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In This Issue:
LexShare HOME Rental Coverage
Are Your Non-Profits Fully Protected?
Special Feature: Shipping Season Savings
Additional Items:
Parting Shot
Last Week's Most Clicked
Sale of the Week

LexShare HOME Rental Coverage
By Herb Decuers, Underwriter Insure Response, LLC

The home and condo rental market is booming, and peer-to-peer leasing is leading the charge. With the rise of the home sharing economy and online services such as Airbnb, HomeAway, and FlipKey, it is easier than ever for home and condo owners to earn rental income and for "guests" to land accommodations that fit their needs and budgets.

While home (and room) sharing can be lucrative for homeowners, it exacerbates the typical homeowners risks. Recognizing this, Lexington Insurance Company has introduced the latest in its series of enhancements to LexElite® Homeowners Insurance: LexShareSM HOME Rental Coverage (LexShare HOME), explicitly designed to respond as the sharing economy reshapes the home and condo rental market. LexShare HOME extends homeowners protection expressly where short- and long-term landlords need it - providing coverage certainty with an expanded definition of "residence premises" and raising the roof on protection for losses from property damage, theft, and more.

Key coverage highlights include:
  • A broad definition of "residence premises" that eliminates any grey areas in coverage for primary and secondary rental properties, and expressly encompasses both short- and long-term rentals regardless of whether they are secured through online peer-to-peer websites or traditional real estate brokers.
  • Protection for rental of other structures on the "residence premises," such as a converted garage apartment - deleting the exclusion of other structures rented or held for rental in the standard homeowners policy.
  • Increased coverage for damage to landlord's furnishings, including appliances, carpeting, and other household furnishings, in each apartment on a "residence premises," eliminating the $2,500 coverage cap in a standard homeowners policy.
  • Enhanced protection for personal property, tripling - or more - the standard Special Limits of Liability in key areas. For example, LexShare HOME provides limits of $10,000 on watercraft of varying types; $5,000 for loss by theft of jewelry, watches, precious, and semiprecious stones; $7,500 for loss by theft of silverware, goldware, platinumware, and firearms; $7,500 on property used primarily for "business" purposes; and $4,500 on trailers or semitrailers as well as $4,500 on certain electronic apparatus and accessories.
  • Coverage for theft of personal property from that part of a "residence premises" rented to others.
  • $100,000 Watercraft Liability coverage for certain watercraft rented to others, such as jet skis, small sailboats and powerboats, canoes, kayaks, and rowboats. Standard homeowners policies provide no coverage whatsoever for watercraft rented to others.
  • Express coverage for tenant-caused damage to trees, shrubs, plants or lawns on primary and secondary rental properties.
LexShare HOME Rental Coverage is the newest addition to Lexington's suite of enhancements to LexElite® Homeowners' Insurance - each enhancement is designed to help consumers keep pace with the fast-moving risks of today's world. Additional endorsements include: Lex CyberSafetySM Coverage, Upgrade to Green® Residential, Eco-Homeonwer® Mandatory Evacuation Response Coverage, and LexElite® Pet Insurance.

The Non-standard Homeowners or Rental Dwelling is available all states except Hawaii. To learn more visit Big "I" Markets or contact Herbert Decuers at

1 Airbnb is Inc.'s 2014 Company of the Year, Inc.,
2 Inside Airbnb's Grand Hotel Plans, Fast Company,
3 Peer-to-Peer Rental: The Rise of the Sharing Economy, The Economist,  
Special Feature:
Shipping Season Savings
By Elif Wisecup, Director of Marketing of Big I Advantage®

Elves have been sighted and holiday packages are going to be flying through the air soon. If you don't have access to Santa's sleigh service, perhaps you can save on your holiday shipping expenses with your Big "I" member discount!

As long as you're a Big "I" member in good standing, you can take advantage of competitive shipping savings rates available from UPS. Whether you need your documents or packages to arrive the next day or you're simply looking for the most affordable shipping option, UPS understands the importance of reliability, speed and savings.

UPS discounts can help your bottom line by saving you:
These discounts are available even if you already have a UPS account. To enroll and start saving, visit or call 1-800-MEMBERS (1-800-636-2377) Monday-Friday from 8 a.m.-6 p.m.  
Are Your Non-Profits Fully Protected?
By Kimberly Fines, Underwriting Supervisor Philadelphia Ins. Co.

A group of association members filed a lawsuit alleging the recent election of a new board President did not follow the association bylaws. Members argued that the 51% majority vote required was not obtained for the election to be valid. Defense costs exceeded $75,000.

Most traditional insurance policies that a non-profit will purchase (Auto, Property, etc.) won't provide coverage for the above scenario. Let Philadelphia Insurance provide your clients with a solution through their comprehensive Flexi Plus Five product. The policy form offers a suite of five different coverages including: Directors and Officers, Employment Practices, Fiduciary Liability, Workplace Violence and Internet Liability.

Key Benefits include:

Broad definition of Claim includes written demand for monetary and non-monetary relief, arbitration, and administrative proceedings, as well as civil and criminal actions · Optional selection of counsel - Insured may choose defense counsel or tender the defense to the Underwriter · Defense Costs are in addition to the Limit of Liability · Most favorable venue wording for punitive, multiple, or exemplary damages · Modified consent to settle (hammer) clause - 50/50 with a 10% retention reduction for the Insured's acceptance of the first settlement offer · For profit subsidiary coverage available by endorsement · Definition of Individual Insured includes lawful spouse/domestic partner, the estate, and heirs · Personal & Advertising Injury coverage · Definition of Individual Insured includes global equivalents · True Worldwide coverage territory · Automatic acquisitions coverage for non-profit entities coming within the Insured organization's control during the policy period (up to 35% of assets)

What types of non-profits are eligible?
  • Associations
  • Chamber of Commerce
  • Church
  • Daycare Center
  • Foundation
  • Job Training/Sheltered Workshop
  • Social Club
  • Private K-12 Schools
  • YMCA
  • Youth Associations
    Just to name a few…
Complementary Products:
  • Cyber Security Liability
  • Non-Profit & Social/Human Service Package
  • Employed Lawyers Protection Plus
  • Crime Protection Plus
Non Profit Directors & Officers - Philadelphia Ins. Co. is available all states except Louisiana. For more information go to  
Insurance in the Headlines

Mark your calendars for the first Big "I" Virtual University webinar of 2016 and join VU expert Bill Wilson as he presents "Insurance in the Headlines." This three-hour program examines over a dozen current issues in the news (both consumer and industry) and their insurance implications with topics ranging from: homeowners insurance loopholes, car 'sharing' economy and resulting coverage gaps, driverless and 'wired' vehicle danger, fracking, landscape of terrorism, parents sued for failure to immunize children, climate change, home and business under- or -over-insured, NARAB, diversity/generation changes and cyber issues.

Insurance in the Headlines
January 27, 2016 - 1:00 to 4:00 p.m. EST
Cost: $79
Click here to register

By the end of the webinar attendees will be better able to counsel customers who question the exposures to loss of these issue and then respond (where possible) by matching them to insurance products and risk management techniques that can also help minimize agency E&O exposure. Webinar questions can be sent to Virtual University staff.

Remember that you can view the following webinars 24/7 by checking out the BIM Webinar Library. To do that log onto Big "I" Markets and click on "Publications".
  • Personal Liability Trends - Fireman's Fund
  • TravPay
  • Commercial Lessor's Risk
  • Affluent Homeowners
  • Travelers Select Products (series)
  • Travel Insurance
  • Community Banks
  • XS Flood
  • Real Estate E&O
  • RLI Personal Umbrella
  • Affluent Homeowner
  • "Oh, by the way...Flood Sale"
  • Habitational
  • Non-standard Homeowner
  • Student Housing
For all you folks who recently registered for Big "I" Markets, remember you can participate in a webinar from the comfort of your office to help you learn how to navigate around the system. Every Thursday at 2:00 p.m. EDT we'll show you how to navigate the Big "I" Markets platform, including how to submit a quote! A recording of this webinar can be found under "Publications" after logging into Big "I" Markets.
Student of the Industry Parting Shot
Calendar Year vs. Accident Year Data
By Paul Buse, President of Big I Advantage®

As agents you will most often see references to these two terms in traditional profit sharing agreements but you could also see them if you are involved with any program business. When you see these terms, just remember the big difference between them is how losses are tracked over time.

With accident year data, losses are tied to the year the premiums are collected. That is, paid losses and estimated losses (aka "loss reserves") and any changes to estimated losses are tied to the year the premiums were collected. Calendar year data, on the other hand, uses the same current loss figure but adds to them any changes from older years.

Why are there two? Because each has advantages. Accident year data is more "apples-to-apples" but it is also more work. Calendar year is easier. Below is a nice example of how the two can result in a very different picture of a loss ratio. Look at 2009. Focus on the red lines. The loss ratio is either 78% ("calendar year") or 36% ("accident year").
Click for larger version

Source: Insurance company annual filing or "Yellow Book" data for an example company taken from the LOB 17.2 "Other Liability Claims-made". This data is collected annually to assess competitor books of Other Liability Claims-made" for advising your agent colleagues and state staff on the Big "I" Professional Liability Committee.

Test Question/Prize: The first person that gets this correct and emails me at will get my vintage Big "I" logo cigarette lighter. It is 1980s vintage with old IIAA logo. Here's the question. Which type of loss data is NOT available by state and is only available nationally? 
Here are the top three items that got BIM agents clicking from our last edition... see what you missed!
  1. Selective's list of pertinent changes to NFIP Program
  2. Additional NFIP Program change announced after Selective list was published
  3. Supreme Court Decision Alters Retirement Landscape
Big "I" Markets Sale of the Week
Congrats to our agent in New York on a valuable articles sale of $5,226 in premium!  

Tuesday, November 17, 2015

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TFT is authored by Michael Welch
Big "I" Markets Marketing Assistant