Page 4 - Specialty Practices - February Newsletter

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Human Trafficking: How it affects clients

Human Trafficking is becoming a more prevalent concern across many industries, but it’s
the greatest exposure continues to be in the Hospitality Industry, specifically in hotels. We
see laws change in various states to reflect new training requirements and new prevention
procedures. We expect to see these laws coming to come to new states and new
industries in the future as a proactive control measure.

We already see companies like Hilton and UPS strengthen their internal policies and
training procedures. This is especially important ahead of large events such as the Super
Bowl, music festivals, and other large gatherings.

Like us in the insurance industry know, the market is continuing to harden. This means
insurance carriers will be looking for more attractive risks with these types of protocols in
place. It is essential to implement procedures like this to help receive competitive quotes
from the markets and to protect against negligence in case a claim were to
occur. HUB Risk Services has developed training documents and a
sample policy in both English and Spanish for our clients to use. This is
important to share with our clients and to use as a differentiator when
speaking with prospects.

- Mark Lee, Hospitality Risk Lead (Northeast Region)

Hardening Property Market and Quality of Risk

As we at HUB are acutely aware, the property market has continued to firm over the past
few months in the US and Canada, as well as in global markets. This comes following years
of reductions, often even so with limited COPE information, outdated property values and/or
losses on the portfolio. Clients had come to expect reductions year over year, regardless of
their property conservation practices. As the market changes, we are seeing an ever
increasing focus from carriers, on all of the previously mentioned concerns. Being flooded
with submissions, underwriters have the ability to pick and choose how they will use their
now-limited capacity, saving it for the best risks.

Amidst these challenges, brokers and clients alike will need to work harder, to secure
favorable property renewal terms. Submission quality will be critical, especially in the face of
prior losses. The brokers and clients who can tell their stories best will see the most
favorable outcomes. A large part of that story involves Risk Services working closely with
carrier marketing / placement brokers in the Hub regions. Speaking from experience here in
the Northeast, we have had a significant impact in working with our carrier marketing team in
a number of ways; telling the stories of poor loss histories and corrective actions since taken,
helping underwriters understand a complex manufacturing process and potential business
interruption exposure, implementing Water Damage Mitigation plans, negotiating
recommendations with carrier counterparts, and so forth.

Beyond grabbing underwriter’s attention, we’ve been successful with negotiating pricing,
deductible, and coverage improvements. This type of work becomes even
more critical in the current market. If you are going out to market 90-120
days out, engage risk services at around 180 days out, so that our
evaluations can be shared with the submission and the client can take
corrective actions where needed. Please contact your local Risk Services
Manager for assistance, and remember, don’t wait.

- Chris Dunlap, Real Estate Risk Lead (Northeast Region)

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