YOUR WORST DAY

HACKED!SOONER OR LATER, IT WILL

HAPPEN TO YOU. HERE’SWHAT TO DO.

2016 ISSUE 3

YOUR WORST DAYTHE THINGS TO DO. AND NOT DO.

SLEEP APNEATHE SERIOUS STORY OF DRIVERS

NOT GETTING ENOUGH SLEEP

NOTES FROM NATIONAL INTERSTATE INSURANCE F O R O U R P A R T N E R S I N R I S K

2 3

The People Behind the Policy

“Why have you stayed at National Interstate for so long?”

I was recently asked this question while interviewing a prospective hire. I paused for a moment and thought of my nearly two decades with the company, but my answer came quickly. It’s the people. And there isn’t a close second. Some of my best friends are found here; they work for, are insured by, or represent National Interstate, and I am humbled and honored to lead a company with such a vibrant culture.

National Interstate is home to hard working, talented people who truly care about doing their job well. I am not alone in believing that our people and the relationships we develop with our customers differentiate us from our competition. I believe it’s well-known that the National Interstate culture is unique in the insurance world. I have heard about it time and again from our many long-time insureds and agency partners, and even from former employees. Our “work hard, play hard” mentality is a source of pride for me, and as I take over the reigns as CEO, I am more mindful than ever that we don’t have a warehouse full of widgets out back. Our business is a people business.

For example, you may have noticed in our branding and marketing materials that National Interstate is fond of using what we call “Word Portraits” – snapshots of our customers and employees created with words that describe who they are and what they value. We created these Word Portraits after discovering, when it comes to depicting

Subscriptions:Extra Mile magazine is a free, quarterly publication offered by National Interstate Insurance Company in support of its customers. To subscribe, call 800-929-1500 or email [email protected].

Publisher:Established in 1989, National Interstate Insurance is one of the leading specialty property and casualty insurance companies in the country. Offering more than 30 different insurance products, including traditional insurance, innovative alternative risk transfer (ART) programs for commercial companies and insurance for specialty vehicle owners. Its customized solutions are made possible by its talented and dedicated team members. National Interstate employs over 650 employees in offices in Northeast Ohio, HI, and MO.

© 2016 National Interstate Insurance Company

Editorial Contributors:Brad Foust Amanda Genther Tracy Hicks Andrew Isakoff Terri Johnson Tony Mercurio Jen Mihalus Chris Mikolay Kate Mitchell Scott Noerr Terry Phillips Adam Redd John Rich Dan Russo Paul Stock

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what we do, the transportation insurance industry almost universally uses images of trucks, buses and open roads. And while we really love vehicles of all sizes, our business isn’t really about objects on wheels; our business is first and foremost about taking care of the person behind the policy. Simply put, we sell a promise to be the best partner on our customer’s worst day. And to that end, we must go above and beyond to communicate, develop strong partnerships and understand the challenges our customers face.

In my role as President & CEO, I am more committed than ever to putting people first. Within our walls that means working hard to become an Employer of Choice in Northeast Ohio. We work hard to nurture the outstanding talent we have and to recruit top talent as we grow. Over the past year we have launched numerous HR initiatives lead by our new HR Vice President Tony Brown, designed to improve workplace flexibility, employee wellness and our role as a community citizen. Our new Chief Information Officer, Scott Noerr, and his team are making significant upgrades to our IT infrastructure. Outside these walls, putting people first means recommitting ourselves to unequaled customer service, and to that end our Claims team continues to make strides under Steve Winborn, our Vice President of Claims, as we endeavor to provide “World Class Customer Service” every single day.

We are not perfect. No company is. But I genuinely believe that if we continue to attract and retain employees who go above and beyond, our customers will be better cared for. And in the end our shareholders will be rewarded as well.

Tony Mercurio, President & CEO

TO N Y M E RC U R I O

Letter from the President and CEOC o n t e n t s2016 ISSUE 3

Letter from the President and CEO 3

The Extra Miler: Ovi Tataru 4

Spring Safety Seminar a Smashing Success 5

Insurance in Plain English 6

You’re Going to Be Hacked. Have a Plan. 8

Your Worst Day: Leadership and Preparation for Catastrophic Claims 10

A Family Business: The Story of Jeff Greteman and Windstar Lines 12

Renewals: In Search of Smooth and Seamless 17

New Medical Provider Network in California 18

Sleep Apnea: From A to ZZZZ 20

“Hello. National Interstate. How may I direct your call?” 22

What Are You Waiting For? 24

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What is an Extra Miler? It’s an employee who has gone above and beyond – that extra mile – in his or her role. And this month’s Extra Miler is Ovi Tataru.

The lush green hills of Romania are home to many fantastic things. Famous literary monsters and the Carpathian Mountains. Ornate architecture. Miles of dense and undisturbed forests. It’s Romania’s long heritage of craftsmanship and its strong work ethic that has helped to define its people. National Interstate is fortunate to have one of Romania’s finest by the name of Ovi (Oh-vee) Tataru.

Ovi grew up outside of Fagaras, Romania until he started college at Transylvania University of Brasov. From a young age, he was fascinated with computers and learning how things worked. After completing his PHD in Romania, he relocated to the U.S. to continue his studies and find work. And in 2008, that led him to National Interstate.

Though he has held many roles during his tenure, his current position is Solutions Architect in Information Technology. But Ovi also does so much more. He leads our DevOps group, writes astonishing code, designs easy-to-use systems, mentors and trains our employees, researches new ideas and solves difficult problems. What he does most of all, is exceed expectations.

This past April, the Risk Management department hosted 160 attendees in Richfield, Ohio for our Spring 2016 Safety Workshop. Since Richfield is the location of our headquarters, we were not only able to offer attendees a tour of our campus facilities, but they also had an opportunity to meet with members of our senior management, underwriting and claim teams. Based on post-workshop survey results, our customers loved meeting the many people they work with on a day-to-day basis.

The agenda, always built upon past workshop feedback, focused on helping our customers improve their safety and compliance needs. From our keynote, Dave Mitchell of the Leadership Difference, who presented on “The Power of Understanding People” to our all-day FMCSA Regulation Review, the content was timely and packed with education. As with past workshops, our interactive roundtable discussions on topics such as “Best Practices” and “Creating an

Effective Training Program” were big hits as both provided an opportunity for attendees to share their processes and policies, and hear how their peers are managing similar responsibilities. Lastly, our team provided an overview of the wide range of training tools and resources available to all customers on our updated risk management website, which also includes all of the presentations from this safety workshop. You can find them at natlriskmgmt.com.

We certainly understand the investment and commitment our customers make to attend to these workshops and it’s very rewarding to know they are taking away valuable information that can impact their operations. As we close the books on another successful Spring Safety Workshop, we are already in the process of planning for a productive Fall Safety Workshop in Las Vegas, October 17-18, 2016 at the Red Rocks Resort.

Director of Risk Management

PAU L STO CK

Spring Safety Seminar a Smashing Success

For example, let’s look at one of Ovi’s recent projects. He was called in late (think fourth quarter, with 3 minutes to go) to provide a solution to a crippling performance issue. The code for the fix was complex and terribly outdated. In short, it would need to be overhauled and modernized to bring the system up to speed. Remember, it’s fourth quarter and we’re looking at two minutes, 30 seconds left now.

Ovi gladly accepted the challenge while balancing it against an already full project workload. Applying past experience and creativity to the problem, he produced a new design that allowed the system to process data more than eight times faster than the existing system. Thanks to Ovi, this project moved forward at lightning speed, saving the company several months of time and significant cost. For our customers, that means that we can process documents much faster.

This is just one recent example; Ovi makes these game-winning shots repeatedly – going above and beyond to provide outstanding service to our customers. Thank you, Ovi, for the example you set, and for living National Interstate’s Mission, Vision and Values!

Ovi Tataru’s skillset and good-natured attitude have earned him the respect of his teammates and the praise of management.

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Has this question ever crossed your mind, perhaps in the dead of night when you just can’t get your eyelids to stay closed…“Why are there all those exclusions in my insurance policy, and what exactly is being excluded?”

Well, this wouldn’t be much of an article if we simply listed the 40 exclusions specifically provided in the Commercial General Liability (CGL) Coverage Form; you could do that yourself, so let’s take a step back. You’ve completed your annual insurance review with your agent, put the policy back in the ever-growing file labeled, “Commercial Insurance” in your file cabinet and have secured another year of sound sleep knowing that much of your business risk has been transferred to a leading insurance carrier like – does anyone come to mind? Oh, yes – National Interstate. But, that nagging list of exclusions creeps into your consciousness every once in a while. It makes you wonder what risks you’ve not transferred, potentially exposing your assets. We know that’s not a great feeling to wake up to, so we’ll break it down.

The reasons why insurance policies have exclusions in the first place can be divided into four buckets:

➼ Uninsurable or Calamitous Events Insurance is based on probabilities; the profitability of an insurance carrier hinges on its ability to use past experience and apply current and likely future conditions to determine the probability of a loss. Since some types of incidents are so rare, there is no way to actuarially support the chance of an occurrence. Additionally, some events bring with them the

potential for losses of such a catastrophic size that the financial well-being of the insurer itself could be severely compromised. The War and Earthquake Exclusions fit this description.

➼ The Moral Hazard Insurance policies are written to cover damages that arise out of accidents, not from acts that are meant by an insured to cause harm. A moral hazard is created when an entity feels that they can act irresponsibly because the negative consequences of those actions are borne by another party. Some form of an Expected or Intended Injury exclusion appears not only in the CGL, but also the Business Auto, Workers’ Compensation and Employer’s Liability, and Property insurance policies for this reason. It is clear that permitting someone to insure themselves against injury or damage that they expect or intend to cause, knowing that their insurance company and not they will suffer the consequences, is not in the public’s best interest.

➼ Insurable, but for Additional Premium Because standard insurance policies are written to cover a wide variety of businesses, what is insured is often-times more broadly-written by design. However, your company may have a specific risk that is excluded, but you want to transfer to an insurer. The property policy for instance excludes loss or damage caused directly or indirectly by the enforcement of any ordinance or law. You may own a building that, should it need to be replaced because of a covered loss, would require costly upgrades to bring it up to code or it may not be able to be rebuilt because of a change of zoning. Many municipalities have laws that require the undamaged portion of a building that

is destroyed be demolished and removed if the damaged portion exceeds a specific percentage. Building Ordinance Coverage can be added by endorsement for an additional premium to cover these types of claims if that is a risk to which your particular business is exposed and you want to be sure you are covered.

➼ “Better Insured Elsewhere” The final general category, and the one into which most of the exclusions fall, includes those exposures for which a much more risk-specific insurance policy applies. The Commercial General Liability and Business Auto Coverage Form has exclusions for Workers’ Compensation and Employer’s Liability; this is because the exposures related to an employee becoming injured on the job are better covered with a Workers’ Compensation Insurance Policy. The Airplane, Auto and Watercraft Exclusion in the General Liability policy is such an exclusion; aviation, auto and boat liability policies exist that better address these unique exposures.

The Auto Liability section of the Business Auto Coverage form and the General Liability Coverage form are intended to protect you from very different exposures. For that reason, the former typically excludes those risks not associated with loading, unloading or transportation, while the latter typically excludes exposures related to the maintenance, use or operation of an auto.

Translation:

➼ The Business Auto Coverage form (check the Auto Liability section) typically doesn’t include risks that are not tied to loading, unloading or transportation.

➼ The General Liability Coverage form typically doesn’t include risks related to maintenance, use or general operation of the vehicle.

Plain English

Some other exclusions common to multiple policies are:

➼ Pollution: Except for some limited situations damage caused by pollution incidents are excluded in the GL, Property and Business Auto policies.

➼ Fellow Employee Exclusion: Injury inflicted by one employee on another while each is performing duties related to their job is excluded in the GL and Business Auto policies.

➼ Care, Custody or Control Exclusion: Damage to property left in the insured’s care, custody or control is excluded in the GL and Business Auto policies and is better insured elsewhere.

As stated earlier, these are some of the exclusions that the General Liability and Business Auto policies have in common and there are other exclusions that are more specific to the coverage provided. After you eliminate the exclusions that are better covered by other policies, those that would cover the consequences of someone’s reckless behavior and those that would jeopardize the company should a cataclysmic event occur, you’ll find the amount of risk that your insurance carrier assumes on your behalf is actually quite appropriate and the reasons for the exclusions are more easily understood.

One must be careful to read any coverage amendments that are state-specific and that amend the standard policy offerings. As always, every claim is different and what is or is not covered will be determined by the specific language of your policy, specific claim details, case law and regulations in the venue in which the claim occurred or where the suit is filed.

Director of Underwriting - General Liability

J O H N R I CH

In Plain English is an ongoing feature designed to take the mystery out of all the agreements, exclusions, conditions and definitions found in your insurance policy. We’ll choose topics based on the questions we hear most often, as well as suggestions we receive directly from you.

INSURANCE IN

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Ask 100 people to complete a sentence that begins with “I never thought it would ever…” and there’s a good chance that most will respond with exactly the same answer -- “…happen to me.” Coincidentally, that has been the position of many unsuspecting victims of a data or security breach.

As Joseph Demarest, Assistant Director of the FBI Cyber Division said, “You’re going to be hacked. Have a plan.”

As a consumer, you may be familiar with recent data breaches at big-box stores and credit card companies and the financial impact such breaches can cause. But in running your business day-to-day, what and how much exposure to Cyber Liability do you have?

Any “personally identifiable information” (PII) or “third-party information” (TPI) that you collect from your clients, such as credit card numbers, addresses, bank account numbers, or information that you maintain in personnel files on your own employees, such as medical records, has value to a malicious hacker. Exposure can happen whether you have PII stored electronically (think CRM system) or in paper form (think aisles of filing cabinets).

Surprising to many, according to a 2015 study commissioned by IBM, and performed by the Ponemon Institute1 less than half (47%) of all data breaches are malicious. The remainder results from human error or system glitches.

How can you be prepared with a cyber/breach response insurance policy?

A great deal can be gleaned from the full name of the cyber/breach response insurance policy National Interstate is offering: “Cyber Liability and Data Breach Response.”

The cyber liability portion is designed to cover your liability if damage is caused to third parties such as:

➼ Liability resulting from the theft, loss or unauthorized access to PII or TPI

➼ Suits for defamation, plagiarism and/or copyright infringement from website media content

➼ Regulatory defense or penalties for failure to meet specific reporting requirements

The data breach response coverage portion applies to costs possibly incurred for damage you experience such as:

➼ Investigative costs of computer, forensic and legal experts and expenses for call center services, public relations and crisis management specialists

➼ Contractual fines or expenses imposed by credit card companies used by the insured

➼ Cyber extortion costsDirector of Underwriting - General Liability

J O H N R I CH

"You're going to be hacked. have A PLAN.

➼ Expenses to restore your own data that was corrupted or lost because of the breach

➼ Business income lost due to a failure of your computer security to prevent a breach

What can National Interstate do to help?

Realizing that many of our insureds understand and care about cyber threats and the impact they may have on their risk management strategy, we’re offering an optional cyber quote with most new business and renewal quotes that also includes auto liability in those states that have approved our program.

With policy aggregate limits ranging from $50,000 to $1,000,000 and annual minimum premiums as low as $148, we feel confident that we can provide a solution to companies of all sizes and complexities.

In an attempt to ensure that we are providing claims services that

meet our high standards, we’ve partnered with Beazley, a leader in cyber data breach risk management and claims management. A worldwide industry leader, Beazley has helped more than 3,700 clients manage data breaches swiftly and successfully, As they say “a data breach isn’t always a disaster, mishandling it is. Any business handling customer data will, sooner or later, be confronted with the challenge of a data breach.” 2

For more information on partnering with National Interstate on your cyber liability or to request a quote, visit natl.com/InsuranceChoices/CyberLiability.1 “2015 Global Cost of Data Breach Study”,” Ponemon Institute, May, 2015. 2 https://www.beazley.com/specialty_lines/data_breach.html

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There are minor accidents: Fender-benders, side-swipes, flat tires, and lost cargo. They’re a part of the business. And then there are catastrophic accidents: Major destruction, human injuries, and worse. We call those “Your Worst Day”. No one wants to get the call that their driver has been involved in one. Catastrophic accidents rarely happen at a convenient time or location, so being prepared to quickly respond on your worst day is critical. Like a first impression, you get only one chance at the initial response to a catastrophic accident and mistakes made early on can have significant consequences.

The Initial Response

Often, motor carriers decline to immediately investigate a claim because initial information suggests that the accident was not their fault. However, fault is nearly impossible to determine based upon the limited information available immediately after a serious accident. Rarely is the severity of the accident overstated. Lawsuits filed following an accident are driven primarily by the potential for the recovery of monetary damages, not fault. Even a small percentage of fault in a catastrophic case can equate to a significant amount of monetary damages.

Regardless of fault, your response to a serious accident should always be the same — contact the appropriate authorities and preserve evidence.

Contact Us

At National Interstate, we have established teams that are ready to respond to catastrophic claims 24/7, including attorneys, field adjusters, investigators and experts.

As an extension of the early response team, an attorney is a critical part of the accident investigation because of the attorney-client privilege that attaches to the investigation. An attorney will work with you to direct the field adjuster, accident reconstruction expert and any other appropriate experts.

The field adjuster will interview and identify all witnesses, locate possible claimants, take accident scene photographs and determine the severity of any injuries. If the reliable supervisor is working remotely, the field adjuster should take the driver to receive DOT-

approved drug and alcohol testing. The field adjuster will also assist in the identification of any on-scene accident participants, including police officers, emergency medical technicians, firefighters, tow truck drivers and all others present.

Assign A Reliable Supervisor

If possible, you should dispatch a reliable supervisor to the accident scene immediately. If the accident is far from your home operation, assign a reliable supervisor to direct operations remotely. This person will be actively involved with National Interstate, and serve as your company representative at the accident scene.

Avoid sending someone who is critical to your daily operations; the reliable supervisor needs to focus on responsibilities at the scene. He or she will work with law enforcement and handle initial regulated activities. Appoint someone with a level head, who can calmly communicate with both your driver and law enforcement in extremely stressful situations and be well-versed in how to respond to an accident.

Reconstruct The Accident

An accident reconstruction expert may need to be added to the rapid response team. The “accident recon” preserves all electronics for download, documents all physical evidence and engages in strategic surveys and photography. A failure to collect and preserve this information in an accident where you may have a viable liability defense could result in your inability to assert that defense if a claim is made at a later date.

Obtain (And Retain) Electronic Evidence

The accident recon will coordinate downloading all electronic control modules (ECMs) and retrieving any data from dashboard cameras, sometimes known as automated event recorders (AERs). Do not assume that your local truck dealer can perform a download of the ECM or AER. Often, it’s much more complicated and may require factory-trained personnel.

On certain units, the existing data is wiped out when the engine is restarted. Even if a vehicle is drivable after a severe accident, you should “tow until you know” that a download of the ECM is not necessary.

Manage The Driver

Your driver is the most critical piece of the post-accident puzzle. In a perfect world, the driver should not be permitted to make a formal statement to anyone outside the presence of your attorney. Frequently, however, the driver may have already spoken to the authorities immediately after an accident.

It’s important to learn who the driver has spoken to and what was said. Your driver must be prepared and understand his or her responsibilities at the accident scene. He or she must be able to accurately convey information without fear, remain calm and professional, secure the scene, take appropriate photographs, deploy reflectors and seek immediate help from the authorities.

Perform Drug And Alcohol Testing

You must test your driver after a catastrophic accident. As mandated by FMCSA regulations, the driver must submit to drug and alcohol tests “as soon as practicable” following an accident when:

➼ a fatality has occurred,

➼ a citation has been given and injury occurred to anyone, or

➼ one of the vehicles involved was towed from the scene.

Remember, many municipalities can issue citations long after an accident – it could be days or even weeks. Be aware of your company drug and alcohol testing requirements. If they’re more stringent than the FMCSA regulations, then you must follow the former.

Handle Criminal Citations

It’s possible that your driver will receive a criminal citation, which will trigger different responses, processes and obligations for everyone involved in the accident. Advise National Interstate immediately of any citations received by the driver or by the company.

The Paper Chase

Truck litigation is often won or lost “on the paper,” i.e., the Driver Vehicle Inspection Reports, the maintenance and service records, the registration file, the logs, the driver’s cellphone records and the driver

qualification file. Before the accident scene is even clear, you must begin to assemble all records that may be needed to defend the claim. It’s far easier to assemble the data immediately after the accident than months — or years — later when a suit is filed. A failure to preserve this information can lead to separate claims.

( Social) Media Management

In a viral video world, you can expect media coverage almost immediately. If the media calls, contact us immediately. Never try to handle the media on your own. Your driver and all of your employees should be reminded that it is inappropriate to comment on, or discuss the accident on any social media channels, corporate or personal. For the time being, Facebook and Twitter are not your friends.

Outreach

If a fatality or critical injury occurred, special care should be taken with claimant communications. Take advantage of our leading experience and expertise before inadvertently making a bad situation worse. Please call us before claimant outreach is made. In plain English, keep quiet and let us do the talking.

Practice, Practice

Like a fire drill, you should prepare for and practice what to do in the event of a serious accident. Involve your drivers and reliable supervisors in your response test drills.

Practice these drills several times a year. Being prepared and knowing how to respond to a catastrophic accident can save your company from potentially severe consequences.

Senior Vice President - Claims

T E R RY P H I L L I P S

YOUR WORST DAY LEADERSHIP AND PREPARATION FOR CATASTROPHIC CLAIMS

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WINDSTAR LINES, a family-owned charter motor coach company, has deep roots in the tour and travel industry. Operating throughout the Midwest by the Greteman family of Carroll, Iowa, Windstar Lines’ core values focus on safety and service. Viewing maintenance as an investment, hiring great people and putting the customers’ expectations first all make for a business that has grown and prospered since its inception in 1995.

To learn more about how keeping it all in the family works for this thriving business, we turned to Jeff Greteman, Windstar’s president. Jeff talks about how it all began, what makes the company successful, and how they leverage technology and industry involvement to enhance their operations. Jeff also discusses his company’s 21-year relationship with National Interstate, and how this partnership has evolved over the years.

TELL US HOW WINDSTAR GOT STARTED AND HOW IT HAS GROWN OVER TIME.My folks, Mike and Cathy Greteman, started Windstar Lines in 1995 as an offshoot of their travel agency, Town and Country Travel. My Mom, who ran the agency since 1984, rented charter buses for tour groups and was never satisfied with the experience she got with the driver, the vehicle or even the cleanliness of the bus. So she convinced my Dad to buy their own motor coach, and in 1995 Windstar Lines was started with one three-year old bus and one driver. They ran it as a separate business out of the same office as the travel agency. Since the driver was on the road all the time, they decided to buy another coach the next year, and another the year after. Then, there was some talk about either selling the motor coaches or getting someone to run Windstar. I had just graduated from college a year earlier with a degree in transportation and logistics, so my parents suggested that I join Windstar to get the business going. And that’s exactly what I did. My

two brothers were still in college, but they started helping me with the business, whether it was driving buses, cleaning buses or working in the office. The three of us started growing Windstar a little bit at a time, buying other businesses, opening locations in different cities and growing our fleet. Now we have eight locations in five states and 97 vehicles. Our staff has grown to 150 drivers, and another 50 employees in office staff, mechanics, bus cleaners and shop personnel.

IN THE MID-90S WOULD YOU EVER HAVE ENVISIONED THAT YOU WOULD HAVE 200 EMPLOYEES? Probably not! My Dad built the facility in Carroll, Iowa for four buses, and I initially thought it would be nice to have about 10. As the business picked up, my goal was to have 40 buses by the time I was 40 years old, and we hit that when I was around 36. My folks never would have imagined that it would grow to be the company that it is today. It was really a series of opportunities along the way. We bought close to a dozen bus companies through the years and merged them into our operation.

CAN YOU ELABORATE ON THE ROLES AND RESPONSIBILITIES WITHIN YOUR FAMILY?My brothers, Scott and Pat, and I run Windstar Lines together. I look over the sales and finances, and Scott handles vehicle maintenance and any IT issues. Scott and I work at the main office in Carroll and our brother Pat, who lives in Coralville, Iowa, runs our Cedar Rapids branch. Pat is also very in tune with the operations and has his thumb on top of dispatching vehicles, hiring drivers and dealing with the daily bus trips. My wife, Lori, has been with us for 16 years and oversees the accounting department.

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We own all of the buildings in our eight locations, with my Dad managing the facilities and acting as the general contractor. We built some of the buildings from the ground up and others we rehabbed, so he also handles the construction process. My brother-in-law, Jair, works for my Dad’s insurance and real estate office, and they are the agents for our insurance. Jair also serves as Windstar’s corporate attorney. My Mom runs our tour company, Star Destinations, and is traveling with groups all over the world a good part of the year.

WHAT ARE SOME OF THE BENEFITS AND TRIALS OF WORKING SO CLOSELY WITH YOUR FAMILY?The biggest benefit of a family business is that you know there are other people right there with you that have the company’s best interest in mind above all else. And we all have unique abilities – I might be good at one thing, but Scott and Pat are good at something else, so we complement each other. Our education and backgrounds are different too, which has helped. With a family business it does get to the point where the conversation, whether at home or at the office, revolves around business. So if we are at my Mom and Dad’s on a Sunday afternoon, chances are Scott, Pat, Dad, Jair and I will be talking about bus stuff. While some might not agree, it’s been good for us and nobody ever says, “Hey, will you guys stop the bus talk!” There really aren’t any negatives about keeping it in the family. Everybody gets along, handles their own areas and feels like they are being treated fairly.

CAN YOU TALK ABOUT THE CHALLENGES YOU HAVE FACED IN RUNNING A SUCCESSFUL PASSENGER TRANSPORTATION OPERATION AND THE MAJOR ISSUES IN GROWING AND COMPETING IN TODAY’S ENVIRONMENT?A big issue for us has been staffing, which has gotten harder over the past two to three years as there aren’t as many available quality candidates. Last year, we made a big push to staff up. March and April are our busiest months and we had to turn away $250,000 to $300,000 worth of business because we were shorthanded and couldn’t take on last minute trips. That was really an eye opener so we told ourselves we are not going to do this again, and we increased our driver pool. We also developed programs for our branches so that they know how many drivers are needed to accommodate the busiest times of the year. Our goal is to get to the point where we can handle last minute requests, and our sales staff can book as much as possible as long as we have the equipment to run the trips.

Another challenge has been integrating the companies that we acquire into our operation. The biggest concern for the new employees is the uncertainty they face when we take over – how does it affect me, what’s going to change, is this a good company to work for, are they going to be fair? To facilitate the integration and reassure the employees, Scott, Pat, the branch manager, and I hold a meeting at the new location. We stress that we are a

hands-on family company and all we ask is that they come in, work hard while they are here, and then go home safely at the end of the day so that they can enjoy time with their families. We find that if you let your employees know what is expected and treat them fairly, the transition typically smooths out within a month or two.

HOW DO YOU USE TECHNOLOGY TO LOWER YOUR NET EFFECTIVE COST OF INSURANCE OR SAFETY IN GENERAL?We installed automated event recorders back in 2007, as we thought they would be a good training tool and would cover us in the event of an accident. Just a month or two later, the camera saved us in an accident that was a “he said/she said” situation. The video footage put an end to any argument that could have gone on for a year or two, and the insured admitted liability and paid us. It was a piece of cake. We have had several situations where the cameras were beneficial to us in proving what actually happened. At the same time, the technology has enhanced our training, as we can see what drivers are doing and address any issues right away.

We also have GPS systems in the buses, and one of the benefits of those are the fault codes that are relayed to our maintenance director. For example, we get an alert that a particular bus has a high coolant temperature so we can call the driver to check the coolant. This saves us on potential equipment failures. We also track the vehicle idle times, as well as speeding, so we can coach our drivers as needed.

And we started tracking our accidents and incidents not only by the driver and the vehicle, but also the length of tenure the driver has with us. So far in 2016, 60% of our incidents were with drivers that have been with Windstar less than a year. We monitor all of these things so that we have a benchmark.

Since side-swipes are our number one accident, we also recently invested in side-vision camera technology. We don’t want anyone having a claim or getting hurt, so we will try anything to reduce our exposure.

HOW DID YOUR RELATIONSHIP WITH NATIONAL INTERSTATE COME ABOUT?My Dad found National Interstate back when they started the business in 1995, and I truthfully do not know how that came about. One thing he said which has always stuck with me is that you don’t want to shop around for insurance and look for the best deal every two or three years. You want to find a carrier that you are comfortable with and then stay with them. If you’ve been with an insurance company for, say 10 years, and you pay your bills on time and are a good client, they’re likely to stick by you in case of a big loss.

In 2004, we joined a captive program with National Interstate because it just made sense financially. I remember going to the United Motorcoach Association (UMA) tradeshow and seeing National Interstate people wearing a sticker on their name badge that said “Ask Me About Calypso.” I got some information and it sounded like a good opportunity. Michelle Wiltgen, Assistant Vice President and National Commercial Marketing Manager at National Interstate, came out to our offices here in Carroll and did a presentation, and we joined Calypso. After about 10 years in the program, we were one of the larger operators and were ready to take on more risk, so we joined the TRAX program.

CAN YOU TALK ABOUT YOUR EXPERIENCE IN THE GROUP CAPTIVE – DID THE BENEFITS THAT WERE SOLD TO YOU MATCH UP TO REALITY? WAS THERE ANYTHING THAT SURPRISED YOU?We decided to join a captive because of the opportunity to get some of our premiums back. If the group as a whole does well, and we do well, we liked the idea of having a bit of skin in the game. Windstar is very safety focused and our claims are low, so we thought it might be a good fit. Once we got involved with it we found the semi-annual board meetings to be very beneficial for building relationships with other operators, as well as with the National Interstate team. Through the meetings I got to know my product manager, Michael Heramb, so I know he’s going to take my call and answer my question. It’s not like being directed to some big call center where you really don’t know who you are talking to. I’ve met senior management at the meetings – Alan Spachman, Dave Michelson, Tony Mercurio – and it’s neat to see their genuine concern for the group. The meetings are also a great forum for getting to know other members and share

best practices. We have made friends all over the country, so if you have a driver or maintenance issue, you can always reach out to another member. For example, we were at one of the Calypso meetings and we ran into a situation where we needed a bus in New York, and another member loaned us one of their buses to use for the day. It was just easy because we were together at the meeting. There are a lot of really smart people to interact with in our group, so we learn a lot and we really look forward to the meetings.

WHAT DOES WINDSTAR LINES DO FROM AN INDUSTRY PERSPECTIVE (STATE OR NATIONAL ASSOCIATIONS) AND WHAT DO YOU GET FROM THOSE RELATIONSHIPS?We are members of UMA, American Bus Association, and the Midwest Motor coach Association where my brother Pat is on the board. My Mom has served as chairman and CEO of the National Tour Association. Much like being in a captive program, these industry events are excellent as far as building relationships with fellow operators, and meeting vendors and those you deal with throughout the year. It’s a great time to network and swap stories with other operators – how

they buy fuel, how they buy parts, how they run their shop or deal with customer situations, what type of Wi-Fi they use, etc. There are a lot of people out there with really good ideas and you always learn something – it’s invaluable.

WE DON’T WANT ANYONE

HAVING A CLAIMOR GETTING HURT, SO WE WILL

TRY ANYTHING TO REDUCE

OUR EXPOSURE

W E TA K E C A R EOF OUR CUSTOMERS AND OUR EMPLOYEES AND

SHOW A TRUE CONCERN FOR THEIR

W E L L B E I N G

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WHAT DOES WINDSTAR LOOK LIKE IN 10 YEARS? DO YOU HAVE ANY GOALS FOR NUMBER OF BUSES OR OTHER GROWTH MARKERS?We honestly don’t have any goals regarding number of coaches or even sales. There are a few more cities that we would like to be in that would help our network, but mainly we are trying to focus on refining our processes. For example, we are updating our fleet to all the same model of buses, and believe this uniformity will lead to more consistent training and improved maintenance. We also want to grow some of the smaller branches and have a goal that each branch has at least 15 coaches, a branch manager, assistant manager, 30-40 drivers, two or three mechanics and two or three bus cleaners. We have been in a growth mode over the past several years so now we are looking to grow organically, run what we have, and really do it well.

IF YOU HAD ONE PIECE OF SAFETY ADVICE FOR ANOTHER MOTOR COACH OPERATOR, WHAT WOULD IT BE?Once you get to a certain size, you need to appoint someone in your operations to focus solely on safety and risk management. When we started Windstar, Pat and I put on the safety meetings and did the training, but when we reached 25 coaches we hired a Safety Director. Especially these days with more and more regulations, you really need a dedicated safety professional – you can’t put a price on it.

HOW DO YOU GAIN YOUR COMPETITIVE ADVANTAGE?Our business model is really simple – we pick people up, take them somewhere and then bring them home safely. And while we don’t focus a lot on what our competitors are doing, we are definitely aware of them and know that we compete with some really good operators. We are more concerned with running our operation the best we can. Our motto is “Safety First – Customer Service a Close Second” and that’s what we try to live by every day. We take care of our customers and our employees and show a true concern for their wellbeing. It’s the little things that really matter, like following up with customers to thank them for their business with a quick email or card. Or sending a driver who is working on Thanksgiving a text message to thank him for driving that day and wish him a happy holiday. We try to make all our interactions personal and very genuine – and above all, we try to do things the right way.

The best insurance renewals are the smooth, predictable ones. Nobody likes surprises, waiting until the 11th hour for numbers, or an arduous, overly complicated process. At National Interstate, we appreciate a seamless renewal as much as our customers and insureds. To that end, we offer this handy guide for ensuring there are no surprises, and that the renewal process goes smoothly for all parties:

The Renewal Round Up: Traditional Insurance Products

T-minus 90 days from policy expiration: ➼ Communication with the agency is initiated to generate a policy

renewal strategy

➼ Renewal notices may be mailed to the insured and agency in compliance with state law requirements

➼ National Interstate begins its review of the renewal account performance during the past policy period, including any prior account history

➼ Renewal submission requirements are requested and include the following:

➼ National Interstate Renewal Application

➼ Summary of any changes throughout the policy period

➼ Updated Safety & Training manuals

➼ Currently valued loss history for all years the account was not with National Interstate

➼ Drivers list including date of birth and date of hire

➼ MVRs for all drivers

➼ Four most recent quarters of IFTA reports (if applicable)

➼ Vehicle list including complete VIN #s and values for Physical Damage Coverage

➼ Company financials

T-minus 30 days from policy expiration: ➼ Release renewal strategy and terms to the insured’s agency,

assuming all of the above information is received

➼ The agency, National Interstate Business Development Specialist and Underwriter all have the opportunity to discuss renewal terms prior to expiration.

Between 30 days and policy renewal: ➼ The agency and insured review updated terms and sign-off on

new policy.

Alternative Risk Transfer customers follow a very similar process, but the timing is a little different. The renewal process is initiated about 120 days prior to expiration. Also, the customer has the opportunity to discuss renewal terms with their product manager and members of senior management prior to renewal and during each program’s Advisory Board meeting.

Regardless of the program or product, communication is key. We always want to set expectations and allow open lines of communication with our agency partners and customers throughout the renewal process.

Senior Business Development Manager, Trucking

T R AC Y L . H I CK S

Renewals: In Search of Smooth and Seamless

F O R O U R A G E N C Y PA R T N E R S

1918

N ational Interstate is constantly researching new ways to contain the high cost and impact that workers’ compensation

claims have on each of your operations. With rising medical expenses and provider quality among the more significant drivers, we are looking across at each state for opportunities to contain costs. One way is through the development of medical networks.

Recently, National Interstate announced a new Medical Provider Network (MPN) in California. Over the last eighteen months we’ve partnered with expert network provider, Networks by Design (NBD), to build a custom network specifically designed around you. Our philosophy for selecting providers focused on contracting with physicians who both understand the workers’ compensation system from the carrier’s perspective and are committed to providing exceptional care for your employee if an on-the-job injury occurs.

Having a Medical Network significantly increases the opportunity to reduce your overall workers’ compensation claim costs in two ways. First, the medical network provides greater control over medical costs over the life of a claim, and second, the insured may be able to obtain more favorable medical treatment outcomes. In 2014, California passed legislation that significantly reduced the compliance and regulatory barriers that made it difficult for you to implement an MPN within your company. Now, the regulations no longer require employers to provide employees with advanced notice of MPN usage. The MPN Notification is given at the time of injury.

The following FAQs should address many of the questions you may have. If you would like more information please contact our Nurse Team Leader, Melissa Doyle 800-929-1500 ext. 5499.

Does my company have to enroll in the MPN?

As an insured of National Interstate, you’re automatically enrolled in the network. In 2014, California removed the prior notice requirements that made the program a challenge for some employers to implement.

How do I, or my employee know which doctor to select in the MPN?

We encourage you to select an occupational medicine clinic, urgent care clinic, or an acute care hospital within the MPN to serve as your designated treatment facility. Although not required, this will help expedite the process of receiving treatment within the MPN when a work-related injury occurs. If you don’t have a preference, you and/or your employees may use the MPN search tool at NatlMPN.com or call the medical access assistant at 877-854-3353 to locate a provider and schedule an appointment.

What if I like to use a provider that isn’t in the MPN?

You may nominate a provider at any time. If the medical provider meets the quality of care standards for the network, NBD will work closely with the provider to join the MPN. Without the MPN, an employer can only direct care for 30 days. After 30 days, National Interstate will

work with the employer to determine if there is a need to transfer care back into the MPN with another network provider.

What if I have open claims from prior to the implementation of the MPN?

Your claims are being reviewed to determine which injured employee(s) should be transferred into the network. Your adjuster will work with you directly to address any concerns you may have regarding treatment from out-of-network providers.

What are the Important Facts and Changes to the MPN since 2014?

➼ MPN Employee Notices prior to implementation and at time of hire are no longer required.

➼ MPN Employee Notifications are only required at time of injury or when the injury is reported.

➼ MPN Employee Notifications are also required when transferring claims into a MPN.

➼ All California Employers are still required to adhere to California Regulations pertaining to the DWC-1, DWC-7 posting, Time of Hire Pamphlets, and Pre-designation Forms.

What Does the Employer Need to do After Reading this Notice?

➼ Communicate the new MPN and above information to your employees.

➼ Update your DWC-7 with the following MPN information and post at your location:

➼ MPN Name: National Interstate MPN

➼ MPN Identification Number: 2420

➼ Medical Access assistant: 877-854-3353

➼ The DWC-7 with the MPN information is located at NatlMPN.com

➼ When an injury occurs provide the 2016 DWC-1 and MPN Employee Notification. National Interstate will send an official notification to the employee through proof of mailing. The DWC-7 with the MPN information can be found at NatlMPN.com

M E D I C A L P R O V I D E R N E T W O R K

IN California

AVP, Workers Compensation

DA N I E L A . R U S S O

NEW

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Obstructive Sleep Apnea is a disorder in which the body has momentary disruptions in the breathing cycle while asleep. These disruptions, or pauses, usually occur when the muscles in the back of the throat relax and inadvertently cause the airway to narrow or close up altogether, causing an inadequate breathing pattern. To correct this inability to breathe, and increase the level of oxygen in your blood, the brain will awaken you from sleep to open the airway. In most cases you won’t even remember the event.

Why should you care?

According to a Federal Motor Carrier Safety Administration (FMSCA) commissioned study, roughly 26% of licensed commercial drivers suffer from some form of sleep apnea. Studies have shown that sleep apnea can severely impact driving performance by greatly increasing fatigue, boosting the risk of crashes and claims.

By seeking proper diagnosis and successful medical treatment, companies may be able to mitigate health care costs and reduce crash risk.

However, since it is a condition that does not present itself during a routine physical exam or show up on a blood test, sleep apnea often goes undiagnosed. Most people suffering from undiagnosed sleep apnea consult their doctor on the advice of a family member or sleeping partner who notices the potential signs. In most cases, a family physician will refer patients to a sleep specialist to conduct a sleep study. A sleep specialist will prescribe one of two types of tests: A nocturnal polysomnography, or an at home sleep test that monitors breathing and other bodily functions during sleep, to help establish a diagnosis of sleep apnea.

After all tests have been administered, evaluated, and an official diagnosis is determined, doctors will, in most cases, prescribe a continuous positive airway pressure device commonly referred to as a CPAP machine. With this machine, a pressurized amount of air is delivered via a mask through the nose while you sleep. With

this delivery method the air stream forcibly keeps the airway open and unobstructed.

Remember, obstructive sleep apnea is a potentially dangerous disorder that affects how your body recuperates after a long day, and can jeopardize how your body functions on a day-to-day basis, which includes being safe on the road. Knowledge and a proactive approach can ensure that you are fully rested and ready to deal with the challenges presented every day.

Risk Management Associate

A DA M R E D D

Sleep Apnea: From A to ZZZZ

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zzz.z...z...z..zzz.zz...zzzz..zz..zzz...

zzz.z...zz...z..zz.zz...zzzz..zz..zzz...

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W H Y Y O U S H O U L D B E C O N C E R N E D

Risk factors that can contribute to obstructive sleep apnea include: a BMI of 30 or greater, large neck circumference, narrowed airway, age, alcohol and tobacco use, nasal congestion, and family history.

People who struggle with obstructive sleep apnea often suffer from various complications. One complication may include daytime fatigue due to the repeated awakenings. The body isn’t able to reach the restorative deep sleep needed, causing you to experience fatigue and irritability during normal waking hours. High blood pressure and heart problems, such as heart attacks and irregular heartbeats, may also occur as sudden drops in oxygen levels cause undue strain on the cardiovascular system. This strain causes blood vessel constriction and an increase in overall pressure levels. Additionally, compared to people without the disorder, sleep apnea sufferers are more likely to develop insulin-resistant and type 2 diabetes.

Sources:nhlbi.nih.gov/health/healthtopics/topics/sleepapneaalertdriving.com/home/fleet-alert-magazine/north-america/trucking-wakes-sleep-apnea mayoclinic.org/diseases-conditions/sleep-apnea/basics/treatment/con-20020286

W h o ’ s N o t G e t t i n g T h e i r Z Z Z s .

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Do you remember the first time you called National Interstate? Like most, you were probably surprised to be greeted by a real live person with a real name. Was it Donna, Karen, Darci or Jackie? We call these helpful colleagues our Directors of First Impressions.

Like the rest of the world, we could answer calls with a machine that sends you on a wild goose chase that inevitably has you pounding “0” in a desperate attempt to speak with a human being who can actually help. We could make you pick a number between 1 and whatever but then we wouldn’t be National Interstate, would we?

We understand that our callers know what they need when they dial 800-929-1500, but they don’t always know who can help them. Because of this, our Switchboard team is our virtual front door. They welcome you in. And then they do their best to quickly get you to the person most able to answer your question, solve your problem, or provide you with a solution to your need. Why? Because we know you should be spending your time growing your business and not being put on hold by your insurance company.

If you’re tired of being stuck in a telephone maze, give us a call. Our Directors of First Impressions are waiting to give you not only the personalized service you deserve, but an insurance experience built around you.

You know their voices, now get to know them.

“Hello. National Interstate. How may I direct your call?”

NAME

Donna Mims

EMPLOYED WITH NATIONAL INTERSTATE SINCE

1997

FIRST JOB EVER

Jo-Ann Fabric store as an inventory clerk

BEST THING ABOUT MY JOB

Helping customers and assisting employees every day

WHAT I LIKE TO DO WHEN I ’M NOT AT WORK

Visiting museums and I love going to any library.

SOMETHING UNUSUAL ABOUT ME

I love watching the old 1970’s Soul Train, Donny & Marie, and Captain & Tennille episodes

BUILDING POSITIVE CUSTOMER EXPERIENCES MEANS

Being a good team player so that everyone has a great experience here at NATL.

NAME

Darci Otto


2015

FIRST JOB EVER

McDonalds


The best part about my time at National Interstate is definitely the people that I work with. Enjoying the people that surround you on a daily basis definitely makes coming into work not a burden.


When I am not at work or chasing around my 3 year old I like to take my Australian Sheppard mix hiking. I also enjoy taking my daughter and dog swimming.


I wear sunglasses as a hair accessory. Even when it’s raining.

EXTRA SKILL THAT SETS ME APART

I am incredibly calm in high stress situations.

NAME

Jen Mihalus, Supervisor


1993

FIRST JOB EVER

Little Caesar’s Pizza


The best thing about working here has to be the interaction with people, from our customers to my co-workers. I truly enjoy helping others every single day.


I love to read and, write and I volunteer in my community and church.


It means providing A+ service to all of our customers: treating everyone with the respect they deserve.

NAME

Jackie Geml


2013

FIRST JOB EVER

Latchkey Lady


I enjoy the ability to interact with employees in all departments that I did not have the opportunity to before I joined switchboard!


I was born and raised in Michigan!


I am a floater receptionist, so when I’m not filling in for the other three receptionists, I also assist our Commercial Line Support team with daily and monthly loss runs.


I love that I have the opportunity to positively impact every single customer that calls our company. When a customer tells me that something as simple as the way I answered their phone call made their day, I know that I’m doing my part in building positive experiences.

NAME

Karen Lopez


2011

FIRST JOB EVER

Antonio’s Pizza in Parma, Ohio


I enjoy the daily interaction with a wide variety of people.


I love to read and travel in my spare time.


I am a bilingual speaker in both English and Spanish.


In order to build positive customer experiences, I have to put myself in the caller’s shoes and treat each call with the individual attention that it deserves. It could be as simple as giving out a company fax number or as complex as calming an caller who feels that he or she has not been given adequate attention.

Vice President

T E R R I J O H N S O NSupervisor

J E N M I H A L U S

Pictured left to right: Jackie Geml, Karen Lopez, Donna Mims, Jen Mihalus (not pictured: Darci Otto)

24

3250 Interstate DriveRichfield, Ohio 44286

We’re probably preaching to the choir, but it’s important that claims are reported to us as soon as possible. Why?

A delay in reporting increases the risk that key physical evidence may be destroyed, lost, or made difficult to discover and preserve. Think of how tire skid marks fade over time or how the appearance of a road can change as it undergoes construction. Or, how it can evolve from winter to spring in areas prone to snow and plows. Additionally, over time, you run the risk of witnesses who may be unable to remember key details, or who become impossible to reach, resulting in incomplete or non-existent witness statements. Delays in reporting may also lead to missed opportunities for early resolution before significant expenses can incur.

While there is variance between types of claims and individual studies, industry data typically shows that delayed reporting can increase the cost of a claim by 2-4% per day. Likewise, studies indicate that delayed reporting doubles or even triples the likelihood that the claim will be litigated. Our Claims team is here to answer your questions and resolve your claim quickly and compassionately.

Should you experience a claim, choose one of three ways to the right to report it promptly. Even when you’re not at fault, it is still your responsibility to report the claim.

Director of Claims Services

A N D R E W H . I S A KO F F

W h a t A r e Yo u WA I T I N G F O R ?

www.natl.com

[email protected]

800-929-0870 330-659-8909 (fax)

In Hawaii or Alaska: 808-536-3366 or 800-316-9167

808-536-2467 (fax)

Documents

YOUR WORST DAY