Insurance Journal West 2016-05-02 by Insurance Journal

WEST REGION Lloyd’s Exec Hails E&S Sector Schwarzenegger And Hartwig Building in Oregon Flood Plains

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Contents May 2, 2016 • Vol. 94 No. 9 • West

West W1

Organized Crime Ring in California Busted for Auto Collision Fraud

Washington Workplace Deaths in 2015 Fell to Near-Historic Low

W1 ORGANIZED CRIME RING IN

CALIFORNIA BUSTED FOR AUTO COLLISION FRAUD

Closer Look: Lessons Learned for the Restaurant Industry

W4 Lloyd’s America Chief Says

E&S Sector ‘Best Kept Secret’ to Headline May Southern California Symposium

Idea Exchange 27

Academy Journal:

Christopher Boggs on Combinability of Insureds Tech Talk: Does Digital

Proficiency Affect an Agency’s Valuation?

Spotlight: 10 Things to Know

About Taxis, Limos & Fleets

Special Report: Employers Pay as 32% of Opioids Prescription Abused

W10 Schwarzenegger, Hartwig

10 Captives View Business Interruption as Top Cyber Threat 12

W2 Proposed Restrictions Building in Oregon’s Flood Plains

National

24 Special Report: Cutting into Healthy Workers’ Comp Market

12 LESSONS LEARNED FOR

32 2016 Workers’ Comp Directory

THE RESTAURANT INDUSTRY

42 THE COMPETITIVE ADVANTAGE

42 The Competitive Advantage: Chris Burand 44

How to Grow Your Agency One Call at a Time

46 Closing Quote: The Feds, the States and Self-Driving Cars

Departments W6

People

11 Declarations 11 Figures 16

Business Moves

20 MyNewMarkets 6 | INSURANCE JOURNAL | WEST MAY 2, 2016

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OPENING NOTE

Write the Editor: awells@insurancejournal.com

Getting Away with Unethical Conduct

T Publisher Mark Wells mwells@wellsmedia.com

EDITORIAL

SALES

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

Sales Manager Lauren Knapp (800) 897-9965 x161 lknapp@insurancejournal.com

East Editor Young Ha yha@insurancejournal.com

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Chief Content Officer Andrew Simpson asimpson@insurancejournal.com

South Central Editor/ Midwest Editor Stephanie K. Jones sjones@insurancejournal.com West Editor Don Jergler djergler@insurancejournal.com International Editor L.S. Howard lhoward@insurancejournal.com Columnists Christopher Boggs, Chris Burand, Tom Wetzel Contributing Writers Johnna McCooey, Hilary Rowen

IJ ACADEMY OF INSURANCE V.P. of Education Chris Boggs cboggs@ijacademy.com

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ADMINISTRATION

Chief Financial Officer Mark Wooster mwooster@wellsmedia.com

MARKETING

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

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CIRCULATION

Chief Marketing Officer Julie Tinney (800) 897-9965 x148 jtinney@insurancejournal.com

South Central Sales Mindy Trammell (800) 897-9965 x149 mtrammell@insurancejournal.com Southeast and East Sales (except for NY, PA and CT) Howard Simkin (800) 897-9965 x162 hsimkin@insurancejournal.com Midwest Sales Lisa Whalen (800) 897-9965 x180 lwhalen@insurancejournal.com East Sales (NY, PA and CT only) Dave Molchan (800) 897-9965 x145 dmolchan@insurancejournal.com Advertising Coordinator Erin Burns (619) 584-1100 x120 eburns@insurancejournal.com MyNewMarkets Sales Manager Kristine Honey khoney@insurancejournal.com Classifieds, Jobs, Agencies Wanted/For Sale Sr. Sales & Marketing Coordinator Kelly De La Mora (800) 897-9965 x125 kdelamora@insurancejournal.com

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

Circulation Manager Elizabeth Duffy eduffy@wellsmedia.com

ake that coworker who wastes time. He mismanages resources. He’s been known to engage in activities that others in the office consider conflicts of interest. Yet, he seems to “do no wrong” in the eyes of the company. Why? Because he’s producing. A new Baylor University study published in Personnel Psychology – “I Don’t Want to be Near You, Unless…: The Interactive Effect of Unethical Behavior and Performance onto Workplace Ostracism” – investigates why employees’ unethical behaviors may be tolerated versus rejected. “In this study, we’re asking the questions: When and why are people ostracized – or excluded from the group – while at work?” said the study’s lead author, Matthew J. Quade, Ph.D., assistant professor of management in Baylor’s Hankamer School of Business. “Our research contributes to an ongoing conversation regarding whether people’s competence is more important than morality within the context of organizations.” Researchers conducted a total of three studies and surveyed 1,040 people, including more than 300 pairs of supervisors and their employees. Study results show: • High job performance may provide a motivated reason to ignore moral violations. • Unethical people are more likely to be ostracized if they do not perform well. • These results exist regardless of gender. • These results exist regardless of the ethical culture of the organization. “Unethical, high-performing employees provide contrasting worth to the organization,” researchers wrote. “The employees’ unethical behaviors can be harmful, but their high job performance is also quite important to the organization’s success. In this vein, high job performance may offset unethical behavior enough to where the employee is less likely to be ostracized.” On the flip side, unethical, low-performing individuals do not fare as well. “Unethical, yet high-performing employees, their work groups, and their organizations may exist on a false foundation that has the FOR QUESTIONS REGARDING SUBSCRIPTIONS: potential to crumble and cost employees Call: 855-814-9547 their jobs and their organizations significant Outside the U.S., call 847-400-5951 or you may subscribe or change your address online at: amounts of money,” researchers said. insurancejournal.com/subscribe The study offered two suggestions: Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA • Make it clear that employees’ unethical 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 behaviors, regardless of performance, will per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this publication is derived from sources believed reliable and is subject not be tolerated. to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional • Provide a more functional way for employadvice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2016 Wells ees to respond to unethical employees. Media Group, Inc. All Rights Reserved. Content may not be photo-

‘High job performance may offset unethical behavior enough to where the employee is less likely to be ostracized.’

copied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc.

Andrea Wells Editor-in-Chief

8 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

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National Captives View Business Interruption as Top Cyber Threat: Aon Global Risk

he costs of business interruption due to a breach is the top cyber risk concern for businesses across all industries, according to a new survey of captives. Aon Global Risk Consulting, in its 2016 Captive Cyber Survey report, found that 95 percent of companies surveyed believe that the most important issue in cyber insurance is clear policy wording, and 75 percent of large companies have concerns about the loss adjustment process. Other findings from the report include: 61 percent of survey respondents buy cyber limits in the $10-25 million range, but overall 60 percent of large companies do not buy cyber insurance. Of those that do, 68 percent of companies surveyed buy cyber for balance sheet protection closely followed by ensuring due diligence comfort for the board. Only 25 percent of respondents that buy limits are confident that they comply with international best practices and standards for information security governance. Aon analysts said that while captives are aware of the growing threat of cyber attacks, they lag in assessing their own risk and insurance needs. “Our findings also indicate that there is a disparity between companies recognizing that cyber is one of the fastest growing and permeating risks, and actually understanding what their individual exposures and coverage needs are,” said Peter Mullen, chief executive officer of Aon Risk Solutions’ Aon Captive and Insurance Management practice, who spearheaded the report. Aon’s first cyber captive survey gathered

input from risk managers and directors from more than 125 captives.

10 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

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West

Organized Crime Ring in California Busted for Auto Collision Fraud

uan Ortiz Velazquez, 27, of San Jose, Calif., and owner of Carlos Auto Body, was arrested with seven other suspects in April and charged with multiple counts of felony insurance fraud for allegedly filing 20 fraudulent claims with four insurance companies for crashes that never occurred. The acts reportedly led to more than $140,000 in losses. A ninth suspect remains at large and is being sought. After receiving an anonymous tip and a suspected fraud referral from a victim insurer in 2012, the California Department of Insurance launched an investigation. Evidence revealed the alleged crimes, that led to the arrests INSURANCEJOURNAL.COM

and the discovery that a second body shop, Filo’s Auto Body, owned by Filomeno Arreguin Lucatero, was also involved in the fraud scheme. Detectives uncovered evidence that Velazquez allegedly paid his co-conspirators $500 each to allow him to damage their vehicles, submit claims to the insurance company, and collect payment from the insurers. Detectives also found evidence that Velazquez and Lucatero did not complete some work as it was ordered on damage estimates. This case is being prosecuted by the Santa Clara County District Attorney’s Office. Other suspects include: Jose Caro

Curiel, 46, Santa Clara; Melissa Duarte, 2, Hollister; Filomeno Arreguin Lucatero, 45; Milpitas; Angel Resendiz, 39, Gilroy; Manuel Resendiz, 40, Los Banos; Deisy Ramirez Robles, 27, San Jose; Lorenzo Robles Ramirez, 25, San Jose; Juan Ortiz Valezquez, 27, San Jose. “California is ground zero for staged auto collisions,” Insurance Commissioner Dave Jones said in a statement. “Organized crime rings are responsible for the majority of staged collisions, which are costly to insurers and consumers. The multi-agency Urban Grant Task Force is one of our most effective weapons in eradicating these crimes.” MAY 2, 2016 INSURANCE JOURNAL | WEST | 1

WEST | News & Markets

Washington Workplace Deaths Idaho Ski Park Developer Settles in 2015 Fell to Near-Historic Low with EPA over Asbestos Violation

orkplace deaths in Washington fell to a near-historic low in 2015, according to a Department of Labor & Industries report out in midApril. Last year there were 58 work-related deaths in the state, 18 fewer than in 2014, and L&I data shows only 2011 and 2013 had fewer work-related deaths reported (53 and 54, respectively). Workplace deaths in Washington have declined by roughly 3.5 percent a year since

2006, when 90 were recorded, according to L&I. “The decline in these numbers means more people avoided serious workplace incidents and were able to go home safe and healthy,” L&I Director Joel Sacks said in a statement. There were fewer fatalities in 2015 involving motor vehicles and machines. Falls continue to lead work-related deaths, accounting for 25 percent of the fatal incidents last year. That’s five more than the 10-year average and the highest number of fall-related deaths since 2006, according to the report. Farm workers, loggers and other workers in the agriculture, forestry, fishing and hunting sector accounted for 15 of the fatalities in 2015.

Boise, Idaho ski and snowboard park developer has agreed to pay the federal government $10,000 to settle a claim that it violated asbestos removal regulations. Gateway Parks LLC was accused of not giving the U.S. Environmental Protection Agency proper notice on plans to demolish asbestos-containing buildings. The EPA requires developers to notify government inspectors before demolition to ensure that all asbestos has been removed. Gateway Parks purchased the abandoned two-acre lot in 2014 and soon demolished several asbestos-contam-

inated buildings. The EPA then began investigating and ordered the developer in 2015 to clean up the asbestos-filled debris, which was estimated to cost the company more than $65,000. Gateway Parks owner Ryan Neptune said it was cheaper to settle with the EPA than to continue arguing with the federal government.

Proposed Restrictions Building in Oregon’s Flood Plains

uilding in flood zones is about to get harder across much of Oregon, due to new federal recommendations. The government published the recommendations, called a biological opinion, in response to a lawsuit from environmental groups. The Audubon Society of Portland, National Wildlife Federation, Northwest Environmental Defense Center and Association of Northwest Steelheaders had argued that federal flood insurance was encouraging development detrimental to threatened salmon. Will Stelle, regional administrator for the National Oceanic and Atmospheric

Administration, said the agency recommends FEMA make several efforts to change the flood insurance program. The biological opinion does not directly ban development in flood plains along salmon-bearing waterways. But there is a “no net loss” policy, requiring that developers or property owners mitigate any lost salmon habitat with new habitat. FEMA said that 251 Oregon communities have flood plain areas along salmon-bearing rivers and streams out of 271 communities with flood plains.

2 | INSURANCE JOURNAL | WEST MAY 2, 2016

Affected areas are up and down the coast, throughout the Willamette Valley, east to the Idaho border and into much of central Oregon. Some Oregon communities and leaders have expressed concern about the effect rules could have on property owners and potential development near salmon-bearing streams.

Environmental groups have signaled their support, and optimism that the changes to flood insurance could improve recovery efforts for threatened salmon and steelhead. The two agencies at the center of the changes, NOAA and FEMA, do not see eye-to-eye on all aspects of what about the federal flood insurance program should change. As NOAA regional administrator Will Stelle explained on a conference call the two agencies differ on the approaches to take.

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WEST | News & Markets

Lloyd’s America Chief Says E&S Sector ‘Best Kept Secret’ By Don Jergler

f insurance is the best kept secret in the business world, then the E&S sector is the best kept secret in the insurance industry. That’s according to Hank Watkins, president of Lloyd’s America, who talked fondly in mid-April about excess and surplus lines before a large gathering of business students and insurance executives in Southern California. Watkins was the guest speaker at E&S Day at Cal State University Fullerton’s Center for Insurance Studies, which is part of the Mihalylo College of Business and Economics. The Lloyd’s chief explained the industry and gave an E&S review and outlook for the benefit of students taking insurance-related courses at the school, which often hosts notable insurance executives for discussions and seminars. Watkins explained how the

E&S business insures risks that other insurers won’t, and then when the E&S sector proves those risks are insurable, or are a good business to be in, the rest of the industry moves in to offer products for those risks. “There’s enough challenging things that come around in our world that gives the E&S sector plenty to do,” Watkins added. He also called E&S a “surge tank” for the insurance industry, a role it plays when insurers pull out of a particular risky market and the E&S sector moves in. Autonomous vehicles, drones and ridesharing were among examples Watkins offered of emerging risks that the E&S sector took on first. The satellite industry is another business, one which Lloyd’s doesn’t shy away from, that Watkins talked about. “Every once in a while a sat-

4 | INSURANCE JOURNAL | WEST MAY 2, 2016

Hank Watkins, president of Lloyd’s America, talked about excess and surplus lines at E&S Day at Cal State University Fullerton’s Center for Insurance Studies, which is part of the Mihalylo College of Business and Economics. ellite goes straight up and back down, and that’s $350 million $400 million,” he said. “That’s a bad day.” Property insurance, where E&S is a big player in coastal communities like those in Florida and those along the Eastern Seaboard, can also be risky, he said. An example he used was the hit Lloyd’s took from Superstorm Sandy in 2012. “Lloyd’s alone had about $2.5 billion of that $25 billion loss,” he said. Of course, since Lloyd’s is noted for insuring stars, taste buds and athletes, Watkins also drew the students’ atten-

tion to some of the more interesting policies written, such as the a million-dollar-plus policy for recently retired Pittsburgh Steeler defender Troy Polamalu’s hair all the way back to Betty Grable’s legs. Watkins described E&S as a sector that will take on most risks, including modern and still little understood risks like cyber. However, he said he’s still unsure whether current modeling is adequate to accurately assess cyber risks, because the economic harm of such attacks may be vast and far-reaching. “I’m not convinced we’re there yet,” he said. “We have no idea what the downside is of cyber-attacks.” The underlying point of Watkins’ visit was of a recruiting nature, giving students an idea of the opportunities the business offers.

continued on page W8

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WEST | PEOPLE

Marc Schmittlein

Phoenix, Ariz.-based CopperPoint Mutual Insurance Co. named Marc E. Schmittlein president and chief executive officer. Schmittlein will replace President and CEO Donald A. Smith, Jr., who previously announced his plans to retire effective July 1 after 16 years as the company’s leader. Smith will continue to serve on CopperPoint’s board following his retirement. Schmittlein has more than 30 years of experience, most recently with The Travelers Cos. as president of its cyber business division, and previously as co-president of business insurance. He was previously president and CEO of the small commercial division. He’s also been in commercial divisions of St. Paul Companies and Aetna. CopperPoint is a provider of workers’ compensation insurance. Woodruff-Sawyer & Co. announced leadership changes in its Portland, Ore., office. Mike Bennison will transition his office leadership role to Brett Bauer and Kathy Prosser, who together will co-lead the office. Bauer will be the Oregon practice leader. Prosser becomes the Northwest benefits practice leader following various senior leadership positions in the employee benefits and healthcare industry. Bennison will continue to work with clients and serve in a senior leadership role. San Francisco, Calif.-based Woodruff-Sawyer has offices throughout California and in Oregon, Washington, Colorado, Hawaii and New England. Paragon Insurance Holdings LLC in California named Jill Bay-Weber president of its excess and surplus commercial business division. Bay-Weber has been responsible for the development and underwriting of many specialty programs over the last 20 years. She most recently held the position of senior vice-president in the commercial division at Atlas General Insurance Services. Paragon is a national multi-line specialty program manager. Bellevue, Wash.-based Ultra Risk Advisors named Karen McDonald underwriting director for its program providing liability coverage for senior living facilities. McDonald has more than 10 years of underwriting experience in the senior living sector. Ultra Risk Advisors is a commercial insurance program administrator and specialty wholesale broker.

6 | INSURANCE JOURNAL | WEST MAY 2, 2016

Irvine, Calif.-based Burnham Benefits Insurance Services Inc. has named Tricia McVeigh a senior

account manager. McVeigh will in the trucking, transportation and logistics sector. McVeigh has more than 30 years of experience. She previously was a senior analyst at Benefits Exchange Alliance, and prior to that she was with The LBL Group, Insurance & Financial Planning. Burnham Benefits also named Sara Corp a senior account manager. Corp will be located in the Sacramento, Calif., area. She has more than 15 years of experience in employee benefits. Corp was an account executive at Benefit & Risk Management Services prior to Burnham. She was an account manager at Benefit Mall and Valley Oaks Insurance before that. Burnham Benefits is an employee benefits consulting and brokerage firm. InterWest Insurance Services LLC has named Grant Rappleye to its employee benefits broker team in Sacramento, Calif. He was formerly a men’s assistant golf coach at California State University Sacramento. InterWest is an insurance brokerage with eight offices throughout the state. Workers’ Compensation Appeals Board Chairwoman Ronnie Caplane has retired. Caplane was appointed commissioner in 2003 by Gov. Gray Davis, reappointed in 2009 by Gov. Arnold Schwarzenegger, and named chair by Gov. Jerry Brown in 2011. During her tenure on the board, the California workers’ compensation laws underwent two major reforms. She joins Zenith Insurance Co. as a vice president following retirement. Walnut Creek, Calif.-based CSAA Insurance Group has named J. Paul McCaffrey Jr. its chief financial officer. McCaffrey has more than 25 years of experience. Most recently he was executive vice president, CFO and treasurer at Grange Insurance. McCaffrey was a senior manager with Ernst & Young prior to Grange Insurance. He previously held finance roles with International Total Services, Revco D.S., and Sherwin-Williams. CSAA Insurance Group is an AAA Insurer. INSURANCEJOURNAL.COM

WEST | News & Markets continued from page W4 He fielded a number of questions from students, which ranged from insuring wearable technology to drones to cyber risk. He relayed a personal parable after he was asked where he started. He began as an underwriting trainee at

Chubb, but it was a long road just to get to that point. He submitted his resume for an opening, was rejected, then called to find out why he was rejected, but his call was not returned. More calls were made, and more

calls went unreturned. So Watkins, then 21, donned a suit and went to the office, where his persistent nature was met with a welcome reception. “I was interviewed by just about everyone there,” he said. After his personal story, answering questions, and explaining more about how E&S and the industry in general works, Watkins went back to his pitch. “It’s a really cool industry,” he said.

‘There’s enough challenging things that come around in our world that gives the E&S sector plenty to do.’ “We’re very engaged with our communities.” E&S Day continued after Watkins’ talk. A panel and a round table discussion followed. Hank Haldeman, executive vice president and director with The Sullivan Group and president of the National Association of Professional Surplus Lines, moderated the panel. The panelists were Timothy Chaix, president of R.E. Chaix & Associates; Lori Hunter, executive vice president and Worldwide Facilities Inc.; Steve Cius, area president of Risk Placement Services Inc.; and Anthony Manzitto, chief operating officer and executive vice president of Topa Insurance Group. The panelists took over where Watkins left off and further explained the E&S industry, how it works, and why it is exciting — and sometimes risky Manzitto used as an example the mess in the Porter Ranch community of Los Angeles County, where the impacts are still being felt from the country’s largest ever accidental release of methane, which occurred over several months and sickened and displaced thousands of households. “That’s a gigantic loss where there is a going to be a number of E&S carriers involved,” Manzitto said. ABRAM16749.indd 1

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4/18/16 12:36 PM

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WEST | News & Markets

Schwarzenegger, Hartwig to Headline May Southern California Symposium Fullerton is being put on by the administration and professors of the Center ormer California Gov. Arnold for Insurance Studies, which is part of Schwarzenegger will headline an the Mihaylo College of Business and event this month at a Southern Economics at the university. Schwarzenegger will be feaCalifornia universitured in a moderated discussion. ty to benefit insurance students. Hartwig will deliver a keynote Schwarzenegger speech. will be joined by Weili Lu, the center’s director, said the event will bring those Robert Hartwig, in attendance up to speed on an economist future trends, such as what will and president happen in healthcare, the disrupof the Insurance tion of the auto insurance indusInformation try and emerging risks in an aging Institute, who could population. be making his final Former California Gov. Arnold “We thought that it was very stop in the region Schwarzenegger. important for us as educators to as the face of the Photo by Koch / MSC present this opportunity,” she said. property/casualty Some 350 people are expected to insurance industry. attend, including more than 100 stu Insurance Industry Trends 2020 and dents. Beyond on May 9 at Cal State University

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‘It’s probably the last opportunity for people out here to hear from him.’ Hartwig has long been the go-to voice on industry trends, so having him at the event was key, Lu said. “He’s a great economist,” she said. “We want him to talk about trends for the whole industry.” This could also be a final chance for people in Southern California to hear a man who has been the face of insurance industry since 2007. Hartwig in February announced he is leaving the helm of I.I.I this summer to join the faculty of the University of South Carolina’s Darla Moore School of Business. “It’s probably the last opportunity for people out here to hear from him,” Lu said. The event also includes a panel discussion with Chris Baggaley, senior vice president at the Automobile Club of Southern California, Ron Guerrier, chief information officer of Farmers Insurance Group, Mark Costa, senior vice president at Kaiser Permanente, and Joe Celentano, senior vice president at Pacific Life Insurance co. The event’s organizers are selling a title sponsorship for $25,000, and 18 corporate table sponsorships at $5,000 each. A VIP reception and a photo opportunity with Schwarzenegger are included for sponsors. An individual seat is $550. Proceeds benefit the center’s insurance marketing entrepreneurship program endowment, which provides funding for students interested in careers on the sales side of risk management and insurance. Two continuing education credits are being offered. For more information contact Carol Spencer by email at cspencer@fullerton. edu or phone at (657) 278-2857.

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Figures

The number of months in prison Tyus West of Little Rock, Ark., was sentenced for auto insurance fraud. He claimed his truck was stolen and sought compensation from two separate insurers.

84,720 $25,000 The number of textingwhile-driving tickets that were issued in New York in 2015, an 840 percent increase from 9,015 in 2011, according to figures published by New York Gov. Andrew Cuomo’s office in April.

$704,000

The reward amount being offered by the FBI for information on the theft of art — including seven of 10 Andy Warhol Campbell Soup can prints — from a Springfield, Mo., museum.

The number of tornadoes that hit Mississippi during the first three months of 2016. The National Weather Service said higher than normal temperatures and weather instability led to the higher than normal number of twisters.

Declarations Deficient Roads

“Forty years of underfunding isn’t going to be reversed in 10 years. … We need to stay on course.”

— Oklahoma Department of Transportation’s Terri Angier comments on a recent report showing that 28 percent of Oklahoma roads are in poor condition and another 42 percent are in mediocre or fair condition.

Bottled Water Provided

“While additional testing is completed, DPS immediately shut off all drinking fountains in the affected schools until further notice and is providing additional bottled water for students and staff.”

— Michelle Zdrodowski, spokeswoman for Detroit Public Schools, on actions taken by the district after elevated lead or copper levels were found in the water at 19 Detroit schools. The city is testing water in its schools following the lead-tainted water crisis in nearby Flint.

Robust Equality

“This is the most robust racial equality bill in the nation.”

— State Sen. Isadore Hall said a proposal she has made would build on California’s existing fair pay law by adding race or ethnicity to the requirement that employers justify any pay discrepancies between men and women who do substantially similar work.

10th Anniversary

“Ten years ago, Massachusetts led the country by creating a landmark healthcare coverage law.”

— Massachusetts Gov. Charlie Baker said on April 12 in marking the 10th anniversary of a healthcare law that later served as a model for the federal Affordable Care Act. State officials say the law led to near-universal coverage.

Deeply Concerned

“I am deeply concerned about this filing and the impact it could have on consumers. Georgia law prohibits me from stopping or delaying this increase unless an actuarial examination proves the rate to be legally excessive.”

— Georgia Insurance Commissioner Ralph Hudgens responds to a filing by Allstate that proposes to increase auto insurance rates in the state by at least 25 percent. Hudgens has launched an investigation into the filing.

InsuranceJournal.com

Poll

The amount awarded to a 62-year-old former division chief for the San Bernardino County Fire Protection District in California who alleged in a lawsuit he was fired due to his age. He was awarded $544,000 for past lost wages and $160,000 for future lost wages.

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MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 11

CLOSER LOOK | Restaurants

Chipotle by Example: Lessons Learned for the Restaurant Industry

he Centers for Disease Control and Prevention (CDC) estimates that one-in-six Americans gets sick every year from contaminated food or beverages. Those in the restaurant industry cannot ignore the risks. The recent chain of events that roiled Chipotle Mexican Grill has given one insurance broker the perfect opportunity to talk about needed coverage options with clients. In this interview with Insurance Journal’s Andrea Wells, Amy W. Vitarelli, senior vice president and practice leader for San Francisco-based Heffernan Insurance Brokers’ hospitality division, talks about how Chipotle’s November 2015 E. coli and norovirus outbreaks led to lessons learned for many of her clients.

Did the Chipotle outbreak heighten concerns of foodborne illness in the hospitality and restaurant segment? Amy Vitarelli: Yes, watching what Chipotle

has gone through has really alarmed many restaurateurs, especially when you consider the fact that their story is a long and varied one. There wasn’t necessarily one thing that went wrong for them. There were multiple things, and there are some lessons to be learned, for sure. 12 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

Some of those have to do with the important role that your employees play in the serving and preparation of your food. One of the things that happened to Chipotle was the outbreak resulted just from people being sick. They had employees who came in ill, and that is how the norovirus contamination happened. A lot of times, people in the restaurant industry get focused on supply chain issues. We hear about the tomatoes that are bad or the spinach or whatever, Amy W. Vitarelli and we focus on that contaminated product getting people sick. The data actually shows that that’s a pretty small percentage of the actual cases. More often it’s an employee-caused issue as to why someone gets sick from a restaurant’s food. That was a real eye-opener and lesson to be learned on this case.

What coverages should restaurants have to protect against issues arising from foodborne illness? Vitarelli: There are a couple of things. We

always try to look at just basic risk management first. Insurance is there to be the backstop, but what can they do first to prevent something from happening? … In the wake of the Chipotle situation, making sure that employees have sick days, paid sick time off, really could have been crucial in this situation. … Chipotle had an employee come in who was sick who otherwise didn’t have paid sick time and came in probably because he or she didn’t want to lose out on wages. It ended up getting a lot of people sick. … I’ve been telling my employers that now is the time to really send the message home through the managers, to the employees, that if you’re sick, don’t come in. It’s about them getting healthy, about their safety. It’s about other employees’ safety. It’s about their customers’ safety. … Then of course if they actually do have an outbreak, like norovirus, or even supply chain E. coli, etc., there is insurance. Then talk to restaurant clients about what they do and don’t have. Pretty much everyone carries the basic general liability policy, which will cover the restaurant if they get a customer sick and the customer sues them. They get sick off your food, have doctor’s bills, take off work, etc., and then sue you for those damages and doctor’s bills. The general liability policy is set up to respond to that type of claim. What it’s not set up to respond to is a decrease in sales as a result of that outbreak. Chipotle had huge decreases in their sales. A standard general liability policy does not respond to that. You have to buy a separate policy in order to get that kind of coverage. A business income policy, but specifically to cover a food outbreak.

What kind of policy? Vitarelli: There is a standalone policy that

historically has been commonplace for franchises, but not restauranteurs. Many

continued on Page 14

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CLOSER LOOK | Restaurants continued from page 12 franchise operators purchase because their exposure is so much greater, but for smaller operations, standalone hasn’t been something that they commonly have purchased. Every single restaurant client of mine right now is buying it. It’s a standalone foodborne illness (policy), also commonly called “trade name restoration for foodborne illness.” The policy first and foremost covers that loss of income due to the foodborne illness outbreak, but it also includes components of coverage that are going to pay for things like those first party costs — regulatory fines, dealing with health departments and some public relations to help get people coming back in your doors. It really is aiming to restore your trade name.

The policy first and foremost covers that loss of income due to foodborne illness.

The other really key component of it, which is why it’s historically been something that franchisees have purchased, is that it includes coverage for non-owned locations. What that means is, if I’m the McDonald’s here in San Francisco, and there is a McDonald’s either down the street that I don’t own, or there’s a McDonald’s, frankly, in another state that I don’t own, and there’s a bad foodborne illness, all of a sudden, people aren’t going to McDonald’s. But nothing was found at my location, but I’m seeing a drop in sales because of that outbreak; this policy will also trigger coverage for that type of situation. My clients absolutely are buying it now even if they are not multi-location. They’re

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Are there any other areas where you’ve seen more interest in purchasing coverage in the restaurant industry? Vitarelli: The other big thing that everyone

now is purchasing is cyber. I call 2015 the tipping point for cyber insurance. Before 2015, nobody wanted to talk about it. We as insurance experts got so excited probably five-plus years ago, when carriers first came out with cyber coverage. We thought, “Oh, this is great. This is so important. Every client needs this. This is really going to help protect our clients.” We’d go out and talk to clients about it and hear crickets, nobody cared. … It’s shocking the number of clients who were calling and saying, “We’ve had a breach,” and scrambling and wondering what to do about it. I speak about the risks very differently now to clients. There are certain types of breaches that are happening more often than others, but for restaurants, it’s huge with respect to the swiping of credit cards. … With cyber, it’s the first party costs that the policy pays for. This is why it’s absolutely worth it. I’m seeing most of my clients buy cyber this year.

Do you use the Chipotle example as a case study to help people understand why they might need to buy the added coverage? Vitarelli: Yes, absolutely.

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realizing it’s pretty affordable, and I think they’ve just been really scared by what’s been happening to Chipotle.

3/16/16 10:54 AM 3/15/2016 2:54:40 PM

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NATIONAL | Business Moves

Alliant, Andre-Romberg

Alliant Insurance Services Inc. has acquired Spokane, Wash.-based Andre-Romberg Insurance Agency. Terms of the deal were not disclosed. Andre-Romberg will operate as part of Alliant Americas. Kurtz, along with Andre- Romberg’s entire management team and staff, will join Alliant and continue to service clients from its Spokane offices. Andre-Romberg provides commercial risk management and personal insurance solutions. Newport Beach, Calif.-based Alliant provides property/casualty, workers’ compensation, employee benefits, surety and financial products.

Higginbotham, Capps Insurance Agency

Independent insurance broker Higginbotham, headquartered in Fort Worth, and Mount Pleasant, Texas-based Capps Insurance Agency have joined forces. Higginbotham’s partnership

with Capps brings its total number of employees to 750 in 24 offices throughout the state. Both firms have long histories dating to the 1940s. Capps’ clientele is largely comprised of mid-market businesses in Texas, Oklahoma and Arkansas, and it has a concentration in water and wastewater utility providers and transportation companies. Higginbotham has a diversified mid-market practice across Texas, but also offers a number of specialties. Capps will continue operating under its existing name with the leadership of Managing Directors Steve Capps and Norman Wilson, and Agency Manager Jim Fraley.

Brown & Milliken Agency, Holmes Agency

The Brown & Milliken Agency and the Holmes Agency, two independent agencies based in Ellsworth, Maine, announced that their firms have merged. Terms of the transaction were not disclosed. The Brown & Milliken Agency’s 16 employees will

16 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

continue on with the merged agency. Among the Holmes Agency’s five employees, two will retire and three will continue with the combined firm. The combined agency will be called the Brown, Holmes & Milliken Agency. The Brown & Milliken Agency’s co-owners, President Paul Tracy and Vice President/ Operations Manager Patrick Maguire, will continue to be co-owners of the merged agency. The Holmes Agency’s owner and president, Blaine Holmes, is retiring from the firm but will maintain his role as president of the Grindstone Financial Group, an agency aggregator made up of 20 member agencies in Maine, including the new Brown, Holmes & Milliken Agency.

Tarpey, W.C. Huntress

Tarpey Insurance Group Inc., a family-owned and operated independent agency with five locations in Massachusetts, has acquired W.C. Huntress Insurance Agency in the Boston suburb of Melrose, Mass. Terms of the transaction were not disclosed. W.C. Huntress Insurance has relocated to Tarpey Insurance’s Melrose office. W.C. Huntress Insurance’s three employees have joined Tarpey Insurance as part of the transaction, bringing Tarpey Insurance’s employee count to 36.

McDermott, Mello, MyersStevens Mello

McDermott Costa Insurance, Mello Insurance Services and Myers-Stevens Mello & Co. have merged. The firms will conduct business out of the McDermott

Costa office in San Leandro. Mello Insurance is based in Fremont and provides business and personal insurance coverage. Myers-Stevens Mello Insurance specializes in employee benefits and life insurance needs for businesses and individuals. Rich Suess will join the organization as vice president of employee benefits. McDermott Costa provides insurance solutions to commercial clients, including commercial property, general liability, workers’ compensation, employment practices and professional liability, employee benefits and bonding.

Conner Strong, Century Equity

Conner Strong & Buckelew, an insurance and employee benefits brokerage with headquarters in Marlton, N.J., and Philadelphia, announced that it has formed a strategic alliance with Boston-based private equity firm Century Equity Partners. Conner Strong said Century Equity’s mergers and acquisitions experience and industry relationships would enhance the brokerage’s organic growth and targeted acquisition strategies. Under the terms, Century Equity will acquire a minority interest in Conner Strong. George E. Norcross, III, Conner Strong’s executive chairman; Mike Tiagwad, president and CEO; and Joseph Buckelew, chairman, will maintain their majority interest in the firm. Together with the existing management team, they will continue in their current leadership positions. INSURANCEJOURNAL.COM

Century Equity focuses on making private equity investments in lower middle-market financial services companies.

Hilb Group, Clark-Mortenson, P.A. Post

The Hilb Group, a middle market insurance agency based in Richmond, Va., has acquired Clark-Mortenson Insurance, a N.H.-based insurance and financial services agency. Terms of the transaction were not disclosed. Founded in 1877, ClarkMortenson Insurance has six locations across New Hampshire and Vermont. The agency serves clients with a variety of personal and business insurance options with

specialties in hospitality, eldercare, residential health facilities and technology. Tom Minkler, ClarkMortenson Insurance president, will continue to lead the agency’s 48 employees under its existing name. Minkler is a past chairman of the Independent Insurance Agents and Brokers of America (2013-14). In addition, The Hilb Group also acquired Mahwah, N.J.based P.A. Post Agency LLC and its subsidiaries. Terms of the transaction were not disclosed. Through four generations of family ownership, P.A. Post Agency has specialized in transportation insurance services since its founding in 1915.

It provides insurance products for all transportation classes, including school and charter buses, ambulances, limos and taxis. Brad Post, P.A. Post Agency president, will continue to lead the firm’s 43 employees under its existing name.

Crest, Partners

Cody Ritchie of Crest Insurance Group LLC in Arizona and Ron Wilson of Partners of the West Insurance Services in San Diego, Calif., have merged. Wilson will continue to manage the California division of Crest. Crest provides insurance services including commercial,

personal and employee benefits. Crest operates with four offices in Arizona and now one in California.

Hub, Pickett and Associates

Hub International Ltd. has acquired the assets of La Quinta, Calif.-based Pickett and Associates Inc. Terms of the deal were not disclosed. Pickett’s owners Debra Pickett and Richard Torres will join Hub California and report to Mike Reilly, executive vice president of Hub California. Pickett specializes in providing employee benefits services and insurance solutions. Hub is a Chicago, Ill.-based is an insurance brokerage.

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(In California, Gateway Insurance Company is doing business as Alano Insurance Company. Gateway Insurance Company does not operate under the Gateway name in California.)

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MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 17

SPOTLIGHT | Commercial Auto

Things to Know About Taxis, Limos & Fleets

“It is important to keep in mind that public auto operations that cross a state line are federally regulated, much like truckers.” — Jeremy Allgeier, vice president/ transportation manager, Bolton & Co. (Louisville, Ky.)

“Hiring and driver turnover are critical to review as they relate closely to the management of the business and loss control stability. Encourage your insured to develop hiring guidelines and to follow them. Hiring and keeping good drivers are the most important steps in maintaining good loss control.” — Erin K. O’Leary, vice president, Shelly, Middlebrooks & O’Leary Inc. Services Inc.

“There is a substantial difference in premium between the two liability limits, listed above. A sharp producer can help the insured structure their operations so that they can have one policy for $5 million CSL covering only the limo bus, and a different policy for $1.5 million CSL covering the sedans from the prior example. This can save the insured a sub-

18 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

torical number of units operated per year including the projected growth for the next 12 months and revenue per year.” — Erin K. O’Leary, vice president, Shelly, Middlebrooks & O’Leary Inc.

“The highest seating capacity of all the vehicles owned and/or operated by the named insured will determine what level of financial responsibility is required by the Federal Motor Carrier Safety Administration (FMCSA). This means that a fleet with 10 sedans, and one limo bus would require a policy limit of $5 million CSL. If that same fleet did not have the limo bus, the requirement is only $1.5 million CSL.” — Jeremy Allgeier, vice president/ transportation manager, Bolton & Co. (Louisville, Ky.)

5 “Hiring practices requiring three or more years’ taxi experience lead to lower insurance rates and higher trust ratings.” — Robert Hill, chief underwriting officer, Blackmoor Agency

stantial amount of money, while still making sure that they are adhering to federal guidelines.” — Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)

“Fewer new drivers entering the driver pool continues to make finding good drivers more difficult. A good driver selection, training, and retention plan is critical for fleet operators seeking to emphasize safety and minimize insurance cost.” — Aaron V. Nowland, president, W.F. Clayton & Associates

“Fast, accurate accident reporting practices lead to lower rate claims and insurance premiums.” — Robert Hill, chief underwriting officer, Blackmoor Agency

“The underwriter needs the following information for the past four years when reviewing a fleet account: expiring premium, current valued loss runs, the his-

Regularly reviewing loss run information can have many benefits: The opportunity for early identification of frequency issues; diagnosing trends in causes of loss; spotting potential problem drivers; and helping to prepare for experience-related changes in renewal pricing, are a few.— Aaron V. Nowland, president, W.F. Clayton & Associates& Co.

The two largest demographics affecting the public transportation industry over the next decade will be the baby boomers and millennials. — Jeremy Allgeier, vice president/ transportation manager, Bolton & Co. (Louisville, Ky.) INSURANCEJOURNAL.COM

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NATIONAL | MyNewMarkets

Bars, Taverns and Restaurants

Market Detail: M.J. Hall &

Company Inc. (www.mjhallandcompany.com) writes bars, taverns and restaurants. Bar and tavern insurance covers businesses that may or may not serve food; these also cover bars and taverns with or without dance floors, or featuring live entertainment. An establishment is typically considered to be a bar or tavern if alcoholic beverage sales are more than 50 percent of gross sales. Intended for small to medium sized bar/nightclub exposures, and restaurants with or without alcohol sales. General liability (primary or excess) coverage includes CGL limits up to $3 million and primary liquor liability up to $1 million. Available programs: garagekeepers coverage for valet services; nonowned/hired auto; assault and battery; business income; medical payments coverage. Crime coverage inside and outside the premises. Property coverage: basic, broad or special form; replacement cost or ACV; contents; business income; equipment breakdown; accounts receivable; computer equipment; outside signs; and

valuable papers.

Hawaii and Nev. Contact: Stacey Shurson at 209-870-2978 or e-mail: staceys@mjhallandcompany.com

application(s) required. Available limits: Maximum $50 million Carrier: Zurich North America States: All states Contact: Jim Titus at 717-2147604 or e-mail: jim.titus@ amwins.com

Pollution - Auto Dealers/Auto Repair

Texas Non-Subscriber Coverage

Group Inc.’s (www.amwins. com) AutoGuard Program is a pollution insurance product designed to protect auto dealerships and automotive service/repair shops from the financial consequences of environmental losses. Also included are: brake shops; detail shops; equipment leasing companies; farm equipment dealers; lube shops; muffler shops; new car and truck dealerships; oil change repair centers; RV dealers transmission repair centers and truck service centers. Road form pollution liability coverage can include: third party BI & PD — on and off-site; on site clean-up; transportation of pollutants; protection for non-owned disposal sites; storage tanks at scheduled locations; multiple locations; and tail coverage. Completed

Insurance Group, ECA’s division (www.gaig.com/ECA) is the program administrator for one of the oldest, largest programs for Texas employers who opt out of workers’ compensation. The coverages include accidental death and dismemberment, medical expense, disability income, and employer’s liability claims due to on the job injuries. Available limits: Minimum $100,000, $5 million Carrier: Unable to disclose, non-admitted available. States: Okla. and Texas Contact: Janna and Johnson at 972-931-2026 or e-mail: jljohnson@gaig.com

Available limits: As needed Carrier: Unable to disclose States: Alaska, Ariz., Calif.,

Market Detail: AmWINS

20 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

Market Detail: Great American

Technology & Cyber

Market Detail: Risk Placement Services Inc.’s (www.rpsins. com) Technology & Cyber

group provides insurance products for start-ups to public corporations to government IT contractors. Both standard lines and excess and surplus markets. All lines are available. Sample classes include: computer consulting; web applications; IT defense contractors; systems integration; cloud computing; social networking; software development; IT staffing; video game/smart phone app development; high-traffic blog sites; data process control. Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Customer service at 866-595-8413

Background Screeners Market Detail: Brownyard

Programs Ltd. (www.brownyardprograms.com) offers specialty insurance (GL and E&O) programs for: security guard companies; alarm companies; detective agencies; private investigators; background screening companies; and armored car companies. Available limits: Minimum $1 million Carrier: Executive Risk & Lexington States: All states Contact: Pam Van Cott, e-mail: pvancott@brownyardprograms.com

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

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WHAT’LL YA HAVE? NOT EVERY E&S CARRIER UNDERSTANDS THE UNIQUE RISKS YOUR BAR AND RESTAURANT CUSTOMERS FACE.

We and our wholesale general agents can help make sure the focus stays on happy patrons by offering the right coverage at the right value. Visit our website to find a wholesale general agent near you.

www.music-ins.com ©2016 Selective Ins. Group, Inc. Products provided are underwritten by Mesa Underwriters Specialty Insurance Company (MUSIC). Products available vary by jurisdiction. These descriptions are summaries and not offers to sell insurance; the actual policies show complete coverage, exclusions and limitations details. Policy issuance is subject to underwriting approval.

SPECIAL REPORT | Workers’ Compensation

Employers Pay as 32% of Opioids Prescriptions Are Abused: Report By Andrew Simpson

early one out of every three (32 percent) opioid prescriptions, which are subsidized by America’s employers, is being abused, according to a report by a healthcare data and technology company. San Francisco-based Castlight Health Inc. released the study, “The Opioid Crisis in America’s Workforce,” which also found that nationally on average 4.5 percent of individuals who have received an opioid prescription are abusers. They account for 32 percent of total opioid prescriptions and 40 percent of opioid prescription spending. Opioid abusers cost employers nearly twice as much ($19,450) in medical expenses on average annually compared to non-abusers ($10,853), according to the analysis.

“The personal impact that opioid painkiller abuse takes on individuals, their friends and family is absolutely tragic,” said Kristin Torres Mowat, senior vice president of health plan and strategic data operations at Castlight Health. “This crisis is also having a significant impact on the nation’s employers, both in the form of direct and indirect costs. From higher spending on healthcare, to lost productivity, to the dangers associated with employees abusing medications in the workplace — these are aspects of the crisis that are too often overlooked in the current discussion.” In 2011, the American Academy of Pain Medicine published a report by researchers at The Analysis Group in Boston and King Pharmaceuticals in North Carolina that tallied the U.S societal costs of prescription opioid abuse. The study said workplace costs accounted for $25.6 billion — including lost earnings from premature death ($11.2 billion) and reduced compensation/ lost employment ($7.9 billion). It also found that the costs to the health-

care system were close to $25 billion, while the costs to the criminal justice system were about $5 billion. The Castlight report is one of a growing list of studies pointing to the high cost of prescription drug and opioid abuse in the workplace, including to the workers’ compensation system. A 2012 study in the Journal of

Occupational & Environmental Medicine found that when long-acting

opioid painkillers are prescribed, workers’ compensation claims are nearly four times more likely to turn into catastrophic claims with costs tallying more than $100,000. About 80 percent of officials at 200 Indiana companies surveyed in 2015 by the National Safety Council reported that they’ve had problems with workers abusing or misusing prescription medications, including opioid painkillers such as Vicodin and OxyContin. According to research into physician dispensing of opioids, the Workers Compensation Research Institute (WCRI) reported that three out of four injured workers with pain are prescribed opioids, with the amount per claim varying by state. A recent report by pharmacy benefits manager Express Scripts suggested the cost of opioids to workers’ compensation may be slowing. At $450.90 per user per year, opioids continue to be the costliest class of medications for occupational injuries, Express Scripts found, but overall spending for opioids decreased nearly 5 percent as utilization decreased by almost 11 percent. On average, injured workers received 2.91 opioid prescriptions per year — down from 3.33 prescriptions in 2014.

Castlight Findings

Additional insights reported by Castlight in its report include: • Baby boomers are nearly four times more likely (7.4 percent) to abuse opioids than Millennials (2 percent). • Patients living in areas with lower incomes are twice as likely to abuse prescription painkillers as individuals in high-income areas. Additionally, opioid abusers are more likely to live in the rural South. Overall, 22 out of the top 25 U.S. cities for opioid abuse are primarily rural and located in Southern states. • Among the top 30 largest U.S. cities, eight have higher than average opioid abuse rates. The cities include Las Vegas (7.4 percent); Charlotte, N.C. (6.2 percent); Kansas City, Mo. (5.1 percent); Portland, Ore. (5.0 percent); Tampa, Fla. (5.0 percent); Indianapolis (4.9 percent); Orlando, Fla. (4.6 percent); and San Antonio (4.6 percent). • Among the top 30 largest U.S. cities, eight have a higher percentage of opioid prescriptions abused than the national benchmark of 32 percent. The cities include: Charlotte (44 percent), Las Vegas (41 percent), Kansas City (38 percent), Portland (38 percent), Tampa (37 percent), Indianapolis (35 percent), Chicago (33 percent), and Dallas (33 percent). The Centers for Disease Control and Prevention (CDC) has called this issue a public health crisis. According to the CDC, nearly 2 million Americans are abusing prescription opioids, resulting in more than 16,000 deaths per year. In 2012, 259 million opioid prescriptions were written, enough for every American adult to a bottle of pills. For its report, Castlight Health, which offers a platform that allows employees to choose and manage their healthcare,

conducted research on opioid abuse based on aggregated reporting from medical and pharmacy-based claims. These findings include nearly 1 million Americans who use Castlight’s health benefits platform, a subset of Castlight’s broader user population. The study is based on Castlight’s

“

medical and pharmacy reporting over the five-year period from 2011-2015. Castlight analyzed its data across demographic categories, including age, income and geography. In addition, Castlight looked at 2015 annual medical healthcare spend associated with this dataset.

Insurance distribution is going through significant consolidation.

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‘The personal impact that opioid painkiller abuse takes on individuals, their friends and family is absolutely tragic.’

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SPECIAL REPORT | Workers’ Compensation

By Andrea Wells

he workers’ compensation market is healthy and robust. It’s both competitive and profitable. That’s good news for business owners, the insurance industry and injured workers. Beneath the positive news, however, is a layer of anxiety over how long the market will remain healthy. There are numerous developments eating away at stakeholders’ confidence: rising medical costs, the opioid crisis, chronic pain claims, an aging and unhealthy workforce, and movements to allow employers to opt-out of mandatory workers’ compensation. Discussions are underway on how to deal with some of these underlying concerns. A few developments including drug formularies and predictive analytics offer some hope. The fact that this is an election year with regulatory jobs in a number of states up for grabs is an opportunity that could go either way. First, the good news. The industry is expected to post a combined ratio of 97.6, which is lower than it’s been in quite some time. That’s a slight improvement from the workers’ comp calendar year combined ratio of 98 in 2014, and well below the 102 combined ratio in 2013. Mark Walls, vice president, communications and strategic analysis, at Safety National, sees today’s market as a good deal for good risks in particular. “If you have a good, solid return-to-work program, a good loss control program and your losses are reflecting that, then you’re going to have people competing for your business,” said Walls, who is the founder of the Work Comp Analysis Group on LinkedIn, a discussion community dedicated to workers’ compensation. “If you’re having a lot of losses, a lot of frequency, there’s going to be less competition and you’ll probably be seeing some rate hikes. In markets like this, good programs are rewarded.” 24 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

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“Workers’ compensation right now is as profitable a line as it has been for quite some time,” said Steven Festa, chief operating officer of Employers, which wrote $689.3 million in net written premiums in 2015 and focuses on low-hazard, small business risks. At the same time, business owners are in a much better position in terms of rates than even just a few years ago when rates were firming, he said. About two-thirds of the NCCI states (about half of the United States) have had rate decreases over the past year. “Market conditions today for workers’ compensation from a rate standpoint is very attractive,” Festa said. “I expect that to continue through the remainder of this year and probably through at least 2017 as well.” The healthy market conditions are due in part to insurers’ own attention to safety. “The industry has done a good job over the past few years putting more effective safety programs in place, mitigating not only the number of claims that occurred, but also trying to impact the severity of those claims,” Festa said. With the exception of California, which only recently saw a decrease in claim frequency, most states over the past five-plus years, and in some cases 10 years, have seen claim frequency decline. “That along with some moderation in medical severity has led to a much more profitable workers’ compensation product,” Festa said.

Medical Care

But while claims are declining, the cost of medical care continues to rise and that’s a troubling trend. Rich Ives, vice president of workers’ compensation at Travelers, said the rising cost of medical is the number one concern of both carriers and business owners. “It’s been a top concern of ours and of our customers for a long time,” he said. According to Ives, about 60 percent of his company’s workers’ compensation claim costs are directly attributed to medical right now and that’s been on the rise for INSURANCEJOURNAL.COM

some years. He said Travelers has forecast that by the year 2019, medical will be close to 70 percent of workers’ compensation costs.

Future Concerns

In addition to medical costs, industry experts are also worried about America’s opioid epidemic. A recent study, “The Opioid Crisis in America’s Workforce,” (see page 22) found that nearly one out of every three (32 percent) opioid prescriptions is being abused. Those drug abusers cost employers nearly twice as much ($19,450) in medical expenses on average annually as non-abusers ($10,853). That’s a hefty price to pay but the “real cost” is far greater than the dollars spent on medical. “We spend time focusing on how to get those injured workers back into productive, working mode and spend a lot of time talking about the cost of the drugs themselves,” said Festa. “But my philos-

‘Workers’ compensation right now is as profitable a line as it has been for quite some time.’ ophy, and that of the industry, too, is that the cost of the drugs themselves are, in the scheme of things, just pennies.” He said the “real dollars” are paid out for individuals who, over a period of time, get hooked on these drugs. The longer abusers are addicted, the less likely they are to ever go back to work, Festa said. That loss of production is beyond workers’ comp costs. “That has an even bigger impact on the overall U.S. economy,” he said. Amanda Granger, vice president of workers’ compensation claims for IWC Group Insurance Companies, said opioids have been a problem for years, but now more people are doing something about it.

In her view, legislation establishing formularies for prescription medications in the workers’ compensation system will help address part of the problem. A formulary provides medication guidelines for injured workers with the goal of counteracting the overutilization of addictive drugs. “This is a key issue that we’re tracking, not only nationally, but specifically in California where legislation is going through for 2017 to land a formulary,” Granger said. “This is a very positive step for California, but only if we really stay focused in setting up this formulary correctly.” She believes the industry must make policy decisions based on data analysis and not on anecdotal information “because … that’s when you lose the significance around the purpose and intent of a formulary.” Granger said Texas and Washington have had good results with drug formularies thus far and now other states are paying attention. “[They] are saying, ‘Hey, the savings are significant there and they don’t have the same issues around the overuse, dependency issues, to some of these opioid narcotic drugs.’” The rising frequency of claims for chronic pain is another cause for concern within workers’ comp. “This includes long lasting pain that hampers their ability to be able to return to work, or to even maintain the same lifestyle that they had prior to the acute injury,” according to Travelers’ Ives. He said a study by his company a decade ago found that 10 percent of its more serious injuries involved chronic pain. Now that’s up to about 50 percent and, of those chronic pain cases, 90 percent are prescribed opioids, Ives said. While the Centers for Disease Control, the Federal Drug Administration and some states are trying to provide guidance for the safe use and monitoring of opioids, they are not addressing the root cause, according to Ives. “What needs to be

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SPECIAL REPORT | Workers’ Compensation continued from page 25 addressed is how can we intervene early while the person is still going through the first several weeks of treatment and address the chronic pain issue,” he said. Travelers’ has a tool — its Early Severity Predictor — that offers some hope. It helps to identify people likely to develop chronic pain within the first few weeks of the injury. “It’ll allow us an opportunity to get involved, bring additional resources, and really personalize the care for that individual that would put them on a safe road to recovery and that could change the future for that person,” he said. “When we think about workers’ compensation claims specifically we need multiple plans to address opioids,” said Kimberly George, senior vice president, senior healthcare advisor at Sedgwick. “It’s about early intervention. How the industry is using big data, resources, examiners, adjusters, pharmacy benefit managers, nurses to help consumers, to help injured workers understand the risks in taking opioids and to address those early with physicians.” Those early interventions are where the industry has an opportunity to mitigate against somebody getting addicted to opioids, George said.

Unhealthy Workers

Another underlying concern is the unhealthy lifestyles of many Americans. “Generally, the working population is older than they were prior. That’s contributing but in general the health and well-being of Americans has declined,” Ives said. Comorbidities, or when a person has a chronic condition before the injury, are more prevalent today than ever before. Ives said research suggests that 50 percent of the injured workers have at least one comorbidity prior to their injury, or one chronic condition. These include be conditions related to obesity, smoking and diabetes. Existing chronic pain would fall into that category as well. About 25 percent of the American working population has more than one comorbidity. “The significance to the rise in medical care is this: If someone has one comorbidi26 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

‘What needs to be addressed is how can we intervene early while the person is still going through the first several weeks of treatment and address the chronic pain issue.’ ty, the cost of that overall claim doubles. If somebody has more than one comorbidity, the cost of that overall claim is five times more than it would be as if they didn’t have any,” Ives said.

Options and the Government

State insurance commissioners are elected in 11 states and appointed in the other 39. In this year’s coming election, there are 12 gubernatorial seats and five insurance commissioner positions to be decided. The workers’ compensation industry needs to be paying attention to these elections because the commissioners can have significant influence over policies and enforcement in their states, said Walls. The industry also needs to be watching the federal government. In October 2015, Democrats on key Senate and House committees sent a letter to the Department of Labor asking it to conduct a critical review of state workers’ compensation systems — and their target appears to be states that are establishing opt-out programs that allow employers to create their own workers’ compensation plans, often with procedures and benefits less favorable to injured workers than traditional state-approved private insurance plans. Walls said the Department of Labor is subpoenaing records from people involved with the opt-out programs in Texas and Oklahoma. “It’s not really focused on the level of the benefits. It’s focused on the procedures because that’s the limit of DOL’s oversight on those types of plans,” according to Walls. What’s most interesting, Wall said, is that efforts to install opt-out have stalled. Early in the year, supporters of opt-outs in Tennessee and South Carolina tried but

failed. “I think coming into the year, there was a lot of expectations for what was going to happen in those states, and it just hasn’t materialized,” Walls said. But perhaps the biggest setback for the opt-out movement has been in Oklahoma, where lower courts have declared it unconstitutional and the Oklahoma Supreme Court has been asked to get involved. Oklahoma’s attorney general has asked the Supreme Court not to rule on the issue because the legislature is trying to fix the concerns that were raised by the lower court. Last year, Walls said, Oklahoma’s opt-out seemed like a model for other states, but now it’s questionable at the least. “You have had a lower court declare it unconstitutional, and whether or not the higher court does the same thing remains to be seen, but at minimum, the legislature’s taking a look and trying to tweak it to address the concerns the court’s raised,” he said. Even employers have stepped back a bit from the opt-out movement. “You don’t see employers leading these conversations,” said George.

The Future

Walls thinks the anxieties surrounding workers’ compensation are deeper than rising medical costs, the opioid crisis or unhealthy workers. In his view, the century-old industry needs to face some fundamental truths. “Is workers’ compensation doing what it was originally mean to do?” Walls asked. “Workers’ comp is more than 100 years old — it was really set up and designed around an industrialized society — that’s not what we have any more.” In Walls’ view, workers’ comp needs to evolve to serve the future. “There’s a need for comp to evolve to keep up with the realities of medical science and today’s workforce, and so many other things. These conversations are definitely taking place, but where it will go remains to be seen because we are dealing with 50 different state systems, so moving the needle’s a very difficult thing.” INSURANCEJOURNAL.COM

Idea Exchange

Academy Journal

Workers’ Compensation: Combinability of Insureds

By Christopher Boggs

onsolidating separate legal entities’ loss experience to develop a common experience modification factor has the potential to cause confusion for the client and sometimes the agent. Clients may view such mixing of loss experience due simply to common majority ownership/interest as less than reasonable, especially if the commonly-owned entities substantially differ with regard to the relative hazard presented (i.e. the owners of a heavy equipment contracting company purchase a marina). Combinability rules do not merely marry the experience of entities that are currently in operation and related via common majority ownership, they also assure that owners do not

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avoid their historically poor loss records simply by closing down one entity and reopening and operating under another corporate name. Most agents would agree that such a stunt is unethical at best and may be considered fraud. Changing the name of the operation does not change the operational methods of the owner(s). Understanding combinability rules necessitate a basic understanding of the theory and practice behind the calculation of experience modification factors. Following is a brief synopsis of experience modification calculations.

Calculating Experience Modification Factors

Workers’ compensation loss costs are calculated and charged based on the average expected losses for that particular business classification. All insureds in the same hazard class (based on the assigned code) are charged the same basic loss cost (individual carriers apply conversion factors to these loss costs to develop individual rates). However, not all insureds within a particular hazard class operate in the same manner, nor does each experience

the same losses. To adjust for these differences in operation and loss histories, a method had to be created allowing for premium and rate differentiation between the above average, average and below average insureds within any particular hazard class code. Experience modification factors (experience mods) allow such “customizing” and individualization of the workers’ compensation premium. Basing the standard premium on the insured’s unique loss history allows the class’s average rates to remain relatively constant and the subject insured to be rewarded or punished based on its own experience (rather than be subject solely to the experience of the group). Stop loss limits used as part

of the experience mod calculation makes loss frequency weightier than loss severity. One large claim will not damage an experience mod factor as drastically as three small claims in a single period. Calculating experience modification factors is far more complicated than presented in three short paragraphs. Modification calculations are a function of expected losses, actual losses, payrolls, class averages, loss limits (medical only versus medical plus indemnity) and formulary factors applied by NCCI (or the applicable rating bureau) to all such collected data. Knowing and understanding that experience modification factor calculations allow for

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Idea Exchange

Academy Journal

continued from page 27 the reward or punishment of individual employers and allow one to more clearly view the need for loss experience combinability. Employers should not be freed of their premium responsibility simply due to legal structure. And rarely are majority-owned entities not interrelated such that employees work for multiple entities even though they appear to be operating for just one employer in the course and scope of their daily duties (combinability avoids some of the problems created by the borrowed servant doctrine).

A Case for Combinability Rules

Owners theoretically run each and every operation (past and present) in essentially the same manner and with the same attitudes. An employer that is concerned with safety and strives to provide the best equipment and training will likely always act the same with each entity. Likewise, employers looking for the easiest and cheapest way out will likely continue down the same path in the future. Combinability rules are, to some extent, based around the theories: • Employers that operate in the supposed best interest of their employees should have all their entities (current and future) rewarded due to such attitude. Commonly-owned operations will likely be managed in the same manner and the same care. Concern is expected to be shown for all employees (regardless of the hazard of the operation). • If an employer allows unsafe operations in one entity, it is

reasonable to postulate that such attitude will carry over to the new entity and all commonly-owned entities (current and future). Employers not operating (or not appearing to operate) in the best interest of their employees should be subject to their past (or current) experience. Past actions are not a guarantee of future actions, but they stand as a good indicator. To not reward or punish allows employers and owners to act with impunity, knowing that as long as no law is broken, all that is necessary to escape a poor loss history is to kill off of an old and birth a new corporation.

Combinability rules do not merely marry the experience of entities that are currently in operation and related via common majority ownership. Without the ability to combine loss histories, workers’ compensation carriers would potentially be victims of inadequate premiums. Similarly, average and above average risks would be victimized by higher premiums than necessary. The average loss cost balance would be tilted and all employers would likely see an increase in their rates rather than just the ones that “earned” the increase. Rate predictability and possibly rate adequacy may be compromised without combinability rules.

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Granted, there are exceptions to every rule as is demonstrated by the employer that had a hiccup in its loss history not indicative of its past. Not every injury can be avoided, even with top-notch safety and training. Bad “things” sometimes just happen. This is why there is underwriting discretion and the availability of rate credits and debits. A historically above-average employer with a bad year or two in its experience modification calculation can have the debit mod negated by a rate credit. Conversely, an average or below average employer that has been fortunate can be debited to account for the increased hazard presented to the insured. Employers that do not practice or refuse to comply with recommended safety practices, as reported by the loss control department, can see their rates increased by a debit factor in anticipation

of the increased potential for employee injury.

Combinability Guidelines

Common majority interest is the basic rule of combinability. When the same person, group of persons or a corporation owns a majority interest in another entity, the owned entity’s loss experience is combined with the owning entity to develop a common (combined) experience modification factor. The combinability concept seems simple enough, however achieving “common majority interest” can be accomplished in one of several relational constructs: • The corporation owns a

majority interest in other entities. When Corporation

A (a legal person) owns a majority interest (this term will be defined in upcoming paragraphs) in Corporation B, the loss experience of both corporations is pooled to produce INSURANCEJOURNAL.COM

in Corporation B; John and Joe (100 percent owners of Corporation A) hold 25 percent of Corporation B. The combined ownership of the legal person and the natural persons result in common majority ownership (55 percent) of Corporation B making the two entities combinable; or • The business owns a major-

ity interest in another entity which, itself, owns or owned a majority interest in a third entity currently operating or which operated in the past five years.

a single, combined experience modification factor; • The business’s owner (nat-

ural person) individually or collectively maintains majority interest in more than one entity. If John holds majority

interest in Corporation A and he individually gains majority interest in Corporation B, the two entities are combined for experience rating. However, if John has majority interest in only one of the two entities, they are not combinable (i.e. John maintains 75 percent interest in Corporation A but only 25 percent in Corporation B). To continue, assume that John and Joe combine to own majority interest in Corporation A and Corporation B; common majority ownership exists and the experience is combinable; • The corporation combines

with some or all of its owners to hold a majority interest in another entity. Corporation A maintains 30 percent interest INSURANCEJOURNAL.COM

This is not an exhaustive list of relationships that can lead to combinability of loss experience, but it is a representation of the most common relationships. These guidelines are subject to NCCI and/or individual state rating bureau interpretations. Agents, brokers and carriers should use these descriptions only for informational purposes as final determination rests in these other advisory bodies.

Natural and Legal Persons

Common majority interest can be created when a single person or a group of persons combine to hold a majority interest in multiple entities. It matters little whether the owners of other entities are natural persons, legal persons or a combination. Nor does it matter how they combine to create common majority interest between or among two or more entities. Legal persons are generally created by the actions and desires of natural persons. Some legal persons are owned by one or only a few natural

persons (a small business) while some are owned by many shareholders (traded on the stock exchanges). Natural and legal persons are defined as follows: • Natural person: A flesh and blood human being. In workers’ compensation, the employer is a natural person(s) in sole proprietorships and partnerships. Managers and members of an LLC are viewed as natural persons in a majority of states making these persons the employers. Legal person (a.k.a. juridical person): A legal fiction, a person created by statute and born with the filing of articles of incorporation. These legal persons are given the right to own property, sue and be sued. Corporations are legal persons, and several states consider LLCs a legal person.

Majority Interest

Majority interest is created when the same person or group of person(s) combine to own more than 50 percent of an entity. Majority interest can be created in many ways. NCCI lists the following: • An entity or persons (as detailed above) owns the majority of the voting stock of another entity; or • Both entities share a majority of the same owners (if there is no voting stock). Generally these are natural persons that own multiple entities. • If neither of the above applies, majority interest is created if a majority of the board is common between two or among several entities; • Participation of each general partner in the profits of the

partnership (limited partners are excluded); or • When ownership interest is held by an entity as a fiduciary (excludes a debtor in possession, a trustee under an irrevocable trust or a franchisor).

Combinability Conclusion

Based on and applying the common majority interest rules, the possibility exists for more than one combination of commonly related entities. Deciding which combination of entities applies is based on the following two rules (presented in order of importance): 1. Which combination involves the most entities? 2. If the above does not apply, the combination is based on the group that produces the largest estimated standard premium. Regardless of how a group is created and combined, no entity’s experience will be used more than once. Finally, although separate entities may be combinable for experience modification calculation, this does not preclude each from having separate workers’ compensation policies. Separate legal entities are entitled (and really required) to be written on separate workers’ compensation policies. Combinability rules exist merely to assure that loss histories are not escaped by the creation of multiple legal entities or the closing of one and opening of a new one. Boggs is vice president of education for the Academy of Insurance. Phone: 800-897-9965 ext. 173. Email: cboggs@ijacademy.com.

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Idea Exchange

Tech Talk

Does Digital Proficiency Affect an Agency’s Valuation? By Tom Wetzel

e have talked about the many reasons why agents need to add up-to-date digital tools to stay competitive. One possible reason is the financial penalty an agency could pay in diminished value without a truly up-to-date, distinctive website and effective social media and mobile capabilities. We wanted to test the validity of that reason, and what we found is fascinating. Many agency principals have told me they understand the need to add or upgrade their digital tools but do not feel an urgency to do so. Their reasons generally fall into three categories: 1) Those principals nearing retirement who believe their clients don’t use these tools. 2) Those who say their younger producers are already using them individually. 3) Those who put off the investment due to cost. An agency’s technology platform and its age are factors considered in valuation. Others include a track record of organic growth, profitability, reputation, employee productivity, and the degree of dependency

on large accounts or on a certain industry. Digitalization should not be considered a discretionary investment but rather an essential one for an agency’s long-term growth and profitability. Hub International has been acquiring agents for many years and is arguably a pioneer in the process, not just in assigning a value to an agency but of also evaluating its longterm viability and strength. When Hub’s CEO Martin P. Hughes was asked what value he places on an agency’s degree of digitalization. “Not one iota,” he said. “We can teach those skills, however only if they’re open to it. If they’re old school and not taking advantage of all the latest

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tools, then it’s a problem if they’re not open to change.” Hughes cited other important factors including “sound leadership with a lot of runway left,” producer capability and willingness to be team players. He said that financial considerations are obviously important. However, the two most important factors for Hub when valuating companies are the “cultural pieces” and producer capability. “Hub started this ballgame of acquiring agents, and we been very good at it because we are highly disciplined, he said. “We’ve made mistakes, but it has been because we fell in love with the market and not the people.” What this boils down to is this: The effective use of digital tools matters, not because they add to or detract from an

The effective use of digital tools matters, not because they add-to or detract from an agency’s value, but because they build name recognition, deepen client relationships and reach prospects the agency would otherwise miss. agency’s value but because they build name recognition, deepen client relationships and reach prospects the agency would otherwise miss. If an agency makes a conscious decision to not use digital tools at all or to continue to use an outmoded model, it will likely be less attractive to would-be buyers, not because of the lack of digital tools but because of its old-school vision and unwillingness to adapt to the connected marketplace. Wetzel heads his own insurance marketing firm that specializes in website design and social media programs for agents. Website: www.wetzelandassociates.com. Email: twetzel@ wetzelandassociates.com. INSURANCEJOURNAL.COM

Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2016 Workers’ Comp Directory, a comprehensive listing of intermediaries and carriers offering workers’ compensation coverage throughout the country. The information listed in this directory serves as a resource guide for independent agents and brokers looking for workers’ compensation markets. Intermediaries and carriers writing workers’ compensation coverage and profiled in this directory submit updated information directly to Insurance Journal.

Access Point Insurance Services Contact: Customer Service Phone: 949-760-0595 ; Fax: 949-760-0591 Email: submissions@accesspointins.net Website: www.accesspointins.net ■ Markets Offered: Workers’ Comp – Standard, High Mods, PEO Plans, USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Brokered Business: Accepted ■ States Entered in: AZ CA HI NV ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Carriers Accident Insurance Services, Inc. Contact: Beckie Ervin Phone: 972-991-0413 ; Fax: 972-788-5108 Email: beckieervin@ais-insurance.net Website: www.ais-insurance.net ■ Markets Offered: Excess Workers’ Comp, 24 Hour Policy, Workers’ Comp, Occupational Accident ■ Phone Inquiries: Accepted ■ Min Premium: Up to $25,000,000 per Occurrence ■ Brokered Business: Accepted ■ States Entered in: TX ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: American Hallmark Agency Resources Contact: Florencia Robledo Phone: 866-454-9676 ; Fax: 973-261-9202 Email: florencia.robledo@agencyresources.com Website: www.agencyresources.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted

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We make every attempt to ensure the accuracy of all information listed in this directory. You may also view Insurance Journal’s Workers’ Comp Directory online at: www.insurancejournal. com/directories. Also visit that link to submit a listing for future workers’ compensation directories, or e-mail Kristine Honey at: khoney@insurancejournal.com. We hope you find the 2016 Workers’ Comp Directory to be a useful tool when searching for markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: editorial@insurancejournal.com.

Align General Insurance Agency, LLC Contact: Mike Tudman 818-825-6181 Phone: 619-333-2500 Email: info@aligngeneral.com Website: www.aligngeneral.com ■ Markets Offered: Workers’ Comp - MODS above 1.10 ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $40,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: Call For Details

Always Affordable Insurance Solutions Contact: Ashley Liddle Phone: 657-900-2050 ; Fax: 657-900-2051 Email: ashley@alwaysaffordableins.com Website: www.alwaysaffordableins.com ■ Markets Offered: 24 Hour Policy, Excess Workers’ Comp, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States except AK & HI ■ Admitted Status: Admitted & Non-admitted

All Risks, Ltd. Contact: Hollie Degutis Phone: 800-366-5810 ; Fax: 410-828-8179 Email: hdegutis@allrisks.com Website: www.allrisks.com ■ Markets Offered: Workers’ Comp, USL&H, DBA & MEL ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Over 14 carriers represented

AMERISAFE

Alternative Market Services, Inc. Phone: 855-924-1597 ; Fax:916-751-5911 Email: info@amsboss.com Website: www.alternativemarketservices.com ■ Markets Offered: Commercial Insurance, Health Insurance, PEO, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: All Carriers

Contact: Customer Service Phone: 800-897-9719 ; Fax: 800-450-1091 Email: aiic-mktg@amerisafe.com Website: www.amerisafe.com ■ Markets Offered: Hazardous Workers’ Comp Carrier ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Most States For more info, see our ad on pg 6 (S. Central) or pg 5 (Southeast) AMIS/Alliance Marketing & Insurance Services Contact: Karen Metcalf Phone: 800- 843-8550 ; Fax: 800-573-8550 Email: kmetcalf@amiscorp.com Website: www.amisinsurance.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 ■ Admitted Status: Admitted ■ Carriers Represented: Travelers

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2016 Workers’ Compensation Directory AmTrust North America Contact: Customer Service Phone: 877-528-7878 ; Fax: 800-487-9654 Email: marketing@amtrustgroup.com Website: www.amtrustnorthamerica.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 (autopay option requires a $600 minimum premium) ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Alliances With: Multiple regional alliances AmWINS Group, Inc. - 80 Offices Nationwide See Website for Locations, HQ - Charlotte, NC Contact: Marketing Department Phone: 704-973-3489 ; Fax: 704-943-9000 Email: marketing@amwins.com Website: www.amwins.com ■ Markets Offered: Excess Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Various ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Excess WC’ Carriers AmWINS Program Underwriters Contact: Matt McCue Phone: 717-214-7622 Email: matt.mccue@amwins.com Website: www.amwins.com/apu ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various AM Best A- Rated or Higher Apex Insurance Services Contact: Robert Hughes Phone: 210-340-8985 ; Fax: 210-340-8986 Email: hughes@apexinsurance.com Website: www.apexinsurance.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory and high excess ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Various National & Regional Carriers Appalachian Underwriters, Inc. Contact: Robert Purdy Phone: 888-376-9633 ; Fax: 888-871-7644 Email: marketing@appund.com Website: www.appund.com ■ Markets Offered: USL&H, Workers’ Comp, New Ventures/No Prior Eligible ■ Phone Inquiries: Accepted ■ On-line portal accessible ■ Minimum Premium: $750 ■ Limits: Any Size ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: Multiple A.M. Best ‘A’ Rated Carriers. Exclusive Programs for Healthcare, Temp Staffing, Trucking and Construction Risks. INSURANCEJOURNAL.COM INSURANCEJOURNAL.COM

Applied Underwriters, Inc.

Phone: 877-234-4450 ; Fax: 877-234-4452 Email: sales@auw.com Website: www.auw.com/us ■ Markets Offered: Workers’ Comp, EPLI, E&O, D&O, Payroll ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Limits: none ■ Brokered Business: Accepted ■ States Entered in: All States except TX ■ Admitted Status: Admitted ■ Alliances With: Promesa Health For more info, check out our ad on pages 4 & 5 (National) & on the Back Cover

Arrowhead General Insurance Agency, Inc.

Contact: Marketing Dept. Phone: 800-669-1889 ; Fax: 619-881-8695 Email: MarketingInfo@ArrowheadGrp.com Website: www.ArrowheadGrp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Carrier ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers For more info, see our ad on page 2 (National) Artex Risk Solutions, Inc. Contact: Christine Mikel Phone: 630-438-1560 Email: Christine_Mikel@artexrisk.com Website: www.artexrisk.com ■ Markets Offered: Excess WC, Workers’ Comp, Guaranteed Cost & Alternative Risk (Captives) ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Several All “A” rated or higher

Atlas General Insurance Services

Contact: Marketing Dept. Phone: 855-309-3310 ; Fax: 619-814-8914 Email: info@atlas.us.com Website: atlas.us.com ■ Markets Offered: Workers’ Comp, BOP and Commercial Package Policies, Builders’ Risk, Contractors’ and Non-Contractors’ GL, EIFS, Garage and Dealers, Difference in Conditions, Habitational, Inland Marine, Professional Liability, Property, Umbrella and Excess ■ Phone Inquiries: Accepted ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers For more info, see our ad on page 14 (National)

Berkshire Hathaway GUARD Insurance Companies Phone: 570- 825-9900 ; Fax: 570- 823-5930 Email: csr@guard.com Website: www.guard.com ■ Markets Offered: Workers’ Comp & related P&C lines. ■ Phone Inquiries: Accepted ■ Minimum Premium: No Standard Minimum ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Nationwide ■ Alliances With: An internal affiliate and some other vendors that vary by state. Berkshire Hathaway Homestate Companies Contact: Customer Service Phone: 888-495-8949 ; Fax: 415-675-5482 Email: marketingsf@bhhc.com Website: www.bhhc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted

Boston Insurance Brokerage, Inc.

For more info, see our ad on page 42 (National) Contact: Keith Driscoll – 617-556-7031 Contact: Monica Wojnilo – 617-556-7053 Contact: Cara Treen – 617-556-7045 Contact: John Roderiques – 617-556-7059 Website: www.bostonbrokerage.com ■ Markets: Guaranteed Cost, Loss Sensitive, Excess Workers’ Comp, Rating Plans ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Standard ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIM Mutual, Atlantic Charter, Amerisafe, AmTrust, Axiom, AIG, Crum & Forster, Employers, FirstComp, Guard, Hartford, Munich RE (V3), RTW, Republic Indemnity, Sentry, Tangram (Prosight) & Travelers. From small Main Street risks to large Complex Debit Mod & Loss Sensitive risks, Boston Insurance Brokerage offers coast to coast service, market access and product line expertise to provide solutions to agencies for their Workers’ Compensation clients. The team at Boston Insurance Brokerage has compiled a comprehensive group of partners and built processes to manage risks with premiums as low as $1,000 and no maximum premium cap. BreckComp Program of Blue River Underwriters West Coast Contact: Vicky Williams - Phone: 559-326-5775 Email: vwilliams@blueriveruw.com East Coast Contact: Michael Mahoney - Cell: 561-254-9852 Email: mmahoney@blueriveruw.com Website: www.blueriveruw.com ■ Markets Offered: Workers’ Comp - close to 400 eligible class codes ■ Phone Inquiries: Accepted ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ Program Available in: AL AR AZ CA CO GA ID IN IA KS KY LA MI MO MS NC NE NV NM NC OR SC TN TX UT VA WI ■ Admitted Status: Admitted MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 33 MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 33

2016 Workers’ Compensation Directory Breckenridge Insurance Services Shawn Hall - Cell: 440-773-7983 - shall@breckis.com Paul Krutek - Cell: 636-734-0354 - pkrutek@breckis.com John Harmon - Cell: 417-861-1415 - jharmon@breckis.com Website: www.breckis.com ■ Markets Offered: Workers’ Comp, MGU, Wholesale Brokerage ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AIG, Amerisafe, AmTrust, Applied Underwriters, BerkleyNet, Berkshire Hathaway, Guard, Hartford, Starr Insurance, Torus National, V3 Insurance Partners and more. Brownyard Group Contact: Jennifer Brownyard 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 ■ Admitted Status: Admitted

Brownyard Programs, Ltd.

Contact: Blair Brownyard Email: blair@brownyardprograms.com Phone: 631-581-9300 ; Fax: 631-581-9385 Submissions: BPsubmission@brownyardprograms.com Website: www.brownyardprograms.com ■ Markets Offered: Workers’ Comp for Security Guards, Investigators, Alarm Companies ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Crum & Forster. Rated A (Excellent) by A.M. Best Company Specialty Insurance - GL, Professional, Umbrella, Auto & WC Programs for the Private Security Industry including security guard, private investigation, background screening, alarm, and other electronic security companies. Builders & Tradesmen’s Ins. Services, Inc. Contact: Jeremiah Azevedo Phone: 916-772-9200 ; Fax: 916-772-9292 Email: jazevedo@btisinc.com Website: www.btisinc.com ■ Markets Offered: Victory® Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Not Accepted ■ States Entered in: All States except AK, ND, OH, WA, WY ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, ICW, CNA, Travelers, Zenith 34 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016 34 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

Burns & Wilcox

Contact: Justin Dorman Phone: 248-932-9000 Email: jkdorman@burns-wilcox.com Website: www.burnsandwilcox.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $10,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted For more info, see our ad on page 9 (National) Care Providers Insurance Services, LLC Contact: Priscilla Archer Phone: 800-761-7072 Ext. 1313 ; Fax: 800-224-7145 Email: parcher@nsminc.com Website: www.ins-cps.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: None ■ Limits: EL $1M ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Texas - Open Safety Group accessed through Texas Mutual Charity First Insurance Services, Inc. Contact: Riley Binford Phone: 800-352-2761 ; Fax: 415-536-4033 Email: riley_binford@charityfirst.com Website: www.charityfirst.com ■ Markets Offered: Workers’ Comp, Nonprofits and Social service agencies, Religious organizations ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted in most states ■ Carriers Represented: Travelers, Great American, Berkshire Hathaway, USLI, ACE/Chubb, Applied Underwriters and ICW CID Insurance Programs, Inc. Contact: Caesar Serrano Phone: 800-922-7283 ; Fax: 619-593-2008 Email: caesar@cidinsurance.com Website: www.cidinsuranceprograms.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO ID MD NE NM NV OR PA TN TX UT ■ Admitted Status: Admitted ■ Carriers Represented: Over 25 insurance companies Combined Resources Contact: Richard Rossi Phone: 631-758-6780 ; 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 NE NH NJ NY PA RI SC ■ Carriers Represented: Over 25 insurance companies

Commercial Sector Insurance Brokers

Contact: Carl Thompson Phone: 205-776-2625 ; Fax: 205-776-1619 Email: cthompson@comsectorins.com Website: www.comsectorins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1M/$1M/$1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Chartis, Am Trust, Crum & Forester, Guarantee Insurance Co., Munich, Zurich Commercial Sector is a National Wholesaler. We specialize in assisting retail agents solve P & C problems, including Workers’ Comp. Community Association Insurance Solutions, LLC Contact: Gary J. Deck, VP Sales and Distribution Phone: 888-833-4158 ; Fax: 888-833-4159 Email: marketing@mgalive.com Website: www.mgalive.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $350 – Depending on the state ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: All States except ND,WY,OH,WA ■ Admitted Status: Admitted ■ Carriers Represented: PMA Companies Comp Solutions Network, Inc. Contact: Dianne Favro Phone: 713-690-3500 Ext. 41 ; Fax: 713-690-8484 Email: diannef@compsolutionsnetwork.com Website: www.compsolutionsnetwork.com ■ Markets Offered: Monoline Workers’ Comp, NonSubscriber Programs for Texas Employers ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $500K to $10M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers (Non-Subscribers): ACE American, American Southern, American Hallmark, Commercial Alliance, Great American, Independent American, Markel Essex, North American Capacity, North American Specialty, OneBeacon, Pam American, Service Lloyds, Western Heritage

CompWest Insurance Company Contact: Kristi Houston Phone: 714-641-9570 Email: khouston@compwestinsurance.com Website: www.compwestinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,500 ■ Limits: $1.5M ■ Brokered Business: Not Accepted ■ States Entered in: AZ CA CO ID NV OR UT ■ Admitted Status: Admitted INSURANCEJOURNAL.COM INSURANCEJOURNAL.COM

2016 Workers’ Compensation Directory Continental Brokers, Inc. Contact: Collier Simpson Phone: 866-386-4136 ; Fax: 601-898-4793 Email: cs@continentalbrokers.biz Website: www.continentalbrokers.biz ■ Markets Offered: Health Insurance, Managed Care, HMO, Short Term Medical, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: CNA, Hartford, Assurant, BCBS (some states) United HealthCare, Colonial Continental Risk Insurance Services Contact: Jeana Ramos Phone: 866-699-2747 ; Fax: 209-365-6040 Email: jeana@continentalriskins.com Website: www.continentalriskins.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: AK AR AZ CA CO FL GA ID NC NV NY OR TX UT WA ■ Admitted Status: Admitted & Non-admitted Continental Underwriters, Inc. Contact: C. Preston Herrington, III Phone: 804-643-7800 ; Fax: 804-643-5800 Email: preston@contund.com Website: www.contund.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: 500/500/500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Costanza Insurance Agency, Inc. Contact: Brian Costanza Phone: 800-346-0942 ; Fax: 972-991-2139 Email: b.costanza@cia-tx.com Website: www.costanzainsurance.com ■ Markets Offered: Workers’ Comp, GL, Comm Auto, Crime, EPL, EBL, Umbrella ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers Represented: Zurich Insurance Co. Don R. Jensen & Company Contact: Don R. Jensen & Company Phone: 630-734-3240 ; Fax: 630-734-3250 Email: apps@drjco.com Website: www.drjco.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: None ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic & AK, HI ■ Admitted Status: Admitted ■ Carriers Represented: Multiple AM Best “A” Rated Carriers

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Empire Underwriters, LLC

Contact: Underwriting Toll Free: 800-758-8113 Phone: 813-448-9300 ; Fax: 813-448-9310 Email: quotes@empireunderwriters.com Website: www.empireunderwriters.com ■ Markets Offered: Standalone Workers’ Comp, Staffing Workers’ Comp, Specialty Risk, Alternative Risk, PEO, Contractors GL, Excess, Pollution, Environmental, Liquor Liability ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: ACE/Chubb, AIG, Century Surety, Employers, Guard, Benchmark, Berkshire Hathaway, Endurance, ICW, Lloyds of London, RLI, RTW, Torus, and many others.. Empire Underwriters is National MGA, Insurance Wholesaler, and Excess & Surplus Lines facility. Our organization is dedicated to the success of agents and brokers nationwide and featuring Online Indications and Quotes for several products. Employer’s Comp Associates, Inc. Contact: Aaron Johnson Phone: 972-386-0150 ; Fax: 972-386-6350 Email: ajohnson@empcompinc.com Website: www.EmpCompInc.com ■ Markets Offered: Workers’ Comp, Workers’ Comp Alternative ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Berkshire Hathaway, Great American, American Hallmark, Texas Mutual and many others. Employers Assurance Company (EAC) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Most States Employers Compensation Insurance Company (ECIC) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: AZ CA CO FL GA ID IL MN MT MI NJ NV NY OR PA TX UT

Employers Insurance Company of Nevada (EICN) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: NV Employers Preferred Insurance Company (EPIC) Contact: Customer Service Phone: 800-700-9113 ; Fax: 888-527-3422 Email: customersupport@employers.com Website: www.employers.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Most States Fastcomp Contact: John Valko Phone: 800-476-2948 ; Fax: 330-319-7308 Email: jvalko@fastcomp.com Website: www.fastcomp.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $2,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Fastcomp.com FFVA Mutual Insurance Co. Contact: Customer Service Phone: 800-346-4825 ; Fax: 321-214-0220 Email: newbusiness@ffvamutual.com Website: www.ffvamutual.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: Varies by Industry ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: AL FL GA IN KY MS NC SC TN VA ■ Admitted Status: Admitted Friedlander Group, Inc. Contact: Cosmo Preaito Phone: 914-694-6000 Ext. 203 ; Fax: 914-694-6004 Email: cosmop@friedlandergroup.com Website: www.friedlandergroup.com ■ Markets Offered: Workers’ Comp & Multiple Classes ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,500 / $2,500 Restaurants ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Alliances With: New York State Insurance Fund

FUBA Workers’ Comp

Contact: Alicia Hamilton Phone: 888-262-4483 ; Fax: 888-871-7474 Email: fubawc@fubaworks.com Website: www.fubaworkerscomp.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Statutory ■ Brokered Business: Accepted provisionally ■ States Entered in: FL ■ Admitted Status: Admitted in FL ■ Carriers: Florida Citrus, Business & Industries Fund For more info, see our ad on pg 10 (Southeast) MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 35 MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 35

2016 Workers’ Compensation Directory Gorst & Compass Insurance Contact: Paul Laufer Phone: 818-507-1980 ; Fax: 818-545-3818 Email: plaufer@gorstcompass.com Website: www.gorstcompass.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA NV OR ■ Admitted Status: Admitted ■ Carriers Represented: 20+ Markets

Grand General Agency Contact: Drew Viersen or Dan Carter Phone: 800-869-2022 ; Fax: 888-767-0826 Email: commercial@thehelpfulpeople.com Website: www.thehelpfulpeople.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class ■ Limits: $1,000,000/1,000,000/1,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic & AK, AL, HI ■ Admitted Status: Admitted ■ Carriers Represented: Various Hamond Safety Management, LLC Contact: Rick Yu Phone: 516-488-2800 Ext. 4219 ; Fax: 516-488-2167 Email: Ryu@hamondgroup.com Website: www.hamondgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Unlimited by state statute ■ Brokered Business: Accepted ■ States Entered in: NY ■ Admitted Status: Admitted ■ Carriers Represented: NYSIF IAAC, Inc. (Membership Services Division of IIABNY) Contact: Customer Service Phone: 800-962-7950 ; Fax: 888-432-0510 Email: iiabny@iiabny.org Website: www.iiabny.org ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Brokered Business: Not Accepted ■ States Entered in: NY ■ Carriers: PMC Insurance IIABNY’s endorsed WC wholesaler represents several carriers. ICW Group Insurance Companies Contact: Gary Whitfield Phone: 800-877-1111 Email: enterprisemarketingteam@icwgroup.com Website: www.icwgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $2,500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA FL GA IL IN NC NJ NV PA SC TX WI ■ Admitted Status: Admitted ■ Alliances With: MEDEX

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Insential, Inc. Contact: Amanda Ballard Phone: 888-571-6160 ; Fax: 708-731-4040 Email: contact@insential.com Website: www.insential.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered: All States ■ Admitted Status: Admitted ■ Carriers Represented: Gateway Insurance Center Special Risks, Ltd. Contact: Ludmila Koval Phone: 888-773-7475 ; Fax: 413-781-0050 Email: lkoval@specilarisksltd.com Website: www.specialrisksltd.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $350 ■ Brokered Business: Not Accepted ■ States Entered: CT MA ME NH NY PA RI VT ■ Admitted Status: Admitted ■ Carriers Represented: The Hartford, Guard Insurance Group, AmTrust International Excess Companies Contact: Kenneth Kukral, CIC Phone: 800-937-3497 Ext. 2079 ; Fax: 216-342-7442 Email: kennethkukral@intlxs.com Website: www.intlxs.com ■ Markets Offered: Excess Workers’ Comp, PEOs, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by class, as low as $250 ■ Limits: Statutory + increased limits & excess limits ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic (monoline OH stop gap available) ■ Admitted Status: Admitted ■ Carriers Represented: Various IPA Risk Management, LLC Contact: Greg or Chase Phone: 201-797-1084 Ext. 201 ; Fax: 201-797-1076 Email: c.heitmann@ipariskmanagement.com Website: www.ipariskmanagement.com ■ Markets Offered: Health Insurance, HMO, Managed Care, PEO, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA CT DE FL MD NC NJ NY PA SC TX ■ Admitted Status: Admitted & Non-admitted ■ Alliances With: Yes - health benefits are integrated with workers’ comp benefits Irving Weber Associates, Inc. Contact: Christine Brazier Phone: 800-243-1811 Ext. 8207 ; Fax: 631-913-6035 Email: Info@iwains.com Website: www.iwains.com ■ Markets Offered: All Lines including Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various

Izzo Insurance Services, Inc. Contact: Mike Jones Phone: 800-800-1704 ; Fax: 630-582-2803 Email: MJones@IzzoInsurance.com Website: www.IzzoInsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust Companies, BerkleyNet, CNA, Employers Ins. Group, Hartford, ICW Group, Hartford Ins. Group, ICW Group, Meadowbrook, State Auto, Travelers Ins. Co., Zenith Insurance Jimcor Agencies Contact: Garrett Gioe Phone: 201-573-8200 Ext. 1202 ; Fax: 201-573-8820 Email: ggioe@jimcor.com Website: www.jimcor.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: Any Applicable per State ■ Brokered Business: Accepted ■ States Entered in: All Nonmonopolistic States ■ Admitted Status: Admitted ■ Carriers Represented: IG, AmTrust, Berkshire Hathaway, Travelers, Crum & Forster, ACE Keller & Co, Inc. Contact: John Barton Phone: 716-874-1644 ; Fax: 716-874-4920 Email: jbarton@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 ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Several!! King Insurance Support Systems Contact: Laura Fondarella Phone: 800-488-4096 ; Fax: 949-488-2259 Email: Marketing@kinginsuranceca.com Website: www.kinginsuranceca.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: Western States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Travelers, Berkshire Hathaway KZ Insurance Brokerage, LLC Contact: Mark Zeanah Phone: 530-926-6030 ; Fax: 530-926-6040 Email: info@kzib.com Website: www.kzib.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: BHHC- Oak River, Cypress, Redwood, Travelers and Others.

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2016 Workers’ Compensation Directory Libertate Insurance, LLC Contact: Sharlie Reynolds Phone: 407-613-5475 ; Fax: 407-613-5477 Email: sreynolds@libertateins.com Website: www.libertateins.com ■ Markets Offered: EPLI, PL/GL, Workers’ Comp, Employee Benefits, Commercial Auto/Fleet ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by program ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Mutliple LIG Marine Managers Contact: Karen Tischler 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: $10,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Various LowRateWorkComp Contact: Paul Farhood Phone: 850-625-5190 ; Fax: 888-625-2628 Email: gotcomp@yahoo.com Website: www.LowRateWorkComp.com ■ Markets Offered: Health Insurance, Payroll, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $4,000 ■ Brokered Business: Accepted ■ States Entered in: All States except WA ■ Alliances With: 4 PEOs – Writing All classes depending on state. MarketScout Chris Kerr - 972-934-4206 ; Dan Fouts - 972-934-4231 Jon Maloney - 770-262-0383 ; John McGee -570-554-4506 Don Osuna - 415-610-2838 ; Amber Hunter - 972-934-4209 Email: workcomp@msunderwriters.com ■ Markets: USL&H, Workers’ Comp, Oil & Gas, Social Svcs, Transportation, Construction, Healthcare & Manufacturing, debit experience mod accounts ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Over 20 national, regional & specialty carriers Maverick Commercial Insurance Services Contact: Mario Gomez Phone: 818-223-0011 ; Fax: 818-223-0012 Email: mariogomez@maverickinsure.com Website: www.maverickinsure.com ■ Markets: Workers Comp, Large Deductible & Retro Programs, Excess WC, USL&H, PEO & Aviation ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1mil/$1mil/1mil ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: AIG/Granite State/Commerce & Industry/ National Union- QBE, ICW, Zenith, Berkshire/ Cypress, AmTrust/Security National/Wesco/ Technology Ins/Sequoia, Applied Underwriters/California Ins Co, Companion, Everest, Starr Indemnity; Atlas/StarStone, BerkleyNet/Midwest Ins., CNA, Zurich, Safety National, Guarantee Ins Co, Republic Underwriters, Old Republic, Various PEO markets

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Maxim Insurance Group Contact: Scott Carde Phone: 813-689-5105 ; Fax: 813-354-2336 Email: mail@maximinsurancegroup.com Website: www.maximinsurancegroup.com ■ Markets Offered: Workers’ Compensation, DBA, Repatriation & Foreign Coverage, USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,500 ■ Limits: Statutory and up to $2M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers: AmTrust, Associated Industries, Bridgefield Casualty, Bridgefield Employers, Business First, AIG, OptaComp, Retail First, Rochdale, Security National, Technology, Wesco McClelland and Hine, Inc. Contact: Amicia Hine Phone: 210-293-6240 ; Fax: 210-293-6318 Email: amicia@mhi-mga.com Website: www.mhi-mga.com ■ Markets Offered: Occ. Acc., Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: TX ■ Admitted Status: Admitted & Non-admitted ■ Carriers: Travelers, AIG, First Comp, Redpoint, Zenith McLeckie Insurance Group Contact: Bill McLeckie Phone: 903-897-9090 ; Fax: 760-462-1696 Email: bill@mcleckie.com Website: www.mcleckie.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Accepted ■ States Entered in: AR FL LA OK TN TX ■ Admitted Status: Admitted ■ Carriers Represented: Travelers and various others. Meadowbrook Insurance Group Contact: Archie McIntyre - 800-482-2726 Email: programs@meadowbrook.com Website: www.meadowbrook.com ■ Markets Offered: Excess Workers’ Compensation, Specialty/Niche Programs, Workers’ Compensation ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by Program ■ Limits: Varies by Program ■ Brokered Business: Yes; Varies by Program ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: Star Ins. Co, Williamsburg National Ins. Co, Ameritrust Ins. Corp, ProCentury Ins. Co. Method Insurance Services Contact: Rob Hynek Phone: 888-981-1702 Email: submissions@methodinsurance.com Website: www.methodinsurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: Agency Appointments in AZ CA CO IA IL KS MO NE NV OK ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Accident Insurance Company, AIG, AmTrust, Amerisafe, Berkley Net, National Liability & Fire, Patriot, QBE, & RTW

Midlands Management Corp.

Oklahoma City, OK & Dallas, TX Phone: 800-800-4007 ; Fax: 405-840-5432 Email: marketing@midman.com Website: www.midlandsmgt.com ■ Markets Offered: Excess Workers’ Comp, Primary Workers’ Comp, Texas Non-Subscriber, Public Entity, Occupational Accident, Property & Casualty Lines ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AM Best “A” Rated Carriers For more info, see our ad on pg 8 (S. Central) Midwest Employers Casualty Company Contact: Renée Lunceford Phone: 636-449-7022 ; Fax: 636-449-7199 Email: rlunceford@mwecc.com Website: www.mwecc.com ■ Markets Offered: Workers’ Compensation: Excess Workers’ Compensation, Assumed Reinsurance, Group Captives, Large Deductible ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by risk ■ Limits: Up to Statutory ■ Brokered Business: Accepted ■ States Entered in: All States, District of Columbia ■ Admitted Status: Admitted

Midwestern Insurance Alliance, LLC Contact: Theresa Bailey Phone: 619-450-1739 ; Fax: 502-426-7067 Email: tbailey@mwiainsurance.com Website: www.midwesterninsurance.com ■ Markets Offered: Workers’ Comp, Trucking, Milk Haulers, Fuel Haulers, Consumer Recycling, Charter Bus, Limousine, Parcel Delivery, Wood Products ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple “A” rated carriers NBIS Contact: Brenda Wallace Phone: 770-257-1129 ; Fax: 770-257-1500 Email: contactus@nbis.com Website: www.NBIS.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: 100/500/100 500/500/500 1mm/1mm/1mm ■ Brokered Business: Accepted ■ States Entered in: All States except NY ■ Admitted Status: Admitted all states

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2016 Workers’ Compensation Directory Networked Insurance Agents Contact: Tam Duong Phone: 800-682-8476 ; Fax: 888-843-2535 Email: tam.duong@networkedins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: AmTrust, Applied Underwriters, ICW, The Hartford, Travelers, Preferred Employers, Guard, Everest, CNA, First Comp, Employers, Fireman’s Fund, Liberty Mutual, ACE, AIG, Chubb, Zenith Norman-Spencer Agency, Inc. Contact: Corky Breeden Phone: 937-432-1631 ; Fax: 937-432-1635 Email: corkybreeden@norman-spencer.com Website: www.norman-spencer.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp, Dividend Work Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Zenith, Amerisafe, AmTrust Number One Insurance Agency, Inc. Contact: Barbara Lobdell Phone: 508-634-7362 ; Fax: 508-634-2930 Email: blobdell@massagent.com Website: www.massagent.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: 100 / 500 / 100 + ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust Group, Norfolk & Dedham Group, The Hartford

Omega Insurance Solutions

Contact: Keith Steverson Phone: 866-997-0711 ; Fax: 888-611-9598 Email: wc@omega4agents.com Website: www.Omega4agents.com ■ Markets Offered: USL&H, Workers’ Comp, Hardto-Place Workers’ Comp, GL, Commercial Auto, Small BOPs ■ BOP available in all states including Florida. ■ Exclusive Domestic Employees Workers Comp program ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: WC standard limits or increased to $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: 17 WC carriers/4 PEOs – Writing most classes depending on state. Oryx Insurance Brokerage, Inc. Contact: Tom Pasquale Phone: 607-724-0173 ; Fax: 607-724-7266 Email: marketing@oryxinsurance.com Website: www.oryxinsurance.com ■ Markets Offered: Workers’ Compensation, GL, BA ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Brokered Business: Not Accepted ■ States Entered in: NY – Other States Eligible: CT DE IL MD NJ PA VA VT ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust 38 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016 38 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

Pacific Excess Insurance Marketing

Contact: Barry Colburn Phone: 800-222-5582 ; Fax: 714-228-7899 Email: Marketing@pacificexcess.com Website: www.pacificexcess.com ■ Markets Offered: Workers’ Comp, All Property & Casualty Risks ■ Phone Inquiries: Accepted ■ Minimum Premium: As Low As $500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: CA AZ NV ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust & The Zenith

Red Rock Financial Group, Inc. DBA: The Workers Compensation Insurance Place Contact: Lawrence Levine Phone: 1-877-572-6221 Ext. 501 ; Fax: 1-877-895-9011 Email: info@redrockfg.com Website: www.redrockfg.com ■ Markets Offered: Workers’ Comp (High Risk) Roofers, Framers, Excavators and many other class codes. ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,000 ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: Majority of states 42 ■ Admitted Status: Admitted & Non-admitted ■ Alliances With: PEOs

Pacific Excess Insurance Marketing is a Wholesaler/General Agent with access to many Standard, Surplus Lines and Workers’ Compensation Markets. Patriot Underwriters, Inc. Contact: Nicole Brewer Phone: 954-670-2900 ; Fax: 954-252-3758 Email: marketing@patnat.com Website: www.patriotunderwriters.com ■ Markets Offered: Workers’ Comp, Property & Casualty, Package, Business Auto ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted PMC Insurance Group Contact: David Malloy Phone: 781-449-7744 ; Fax: 781-449-7889 Email: dmalloy@pmcinsurance.com Website: www.pmcinsurance.com ■ Markets Offered: Workers’ Comp (General Industry), Workers’ Comp for Temp Staffing and Home Healthcare ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Carriers: AIG, Amtrust, BerkleyNet, Hartford, Guard, Guarantee, Bershire Hathaway, others

Preferred Property Programs

Contact: Carmen Suarez Phone: 888-548-2465 ; Fax: 732-946-0547 Email: info@ppp-quotes.com Website: www.ppp-quotes.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: 100/500/100 ; 500/500/500 ; 1,000/1,000/1,000 ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: A- X rating by AM Best Specializing in the commercial real estate marketplace. We offer Umbrellas, EIL & WC for Condos, HOA’S, PUD’S, Apartments and Timeshare Associations. We also offer umbrellas and B&M policies for commercial lessors risk only (LRO).

Risk Innovations, LLC

Contact: Jeff Sandy Phone: 816-251-1608 ; Fax: 866-262-5802 Email: jsandy@riskinnovationsllc.com Website: www.riskinnovationsllc.com ■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: State min. ■ Limits: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Over 20 Risk Innovations is a National Wholesaler that specializes in Workers’ Compensation and Personal Lines Insurance. They offer custom solutions for your clients by providing unparalleled underwriting expertise and carrier exclusive partnerships with 20 WC markets available for most risks. They specialize in hard to place accounts with competitive pricing. Risk Placement Services, Inc. Contact: Patrick Edwards Phone: 312-803-6334 ; Fax: 312-803-6309 Email: Patrick_Edwards@RPSins.com Website: www.rpsins.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: ACE, AIG, CNA, Hartford, Safeco & Zurich

RoamNet Insurance Marketing Programs

Contact: Patty Lawson Phone: 877-272-0333 ; Fax: 909-987-2245 Email: pattyl@roamnetins.com Website: www.roamnetins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,500 ■ Limits: High limits with small premiums ■ Retail Agents/Brokers: Accepted ■ States Entered: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Employers, Hanover, Travelers & Zenith

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2016 Workers’ Compensation Directory Russell Bond & Co., Inc. Contact: Derek Bucciferro Phone: 800-333-7226 ; Fax: 800-677-6779 Email: dbucciferro@russellbond.com Website: www.russellbond.com ■ Markets Offered: 24 Hour Policy, Excess EL Public Entities (NY Only), Excess Workers’ Comp, Health Ins, HMO, Managed Care, USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: $1M EL - Statutory WC ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: ACE, Chartis, Safety National, Capitol, MidWest, Arch, AmTrust RWISI Group Contact: Randy White Phone: 813-220-9220 ; Fax: 305-436-3786 Email: randy@rwisi.com Website: www.rwisi.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted Safety National Casualty Corporation Contact: Karla Antrobus Phone: 888-995-5300 ; Fax: 314-995-3843 Email: karla.antrobus@safetynational.com Website: www.safetynational.com ■ Markets Offered: Excess WC, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies by state ■ Limits: Varies by state ■ Brokered Business: Accepted ■ States Entered in: All States & Canada ■ Admitted Status: Admitted SFA-5Star Specialty Programs Contact: Dee Dee Bloom Phone: 702-740-8470 ; Fax: 702-740-8472 Email: dd.bloom@5starsp.com Website: www.5starsp.com/SFA/default.aspx ■ Markets Offered: Excess Workers’ Comp, Large Deductibles, Buy-Down/Layer Coverage, SelfInsurance Bonds, Cash Flow Only Policies ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Excess WC Carriers Sole Proprietor Solutions Contact: Jade Sullivan Phone: 843-822-5180 ; Fax: 843-822-5180 Email: solepropsolutions@gmail.com Website: www.soleproprietorsolutions.com ■ Markets: Minimum premium Workers’ Comp & Accident Coverage in a packaged program that is less expensive than the assigned risk program. ■ Phone Inquiries: Accepted ■ Minimum Premium: $750 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Combined Insurance Company and Guarantee Insurance Company

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Specialized Insurance Contact: Richard Rossi Phone: 631-758-6780 ; Fax: 631-758-6781 Email: weinsurefun@aol.com Website: www.specializedinsurance.com ■ Markets Offered: Health Insurance, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $3,500 ■ Brokered Business: Accepted ■ States Entered in: FL NY ■ Carriers Represented: GIC, Rochdale, Technology, AIG, etc. Sports & Fitness Insurance Corporation (SFIC) Contact: Kim Tucker Phone: 800-844-0536 ; Fax: 601-853-6141 Email: askus@sportsfitness.com Website: www.sportsfitness.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Safeco, Hartford

State Compensation Insurance Fund of California

Contact: Customer Service Phone: 888-STATEFUND (888-782-8338) Email: webmaster@scif.com Website: www.statefundca.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Depends on class ■ Brokered Business: Accepted ■ States Entered in: CA ■ Alliances With: State Fund Medical Provider Network For more info, check out our ad on page 7 (West)

StateFund First

Contact: Riley Binford Phone: 415-536-8438 ; Fax: 415-536-6003 Email: riley_binford@statefundfirst.com Website: www.statefundfirst.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: $1,000,000 ■ Brokered Business: Accepted ■ States Entered in: CA ■ Admitted Status: Admitted ■ Carriers Represented: California State Compensation Insurance Fund For more info, check out our ad on page 5 (West) Stonehenge Insurance Solutions, Inc. Contact: Troy Reynolds Phone: 561-746-5027 ; Fax: 561-746-5028 Email: treynolds@stonehengeis.com Website: www.stonehengeis.com ■ Markets Offered: Most Commercial Lines & Workers’ Comp for PEO and Staffing Companies ■ Phone Inquiries: Accepted ■ Minimum Premium: $150,000 ■ Limits: Varies based on product ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic and Alaska

SWBC Contact: Lisa Pinto Phone: 210-525-1241 ; Fax: 210-321-7530 Email: swbcinfo@swbc.com Website: www.swbc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25,000 ■ Limits: 100/100/500 500/500/500 1,000,000/1,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Major Carriers Target Managers Insurance Services, Inc. Contact: Rhea Pimentel Phone: 702-588-5300 ; Fax: 702-588-5310 Email: Submissions@targetmanagers.com Website: www.targetmanagers.com ■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, Amerisafe, AmTrust, Employers Compensation, Guarantee Insurance, National Casualty, North Point, Praetorian, QBE, Zurich & many others.

Tejas American General Agency

Contact: Bart Koch Phone: 888-999-8242 ; Fax: 512-342-2803 Email: marketing@taga1.com Website: www.taga1.com ■ Markets Offered: USL&H, Workers’ Comp, Non-Subscription (NM, OK, TX only) ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Not Accepted ■ States Entered in: AR LA NM OK TX ■ Admitted Status: Admitted ■ Carriers: Accident Fund, ACE USA, AIG, Amerisafe, AmTrust, Commericial Alliances, Employers, Essex Ins Co, First Comp, Great American, Hallmark Specialty, Hanover, ICW Group For more info, see our ad on page 1 (S. Central)

Texas Mutual Insurance Company

Contact: Customer Service 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: Competitive premiums ■ Brokered Business: Accepted ■ States Entered in: TX For more info, see our ad on pg 3 & 5 (S. Central) Texas Oil & Gas Association Workers’ Comp Safety Group Contact: Jim Sierra 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 ■ Admitted Status: Admitted ■ Carriers Represented: Texas Mutual Ins. Company MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 39 MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 39

2016 Workers’ Compensation Directory The American Equity Underwriters, Inc. Contact: Secily Dumas Phone: 251-415-3638; Fax 251-690-4299 Email: secily.dumas@amequity.com Website: www.amequity.com ■ Markets Offered: USL&H ■ Phone Inquiries: Accepted ■ Minimum Premium: $15,000 ■ Limits: Federal Acts - Statutory, EL - $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: N/A, U.S. Dept. of Labor Approved ■ Carriers Represented: U.S. Department approved carrier for USL&H and extensions

Truckers Insurance Associates Contact: Sandi Filean Phone: 800-652-9515 ; Fax: 515-276-1418 Email: sfilean@truckers-insurance.com Website: www.truckers-insurance.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $25 ■ Brokered Business: Not Accepted ■ States Entered in: AR AZ CO IA IL IN KS MI MN MO NE OK SD UT WI ■ Admitted Status: Admitted ■ Carriers Represented: Travelers/Northland, and Dakota Truck Underwriters

The Mechanic Group, Inc. Contact: Marc Katz Phone: 845-735-0700 ; Fax: 845-735-8383 Email: mkatz@mechanicgroup.com Website: www.mechanicgroup.com ■ Markets Offered: Workers’ Comp and all other lines for Security Guards, Alarms and Investigators. ■ Phone Inquiries: Accepted ■ Minimum Manual Premium: $5,000 ■ Limits: All ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers: The Hartford, Berkshire Hathaway, AIG

U.S. Risk Insurance Group, Inc. Contact: Ralph Tribendis Phone: 804-441-6126 Email: ralph.tribendis@usrisk.com Website: www.usrisk.com ■ Markets Offered: Workers’ Comp (All Lines), Monoline Workers’ Comp, Excess Workers’ Comp, USL&H, Occupational Accident, Non-Subscriber ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: We access Work Comp from 20+ Carriers

The MEMIC Group See our ad on page 9 (Southeast) or page 3 (East) Contact: Marcia Hartt Phone: 207-791-3370 Email: mhartt@memic.com Website: www.memic.com/thechoice ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Brokered Business: Not Accepted ■ States Entered in: All Non-monopolistic States ■ Admitted Status: Admitted We’re specialists in workers’ compensation. Licensed across the country and rated A (Excellent) by A.M. Best, MEMIC understands the workers’ comp insurance business. From our workplace safety expertise to our refined knowledge of best practices for managing claims, when it’s time to choose a workers’ compensation insurer, the choice is MEMIC. Total Program Management Contact: Matt Blake Phone: 631-319-6210 ; Fax: 631-319-6208 Email: matthew.blake@tpmrisk.com Website: www.tpmrisk.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: Varies ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: AmTrust, Berkshire Hathaway, Crum & Forster, Falls Lake, American Mining

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Unisource Program Administrators Contact: Lana Potts-Buri Phone: 941-308-1918 Email: Lana.Potts-Buri@UnisourcePA.com Website: www.UnisourcePA.com ■ Markets Offered: Workers’ Comp and P & C Markets ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Limits: As Requested ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Amerisafe, CastlePoint, Chartis, Employers, FirstComp, FFVA, LION, Normandy Harbor, eQBE, and V3 Insurance Partners USG Insurance Services, Inc. Contact: Jennifer Kessel Phone: 724-754-9052 ; Fax: 724-265-5751 Email: jkessel@usgins.com Website: www.usgins.com ■ Markets Offered: Standard, Hazardous & Excess Workers’ Comp, USL&H, Staffing Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Varies ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: 20+ carriers Work First Casualty Company Contact: Bruce Winterrowd; VP of Underwriting/Mktg Phone: 630-416-7954 Email: bwinterrowd@workfirstcasualty.com Website: www.workfirstcasualty.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100,000 ■ Limits: $1,000,000 Employer’s Liability ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic or CA, CO, MA, ME, NH and VT ■ Admitted Status: Admitted ■ Alliances With: American Staffing Association, Broadspire

WorkCompGuard / Willis Programs Contact: Eric Langlois / Kortney Borgosz Phone: 802-264-9525 / 603-334-3085 Email: eric.langois@willistowerswatson.com Email: kortney.borgosz@willistowerswatson.com Website: www.workcompguard.com ■ Markets Offered: Workers’ Comp for Home Healthcare, Medical Staffing/Equipment Providers/ Facilities, Dealers, Destination Resorts, Community Associations, Manufacturers, Distributors, Installers, Business Equipment Rental, Restaurants, Pizza Delivery and hundreds of other classes. ■ Phone Inquiries: Accepted ■ Minimum Premium: As low as $1,000 depending on class ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Various

World Wide Specialty Programs

Contact: Dorothy Taylor ; Robert Thompson Phone: 800-245-9653 or 631-390-0900 Fax: 631-390-0922 Email: dtaylor@wwspi.com ; rthompson@wwspi.com Website: www.wwspi.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $50,000 ■ Limits: State Mandated ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Zurich World Wide Specialty Programs has lead the market with the most comprehensive program for the staffing industry for over 50 years. Our partnership & understanding of how the staffing industry works allows us to be the premier source for all Staffing insurance lines including Staffing Workers’ Comp. Wrap Up Insurance Solutions Contact: Brian Billhartz Phone: 636-489-0185 ; Fax: 636-536-7473 Email: bbillhartz@wrapupsolutions.com Website: www.wrapupsolutions.com ■ Markets Offered: Excess Workers’ Comp, Workers’ Comp, Wrap Ups ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Limits: $100MM ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Zurich, AIG, ACE, Liberty Mutual, ARCH, Old Republic, Travelers

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90 Since 1926, the AAMGA has empowered a diverse network of underwriting insurance specialists and improved access to worldwide insurance markets. Networking, Education & Advocacy for the Global Specialty Distribution Marketplace

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EXPANDING GLOBALLY RESPONDING LOCALLY

Idea Exchange

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Who Moved Your Cheese? The End (for Now) of Market Cycles

By Chris Burand

he good news is that for the foreseeable future, with certain exceptions, you will not have to tell your clients their premiums are increasing 10 percent or more. Property/casualty carriers collectively, not necessarily individually, have more money than they know how to spend. Here are some facts (per A.M. Best):

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• Surplus at year-end 2015 is estimated at approximately 270 percent of what it was in 1996. It has increased materially almost every year except 2008. This is in the face of more people, more cars, more property, and more plaintiff attorneys. • Over the past 10 years, earned premiums have increased almost twice as much as claim dollars paid. The industry is making money at a faster pace than claims are being incurred. • Claim frequency, in pure number of claim terms, has decreased materially over the past 20 years. • Claim frequency on a net written premium (NWP) basis has decreased approximately 30 percent. • One often overlooked fact in this day of low investment yields and excellent combined ratios (98 percent reported and only 94 percent on a normalized basis), is net investment income is estimated to be 518 percent greater than net underwriting

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income. Carriers are making a lot of money. Collectively, they have no need to increase rates. These results strongly suggest a long, soft market. Moreover, implementation of technology specific to reducing claims, not predictive modeling, will continue to decrease losses further. The more losses decrease, the more surplus will increase. The more surplus increases, the more likely rates will remain soft. Keep in mind, the P/C market cycle changes on decreases in surplus, not profitability. What might cause surplus to decrease? The obvious factors. Examples include: • A financial crash. If this happens, agents and companies will likely have more to worry about than rates increasing. • A series of large, insured weather catastrophes. • Insurers being faced with large cyber liability claims they did not mean to insure or something similar related to new technology. This would be akin to the asbestos claims decades ago that are still affecting some carriers today. One or more of these events is likely, but the event is not predictable. If it occurs, we will likely have other issues to deal with, too, so these will not be standalone factors. These facts mean rates will likely be flat to negative for almost all lines in most geographic locations for the foreseeable future. Some property rates will continue to increase for now, but even within property, new technology already exists that will likely improve results so significantly over time that carriers will eventually even make money in these lines, too. Some carriers already recognize the advantage of this technology and are providing credits. And credits mean decreased prices. If carriers ever truly awaken to the opportunity afforded by high premiums to give credits for homeowners installing better roofs to resist hail, profits will improve even more. Installing new roofs and techINSURANCEJOURNAL.COM

nology takes time, but if casualty is already soft and property will become more soft as the technology is installed, the soft market will likely be elongated. This means companies will have to merge, acquire, or invest in agents that generate new sales.

What to Do?

For agents to thrive in the absence of rate increases and likely rate decreases, they must: 1. Sell, sell, sell new accounts. Agencies must achieve a net increase in accounts annually. To make contingencies, afford expense increases, and survive and definitely to thrive, agencies must have a sales culture. This means stop paying producers that sit around waiting for the phone to C ring. CSRs can do that job just as effectively and for less money. Use the difference toM invest in sales or marketing, because new Y sales will be more important than any timeCM in the lifetime of most agencies. MY 2. Ditch some carriers. Some carriers do not have the financial strength to cut ratesCY enough for agents to sell their products CMY and for the carrier to still make money. K Agents need to ditch these carriers. 3. Manage agencies more effectively. Better management is essential because agencies will have to become more efficient. More efficiency will be required because expenses will continue to increase while rates remain flat to down. This is all good news for the agencies that have a sales culture and are run efficiently. Looking back, these agencies likely

will realize this is the best combination for them to succeed. So much of the competition will not wake up in time to proactively address this paradigm change, which means agencies with strong sales cultures will be able to write more business than Self Serve.pdf 1/5/16 ever. The same agents that 1keep waiting12:48 for

Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-485PM 3868. E-mail: chris@burand-associates.com.

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a hard market will fail to keep their clients adequately apprised of rate decreases. This will make them vulnerable. The most effective agents are telling their clients what to expect relative to rates, thereby managing client expectations and fencing off competition simultaneously. Alternately, companies may squander their surplus on wasteful mergers and acquisitions. Or surplus may plateau and begin decreasing as profits decrease, but that is five to 10 years down the road. If that happens, the best agents coming out of what will be an historic soft market will be perfectly positioned to take advantage of the hard market or continue riding the wave of an even longer soft market.

4/22/16 11:37 AM

MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 43

Idea Exchange

Marketing

How to Grow Your Insurance Agency One Call At A Time Local Strategies to Stand Out in a Challenging Lead-Acquisition Marketplace

By Johnna McCooey

he insurance industry is spending big on local marketing, but the results individual agencies experience depend on the tactics they execute. For independent agents and brokers looking to stand out online, positive web reviews and a mobile-optimized website are not enough to ensure a high search ranking. Firms must think strategically about how they access high-intent, high-quality leads in the path to purchase. Spending on advertising within the insurance industry doubled between 2000 and 2009, to more than $4 billion per year. But with fewer ways to track the results of offline initiatives, more agents doubt the effectiveness of the marketing channels and methods they’ve used for decades. Industry analyst Street Fight’s Local Merchant Survey found that small and mid-size businesses (SMBs) are spending the bulk of their marketing budgets on online channels, with 61 percent allocating a minimum of 25 percent of their budgets to online advertising. This can be seen among health insurers. eMarketer forecasts the industry will spend $2.55 billion on online and mobile advertising by 2019.

The Online Challenge for Insurance Providers

With more than 1.1 million Internet 44 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016

searches per month in the sector, it has become increasingly difficult for insurance ads to have an impact. When consumers search for insurance on the web, they’re more likely to use general keywords than branded terminology. (Think “auto insurance,” as opposed to “State Farm motorcycle insurance in Topeka.”) This can cause consumers to be confused about the differences between insurance providers, and it makes it difficult for brands to stand out. Exacerbating this challenge is the recent announcement by some of the largest search engines that they will no longer show paid ads along the right-hand side of the search engine results pages. This affects insurance SMBs who enroll in pay per click campaigns to drive leads, generate phone calls, promote downloads, or achieve any of a dozen common marketing goals. It doesn’t take many searches to see that some of the largest insurance companies are spending millions for online marketing strategies to ensure their listings come up first when consumers search for broad insurance keywords. Those clicks are simply too expensive, and the margin of error too small for local insurance agencies to compete. Additionally, providers also have to compete with the noise being generated by the traditional advertising market, where between 10 and 15 different insurance television campaigns are running at any given time. The challenge for SMBs, and even larger insurance companies is how to gain mindshare and reach consumers at their most optimal moment of need.

The number of single-parent households in the U.S. doubled in 1970, increasing the number of insurance decisions made by women. People are waiting longer to get married, affecting their need for life insurance policies. There are many more multicultural markets than ever before, with white non-Hispanics making up 69 percent of the population compared to 83 percent 40 years ago. Also, the do-it-yourself insurance market has been made popular by the Millennial generation, the 76 million people born between the early 1980s and the early 2000s. According to industry analyst BIA/ Kelsey, 48 percent of Millennials turn to the web first when shopping for insurance, compared to only 28 percent of Baby Boomers. Additionally, the ease of buying policies online has caused brand loyalty to take a back seat — it’s easier for consumers to price shop and make educated decisions about their policy versus a competitor’s. This is forcing companies that once mar-

A Paradigm Shift

With the advent of the Affordable Care Act requiring everyone in the U.S. to be covered by health insurance, insurance agents and brokers are juggling their marketing and advertising messages to resonate with several different target markets. Additionally, societal changes shift the demographics of insurance buyers: INSURANCEJOURNAL.COM

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keted only through agents to appeal directly to consumers. These changes challenge insurance providers, as they need to shift their marketing messages and methods to reach their target markets and differentiate themselves from the crowd.

Generating Real Results

With so much competition in the insurance industry, growing agencies can no longer afford to sit back and wait for customers to find them.

When businesses aim to generate leads, the key is in capturing the best leads at the perfect time. Website clicks are useful, but phone calls and visits to an agency’s brickand-mortar location are far more indicative of a successful strategy. According to BIA Kelsey, 66 percent of SMBs rate phone calls as a good or excellent source of leads (well exceeding online forms, emails, or clicks). Calls are rated highest within professional services like insurance, which places a high value on new customer acquisition and underscores the opportunity to drive phone leads. As buyer demographics change, insur-

ance companies must shift their marketing messages and methods to reach their target customers. Using a strategy that generates phone leads, insurance providers can target consumers based on the type of insurance they are looking for and their geographic locations. These strategies also allow businesses to only pay for leads that convert. These strategies complement the traditional brand awareness campaigns.

Delivering on Marketing ROI

Phone call leads complement traditional brand awareness campaigns, but they are very different for return on investment (ROI). Whereas an insurance business may have to wait days, weeks or even months, to gather enough data to evaluate the effectiveness of a brand awareness campaign, the results of performance marketing phone leads are accessible right away. And timing is everything. Although chance encounters via search engine optimization, search engine marketing, social media, and email campaigns can produce website clicks, they don’t target consumers at key points in the purchase cycle, and they don’t result in conversions at a mass scale. A pay per call program improves ROI by deploying advertising budgets more effectively. Using pay per call, the advertiser makes a competitive bid that it is comfortable paying for, and then pays only when the call meets its qualifying requirements. It’s a much more targeted approach that doesn’t eat into margins. With so much competition in the insurance industry, growing agencies can’t afford to sit back and wait for customers to find them. Strategic pay per call lead initiatives offer a way for firms to reach out at the moment when consumers are most likely to be ready to purchase — ensuring a growing agency is flooded with new leads.

AAMGA www.aamga.org 41 Abram Interstate www.abraminterstate.com W8 Academy of Insurance www.ijacademy.com 47 Accident Fund www.accidentfund.com SE9 Amerisafe www.amerisafe.com SC6 SE5 Anderson & Murison www.andersonmurison.com 43 Applied Underwriters www.auw.com 4, 5, 48 Arrowhead General Insurance Agency www.arrowheadgrp.com 2 Atlas Financial Holdings www.atlas-fin.com 17 Atlas General LLC www.ATLAS.US.com 14 Boston Insurance Brokerage www.bostonbrokerage.com 42 Brecht & Associates www.brechtassoc.com SC7 Burns & Wilcox Ltd. www.burnsandwilcox.com 9 California Earthquake Authority mvp.earthquakeauthority.com 3 Century National www.cnico.com W11 Chubb www.chubb.com 13 FAIA www.faia.com SE3 FUBA Workers’ Comp www.fubaworkerscomp.com SE10 Insurance Technologies Corp. www.getitc.com 31 InsurBanc www.insurbanc.com 23 Louisiana Commerce & Trade Assoc. www.lctacomp.com SC9 M.J. Hall & Company www.mjhallandcompany.com W10 MEMIC www.memic.com SE9, E3 Midlands Management Corporation www.midlandsmgmt.com SC8 Monarch E&S Insurance Services www.monarchexcess.com W3 MUSIC www.music-ins.com 21 Pacific Gateway Insurance Services www.pgiainsurance.com W9 PersonalUmbrella.Com www.personalumbrella.com 7 Philadelphia Insurance Companies www.phly.com 3, W12 Regions Bank www.regions.com 15 ReSource Pro www.resourcepro.com 19 Rockford Mutual Insurance Company www.rockfordmutual.com M5 Siracusa Staffing & Leasing www.ssandlnow.com SE4 State Compensation Insurance Fund www.statefundca.com W7 State Fund First www.statefundfirst.com W5 Tejas American General Agency www.taga1.com SC1 Texas Mutual www.texasmutual.com SC3, SC5 United Fire Group www.ufgsolutions.com E5

McCooey is vice president of digital media services at Soleo Communications. INSURANCEJOURNAL.COM

MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 45

Closing Quote The Feds, the States and Self-Driving Cars

By Hilary Rowen

big question looming is whether the federal government or state governments will play the primary role in setting standards for self-driving cars. Historically, the federal National Highway and Transportation Safety Administration promulgated automobile equipment safety standards while the states regulated the use of vehicles on their roads. Recent actions by NHTSA and the California Department of Motor Vehicles illustrate the growing tension surrounding the regulation of self-driving cars.

Two Frameworks

Last December, the California DMV issued draft regulations for public use of self-driving cars. The regulations expressly exclude self-driving cars that do not have operator controls — no steering wheel, no brake pedal, no accelerator pedal. If adopted, this regulation would preclude public use of self-driving cars without operator con-

trols in California. In February, the NHTSA issued an interpretive letter to Google on the application of various Federal Motor Vehicle Safety Standards to autonomous vehicles without operator controls. The key finding in the interpretive letter is the agency’s conclusion that in a car without operator controls, the software controlling the car is the “driver.” The NHTSA concluded that a self-driving car without operator controls could not satisfy many of the current FMVSS standards, requiring either the promulgation of a new set of equipment standards specific to self-driving cars or the issuance of exemptions by the NHTSA. While the NHTSA focuses on specific equipment requirements — for example turn-signal controls — the draft California DMV regulations require assessment of the overall performance of the self-driving car. The NHTSA approach was designed to address incremental safety improvements; the DMV approach to provide a holistic framework for new technology.

A Patchwork of Regulation

Absent federal standards that override state requirements for self-driving cars, a self-driving car without operator controls could at some point reach a state border and stop because the software knows that it is not compliant with the provisions of adjoining state’s motor vehicle code.

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‘…it is likely that either Congress will enact legislation preempting conflicting state laws or state voters will pressure state legislatures to allow them access to new technologies available in adjoining states.’

When state vehicle safety standards are inconsistent, the “dormant” interstate commerce clause can be triggered. The leading U.S. Supreme Court case on inconsistent state vehicle safety standards dates to 1959. In that case, Bibb v. Navajo Freight Lines, Illinois had mandated curved mudguards on heavy trucks. Arkansas mandated straight mudguards. Straight mudguards were legal in every state other than Illinois and were the interstate trucking industry standard. There was no federal mudguard standard. The U.S. Supreme Court concluded that the Illinois curved mudguard statute placed an unconstitutional burden on interstate commerce, but noted that a new safety device, out of line with the requirements of other states, could be so compelling that the innovating state need not be the one to give way. It is likely that Navajo Freight

Lines will never be applied to

self-driving cars. Secretary of Transportation Anthony Foxx has announced that the NHTSA will issue guidance this year on testing protocols and benchmarks for autonomous vehicles. This suggests that the NHTSA may shift to a more holistic approach, although one that is likely to differ from the California DMV. Even if NHTSA does not act before self-driving cars are lawfully sold to the public in some state, when those cars reach a state line and stop operating, it is likely that Congress will enact legislation preempting conflicting state laws, or state voters will pressure state legislatures to allow them access to new technologies available in adjoining states. Rowen is a partner at Sedgwick LLP in San Francisco. Phone: (415) 781-7900. Email: hilary.rowen@sedgwicklaw.com. INSURANCEJOURNAL.COM

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