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MAY 2, 2016 INSURANCE JOURNAL | NATIONAL | 1INSURANCEJOURNAL.COM

WEST REGIONLloyd’s Exec Hails E&S Sector

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ContentsMay 2, 2016 • Vol. 94 No. 9 • West

6 | INSURANCE JOURNAL | WEST MAY 2, 2016

West W1 Organized Crime Ring in California Busted for Auto Collision Fraud

W2 Washington Workplace Deaths in 2015 Fell to Near-Historic Low

W2 Proposed Restrictions Building in Oregon’s Flood Plains

W4 Lloyd’s America Chief Says E&S Sector ‘Best Kept Secret’

W10 Schwarzenegger, Hartwig to Headline May Southern California Symposium

Idea Exchange27 Academy Journal: Christopher Boggs on Combinability of Insureds

30 Tech Talk: Does Digital Proficiency Affect an Agency’s Valuation?

42 The Competitive Advantage: Chris Burand

44 How to Grow Your Agency One Call at a Time

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

National

10 Captives View Business Interruption as Top Cyber Threat

12 Closer Look: Lessons Learned for the Restaurant Industry

18 Spotlight: 10 Things to Know About Taxis, Limos & Fleets

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

24 Special Report: Cutting into Healthy Workers’ Comp Market

32 2016 Workers’ Comp Directory

DepartmentsW6 People

11 Declarations

11 Figures

16 Business Moves

20 MyNewMarkets

W1 ORGANIZED CRIME RING IN CALIFORNIA BUSTED FOR AUTO COLLISION FRAUD

12 LESSONS LEARNED FOR THE RESTAURANT INDUSTRY12 LESSONS LEARNED FOR THE RESTAURANT INDUSTRY

42 THE COMPETITIVE ADVANTAGE

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8 | INSURANCE JOURNAL | NATIONAL MAY 2, 2016 INSURANCEJOURNAL.COM

Getting Away with Unethical Conduct

Take that coworker who wastes time. He mismanages resources. He’s been known to engage in activities that others in the office consider conflicts of interest. Yet, he seems to “do no wrong” in the eyes of the company.

Why? Because he’s producing. A new Baylor University study published in Personnel Psychology – “I Don’t Want to be Near You, Unless…: The Interactive Effect of Unethical Behavior and Performance onto Workplace Ostracism” – investigates why employees’ unethical behaviors may be tolerated versus rejected. “In this study, we’re asking the questions: When and why are people ostracized – or excluded from the group – while at work?” said the study’s lead author, Matthew J. Quade, Ph.D., assistant professor of man-agement in Baylor’s Hankamer School of Business. “Our research contributes to an ongoing conversation regarding whether people’s competence is more important than morality within the context of organizations.” Researchers conducted a total of three studies and surveyed 1,040 people, includ-ing more than 300 pairs of supervisors and their employees. Study results show:• High job performance may provide a motivated reason to ignore moral violations.• Unethical people are more likely to be ostracized if they do not perform well.• These results exist regardless of gender.• These results exist regardless of the ethical culture of the organization. “Unethical, high-performing employees provide contrasting worth to the organi-zation,” researchers wrote. “The employees’ unethical behaviors can be harmful, but their high job performance is also quite important to the organization’s success. In this vein, high job performance may offset unethical behavior enough to where the employee is less likely to be ostracized.” On the flip side, unethical, low-performing individuals do not fare as well. “Unethical, yet high-performing employees, their work groups, and their organizations may exist on a false foundation that has the potential to crumble and cost employees their jobs and their organizations significant amounts of money,” researchers said. The study offered two suggestions:• Make it clear that employees’ unethical

behaviors, regardless of performance, will not be tolerated.

• Provide a more functional way for employ-ees to respond to unethical employees.

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Editor-in-ChiefAndrea [email protected]

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West EditorDon [email protected]

International EditorL.S. [email protected]

Columnists Christopher Boggs, Chris Burand, Tom Wetzel

Contributing Writers Johnna McCooey, Hilary Rowen

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ADMINISTRATION Chief Financial Officer Mark Wooster [email protected]

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insurancejournal.com/subscribeInsurance Journal, The National Property/Casualty Magazine (ISSN: 00204714) is published semi-monthly by Wells Media Group, Inc., 3570 Camino del Rio North, Suite 200, San Diego, CA 92108-1747. Periodicals Postage Paid at San Diego, CA and at addi-tional mailing offices. SUBSCRIPTION RATES: $7.95 per copy, $12.95 per special issue copy, $195 per year in the U.S., $295 per year all other countries. DISCLAIMER: While the information in this pub-lication is derived from sources believed reliable and is subject to reasonable care in preparation and editing, it is not intended to be legal, accounting, tax, technical or other professional advice. Readers are advised to consult competent professionals for application to their particular situation. Copyright 2016 Wells Media Group, Inc. All Rights Reserved. Content may not be photo-copied, reproduced or redistributed without written permission. Insurance Journal is a publication of Wells Media Group, Inc.

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

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NationalCaptives View Business Interruption as Top Cyber Threat: Aon Global Risk

The costs of business interruption due to a breach is the top cyber risk concern for businesses across all

industries, according to a new survey of captives. Aon Global Risk Consulting, in its 2016 Captive Cyber Survey report, found that 95 percent of companies surveyed believe that the most important issue in cyber insurance is clear policy wording, and 75 percent of large companies have concerns about the loss adjustment process. Other findings from the report include:61 percent of survey respondents buy cyber limits in the $10-25 million range, but overall 60 percent of large companies do not buy cyber insurance. Of those that do, 68 percent of compa-nies surveyed buy cyber for balance sheet protection closely followed by ensuring due diligence comfort for the board. Only 25 percent of respondents that buy limits are confident that they comply with international best practices and standards for information security governance. Aon analysts said that while captives are aware of the growing threat of cyber attacks, they lag in assessing their own risk and insurance needs. “Our findings also indicate that there is a disparity between companies rec-ognizing that cyber is one of the fastest growing and permeating risks, and actu-ally understanding what their individual exposures and coverage needs are,” said Peter Mullen, chief executive officer of Aon Risk Solutions’ Aon Captive and Insurance Management practice, who spearheaded the report. Aon’s first cyber captive survey gathered input from risk managers and directors from more than 125 captives.

MAY 2, 2016 INSURANCE JOURNAL | WEST | 1INSURANCEJOURNAL.COM

West

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

Organized Crime Ring in California Busted for Auto Collision Fraud

Juan Ortiz Velazquez, 27, of San Jose, Calif., and owner of Carlos Auto Body, was arrested with seven other

suspects in April and charged with mul-tiple counts of felony insurance fraud for allegedly filing 20 fraudulent claims with four insurance companies for crashes that never occurred. The acts reportedly led to more than $140,000 in losses. A ninth suspect remains at large and is being sought. After receiving an anonymous tip and a suspected fraud referral from a victim insurer in 2012, the California Department of Insurance launched an investigation. Evidence revealed the alleged crimes, that led to the arrests

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

2 | INSURANCE JOURNAL | WEST MAY 2, 2016 INSURANCEJOURNAL.COM

WEST | News & Markets

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

Washington Workplace Deaths in 2015 Fell to Near-Historic Low

Workplace deaths in Washington fell to a near-his-

toric low in 2015, according to a Department of Labor & Industries report out in mid-April. Last year there were 58 work-related deaths in the state, 18 fewer than in 2014,

and L&I data shows only 2011 and 2013 had fewer work-related deaths report-ed (53 and 54, respectively). Workplace

deaths in Washington

have declined by roughly 3.5 per-

cent a year since

inated buildings. The EPA then began investigating and ordered the developer in 2015 to clean up the asbestos-filled debris, which was estimated to cost the company more than $65,000. Gateway Parks owner Ryan Neptune said it was cheaper to settle with the EPA than to con-tinue arguing with the federal government. Copyright 2016 Associated Press.

Idaho Ski Park Developer Settles with EPA over Asbestos Violation

A Boise, Idaho ski and snowboard park developer has

agreed to pay the federal government $10,000 to set-tle a claim that it violated asbestos removal regula-tions. Gateway Parks LLC was accused of not giving the U.S. Environmental Protection Agency proper notice on plans to demolish asbestos-contain-ing buildings. The EPA requires devel-opers to notify government inspectors before demolition to ensure that all asbestos has been removed. Gateway Parks purchased the abandoned two-acre lot in 2014 and soon demolished several asbestos-contam-

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

Proposed Restrictions Building in Oregon’s Flood Plains

Building in flood zones is about to get harder across much of Oregon,

due to new federal recommen-dations. The government published the recommendations, called a biological opinion, in response to a lawsuit from environ-mental groups. The Audubon Society of Portland, National Wildlife Federation, Northwest Environmental Defense Center and Association of Northwest Steelheaders had argued that federal flood insurance was encouraging development det-rimental to threatened salmon. Will Stelle, regional admin-istrator for the National Oceanic and Atmospheric

Environmental groups have signaled their sup-port, and optimism that the changes to flood insurance could improve recovery efforts for threatened salmon and steelhead. The two agencies at the center of the changes,

NOAA and FEMA, do not see eye-to-eye on all aspects of what about the federal flood insurance program should change. As NOAA region-al administrator Will Stelle explained on a conference call the two agencies differ on the approaches to take. Copyright 2016 Associated Press.

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

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

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

If insurance is the best kept secret in the business world, then the E&S sector

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

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

ellite goes straight up and back down, and that’s $350 million - $400 million,” he said. “That’s a bad day.” Property insurance, where E&S is a big player in coastal communities like those in Florida and those along the Eastern Seaboard, can also be

risky, he said. An example he used was the hit Lloyd’s took from Superstorm Sandy in 2012. “Lloyd’s alone had about $2.5 billion of that $25 billion loss,” he said. Of course, since Lloyd’s is noted for insur-ing stars, taste buds and ath-letes, Watkins also drew the students’ atten-

Hank Watkins, president of Lloyd’s America, talked about excess and surplus lines at E&S Day at Cal State University Fullerton’s Center for Insurance Studies, which is part of the Mihalylo College of Business and Economics.

continued on page W8

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WEST | PEOPLE

Irvine, Calif.-based Burnham Benefits Insurance Services Inc. has named Tricia McVeigh a senior account manager. McVeigh will in the trucking, transportation and logistics sector. McVeigh has more than 30 years of experience. She previously was a senior analyst at Benefits Exchange Alliance, and prior to that she was with The LBL Group, Insurance & Financial Planning. Burnham Benefits also named Sara Corp a senior account manager. Corp will be located in the Sacramento, Calif., area. She has more than 15 years of experience in employee benefits. Corp was an account executive at Benefit & Risk Management Services prior to Burnham. She was an account manager at Benefit Mall and Valley Oaks Insurance before that. Burnham Benefits is an employee benefits con-sulting and brokerage firm.

InterWest Insurance Services LLC has named Grant Rappleye to its employee benefits broker team in Sacramento, Calif. He was formerly a men’s assistant golf coach at California State University Sacramento. InterWest is an insurance brokerage with eight offices throughout the state.

Workers’ Compensation Appeals Board Chairwoman Ronnie Caplane has retired. Caplane was appointed commissioner in 2003 by Gov. Gray Davis, reappointed in 2009 by Gov. Arnold Schwarzenegger, and named chair by Gov. Jerry Brown in 2011. During her tenure on the board, the California workers’ compensation laws underwent two major reforms. She joins Zenith Insurance Co. as a vice president following retirement.

Walnut Creek, Calif.-based CSAA Insurance Group has named J. Paul McCaffrey Jr. its chief financial officer. McCaffrey has more than 25 years of experience. Most recently he was executive vice president, CFO and treasurer at Grange Insurance. McCaffrey was a senior manager with Ernst & Young prior to Grange Insurance. He previously held finance roles with International Total Services, Revco D.S., and Sherwin-Williams. CSAA Insurance Group is an AAA Insurer.

Phoenix, Ariz.-based CopperPoint Mutual Insurance Co. named Marc E. Schmittlein president and chief executive officer. Schmittlein will replace President and CEO Donald A. Smith, Jr., who previously announced his plans to retire effective July 1 after 16 years as the company’s leader. Smith will continue to serve on CopperPoint’s board following his retirement. Schmittlein has more than 30 years of experi-ence, most recently with The Travelers Cos. as pres-ident of its cyber business division, and previously as co-president of business insurance. He was pre-viously president and CEO of the small commercial division. He’s also been in commercial divisions of St. Paul Companies and Aetna. CopperPoint is a provider of workers’ compensa-tion insurance.

Woodruff-Sawyer & Co. announced leadership changes in its Portland, Ore., office. Mike Bennison will transition his office leadership role to Brett Bauer and Kathy Prosser, who together will co-lead the office. Bauer will be the Oregon practice leader. Prosser becomes the Northwest benefits practice leader following various senior leadership positions in the employee benefits and healthcare industry. Bennison will continue to work with clients and serve in a senior leadership role. San Francisco, Calif.-based Woodruff-Sawyer has offices throughout California and in Oregon, Washington, Colorado, Hawaii and New England.

Paragon Insurance Holdings LLC in California named Jill Bay-Weber president of its excess and surplus commercial business division. Bay-Weber has been responsible for the develop-ment and underwriting of many specialty programs over the last 20 years. She most recently held the position of senior vice-president in the commercial division at Atlas General Insurance Services. Paragon is a national multi-line specialty program manager.

Bellevue, Wash.-based Ultra Risk Advisors named Karen McDonald underwriting director for its pro-gram providing liability coverage for senior living facilities. McDonald has more than 10 years of underwriting experience in the senior living sector. Ultra Risk Advisors is a commercial insurance pro-gram administrator and specialty wholesale broker.

Marc Schmittlein

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

“We’re very engaged with our communi-ties.” E&S Day continued after Watkins’ talk. A panel and a round table discussion fol-lowed. Hank Haldeman, executive vice presi-dent and director with The Sullivan Group and president of the National Association of Professional Surplus Lines, moderated the panel. The panelists were Timothy Chaix, president of R.E. Chaix & Associates; Lori Hunter, executive vice president and Worldwide Facilities Inc.; Steve Cius, area president of Risk Placement Services Inc.; and Anthony Manzitto, chief operating officer and executive vice president of Topa Insurance Group. The panelists took over where Watkins left off and further explained the E&S industry, how it works, and why it is excit-ing — and sometimes risky Manzitto used as an example the mess in the Porter Ranch community of Los Angeles County, where the impacts are still being felt from the country’s largest ever accidental release of methane, which occurred over several months and sick-ened and displaced thousands of house-holds. “That’s a gigantic loss where there is a going to be a number of E&S carriers involved,” Manzitto said.

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

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

continued from page W4

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‘There’s enough challenging things that come around in our world that gives the E&S sector plenty to do.’

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By Don Jergler

Former California Gov. Arnold Schwarzenegger will headline an event this month at a Southern

California universi-ty to benefit insur-ance students. Schwarzenegger will be joined by Robert Hartwig, an economist and president of the Insurance Information Institute, who could be making his final stop in the region as the face of the property/casualty insurance industry. Insurance Industry Trends 2020 and Beyond on May 9 at Cal State University

Fullerton is being put on by the admin-istration and professors of the Center for Insurance Studies, which is part of the Mihaylo College of Business and Economics at the university.

Schwarzenegger will be fea-tured in a moderated discussion. Hartwig will deliver a keynote speech. Weili Lu, the center’s direc-tor, said the event will bring those in attendance up to speed on future trends, such as what will happen in healthcare, the disrup-tion of the auto insurance indus-try and emerging risks in an aging population. “We thought that it was very important for us as educators to present this opportunity,” she said.

Some 350 people are expected to attend, including more than 100 stu-dents.

Schwarzenegger, Hartwig to Headline May Southern California Symposium

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

Former California Gov. Arnold Schwarzenegger. Photo by Koch / MSC

‘It’s probably the last opportunity for people out here to hear from him.’

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Figures

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

DeclarationsDeficient Roads

“Forty years of underfunding isn’t going to be reversed in 10 years. …

We need to stay on course.” — Oklahoma Department of Transportation’s Terri Angier

comments on a recent report showing that 28 percent of Oklahoma roads are in poor condition and another 42

percent are in mediocre or fair condition.

Bottled Water Provided“While additional testing is com-

pleted, DPS immediately shut off all drinking fountains in the affected schools until further notice and is providing additional bottled water

for students and staff.” — Michelle Zdrodowski, spokeswoman for Detroit Public Schools, on actions taken by the district after elevated

lead or copper levels were found in the water at 19 Detroit schools. The city is testing water in its schools following

the lead-tainted water crisis in nearby Flint.

Robust Equality“This is the most robust racial

equality bill in the nation.”— State Sen. Isadore Hall said a proposal she has made

would build on California’s existing fair pay law by adding race or ethnicity to the requirement that employers jus-tify any pay discrepancies between men and women who

do substantially similar work.

10th Anniversary“Ten years ago, Massachusetts led the country by creating a landmark

healthcare coverage law.”— Massachusetts Gov. Charlie Baker said on April 12 in

marking the 10th anniversary of a healthcare law that lat-er served as a model for the federal Affordable Care Act. State officials say the law led to near-universal coverage.

Deeply Concerned“I am deeply concerned about this filing and the impact it could have on consumers. Georgia law prohib-

its me from stopping or delaying this increase unless an actuarial

examination proves the rate to be legally excessive.”

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

84,720

30

The reward amount being offered by the FBI for infor-mation on the theft of art — including sev-en of 10 Andy Warhol Camp-bell Soup can prints — from a Springfield, Mo., museum.

$704,000

The number of texting- while-driving tickets that were issued in New York in 2015, an 840 percent increase from 9,015 in

2011, according to figures published by New York Gov. Andrew Cuomo’s

office in April.InsuranceJournal.com Poll

33The number of tornadoes that hit Mississippi during the first three

months of 2016. The National Weather Service said higher than normal temperatures and weath-

er instability led to the higher than normal number of twisters.

The amount awarded to a 62-year-old former division chief

for the San Bernardino County Fire Protection District in Cali-fornia who alleged in a lawsuit he was fired due to his age. He

was awarded $544,000 for past lost wages and $160,000 for

future lost wages.

$25,000


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

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

Chipotle by Example: Lessons Learned for the Restaurant Industry

The Centers for Disease Control and Prevention (CDC) estimates that one-in-six Americans gets sick every

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

Did the Chipotle outbreak heighten concerns of foodborne illness in the hospitality and restaurant segment?Amy Vitarelli: Yes, watching what Chipotle has gone through has really alarmed many restaurateurs, especially when you consid-er the fact that their story is a long and var-ied one. There wasn’t necessarily one thing that went wrong for them. There were multiple things, and there are some lessons to be learned, for sure.

always try to look at just basic risk man-agement first. Insurance is there to be the backstop, but what can they do first to pre-vent something from happening? … In the wake of the Chipotle situation, making sure that employees have sick days, paid sick time off, really could have been crucial in this situation. … Chipotle had an employee come in who was sick who otherwise didn’t have paid sick time and came in probably because he or she didn’t want to lose out on wages. It ended up getting a lot of people sick. … I’ve been telling my employers that now is the time to really send the mes-sage home through the managers, to the employees, that if you’re sick, don’t come in. It’s about them getting healthy, about their safety. It’s about other employees’ safety. It’s about their customers’ safety. … Then of course if they actually do have an outbreak, like norovirus, or even supply chain E. coli, etc., there is insurance. Then talk to restaurant clients about what they do and don’t have. Pretty much everyone carries the basic

general liability policy, which will cover the restaurant if they get a cus-tomer sick and the custom-er sues them. They get sick off your food, have doctor’s bills, take off work, etc., and then sue you for those damages and doctor’s bills. The general liability policy is set up to respond to that type of claim. What it’s not set up to respond to is a decrease in sales as a result of that out-

break. Chipotle had huge decreases in their sales. A standard general liability policy does not respond to that. You have to buy a separate policy in order to get that kind of coverage. A business income policy, but specifically to cover a food outbreak.

What kind of policy? Vitarelli: There is a standalone policy that historically has been commonplace for franchises, but not restauranteurs. Many

CLOSER LOOK | Restaurants

Amy W. Vitarelli

continued on Page 14

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AGENCY JOB NUMBER: CBB.CBBGEN.16044.K.011 ORGANIZATION: Geometry_Global CLIENT: Chubb

CREATIVE DIRECTOR: Michael.Fazende ART DIRECTOR: Connor.Flemming COPYWRITER: Kara.Coyle ACCOUNT EXECUTIVE: Lindsay.McVoy PRINT PRODUCER: Lorin.McDonald PROJECT MANAGER: None STUDIO COORDINATOR: Myranda.Jones

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BLEED: 8.75” x 11.375” TRIM: 7.875” x 10.5” LIVE: 7” x 9.75” INKS: Cyan Magenta Yellow Black LINKS: CHUBB GettyImages_154336481_full 2V0R0.psd

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CLOSER LOOK | Restaurants

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

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

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

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

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

continued from page 12

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NATIONAL | Business Moves

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

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

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

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

Higginbotham, Capps Insurance Agency Independent insurance bro-ker Higginbotham, headquar-tered in Fort Worth, and Mount Pleasant, Texas-based Capps Insurance Agency have joined forces. Higginbotham’s partnership

with Capps brings its total number of employees to 750 in 24 offices throughout the state. Both firms have long histories dating to the 1940s. Capps’ clientele is largely comprised of mid-market busi-nesses in Texas, Oklahoma and Arkansas, and it has a concen-tration in water and wastewa-ter utility providers and trans-portation companies. Higginbotham has a diversi-fied mid-market practice across Texas, but also offers a number of specialties. Capps will continue oper-ating under its existing name with the leadership of Managing Directors Steve Capps and Norman Wilson, and Agency Manager Jim Fraley.

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

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

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


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

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

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

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

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

personal and employee bene-fits. Crest operates with four offices in Arizona and now one in California.

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


1 “Hiring and driver turn-over are critical to review as they relate closely to

the management of the busi-ness and loss control stability. Encourage your insured to develop hiring guidelines and to follow them. Hiring and keeping good drivers are the most important steps in main-taining good loss control.” — Erin K. O’Leary, vice president, Shelly, Middlebrooks & O’Leary Inc. Services Inc.

2 “Hiring practices requiring three or more years’ taxi experience

lead to lower insurance rates and higher trust ratings.” — Robert Hill, chief underwriting officer, Blackmoor Agency

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

6 “Fewer new drivers entering the driver pool continues to make

finding good drivers more dif-ficult. A good driver selection, training, and retention plan is critical for fleet operators seek-ing to emphasize safety and minimize insurance cost.” — Aaron V. Nowland, president, W.F. Clayton & Associates

7 “Fast, accurate accident reporting practices lead to lower rate claims

and insurance premiums.” — Robert Hill, chief underwriting officer, Blackmoor Agency

8 “The underwriter needs the following informa-tion for the past four

years when reviewing a fleet account: expiring premium, current valued loss runs, the his-

3 “It is important to keep in mind that public auto operations that cross

a state line are federally regu-lated, much like truckers.” — Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)

4 “The highest seating capacity of all the vehicles owned and/or

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

5 “There is a substantial difference in premium between the two liabil-

ity limits, listed above. A sharp producer can help the insured structure their operations so that they can have one policy for $5 million CSL covering only the limo bus, and a different policy for $1.5 million CSL covering the sedans from the prior example. This can save the insured a sub-

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

9 Regularly reviewing loss run information can have many bene-

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

10The two largest demographics affect-ing the public trans-

portation industry over the next decade will be the baby boomers and millennials. — Jeremy Allgeier, vice president/transportation manager, Bolton & Co. (Louisville, Ky.)

SPOTLIGHT | Commercial Auto

10 Things to Know About Taxis, Limos & Fleets

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NATIONAL | MyNewMarkets

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By Andrew Simpson

Nearly one out of every three (32 percent) opioid prescriptions, which are subsidized by America’s

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

SPECIAL REPORT | Workers’ Compensation

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

“The personal impact that opioid pain-killer abuse takes on individuals, their friends and family is absolutely tragic,” said Kristin Torres Mowat, senior vice president of health plan and strategic data opera-tions at Castlight Health. “This crisis is also having a significant impact on the nation’s employers, both in the form of direct and indirect costs. From higher spending on healthcare, to lost productivity, to the dan-gers associated with employees abusing medications in the workplace — these are aspects of the crisis that are too often over-looked in the current discussion.” In 2011, the American Academy of Pain Medicine published a report by researchers at The Analysis Group in Boston and King Pharmaceuticals in North Carolina that tallied the U.S societal costs of prescription opioid abuse. The study said workplace

costs accounted for $25.6 billion — including lost earnings from premature death ($11.2 billion)

and reduced compensation/lost employment ($7.9

billion). It also found that the costs to the

health-

care system were close to $25 billion, while the costs to the criminal justice system were about $5 billion. The Castlight report is one of a growing list of studies pointing to the high cost of prescription drug and opioid abuse in the workplace, including to the workers’ com-pensation system. A 2012 study in the Journal of Occupational & Environmental Medicine found that when long-acting opioid painkillers are prescribed, workers’ compensation claims are nearly four times more likely to turn into catastrophic claims with costs tallying more than $100,000. About 80 percent of officials at 200 Indiana companies surveyed in 2015 by the National Safety Council reported that they’ve had problems with workers abusing or misusing prescription medica-tions, including opioid painkillers such as Vicodin and OxyContin. According to research into physi-cian dispensing of opioids, the Workers Compensation Research Institute (WCRI) reported that three out of four injured workers with pain are prescribed opioids, with the amount per claim varying by state. A recent report by pharmacy bene-fits manager Express Scripts suggested

the cost of opioids to workers’ com-pensation may be slowing. At $450.90

per user per year, opioids continue to be the costliest class of medications for occupational injuries, Express

Scripts found, but overall spend-ing for opioids decreased nearly 5 percent as utilization decreased

by almost 11 percent. On average, injured workers received 2.91 opioid pre-

scriptions per year — down from 3.33 prescriptions in 2014.


Castlight Findings Additional insights reported by Castlight in its report include:• Baby boomers are nearly four times more likely (7.4 percent) to abuse opioids than Millennials (2 percent).• Patients living in areas with lower incomes are twice as likely to abuse pre-scription painkillers as individuals in high-income areas. Additionally, opioid abusers are more likely to live in the rural South. Overall, 22 out of the top 25 U.S. cit-ies for opioid abuse are primarily rural and located in Southern states.• Among the top 30 largest U.S. cities, eight have higher than average opioid abuse rates. The cities include Las Vegas (7.4 percent); Charlotte, N.C. (6.2 percent); Kansas City, Mo. (5.1 percent); Portland, Ore. (5.0 percent); Tampa, Fla. (5.0 per-cent); Indianapolis (4.9 percent); Orlando, Fla. (4.6 percent); and San Antonio (4.6 percent).• Among the top 30 largest U.S. cities, eight have a higher percentage of opioid

prescriptions abused than the national benchmark of 32 percent. The cities include: Charlotte (44 percent), Las Vegas (41 per-cent), Kansas City (38 per-cent), Portland (38 percent),

Tampa (37 percent), Indianapolis (35 per-cent), Chicago (33 percent), and Dallas (33 percent). The Centers for Disease Control and Prevention (CDC) has called this issue a public health crisis. According to the CDC, nearly 2 million Americans are abusing prescription opioids, resulting in more than 16,000 deaths per year. In 2012, 259 million opioid prescriptions were written, enough for every American adult to a bottle of pills. For its report, Castlight Health, which offers a platform that allows employees to choose and manage their healthcare,

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

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

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



By Andrea Wells

The workers’ compensation market is healthy and robust. It’s both competitive and profitable. That’s good news for business owners, the insurance

industry and injured workers. Beneath the positive news, however, is a layer of anxiety over how long the market will remain healthy. There are numerous developments eating away at stakeholders’ confi-

dence: rising medical costs, the opioid crisis, chronic pain claims, an aging and unhealthy workforce, and move-

ments to allow employers to opt-out of mandatory workers’ compensation. Discussions are underway on how to deal

with some of these underlying concerns. A few developments including drug formularies and predictive

analytics offer some hope. The fact that this is an election year with regulatory jobs in a number of states up for grabs

is an opportunity that could go either way. First, the good news. The industry is expected to post a com-bined ratio of 97.6, which is lower than it’s been in quite some time. That’s a slight

improvement from the workers’ comp calen-dar year combined ratio of 98 in 2014, and well

below the 102 combined ratio in 2013. Mark Walls, vice president, communications and stra-

tegic analysis, at Safety National, sees today’s market as a good deal for good risks in particular.

“If you have a good, solid return-to-work program, a good loss control program and your losses are reflecting that, then you’re going to have people competing for your business,” said Walls, who is the founder of the Work Comp Analysis Group on LinkedIn, a discussion community dedicated to workers’ compensation. “If you’re having a lot of losses, a lot

of frequency, there’s going to be less competition and you’ll probably be seeing some rate hikes. In markets like this,

good programs are rewarded.”


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

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

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

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

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

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

chronic pain cases, 90 percent are pre-scribed opioids, Ives said. While the Centers for Disease Control, the Federal Drug Administration and some states are

trying to provide guidance for the safe use and monitoring of opioids, they are not addressing the root cause, according to Ives. “What needs to be


‘Workers’ compensation right now is as profitable a line as it has been for quite some time.’



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

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

ty, the cost of that overall claim doubles. If somebody has more than one comorbidity, the cost of that overall claim is five times more than it would be as if they didn’t have any,” Ives said.

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

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

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


‘What needs to be addressed is how can we intervene early while the person is still going through the first several weeks of treatment and address the chronic pain issue.’

MAY 2 2016 INSURANCE JOURNAL | NATIONAL | 27

IdeaExchange

Workers’ Compensation: Combinability of Insuredsavoid their historically poor loss records simply by closing down one entity and reopening and operating under another corporate name. Most agents would agree that such a stunt is unethical at best and may be considered fraud. Changing the name of the operation does not change the operational meth-ods of the owner(s). Understanding combinabil-ity rules necessitate a basic understanding of the theory and practice behind the calcu-lation of experience modifica-tion factors. Following is a brief synopsis of experience modifi-cation calculations.

Calculating Experience Modification Factors Workers’ compensation loss costs are calculated and charged based on the aver-age expected losses for that particular business classifica-tion. All insureds in the same hazard class (based on the assigned code) are charged the same basic loss cost (individ-ual carriers apply conversion factors to these loss costs to develop individual rates). However, not all insureds within a par-ticular hazard class operate in the same manner, nor does each experience

By Christopher Boggs

Consolidating separate legal entities’ loss experience to develop

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

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

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

Academy Journal


INSURANCEJOURNAL.COM


Academy Journal

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

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

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

Combinability rules do not merely marry the experience of entities that are currently in operation and related via common majority ownership.

Without the ability to com-bine loss histories, workers’ compensation carriers would potentially be victims of inade-quate premiums. Similarly, average and above average risks would be victim-ized by higher premiums than necessary. The average loss cost balance would be tilted and all employers would likely see an increase in their rates rather than just the ones that “earned” the increase. Rate predictability and possibly rate adequacy may be compromised without com-binability rules.

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

of the increased potential for employee injury.

Combinability Guidelines Common majority interest is the basic rule of combinability. When the same person, group of persons or a corporation owns a majority interest in another entity, the owned entity’s loss experience is com-bined with the owning entity to develop a common (combined) experience modification factor. The combinability concept seems simple enough, however achieving “common majority interest” can be accomplished in one of several relational con-structs:• The corporation owns a majority interest in other entities. When Corporation A (a legal person) owns a majority interest (this term will be defined in upcoming paragraphs) in Corporation B, the loss experience of both cor-porations is pooled to produce

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a single, combined experience modification factor;• The business’s owner (nat-ural person) individually or collectively maintains major-ity interest in more than one entity. If John holds majority interest in Corporation A and he individually gains majority interest in Corporation B, the two entities are combined for experience rating. However, if John has majority interest in only one of the two entities, they are not combinable (i.e. John maintains 75 percent interest in Corporation A but only 25 percent in Corporation B). To continue, assume that John and Joe combine to own majority interest in Corporation A and Corporation B; common majority ownership exists and the experience is combinable;• The corporation combines with some or all of its owners to hold a majority interest in another entity. Corporation A maintains 30 percent interest

in Corporation B; John and Joe (100 percent owners of Corporation A) hold 25 percent of Corporation B. The com-bined ownership of the legal person and the natural persons result in common majority ownership (55 percent) of Corporation B making the two entities combinable; or• The business owns a major-ity interest in another entity which, itself, owns or owned a majority interest in a third entity currently operating or which operated in the past five years. This is not an exhaustive list of relationships that can lead to combinability of loss experience, but it is a repre-sentation of the most common relationships. These guidelines are subject to NCCI and/or individual state rating bureau interpretations. Agents, brokers and carriers should use these descriptions only for informa-tional purposes as final deter-mination rests in these other advisory bodies.

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

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

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

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

Combinability Conclusion Based on and applying the common majority interest rules, the possibility exists for more than one combination of commonly related entities. Deciding which combination of entities applies is based on the following two rules (presented in order of importance):1. Which combination involves the most entities?2. If the above does not apply, the combination is based on the group that produces the largest estimated standard premium. Regardless of how a group is created and combined, no entity’s experience will be used more than once. Finally, although separate entities may be combinable for experience modification calcu-lation, this does not preclude each from having separate workers’ compensation poli-cies. Separate legal entities are entitled (and really required) to be written on separate work-ers’ compensation policies. Combinability rules exist mere-ly to assure that loss histories are not escaped by the creation of multiple legal entities or the closing of one and opening of a new one.

Boggs is vice president of education

for the Academy of Insurance.

Phone: 800-897-9965 ext. 173.

Email: [email protected].


IdeaExchange Tech Talk

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

on large accounts or on a cer-tain industry. Digitalization should not be considered a discretion-ary investment but rather an essential one for an agency’s long-term growth and profit-ability. Hub International has been acquiring agents for many years and is arguably a pio-neer in the process, not just in assigning a value to an agency but of also evaluating its long-term viability and strength. When Hub’s CEO Martin P. Hughes was asked what val-ue he places on an agency’s

degree of digitaliza-tion.

“Not one iota,” he said. “We can teach

those skills, however only if they’re open to it. If they’re

old school and not taking advantage of all the latest

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

We have talked about the many reasons why agents need to

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

agency’s value but because they build name recognition, deepen client relationships and reach prospects the agen-cy would otherwise miss. If an agency makes a conscious decision to not use digital tools at all or to continue to use an outmoded model, it will likely be less attractive to would-be buyers, not because of the lack of digital tools but because of its old-school vision and unwillingness to adapt to the connected marketplace.

Wetzel heads his own insurance mar-

keting firm that specializes in website

design and social media programs

for agents. Website: www.wetzelan-

dassociates.com. Email: twetzel@

wetzelandassociates.com.

The effective use of digital tools matters,

not because they add-to or detract from an agency’s

value, but because they build name

recognition, deepen client relationships

and reach prospects the agency would

otherwise miss.

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Access Point Insurance ServicesContact: Customer ServicePhone: 949-760-0595 ; Fax: 949-760-0591Email: [email protected]: www.accesspointins.net■ Markets Offered: Workers’ Comp – Standard, High Mods, PEO Plans, USL&H■ Phone Inquiries: Accepted■ Minimum Premium: $25,000■ Brokered Business: Accepted■ States Entered in: AZ CA HI NV ■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: All Carriers

Accident Insurance Services, Inc.Contact: Beckie ErvinPhone: 972-991-0413 ; Fax: 972-788-5108Email: [email protected]: www.ais-insurance.net■ Markets Offered: Excess Workers’ Comp, 24 Hour Policy, Workers’ Comp, Occupational Accident■ Phone Inquiries: Accepted■ Min Premium: Up to $25,000,000 per Occurrence■ Brokered Business: Accepted■ States Entered in: TX■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: American Hallmark

Agency ResourcesContact: Florencia RobledoPhone: 866-454-9676 ; Fax: 973-261-9202Email: [email protected]: www.agencyresources.com■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Limits: $1M / $1M / $1M■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted

Align General Insurance Agency, LLCContact: Mike Tudman 818-825-6181Phone: 619-333-2500Email: [email protected]: 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

All Risks, Ltd.Contact: Hollie DegutisPhone: 800-366-5810 ; Fax: 410-828-8179Email: [email protected]: 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

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

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

AMERISAFEContact: Customer ServicePhone: 800-897-9719 ; Fax: 800-450-1091Email: [email protected]: www.amerisafe.com■ Markets Offered: Hazardous Workers’ Comp Carrier■ Phone Inquiries: Accepted■ Minimum Premium: $10,000 ■ Limits: Statutory■ Brokered Business: Not Accepted■ States Entered in: Most StatesFor more info, see our ad on pg 6 (S. Central) or pg 5 (Southeast)

AMIS/Alliance Marketing & Insurance ServicesContact: Karen MetcalfPhone: 800- 843-8550 ; Fax: 800-573-8550Email: [email protected]: www.amisinsurance.com■ Markets Offered: Ins. Adjusters, Security Guards & Alarm Co’s, Workers’ Comp for Private Investigators■ Phone Inquiries: Accepted■ Minimum Premium: $297■ Brokered Business: Accepted■ States Entered in: Most States■ Admitted Status: Admitted■ Carriers Represented: Travelers

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

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: [email protected]. We hope you find the 2016 Workers’ Comp Directory to be a useful tool when searching for markets. To comment on this directory, or any other Insurance Journal resource, please e-mail: [email protected].

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Berkshire Hathaway GUARD Insurance CompaniesPhone: 570- 825-9900 ; Fax: 570- 823-5930Email: [email protected]: 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 CompaniesContact: Customer ServicePhone: 888-495-8949 ; Fax: 415-675-5482Email: [email protected]: www.bhhc.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted

Boston Insurance Brokerage, Inc. For more info, see our ad on page 42 (National)Contact: Keith Driscoll – 617-556-7031Contact: Monica Wojnilo – 617-556-7053 Contact: Cara Treen – 617-556-7045 Contact: John Roderiques – 617-556-7059Website: www.bostonbrokerage.com■ Markets: Guaranteed Cost, Loss Sensitive, Excess Workers’ Comp, Rating Plans ■ Phone Inquiries: Accepted■ Minimum Premium: $1,000 ■ Limits: Standard■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: AIM Mutual, Atlantic Charter, Amerisafe, AmTrust, Axiom, AIG, Crum & Forster, Employers, FirstComp, Guard, Hartford, Munich RE (V3), RTW, Republic Indemnity, Sentry, Tangram (Prosight) & Travelers. From small Main Street risks to large Complex Debit Mod & Loss Sensitive risks, Boston Insurance Brokerage offers coast to coast service, market access and product line expertise to provide solutions to agencies for their Workers’ Compensation clients. The team at Boston Insurance Brokerage has compiled a comprehen-sive group of partners and built processes to manage risks with premiums as low as $1,000 and no maximum premium cap.

BreckComp Program of Blue River UnderwritersWest Coast Contact: Vicky Williams - Phone: 559-326-5775 Email: [email protected] Coast Contact: Michael Mahoney - Cell: 561-254-9852 Email: [email protected] Website: www.blueriveruw.com■ Markets Offered: Workers’ Comp - close to 400 eligible class codes ■ Phone Inquiries: Accepted■ Limits: Statutory■ Brokered Business: Not Accepted■ Program Available in: AL AR AZ CA CO GA ID IN IA KS KY LA MI MO MS NC NE NV NM NC OR SC TN TX UT VA WI■ Admitted Status: Admitted

AmTrust North AmericaContact: Customer ServicePhone: 877-528-7878 ; Fax: 800-487-9654 Email: [email protected]: 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 NationwideSee Website for Locations, HQ - Charlotte, NC Contact: Marketing DepartmentPhone: 704-973-3489 ; Fax: 704-943-9000Email: [email protected]: www.amwins.com■ Markets Offered: Excess Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: None■ Limits: Various■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: All Excess WC’ Carriers

AmWINS Program UnderwritersContact: Matt McCuePhone: 717-214-7622 Email: [email protected] Website: www.amwins.com/apu■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Limits: Statutory■ Brokered Business: Accepted■ States Entered in: Most States■ Admitted Status: Admitted■ Carriers Represented: Various AM Best A- Rated or Higher

Apex Insurance ServicesContact: Robert HughesPhone: 210-340-8985 ; Fax: 210-340-8986Email: [email protected]: www.apexinsurance.com■ Markets Offered: Excess WC, Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,000 ■ Limits: Statutory and high excess■ Brokered Business: Accepted■ States Entered in: All States ■ Admitted Status: Admitted■ Carriers: Various National & Regional Carriers

Appalachian Underwriters, Inc.Contact: Robert PurdyPhone: 888-376-9633 ; Fax: 888-871-7644Email: [email protected]: www.appund.com■ Markets Offered: USL&H, Workers’ Comp, New Ventures/No Prior Eligible■ Phone Inquiries: Accepted■ On-line portal accessible■ Minimum Premium: $750■ Limits: Any Size■ Brokered Business: Accepted■ States Entered in: All States except Monopolistic■ Admitted Status: Admitted■ Carriers Represented: Multiple A.M. Best ‘A’ Rated Carriers. Exclusive Programs for Healthcare, Temp Staffing, Trucking and Construction Risks.

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

Arrowhead General Insurance Agency, Inc.Contact: Marketing Dept.Phone: 800-669-1889 ; Fax: 619-881-8695Email: [email protected]: www.ArrowheadGrp.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Varies by Carrier■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: Multiple “A” rated carriers For more info, see our ad on page 2 (National)

Artex Risk Solutions, Inc.Contact: Christine MikelPhone: 630-438-1560Email: [email protected]: 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 ServicesContact: Marketing Dept.Phone: 855-309-3310 ; Fax: 619-814-8914Email: [email protected]: atlas.us.com■ Markets Offered: Workers’ Comp, BOP and Commercial Package Policies, Builders’ Risk, Contractors’ and Non-Contractors’ GL, EIFS, Garage and Dealers, Difference in Conditions, Habitational, Inland Marine, Professional Liability, Property, Umbrella and Excess■ Phone Inquiries: Accepted■ Brokered Business: Accepted■ States Entered in: Most States■ Admitted Status: Admitted■ Carriers Represented: Multiple “A” rated carriers For more info, see our ad on page 14 (National)

2016 Workers’ Compensation Directory


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Burns & WilcoxContact: Justin DormanPhone: 248-932-9000Email: [email protected]: 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 Formoreinfo,seeouradonpage9(National)

CareProvidersInsuranceServices,LLCContact: Priscilla ArcherPhone: 800-761-7072 Ext. 1313 ; Fax: 800-224-7145Email: [email protected]: 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

CharityFirstInsuranceServices,Inc.Contact: Riley Binford Phone: 800-352-2761 ; Fax: 415-536-4033Email: [email protected]: www.charityfirst.com■Markets Offered: Workers’ Comp, Nonprofits and Social service agencies, Religious organizations ■ Phone Inquiries: Accepted■ Minimum Premium: Varies■ Brokered Business: Not Accepted■ States Entered in: All States ■ Admitted Status: Admitted in most states■ Carriers Represented: Travelers, Great American, Berkshire Hathaway, USLI, ACE/Chubb, Applied Underwriters and ICW

CIDInsurancePrograms,Inc.Contact: Caesar SerranoPhone: 800-922-7283 ; Fax: 619-593-2008Email: [email protected]: www.cidinsuranceprograms.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Limits: $1M■ Brokered Business: Accepted■ States Entered in: AZ CA CO ID MD NE NM NV OR PA TN TX UT■ Admitted Status: Admitted■ Carriers Represented: Over 25 insurance companies

CombinedResourcesContact: Richard RossiPhone: 631-758-6780 ; Fax: 631-758-6781Email: [email protected]: 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 BrokersContact: Carl ThompsonPhone: 205-776-2625 ; Fax: 205-776-1619Email: [email protected]: 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.

CommunityAssociationInsuranceSolutions,LLCContact: Gary J. Deck, VP Sales and DistributionPhone: 888-833-4158 ; Fax: 888-833-4159Email: [email protected]: www.mgalive.com■Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted■ Minimum Premium: $350 – Depending on the state■ Limits: Statutory■ Brokered Business: Not Accepted■ States Entered in: All States except ND,WY,OH,WA■ Admitted Status: Admitted■ Carriers Represented: PMA Companies

CompSolutionsNetwork,Inc.Contact: Dianne FavroPhone: 713-690-3500 Ext. 41 ; Fax: 713-690-8484Email: [email protected]: 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 (Non-Subscribers): ACE American, American Southern, American Hallmark, Commercial Alliance, Great American, Independent American, Markel Essex, North American Capacity, North American Specialty, OneBeacon, Pam American, Service Lloyds, Western Heritage

CompWestInsuranceCompanyContact: Kristi HoustonPhone: 714-641-9570Email: [email protected]: 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


BreckenridgeInsuranceServicesShawn Hall - Cell: 440-773-7983 - [email protected] Krutek - Cell: 636-734-0354 - [email protected] Harmon - Cell: 417-861-1415 - [email protected]: www.breckis.com■ Markets Offered: Workers’ Comp, MGU, Wholesale Brokerage ■ Phone Inquiries: Accepted■ Minimum Premium: $15,000■ Limits: Statutory■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: AIG, Amerisafe, AmTrust, Applied Underwriters, BerkleyNet, Berkshire Hathaway, Guard, Hartford, Starr Insurance, Torus National, V3 Insurance Partners and more.

BrownyardGroupContact: Jennifer BrownyardPhone: 800-645-5820 ; Fax: 631-666-5723Email: [email protected]: www.brownyard.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $10,000■ Brokered Business: Accepted■ States Entered in: Most States■ Admitted Status: Admitted

Brownyard Programs, Ltd.Contact: Blair Brownyard Email: [email protected]: 631-581-9300 ; Fax: 631-581-9385Submissions: [email protected]: www.brownyardprograms.com■Markets Offered: Workers’ Comp for Security Guards, Investigators, Alarm Companies■ Phone Inquiries: Accepted■ Minimum Premium: $5,000■ Limits: $1M / $1M / $1M■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: Crum & Forster. Rated A (Excellent) by A.M. Best Company Specialty Insurance - GL, Professional, Umbrella, Auto & WC Programs for the Private Security Industry including security guard, private investigation, background screening, alarm, and other electronic security companies.

Builders&Tradesmen’sIns.Services,Inc.Contact: Jeremiah AzevedoPhone: 916-772-9200 ; Fax: 916-772-9292Email: [email protected]: 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


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Empire Underwriters, LLCContact: Underwriting Toll Free: 800-758-8113Phone: 813-448-9300 ; Fax: 813-448-9310Email: [email protected]: www.empireunderwriters.com■ Markets Offered: Standalone Workers’ Comp, Staffing Workers’ Comp, Specialty Risk, Alternative Risk, PEO, Contractors GL, Excess, Pollution, Environmental, Liquor Liability■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Brokered Business: Not Accepted■ States Entered in: Most States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: ACE/Chubb, AIG, Century Surety, Employers, Guard, Benchmark, Berkshire Hathaway, Endurance, ICW, Lloyds of London, RLI, RTW, Torus, and many others..

Empire Underwriters is National MGA, Insurance Wholesaler, and Excess & Surplus Lines facility. Our organization is dedicated to the success of agents and brokers nationwide and featuring Online Indications and Quotes for several products.

Employer’s Comp Associates, Inc.Contact: Aaron JohnsonPhone: 972-386-0150 ; Fax: 972-386-6350Email: [email protected]: 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 ServicePhone: 800-700-9113 ; Fax: 888-527-3422Email: [email protected]: www.employers.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $750■ Limits: None■ Brokered Business: Accepted■ States Entered in: Most States

Employers Compensation Insurance Company (ECIC)Contact: Customer ServicePhone: 800-700-9113 ; Fax: 888-527-3422Email: [email protected]: www.employers.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $750■ Limits: None■ Brokered Business: Accepted■ States Entered in: AZ CA CO FL GA ID IL MN MT MI NJ NV NY OR PA TX UT

Continental Brokers, Inc.Contact: Collier SimpsonPhone: 866-386-4136 ; Fax: 601-898-4793Email: [email protected]: www.continentalbrokers.biz■ Markets Offered: Health Insurance, Managed Care, HMO, Short Term Medical, Workers’ Comp ■ Phone Inquiries: Accepted■ Minimum Premium: None■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: CNA, Hartford, Assurant, BCBS (some states) United HealthCare, Colonial

Continental Risk Insurance ServicesContact: Jeana RamosPhone: 866-699-2747 ; Fax: 209-365-6040Email: [email protected]: www.continentalriskins.com■ Markets Offered: USL&H, Workers’ Comp ■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Brokered Business: Accepted■ States Entered in: AK AR AZ CA CO FL GA ID NC NV NY OR TX UT WA■ Admitted Status: Admitted & Non-admitted

Continental Underwriters, Inc.Contact: C. Preston Herrington, IIIPhone: 804-643-7800 ; Fax: 804-643-5800Email: [email protected]: www.contund.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $10,000■ Limits: 500/500/500■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: Multiple

Costanza Insurance Agency, Inc.Contact: Brian CostanzaPhone: 800-346-0942 ; Fax: 972-991-2139Email: [email protected] 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 & CompanyContact: Don R. Jensen & CompanyPhone: 630-734-3240 ; Fax: 630-734-3250Email: [email protected]: 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

Employers Insurance Company of Nevada (EICN)Contact: Customer ServicePhone: 800-700-9113 ; Fax: 888-527-3422Email: [email protected]: 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 ServicePhone: 800-700-9113 ; Fax: 888-527-3422Email: [email protected]: www.employers.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $750■ Limits: None■ Brokered Business: Accepted■ States Entered in: Most States

FastcompContact: John ValkoPhone: 800-476-2948 ; Fax: 330-319-7308Email: [email protected]: 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 ServicePhone: 800-346-4825 ; Fax: 321-214-0220Email: [email protected]: www.ffvamutual.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Not Accepted■ Minimum Premium: Varies by Industry■ Limits: Statutory■ Brokered Business: Not Accepted■ States Entered in: AL FL GA IN KY MS NC SC TN VA■ Admitted Status: Admitted

Friedlander Group, Inc.Contact: Cosmo PreaitoPhone: 914-694-6000 Ext. 203 ; Fax: 914-694-6004Email: [email protected]: www.friedlandergroup.com■ Markets Offered: Workers’ Comp & Multiple Classes■ Phone Inquiries: Accepted■ Minimum Premium: $3,500 / $2,500 Restaurants■ Limits: Statutory■ Brokered Business: Accepted■ States Entered in: NY■ Admitted Status: Admitted ■ Alliances With: New York State Insurance Fund FUBA Workers’ Comp Contact: Alicia HamiltonPhone: 888-262-4483 ; Fax: 888-871-7474Email: [email protected]: www.fubaworkerscomp.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Limits: Statutory■ Brokered Business: Accepted provisionally■ States Entered in: FL■ Admitted Status: Admitted in FL■ Carriers: Florida Citrus, Business & Industries FundFor more info, see our ad on pg 10 (Southeast)




Insential, Inc.Contact: Amanda Ballard Phone: 888-571-6160 ; Fax: 708-731-4040Email: [email protected]: 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 KovalPhone: 888-773-7475 ; Fax: 413-781-0050Email: [email protected]: 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 CompaniesContact: Kenneth Kukral, CICPhone: 800-937-3497 Ext. 2079 ; Fax: 216-342-7442Email: [email protected]: www.intlxs.com■ Markets Offered: Excess Workers’ Comp, PEOs, Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Varies by class, as low as $250■ Limits: Statutory + increased limits & excess limits■ Brokered Business: Accepted■ States Entered in: All States except Monopolistic (monoline OH stop gap available)■ Admitted Status: Admitted■ Carriers Represented: Various

IPA Risk Management, LLCContact: Greg or ChasePhone: 201-797-1084 Ext. 201 ; Fax: 201-797-1076Email: [email protected]: 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 BrazierPhone: 800-243-1811 Ext. 8207 ; Fax: 631-913-6035Email: [email protected]: www.iwains.com■ Markets Offered: All Lines including Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Brokered Business: Accepted■ States Entered in: Most States ■ Admitted Status: Admitted■ Carriers Represented: Various

Izzo Insurance Services, Inc.Contact: Mike JonesPhone: 800-800-1704 ; Fax: 630-582-2803Email: [email protected]: www.IzzoInsurance.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $5,000■ Limits: Varies■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: AIG, AmTrust Companies, BerkleyNet, CNA, Employers Ins. Group, Hartford, ICW Group, Hartford Ins. Group, ICW Group, Meadowbrook, State Auto, Travelers Ins. Co., Zenith Insurance

Jimcor AgenciesContact: Garrett GioePhone: 201-573-8200 Ext. 1202 ; Fax: 201-573-8820Email: [email protected]: www.jimcor.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Limits: Any Applicable per State■ Brokered Business: Accepted■ States Entered in: All Nonmonopolistic States■ Admitted Status: Admitted■ Carriers Represented: IG, AmTrust, Berkshire Hathaway, Travelers, Crum & Forster, ACE

Keller & Co, Inc.Contact: John BartonPhone: 716-874-1644 ; Fax: 716-874-4920Email: [email protected]: www.kellerandco.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Varies■ Brokered Business: Accepted■ States Entered in: NJ NY PA■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: Several!!

King Insurance Support SystemsContact: Laura Fondarella Phone: 800-488-4096 ; Fax: 949-488-2259Email: [email protected]: 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, LLCContact: Mark ZeanahPhone: 530-926-6030 ; Fax: 530-926-6040Email: [email protected]: 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.

Gorst & Compass InsuranceContact: Paul LauferPhone: 818-507-1980 ; Fax: 818-545-3818Email: [email protected]: 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 AgencyContact: Drew Viersen or Dan CarterPhone: 800-869-2022 ; Fax: 888-767-0826Email: [email protected]: 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, LLCContact: Rick YuPhone: 516-488-2800 Ext. 4219 ; Fax: 516-488-2167Email: [email protected]: www.hamondgroup.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $15,000■ Limits: Unlimited by state statute■ Brokered Business: Accepted■ States Entered in: NY■ Admitted Status: Admitted ■ Carriers Represented: NYSIF

IAAC, Inc. (Membership Services Division of IIABNY)Contact: Customer ServicePhone: 800-962-7950 ; Fax: 888-432-0510Email: [email protected]: 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 CompaniesContact: Gary WhitfieldPhone: 800-877-1111Email: [email protected]: www.icwgroup.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Not Accepted■ Minimum Premium: $2,500■ Limits: $1M■ Brokered Business: Accepted■ States Entered in: CA FL GA IL IN NC NJ NV PA SC TX WI■ Admitted Status: Admitted■ Alliances With: MEDEX




Libertate Insurance, LLC Contact: Sharlie ReynoldsPhone: 407-613-5475 ; Fax: 407-613-5477Email: [email protected]: 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 ManagersContact: Karen TischlerPhone: 727-578-2800 ; Fax: 727-578-9977Email: [email protected]: 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

LowRateWorkCompContact: Paul FarhoodPhone: 850-625-5190 ; Fax: 888-625-2628Email: [email protected]: www.LowRateWorkComp.com■ Markets Offered: Health Insurance, Payroll, USL&H, Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $4,000■ Brokered Business: Accepted■ States Entered in: All States except WA■ Alliances With: 4 PEOs – Writing All classes depending on state.

MarketScoutChris Kerr - 972-934-4206 ; Dan Fouts - 972-934-4231Jon Maloney - 770-262-0383 ; John McGee -570-554-4506Don Osuna - 415-610-2838 ; Amber Hunter - 972-934-4209Email: [email protected]■ 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 ServicesContact: Mario GomezPhone: 818-223-0011 ; Fax: 818-223-0012Email: [email protected]: www.maverickinsure.com■ Markets: Workers Comp, Large Deductible & Retro Programs, Excess WC, USL&H, PEO & Aviation■ Phone Inquiries: Accepted■ Minimum Premium: $2,500■ Limits: $1mil/$1mil/1mil■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers: AIG/Granite State/Commerce & Industry/ National Union- QBE, ICW, Zenith, Berkshire/ Cypress, AmTrust/Security National/Wesco/ Technology Ins/Sequoia, Applied Underwriters/California Ins Co, Companion, Everest, Starr Indemnity; Atlas/StarStone, BerkleyNet/Midwest Ins., CNA, Zurich, Safety National, Guarantee Ins Co, Republic Underwriters, Old Republic, Various PEO markets

Maxim Insurance GroupContact: Scott CardePhone: 813-689-5105 ; Fax: 813-354-2336Email: [email protected]: 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 HinePhone: 210-293-6240 ; Fax: 210-293-6318Email: [email protected]: www.mhi-mga.com■ Markets Offered: Occ. Acc., Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Limits: Statutory■ Brokered Business: Accepted■ States Entered in: TX■ Admitted Status: Admitted & Non-admitted■ Carriers: Travelers, AIG, First Comp, Redpoint, Zenith

McLeckie Insurance Group Contact: Bill McLeckiePhone: 903-897-9090 ; Fax: 760-462-1696Email: [email protected]: www.mcleckie.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Brokered Business: Accepted■ States Entered in: AR FL LA OK TN TX■ Admitted Status: Admitted■ Carriers Represented: Travelers and various others.

Meadowbrook Insurance GroupContact: Archie McIntyre - 800-482-2726Email: [email protected]: www.meadowbrook.com■ Markets Offered: Excess Workers’ Compensation, Specialty/Niche Programs, Workers’ Compensation ■ Phone Inquiries: Accepted■ Minimum Premium: Varies by Program■ Limits: Varies by Program■ Brokered Business: Yes; Varies by Program■ States Entered in: All States■ Admitted Status: Admitted■ Carriers: Star Ins. Co, Williamsburg National Ins. Co, Ameritrust Ins. Corp, ProCentury Ins. Co.

Method Insurance ServicesContact: Rob HynekPhone: 888-981-1702Email: [email protected]: www.methodinsurance.com■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted■ Minimum Premium: $1,000 ■ Limits: $1,000,000■ Brokered Business: Accepted■ States Entered in: Agency Appointments in AZ CA CO IA IL KS MO NE NV OK■ Admitted Status: Admitted & Non-admitted ■ Carriers Represented: Accident Insurance Company, AIG, AmTrust, Amerisafe, Berkley Net, National Liability & Fire, Patriot, QBE, & RTW

Midlands Management Corp.Oklahoma City, OK & Dallas, TX Phone: 800-800-4007 ; Fax: 405-840-5432Email: [email protected]: www.midlandsmgt.com■ Markets Offered: Excess Workers’ Comp, Primary Workers’ Comp, Texas Non-Subscriber, Public Entity, Occupational Accident, Property & Casualty Lines■ Phone Inquiries: Accepted■ Minimum Premium: Varies■ Brokered Business: Accepted■ States Entered in: Most States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: AM Best “A” Rated Carriers For more info, see our ad on pg 8 (S. Central)

Midwest Employers Casualty CompanyContact: Renée LuncefordPhone: 636-449-7022 ; Fax: 636-449-7199Email: [email protected]: www.mwecc.com■ Markets Offered: Workers’ Compensation: Excess Workers’ Compensation, Assumed Reinsurance, Group Captives, Large Deductible ■ Phone Inquiries: Accepted■ Minimum Premium: Varies by risk■ Limits: Up to Statutory■ Brokered Business: Accepted■ States Entered in: All States, District of Columbia■ Admitted Status: Admitted

Midwestern Insurance Alliance, LLCContact: Theresa BaileyPhone: 619-450-1739 ; Fax: 502-426-7067Email: [email protected]: 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

NBISContact: Brenda WallacePhone: 770-257-1129 ; Fax: 770-257-1500Email: [email protected]: 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




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

Risk Innovations, LLCContact: Jeff Sandy Phone: 816-251-1608 ; Fax: 866-262-5802Email: [email protected]: 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 unparal-leled underwriting expertise and carrier exclusive partner-ships with 20 WC markets available for most risks. They specialize in hard to place accounts with competitive pricing.

Risk Placement Services, Inc.Contact: Patrick EdwardsPhone: 312-803-6334 ; Fax: 312-803-6309Email: [email protected]: www.rpsins.com■ Markets Offered: Excess WC, Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: ACE, AIG, CNA, Hartford, Safeco & Zurich

RoamNet Insurance Marketing ProgramsContact: Patty LawsonPhone: 877-272-0333 ; Fax: 909-987-2245Email: [email protected]: www.roamnetins.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,500■ Limits: High limits with small premiums■ Retail Agents/Brokers: Accepted■ States Entered: Most States■ Admitted Status: Admitted■ Carriers Represented: Employers, Hanover, Travelers & Zenith

Networked Insurance AgentsContact: Tam DuongPhone: 800-682-8476 ; Fax: 888-843-2535Email: [email protected]■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted ■ Minimum Premium: $250■ Limits: $1M / $1M / $1M■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: AmTrust, Applied Underwriters, ICW, The Hartford, Travelers, Preferred Employers, Guard, Everest, CNA, First Comp, Employers, Fireman’s Fund, Liberty Mutual, ACE, AIG, Chubb, Zenith

Norman-Spencer Agency, Inc.Contact: Corky BreedenPhone: 937-432-1631 ; Fax: 937-432-1635Email: [email protected]: www.norman-spencer.com■ Markets Offered: Excess Workers’ Comp, USL&H, Workers’ Comp, Dividend Work Comp■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Limits: $1M■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: Zenith, Amerisafe, AmTrust

Number One Insurance Agency, Inc. Contact: Barbara Lobdell Phone: 508-634-7362 ; Fax: 508-634-2930Email: [email protected]: 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 SolutionsContact: Keith SteversonPhone: 866-997-0711 ; Fax: 888-611-9598Email: [email protected]: www.Omega4agents.com■ Markets Offered: USL&H, Workers’ Comp, Hard- to-Place Workers’ Comp, GL, Commercial Auto, Small BOPs■ BOP available in all states including Florida.■ Exclusive Domestic Employees Workers Comp program■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Limits: WC standard limits or increased to $1M ■ Brokered Business: Accepted■ States Entered in: Most States ■ Admitted Status: Admitted■ Carriers Represented: 17 WC carriers/4 PEOs – Writing most classes depending on state.

Oryx Insurance Brokerage, Inc.Contact: Tom PasqualePhone: 607-724-0173 ; Fax: 607-724-7266Email: [email protected]: 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 MarketingContact: Barry ColburnPhone: 800-222-5582 ; Fax: 714-228-7899Email: [email protected]: www.pacificexcess.com■ Markets Offered: Workers’ Comp, All Property & Casualty Risks ■ Phone Inquiries: Accepted ■ Minimum Premium: As Low As $500 ■ Limits: $1M■ Brokered Business: Accepted ■ States Entered in: CA AZ NV ■ Admitted Status: Admitted■ Carriers Represented: AmTrust & The Zenith 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: 954-252-3758Email: [email protected]: www.patriotunderwriters.com■ Markets Offered: Workers’ Comp, Property & Casualty, Package, Business Auto■ Phone Inquiries: Accepted ■ Minimum Premium: $2,500 ■ Limits: Statutory■ Brokered Business: Accepted ■ States Entered in: All States■ Admitted Status: Admitted

PMC Insurance GroupContact: David MalloyPhone: 781-449-7744 ; Fax: 781-449-7889 Email: [email protected]: 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 ProgramsContact: Carmen SuarezPhone: 888-548-2465 ; Fax: 732-946-0547Email: [email protected]: www.ppp-quotes.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $750■ Limits: 100/500/100 ; 500/500/500 ; 1,000/1,000/1,000■ Brokered Business: Accepted■ States Entered in: All States except Monopolistic■ Admitted Status: Admitted■ Carriers Represented: A- X rating by AM Best Specializing in the commercial real estate marketplace. We offer Umbrellas, EIL & WC for Condos, HOA’S, PUD’S, Apartments and Timeshare Associations. We also offer umbrellas and B&M policies for commercial lessors risk only (LRO).




Russell Bond & Co., Inc.Contact: Derek BucciferroPhone: 800-333-7226 ; Fax: 800-677-6779Email: [email protected]: 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 GroupContact: Randy WhitePhone: 813-220-9220 ; Fax: 305-436-3786Email: [email protected]: 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 CorporationContact: Karla AntrobusPhone: 888-995-5300 ; Fax: 314-995-3843Email: [email protected]: www.safetynational.com■ Markets Offered: Excess WC, Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Varies by state■ Limits: Varies by state■ Brokered Business: Accepted■ States Entered in: All States & Canada■ Admitted Status: Admitted

SFA-5Star Specialty ProgramsContact: Dee Dee BloomPhone: 702-740-8470 ; Fax: 702-740-8472Email: [email protected]: 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

Sole Proprietor SolutionsContact: Jade SullivanPhone: 843-822-5180 ; Fax: 843-822-5180Email: [email protected]: www.soleproprietorsolutions.com■ Markets: Minimum premium Workers’ Comp & Accident Coverage in a packaged program that is less expensive than the assigned risk program.■ Phone Inquiries: Accepted■ Minimum Premium: $750■ Limits: Statutory■ Brokered Business: Accepted■ States Entered in: Most States■ Admitted Status: Admitted■ Carriers Represented: Combined Insurance Company and Guarantee Insurance Company

Specialized InsuranceContact: Richard RossiPhone: 631-758-6780 ; Fax: 631-758-6781Email: [email protected]: 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 TuckerPhone: 800-844-0536 ; Fax: 601-853-6141Email: [email protected]: www.sportsfitness.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Varies■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: Safeco, Hartford State Compensation Insurance Fund of CaliforniaContact: Customer ServicePhone: 888-STATEFUND (888-782-8338)Email: [email protected]: www.statefundca.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Depends on class■ Brokered Business: Accepted■ States Entered in: CA■ Alliances With: State Fund Medical Provider Network For more info, check out our ad on page 7 (West)

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

SWBC Contact: Lisa PintoPhone: 210-525-1241 ; Fax: 210-321-7530Email: [email protected]: www.swbc.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $25,000■ Limits: 100/100/500 500/500/500 1,000,000/1,000,000■ Brokered Business: Not Accepted■ States Entered in: All States ■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: All Major Carriers

Target Managers Insurance Services, Inc.Contact: Rhea PimentelPhone: 702-588-5300 ; Fax: 702-588-5310Email: [email protected]: 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 AgencyContact: Bart KochPhone: 888-999-8242 ; Fax: 512-342-2803Email: [email protected]: www.taga1.com■ Markets Offered: USL&H, Workers’ Comp, Non-Subscription (NM, OK, TX only)■ Phone Inquiries: Accepted■ Minimum Premium: $250■ Limits: $1M / $1M / $1M■ Brokered Business: Not Accepted■ States Entered in: AR LA NM OK TX■ Admitted Status: Admitted■ Carriers: Accident Fund, ACE USA, AIG, Amerisafe, AmTrust, Commericial Alliances, Employers, Essex Ins Co, First Comp, Great American, Hallmark Specialty, Hanover, ICW Group For more info, see our ad on page 1 (S. Central)

Texas Mutual Insurance CompanyContact: Customer ServicePhone: 800-859-5995 ; Fax: 512-224-8585Email: [email protected]: www.texasmutual.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: Competitive premiums■ Brokered Business: Accepted■ States Entered in: TXFor more info, see our ad on pg 3 & 5 (S. Central)

Texas Oil & Gas Association Workers’ Comp Safety GroupContact: Jim Sierra Phone: 512-478-6631 ; Fax: 512-472-3859Email: [email protected]: www.txoga.org■ Markets Offered: Oil & Gas Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $0■ Brokered Business: Accepted■ States Entered in: TX ■ Admitted Status: Admitted■ Carriers Represented: Texas Mutual Ins. Company




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

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

The MEMIC Group See our ad on page 9 (Southeast) or page 3 (East)Contact: Marcia HarttPhone: 207-791-3370Email: [email protected]: www.memic.com/thechoice■ Markets Offered: Workers’ Comp ■ Phone Inquiries: Accepted■ Minimum Premium: Varies■ Brokered Business: Not Accepted■ States Entered in: All Non-monopolistic States ■ Admitted Status: Admitted

We’re specialists in workers’ compensation. Licensed across the country and rated A (Excellent) by A.M. Best, MEMIC understands the workers’ comp insurance business. From our workplace safety expertise to our refined knowledge of best practices for managing claims, when it’s time to choose a workers’ compensation insurer, the choice is MEMIC.

Total Program ManagementContact: Matt BlakePhone: 631-319-6210 ; Fax: 631-319-6208Email: [email protected]: 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

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

World Wide Specialty ProgramsContact: Dorothy Taylor ; Robert ThompsonPhone: 800-245-9653 or 631-390-0900 Fax: 631-390-0922Email: [email protected] ; [email protected]: www.wwspi.com■ Markets Offered: Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $50,000■ Limits: State Mandated■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: Zurich

World Wide Specialty Programs has lead the market with the most comprehensive program for the staffing industry for over 50 years. Our partnership & understanding of how the staffing industry works allows us to be the premier source for all Staffing insurance lines including Staffing Workers’ Comp.

Wrap Up Insurance SolutionsContact: Brian BillhartzPhone: 636-489-0185 ; Fax: 636-536-7473Email: [email protected]: www.wrapupsolutions.com■ Markets Offered: Excess Workers’ Comp, Workers’ Comp, Wrap Ups■ Phone Inquiries: Accepted■ Minimum Premium: N/A■ Limits: $100MM■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: Zurich, AIG, ACE, Liberty Mutual, ARCH, Old Republic, Travelers


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

U.S. Risk Insurance Group, Inc.Contact: Ralph TribendisPhone: 804-441-6126Email: [email protected]: 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

Unisource Program AdministratorsContact: Lana Potts-BuriPhone: 941-308-1918Email: [email protected]: www.UnisourcePA.com■ Markets Offered: Workers’ Comp and P & C Markets■ Phone Inquiries: Accepted■ Minimum Premium: $1,000■ Limits: As Requested■ Brokered Business: Not Accepted■ States Entered in: All States■ Admitted Status: Admitted■ Carriers Represented: AIG, AmTrust, Amerisafe, CastlePoint, Chartis, Employers, FirstComp, FFVA, LION, Normandy Harbor, eQBE, and V3 Insurance Partners

USG Insurance Services, Inc. Contact: Jennifer KesselPhone: 724-754-9052 ; Fax: 724-265-5751Email: [email protected]: www.usgins.com■ Markets Offered: Standard, Hazardous & Excess Workers’ Comp, USL&H, Staffing Workers’ Comp■ Phone Inquiries: Accepted■ Minimum Premium: $500■ Limits: Varies■ Brokered Business: Accepted■ States Entered in: All States■ Admitted Status: Admitted & Non-admitted■ Carriers Represented: 20+ carriers

Work First Casualty CompanyContact: Bruce Winterrowd; VP of Underwriting/MktgPhone: 630-416-7954Email: [email protected]: 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


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Since 1926, the AAMGA has empowered a diverse network of underwriting insurance specialists and improved access to worldwide insurance markets.

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www.aamga.org

Since 1926, the AAMGA has empowered a diverse network of underwriting insurance specialists and improved access to worldwide insurance markets.

Networking, Education & Advocacy for the Global Specialty Distribution Marketplace

www.aamga.org

9090

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IdeaExchange The Competitive Advantage

By Chris Burand

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

The good news is that for the fore-seeable future, with certain excep-tions, you will not have to tell your

clients their premiums are increasing 10 percent or more. Property/casualty carriers collectively, not necessarily individually, have more money than they know how to spend. Here are some facts (per A.M. Best):

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

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

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

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

will realize this is the best combination for them to succeed. So much of the competi-tion will not wake up in time to proactively address this paradigm change, which means agencies with strong sales cultures will be able to write more business than ever. The same agents that keep waiting for

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

Burand is the founder and owner of Burand & Asso-

ciates LLC based in Pueblo, Colo. Phone: 719-485-

3868. E-mail: [email protected].


IdeaExchange Marketing

By Johnna McCooey

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

A Paradigm Shift With the advent of the Affordable Care Act requiring everyone in the U.S. to be covered by health insurance, insurance agents and brokers are juggling their mar-keting and advertising messages to reso-nate with several different target markets. Additionally, societal changes shift the demographics of insurance buyers:

The insurance industry is spending big on local marketing, but the results individual agencies experi-

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

The Online Challenge for Insurance Providers With more than 1.1 million Internet

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

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

Marketing


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

AAMGA www.aamga.org 41Abram Interstate www.abraminterstate.com W8Academy of Insurance www.ijacademy.com 47Accident Fund www.accidentfund.com SE9Amerisafe www.amerisafe.com SC6 SE5Anderson & Murison www.andersonmurison.com 43Applied Underwriters www.auw.com 4, 5, 48Arrowhead General Insurance Agency www.arrowheadgrp.com 2Atlas Financial Holdings www.atlas-fin.com 17Atlas General LLC www.ATLAS.US.com 14Boston Insurance Brokerage www.bostonbrokerage.com 42Brecht & Associates www.brechtassoc.com SC7Burns & Wilcox Ltd. www.burnsandwilcox.com 9California Earthquake Authority mvp.earthquakeauthority.com 3Century National www.cnico.com W11Chubb www.chubb.com 13FAIA www.faia.com SE3FUBA Workers’ Comp www.fubaworkerscomp.com SE10Insurance Technologies Corp. www.getitc.com 31InsurBanc www.insurbanc.com 23Louisiana Commerce & Trade Assoc. www.lctacomp.com SC9M.J. Hall & Company www.mjhallandcompany.com W10MEMIC www.memic.com SE9, E3Midlands Management Corporation www.midlandsmgmt.com SC8Monarch E&S Insurance Services www.monarchexcess.com W3MUSIC www.music-ins.com 21Pacific Gateway Insurance Services www.pgiainsurance.com W9PersonalUmbrella.Com www.personalumbrella.com 7Philadelphia Insurance Companies www.phly.com 3, W12Regions Bank www.regions.com 15ReSource Pro www.resourcepro.com 19Rockford Mutual Insurance Company www.rockfordmutual.com M5Siracusa Staffing & Leasing www.ssandlnow.com SE4State Compensation Insurance Fund www.statefundca.com W7State Fund First www.statefundfirst.com W5Tejas American General Agency www.taga1.com SC1Texas Mutual www.texasmutual.com SC3, SC5United Fire Group www.ufgsolutions.com E5

keted only through agents to appeal directly to consumers. These changes chal-lenge insurance provid-ers, as they need to shift their marketing messag-es and methods to reach their target markets and differentiate themselves from the crowd.

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

ance companies must shift their marketing messages and methods to reach their target customers. Using a strategy that generates phone leads, insurance providers can target consumers based on the type of insurance

they are looking for and their geographic locations. These strategies also allow busi-nesses to only pay for leads that convert. These strategies complement the tradition-al brand awareness campaigns.

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

McCooey is vice president of digital media services

at Soleo Communications.

With so much competition in the insurance industry,

growing agencies can no longer afford to sit

back and wait for customers to find them.


Closing Quote

By Hilary Rowen

‘…it is likely that either Congress will

enact legislation preempting con-

flicting state laws or state voters will pressure state leg-

islatures to allow them access to new technologies avail-

able in adjoining states.’

The Feds, the States and Self-Driving Cars

trols in California. In February, the NHTSA issued an interpretive letter to Google on the application of various Federal Motor Vehicle Safety Standards to autono-mous vehicles without oper-ator controls. The key finding in the interpretive letter is the agency’s conclusion that in a car without operator controls, the software controlling the car is the “driver.” The NHTSA con-cluded that a self-driving car without operator controls could not satisfy many of the current FMVSS standards, requiring either the promulgation of a new set of equipment stan-dards specific to self-driving cars or the issuance of exemp-tions by the NHTSA. While the NHTSA focus-es on specific equipment requirements — for example turn-signal controls — the draft California DMV regulations require assessment of the over-all performance of the self-driv-ing car. The NHTSA approach was designed to address incre-mental safety improvements; the DMV approach to provide a holistic framework for new technology.

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

A big question looming is whether the federal government or state

governments will play the pri-mary role in setting standards for self-driving cars. Historically, the feder-al National Highway and Transportation Safety Administration promulgated automobile equipment safety standards while the states regulated the use of vehicles on their roads. Recent actions by NHTSA and the California Department of Motor Vehicles illustrate the growing tension surrounding the regulation of self-driving cars.

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

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

Lines will never be applied to self-driving cars. Secretary of Transportation Anthony Foxx has announced that the NHTSA will issue guidance this year on testing protocols and benchmarks for autonomous vehicles. This suggests that the NHTSA may shift to a more holistic approach, although one that is likely to differ from the California DMV. Even if NHTSA does not act before self-driving cars are law-fully sold to the public in some state, when those cars reach a state line and stop operating, it is likely that Congress will enact legislation preempting conflicting state laws, or state voters will pressure state legis-latures to allow them access to new technologies available in adjoining states.

Rowen is a partner at Sedgwick LLP in

San Francisco. Phone: (415) 781-7900.

Email: [email protected].

Get full admission to all upcoming live webinars, plus unlimited access to our

entire catalog of 200+ course recordings for only $99/mo. ijacademy.com

IJACAD16644-49 (updated fonts 2).indd 2 1/19/16 12:42 PM

Get full admission to all upcoming live webinars, plus unlimited access to our

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IJACAD16644-49 (updated fonts 2).indd 2 1/19/16 12:42 PM

©2016 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. Insurance plans protected U.S. Patent No. 7,908,157.

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