Insurance Journal West 2017-05-01

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Contents May 1, 2017 • Vol. 95 No. 9 • West

West W1 California Jury Returns $454M Verdict in Hospital Gown Suit

W6 MAKING A FEDERAL CASE OUT OF ‘LEGAL’

MARIJUANA INSURANCE CLAIMS

National 10 How Future Tech Could Change Risk and Loss: Allianz

W2 Spotlight: Workers’ Compensation

12 Online Rideshare Insurance Offering Debut by CoverHound

W2 Former Mayor of California City Files Suit over Wife’s Ruptured Implants

16 Deal Activity Slows, Demand Remains Healthy: MarshBerry 18 Spotlight: How New Technology Is Improving Workers’ Comp

W4 Southern California Couple Who Charged Police with Racism Nabbed for Fraud W4 Feds to Use Fires to Lower Washington Wildfire Risks

20 Workers’ Comp Programs Assist Workers in Addiction Fight

W6 Making a Federal Case Out of ‘Legal’ Marijuana Insurance Claims

24 Special Report: Commercial Auto: The Long Road to Profitability 27 Closer Look: What to Know About Underwriting Bars & Restaurants 30 2017 Workers’ Compensation Directory

Idea Exchange 40 The Competitive Advantage: Chris Burand 42 Closing Quote: Why the Focus Should Be on Older Workers

18

HOW NEW TECHNOLOGY IS IMPROVING WORKERS’ COMP

Departments 11 Declarations 11 Figures

40 AGENCY-CARRIER CONTRACT NEGOTIATIONS 6 | INSURANCE JOURNAL | WEST MAY 1, 2017

15 Business Moves 22 MyNewMarkets INSURANCEJOURNAL.COM

OPENING NOTE

Write the Editor: awells@insurancejournal.com

In Denial Over Disruptive Technologies

T Publisher Mark Wells mwells@wellsmedia.com

EDITORIAL

SALES

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

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

East Editor Elizabeth Blosfield eblosfield@insurancejournal.com

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

Chief Content Officer Andrew Simpson asimpson@insurancejournal.com

Southeast Editor/MyNewMarkets Amy O’Connor aoconnor@insurancejournal.com South Central Editor/ Midwest Editor Stephanie K. Jones sjones@insurancejournal.com West Editor Don Jergler djergler@insurancejournal.com International Editor L.S. Howard lhoward@insurancejournal.com Columnists Chris Burand

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

Contributing Writers

Insurance Markets Manager Ana Ceballos, Christopher Darst, Kristine Honey (619) 584-1100 X132 Scott DiSavino, Sharon Emek, Bob khoney@insurancejournal.com Salsberg, Lisa Shumaker Social Media Manager Ly Short (619) 890-7735 IJ ACADEMY OF INSURANCE Lshort@insurancejournal.com Director Patrick Wraight Classifieds, Jobs, pwraight@ijacademy.com Agencies Wanted/For Sale Sr. Sales & Marketing Coordinator Associate Director Kelly De La Mora (800) 897-9965 X125 Barbara Whiffen kdelamora@insurancejournal.com bwhiffen@ijacademy.com

ADMINISTRATION

Chief Financial Officer Mark Wooster mwooster@wellsmedia.com

MARKETING

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

NEW MEDIA

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

DESIGN/WEB

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

CIRCULATION

Circulation Manager Elizabeth Duffy eduffy@wellsmedia.com

here’s an apparent lack of awareness among many risk professionals on existing and emerging technologies, including telematics, sensors, the Internet of Things (IoT), smart buildings and robotics, and their associated risks, according to the survey report by Marsh and the risk management society, RIMS. When presented with 13 common disruptive technologies, 24 percent of the respondents in the survey said their organizations did not currently use or plan to use any of them.

The authors of the 14th annual Excellence in Risk Management report find this surprising, considering other studies have found more than 90 percent of companies either using or evaluating IoT technology or wearable technologies.

The report also found that despite the impact disruptive technology can have on an organization’s business strategy, model, and risk profile, a majority of respondents — 60 percent — said they do not conduct risk assessments around disruptive technologies.

“Today’s disruptive technologies will soon be — and in many cases already are — the norm for doing business,” said Brian Elowe, Marsh’s U.S. client executive leader and co-author of the report. “Such lack of understanding and attention being paid to the risks is alarming. Organizations cannot fully realize the rewards of using today’s innovative technology if the risks are not fully understood and managed.”

The authors see all of this as an opportunity for risk professionals to close the gap when it comes to understanding and managing disruptive technology risks. But it means risk managers must be willing to play a leading role as their organizations address complex challenges in this environment. Previous Excellence studies have shown that C-suite executives and boards of directors want to know what risks loom ahead for their organizations and are increasingly relying on risk professionals to provide that insight.

“As organizations adapt to innovative technologies, risk professionals have the opportunity to lead the way in developing risk management capabilities and bringing insights to bear on business strategy decisions,” said Carol Fox, vice president, strategic initiatives for RIMS and co-author of the report. “As a first step, risk professionals are FOR QUESTIONS advised to proactively educate themselves REGARDING SUBSCRIPTIONS: Call: 855-814-9547 about disruptive technologies, including what Outside the U.S., call 847-400-5951 or you may subscribe or change your address online at: is already in use at their organizations, what insurancejournal.com/subscribe technologies may be on the horizon, and the Insurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media respective risks and rewards of using such Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at additional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 technology.” per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this pub The Excellence survey, “Ready or Not, lication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended Disruption is Here,” is based on more than to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2016 Wells 700 responses to an online survey and a series Media Group, Inc. All Rights Reserved. Content may not be photocopied, reproduced or redistributed without written permission. of focus groups with leading risk executives Insurance Journal is a publication of Wells Media Group, Inc. POSTMASTER: Send change of address form to Insurance Journal, in January and Circulation Department, PO Box 708, Northbrook, IL 60065-9967 February 2017.

ARTICLE REPRINTS: For reprints of articles in this issue,

‘Today’s disruptive technologies will soon be — and in many cases already are — the norm for doing business.’

Andrea Wells Editor-in-Chief

8 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

contact: Kelly De La Mora at 1-800-897-9965 ext. 125 or kdelamora@wellsmedia.com Visit insurancejournal.com/reprints/ for more information.

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National

How Future Tech Could Change Risk and Loss: Allianz Report

By L.S. Howard

T

echnology is expected to be a major driver of liability claims in the years ahead – cutting frequency and increasing new threats such as cyber, product liability and recall risk, according to a report published by Allianz Global Corporate & Specialty (AGCS).

So-called smart factories, for example, will likely reduce workplace accidents, and driverless cars are expected to dramatically reduce accident rates over time.

At the same time, business models in the digital economy “are more complex and without borders,” which make “liability harder to apportion and claims more complex to settle,” said the report, titled “Global Claims Review – Liability in Focus.”

“Autonomation is likely to lead to increased product liability for machinery and component manufacturer and software providers in particular,” Allianz said.

10 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

“The risk landscape for companies is constantly shifting with liability risks on the rise globally,” said Alexander Mack, AGCS board member and chief claims officer. “New technologies such as the internet of things, autonomous mobility or 3D printing will create fundamentally new liability scenarios for companies in almost every sector.”

The AGCS report identifies what it sees as the major technological trends that will influence liability claims: Autonomous driving. The advent of autonomous cars will reduce accident rates, shift liability from drivers to manufacturers and lead to a drop in car ownership “in favor of motor fleets, car-sharing and driverless taxis.” This could lead insurers to move away from providing single annual motor insurance policies to millions of drivers and instead be providers of large policies for manufacturers and fleet owners and operators.

Sharing economy. The sharing economy

will make liability more complex and difficult to apportion. “For example, a road traffic accident featuring an autonomous car share vehicle could involve the vehicle manufacturer, software provider and the fleet operator, as well as third parties involved in the accident…,” the report said.

3D printing. This technology is widely used, “especially for creating prototypes and bespoke parts in industries like aviation, automotive and the medical sector…,” the report said, noting products made on 3D printers are untested, using new materials and techniques, in new applications.

Cyber. Companies are concerned about the growing sophistication of cyber attacks, but many underestimate “the impact of technical IT failure, human error or even rogue employees…,” the report noted. Data protection rules are becoming tougher as governments seek to bolster cyber security.

INSURANCEJOURNAL.COM

Figures

NRM.ORG

11

The percent increase in the number of pedestrians killed by vehicles last year in North Carolina and South Carolina compared to the year before, according to a new study by the Governors Highway Safety Association. The number of pedestrians killed in the states grew at a faster rate in 2016 than at any other time in the past 40 years, the study says.

$350,000

40

The number of years Norman Rockwell’s painting, Boy Asleep with Hoe – also known as Lazy Bones or Taking a Break – was missing before being returned to the family of its original owners following a ceremony with Chubb and the FBI in Philadelphia. The painting was stolen from the Grant family’s Cherry Hill, N.J., home in 1976.

$275 MILLION

INSURANCEJOURNAL.COM

Once Is Enough

“We can’t talk a whole lot about the hack itself, because obviously we don’t want this to happen again.”

— Sana Syed, spokeswoman for the city of Dallas, speaking

about the hack of the city’s emergency siren system late on April 7 that triggered intermittent false alarms from the city’s 156 sirens for about an hour and a half. Dallas officials have asked the Federal Communications Commission for help in determining who was behind the hack.

Could Have, Should Have

“This incident could have been prevented.”

— U.S. Chemical Safety Board Chairwoman and CEO Vanessa

Allen Sutherland speaking of the release of a large chemical cloud over Atchison, Kan., in 2016 that sent more than 140 people to the hospital. A CSB investigation found that human error and labeling and design problems led to the chemical release from MGP Ingredients that occurred when a delivery truck driver inadvertently unloaded sulfuric acid into a tank that contained sodium hypochlorite.

People May Panic

“I have a feeling that on February 14 of next year, there will be a lot of people panicking. This is what everybody should be thinking about.”

— Jeff Taft, a partner at Mayer Brown, stated during a panel

discussion at the Mayer Brown offices in New York explaining the New York State Department of Financial Services’ cybersecurity regulation, which went into effect March 1. The panelists discussed steps to compliance before the deadline for the first annual certification filing with the DFS on Feb. 15, 2018, and what the new rules mean for directors and officers liability.

Emergency, then Urgency How much California water officials say they have awarded in a contract to repair the troubled Oroville Dam’s two damaged spillways to a Nebraska construction company.

The Department of Water Resources announced that Kiewit Corp. of Omaha was awarded the contract to repair the state’s second largest reservoir.

$760,000

The amount Bernice Gorecki, 83, who was struck in the head by a discus at a 2014 state track meet in Nebraska, has been awarded in a settlement. Gorecki was hit by a student-athlete’s discus while standing in the visitor area of the meet at Burke High School in Omaha.

District spokeswoman Monique Farmer says a spectator fence has now been pushed back farther.

Declarations

The amount 19-year-old Makenzie Wethington of Joshua, Texas, has been awarded after she was badly injured in a skydiving accident in Oklahoma. Wethington was 16 in January 2014 when her parachute malfunctioned and she fell more than 3,000 feet to the ground in Chickasha. Her injuries included damage to her liver and a kidney, some bleeding in her brain, and a broken pelvis, lumbar spine, shoulder blade, several ribs, and teeth.

“Though the emergency nature of the disaster has passed, the urgency of long-term recovery remains. The success of the recovery will affect the economic health and well-being of our entire state, so it’s vital to rebuild these communities.”

— North Carolina Gov. Roy Cooper, in a request to Congress for nearly $1 billion to help North Carolina counties still recovering from Hurricane Matthew. The request is in addition to approximately $1.4 billion in state and federal funds North Carolina has already received.

InsuranceJournal.com

Poll

Which of the following holidays is your firm closed for business?

11.55% Martin Luther King Jr. Day (94 votes) 12.65% Presidents’ Day/Washington’s Birthday (103 votes) 9.58% Good Friday (78 votes)

29.61% Labor Day (241 votes) 5.28% Veterans Day (43 votes)

29.12% Day after Thanksgiving (237 votes) 2.21% Other: (18 votes)

Total Votes: 814 MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 11

NATIONAL | News & Markets

Online Rideshare Insurance Offering Debut by CoverHound

By Don Jergler

C

overHound is getting into the rideshare insurance business.

The online insurance comparison shopping platform has partnered with several large carriers to offer auto insurance quotes in 24 states for people who drive for rideshare services like Uber and Lyft.

The San Francisco-based insurtech company said it intends to expand the service nationwide by the end of 2017.

Keith Moore, CEO of CoverHound, which is in its seventh year of operation, said the need for offering rideshare insurance became apparent to him and other company executives who travel often and use a ridesharing app to get around.

He said he got the impression after numerous rides that drivers are in need of education on rideshare insurance, the requirements to carry it, and the benefits of having it.

“We just noticed there’s still a lot of confusion,” Moore said.

Harry Campbell, a rideshare

expert who goes by the handle the Rideshare Guy, has been calling for more rideshare insurance coverage for years.

He thinks CoverHound’s new platform will help more drivers obtain the proper insurance.

“It’s a step in the right direction,” Campbell said. “Uber and Lyft have been around for years, but there still isn’t a great way to see all the different insurance options since it’s a state-by-state issue. Some of the biggest companies like Geico and State Farm are only in 20 or 30 states, and this causes a lot of problems for drivers looking for insurance.”

The Property Casualty Insurers Association of America, which worked with states to help develop insurance regulations for transportation network companies, also believes CoverHound’s new online tool will be beneficial.

“PCI has always supported innovation, so it is not a surprise that once states began clarifying the rules and putting the TNC model law in place, companies started to offer

12 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

coverage for rideshare drivers,” Robert Passmore, PCI’s assistant vice president of personal lines policy, said. “TNC drivers should consider the issue of insurance coverage carefully and talk to their agent or insurer if they are going to participate in ridesharing or any sharing economy platform.”

A big selling point for the portal appears to be CoverHound’s promise that rideshare drivers can get a quote in five minutes.

To get a quote, visitors must go to CoverHound’s rideshare portal and enter a ZIP code, number of vehicles and number of drivers. There are three check-box options as well: “Currently Insured,” “Homeowner,” “Married.”

Next up is a page to input the year, make and model of the vehicle, which when filled in prompts a pull-down with required selections like “Ownership,” “Primary Use,” “Miles driven per year,” and whether the vehicle is used for a rideshare program.

The driver’s name, date of birth, gender and whether that person is the primary driver are also required. Users can add drivers and vehicles.

Other queries include: Career status; occupation; highest level of education; marital status; age when the driver first obtained a license; status of the driver’s license; whether there have been any suspensions within five years; recent incidents; owning a primary residence; if a driver is currently insured; current

carrier; length of time being continuously insured; current coverage limit; how much the driver pays every six months; home address; email; VIN; driver’s license number; annual mileage; whether the vehicle is paid for.

An autofill function starts when the user begins typing in the appropriate box.

To get an example of how the site works, a 2000 Nissan Pathfinder driven by a married male living in Orange County, Calif., was used.

A quote from Mercury at $497.96 for six months for “Superior Coverage” was quickly delivered after following the prompts. “Minimum Coverage” cost $484, “Basic Coverage” was $429 and “Deluxe Coverage” was $571. Any of those choices was available.

According to Moore, a shopper score on the back end helps determine the type of coverage offered. The Pathfinder generated a “Superior Coverage” offering because a high value shopper score was returned, indicating more coverage was of greater importance than price to the shopper.

That page also gave the option to call Foremost for a quote, and there’s a “Need some help? Let’s chat!” icon.

The coverage returned on the Pathfinder quote included primary liability limits of $100,000/$300,000, property damage for up to $50,000, and medical payments of up to $1,000. It also included uninsured liability for bodily injury limits of $100,000/$300,000 and property damage to $3,500.

Users are given an option to edit coverages and payment options, and they can apply

continued on page 14

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NATIONAL | News & Markets continued from page 12 discounts for things like education and umbrella.

Insurance can be bound online with a final click, Moore said. “We handle it 100 percent online.”

Users can also call to obtain a policy. The top of the homepage offers a number for consumers to speak to an insurance agent. CoverHound said it has licensed insurance agents standing by to take calls.

Christopher J. Boggs, executive director of the Big I Virtual University for the Independent Agents and Brokers of America Inc., believes bypassing an agent is rarely a good idea considering most insureds have unique exposures that cannot be discovered and properly addressed in an online conver-

sation or brief phone call.

“There is evidence that firms such as CoverHound and others who sell via technology are negatively affecting independent — and maybe all — agents in the personal lines markets, largely because current buying trends are toward using the internet rather than an agent with whom you have and can develop a personal relationship,” Boggs said. “But this is not limited to insurtech firms, direct writers and even some independent agent companies are selling direct. All the players are trying to cut from the same pie.”

While insurtech is the current trend, Boggs believes the luster will eventually wear off.

“These firms are PR

machines, I’ll give them credit for that,” he added.

While quick and easy insurance quotes may appeal now to a younger generation, the relationship between an agent and an insured will grow increasingly important as a young person’s life changes, Boggs said.

“And so, too, will their desire to know their agent,” he added.

The three carriers listed on the site’s homepage are Mercury Insurance Group, Safeco Insurance and Foremost Insurance Group. Other carriers involved are Progressive, State Auto, CSE Insurance, Kemper and National General Insurance, according to Moore.

All the partner carriers are offering their existing rideshare products, but that may soon

change.

“We may work with carriers in the future to have more specific products developed for the rideshare community,” Moore said.

CoverHound doesn’t charge drivers for the service, instead earning a commission based on policy sales and renewals.

The size of the commissions depend on the carrier.

“We get the standard independent agent commissions on the back end,” Moore said.

While this is another development in the rapidly developing insurtech craze, Moore doesn’t see the portal as a big revenue generator initially.

He said creating the service was a way of generating more customer satisfaction.

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West

California Jury Returns $454M Verdict in Hospital Gown Suit

K

imberly-Clark and its spinoff medical technology firm Halyard Health have been hit with $454 million in compensatory and punitive damages, after a federal jury found the companies misled California buyers about the impermeability of their MicroCool surgical gowns.

Jurors in Los Angeles returned the INSURANCEJOURNAL.COM

verdict in a class-action lawsuit brought by more than 400 hospitals and health centers in California.

The lawsuit claimed the gowns were falsely represented as providing protection against serious diseases.

Plaintiffs’ attorney Michael Avenatti said during closing arguments that the case was about failure to disclose

important facts to purchasers.

Kimberly-Clark said in a statement that it would appeal the verdict, which it called baseless and excessive. The company says nearly 70 million MicroCool gowns have been sold without a single injury complaint.

Copyright 2017 Associated Press.

MAY 1, 2017 INSURANCE JOURNAL | WEST | W1

SPOTLIGHT | Workers’ Comp

Report Shows California Workers’ Comp Written Premium up in 2016

C

alifornia’s Workers’ Compensation Insurance Rating Bureau has completed its report on statewide workers’ comp insurer loss and premium experience through Dec. 31, 2016.

The major findings of the WCIRB report include: California written premium for 2016 was roughly $18.1 billion, 3 percent above the written premium reported for 2015.

The projected industry average charged rate per $100 of payroll for policies incepting between July 1, 2016, and Dec. 31, 2016, was $2.67, 6 percent

below the average rate charged for the first six months of 2016 and 12 percent below the average rate charged for the first six months of 2015.

The WCIRB projects a preliminary ultimate accident year combined loss and expense ratio of 94 percent for 2016. This is consistent with the ratios for the prior two accident years, which represent the lowest combined ratios since the 2004 through 2006 period.

The WCIRB projects indemnity claim frequency for accident year 2016 to be 1.3 percent below the frequency for 2015

but 9 percent above the frequency for 2009. The years 2015 and 2016 represent the first consecutive years of projected indemnity claim frequency decline since before the Great Recession.

The WCIRB projects the average severity of a 2016 indemnity claim to be roughly $82,000, 4 percent higher than the projected severity for 2015 and 10 percent higher than that for 2013.

The WCIRB projects that the

average ALAE cost of a 2016 indemnity claim, excluding MCCP costs, is 3 percent above that of 2015. Projected ALAE severities by accident year as of Dec. 31, 2016, experience are significantly lower than prior projections (as of March 31, 2016). This recent favorable ALAE development is likely in part attributable to recent increases in the rate at which indemnity claims are settling.

The full report is available in the Research and Analysis section of the WCIRB website.

WEST | News & Markets Former Mayor of California City Files Suit over Wife’s Ruptured Implants

Washington Nightclub Claims Racial Prejudice in $22.5M Suit

ormer San Diego Mayor Roger Hedgecock is suing the city, claiming a sidewalk fall ruptured his wife’s breast implants.

The San Diego Union-Tribune reported Hedgecock and his wife contend the city was careless and negligent for failing to repair sidewalk damage caused by a tree.

The October suit says Cynthia Hedgecock tripped over a raised section of sidewalk in Pacific Beach two

he city of Vancouver, Wash., and others successfully conspired to close a nightclub because of racial prejudice, the club’s owners say in a $22.5 million suit.

The owners of Q Nightclub and Lounge say efforts by the city and a transit agency resulted in the business closing in late 2015, The Columbian reported.

Earlier that year business partners Adrian Kallimanis and Jose Parrawas were told that the club’s fire access was part of the neighboring property purchased by C-Tran to build a rapid transit bus center.

When the club couldn’t find another fire access, the Vancouver Fire Marshal’s office shut the club down. Authorities

F

years ago and crashed to the ground.

The suit says her breast implants ruptured, leaking silicone into her bloodstream.

She had to have them removed and replaced in what the suit calls a “grueling procedure,” followed by weeks of recovery.

A city attorney’s spokesman said that the case should go to trial later this year.

Copyright 2017 Associated Press.

W2 | INSURANCE JOURNAL | WEST MAY 1, 2017

T

said the lack of a secondary exit and the historic fire risks at nightclubs made it unsafe.

The city and other entities “worked in concert, conspired or acted in furtherance of a conspiracy to severely limit the owners’ freedom to operate their business and ultimately to close the Q,” the lawsuit said.

City officials reject the allegations. “The allegations that the city did anything for reasons related to the race of its patrons, or that there was any sort of ‘conspiracy,’ are outright frivolous,” said Daniel Lloyd, assistant city attorney. “The city will vigorously defend this case.”

Copyright 2017 Associated Press.

INSURANCEJOURNAL.COM

WEST | News & Markets

Southern California Couple Who Charged Police with Racism Nabbed for Fraud

A

Southern California couple who had filed an official complaint accusing police officers of racism has been arrested for insurance fraud and filing a false police report.

Lamont Goodwin, 33, and Sylvia Camarillo, 31, were arrested in mid-April

by California Department of Insurance detectives on multiple felony charges of insurance fraud after allegedly submitting a fraudulent claim and filing a false police report in an attempt to bilk their insurer

out of $18,000 for uncovered damages.

In May 2016, Goodwin was driving and involved in an auto accident, according to a report from the Tustin Police Department.

Following the accident, Goodwin and his domestic partner, Camarillo, allegedly falsely reported that Camarillo was the person driving the vehicle and Goodwin was a passenger.

Based on the police report, the insurer denied the claim because Goodwin was an excluded driver on the pol-

icy, so the accident was not covered. Before receiving the police report, the carrier paid $18,000 to the credit union that held a lien on the totaled vehicle.

After the claim was denied, Camarillo and Goodwin filed a complaint with the Tustin Police Department accusing the responding officers of racism and lying on the police report. An internal affairs investigation was initiated by Tustin Police Department.

Suspecting fraud, the insurance company and the Tustin Police Department reached out to CDI, which launched a fraud investigation that determined Goodwin was the driver

and Camarillo was not in the car at all. Both Goodwin and Camarillo allegedly conspired to file a fraudulent claim so the insurance company would pay for damages that were not covered under the conditions of the policy. The investigation also uncovered that the pair filed a false police report accusing the Tustin police officers of lying on the original traffic report.

Goodwin and Camarillo were booked into the Orange County Jail. Bail was set at $30,000 for Goodwin and $30,000 for Camarillo. The Orange County District Attorney’s Office is prosecuting the case.

Father in Oregon Seeks $5M for Son’s Accidental-Overdose Death

Feds to Use Fires to Lower Washington Wildfire Risks

he father of a 2-yearold Oregon boy who died of morphine poisoning seeks $5 million in a lawsuit filed against the boy’s mother, grandmother, aunt and an insurance company.

Jesse deVos’ lawsuit alleges the adults failed to ensure a childproof lid was secure on the prescription morphine that was stored in a kitchen drawer at the time of the

o reduce the risks of wildfires, federal officials this spring are planning to conduct controlled burns on more than 9,000 acres of land in Washington state forests.

The Seattle Times reported the fires planned in the Okanogan-Wenatchee National Forest is part of a broader effort to step up the pace of intentionally set fires.

Such burns can reduce the amount of wood and other materials that can ignite.

This spring, the U.S. Forest Service wants to do 22 controlled burns. The sites range from a 300-acre tract about 30 miles west of Yakima to a

T

October 2014 overdose.

The suit filed earlier this month in Multnomah County also alleges they should have had a childproof lock on the drawer and kept the medication out of the toddler’s reach.

The Oregonian/OregonLive reported Jesse deVos was living in Vermont at the time of his son’s death in suburban Portland.

Police initially thought the boy died of natural causes, but test results later revealed the overdose. The boy’s grandmother had the morphine prescription.

Copyright 2017 Associated Press.

W4 | INSURANCE JOURNAL | WEST MAY 1, 2017

T

1,600-acre tract 25 miles east of Tonasket, Okanogan County.

Prescribed burns are widely backed by scientists as an important tool for keeping forests healthier and less susceptible to devastating blazes.

But the burns can be controversial, in part, because the smoke they emit may impair air quality.

Copyright 2017 Associated Press.

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WEST | News & Markets

Making a Federal Case Out of ‘Legal’ Marijuana Insurance Claims

By Andrew G. Simpson

M

ichael Johnston, the great, great grandson of the founder of one of the first Baptist churches in Texas, grew up being constantly warned about sin, including the evils of television and dancing. Thus it is a bit strange even to him that he has come to be known as the “marijuana guy” among insurance claims professionals.

He thinks his leading qualification for the honor may be that he went to college in the ’70s with roommates who “rolled joints the size of Cuban cigars” and had a dormitory neighbor who cultivated pot plants on the roof.

He actually does have additional real qualifications, too. He graduated law school and is an attorney with Brown

Dean Proctor & Howell, a Houston-based corporate and insurance defense firm.

“I did inhale,” he admitted to his audience of claims practitioners at the 2017 Property Loss Research Bureau (PLRB) conference in Boston in March.

“I never thought I would see the day when insurance would combine with marijuana,” he said before sharing his written legal research and insights on the effects of marijuana on property insurance claims and the strategies for handling them.

‘I never thought I would see the day when insurance would combine with marijuana.’

W6 | INSURANCE JOURNAL | WEST MAY 1, 2017

Insurance Dilemma

Whether a substance is legal is an important consideration under insurance policies, he stressed in describing the current dilemma for the insurance industry.

“We’ve got more than half the states with some form of legalized marijuana,” he said. “They’re all kind of different.”

In fact, 28 states and District of Columbia have legalized medical marijuana in some form and about eight have legalized recreational use to some degree, his research for the PLRB session revealed.

“But marijuana is a defined, controlled substance under federal law,” a Schedule 1 illegal drug under the federal Controlled Substance Act with a “high potential for abuse” considered as bad as heroin.

“So we’ve got federal law telling us it’s illegal to possess, sell or handle it and we’ve got these state laws saying that in some circumstances and under some limitations it’s OK. And even OK to sell.

So where does that get us?” he asked.

Although marijuana possession is legal

continued on page W8

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in many states, that is not the final insurance answer.

Insurance coverage is very much an open question for a variety of reasons including that policies typically do not mention or are ambiguous about marijuana, possession is illegal under federal law but the federal government has looked the other way, and the rules and science around marijuana intoxication are unclear.

In the course of his presentation, Johnston asked and answered: Is there coverage for marijuana plants stolen from a home, or for harvested products by a grower whose business policy excludes growing crops, or if an insured’s live-in boyfriend burns down a house while toking up, or if an insured driver gets into an accident while using a controlled substance?

Policy Language

Most homeowners policies do not specifically mention marijuana but many do have applicable provisions that may limit an insurer’s liability in marijuana claims, according to Johnston’s research report. In cases where marijuana is being distributed for profit, profit business exclusions or limits on business personal property loss could prevent claims for large quantities.

Also the “trees, shrubs, plants or lawn” provision limits how much can be paid for a plant and it may apply to claims where there is distribution or growing of marijuana plants.

Some states permit caregivers (often not a defined position) to grow a certain number of marijuana plants for their patients. This could be seen as business activity and thus excluded from liability coverage, although the home insurer is often not told about the activity, according to the Texas lawyer.

Unless specifically excluded, a harvested marijuana product may be covered just like alcohol or tobacco, Johnston cautioned.

He said state regulators have generally

not gotten involved in marijuana coverage. “The general feeling is that marijuana is legal and that legal amounts should be covered unless a policy specifically excludes it,” he wrote, adding that it remains to be seen if insurers will try to introduce exclusions.

He recommends that insurers clearly express their intent regarding marijuana in all homeowners and dwelling forms.

“It is easy to see that ambiguity in current policy language opens the door for many potential issues,” he stated.

Johnston said insurers should be most concerned about the potential for larger losses like home or building fires related to marijuana use or production.

‘It is easy to see that ambiguity in current policy language opens the door for many potential issues.’

W8 | INSURANCE JOURNAL | WEST MAY 1, 2017

Court Cases

There are only a handful of court cases thus far to provide guidance on marijuana-related claims. Johnston provided summaries of some key cases.

• In a 2013 case (Tracy v. USAA), the claimant in Hawaii wanted USAA Insurance to pay $45,000 for the loss of 12 legal medical marijuana plants stolen

from her home. The policyholder cited the “trees, shrubs and other plants” clause. But USAA got the federal district court to agree that the plants are illegal under federal law and thus not covered.

• In 2013, Nationwide Insurance paid a $160,000 claim by a Michigan policyholder whose house burned down.

Several months later, the insurer sought to recover the money (Nationwide v.

Kasey McDermott) it paid after it found out that the fire was caused by her livein boyfriend who operated a butane “honey oil” lab in the basement to create a concentrated form of marijuana for his patients. The fire was caused when he lit a sample for himself. Nationwide argued several grounds for denying the claim including that the manufacturing facility in the home was illegal, that the insured misrepresented the use of the property, that it fell under the increased hazard and intentional acts exclusions, and that there was no accidental direct physical loss to property. Michigan courts sided with Nationwide because the loss was not the result of an accident and because it was the result of an increased hazard within the insured’s

continued on page W10 INSURANCEJOURNAL.COM

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knowledge and control.

• A 2016 federal district court ruling out of Colorado (Green Earth Wellness Center v. Atain Specialty Insurance Co.) involved the loss of marijuana plants and harvested products by a marijuana growing business, Green Earth Wellness Center.

The policy covered “stock” but had an exclusion for “growing crops.” The policyholder argued that “growing crops” referred only to plants in the earth and it was still covered for most of its potted plants. The court disagreed and said the exclusion covered all the plants.

However, the court did find coverage for the harvested products. It rejected the insurer’s argument that the products fell under the contraband exclusion, finding that the federal government’s “erratic” enforcement of federal laws criminalizing marijuana versus state laws legalizing rendered the term “contraband” ambiguous. For the same reason, it rejected the argument that the policy was unenforceable as against policy.

“While the federal government takes a ‘wait-and-see’ approach to state experiments in marijuana legalization, insurers can expect more of their insureds to argue that courts should ignore federal law and precedent when interpreting insurance contracts for medical marijuana-growing businesses,” Johnston warned in his report.

driving under the influence (DUI) convictions after they were not allowed to use their medical marijuana cards for their defense. The court ruled the two were not immune to DUI prosecution but given they had legal authorization for medical reasons, they could be exonerated if they could prove that the amount of marijuana in their system was not enough to cause impairment.

He said some states presume that if a driver tests positive for any marijuana at all, the driver is presumed to be under the influence and must prove otherwise.

Driving Under Influence

Making a Federal Case

In the area of auto insurance, it is a crime to drive while intoxicated in all states, and there are objective standards for determining intoxication.

But the rules around marijuana intoxication are hazy with uncertainty over what constitutes intoxication and how to reliably test for it. States tend to rely upon the observations of the police, Johnston noted.

While some states enforce a zero-tolerance approach, the defense attorney said this approach is “open to both scientific and legal challenges.”

He cited a case involving Arizona’s zero-tolerance law regarding marijuana and driving. Two drivers appealed their W10 | INSURANCE JOURNAL | WEST MAY 1, 2017

Even with uncertainty over federal law enforcement, Johnston advises an insurer looking to escape a cooked-up marijuana claim to make a federal case out of it.

Federal law is an insurer’s best hope in such cases due to the U.S. Constitution’s supremacy clause that favors federal over state laws when the two conflict, according to Johnston.

State laws legalizing marijuana obviously conflict with the federal controlled substance act under which marijuana is illegal.

Under President Barack Obama, the U.S. attorney general said as long “as the state regulations are reasonable and the

person complies with the state regulation,” the federal government would not prosecute.

However, it is unknown if the Trump Administration and Jeff Sessions, the new attorney general, will follow the Obama approach or begin enforcing the federal law on marijuana.

“We don’t know what’s going to happen,” Johnston told the PLRB audience.

What the Trump team does bears watching. “A more hardline approach could see prosecutors going after users, producers and distributors under federal statutes, or filing civil suit to challenge state laws on the basis of preemption,” Johnston wrote in his report. “Should that occur the ramifications for insurers and other industries serving the marijuana industry could be significant.”

He advised insurers on two ways they can get a marijuana-related claim into federal court.

“The insurance company can beat the plaintiff to the courthouse,” he said.

Federal courts have limited jurisdiction, as prescribed by Congress. Among the cases heard by federal courts are those with diversity of citizenship, meaning if the plaintiff and defendant are from different states, and where the amount in controversy is at least $75,000.

Policyholders are required to notify their insurer before filing a suit.

Typically a policyholder’s lawyer wants the case heard in state court “so they sue someone in the state” who is the adjuster for the carrier in addition to the carrier, Johnston said. He said an insurer with advanced notice can “beat the policyholder to the courthouse” by seeking a declaratory judgment making itself, not the policyholder, the plaintiff. This way an out-of-state insurer creates diversity with the in-state policyholder and the case can qualify for federal court.

The other way to get to federal court is if there is a federal question at stake in the claim, such as whether state or federal law applies.

“This may work even if there is no diversity,” Johnston said.

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News & Markets | WEST

Average to Below-Average Wildfire Season Expected for Colorado

C

olorado is in store for an average to slightly below-average wildfire season this year, despite dry conditions and early outbreaks on the eastern plains, officials said.

“But the fires will occur,” said Michael Morgan, the director of state Division of Fire Prevention and Control.

An average season in Colorado is about 45 wildfires burning a total of 160 square miles (415 square kilometers), Morgan said.

The outlook is based on expected weather patterns and fuel, the trees, grass, shrubs and other vegetation that can burn if a fire gets out of hand.

Most of the plains have been in a drought or near-drought conditions since mid-October.

Last month, a wildfire in northeastern Colorado blackened 50 square miles (129 square kilometers) and killed 200 cattle.

But the mountains received heavy winter snowfall after a slow start. Most of the high country had average or above-average snowpack as of mid-April.

Gov. John Hickenlooper, who appeared with Morgan for a

briefing at the state Capitol in Denver, said Colorado averages four times as many wildfires as it did 15 years ago. He blamed climate change, which he said has lengthened the fire season by about 80 days.

“It’s no wonder that we’re having more fires,” said Hickenlooper, a Democrat.

Hickenlooper and Morgan said the state has set a goal of reducing the number of fires by 5 percent this year and 10 percent by 2019.

Only about 7 percent of the state’s 2016 wildfires had

natural causes, Morgan said.

The rest were started by debris fires, campfires, prescribed burns, arson, mechanical failures or other causes, he said.

The state has adopted an aggressive tactic of monitoring for wildfires when conditions are dangerous and attacking them quickly, from the air if necessary, when they are reported.

Two years ago, the state rolled out two newly acquired aircraft equipped with infrared cameras, which officials said were so sensitive that

one detected a campfire from 28,000 feet (8534 meters) in the air.

Morgan said the aircraft detected 43 fires last year that were so remote no one else had reported them.

Hickenlooper said Colorado is ready for fires and said he doubted any Western state other than California equaled the state in preparedness.

“Our preparedness is well beyond any of our contiguous neighbors,” he said.

Copyright 2017 Associated Press.

Colorado City Agrees to Pay $212K in Racial Profiling Suit

A

Colorado city has agreed to pay $212,000 to settle a racial profiling lawsuit over the arrest of two black men that was captured on cellphone video and widely viewed on social media.

The Colorado Springs Gazette reported the city of Colorado Springs also agreed to INSURANCEJOURNAL.COM

revise some of its policies.

Twenty-two-year-old Benjamin Brown and his

31-year-old brother, Ryan, sued after they were arrested in March 2015. Police say officers stopped the car because they had seen it earlier in a highcrime area known for drug deals.

Police found no weapons or contraband.

Benjamin Brown, who was

driving, was ticketed for a cracked windshield and later pleaded guilty.

Ryan Brown, who recorded the incident on his cellphone, was charged with obstructing a peace officer. That charge was dropped.

Copyright 2017 Associated Press.

MAY 1, 2017 INSURANCE JOURNAL | WEST | W13

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Business Moves | NATIONAL Cook Maran, Gundermann

Cook Maran & Associates, one of New York and New Jersey’s largest insurance brokers, will acquire Gundermann & Gundermann, a third-generation, family owned company that’s grown into a top 25 New York insurer since it was founded in 1937.

Both agencies offer commercial, personal and employee benefit policies to individual and business clients.

Gundermann specializes in insurance for franchised car dealers, and through its continuing partnership with Direct Dealer Services, provides finance and insurance products to dealer clients.

This is Cook Maran’s second recent partnership with an area agency, having acquired New Jersey-based Mintz, Girgan & Brightly (MGB) in January. Similar to that deal, Gundermann & Gundermann will continue to do business under the Gundermann name, with existing management and staff in their current roles.

Customers will work with familiar faces in the agency’s Huntington, N.Y., office, with the added expertise of the combined agencies’ professionals at six offices across the tri-state area. In merging with Cook Maran, Gundermann also joins the national platform of Prime Risk Partners (PRP).

Maximum, Starpoint General Agency

Maximum, an independent, Chicago-based excess and surplus lines wholesaler, has acquired Philadelphia-based transportation specialist Starpoint General Agency.

In business since 1998, INSURANCEJOURNAL.COM

Maximum is a national and surplus lines wholesale broker of specialty products and services. It is a full-service brokerage firm specializing in property, casualty, transportation, DIC, builders risk and professional lines coverage.

Kevin Long will manage the Philadelphia office and has more than two decades of insurance and risk management experience.

With Long’s leadership, the Philadelphia team will work to extend its reach eastward and use a full range of property and casualty capabilities, according to Maximum President and CEO Joe Messina.

Auto-Owners Insurance, Concord General Mutual Insurance

Auto-Owners Insurance and Concord General Mutual Insurance have announced that their affiliation has been approved, effective April 1, 2017, by policyholders and all regulatory bodies.

Auto-Owners is a Lansing, Michigan-based A.M. Best A++ (Superior) rated multiline property and casualty insurer, operating solely through independent agencies in 26 states.

Auto-Owners also owns a life company and an excess and surplus lines company.

Concord General Mutual Insurance is a Concord, N.H.-based property and casualty insurance provider through independent agencies in Vermont, Maine, New Hampshire and Massachusetts.

“The combining of capabilities will allow us to expand our product and premium base and help support the Concord name in the [New England]

region,” said Concord President and CEO Linda Day.

Risk Strategies Company, Mosse & Mosse Associates

Risk Strategies Company, a privately held, national insurance brokerage and risk management firm, has acquired Mosse & Mosse Associates LLC’s commercial benefits and consulting operations. Terms of the deal were not disclosed.

As a boutique brokerage and consulting firm founded in 1989 and based in Lynnfield, Mass., Mosse & Mosse provides both employee benefits and retirement plan consulting.

Mosse & Mosse’s clients span 37 states domestically as well as several foreign countries, competing in industries including automotive, farm equipment, printing and marketing, HVAC, insurance, industrial products, auto dealerships, power systems and food processing, among others.

Its plan types include defined contribution, defined benefit and non-qualified plans, and its retirement plan consulting services cover

investment consulting, plan design and operational analysis, as well as regulatory and compliance consulting support.

In October 2016, Risk Strategies announced its purchase of TSG Financial, a Long Island, N.Y.-based firm with similar specialties in employee benefits, wealth management and retirement planning.

That acquisition marked Risk Strategies’ first formal entry into retirement and financial planning consultancy.

Mosse & Mosse School and Municipality Insurance Services was not included in the acquisition of Mosse & Mosse Associates LLC.

TDC Risk Management, Highline Insurance

TDC Risk Management, a Maumee, Ohio-based independent property and casualty insurance agency and risk management firm announced a partnership with California’s Highline Insurance.

Highline Insurance is an independent property/casualty insurance agency based in Carlsbad, Calif.

MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 15

NATIONAL | M&A Review

Deal Activity Slows, Demand Remains Healthy

By Christopher Darst

D

eal count for the first quarter of 2017 was down relative to the first quarter of both 2015 and 2016. There were 102 announced transactions in the first quarter of 2017, compared to 124 in the first quarter of 2016 (a decrease of 13.8 percent). Forty-three deals closed in January; 29 in February; and 30 in March. By comparison,

historical first quarter deal counts in the past five years were 41 in 2013, 87 in 2014, 119 in 2015, 124 in 2016, and 102 in 2017 (average of 94.6 per year).

For the first quarter of 2017, 52 percent of all acquired agencies were property/casualty firms, 31 percent were multiline agencies and 17 percent were employee benefits firms.

Specialty distributors made up 18.6 percent of the total deal activity year-to-date. This is a slight increase compared to 2016, when 15.8 percent of recorded transactions were with specialty distributors.

Private-equity backed buyers continue to drive the market with 44 closed transactions through March 2017. However, this represents a 29.5 percent decrease compared to the first quarter of 2016. This represented 43 percent of all deal activity

in the first quarter of 2017.

Independent agencies completed 33 transactions and public brokers accounted for 13 deals in the same period. Insurance carriers, banks and thrifts and other buyers closed 12 deals in the first quarter of 2016.

The top five buyers for the year represented 33.3 percent of total deal activity through the first quarter of 2017. The top 10 accounted for 48 percent.

BroadStreet Partners Inc. took over the top spot as the most active acquirer with 11 closed transactions.

BroadStreet typically applies a co-ownership structure to its acquisitions and allows agency owners and/or key employees to retain some ownership.

Arthur J. Gallagher (AJG) was the second most active acquirer and the most active public broker in the marketplace with nine deal closings in the first quarter of 2017.

AJG’s acquisitions were evenly spread throughout the country and consisted of both retail and

wholesale agencies. AJG also closed two deals in Australia in the first quarter of 2017.

Hub International Ltd. was the third most active buyer with seven closed transactions in the first quarter of 2017. Hub purchased four agencies in the West, two agencies in the South/Southeast, and one in Midwest/East. Hub continued to expand internationally by purchasing two agencies in Canada. Hub has closed 126 transactions in the United States since 2012.

Baldwin Risk Partners (BKS), a new private equity backed buyer formed in 2012, closed four deals in the first quarter of 2017. BKS is headquartered Tampa, Fla., and all four deals were with Florida agencies.

Acquisition activity is down from the pace set in 2015 and 2016, but demand remains high as there are more buyers than in any time in history. Private equity backed brokers continue to drive the market, while public brokers and independent brokers continue to be aggressive in their search for growth and talent. With private equity facing large sums of capital yet to be deployed, we believe that the acquisition market will remain healthy during the rest of 2017.

Darst is senior vice president at Marsh, Berry & Co. Inc.

Note: Quarter to Date as of March 31 of given year. All transactions are announced deals involving public company acquirers, banks, private equity groups and private company acquirers. Targets are U.S. only. This data has not been updated to reflect changes in prior years, if any. MarshBerry estimates that only 15-30 percent of all transactions are made public. Past performance is not necessarily indicative of future results.

Source: S&P Global Market Intelligence, Insurance Journal, and other publicly available sources.

16 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

Securities offered through MarshBerry Capita, Inc., Member FINRA and SIPC, and an affiliate of Marsh, Berry & Co. Inc. 28601 Chagrin Blvd., Suite 400, Woodmere, Ohio 44122 (440-3543230). Except where otherwise indicated, the information provided is based on matters as they exist as of the date of preparation. Past performance is not necessarily indicative of future results.

INSURANCEJOURNAL.COM

Merger Announced and Acquisition Activity Date Buyer Announced Date

Buyer

01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/01/17 01/03/17 01/03/17 01/03/17 01/03/17 01/03/17 01/04/17 01/04/17 01/04/17 01/04/17 01/06/17 01/09/17 01/10/17 01/10/17 01/13/17 01/13/17 01/17/17 01/17/17 01/18/17 01/19/17 01/19/17 01/20/17 01/24/17 01/26/17 01/27/17 01/30/17 01/30/17 01/31/17 01/31/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/01/17 02/02/17 02/02/17 02/02/17 02/07/17 02/07/17 02/07/17 02/15/17 02/16/17 02/16/17 02/21/17 02/21/17 02/21/17 02/22/17 02/23/17 02/24/17 02/28/17 02/28/17 02/28/17 03/01/17 03/01/17 03/01/17 03/01/17 03/01/17 03/01/17 03/01/17 03/02/17 03/02/17 03/03/17 03/06/17 03/07/17 03/08/17 03/09/17 03/13/17 03/13/17 03/17/17 03/20/17 03/20/17 03/21/17 03/22/17 03/23/17 03/24/17 03/24/17 03/24/17 03/27/17 03/27/17 03/27/17 03/29/17 03/31/17

Acrisure LLC Avant LLC BroadStreet Partners Inc. BroadStreet Partners Inc. BroadStreet Partners Inc. Evans Bancorp Inc. Hitson Insurance Agency Inc Lake Michigan Credit Union Lake Michigan Credit Union Leavitt Group Enterprises Inc. Richards Group Robertson Ryan & Associates Inc. Schumacher Insurance Agency The Andrew Agency World Insurance Associates LLC Brown & Brown Inc. Confie Seguros Insurance Services Jardine Lloyd Thompson Group Plc K2 Insurance Services LLC Prime Risk Partners Inc. Assurant Inc. Baldwin Risk Partners Crichton Group Cross Insurance Hub International Ltd. Arthur J. Gallagher & Co. Acentria Insurance OneDigital Health and Benefits Arthur J. Gallagher & Co. Marsh & McLennan Companies Inc. Hanover Insurance Group Inc. USI Holdings Corp.

Risk Strategies Company LLC Arthur J. Gallagher & Co. Starkweather & Shepley Insurance Brokerage Inc. NFP Corp.

H.W. Kaufman Financial Group Ryan Specialty Group LLC Jardine Lloyd Thompson Group Plc Arthur J. Gallagher & Co. Validus Holdings, Ltd. Arthur J. Gallagher & Co. Dostal & Kirk Inc. BroadStreet Partners Inc. BroadStreet Partners Inc. BroadStreet Partners Inc. BroadStreet Partners Inc. Eastern Bank Corporation Hilb Group LLC Hilb Group LLC Insgroup Inc. OneDigital Health and Benefits Seeman Holtz Property and Casualty Inc. World Insurance Associates LLC BroadStreet Partners Inc. EPIC (Edgewood Partners Insurance Center) Gravie Inc. Arthur J. Gallagher & Co. Marsh & McLennan Companies Inc. USI Holdings Corp.

Renaissance Alliance Insurance Services LLC AssuredPartners Inc. Hub International Limited All Risks Ltd. Arthur J. Gallagher & Co. Hub International Ltd. Baldwin Risk Partners Baldwin Risk Partners Ryan Specialty Group LLC Management group OneDigital Health and Benefits USI Holdings Corporation Acentria Insurance BroadStreet Partners Inc. BroadStreet Partners Inc. BroadStreet Partners Inc. Hilb Group LLC Hub International Ltd. Plexus Groupe LLC Hub International Ltd. Marsh & McLennan Companies Inc. Hub International Ltd. Hub International Ltd. RightSure Insurance Group United Insurance Agency Inc. EPIC (Edgewood Partners Insurance Center) Alliant Insurance Services Wheeler & Taylor Insurance Inc. Kohlberg Kravis Roberts & Co. L.P. Arthur J. Gallagher & Co. AssuredPartners Inc. Baldwin Risk Partners Arthur J. Gallagher & Co. Tokio Marine & Nichido Fire Insurance Co., Ltd. Commonwealth Financial Group Inc. Independence Holding Company Liberty Mutual Insurance Group K2 Insurance Services LLC Keller-Brown Insurance Services Risk Strategies Company LLC AssuredPartners Inc. Ryan Specialty Group LLC

January 1, 2017 to March 31, 2017 Seller Seller Undisclosed Insurance Agency (MI) Supermarket Insurance Group Book of business Certain Insurance Assets Certain Insurance Assets Mietus Agency Crum & Blazer Insurance Inc. Goddard-Talmay Agency Inc. Katt Insurance Agency LLC Norcal Insurance Services Inc. Holden Financial Services Inc. Allied Insurance Centers Inc. Clarke Insurance Agency Wallace and Wallace Insurance Agency Inc. A Berne Corp Insurance Commercial MGA assets of The Insurance House Inc. Auto Insurance America Corporation Risk & Re-Insurance Solutions Corporation WaterPlus, FirePlus and JPA in-force expirations Mintz, Girgan & Brightly Inc. GTI Holdings Corp.

Ryan Insurance & Financial Services RLH Agency LLC President Insurance Agency Inc. Hubbard-Bert Inc. Construction Risk Solutions LLC Huff Insurance Agency of Southwest Florida LLC C.T. Hellmuth and Associates Inc. Hill, Chesson & Woody Inc. J. Smith Lanier & Co. Certain assets of Charity First Insurance Services Inc. Diversified Insurance Service LLC University Health Plans Inc. Adco General Corporation McGrath Insurance Group Inc. McLaughlin & Smoak LLC Essential Insurance Services Inc. Interstate Insurance Management Inc. Construction Risk Partners LLC Eagle Insurance Agency LLC ADM Crop Risk Services Inc. Presidio Group Inc. Scharer Insurance Inc. Certain Insurance Assets Certain Insurance Assets Certain Insurance Assets Undisclosed Insurance Agency Chase and Lunt Insurance Agency LLC Charlotte Insurance Group benefits division Fawcett Group Inc. Gary G Oetgen Inc Dave Cutright Insurance Agency Inc. Coverage Administrators Inc. Undisclosed Insurance Agency (FL) Benefit Compass Insurance Services LLC Breitenfeldt Group Lewis & Associates Insurance Brokers Inc. iaCONSULTING Accelerated Financial Planning Agency Inc. Peter M. Bakker Agency Inc. Dealey, Renton & Associates Insurance Brokers Denali Alaskan Insurance LLC American Management Advisors Inc. Kelly Financial Inc. Employers Resource Group Financial & Insurance Services Inc. D&M Insurance Solutions LLC Affordable Home Insurance Inc. Trident Marine Managers Inc. William A. Graham Company Benefit Planning Group Carolina First Associates LLC Walker Insurance & Financial Services Inc. Certain Insurance Asset Certain Insurance Asset Certain Insurance Assets American Truck Insurance Exchange LLC BCI Group Inc. Fairway Financial Insurance Group Inc. Leavitt Insurance Services of Southern California Inc. Blakestad Inc. Tri-Star Insurance Professionals Inc. Cassco Insurance Inc. Chaparral Insurance Agency Inc. Holler-Grapes Agency Capacity Group Inc. Burkhardt Consulting LLC Great Barrington office of GoodWorks Insurance U.S.I. Holdings Corporation Nicoud Insurance Services M.F. Irvine Companies LLC Bradenton Insurance LLC Farallone Pacific Insurance Services LLC International Ag Insurance Solutions LLC MassMutual Southern New England/MassMutual Northern New England PetPartners Inc. TRU Services LLC. Star & Shield Services LLC H. N. Fishel and Associates Inc. Terrell Insurance Services Inc. Fleet Risk Management Inc. LoVullo Associates Inc.

Sources: S&P Global Market Intelligence, Insurance Journal, other publicly available sources and MarshBerry proprietary databases.

Disclosure: All deal count metrics are inclusive of completed deals with U.S. targets only.

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MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 17

NATIONAL | Spotlight | Workers' Compensation

How New Technology Is Improving Workers’ Comp

By Denise Johnson

N

ew technologies are improving workers’ compensation programs in everything including communications and training, healthcare delivery, and claims, according to experts.

Tom Ryan, market research leader for Marsh’s Workers Compensation Center of Excellence, says there are several areas of workers’ compensation that can benefit from technology: • In communications with employees. Information critical to prevent injuries and claim updates can be provided to employees via smartphone mobile applications.

• In sharing workforce training via an employer’s intranet or through smartphone applications.

• In delivering care to injured workers. Through tele medicine and via mobile

apps that can direct injured workers to preferred medical providers.

• In managing claims by providing customizable email alerts, such as notifications when prescriptions are ready.

Wearable technology is also having an impact. Wearables can monitor employee movements and alert coworkers of danger, as well as monitor fatigue, body temperature and repetitive motion. The information can be used in training, fraud prevention and wellness programs, Ryan said.

Construction industry wearables include high-tech vests and helmets that have lights or vibrate to alert employees of potentially dangerous changes in surroundings.

Some firms are equipping forklifts to sound an alarm or flash lights to warn employees

18 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

and the public. Many pieces of equipment require both hands to operate and can be fitted with vibrating sensors to alert the operators to changes in their surroundings.

Joseph Molloy, vice president of workforce safety at Northwell Health, offered an example of the improvements made at Northwell after the company created a centralized workforce safety department and revamped its employee injury reporting system.

Previously, injuries were reported to different parts of the company. He said employees were confused throughout the life of an injury on whom to report to and what to report. Completion of forms by employees was inconsistent, and penmanship was an issue.

For example, asking where an accident occurred resulted in answers from an address to a building floor to a hospital.

Molloy said Northwell used technology to improve its incident reporting rate. The company added automated forms and connected employee data so that the forms could be partially prefilled. It also added multiple ways to report an incident, including a mobile app and a 1-800-number. Completed employee injury reports were then sent to the supervisor, safety officer, human resources, Broadspire (its third-party claims administrator) and workforce safety department that triages cases to determine potential nurse case management opportunities.

According to Molloy, the benefits of the new system include more employees being placed in transitional return-to-work assignments and a positive response from employees.

Molloy said the keys to success when implementing these types of changes include engaging senior leadership and sharing the mission’s method and rationale for the change.

Wearables can monitor employee movements and alert co-workers of danger, as well as monitor fatigue, body temperature and repetitive motion.

Donna Sides, senior insurance manager and workers’ compensation supervisor with Bank of America, said her company implemented a telenursing program for insured employees. This included a dedicated 24/7 reporting line that allowed injured workers to speak to a registered nurse and directly report a claim.

She explained that the nurse will assess the medical history, injury, pain level, obtain an accident description and offer a first aid type of treatment recommendation. If additional treatment is warranted, the nurse will direct employees to an in-network provider where allowed and then schedule the appointment. Call notes are uploaded to the Bank of America claims system and are viewable by adjusters.

Sides said the use of telemedicine at Bank of America has resulted in higher network penetration, lower claims severity and lower claims costs.

David Lupinsky, vice president at CorVel Corp., said telehealth allows employers to create virtual clinics, which drive greater productivity.

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NATIONAL | News & Markets

Workers’ Comp Programs Assist Workers in Addiction Fight

By Bob Salsberg

M

eet a victim of the nation’s opioid addiction scourge: The American worker.

A number of U.S. states are taking steps through their worker’s compensation systems to stem the overprescribing of the powerful painkillers to workers injured on the job, while helping those who became hooked to avoid potentially deadly consequences.

Injured workers are often prescribed opioids like OxyContin and Vicodin.

“I was eating them up like they were candy,” said Jimmy Duran, of Boston, who was prescribed opioids for years after hurting his neck and fracturing vertebrae in a workplace accident in 2004. A commercial mover, Duran was hit and thrown 30 feet by a moving truck.

“OxyContin, Percocet, morphine … It ruined my life,” he said. “It brought me to my knees.”

Unable to work, broke and desperate to feed his habit, Duran said he eventually began dealing cocaine to bring in cash, a mistake that landed him in jail for two years. Free of addiction now, he has become a licensed counselor at a substance use prevention and treatment program.

About 2.8 million private industry workers and 752,000 public sector employees suffered nonfatal workplace injuries in 2015, more than half

resulting in time away from work, according to the most recent figures from the federal Bureau of Labor Statistics.

According to a survey

by CompPharma, an industry group that seeks to control workers’ comp spending, more than $1.5 billion was spent on opioids by workers’ comp insurers in 2015, with prescriptions for injured workers accounting for 13 percent of total opioid pharmacy costs in the U.S. that year.

A separate study of 337,000 workers’ compensation claims in 25 states published last year by the independent Workers Compensation Research Institute found that 55 percent to 85 percent of injured workers who missed seven days or more of work received at least one opioid prescription.

Rates of longer-term opioid use varied widely among states, the study found, including 1 in 6 injured workers in Louisiana, and 1 in 10 in California, New York and Pennsylvania, but only 1 in 30 in New Jersey and Missouri.

States oversee workers’ comp insurance systems that employers pay into, and that provide medical care and help offset wage losses from on-thejob injuries.

Omar Hernandez, an administrative judge who resolves

20 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

workers’ comp disputes for the Massachusetts Division of Industrial Accidents, said injured workers belie a common misconception of addicts as people shooting up in back alleys.

“These are people from all walks of life that didn’t ask to get injured,” he said. “These are hard-working people who unfortunately suffered a work-related injury … and are now hooked on these drugs.”

After he and other judges became alarmed by overdoses and deaths among people in the state’s workers’ comp system, Hernandez spearheaded a voluntary program for people who had settled claims but were still being treated with opioids. It offers an expedited hearing process to resolve medication disputes with insurers and assigns care coordinators to help guide workers toward alternate pain treatments.

Calling opioid abuse a public health crisis that “deeply affects” injured workers in New York, the workers’ compensation board there

announced in October 2016 it would allow insurers to request hearings to determine whether a claimant should be weaned off opioids.

Under new rules issued by the Ohio Bureau of Workers Compensation, reimbursement for opioid prescriptions can be denied if it’s believed physicians are overprescribing or otherwise failing to follow “best medical practices” in treating injured workers.

The rules also allow the bureau to provide treatment for opioid dependence to workers who got hooked on painkillers after getting hurt.

Those and previous steps taken by Ohio to combat opioid abuse have resulted in 44 percent fewer injured workers receiving opioids in the past five years, saving $46 million in drug costs, said Melissa Vince, a spokeswoman for the bureau.

Duran’s advice to other injured workers is to use painkillers sparingly and get off of them as quickly as possible.

“Once you’re on these pills, you forget you’re hurt,” he said.

“You’re just about getting that high.”

Copyright 2017 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Construction

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Endorsed by the American Road & Transportation Builders Association (ARTBA).

Available limits: As needed Carrier: Unable to disclose, admitted States: All states Contact: Robert Ivey at rivey@ mckeerisk.com

Automotive Repair Market Detail: Roamnet

Insurance Marketing Programs’ (www.roamnetins.com) REPAIR program is available to automotive and automotive parts retail shops working on autos and light trucks and automotive parts stores (no dealerships). Available coverages include: general liability, fire

legal liability, business auto, employee tools, GKLL, EPLI, business personal property and workers’ compensation.

Available limits: As needed Carrier: Unable to disclose, admitted States: Ariz., Calif., Ga., Ill., Mass., Maine, Mich., N.H., N.J., Nev., N.Y., Ore., Pa., Texas, Utah, and Wash.

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Cyber

Market Detail: Victor O.

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physical abuse coverage of $50,000 per claim/$100,000 aggregate and higher optional limits available. No deductible required. Property coverage includes: basic, broad or special form; replacement cost or actual cash value; building; business personal property; business income; equipment breakdown; and more. Crime coverages available inside the premises – theft of money and securities; robbery or safe burglary of other property; and outside the premises.

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Affluent Homes

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Available limits: As needed Carrier: Unable to disclose, admitted and nonadmitted available States: All states Contact: Anne Duncan at 800878-9891, ext. 8654 or e-mail: aduncan@arlingtonroe.com

Transport Insurance Risk Retention Group Inc.’s (www. acrossamericainsurance.com) commercial auto liability coverage is offered through its program manager, Across America Insurance Services.

Available limits: Minimum $750,000, maximum $1 million Carrier: Unable to disclose States: Calif., Hawaii, Ind., Ohio, Texas, and Va. Contact: Brandon Laam at 855-788-4690 or e-mail: info@ acrossamericainsurance.com

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NATIONAL | Special Report | Commercial Auto

By Andrea Wells

T

he commercial auto market has a long road ahead to reach profitability after five consecutive years of underwriting losses from 2011-2015. While many insurers upped rates in 2016, the year appears to be coming in with another significant underwriting loss.

There isn’t a fix-all solution for the industry to get back on track, experts say. Simply raising rates in this challenging line isn’t enough. Carriers, insureds

and their agents must each play a role in managing today’s commercial auto market.

Commercial auto has had the poorest underwriting performance results of any line of commercial insurance in recent history, according to a report by Conning, Commercial Automobile Insurance - Fix Me,

Please (2017).

“Through the third quarter of 2016, results remained unfavorable from adverse loss frequency and severity trends,” Conning said. “The 2015 loss and combined ratios of 87.7 percent and 108.8 percent, respectively, were 15 points worse than commercial lines overall.”

As in personal auto, the rise in claims is cause for concern in commercial auto.

The increase is linked to higher medical costs associated with catastrophic injury

claims and increased distracted driving.

Chris Moulder, vice president and broker at Worldwide Facilities LLC, believes there are fundamental issues that

need to be addressed beyond increasing rates.

“The underwriters that specialize in commercial auto or specialty auto are starting to realize they can’t just throw rates at an underperforming class of business and just hope for improvement,” Moulder said. “It’s going to take a lot of work to improve performance,” he said.

Distracted Driving

Distracted driving is one of the biggest issues affecting commercial auto results.

Distracted driving – which includes using a cell phone, texting, using navigation systems and eating while driving — is to blame for more than 3,000 deaths each year, according to the Centers for Disease Control and Prevention (CDC).

Another 400,000 people are injured each year in distracted driving accidents and some 15 percent of those are generated from commercial motor vehicle accidents.

“It is a significant risk and has been for a number of years,” said Andrew Gibb, partner at the law firm Lindabury, McCormick, Estabrook, and Cooper, in a recent A.M. Best webinar titled “Pileup in Commercial Automobile.”

“The statistics regarding distracted driving across the board with commercial, personal and regular automobiles are eye-opening.”

Distracted driving is a growing problem, but it’s not the real reason accidents are trending up, according to Brian Sullivan, editor for Risk Information Inc. “The reason accidents, claims and deaths are going up is because more people are INSURANCEJOURNAL.COM

driving more miles,” he said.

More people on America’s roads equals more accidents.

Other factors are leading to the rise in auto accidents, too.

Speed is becoming a greater concern, especially in commercial auto.

“When it comes to speed, there are few things as directly correlated with death and driving as high speeds but states are ignoring that (correlation) and approving (higher speed limits),” Sullivan said.

Even after decades of state laws requiring seat belt use, concerns remain when it comes to auto claims, Sullivan added.

But no other factor has led to such a swift spike in auto claims as miles driven, Sullivan contends.

“The industry went from flat (claims) to up almost overnight about two years ago.

What changed that could make claims spike so quickly?” he asked.

‘Commercial auto is a very closed space and it’s hard to make money unless you know what you’re doing out there.’

“It wasn’t distracted driving,” Sullivan said. “It’s not seat belt use or even speed. The only thing that changed suddenly

was miles driven, which after about a seven-year period of going nowhere, literally not rising, started rising (suddenly) at a rate of about 3 percent a year.”

Sullivan said miles driven and accident rates aren’t linear.

“In other words, a 3 percent rise in driving doesn’t lead to a 3 percent rise in accidents,” he said.

An increase in miles driven will lead to more accidents because there are now 3 percent more drivers driving on a fixed road base.

“So the opportunity for accidents goes up exponentially and not in a linear fashion,” he stated. “That’s why accidents and death growth is outstripping miles driven.”

Estimates released in February by the Federal Highway Administration show U.S. driving topped 3.2 trillion miles in 2016, the fifth straight year of increased mileage on U.S. roads.

More than 263.6 billion miles were driven in December 2016 alone, which is a .5 percent increase over the previous December.

All Classes Feel the Heat

All types of transportation

classes are feeling the heat.

While capacity for most classes of transportation business remains available, insurers are hiking rates on coverage by double-digits for many insureds.

“Many carriers are pushing rates dramatically; well into double-digit rate increases for a lot of classes and subclasses,” Moulder said. Towing, in particular, is a tough class right now, he added. (see Tow Truck Market in Need of Repair in the Feb. 6., 2017 issue of Insurance Journal magazine) “Tow operators are seeing 20-plus percent increases in certain territories.“ According to Moulder, local and intermediate sand and gravel haulers are getting hit as well.

“Three or four years ago, a lot of the standard markets and sub-regional insurance carriers were willing to pick those up with ease and with very little rate,” he said.

That’s not the case today.

“Their performance did not meet expectations and I think many of those carriers have decided they didn’t want to write local intermediate haulers any longer so that’s driven

continued on page 26

NATIONAL | Special Report | Commercial Auto continued from page 25 the segment into E&S driven markets.”

“Commercial auto is a very closed space, and it’s hard to make money unless you know what you’re doing out there,” said George Wilk, a producer for American Business Insurance Services Inc., a transportation wholesale and retail broker for the taxi, limo and commercial auto fleet sector.

The taxi business is a segment where only a few carriers are willing to play, Wilk said.

When it comes to taxis, “commercial auto scares the crap out of underwriters because historically there’s been an attitude by insurance companies that taxi companies just hire people off the boat. They hire immigrants, people who can’t get a job anywhere else, and just throw them behind the wheel.”

That’s the wrong attitude, Wilk said. That attitude could be shared by the public and a reason the Lyfts and Ubers of the world have flourished.

“To some degree, that informed Uber, Lyft and the

rideshare apps because that was people’s attitude. It’s like ‘Well, I don’t feel comfortable getting in that car. What kind of training do they have? They don’t even know that language.’”

After specializing in the taxi market for 30 years, Wilk has come to know that taxis are generally good risks.

“They’re doctors and lawyers in their old country, but here they have to start at the bottom so the easiest jobs historically have been to drive a taxi. Then you move on to other things,” he said.

Managing Risk

Ultimately it takes expertise to produce good results in commercial auto – expertise at the carrier level and at the agent and broker level, Wilk said.

“When we got in the taxi business 30 years ago, we saw this segment didn’t put enough into its infrastructure and didn’t put enough into funding for training,” he said. “Now that’s what we try to bring to the marketplace. That’s what

26 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

agents need to do.”

The best thing an agent specialist can do to help a client is become immersed in the niche market. For Wilk, that started with getting involved in loss control.

‘The reason accidents, claims and deaths are going up is because more people are driving more miles.’

“We started having loss control committees with the taxi drivers,” he said. “The best regulation you can have are the (drivers) regulating themselves as opposed to an insurance company. It’s more powerful to have a fellow driver say, ‘Hey, what are you doing out there?

You’re speeding. What are you doing? You’re blowing a stop sign.’ We tried to get the independent taxi owners and taxi associations to help manage themselves because it’s always more powerful when someone who you respect in the industry is telling you something.

That’s still a process we do today.”

Telematic devices are “revolutionizing” the taxi sector and other areas of commercial auto.

“But at the same time, it’s made the taxi industry become much more savvy about handling its own business,” he said.

“Telematics has helped many of the taxi guys stay ahead of the curve where they can reduce their costs through lower claims. If they can manage their claims, they can better predict what their insurance premiums are going to be and flatten those out, and in some cases, even lower them.”

He said getting cameras in cars has also helped over the years.

For William P. Curtis Jr., founder of Porter & Curtis LLC, a consultative commercial property/casualty insurance broker, being an advocate for a customer rather than just an expert is the best solution when managing a tough market like commercial auto.

“We act as advocates for our customers. Our role is to solve problems,” Curtis said, whose firm doesn’t accept any form of carrier profit sharing or contingency income. “The best ideas come from people unburdened by ‘expertise’ in the insurance business.”

He said his firm creates customized risk management programs that reduce the cost of risk and uncertainty. Curtis admits that all auto carriers, personal and commercial, are lamenting their auto experience, but not his customers.

“For our customers, most of the cost is in the retained losses, so even material increases in premium do not necessarily make for a meaningful total cost increase,” Curtis said. “For our customers, the way to reduce costs is to reduce losses, because (losses) account for most of their cost. For a typical agent working with fully insured customers, they could be looking into loss sensitive alternatives (small liability deductibles) but I’d seek to distinguish my customers from others in the class by focusing on driver selection (via insurance score, not motor vehicle records) and safety via training.” Share this article with

a colleague.

IJMAG.COM/51HG

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Restaurants & Bars | Closer Look | NATIONAL

What to Know About Underwriting Restaurants & Bars

L

iquor liability claims are on the rise for the bar and nightclub sector. The number of insurance carriers willing to write tough to place establishments has dwindled fast, according to Marc Adler, Managing Director, Burns & Wilcox Brokerage in Scottsdale, Ariz.

“Liquor liability claims have increased.

Assault and battery claims have increased so underwriting approaches are tending to get a little more conservative," he said in this interview with Insurance Journal’s Andrea Wells.

Overall the number of carriers available to liquor driven or assault and battery related risks have diminished, primarily due to either state guidelines related to liquor (some jurisdictions are tougher than others) and the adverse claims history seen in the industry recently.

IJ: What should agents know when looking for a market for a harder-to-place restaurant or bar?

Adler: First and foremost, what are their

protocols in terms of safety? Liquor training is one of underwriters A&Mthe IJ first Self things Serve.pdf 1 5/16/16 will look for. They want to see which of

the national organizations servers will be trained under to make sure that everybody in that establishment, whether it be the server, waitress, waiter or bartender has been properly trained.

Next 2:29 PM would be the type of amusement or

continued on page 28

One Application. Multiple Quotes.

Insurance Journal: How do underwriters determine what qualifies a restaurant/ bar as primarily liquor driven?

Mark Adler: There’s certain criteria that underwriters look at in the market as to what makes a risk more liquor driven andC more susceptible. … A restaurant that M might have wine and alcohol service, but is really a restaurant, might have 30 to 50Y CM percent liquor sales. That’s because you’re selling very expensive bottles of wine. It MY doesn’t make them a true liquor driven CY risk. Whereas a bar might serve food, but 60 to 70 percent of sales is liquor. Your CMY alcohol consumption and exposure to K adversity goes up.

IJ: What are some of the more challenging states when it comes to the liquor liability claims?

Adler: Texas and Pennsylvania come to

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mind as being two of the tougher ones.

Nevada would be on the other spectrum.

It’s probably one of the lighter, easier states to underwrite.

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MMISSION O C % 5 1 S U PL

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MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 27

NATIONAL | Closer Look | Restaurants & Bars continued from page 27 devices used at the location, such as darts, dance floors, pool tables, etc. Mechanical bulls are a red flag.

The next thing, review security. Do they have a bouncer? Do they have armed security? Do they have unarmed security? Is it off-duty police? All that weighs into underwriting. While security may sound great, it presents a different exposure that must be underwritten. They have to understand the controls that are in place to handle the risk, whether it’s a third party providing the security to the bar or a direct employee of the bar.

IJ: What about assault and battery?

Adler: That depends on the class of busi-

ness. On restaurants, it’s pretty vanilla. You typically won’t find a limitation. … When you start to move into what we call the bar/ tavern or nightclub side of the industry

Atlas Financial - Half page - ATLASFIN16642.indd 1

28 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

then you get a little bit more specific. It can range from being silent to sublimiting coverage if there’s underwriting concerns or excluding it in total.

IJ: What is the biggest concern you see when it comes to insuring restaurants?

Adler: One of the biggest, and probably the

most popular, is foodborne illness. How many times do we see where a restaurant has a contamination exposure and is shut down? Any establishment in the food industry right now is in need of foodborne illness coverage. It helps protect the restaurant in terms of a business interruption claim should they have to shut down. It also helps protect trade name restoration.

Beyond that, a slip and fall injury or a chipped tooth from something in their food, those are probably the largest or the most critical items right now.

IJ: Is foodborne illness coverage a standalone policy or by endorsement?

Adler: It’s both. There are some standard

markets that will add some limited coverage to their package, but the most comprehensive coverage is a standalone coverage. … To truly get the most comprehensive coverage, a standalone policy is best.

IJ: Are most restaurants/bars buying cyber coverage today? Or is it only needed if they larger-size establishments?

Adler: I wouldn’t relegate it to a certain size.

The way we have the discussion with our clients is they need it regardless of size because the small restaurant that gets hit can’t sustain a financial loss like that.

Cyber is just as much in demand as foodborne illness, if not more. Again, to truly get the most comprehensive coverage, it purchase a standalone policy.

4/14/17 2:35 PM

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Agency-Carrier Contract Negotiations

By Chris Burand

O

ne of the worst sentences a contract attorney’s clients can hear when that attorney is opining on some onerous clause is absolutely the phrase: “I can win this in court.” For example, when a carrier gives an agency a new contract with severely lopsided clauses and your attorney says, “It’s ok. If something goes wrong, we can win in court.” Run or fire the attorney.

Here’s three reasons why such a prognostication is suicide:

You sign the contract.

When you sign a contract, you have a responsibility to read it and negotiate it before signing. Beyond responsibility, unless the reader is Mr. Moneybags, it is almost always far less expensive to negotiate before a contract is signed than after.

Additionally, before a contract is signed, you have more leverage. This part is not rocket science and it does not take a law degree.

Can you afford it?

Even if a party later determines an honest difference of opinion exists regarding the onerous clause, can you really afford the fight? Understand, court battles are not about justice. They are about winning.

Winning, especially if you are right and the other party is unequivocally wrong and 40 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

knows they are wrong but has deep pockets, does not mean they are going to admit they are wrong nor does it mean a court will recognize they are wrong. In cases like this, they often fight even harder because they can’t afford to set precedence.

Understand, too, that a contract attorney is rarely a litigating attorney. If they are both, they probably are not that good at one or the other or they would be practicing what they were really good at full time.

My experience as an expert witness working with both kinds of attorneys (contract and litigators) is that if you want to know whether something can be won in court, hire a litigator to review the situation. Do not depend on the contract attorney.

Another good use of a litigating attorney I’ve learned is that a litigating attorney is a good auditor of whether the contract attorney has written a strong contract.

If anyone advises, “We can win in court,” when they are working by the hour and they

do not advise that even with the best case, you are still likely to lose 20 percent of the time, find a different attorney.

The 20 percent rule is a good rule of thumb. The best litigating attorneys are consistent and even with the best cases,

Absolute Recommendations for Agency Contracts

Do not ever rely solely on attorneys who advise to sign because if push comes to shove later, they’ll win in court for you. At least get a second opinion.

Have someone who knows the industry and possesses significant practical applications and/or a litigation attorney review the contract. Understand that the most powerful negotiations involve the carrier’s executives/managers. If you only negotiate with carriers’ attorneys you will lose.

If you are conflict adverse or if you work for a decision maker that is truly conflict adverse, or heaven forbid, if you employ an attorney who is conflict adverse (as law is practiced in the U.S., it is designed on purpose to be adversarial so a conflict adverse attorney probably will be dead weight when litigating), hire someone to negotiate for you. If the conflict adverse person attempts the negotiations, they are the wrong person on the wrong bus on the wrong road. The stress will be too high to succeed. Hire out the work.

INSURANCEJOURNAL.COM

Searching for a workers’ compensation market? Look no further than Insurance Journal’s 2017 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.

AAU, A division of USG Insurance Services Contact: Curtis Kochman Phone: 724-754-9052 ; Fax: 724-754-9011 Email: ckochman@aauins.com Website: www.aauins.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

Agency Resources Contact: Florencia Robledo Phone: 908-988-2804 ; Fax: 866-397-8332 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 except Monopolistic ■ Admitted Status: Admitted

30 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

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 2017 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.

AIC Underwriters Contact: Goo Sakhleh Phone: 866-984-3314 ; Fax: 877-299-9851 Email: aicumarketing@aicunderwriters.com Website: www.aicunderwriters.com ■ Markets Offered: USL&H, Workers’ Comp, Staffing & PEO ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: 1,000/1,000/1,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: Amerisafe, Amtrust, Berkley Net, AIG, Guarantee, Meadowbrook, National Liability and Fire, Normandy Harbor, RTW, Travelers, QBE, MCIM, ICW, Midsouth Mutual, Innovative Solutions Group, and Everest Align General Insurance Agency, LLC Contact: Mike Tudman 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

AllComp Solutions Contact: Geoff Pratt Phone: 610-808-9586; Fax: 610-941-9889 Email: workerscomp@nsminc.com Website: www.allcompsolutions.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: 10 National Carriers 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

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2017 Workers’ Compensation Directory Alternative Market Services, Inc.

Phone: 855-924-1597 ; Fax:916-751-5911 Email: info@amsprograms.com Website: www.amsprograms.com ■ Markets Offered: PEO, Workers’ Comp, PayGo ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: All Carriers

AMERISAFE

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 ■ Phone Inquiries: Accepted ■ Minimum Premium: $10,000 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: Most States For more info, check out our ad on pg 12 (S. Central) or pg 7 (Southeast) AMIS/Alliance Marketing & Insurance Services, LLC Contact: Sean Nowell Phone: 800-843-8550 ; Fax: 800-573-8550 Email: snowell@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: Employers 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 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

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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: Varies by state ■ 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 Represented: Various National & Regional Carriers Appalachian Underwriters, Inc. Contact: Derek Roberts Phone: 888-376-9633 ; Fax: 888-871-7644 Email: marketing@appund.com Website: www.appund.com ■ Markets Offered: Exclusive WC Programs for Construction, Healthcare, Temp Staffing, Trucking, USL&H, and Aviation Risks. New Ventures/No Prior Eligible.

■ Phone Inquiries: Accepted ■ On-line portal accessible ■ Minimum Premium: $750 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: All States except Monopolistic ■ Admitted Status: Admitted ■ Carriers Represented: Multiple A.M. Best ‘A’ Rated Carriers.

Applied Underwriters, Inc. Applied Underwriters

Cover Tip Phone: 877-234-4450Insurance ; Fax:Journal 877-234-4452 Live 7.875” x 7.5” Email: sales@auw.comTrim 8.125” x 7.75” Bleed 8.375”x 8” Website: www.auw.com ■ Markets Offered: Workers’ Comp, EPLI, E&O, D&O, Payroll ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 annual ■ Limits: none ■ Brokered Business: Accepted ■ States Entered in: All States except TX ■ Admitted Status: Admitted ■ Alliances With: Applied Underwriters is a Berkshire Hathaway company For more info, check out our ad on pages 4 & 5 (National) & on the Back Cover Applied Underwriters

AU Golf IJ Cover Tip

Contact: Sheila Gallagher

P: 707-395-0645

Email: sgallagher@auw.com

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 23 (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: Chuck Holdren, VP Product Development Phone: 855-309-3310 Email: chuck@atlas.us.com Website: atlas.us.com ■ Markets Offered: Workers’ Comp with broad underwriting appetite including healthcare, construction, transportation & agriculture (new ventures not eligible for these classes).

■ Phone Inquiries: Accepted ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple exclusive and wholesale “A” rated carriers 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: marketing-wc@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

MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 31

2017 Workers’ Compensation Directory

Boston Insurance Brokerage, Inc.

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.

Brownyard Programs, Ltd.

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.

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.

BreckComp Program of Blue River Underwriters West Contact: Vicky Williams - Phone: 559-326-5775 Email: vwilliams@blueriveruw.com East 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: Accepted ■ Program Available in: Most States ■ Admitted Status: Admitted Breckenridge Insurance Services Phone: 855-728-8822 Email: partner@breckis.com Website: www.breckis.com ■ Markets: Workers’ Comp, MGU, Wholesale Brokerage ■ Phone Inquiries: Accepted ■ Minimum Premium: $5,000 ■ 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, First Comp, Guard, Hartford, RTW, 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 ■ Limits: EL up to $1M ■ Brokered Business: Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted ■ Carriers: Arch Insurance Company, Employers 32 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

Contact: Taylor Guercio/Blair Brownyard Email: Taylor@brownyardprograms.com Email: lair@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

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 Burns & Wilcox Contact: Justin Dorman Phone: 248-932-9000 Email: quote@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 Care Providers Insurance Services, LLC Contact: Randy Hedlund Phone: 972-427-9181; Fax: 800-224-7145 Email: cps-submissions@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: Frank Tarantino Phone: 800-352-2761 ; Fax: 415-536-4033 Email: frank_tarantino@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: Nova, 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.cidinsurance.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.

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2017 Workers’ Compensation Directory 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.caislive.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $495– 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, Non- Subscriber 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 (WC:) Accident Fund, American International, Amerisafe, AmTrust, Berkshire Hathaway, Service Lloyds, State National, Markel (First Comp), Texas Mutual, Worth Casualty Insurance.

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 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 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

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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 Eastern Underwriting Managers Contact: Garland Byrd Phone: 865-347-2220 ; Fax: 865-312-9610 Email: garland@easternunderwriting.com Website: www.easternunderwriting.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Brokered Business: Not Accepted ■ States Entered in: AL AR FL GA ID IL IN KS KY MO MS NC NJ OK SC TN VA ■ Admitted Status: Admitted 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, Alternative Risk, PEO ■ Phone Inquiries: Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Not Accepted ■ States Entered in: Most States ■ Admitted Status: Admitted & Non-admitted ■ Carriers: ACE/Chubb, AIG, Century Surety, Employers, Benchmark, Berkshire Hathaway Guard, ICW, Kinsale, Lloyds of London, RLI, RTW, Seneca Specialty, Sompo, Starstone, and many others.

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 Co. (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: Most States 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

MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 33

2017 Workers’ Compensation Directory 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: Most States ■ Admitted Status: Admitted ■ Alliances With: AmTrust, Employers, 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 Represented: Florida Citrus, Business & Industries Fund For more info, see our ad on pg 9 (Southeast)

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

34 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

Houston International Insurance Group Contact: Cooper Wallach Phone: 713-935-7414 ; Fax: 713-467-8238 Email: cwallach@hiig.com Website: www.hiig.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $100 ■ Limits: Statutory ■ Brokered Business: Not Accepted ■ States Entered in: TX ■ Admitted Status: Admitted ■ Carriers Represented: Great Midwest Insurance Company 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: Trisha Rule 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 MI NC NJ NV OK PA SC TN TX VA WI ■ Admitted Status: Admitted ■ Alliances With: Mitchell International 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: $1,000 ■ 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 or 202 ; Fax: 201-797-1076 Email: g. or 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 incl. 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, Crum & Forster, Employers Ins. Group, Hartford Ins. Group, ICW Group, Meadowbrook, RTW, 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 ■ Brokered Business: Accepted ■ States Entered in: All Nonmonopolistic States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, Berkshire Hathaway, Travelers, Crum & Forster, ACE INSURANCEJOURNAL.COM

2017 Workers’ Compensation Directory 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: Kathy 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.

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: LowRateWorkComp@gmail.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: ASO payroll model in Califorina 4 PEOs – Writing All classes depending on state.

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Markel Specialty Contact: Dan Kennedy Phone: 804-217-8820 Email: customerservice2@markelcorp.com Website: www.markelinsurance.com/smallbusiness ■ Markets Offered: Workers’ Comp, BOP and specialty package policies ■ Phone Inquiries: Accepted ■ Minimum Premium: N/A ■ Brokered Business: Limited ■ States Entered in: Most. See website for details.

■ Admitted Status: Admitted

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.

MarketScout Chris Kerr - 972-934-4206 ; Dan Fouts - 972-934-4231 Jon Maloney - 770-262-0383 ; John McGee -570-554-4506

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: $10,000,000 ■ 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.

Patricia Haas - 972-934-4216 ; 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, Construction Program, 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 Represented: See website for full list

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: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: AL GA TX ■ Admitted Status: Admitted & Non-admitted ■ Carriers: Travelers, AIG, First Comp, Redpoint

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 ■ General Min Premium: $1k ; Contractor Min: $5k ; Tucking & Staffing: $10k ■ 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 carriers only ■ Carriers Represented: AIG, AmTrust, Amerisafe, BerkelyNet, BHHC, Employers, Guard, Meadowbrook, National Liability & Fire, QBE, Risk Administration Services, RTW, StoneTrust, V3

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: As low as NCCI Minimums ■ 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 11 (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 MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 35

2017 Workers’ Compensation Directory

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: bwallace@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 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, PacificComp 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 ■ 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, AmTrust, AIG

36 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

Normandy Insurance Company Contact: Laura Lieberman Phone: 866-688-6448 ; Fax: 866-688-6448 Email: applications@normandyins.com Website: www.normandyins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,000 ■ Brokered Business: Accepted ■ States Entered in: FL GA PA VA ■ Admitted Status: Admitted NSM Insurance Group Contact: Ciara Kwiatkowski Phone: 610-941-9877 ; Fax: 610-941-9889 Email: ckwiatkowski@nsminc.com Website: www.nsminc.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: 10 National Carriers Number One Insurance Agency, Inc. Contact: Michelle St. Angelo Phone: 508-634-7364 ; Fax: 508-634-2930 Email: mstangelo@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, Hard- to-Place WC, 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

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: Multiple Carriers Represented 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, Liquor Liability ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: Statutory ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted

PEO Brokers Group

Contact: Steve Brown Phone: 877-810-9355 Email: swbrown@peobrokersgroup.com Website: www.peobrokersgroup.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Multiple Plimsoll Specialty Markets, LLC Contact: Michael Clark Phone: 770 933-6925 Email: mclark@plimsollspecialty.com Website: www.plimsollspecialty.com ■ Markets Offered: Workers’ Comp, Aircraft Hull and Liability, Aviation General Liability and Aviation/Aerospace Products Liability ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $2,000,000,000 ■ Brokered Business: Accepted ■ States Entered in: All Major North American Aviation/ Aerospace Underwriters Plimsoll Specialty Markets is an aviation specialty wholesale brokerage staffed by a seasoned group of Aviation and Aerospace Insurance executives. We have access to workers’ compensation markets for any aviation or aerospace related businesses from flight crews to aircraft repair and service to aerospace manufacturing and airport and airline service contractors.

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2017 Workers’ Compensation Directory 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: $300 ■ 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).

Program Brokerage Corporation Contact: Cynthia O’Brien, President - Wholesale Div. Phone: 866-607-8370 ; Fax: 212-338-2910 Email: info@programbrokerage.com Website: www.programbrokerage.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: $1M ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: AIG, AmTrust, C&F, CNA, Everest, Guard, Hanover, Hartford, Star, Travelers, Zurich Red Rock Financial Group, Inc. DBA: The Workers Compensation Insurance Place Contact: Lawrence Levine Phone: 520-975-2505 Email: info@redrockfg.com Website: www.redrockfg.com ■ Markets Offered: Workers’ Comp (High Risk) (High mode 1.75+): Roofers, Framers, Excavators, Truckers 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

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Risk Innovations, LLC

Contact: Jeff Sandy Phone: 816-251-1608 ; Fax: 866-262-5802 Email: jeff@wc.guru 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. Phone: 866-595-8413 Email: Contact_Us @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 RMIS Contact: Monica Tobin Phone: 714-738-1383 ; Fax: 714-921-1160 Email: WC@RMISmga.com Website: www.RMISmga.com ■ Markets: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: $500 ■ Limits: All ■ Brokered Business: Accepted ■ States Entered in: AZ CA IA IL IN MN MO NE NM NV TX WI ■ Admitted Status: Admitted ■ Carriers Represented: Employers, AmTrust, Travelers, FirstComp/Markel

RoamNet Insurance Marketing Programs

Contact: Rusty Manzo Phone: 877-272-0333 ; Fax: 909-987-2245 Email: rustym@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: Hanover, Travelers, Zenith, CompWest, & Preferred Employers

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 For more info, see our ad on page 19 (National).

SDS General Insurance Services, Inc. Contact: Richard Luna Phone: 714-525-0036 ; Fax: 714-525-0397 Email: richard@sdsins.com Website: www.sdsins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $1,000 ■ Limits: $1,000,000 ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted ■ Carriers Represented: Oakriver/Cypress/Redwood, Republic Indemnity, First Comp, Employers Compensation, AmTrust North America Seguros Underwriters, LLC Contact: Carlos Avila Phone: 888- 981-1701 ; Fax: 877- 834-3882 Email: marketing@segurosuw.com Website: www.segurosuw.com ■ Markets Offered: Workers’ Comp, Construction, Healthcare, Trucking ■ Phone Inquiries: Accepted ■ Minimum Premium: $300 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Accepted ■ States Entered in: AZ CA FL GA MO NC SC TN TX ■ Admitted Status: Admitted ■ Carriers Represented: RTW, NLF, Midsouth

MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 37

2017 Workers’ Compensation Directory 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, Self- Insurance 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 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: Liberty Mutual, 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 Cover Tip ad (West).

StateFund First

Contact: Frank Tarantino Phone: 415-536-8438 ; Fax: 415-536-6003 Email: frank_tarantino@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 3 (West).

38 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

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

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.txogainsurance.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

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: No minimum ■ Limits: 100/100/500 minimum ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: All Major Carriers

The American Equity Underwriters, Inc. Contact: Leslie Lash Phone: 251-415-3638; Fax 251-690-4299 Email: leslie.lash@amwins.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: American Longshore Mutual Association (ALMA) a U.S. Department of Labor approved group mutual association

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 ■ Phone Inquiries: Accepted ■ Minimum Premium: $250 ■ Limits: $1M / $1M / $1M ■ Brokered Business: Not Accepted ■ States Entered in: TX AZ AR CA CO FL KS LA MI MO NV NM NC OK SD TN WA ■ Admitted Status: Admitted ■ Carriers: Accident Fund, ACE USA, AIG, Amerisafe, AmTrust, Employers, Essex Ins Co, First Comp, Great American, Hanover, ICW Group, Redpoint, Travelers, Service Lloyds, Scottsdale For more info, see our ad on the Inside Front Cover (S. Central & Southeast).

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 page 9 (S. Central).

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 Represented: The Hartford, Berkshire Hathaway, AIG

The MEMIC Group

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 For more info, check out our ad on pg 21 (National).

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 INSURANCEJOURNAL.COM

2017 Workers’ Compensation Directory U.S. Risk Contact: Wendy Sanderson Phone: 941-309-7203 Email: wendy.sanderson@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 Universal Insurance Programs Contact: Jenny Bortman Phone: 800-844-2101 ; Fax: 866-512-2272 Email: info@uiprograms.com Website: www.uiprograms.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted ■ Minimum Premium: None ■ Brokered Business: Accepted ■ States Entered in: All States ■ Admitted Status: Admitted

V3 Insurance Partners, LLC

Contact: Pam Wagner Phone: 215-600-0749 ; Fax: 215-475-3959 Email: Pam.Wagner@v3ins.com Website: www.V3ins.com ■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Not Accepted ■ Minimum Premium: $5,000 ■ Limits: Standard statutory limits ■ Brokered Business: Not Accepted ■ States Entered in: All States ■ Admitted Status: Admitted For more info, see our ad on pg 39 (National). --->> 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

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MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 39

they still have a 20 percent chance of losing.

Can they negotiate and litigate?

Why would an attorney, or anyone, so confident of winning in court not be confident of winning in negotiating the contract before it is signed? In my experience, it is because they do not know how to negotiate and/or they do not like confrontation.

If they do not know how to negotiate and they do not handle confrontation well, how will they win in court?

The following are a few better solutions to consider:

Negotiate Upfront

You always have more leverage before signing a contract because you haven’t already agreed to the contract by signing it.

Even if the other party will not budge and is transparent regarding their unwillingness to budge, you always have more leverage before signing a contract because you can always walk away from the deal INSURANCEJOURNAL.COM

before you sign it.

If you must sign the egregious contract, or any contract, you absolutely must have the carrier/vendor negotiate anyway or sign it under stated duress. With a good attitude, benefits exist and one can have some fun with the other party even in these situations.

Under Duress

Contracts signed in these scenarios may be termed as signed under duress, too. If you then have to go to court, at least you can, if documented, make the case the contract was signed under duress instead of having to explain you were an idiot for signing such a one-sided agreement.

What can you do to avoid being put into a “I have no choice but to sign” situation?

• Don’t use company service centers. If you do, eventually you will find yourself in this situation unless you are exceptionally good and take the time to build a quality contingency plan.

• Don’t put all your eggs in one basket – period.

• If you are conflict adverse, which many agency owners and executives are, hire someone who is not conflict adverse to manage your carrier relationships. Most of the conflict is only in the heads of the agency owner/executive. It is a figment of their imagination although after trying to explain this point to dozens and dozens of agency owners, the conflict is as real to them as if a tank was knocking on their door. The anxiety is real. It reminds me of movies where a drugged-out character hallucinates. Their hallucinations are real to them. The conflict anxiety is real, but only to one person.

The World Changes

Even when one feels they absolutely have no choice but to sign an unfair contract the attorney “can win in court,” is the decision being made without thinking the world will change? I hear agents say: “But they’re the only company that will write….” This is such a soft market and a fast-changing market that with the right strategy and quality execution of that strategy, other options almost always exist.

Even if choices do not exist today, a high probability exists that new options will appear in the near future so why close the door to those options by signing a horribly unfair contract today? At least procrastinate signing. Share this article with a

colleague.

IJMAG.COM/51VK Burand is the founder and owner of Burand & Associates LLC based in Pueblo, Colo. Phone: 719-485-3868.

E-mail: chris@burand-associates.com

Advertisers Index

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

Amerisafe www.amerisafe.com SC12, S7 Anderson & Murison www.andersonmurison.com 27 Applied Underwriters www.auw.com 4, 5, 44 Arrowhead General Insurance Agency www.arrowheadgrp.com 23 Atlas Financial Holdings www.atlas-fin.com 28 CTC Transportation Insurance Services https://insurancetruck.com 13 Digital Recognition Network www.drndata.com 14 First American Specialty Insurance Co. www.firstam.com W9 Foremost Insurance Group www.foremoststar.com 7 FUBA Workers' Comp www.fubaworkerscomp.com S9 Golden Bear Insurance Company www.goldenbear.com W7 Louisiana Commerce & Trade Assoc. www.lctacomp.com SC13, S9 MEMIC www.memic.com 21 Midlands Management Corporation www.midlandsmgmt.com SC11 Monarch E&S Insurance Services www.monarchexcess.com W5 National General Insurance www.nationalgeneral.com 2 Pacific Gateway Insurance Services www.pgiainsurance.com W11 PersonalUmbrella.Com www.personalumbrella.com 43 Philadelphia Insurance Companies www.phly.com 3 Safety National www.safetynational.com 19 Sentry Insurance www.sentry.com 9 South & Western www.southandwestern.com SC3 State Compensation Insurance Fund www.statefundca.com 1, 3 State Fund First www.statefundfirst.com W3 Summit www.summitholdings.com SC7, S5, M5 Tejas American General Agency www.taga1.com 3, 3 Texas Mutual www.texasmutual.com SC9 United Fire Group www.ufgsolutions.com W14 V3 Insurance Partners www.v3ins.com 39

MAY 1, 2017 INSURANCE JOURNAL | NATIONAL | 41

Closing Quote Why the Focus Should Be on Older Workers

By Sharon Emek, Ph.D.

L

ately there’s been plenty of talk about attracting millennials to the insurance workforce. Employers are abuzz with plans to attract and recruit young talent. The only problem is the millennials aren’t showing much interest.

A 2014 study conducted by The Hartford revealed that just 4 percent of millennials are drawn to the insurance industry when it comes to career options. So the industry is focusing a large portion of its efforts on appealing to them from a needs perspective.

That’s creating a different problem. While it’s important to bring young talent into the industry, employers may be missing a real opportunity that all but guarantees a high level of engagement and talent. That talent is already engaged and working.

It’s the boomer generation, and they’re about to walk out the door.

According to the U.S. Bureau of Labor Statistics, there are roughly 693,000 insurance pro-

fessionals who are 55 or older, a 74 percent increase in the age group within the last 10 years.

By next year, nearly one-fourth of all insurance professionals will be within a decade of retirement. With them will go knowledge and skills that span decades.

It begs the question: Why are we not engaging the skilled workforce right in front of us?

Perhaps it’s because we operate under the false impression that older workers aren’t interested in extending their careers, that traditional retirement age is the rule of law. Yet every day, I see these retiring workers – “pretirees” – who want to leave behind the stresses of the job, but not the job itself.

We as an industry aren’t recognizing that. We’re losing top talent because we’re not accommodating their needs.

Needs of the Older Worker

Part of the problem in keeping older workers engaged lies in how employers perceive the workplace. Many workers aged 55 and older are happy to continue working beyond the traditional retirement age, but don’t want the commute or the long hours. They want more quality of life, and that includes cutting back on the time spent in the office and on the road.

Yet companies are slow to recognize this. All too often, companies don’t offer any type of step-down or half-time working options, nor do they consider the option of having workers contribute from a

42 | INSURANCE JOURNAL | NATIONAL MAY 1, 2017

The pervasiveness of mobile devices has changed consumer expectations. remote location. It’s a huge missed opportunity, for many home-based workers not only continue to contribute, but do so at a high level of engagement.

It’s also a disconnect in not understanding today’s older insurance professional. Today’s pretiree is facing a number of issues, including: • A better work-life balance: Many older workers may want to relocate, improve their quality of life, or just reapply themselves in a less stressful, more hands-on career shift.

• Supplemental income: Retirement savings took a hit during the recession, and many boomers may not have adequate savings to last through their retirement.

• Family pressures: Sandwiched between children who are struggling beyond college and aging parents requiring more of their time, older workers are finding more constraints on both their time and their finances.

• The desire to contribute: Many retirement-aged professionals simply don’t want to stop working.

The Win-Win

It behooves the insurance industry to consider alternative work arrangements for its older workforce. Offering alternatives beyond the traditional business model can help older workers meet their retirement goals, family obligations and work-life balance. .

Older workers have plenty more to contribute, and they’re looking for alternatives to the traditional nine-to-five. The smart company will recognize these needs and accommodate them with remote positions and more flexibility.

Emek, Ph.D., is president & CEO of Work At Home Vintage Experts, a contract staffing firm that matches retiring insurance professionals leaving the regular workforce to other firms. Email: sharon.emek@wahve.com or phone: 646.807.4372, ext. 3754.

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