FOR AGENTS AND BROKERS

Agent & Broker Field Guide

COMMERCIAL InsuRAnCE

Table of Contents

About Liberty Mutual Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Commercial Insurance Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Business Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Small Business Commercial Insurance . . . . . . . . . . . . . . . . . . . . . 6

Midsized Commercial Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . 7

National Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

National Accounts Casualty and Major Accounts . . . . . . . . . . . . 10

Helmsman Management Services . . . . . . . . . . . . . . . . . . . . . . . 12

National Accounts Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Commercial Insurance Specialty . . . . . . . . . . . . . . . . . . . . . . . . . 16

Multinational . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Excess Casualty . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Group Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Claims . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Risk Control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Liberty Mutual Insurance is ranked

among the top three brands most

Liberty Mutual Insurance is ranked

among the top three brands most

likely to be recommended by our

agents and brokers across core

lines.

About Liberty Mutual Insurance

Financial Strength and Stability■■ Ranked 81st on the Fortune 100 list of largest U .S . corporations*■■ A global carrier with a presence in 30 countries around the world■■ $120 billion in consolidated assets; $101 .5 billion in consolidated

liabilities as of December 31, 2012■■ $37 billion in annual consolidated revenue as of December 31, 2012■■ Fourth-largest Commercial Lines insurer, with $10 .4B in GWP*

*Based on 2012 revenue

1

Liberty Mutual Insurance

Diversified Global Insurer

revenue: $37 billion

50,000 employees in 900 offices worldwide

ratingSA .M . Best . . . . . . . . . . . . . . . . . . . aMoody’s . . . . . . . . . . . . . . . . . . . a2Standard & Poor’s . . . . . . . . . . . a-

Commercial Insurance

Global Specialty

Personal Insurance

Liberty International

Placing your accounts with Liberty Mutual Insurance has never been easier . You can write everything from a small commercial policy to a large multinational account and anything in between . We serve the entire market, supporting small, midsized, and large businesses across all lines .

Working with a single point of contact, you can easily access everything we have to offer, including:

■✔ Broad multiline coverage for domestic and international business■✔ Flexible programs and financial options■✔ Direct access to our regionally based and specialty Underwriters■✔ Focused expertise by market, line of business, and industry■✔ Superior service and hands-on support

We are committed to helping our agents and brokers grow their business . You’ll have easy access to the full depth and breadth of products and services offered by Liberty Mutual Insurance . From Account Management and Claims to Underwriting and Risk Control, our organization is aligned to provide high-quality, responsive service to both you and your clients .

2

Commercial Insurance Overview

Serving the entire Market From small and midsized accounts to large businesses, Commercial Insurance serves the entire market

a Single contact Your Territory Manager or Account Executive will help you access everything Liberty Mutual Insurance has to offer

Rewards and Benefits One compensation plan and loyalty program recognizes your entire Commercial Insurance book of business

local Presence Regionally based operations and local decision-making authority get you the answers you need when you need them

Focused expertise Deep expertise and experience to deliver tailored products and services that meet the unique needs of your customers

A Single Unified Brand Market leadership, financial strength, and a culture of responsibility

3

What you can exPect

Serving small and midsized accounts with fewer than 1,000 employees

Business Insurance provides broad and competitive products, industry focus, and a local presence to meet the needs of small and midsized accounts . With regionally based operations and local decision-making authority, we provide all lines solutions with the ability to customize based on the unique needs of your clients .

advantages■✔ Simplified access to broad geographies, account sizes, and service offerings

■✔ One primary contact representing our full spectrum of Commercial Insurance products

■✔ Regional presence supported by local decision-making authority■✔ Unified compensation structure■✔ Broad, regional appetite and product offerings■✔ Ease of doing business with eCLIQ, our agent interface system

Products

■■ Business Interruption and Extra Expense

■■ Commercial Auto■■ Commercial Series■■ Crime■■ Equipment Breakdown■■ General Liability

■■ Global Concierge■■ Inland Marine■■ Package SolutionTM

■■ Property■■ Umbrella■■ Workers Compensation

4

Business Insurance

5

Package ProductS

commercial Series■■ Commercial Protector® (BOP) — Designed for small business

accounts with receipts up to $8 .5 million per location; Commercial Protector bundles Property and Liability coverages in a single policy

■■ Custom Protector® — Designed for small to midsized businesses with receipts up to $15 million per location; Custom Protector bundles customized industry-specific Property and Liability coverages in a single policy

■■ Comprehensive Business Package (CBP) — Designed for more complex small accounts; with the Comprehensive Business Package, Property and Liability Extension Endorsements are included automatically and more than 200 endorsement options are available

Package SolutionTM

■■ Packaged product solution that combines a commercial property coverage form with either General Liability, Inland Marine, and/or Crime coverage

rM SelectTM

■■ Flexible, comprehensive all-risk commercial property policy that combines Property Damage, Business Interruption, and extra expense in one easy-to-read form

appetite*■■ Building Maintenance■■ Construction■■ Financial Institutions■■ Healthcare■■ Hospitality■■ Legal Services

■■ Manufacturing■■ Real Estate■■ Restaurants■■ Retail■■ Wholesale

* Local Underwriters may have specialized experience in a variety of niche industries including churches, farms, golf courses, logging, schools, and many more .

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Serving accounts with up to 50 employees

What We’re WritingHere’s a sample of some industries we do business with:

■■ Agricultural Services■■ Automotive Dealers■■ Auto Repair, Servicing, and

Parking■■ Business Services■■ Durable and Nondurable

Goods■■ Engineering Services■■ Farms■■ Florists■■ Furniture/Furnishings■■ General Building and

Construction■■ Grocery/Food Stores

■■ Health Services■■ Legal Services■■ Machine and Equipment

Shops■■ Membership/Religious

Organizations■■ Motor Freight Transportation■■ Personal Services■■ Real Estate Lessors■■ Repair Shops■■ Restaurants■■ Retail Establishments■■ Service Providers■■ Specialty Trades

in-force Premium by industry for Small accounts

SMall buSineSS coMMercial inSurance

Construction23%

Transportation,Communication,

Utilities4%

Agriculture3%

Manufacturing7%

Restaurants4%

Trade16%

Finance & RE11%

Services21%

Other11%

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Serving accounts with 50 to 999 employees

What We’re WritingHere’s a sample of some industries we do business with:

■■ Building Component Manufacturers

■■ Building Maintenance Services

■■ Casual Dining Establishments■■ Commercial Equipment

Companies■■ Electrical Contractors■■ Flexible Packaging Industry■■ Food Services Manufacturers■■ Grocery Stores■■ Hotel Management Companies■■ Industrial Suppliers

■■ Lighting Equipment Companies

■■ Mattress Companies■■ Movie Theaters■■ Nonresidential Building

Operators■■ Real Estate Agents and

Managers■■ Telecommunications

Companies■■ Warehouse and Storage

Companies

in-force Premium by industry for Midsized accounts

MidSized coMMercial inSurance

Construction16%

Transportation,Communication,

Utilities8%

Energy2%

Healthcare4%

Other6%

Restaurants4%

Finance & RE7%

Manufacturing22%

Services17%

Trade14%

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Serving large and specialized businesses who have complex risk management challenges

National Insurance builds customized programs based on a client’s unique risk situation. From flexible rating plans and collateral options to aggressive claims management and risk control, everything we do is designed to lower the total cost of risk .

advantages■✔ Account Executives to quarterback large and complex relationships

■✔ Regional Underwriters with decision-making authority■✔ Specialized service teams to support your largest and most important clients

■✔ Claims teams committed to communicating frequently and delivering superior outcomes and results

■✔ Risk Control Services focused on lowering your clients’ total cost of risk

Products■■ Commercial Auto■■ Excess Liability■■ General Liability■■ Global Concierge■■ Home Foreign/Master Controlled Programs■■ Property (traditional, shared, and layered)

– Equipment Breakdown

– Inland Marine■■ Third-party Administration through Helmsman Management Services■■ Umbrella (supported and unsupported)■■ Workers Compensation■■ Wrap-ups

national Insurance

9

custom Solutions for your Most important accountsYour largest and most important clients require a sophisticated account team able to develop and coordinate overall risk management strategies . Our experienced Service Managers, Underwriters, Risk Control Specialists, and Account Executives take a consultative approach and are committed to offering smart and responsive solutions .

national insurance in-force Premium by industry

Services23%

Wholesale5%

Transportation9%

Other8%

Manufacturing16%

Finance9%

Retail9%

Construction21%

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Serving casualty accounts with more than 1,000 employees

advantages■✔ Regional Account Executives and Underwriters with decision-making authority

■✔ Flexible financial programs and collateral options that consider your client’s willingness to assume risk

■✔ Dedicated major account Underwriters and service teams for accounts with more than 20,000 employees

■✔ Hands-on service tailored to large accounts■✔ Risk Control Services that help lower your clients’ total cost of risk■✔ RISKTRAC®, our advanced risk management information system to track, manage, and report on claims

What We’re WritingWith a broad and diverse appetite, our Underwriters look at each account based on its unique risk characteristics . Below is a list of industries for which we have written accounts:

■■ Communications■■ Energy■■ Healthcare■■ Hospitality■■ Manufacturing

– Chemicals – Food and Products – Industrial Machinery – Lumber and Wood Products – Metals – Paper and Products – Printing and Publishing – Rubber and Plastics – Stone, Clay, Glass, and Concrete – Transportation Equipment

■■ Real Estate

■■ Restaurants■■ Retail Trade

– Apparel and Accessory Stores – Food Stores

■■ Services – Amusements and Recreation – Educational Services – Health Services – Holding and Other Investments

■■ Transportation – Local, Suburban Transit – Motor Freight – Services

■■ Warehousing■■ Wholesale Trade

national Accounts Casualty and Major Accounts

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national accounts casualty and Major accounts in-force Premium by industry

Manufacturing23%

Wholesale6%

Construction5%

Hospitality3%

FinancialServices

7%

Other6%

Education2%

Transportation,Communication,

Utilites13%

Retail11%

Healthcare6%

Business Services6%

Other Services12%

A third-party administrator (TPA) committed to providing Workers Compensation and Liability Claims, Managed Care, and Risk Control Services to accounts with 1,000+ employees

advantages ■✔ Sophisticated claims organization that combines superior people, data analytics, and innovative tools to deliver better outcomes

■✔ Integrated managed care services■✔ Expertise that comes from managing more than $5 billion in losses■✔ 500+ Risk Control Specialists and Risk Engineers■✔ Approved by ACE, Arch, AIG, XL, QBE, Old Republic, Safety National, Travelers, and Zurich

Helmsman collaborates with clients to help lower their total cost of risk . As a wholly owned subsidiary of Liberty Mutual Insurance, we offer the strength and innovative resources of a carrier, while providing the flexibility of an independent TPA.

better Workers compensation outcomesHelmsman comes with advantages other TPAs can’t match . Our predictive models give our claim handlers greater insight to help resolve cases quickly and fairly and with the best outcome for injured workers. Your clients benefit from Helmsman’s sophisticated medical cost containment programs while enjoying flexibility with nurse case management and legal counsel .

Helmsman Management services

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Proactive liability claims ManagementWe assess each liability claim based on its complexity and the potential impact on your client’s operation and reputation .

■■ Rapid response to small claims ■■ Focused expertise for complex claims

Our model, which includes options for dedicated units or centralized teams, leads to less litigation, faster closure rates, and a lower total cost of risk .

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Applying Superior Resources for Managed Care

Medical director Services $3,400 average savings/case

Medical case Management 15% average reduction in claims severity

utilization Management $2,000 average savings/claim

Pharmacy Benefit ManagementPharmacy costs as a percentage of medical costs run 4% below industry average

chronic Pain Program$1,000 per month average savings for individuals who complete the program

PPo network Services $220 million in annual savings (18 .2% discount)

Offering traditional and shared and layered property, equipment breakdown, and inland marine

advantages■✔ Writing property accounts with greater than $150M total insured value (TIV) for all locations or $50M TIV for a single location

■✔ Large in-house capacity with $500M policy limits for ground-up accounts; proprietary forms on admitted paper

■✔ Dedicated property and equipment breakdown Underwriters with decision-making authority

■✔ Experienced and certified in-house Risk Engineers■✔ Well-regarded Claims Specialists; 98% of claimants would recommend us

What We’re WritingWith a broad and diverse appetite, our Underwriters look at each account based on its unique risk characteristics . Below is a list of industries for which we have written accounts:

■■ Construction

– General Contractors

– Specialty Trade Contractors

■■ Hospitality■■ Manufacturing

– Food and Products

– Industrial Machinery

– Metals

– Paper and Products

– Printing and Publishing

– Rubber and Plastics

– Stone, Clay, Glass, and Concrete

– Transportation Equipment

■■ Real Estate■■ Retail Trade■■ Services

– Business Services

– Educational Services

– Engineering, Accounting, Research

– Health Services

– Holding and Other Investments

– Security and Commodity Brokers

■■ Wholesale Trade

national Accounts Property

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national accounts Property in-force Premium by industry

15

Financial Services30%

Wholesale6%

Transportation,Communication,

Utility3%

Other3%

Manufacturing21%

Retail12%

Services25%

Multinational Coverages and services for the foreign exposures of US-based companies

advantages■✔ Master Controlled Programs for General Liability and Property■✔ Ability to issue local policies in 150+ countries/territories■✔ Local network partners for Claims and Risk Control Services■✔ Underwriters with the experience to seamlessly coordinate global or multinational programs

■✔ Internationally respected brand

Products■■ Excess DIC/DILL Auto■■ Foreign Voluntary Workers Compensation■■ Global Concierge™ Foreign Package Policy■■ Property■■ Stand-alone Foreign Liability■■ Travel Assistance Program■■ Worldwide Master Controlled Programs■■ Worldwide Umbrella Programs

appetite■■ Finance■■ Hospitality■■ Manufacturing■■ Real Estate■■ Restaurants■■ Retail■■ Services■■ Wholesale Trade

Commercial Insurance specialty

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exceSS caSualtyExtra protection in the form of additional coverage and limits

advantages■✔ Dedicated Excess Casualty Underwriters■✔ High attaching Excess Liability with up to $50M in capacity■✔ Lead Umbrella with up to $35M in capacity■✔ Excess Casualty Claims Specialists■✔ Service-driven with quick turnaround on quote requests and policy issuance

appetite■■ Commercial Real Estate■■ Condominiums■■ Country Clubs/Golf Courses■■ Cultural Institutions■■ Financial Institutions■■ Hospitality■■ Law Firms (excluding Professional)■■ Light/Medium Manufacturing■■ Office Buildings■■ Printers/Publishers■■ Property Managers■■ Restaurants■■ Retail Trade■■ Sales & Service Organizations■■ Wholesale Distribution

17

energyOffering primary Auto, General Liability, and Workers Compensation for energy risks

advantages■✔ Dedicated energy Underwriters with decision-making authority■✔ Multiline products including General Liability, Property, Auto, and International Exposures

■✔ Dedicated energy Claims and Service teams located in the field■✔ Flexible financial programs that consider your client’s risk tolerance■✔ Industry-leading risk control and risk engineering

appetiteDistribution

■■ Natural Gas Processing■■ Pipelines■■ Propane Distribution

Oil & Gas■■ Ancillary Oil Field Services■■ Drilling Contractors■■ Geophysical Engineering & Consulting■■ Instrument Logging or Survey Work■■ Manufacturer/Distributor of Oil Field Equipment■■ Oil Field Tool & Equipment Rental■■ Oil & Gas Well Service Contractors■■ Oil or Gas Lease Operators

Power & Utility■■ Electric Cooperatives■■ Gas & Electric Utilities■■ Independent Power Producers■■ Renewable Energy■■ Utility Contractors■■ Water & Sewer Utilities

Minimum written account premium of $150,000

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conStructionDedicated underwriting team serving the unique risk management needs of the construction industry

advantages■✔ Offering primary Auto, General Liability, and Workers Compensation■✔ Underwriters located in regional offices who exclusively handle construction risks

■✔ Leadership position in construction wrap-up market■✔ Specialized claims handling units, including construction defect

Products*■■ Commercial Auto■■ Construction Wrap-ups

■■ General Liability■■ Workers Compensation

appetite■■ Bridges, Tunnels, and Elevated Highways■■ General Contractors■■ Heavy Construction■■ Highway and Street Construction■■ Specialty Trade Contractors■■ Wrap-ups (owner controlled and contractor controlled)

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* Surety bonds, construction bonds, and license and permit bonds available through Liberty Mutual Surety .

PrograMSWith more than a dozen programs in our portfolio, we serve a variety of markets with a flexible approach and innovative solutions

advantages■✔ A specialty unit dedicated to developing and maintaining successful program business since 1983

■✔ Ability to work with large or small programs■✔ Underwriting in-house or outsourced to the Program Administrator; carrier claims department; or a TPA, carrier IT systems, or the Program Administrator’s systems

■✔ Strong brand that provides all lines and all states capability without capacity restrictions

■✔ Experienced program specialists who have worked for and founded Program Administrators

new Program appetite■■ New programs:

– Minimum initial program size of $3M

– Profitable loss history

– Admitted programs

– Established Program Administrator

The following open programs may be accessed through our Program Administrator partners:

■■ Insurance Agents E&O■■ Nonprofit■■ Restaurants with Pizza Delivery■■ Self-storage■■ Sports and Fitness

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Serving large, complex employers with innovative Life Insurance and Absence Management solutions

Products■■ Group Life and Accidental Death & Dismemberment■■ Integrated Disability Management■■ Leave Services■■ Long-term Disability■■ Short-term Disability

advantages■■ Single-source, integrated solutions for Life, Disability, Leave

Administration, and Workers Compensation to improve productivity, provide income protection, and lower the overall cost of benefits

■■ Tailored solutions and flexible product and plan design to meet the needs of large, complex employers

■■ Comprehensive Absence Management services including Family and Medical Leave Act, Extended Leave Administration, and Americans with Disabilities Act compliance support services

■■ Experienced, field based sales and customer service teams to provide you and your customers with ongoing support

■■ Personalized case management with direct access to dedicated case managers

■■ Industry leading clinical resources — including full time Medical Directors, Consulting Physicians, and Nurse Case Managers — to improve outcomes

■■ Flexible, web-based and mobile tools designed to provide immediate access to critical payroll, absence, and life information for employers, supervisors, and employees

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Group Benefits

22

What We’re WritingOur underwriting philosophy focuses on value and long-term stability .

Group Benefits Revenue by Industry

We strive for sustained growth across our key product lines .

lives under Management

Finance, Insurance,Real Estate

23%

Transportation,Communication,

Utility8%

Other6%

Manufacturing17%

Retail Trade16%

Services30%

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

2008 2009 2010 2011 2012

Life DisabilityLeave

23

services

claiMS

Combining superior people, processes, and resources to consistently deliver the best possible outcome on every claim we manage

advantages■✔ 5,000 professionals serving multiple customer segments ■✔ Dedicated Workers Compensation, Liability, and Property claims units

■✔ Advanced segmentation model with low-, medium-, and high-severity claims management units

■✔ Local presence and local authority supported by national scale and expertise

■✔ 2 .3 million claims managed and over $9 billion in losses paid annually

better outcomesBetter outcomes are the direct result of how well a claim is handled . We combine great people, powerful tools, and expertise to deliver a superior start-to-finish claims experience. We aggressively manage losses and maintain rigorous service standards . That means industry best practices, well defined processes, and consistent, high quality claims handling .

a Superior claims experienceThe longer a claim is open, the more it is likely to cost . Proactive communications with you and your policyholders are critical to resolving claims quickly and responsibly . That’s why we:

■■ Return phone calls within four business hours■■ Answer emails within one business day■■ Establish contact with key parties within one business day of

assigning a claim■■ Complete investigations generally within 14 days for standard

Workers Compensation claims and 30 days for standard Liability claims

■■ Provide reserve and presettlement change notifications

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the best PeopleWe help resolve more than $9 billion in claims annually . Our specialized structure, experienced staff, and high service standards allow us to know more about a claim, manage costs better, and resolve issues faster; We offer:

■■ Specialized liability claims units■■ Field and special investigation units with nearly 200 full-time staff■■ Dedicated data analytics groups (Workers Compensation, Auto/

General Liability, Legal)■■ Medical and legal bill review■■ 10 Regional Medical Directors and 300+ Nurse Case Managers

25

riSk controlHelping your clients protect their people, their property, and their assets with advanced Risk Control Services

advantages■✔ Expertise to help identify exposures and lower total cost of risk■✔ Services are available online, over the phone, or in person■✔ Vast technical resources, industry expertise, and certified Risk Control Specialists

■✔ World-class research institute■✔ Advanced safety training seminars and webinars

online with liberty Mutual Safetynet™This powerful online tool provides access to the latest safety resources, tools, and training materials to help your clients improve workplace safety, reduce their total cost of risk, and stay compliant with federal safety standards . It includes:

■■ The latest safety research and industry analysis■■ OSHA compliance tools■■ Safety self-assessment tools and customizable programs to

address deficiencies■■ Loss Free Rx,™ a bilingual Risk Management library that includes

a job description builder, job hazard analysis, and trackers for material safety data sheets, training, and certificates of insurance

■■ Training

– The Safety and Health Catalog, a collection of more than 300 safety and health videos, employee handouts, and posters

– Comprehensive collection of self-directed online courses

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risk control consulting center Email us or give us a call to answer your safety-related questions, find the right safety-tool or resource, or see how your risk control efforts are impacting your bottom line . Our staff of experienced industry professionals, armed with degrees in engineering, safety, or risk control, can help your clients identify exposures and put innovative and practical solutions in place .

on-site consulting Services ■■ On site risk assessments, system analysis, site and plan reviews,

and fire protection acceptance testing ■■ Open forums to share issues and solutions with other business

representatives ■■ Technical expertise, guidance, and additional resources ■■ Training

– Several levels of training to suit the novice or experienced person responsible for safety in any organization

– CEU-qualified classroom seminars and webinars

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This brochure is a general description of coverage or services offered . See your policy or service contract for actual terms and conditions .

Insurance underwritten by Liberty Mutual Insurance Co., or its affiliates or subsidiaries.©2013 Liberty Mutual Insurance, 175 Berkeley Street, Boston, MA 02116 . CI1093 10/13

175 BERKELEY STREET | BOSTON, MASSACHUSETTS 02116 | (617) 357-9500

www .libertymutualgroup .com/business