In this Power Producers Podcast episode, David Carothers is joined again by Kevin Ring, lead analyst at the Institute of Work Comp Professionals. The two dive into a critical yet often overlooked aspect of workers’ compensation—understanding common majority ownership and how it affects the experience modification factor (mod). This discussion is vital for agents who deal with businesses that own multiple entities or engage in mergers and acquisitions. Kevin explains why agents need to be proactive in gathering ownership details and completing the ERM-14 form accurately to avoid costly errors and ensure proper coverage.
David and Kevin explore the challenges agents face when dealing with businesses that have ownership stakes in multiple companies, and the importance of combining those companies on the same experience mod. They also touch on how M&A activity and asset purchases can complicate the mod process and why it’s crucial for agents to educate clients on these risks before they make business decisions.
Kevin explains how the common majority ownership rule affects the experience mod, and why it’s crucial for agents to ensure all companies under shared ownership are combined on the same mod.
Agents often skip asking clients about ownership in multiple businesses. Kevin emphasizes that these questions are critical not just for workers’ comp but also as a sales tool to deepen the client relationship.
David and Kevin discuss the complexities of mergers and acquisitions and how acquiring a company impacts the buyer’s experience mod. They explain why agents must ensure clients understand the financial implications of combining experience mods post-acquisition.
Kevin breaks down how to properly fill out the ERM-14 form, highlighting the importance of providing a narrative and accurate details to the Rating Bureau. This process helps agents avoid confusion and ensure proper risk management.
David and Kevin talk about how some businesses attempt to evade mod increases by creating new entities or joining PEOs. Kevin stresses that while this may seem like a short-term solution, it doesn’t address the root causes of high experience mods.
Kevin advises agents to proactively discuss business transactions, such as buying or selling a company, with their clients to avoid unexpected complications in workers’ comp premiums and ensure proper coverage adjustments.
The last several years have reshaped the landscape of property insurance across the country. While most national carriers have retreated from coastal states, wildfire zones, and other catastrophe-exposed regions, a handful of disciplined players have taken the opposite path—leaning into difficult markets with a strategic, data-driven approach.
For most entrepreneurs, the decision to start a business is rooted in the promise of freedom. Freedom from a boss, freedom to control income, and freedom to build something meaningful. Yet for many business owners, particularly in service-based industries and middle-market companies, that freedom slowly erodes. What begins as ownership eventually turns into obligation, where the business demands constant attention and the owner becomes the single point of failure.
The insurance industry is full of shortcuts. Some producers look for ways to streamline the quoting process, others avoid hard conversations with clients, and many rely on endorsements or extensions because they are “easier” than diving into the details. Nowhere is this more dangerous than in the world of cyber insurance.
Too many agents assume that a cyber endorsement on a BOP or commercial package policy is “good enough.” It isn’t. In fact, treating a BOP cyber extension as a replacement for a standalone cyber policy leaves clients dangerously exposed, puts producers at risk of losing accounts, and opens the door to costly errors and omissions (E&O) claims.
Cyber threats evolve faster than any other area of risk, and endorsements simply can’t keep up. If producers want to protect their clients and themselves, it’s time to understand why standalone cyber insurance is non-negotiable.
In the middle market, producers don’t lose because the competition has better pricing.
They lose because the competition understands people better—their motivations, their fears, their priorities, and what makes them say yes.
The cyber insurance market has softened in recent years. Requirements that were once rigid — like mandatory multi-factor authentication (MFA) or endpoint detection and response (EDR) tools — have been relaxed by many carriers. But here’s the danger: just because carriers aren’t demanding these safeguards today doesn’t mean businesses can afford to ignore them.
The insurance industry is entering one of the most transformative seasons in its history. For decades, our world has been shaped by carriers, underwriting cycles, prospecting methods, and the grit of producers willing to outwork their competition. But today, a new force is reshaping the landscape—and most producers, agency leaders, and industry professionals aren’t ready for it.
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