (Folsom) 2330 E Bidwell St., Ste. 204, Folsom, CA 95630 Phone: 916-984-2340 ; Fax: 916-984-2358 Email: wendy_gable@swett.com; negin_johnson@swett.com Website: www.swett.com Markets Offered: Workers' Comp, Excess Workers' Comp, USL&H Phone Inquiries: Accepted Minimum Premium: $1,500 Brokered Business: Accepted States Entered in: Most States, with focus on AK CA HI NV Carriers Represented: AIG, Praetorian, Crum+ Forster, Safety National, Midwest Employers.

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2009 Workers’ Compensation Directory Swett & Crawford (Fresno) 8356 N Fresno, Ste. 210, Fresno, CA 93755 Phone: 559-261-3300 ; Fax: 559-261-3301 Email: wendy_gable@swett.com Website: www.swett.com Markets Offered: Workers' Comp, Excess Workers' Comp, USL&H Phone Inquiries: Accepted Minimum Premium: $1,500 Brokered Business: Accepted States Entered in: Most States, with focus on AK CA HI NV Carriers Represented: AIG, Praetorian, Crum + Forster, Safety National, Midwest Employers.

Swett & Crawford (Irvine) 17901 Von Karman, Ste. 400, Irvine, CA 92614 Phone: 949-477-2050 Fax: 949-477-2040 Email: john_fosdick@swett.com Website: www.swett.com Markets Offered: Workers' Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Not Accepted States Entered in: All States Carriers Represented: Granite States, AIG, Praetorian, Delios Swett & Crawford (Michigan) 1760 S Telegraph Rd., Ste. 200 Bloomfield Hills, MI 48390 Phone: 248-451-3042 Fax: 248-451-3031 Email: ron_gaiser@swett.com Website: www.swett.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $Varies by State Brokered Business: Not Accepted States Entered in: Most States Carriers Represented: AIG Swiss Re 5200 Metcalf Ave., Overland Park, KS 66202 Phone: 866-535-6412 ; Fax: 469-499-2304 Email: cybercomp@csc.com Website: www.cybercomp.com Markets Offered: Workers’ Comp, Managed Care, Payroll Bureau, Pay-As-You-Go Phone Inquiries: Not Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: AR AZ CO CT GA IA IL IN KS MN MO MS NC NE NM NV OK P A TN TX VA WI Alliance With: First Health

Tangram Insurance Services

101 2nd St., Ste. 100, Petaluma, CA 94952 Phone: 800-676-2213 x 100 Fax: 707-781-7351 Email: rbinford@tangramins.com; jshea@tangramins.com Website: www.tangramins.com Markets Offered: Workers Comp for Nonprofits Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: CA IA IL IN MO MS Carriers Represented: Everest National Target Marketing Ins. Services, Inc. 1925 Village Center Cir., Ste. 150, Las Vegas, NV 89134 Phone: 702-588-5300 ; Fax: 702-588-5310 Email: mkiger@tmi-group.com Website: www.tmi-group.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: AL AZ CA CO FL GA MS NV OR TN Carriers Represented: Ulico, Employers, OneBeacon

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Tejas American General Agency 1620 La Jaita Dr., Ste. 300, Cedar Park, TX 78613 Phone: 888-999-8242 Fax: 512-342-2803 Email: submissions@taga1.com Website: www.taga1.com/WorkersCompensation.htm Markets Offered: Workers’ Comp, Non-Subscriber Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: Most States Carriers Represented: AIG, Employers, Hanover, Hartford, Meadowbrook, Rochdale, Service Lloyd’s

The Combined Group (CIA) P.O. Box 819045, Dallas, TX 75381-9045 Phone: 800-275-3193 Fax: 800-275-3194 Email: bstock@combinedgroup.com Website: www.combinedgroup.com Markets Offered: Excess WC, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: Most States Carriers Represented: Hartford, Travelers, Zenith , Amerisafe, Employers Comp, Crum & Forster

Texas Association of Manufacturers Workers’ Comp Purchasing Group 304 W 13th St., Austin, TX 78701 Phone: 512-906-2000 ; Fax: 512-472-3859 Email: Stacy.Looney@TAMWorkersComp.com Website: www.TAMWorkersComp.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $0 Brokered Business: Accepted States Entered in: TX Carriers Represented: Texas Mutual Insurance Co.

The Hamilton Wharton Group, Inc. 110 Wall St., 11th Fl, New York, NY 10005 Phone: 212-344-6000 Fax: 212-344-0007 Email: wtaylor@hamiltonwharton.com Website: www.hamiltonwharton.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $30,000 Brokered Business: Accepted States Entered in: NY Carriers Represented: NY State Insurance Fund – Safety Group 580

Workers’ Comp discount program for TX manufacturers. Program is underwritten by Texas Mutual Insurance Company. Participants can receive an 11 % premium discount up front and could possibly qualify for two different types of Texas Mutual dividends.

Texas Mutual Insurance Co. 6210 E Highway 290, Austin, TX 78723 Phone: 800-859-5995 ; Fax: 512-224-8585 Email: information@texasmutual.com Website: www.texasmutual.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $N/A Brokered Business: Accepted States Entered in: TX Texas Oil & Gas Association Workers' Comp Purchasing Group 304 W 13th St., Austin, TX 78701 Phone: 512-478-6631 ; Fax: 512-472-3859 Email: jsierra@txoga.org Website: www.txoga.org Markets Offered: Oil & Gas Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $0 Brokered Business: Accepted States Entered in: TX Carriers Represented: Texas Mutual Insurance Company

The Maplewood Group, Ltd. 643 Stublyn Rd., Granville, OH 43023 Phone: 740-321-1137 Fax: 775-330-1583 Email: submissions@themaplewoodgroup.com Website: www.themaplewoodgroup.com Markets Offered: 24 Hour Policy, Excess WC , Loss Sensitive & Pay As You Go, USL&H, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $50,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: SUA, LUA, AIG, ACE, PMA, SeaBright, Guarantee, WorkFirst, AmTrust

The Mechanic Group, Inc.

The American Equity Underwriters, Inc. RSA Battle House Tower, 32nd Fl, 11 N Water St. Mobile, AL 36602 Phone: 866-238-8754 Fax: 251-690-4299 Email: info@amequity.com Website: www.amequity.com Markets Offered: Excess Workers’ Comp, Workers’ Comp, USL&H Phone Inquiries: Accepted Minimum Premium: $9,125 Brokered Business: Accepted States Entered in: All States

One Blue Hill Plaza, Ste. 530, Pearl River, NY 10965 Phone: 845-735-0700 Fax: 845-735-8383 Email: mkatz@mechanicgroup.com Website: www.mechanicgroup.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 - $10,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, AIG, Magna Carta and The Hartford Insurance Programs, Brokerage and Risk Management for the Security Officer, Electronic Security-Alarm, Investigation and Background Screening Industries.

Trinity E&S Insurance Services, Inc. 79-301 Country Club Dr., Ste. 200 Bermuda Dunes, CA 92203 Phone: 760-360-4100 ; Fax: 760-360-0055 Email: mstith@trinityinsurance.com Website: www.trinityinsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Not Accepted Minimum Premium: $ 750 Brokered Business: Not Accepted States Entered in: CA Carriers Represented: Tower Select

May 18, 2009 INSURANCE JOURNAL-NATIONAL REGION | N33

2009 Workers’ Compensation Directory

Tryton Insurance Group, LLC

Western Maritime

3131 Eastside, Ste. 600, Houston, TX 77098 Phone: 713-351-8237 Fax: 877-222-0362 Email: ylee@trytoninsurance.com Website: www.trytoninsurance.com Markets Offered: USL&H, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Not Accepted States Entered in: NJ Carriers Represented: Hartford, Travelers, Safeco / AmericFirst, Zenith, AIG, Zurich, CNA, OneBeacon

4226 Coronado Ave., Stockton, CA 95204 Phone: 209-466-1413 Fax: 209-466-0260 Email: info@aquapac.com Website: www.westmaritime.com Markets Offered: Excess Workers’ Comp, Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,500 Brokered Business: Accepted States Entered in: CA Carriers Represented: Zenith

Tryton Insurance Group is an MGA specializing in standard markets. We offer our service with No fees, No premium Commitment, and an experienced and dedicated staff ready to write your next Work Comp account.

Full service wholesale provider for recreational & commercial marine products. We invite you to join our family of over 2,500 agents & brokers now appointed with our office. You’ll have access to exclusive insurance products written through various “A” rated carriers. With our products you are afforded more flexibility, quicker quote turnaround & claims handling right here in our office.

U.S. Risk Brokers 11200 Richmond Ave., Ste. 600, Houston, TX 77082 Phone: 281-249-4926 Fax: 281-679-9226 Email: theresad@usrisk.com ; brendand@usrisk.com Website: www.usrisk.com Markets Offered: Work Comp - State & USL&H Phone Inquiries: Accepted Minimum Premium: $3,500 for State - $10,000 for USL&H Brokered Business: Accepted States Entered in: AK AL CT CO GA IA IL KY LA MA MO MS NC NE NH NM NY OR OK P A SC TN TX UT VA Carriers Represented: AIG, Zenith Unisource Program Administrators 3665 Bee Ridge Rd., Ste. 214, Sarasota, FL 34233 Phone: 941-378-7002 Fax: 941-309-7600 Email: Carol.Gonzalez@UnisourcePA.com Website: www.UnisourcePA.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $10,000 Brokered Business: Accepted States Entered in: All States except ND OH W A WY Carriers Represented: AIU, Zurich, Amerisafe USX/S 6929 W 130th St., Ste. 100, Cleveland, OH 44130 Phone: 800-574-8797 Fax: 440-888-7380 Email: brokers@usxs.net Website: www.USXS.net Markets Offered: Excess Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $15,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: Midwest Employers, AIG, Safety National

Venture Brokerage

1301 Wright’s Lane East, West Chester, PA 19380 Phone: 800-282-6247 x 278 Fax: 610-692-5977 Email: marketing@venturebrokerage.com Website: www.venturebrokerage.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $2,500 Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE Group, AmTrust, AleaNorth America, Chubb, GE, Hartford, USF-G

Western Pinnacle Insurance Services 600 W Shaw Ave., Ste. 400, Fresno, CA 93704 Phone: 559-221-2050 Fax: 559-225-2066 Email: fresno@ampinn.com Website: www.ampinn.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: AZ CA CO ID MT NM NV OR UT Carriers Represented: First Comp, AIG, Majestic, Republic, Tower, Everest National, Berkshire Hathaway & Alaska National

WIAA Insurance Services 11190 Sun Center Dr., Rancho Cordova, CA 95670 Phone: 916-443-4221 Fax: 916-554-3116 Email: wiaains@wiaagroup.org Website: www.wiaainsurance.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $1,000 Brokered Business: Accepted States Entered in: CA Carriers Represented: ACE, BHHC, AIG, Zurich, Hartford, CNA, Safeco, Travelers Woodus K. Humphrey & Co., Inc. 7600 Fern Ave., Bldg 500, Shreveport, LA 71105 Phone: 318-865-2454 Fax: 318-861-6937 Email: dick.chilvers@amwins.com Website: www.amwins.com Markets Offered: Workers’ Comp, Excess Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 - $3,000 (Varies by Class Code) Brokered Business: Accepted States Entered in: All States Carriers Represented: ACE, Amerisafe Wrap Up Insurance Solutions 16141 Swingley Ridge Rd., Chesterfield, MO 63017 Phone: 636-489-0185 Fax: 636-536-7473 Email: bbillhartz@trekadmin.com Website: www.trekadmin.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $150,000 Brokered Business: Accepted States Entered in: All States

Westrope 801 W 47th St., Ste. 500, Kansas City , MO 64112 Phone: 816-842-8222 Fax: 816-842-3081 Email: info@westrope.com Website: www.westrope.com Markets Offered: Workers’ Comp, Excess WC Phone Inquiries: Accepted Minimum Premium: $5,000 Brokered Business: Accepted States Entered in: All States Carriers Represented: 15 + Markets - Various Classes

Wholesale Brokerage & Insurance Services

2200 Harbor Blvd., Ste. C210, Costa Mesa, CA 92627 Phone: 877-270-7382 Fax: 949-270-7399 Email: submissions@wholesalebrokerins.com Website: www.wholesalebrokerins.com Markets Offered: Workers’ Comp Phone Inquiries: Accepted Minimum Premium: $500 Brokered Business: Accepted States Entered in: AZ CA NV Carriers Represented: AIG, Everest, Delos, Zurich, Travelers We will look at all Workers Comp risks!

Contractors, Manufacturers, Distributors, Retail, Office, etc. We have markets for lapse in coverage and high X-mods. In most cases, we are able to aggressively compete with any target premium.

N34 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

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Presented By Lorrie Thomas Lorrie is the principal of Web Marketing Therapy, a full-service web marketing agency that helps small businesses get BIG with strategic web marketing. She teaches Web Marketing Applications, Social Media Marketing and Search Engine Marketing Applications classes at UCSB Extension and UC Berkeley Extension.

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Idea Exchange Closing Quote

Amid Obstacles, Opportunities Exist Auerbach

By Kenneth Auerbach

Y

ou don’t need to get too deep into conversation these days to find out people are afraid. Given changes in business, the economy and government, many individuals believe they don’t know what or who to trust. These changes can actually work to the benefit of independent insurance agents and brokers.

The economic crisis we’ve faced in the past year or so is forcing attitude and paradigm shifts on a broad scale. The “bigger-is-better” mentality is being reevaluated by businesses, government and individuals. Institutions have crumbled, or nearly so. Firms that were once giants in industry and finance — automakers, banks, securities dealers — are downsizing and retooling the scale of their o wn operations.

Smaller, less diversified entities with conservative business plans appear to be more stable.

choices and more personalized services — in short, e verything that differentiates us from our competitors.

While the insurance business is taking a hit in this financial environment, it and Main Street agents are largely holding their own because of prudent management and sensible oversight. This provides our distribution system a unique opportunity. There is a lot of displa ced talent out there — talented and educated individuals who lost their jobs and who could well migrate to insurance sales. What better time is there for us to attract a great number of talented people?

Making Our Own Future While opportunities exist, so do hurdles. Perhaps the largest external challenge that could affect our success involves federal legislation. We always get frustrated when Washington does things slowly. What many of us find to be more frustrating and scary is w hen In today’s environWashington does something too quickly — like ment, the value of passing a stimulus package nobody has read or to revamp federal regulation for the personal relationships calling entire financial industry, without pausing to note soar. Nobody fosters the stability of the state-regulated insurance business. these better than We need to continually remind our policymakinsurance agents. ers that it’s the feds who failed in their oversight, not the states. As we’re focused on potential federal regulation and its effect, we must, at the same time, As some people pare back their levels of personal concontinue support for common-sense state-based reforms. sumption, they are often shifting where they do business.

Internally, we must position ourselves for success as indePeople are becoming more and more disenchanted with pendent agents and brokers. We need to do things like trim impersonal giants. Many people have lost faith in instituexpenses, maximize our use of technology and make our tions to make good on their promises just because they are marketing work amid the advertising clutter, particularly in big. When that faith is eroded, what do we do? We gravitate personal lines. This is no small task. It’ s something that is to that which we know — local businesses and people that difficult for all Main Street agents. can provide what we need.

To the extent we accomplish these things, we will continIn today’s environment, the value of personal relationue to reap the benefits that come from deliv ering focused, ships soars. Nobody fosters these better than insurance responsive service to local businesses and individuals with agents. And it doesn’t matter how big or small the operation whom we live and work. America is returning to Main happens to be.

Street — which is where we have always been. IJ Consumer interest is measured by what I call the “pointy tip of the spear”— the one or tw o people customers deal with. This equalizes entity size disparity. As an insurance Auerbach, principal of E&K Agency in Eatontown, N.J., also is president of the agent, agency principal or CSR, you are the one the cusNational Association of Professional Insurance Agents. This article is based tomer trusts in their daily dealings, whether you’re in a fivelargely on remarks Auerbach made to attendees at the AIMS Society PRO-toperson agency or 1,000-person agency.

PRO conference, which coincided with conferment exercises for those w ho Customers will increasingly demand more value, better earned the Certified Professional Insurance Agent (CPIA) industry designation.

N36 | INSURANCE JOURNAL-NATIONAL REGION May 18, 2009

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Joe Santini, Master Mechanic.

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©2007 Applied Underwriters, Inc. A Berkshire Hathaway Company.