Author: Addi Sickels

In commercial insurance, successful renewals do not happen at the last minute. Success comes from the right actions and communications from the service team. For you, one of the methods we use to manage the renewal is through our renewal strategy meetings.

We do not consider your policy expiration to be a deadline, rather a road map. Your service team reviews accounts that are 120 days from renewal on a consistent basis, which works to the service team’s and your advantage. They are then able to be prepared to face the changes and challenges that the renewal brings and are able to take advantage of the new business opportunities.

Your team forms an overall renewal strategy at the 120-day mark. We look at where the best options for coverage and pricing are, as well as service and retention, and whether that best option is with your current carrier or whether we start the marketing process. If your business has recently changed significantly, we may recommend a stewardship meeting to review these changes. From that meeting, the service team will define what information is needed and how carriers and/or brokers will be contacted, along with other tasks and preparations for the meetings.

As renewal gets closer, we start collecting new information about your business, which could be changes to payroll, revenue, locations, vehicles, equipment, or how your business functions. We analyze your past claims and look for patterns that will inform your coverage. This also helps us understand what enhancements to coverage may be necessary.

At 60 days prior to renewal, your account is assessed by the marketplace. We correspond with insurance carriers and respond to underwriting requests to create the best options for you. We do this in order to get the process started for you and maximize the time leading up to renewal to present you with options and answer your questions as we finalize your coverage.

The last 30 days prior to your renewal are about option presentations and answering any final questions before we lock in coverage. We have all of the heavy lifting out of the way at this point to aid you in making the best-informed decisions concerning your insurance program.

Having your broker come to you months before renewal helps reduce surprises. With a more predictable cycle, better, easier coverage decisions are the result. Clients appreciate brokers who come prepared, and it helps to create a successful partnership.

The true measure of a broker is not how they react to the last-minute renewal deadline. It is how they operate in the month to months leading up to it that will create actual value during renewal. It takes strategic planning, communication, and preparation to create a consistent experience and better, stronger protection each year.

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

Preventive Maintenance for Coastal Properties

Coastal properties face unique challenges due to their proximity to the sea. Harsh weather conditions and saltwater corrosioncan impact the longevity and safety of coastal homes. Since home insurance typically excludes damage due to negligence ornormal wear and tear, proactively addressing these issues is crucial.

Wind Damage
Coastal areas are prone to powerful winds. To mitigate potential wind damage to your home, consider installing impact-resistant windows and doors to help prevent breakage during storms. Ensure your roof is securely anchored and considerhurricane shutters for additional protection from flying debris.

Saltwater Corrosion
Salt air can accelerate the corrosion of metals and other vulnerable building materials. Choose fiberglass, vinyl or PVC forsiding, trim and windows, as these materials are generally less susceptible to saltwater damage. Use stainless steel wherepossible. Consider applying protective coatings to guard against rust and corrosion.

Humidity and Mold
High humidity levels can foster mold growth, posing health risks and damaging your home. Use dehumidifiers and airconditioning systems to maintain optimal interior humidity levels. Reduce indoor moisture by fixing plumbing and roof leaks,as these can increase indoor moisture levels.

Termite Infestation
Termites can cause severe structural damage over time. Look for signs of termite activity, such as small holes in wood or visibledroppings. Hire a reputable pest control company to conduct routine inspections and provide treatment.

Choose Durable Finishes
Traditional paint may not withstand coastal conditions. Choose natural finishes, such as stone cladding or stained wood forbetter weather resistance.

Landscaping
Selecting native plants can help simplify maintenance while supporting your local ecosystem. Native plants may require lessupkeep and are typically adapted to the local climate, reducing water and pest control needs.

Secure Appropriate Home Insurance Coverage
Ensure you have flood insurance, as standard homeowners’ policies exclude this crucial coverage. You may also need windstorm insurance to provide appropriate protection against common perils in your area. Contact your agent for personalized home insurance quotes, including additional policies and endorsements.

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.

The past few years have seen a rapid expansion in artificial intelligence (AI), with many businesses leveraging this technology to automate workflows and administrative tasks, analyze vast amounts of corporate data, and enhance customer service offerings. However, as more businesses integrate AI-powered tools into their operations, this technology is also posing unique exposures.

Complicating matters, many standard commercial insurance policies were written before the widespread adoption of AI. In response, a growing number of insurers have begun updating policy language and, in some cases, introducing certain coverage exclusions for AI-related risks. Consequently, businesses that neglect to review these policy changes could face considerable coverage gaps and unanticipated out-of-pocket losses when claims arise.

This article provides more information on common AI-related exclusions in the commercial insurance landscape and offers associated guidelines for policyholders to keep in mind before renewal.

Common AI-related Exclusions

Exclusions for AI-related risks have emerged across several lines of coverage in the commercial insurance space, including the following:

• Commercial general liability (CGL)—In recent years, many liability policies were largely “silent” on AI-related exposures, making the extent and scope of coverage for such losses relatively ambiguous. Effective January 2026, the Insurance Services Office (ISO) introduced multiple generative AI exclusion endorsements for its CGL coverage forms. Since most insurers utilize ISO-based forms, carrier adoption is expected to increase steadily throughout the CGL segment. In practice, these endorsements may exclude coverage for third-party bodily injury, property damage, and personal and advertising injury losses stemming from generative AI outputs.
• Professional liability/errors and omissions (E&O)—Alongside the rising prevalence of exclusion endorsements for AI-related risks in the CGL space, the E&O segment has demonstrated some of the most aggressive exclusion activity toward these exposures. In particular, some insurers have introduced broad exclusions that eliminate or significantly restrict coverage for losses tied to AI-powered professional services or advice. This is especially concerning for businesses that leverage AI tools (e.g., chatbots) in client-facing operations.
• Directors and officers liability (D&O)—In the D&O space, some insurers have started implementing exclusions for certain AI-related exposures and using more restrictive policy language regarding AI governance risks. One of the top concerns in this segment is claims stemming from AI-washing, in which companies are accused of overstating or otherwise misrepresenting their AI usage or the capabilities of this technology to investors and the general public. As a result, insurers are placing greater scrutiny on AI-related disclosures during the underwriting process, and policy language may continue to evolve to address these risks.
• Fidelity and crime—Standard fidelity and crime policies generally exclude coverage for cyber fraud, particularly for social engineering attacks that involve honest employees being manipulated by cybercriminals into transferring company funds to external accounts. This exclusion also applies to AI-enabled fraud, namely deepfake plots and business email compromise scams, as these incidents usually don’t qualify as “direct theft” under traditional policy terms. To combat these exposures in the fidelity and crime space, businesses may need to purchase social engineering or fraudulent instruction endorsements. Even then, specific coverage capabilities will depend on the nature of the incident and the type of fraud involved, with some insurers implementing strict sublimits and security requirements.
• Cyber—Unlike other lines of coverage, insurers in the cyber segment are largely affirming rather than excluding claims stemming from AI-driven losses. While businesses may still need to secure endorsements for certain events (e.g., social engineering schemes), standard cyber policies typically cover losses resulting from cybercriminals using malicious AI programs to penetrate corporate networks, expose confidential data or deploy automated ransomware attacks. Nevertheless, cyber insurance does not apply to bodily injury and property damage losses, which could leave businesses with ongoing coverage gaps if their other policies fully exclude AI-related risks.

Guidelines for Policyholders

In light of these evolving exclusions, it’s critical for policyholders to review their coverage before renewal and take steps to prevent potential gaps. Here are some key guidelines to consider:

• Document and disclose AI usage. Businesses should conduct a detailed inventory of their AI usage across their operations, including standalone tools and those embedded within third-party software platforms. This inventory should be well-documented and shared with insurers during the underwriting process. Failure to disclose the full extent of AI usage could give insurers grounds to deny associated claims or rescind coverage moving forward.
• Review policy definitions and limitations. Rather than focusing solely on the declarations page of their policies, businesses should carefully review these documents in full, especially the exclusions section, for AI-related restrictions that might otherwise be missed. Businesses should also note how AI is defined in their policies to determine whether this language is broad enough to cover losses stemming from routine or incidental AI use. When applicable, businesses should request copies of any AI-related endorsements for their CGL, E&O, D&O and other liability policies, thereby ensuring full comprehension of what is and isn’t covered.
• Explore additional coverage options. Businesses should never assume they have sufficient coverage for AI-related exposures just because their cyber policies affirm these losses. Cyber insurance rarely fills other liability coverage gaps, especially for businesses with significant E&O exposures. Businesses struggling to secure adequate protection against AI-related risks under standard commercial policies should consider purchasing specialized AI liability coverage. Yet, it’s worth noting that these offerings are still evolving and remain somewhat limited. In any case, businesses can consult trusted insurance professionals to discuss their unique coverage needs.

Conclusion

As AI continues reshaping business operations, its insurance implications grow increasingly complex. Policyholders must proactively review their coverage, disclose AI usage and work with insurance experts to remedy ongoing gaps before they become costly surprises. Staying informed and adaptive is the best defense against future AI-related claims. Contact us today for additional insurance guidance.

The content of this article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. TRUE Network. All Rights Reserved.

On June 4, 2026, the Departments of Health and Human Services, Labor, and  the Treasury, together with the Office of Personnel Management, published a final rule (the “Final Rule”) revising the federal independent dispute resolution (“IDR”) process under the No Surprises Act (the “NSA”).

Background

Enacted as part of the Consolidated Appropriations Act, 2021, the NSA generally protects patients from surprise medical bills for out-of-network emergency services, certain non-emergency services furnished at in-network facilities, and out-of-network air ambulance services. These protections generally took effect January 1, 2022.

When neither a specified state law nor an applicable All-Payer Model Agreement determines the payment amount, the parties may use federal IDR following a 30-business-day open negotiation period. If negotiation fails, either party generally may initiate IDR during the following fourbusiness-day period. Each party submits an offer, and a certified IDR entity selects one after considering the qualifying payment amount (“QPA”)  and properly submitted information concerning the other statutory  factors. The QPA generally is based on the median contracted rate for the  same or a similar item or service in the applicable insurance market and  geographic region, adjusted for inflation.

Key Considerations

Expanded disclosures. Effective August 3, 2026, plans and issuers must provide the QPA and related information with an initial payment or notice of denial even when the provider’s billed amount, rather than the QPA, is used to calculate participant cost sharing. The

disclosures must also include the legal business name of the selfinsured plan or issuer, the plan sponsor’s legal business name, and the plan’s or issuer’s federal IDR registration number once assigned. The Final Rule also requires plans and issuers to use specified claim

adjustment reason codes (“CARCs”) and remittance advice remark codes (“RARCs”) on paper and electronic remittance advice sent to noncontracted entities. Under subsequent agency guidance, plans and issuers must use the specified RARCs for items and services

furnished on or after January 1, 2027.

Portal-based negotiation and eligibility review. Once the necessary portal functionality is available, parties will submit open negotiation notices, responses, and supporting documentation through the federal IDR portal. The receiving party must respond by the 15th

business day of the 30-business-day negotiation period. A certified IDR entity generally must determine eligibility within five business days after its final selection. These requirements will apply to disputes with open negotiation periods beginning 90 days after the agencies

announce that the supporting functionality is available.

Batching and bundled arrangements. The Final Rule permits batching when qualified IDR items or services involve a single patient encounter billed on the same claim form, the same or comparable service codes, or specified anesthesiology, radiology, pathology,

and laboratory services within the same Category I CPT code range identified in agency guidance. A batch may contain no more than 50 qualified IDR items or services, and the cooling-off period for batched disputes decreases from 90 calendar days to 30 business days. The Final Rule separately defines a bundled payment arrangement,

which may be submitted as a single payment determination and is not generally subject to the batching requirements. The agencies have announced that the revised batching provisions will apply to disputes with open negotiation periods beginning on or after

November 1, 2026.

Lower administrative fee. The nonrefundable administrative fee decreased from $115 to $15 per party for disputes initiated on or after June 11, 2026. Beginning August 3, 2026, a party that does not timely pay the administrative fee or, for an eligible dispute, the certified IDR entity fee will not have its offer considered and will remain liable for

the unpaid fee.

▷ Federal IDR Registry. Self-insured plans, issuers, and Federal Employees Health Benefits Program carriers subject to federal IDR will be required to register and obtain a federal IDR number. Fully insured group plans will not register separately from their issuers.

Registration will be due by the later of 90 business days after the agencies announce that the registry is available or the date the plan or coverage becomes subject to federal IDR. A TPA may register for a self-insured plan, but the plan remains responsible for compliance.

Registration information must be updated within 30 calendar days after a change and confirmed annually during the fourth quarter.

Employer Impact

Federal IDR activity has substantially outpaced the agencies’ projections. Although the agencies initially estimated that approximately 22,000 disputes would be initiated during the first year of implementation, CMS reports that more than 6.3 million disputes were initiated between April, 15, 2022, and May 31, 2026. This continued growth highlights the potential financial and administrative significance of the federal IDR process for employers sponsoring self-insured plans. In light of the Final Rule, plan sponsors can begin by confirming that their TPAs have implemented the disclosure requirements effective as of August 3, 2026, and are preparing for the November 1, 2026 batching changes and

January 1, 2027 RARC requirements. Other near-term priorities include assigning responsibility for federal IDR registration, gathering the required plan-specific information, and reviewing the plan’s QPA methodology before the current enforcement relief expires on October 1, 2026.

Administrative services agreements also warrant review to address IDR notices, payment authority, fees, reporting, registration, and responsibility for missed deadlines or inaccurate submissions.

Conclusion

Employers sponsoring self-insured plans should coordinate with their TPAs to implement the Final Rule’s phased requirements, prepare for registration and portal changes, and establish regular oversight of IDR activity. Because delegation to a TPA does not eliminate the plan’s compliance obligations, continued monitoring of agency guidance and the pending TMA III litigation remains important.

For more information regarding the No Surprises Act, please contact Mike Holley, Vice President of Life & Health for Dimond Bros Insurance, at mike.holley@dimondbros.com

The content of this article is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice. TRUE Network. All Rights Reserved.

For generations, the Eaton & Schultz Insurance Group has been a trusted presence in Wilmington, IL.  An office built on relationships, community commitment, and a deep belief in doing right by every client who walked through the door. As Dimond Bros. continues to grow our footprint and strengthen our service across Illinois, we are proud to welcome this respected agency, its history, and its people into our organization.

Since 1994, the agency was led by Dan Eaton and his business partner, David Schultz, who shared a commitment to client service which helped build the agency’s strong reputation.  Their stewardship and team reflect decades of hard work, trust, and community connection; values that align perfectly with Dimond Bros.’s mission.

As part of this partnership, we are thrilled to welcome the Eaton & Schultz Insurance Group staff, who bring experience, heart, and a strong commitment to their clients:

•             Dan Eaton, Sales Executive

•             Mel Gathright, Sales Executive

•             Dawn Daniels, Account Executive

•             Denise Blain, Account Executive

•             Jeanette Garner, Account Executive

Their expertise strengthens us and enhances the service we provide across the region. The Eaton & Schultz Insurance Group will continue serving clients at their current office location:

382 W Baltimore Street, Wilmington, IL 60481.

We are honored to carry forward the Eaton & Schultz Insurance Group’s legacy and excited for the future we will build together. With this talented team joining Dimond Bros., we strengthen our commitment to service, local relationships, and the values that have guided both organizations for decades.

Renters Insurance for College Students

When your child leaves for college, it’s a period of profound change that can be a challenging adjustment. Many moving parts and checklists must be completed for this new life experience. One item you should add to your list is speaking with your insurance provider to ensure your student still has coverage while they are away.

Understanding How Homeowners Insurance Extends to Your Student

Fortunately, most homeowners insurance policies will extend to your student’s belongings while living on campus. Some insurance providers may have a list of requirements to qualify for coverage. These criteria may state that your child must be a full-time student, live on campus, be under the age of 24 and be a relative of the insured on the homeowners policy. However, even if your homeowners insurance policy extends to your student, the coverage limits may not be enough if your student has high-value items, such as gaming devices, computers and other electronics.

Homeowners insurance also may not extend its coverage to your student if they live in a house or apartment off campus. Instead, consider helping them obtain a renters policy. A specified renters insurance policy can provide robust coverage for personal belongings, as well as liability protections and additional living expenses coverage.

Renters insurance typically includes the following three coverages:

1. Personal possessions coverage can help protect your student’s belongings, such as furniture, electronic devices and other possessions, against covered perils such as fire, theft and vandalism. This coverage can help cover the cost of replacing or repairing them up to the policy’s limits; however, as noted previously, particularly expensive items such as laptops and jewelry may require additional insurance to be covered adequately. Talk to your agent about any high-value property.
2. Liability protection coverage can help cover lawsuits for bodily injury or property damage for which your student is responsible.
3. Additional living expenses coverage can help pay hotel and food bills if your student’s residence becomes uninhabitable due to a covered event.

Value of Renters Insurance

Renters insurance is a valuable and affordable investment for college students. Renters insurance is a relatively inexpensive coverage with some premiums as low as $10 a month. The payments will typically be low, especially compared to what it would cost to replace expensive items out of pocket. In this exciting phase of life, renters insurance grants peace of mind, ensuring students can focus more on their studies and less on the burden of unexpected financial setbacks.

Contact Your Agent Today

Review your homeowners coverage with your agent to understand how coverage may extend to your college student. Your agent can help you understand what is and isn’t covered, coverage limits and potential gaps that may necessitate renters insurance.

This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.