P&C Underwriting Assistant Gena Glasser
we have something
need!
Griffin Underwriting Services enables retail insurance agents and brokers to compete and win on hard-to-place risks. As a Northwest family-owned MGA since 1928, we are available when and where you need us: in person, over the phone, or online. Griffin continues to adapt and expand our product offerings based on your needs so that we can always provide you with a solution. Our exceptional products and service, competitive prices, and rewarding commission levels means that we have something you need.
P: 866.562.8095 I F: 425.453.8696 submissions@gogus.com Serving over 2,200 agents throughout Washington and Oregon, and a proud supporter of IIABO.
2
The Oregon Agent • Summer 2015
Independent agents throughout your area Count on EMC® for a number of reasons. • 100-plus years of commercial lines experience • Expert loss control services. • Responsive service delivered by a fully-staffed branch office right in your own back yard. Let us show you how EMC Insurance Companies can work for you.
RACHEL KUNTZ Commercial Underwriter EMC Bismarck Branch
PUT EMC TO WORK FOR YOU
AND YOUR CLIENTS.
YOUR NEAREST BRANCH OFFICE:
www.emcins.com
Bismarck Branch: 800.472.2117 | Home Office: Des Moines, IA
© Copyright Employers Mutual Casualty Company 2015. All rights reserved.
Summer 2015 • The Oregon Agent
3
SUMMER 2015
IIABO Office 5550 SW Macadam Suite 305 Portland, OR 97239 Phone: 503-274-4000 Fax: 503-274-0062 Toll Free: 866-774-4226
IIABO Staff Directory Executive Vice President Jim Perucca jimp@insureoregon.org
Sr. Vice President Marketing & Communications Barb Demings barbd@insureoregon.org Vice President Education & Finance Tyra Dressel tyra@insureoregon.org Asst. Vice President Agency Products & Services Abby Kahl abbyk@insureoregon.org
INSIDE THIS ISSUE: 6
Letter from the President, Ed Davis
8
IIABO 2014 - 2015 Leadership
10 18 Habits to Make 2015 Your Most Positive Year Yet 15 GET CONNECTED: IIABO 87th Annual Convention 16 Convention Schedule 17 Convention Registration
IIABO Lobbyist Roger Beyer roger@rwbeyer.com
18 Convention Highlight: Double Your Sales In the Next 12 Months 18 Convention Highlight: Getting Great at Communications and Connecting With People
For more information on advertising, contact Jim Aitkins Blue Water Publishers 22727 - 161st Avenue SE Monroe, WA 98272 360-805-6474 fax: 360-805-6475 jima@bluewaterpublishers.com The Oregon Agent is the official magazine of the Independent Insurance Agents and Brokers of Oregon and is published four times yearly. IIABO does not necessarily endorse any of the companies advertising in this publication or the views of its writers.
19 The Commoditization of P & C Insurance 22 Is Your Agency Procedures Manual “E & O Safe”? 24 22 Reasons Why Sales People Don’t Make More Sales 26 Newly Passed Non-Resident Licensing Reform 28 There’s No Place Like Home for an E & O Claim
THANK YOU ADVERTISERS:
4
Anderson and Murison
12
Mutual of Enumclaw
14
BCE Consulting
30
Preferred Property Program
27
Burns & Wilcox
13
Quirk & Co.
30
Continental Western Group
21
RT Specialty
23
EMC Insurance
3
Risk Placement Services
31
Grange Inc.
5
Ron Rothert Insurance Services
29
Griffin Underwriting
2
WSRB
29
Imperial PFS
25
Liberty Mutual
32
The Oregon Agent • Summer 2015
Western National Ins Group
7
Summer 2015 • The Oregon Agent
5
FROM THE PRESIDENT
Ed Davis
A
pril 23, 2015 five of us represented Oregon Independent Agents at the IIABA’s annual Legislative Conference in Washington D.C. This is the largest and most impressive event conducted by any association and we saw over 1,200 agents in attendance. The goal of the Legislative Conference is to demonstrate through these numbers the extensive grassroots strength of the Big I. We visited the offices of each of our Representatives and both Senators. Among other things, we thanked them for the passage of NARAB (the National Association of Registered Agents and Brokers—multistate licensing), the TRIA extension and reminded them of the importance and success of state regulation. Attending with me this year were Trish Fulwiler, Brian Wilbur, John Timm and Jim Perucca. We are now looking ahead to the 87th Annual Convention “GET CONNECTED” August 23 - 25 at the Eagle Crest Resort, Redmond, Oregon. This venue (which we moved to last year) has made the convention much more affordable while, at the same time providing a true resort atmosphere. As always, the IIABO convention is about value and bringing agents information and training they won’t find any place else. This year our
guest workshop leader is John Chapin. John is an accomplished sales trainer and has spoken before several other of our state associations. He writes a monthly sales article for over 100 insurance publications and has done training at many insurance companies. John will be conducting two workshops at the convention, “Double Your Sales in the Next 12 Months” and “Getting Great at Communicating and Connecting With People”. The first workshop will help you create a specific, personal plan to increase your sales. The second workshop will enable you to come across as caring and credible, enabling you to effectively build trust and rapport. So, make plans to attend! Agent full registration includes all meals, two hosted receptions and an opportunity to win the $500 Grand Prize! Additional attendees from the same agency receive a full registration for only $49 and play golf for free. Bring the agency for team building and education. Bring the family for a central Oregon get-away. Kids are welcome at all events. A registration form is included in this issue of the Oregon Agent. I’ll look forward to seeing you in August. Ed Davis Maps Insurance, Salem (503) 779-1851
Your association staff: Executive VP Sr. Vice President Vice President Asst. Vice President Toll Free Numbers: 6
The Oregon Agent • Summer 2015
Jim Perucca Barb Demings Tyra Dressel Abby Kahl 1-866-77-IIABO or 1-866-774-4226
503-274-0583 503-274-4000 ext. 26 503-274-4000 ext. 31 503-274-4000 ext. 23
jimp@insureoregon.org barbd@insureoregon.org tyra@insureoregon.org abbyk@insureoregon.org
We can help with both. With friendly underwriters who listen, and a full complement of products to serve your small-to-mid-size commercial insurance needs (including enhanced BOP, surety, and packaged coverages), Western National is your one-stop shop for getting business done. The proof is in the partnership.
Summer 2015 • The Oregon Agent
7
2014 - 2015 IIABO LEADERSHIP The IIABO Board of Directors is a diverse group of insurance professionals representing the varied interests of agents throughout the State of Oregon. We would like you to learn more about these volunteer leaders and the years of experience they bring to the association.
8
Ed Davis President, IIABO Maps Insurance Services Salem, Oregon - 49 years
Trish Fulwiler President Elect, IIABO President, J.D. Fulwiler & Co. Portland, Oregon - 24 years
TJ Sullivan Legislative Chair, IIABO Huggins Insurance Services Salem, Oregon - 18 years
Keith Blackerby Finance Chair, IIABO Chief Operating Officer, Bisnett Insurance Offices throughout Oregon - 28 years
Mark Atkinson Board Member President, Atkinson Insurance Group Portland, Oregon - 25 years
Steve Fitzwalter Board Member President, Rogers, Fitzwalter & Powell Portland, Oregon - 40 years
The Oregon Agent • Summer 2015
Kay Hunkapillar First Vice President, IIABO President, Wheatland Ins. Ctr., Inc. Pendleton, Oregon - 46 years
Brian Wilbur National Director, IIABO Owner, Pacific Insurance Partners Forest Grove, Oregon - 21 years
Jim Ginger Board Member President, KPD Insurance, Inc. Springfield, Oregon - 35 years
Gary Githens Board Member Data Breach Specialist Brown & Brown NW Bend/Portland, Oregon - 35 years
Adam Harris Board Member Vice President, LaPorte & Associates, Inc. Portland, Oregon - 18 years
Greg Horner Board Member Commercial Lines Producer, Insurance Partners, LLC Portland, Oregon - 20 years
Joe Hubbard Board Member Managing Partner, The Protectors Insurance Medford, Oregon - 31 years
Marty Kantola Board Member Owner, Chet Hill Insurance Portland, Oregon - 30 years
Debbie Krambeal Board Member President, CAL/OR Insurance Specialists, Inc. Brookings, Oregon - 32 years
Matthew Pidcock Board Member Co-Owner, Valley Insurance LaGrande, Oregon - 17 years
Brett Slater Board Member Chief Operating Officer, Slater & Assoc. Insurance, Inc. Tualatin, Oregon - 26 years
Steve Smelley Board Member Chief Operations Officer, PayneWest Insurance Beaverton, Oregon - 25 years
John Timm Board Member President, Timmco Insurance, Inc. Portland, Oregon - 39 years
Insurance carriers and service providers do not serve on the IIABO board of directors, but support the association as Associate Members, Sponsors and Exhibitors. If you want to learn more about the IIABO, or if you would like to get involved, please contact any of these individuals. If you are not a member, please email Jim Perucca, jimp@ insureoregon.org for information on membership.
Summer 2015 • The Oregon Agent
9
18 Habits to Make 2015
Your Most Positive Year Yet
10
The Oregon Agent • Summer 2015
By John Gordon
M
ost of us start each new year intending to make it a good one. But even when the Universe is helping out by providing things like a growing economy and job security, creating a positive life for yourself is easier said than done. “A Pollyanna outlook just isn’t enough to sustain us through life’s slings and arrows, whether they come in the form of fender benders, annoying colleagues, mortgage payments, a lingering flu bug, or something more serious,” says Jon Gordon, author of the Wall Street Journal bestseller The Energy Bus: 10 Rules to Fuel Your Life, Work, and Team with Positive Energy (Wiley, 2007, ISBN: 978-0-470-10028-8, $23.00, www. jongordon.com ). “It isn’t enough to want a positive attitude. To develop and sustain one throughout adversity and challenges, you have to cultivate habits that lead to resilience and mental toughness.” The best news, says Gordon, is that positivity isn’t just another feel-good buzzword. It has the power to infuse your life with purpose, creativity, accomplishment, and energy. When you live your life with positive energy, he says, you attract positive opportunities and people. Here, Gordon shares 18 real-life positivity tactics you can put into practice throughout 2015—and beyond. Become a selective listener and focus on the positive. You can listen to the cynics and doubters and believe that success is impossible, says Gordon, or you can trust that with faith and an optimistic attitude all things are possible. Yes, this really is a choice you make for yourself every day. Zoom focus. Each day when you wake up in the morning ask, What are the three most important things I need to do today that will help me create the success I desire? Then tune out all the distractions and focus on these actions. “Often, we allow our attention to be captured by each new shiny ball that rolls by, or by each minor fire that needs to be put out, and we end up channeling our time and energy toward tasks with smaller rewards,” Gordon notes. Watch where you’re directing your energy. We all have a finite amount of energy. Don’t waste yours on gossip, energy vampires, issues of the past, negative thoughts, or things you cannot control. “Instead, invest your energy in your purpose, people, and the positive present moment,” Gordon suggests.
Focus on “Get to” vs. “Have to.” Each day, focus on what you get to do, not what you have to do. For instance, think, I get to go to a job that utilizes my talent and strengths and that is full of opportunities, instead of, Ugh—I have to go to work today. “Life is a gift, not an obligation,” Gordon says. “This may seem like an insignificant mental shift, but it will have a noticeable impact on your happiness and satisfaction.” Talk to yourself instead of listening to yourself. We all know what it’s like for our fears, worries, and what-ifs to completely hijack our minds. These negative trains of thought can hold us back, wreck our self-esteem, and impact our health in a very real way. The good news is, you have the power to change the conversation happening inside your head. “Instead of listening to your complaints, fears, and doubts, talk to yourself and feed your mind with the words and encouragement you need to keep moving forward,” Gordon suggests. Choose faith instead of fear. Faith turns adversities and dead-ends into detours to a better outcome than you thought possible, Gordon points out. “That’s not to say you’ll never feel fear— you will,” he comments. “You can use it as a tool to make smart decisions and to manage risk. Just don’t use it as an excuse to quit. Believe that everything happens for a reason and expect good things to come out of challenging experiences.” Don’t chase dollars or success. Decide to make a difference and build meaningful relationships, and success—specifically, lasting, meaningful success— will find you. Take a morning walk of gratitude. Weather permitting, wake up your body and mind by taking what Gordon calls a “Thank-You Walk” each morning. As you walk, challenge yourself to list things you’re grateful for: blessings in your life, events you’re looking forward to that day, and opportunities that have come your way. “Even a five-minute walk around the block will help create a fertile mind ready for success, but if you have the time for a longer stroll, the physical and mental benefits will be even greater. Switch up your portion sizes. Make your first meal the biggest and your last meal the smallest. After all, you need the most fuel at the beginning of the day! “Eat breakfast like a king, lunch like a prince, and dinner like a college kid with a maxed out charge card,” Gordon suggests. Summer 2015 • The Oregon Agent
11
Get more sleep. “You can’t replace sleep with a double latte,” Gordon notes. “When you’re well rested, your brain, body, attitude, and relationships will all operate at higher levels.” Tap into the three greatest success strategies of all: love, serve, and care. “Experience has taught me that these strategies are every bit as valuable as those taught in top business schools,” Gordon states. “Build your life and career around them, and never forget that people and relationships are at the heart of everything we do in every aspect of life. When you love, serve, and care about those around you, you’ll attract greater success, and you’ll stand out in a world where most people don’t love, serve, or care.” Focus on your purpose every day. Remember why you do what you do. Think about your purpose and the legacy you want to leave. Try to distill this idea down as much as possible— perhaps even into one word that’s clear and easy to remember. “We don’t get burned out because of what we do,” Gordon observes. “We get burned out because we forget why we do it.” Remember, there’s no such thing as an overnight success. This is easy to forget in a world that’s increasingly built around instant gratification. (Think overnight shipping, fast food, video streaming, and more.) “While more and more things are available to us the moment we want them, I don’t think personal and professional success will ever be on that list,” Gordon says. “Don’t forget that there’s no substitute for hard work.” Implement the “No Complaining Rule.” Yes, it’s exactly what it sounds like. Complaints are full of negative energy and fail to enhance our lives in any way. They don’t offer strategies, solutions, ideas, or encouragement. “If you are complaining, you’re not leading,” Gordon says.
to place your focus on what’s good in your life—something that, unfortunately, doesn’t always happen naturally!” Smile and laugh more. There’s no need to be stoic and serious at every turn. “In fact, smiles and laughter are natural antidepressants,” Gordon says. “My final piece of advice is to enjoy the ride,” Gordon concludes. “You have only one ride through life, so make the most of it and enjoy it. Sure, there will be stressful situations and challenges you’ll have to overcome in 2015. But those things don’t have to define your year. So, how will you choose to make 2015 more positive?” About the Authors: Jon Gordon’s best-selling books and talks have inspired readers and audiences around the world. His principles have been put to the test by numerous NFL, NBA, and college coaches and teams, Fortune 500 companies, school districts, hospitals, and non-profits. He is the author of the Wall Street Journal bestseller The Energy Bus, The No Complaining Rule, Training Camp, The Shark and the Goldfish, Soup, The Seed, and The Positive Dog; he is also coauthor of One Word That Will Change Your Life. Jon and his tips have been featured on Today, CNN, Fox & Friends, and in numerous magazines and newspapers. His clients include the Atlanta Falcons, Campbell’s Soup, Wells Fargo, State Farm, Novartis, Bayer, and more. He and his training/consulting company are passionate about developing positive leaders, organizations, and teams. To learn more, visit www.jongordon.com.
One Submission – Multiple Markets.SM
Endorsed by IIABA
We Say YES!
Read more books than you did in 2014. The more you feed your mind, the stronger and more agile it grows. The more ideas and viewpoints you consider, the more innovative and empathetic you’ll be. “Focus on reading books that help you learn, that inspire you, and that push you to consider life from new, unexplored angles,” Gordon advises.
Personal Umbrella Specialists for
Don’t seek happiness. Yes, you read that correctly. The truth is, the things we think will make us happy often don’t. “Overall, remember that lasting happiness rarely comes from ‘stuff’ or accolades,” Gordon states. “Instead decide to live with passion and purpose, and happiness will find you.” Do a “positivity assessment exercise” each evening. Gordon suggests completing the following statements, either mentally or in a journal, each night before you go to bed: • I am thankful for __________. • Today I accomplished____________. “Going to bed in a positive mood will improve the quality of your rest,” Gordon observes. “This exercise will also train you 12
The Oregon Agent • Summer 2015
Oregon Producers
On-Line Rate, Quote, Apply and Request Binding 24/7 or Call from 6am to 6pm PST. Umbrella Solutions For 50 years.
(800) 234-6977 x260 A n d e r s o n a n d Mu r i s o n
www.andersonmurison.com
Even the office coffee tastes better with Burns & Wilcox. PERSONAL INSURANCE
Your traditional insurance markets can handle most of your clients’ personal insurance needs, but not all. Even wholesalers have their limits, unless your wholesaler is Burns & Wilcox. As the largest personal insurance wholesaler, our unequaled access to markets means quick solutions for all your hard-to-place risks. Don’t call just any wholesaler. Just call Burns & Wilcox. San Francisco, California | 415.421.4244 toll free 800.759.4855 | fax 415.421.0620 sanfrancisco.burnsandwilcox.com Reno, Nevada | 775.786.6061 toll free 800.249.0119 | fax 775.786.6041 reno.burnsandwilcox.com Salt Lake City, Utah | 801.432.5422 toll free 800.523.1409 | fax 801.944.4893 saltlakecity.burnsandwilcox.com Commercial | Professional | Personal | Brokerage | Binding | Risk Management Services Summer 2015 • The Oregon Agent
13
We stand shoulder to shoulder with our independent agency partners to provide coverage
that really covers.
www.thoughtfulcoverage.com 14
The Oregon Agent • Summer 2015
The Independent Insurance Agents & Brokers of Oregon 87th Annual Convention
Get Connected
August 23 -25, 2015 Eagle Crest Resort Redmond, OR
IIABO 5550 SW Macadam Ave, Ste 305 Portland, Oregon 97239 503.274.4000 Toll Free 866.774.4226 Fax 503.274.0062 ww www.iiabo.org Summer 2015 • The Oregon Agent
15
IIABO 87th Annual Convention & Trade Show Eagle Crest Resort, Redmond, OR August 23 – August 25, 2015
Get Connected Saturday, August 22 1:00p - 4:00p 5:30p - 6:30p 6:30p - 9:00p
Board Meeting River Run Board Reception River Run Board & Past Presidents Dinner (by invitation only) River Run
Sunday, August 23 Golf Tournament Resort Golf Course, Shotgun Scramble Registration Open Convention Center / Foyer “Eaglefest” Convention Center / Golden Eagle Ballroom Buffet Dinner, Golf Awards & Entertainment
1:00p 4:00p 6:00p
Monday, August 24 7:30a – 8:45a 9:00a - 12:00a
12noon – 1:30p 1:45p – 4:45p 4:30p – 6:30p 6:15p 6:45p
Registration Open / Breakfast Convention Center / Foyer & Golden Eagle Room Workshops “Double Your Sales in the Next 12 Months” & “Getting Great at Communicating and Connecting with People” – John Chapin Convention Center / Golden Eagle Ballroom Lunch with Exhibitors / Raffle Convention Center / Foyer & Juniper Hall Ethics – Debbie Brown Convention Center / Golden Eagle Room Cocktail Reception with Exhibitors / Raffle Convention Center / Juniper Hall Raffle Drawings Banquet Convention Center / Golden Eagle Ballroom Exhibitor Drawings, Grand Prize Drawing
Tuesday, August 25 7:30a – 9:00a 9:15a – 12:15a
Champagne Breakfast Convention Center / Golden Eagle Ballroom Law – Debbie Brown Convention Center / Golden Eagle Ballroom Adjourned! Have a safe trip home!
16
The Oregon Agent • Summer 2015
Summer 2015 • The Oregon Agent
17
CONVENTION WORKSHOPS >>
Get Connected Workshops Presented by John Chapin
An award winning sales speaker, author, trainer, and coach, John has over 26 years of extensive sales, customer service, and sales management experience. In addition to being a number one sales rep in three industries, John also authored the 2010 sales book of the year: Sales Encyclopedia. In the insurance field, John currently writes a monthly sales article for over 100 insurance publications, has done training at several insurance companies, and has been speaking for many of the insurance associations nationwide. As a producer, John was the #1 rep for the New England Chapter of the American Express Long-term Care Division. Voted the second best public speaker in Massachusetts and Rhode Island and a member of the National speakers Association, John has delivered hundreds of presentations on sales, customer service, and motivation.
DOUBLE YOUR SALES IN THE NEXT 12 MONTHS Doubling your sales and income will take some work, but it doesn’t have to be as difficult as you might think. This presentation covers key ideas for doubling income in one year. In this presentation, participants will learn: • Four keys to doubling your income – even one of these can make a significant impact • The most effective ways for building business quickly • Ideas that will put you in the top 5% of all salespeople • How to operate at the highest levels possible
• • • •
How to discover and eliminate what’s really holding you back How to always have as many qualified prospects as you need How to spend much more time on your most important tasks How to finally get out of your own way and sell to your potential
GETTING GREAT AT COMMUNICATING AND CONNECTING WITH PEOPLE Top agents have the ability communicate effectively and connect with almost everyone. They come across as caring and credible and are able to build trust and rapport rapidly. Top agents know what to say and when to say it and they are able to hear people well and read between the lines. This program will help agents make a powerful first impression and teach them to more effectively communicate with people. It will also show them how to rapidly build trust and rapport, establish credibility, and successfully connect with others. Course Outline Foundational ideas and principles • The right attitude for success with people • Key people skills First Impressions • The keys to a good first impression 18
The Oregon Agent • Summer 2015
• • •
Rapid rapport and trust building Building credibility Establishing strong communication
Finer Points of First Contact • Subtleties of eye contact that make or break trust almost instantly • Body language made simple • Quick, easy steps for connecting with and communicating with any and all personality types Keeping Communication and Connections Strong • Keeping the momentum after the first meeting • Keys to standing out • Building the relationship • Developing a communication and connection plan • Dealing with challenges, problems and other issues
The Commoditization of P&C Insurance
By Chris Burand
A
n article in the Insurance Journal was titled, “Agents react to Walmart, OverStock in Insurance; We aren’t Dead or Dying, We are Evolving.” The comments presented by agents and experts were clearly heartfelt. Their theme was that P&C, especially all insurance that is not personal auto, is complex when done right. The comments pointed out that many direct writers and these new entities do not explain the complexity. Consumers buying from these entities therefore might not get the coverages and the amount of coverage they truly need. Einstein had a great quote which makes this point well, “Make everything as simple as possible, but not simpler.” Another point they made was that a large portion of consumers are inadequately educated regarding insurance and the proper coverages. This goes without saying but a subtle insinuation or at least an inference can be drawn that these entities are taking advantage of inadequately informed consumers to sell them insurance these consumers think is adequate, but is not. These entities may get away with this practice because the standard of care for these kinds of writers is often less than it is for traditional agents. The standard of care is so low that some courts have ruled the standard of care is nothing more than caveat emptor. The insured will be left holding the bag whereas if they purchased insurance from an independent agent, they would be better informed (and while not stated, the conclusion is clear, the
insured might have a better chance at suing the agent and winning, which is not a bad selling point). I agree with these points. However, most of these points emphasizing how important agents are to clients choosing the right coverage are hypocritical. This hypocritical position is a fact. I am not offering an opinion, but an absolute fact. Hide and deny the fact if you want, but when you put your head in the sand, a prominent body part is made available for a painful whipping. The fact is these opinions are hypocritical because while agents can definitely offer crucial and important education to consumers, in both personal lines and commercial clients, they too often choose to not offer any education, any coverage reviews, nor even review the insureds’ true coverage needs. I have been visiting agencies for 25 years and I have been doing E&O audits for approximately 20 years. My experience is 90%+ of agencies do not use coverage checklists of any kind on a consistent basis. Without a coverage checklist, identifying the customer’s true needs and offering them the coverages they truly need is not possible. My experience is that a majority of agencies go years without reviewing at least some portion of their clients’ exposures. In other words, they do “renew as is” year after year. I have been in agencies where some clients have not had their coverages reviewed in ten or twenty years. Many agencies quote requested coverages or producers only match expiring coverages. A computer can do both these functions Summer 2015 • The Oregon Agent
19
as well or better than a human. Quoting existing coverages is the epitome of commoditization. These are facts and however unpleasant they are, deny them at your risk. To talk about how agents offer such valuable services but then to not actually do the work is hypocritical. Agents and some associations are trying to have it both ways. They want the spread of commoditization to slow or stop, but in the same magazine or the same convention venue, they will have E&O attorneys advising agents to rely on “duty to read” case law and to not advertise the agency is an expert and others advising agents to not spend time on small accounts. It is a fact that one cannot have their cake and eat it too.
annually. In fact, a Utica Mutual study following Hurricane Katrina found that approximately 50% of the E&O claims that occurred would not have occurred had agents used coverage checklists. So it is great to talk about agent advantages, but agents must walk the walk to have value. 2. Customers need an agent’s professional advice. If you really believe customers need your professional advice, do not hide behind E&O defenses like “Duty to Read” your policy. Consumers do not need an agent if they have to read the policy, understand the policy, question the policy, and do all this in a timely manner. That is why they are paying you a commission. They are paying you to do this for them.
Here are some facts to consider: 1. If agents do not think insurance is a commodity and they do not want the public to think of insurance as a commodity, then AGENTS need to put their money where their mouth is and quit treating insurance as a commodity. Rather than quoting requested coverages, explore the insured’s needs and give them a quote for coverages most applicable. Most CSRs do not discuss the complexities of homeowners insurance. Most do not even offer higher liability limits. Higher is not defined as $300,000 or $500,000, although that would be an improvement in many agencies. Higher is defined as higher limits than the insured has requested regardless of what they requested. Producers in personal lines and especially small commercial lines are often no better than CSRs and are often worse. 90% of producers in my experience refuse to use coverage checklists unless forced by management. Insurance is indeed complex. That is why a coverage checklist is so important. Use coverage checklists to determine an insured’s real needs. A properly used coverage checklist is valuable to identifying these complexities and building coverages customized to that one insured’s needs. Customization is required to avoid commoditization. Not only are coverage checklists proven to reduce E&O exposures, but my best clients who use coverage checklists correctly and well always increase sales. The idea that missing one item on a checklist creates an E&O exposure is simply an excuse. This is an excuse to avoid responsibility and any excuse to avoid responsibility is also a reason insurance should be commoditized. Additionally, if only one item is missed on a coverage checklist, that is much better than missing 10 coverages without one. Any attorney that says, “Yes, but we can win if you miss ten because I can show you are a peddler because you miss so much,” is missing the bigger picture. How great is it to win a case based on being dumb and lazy? I cannot imagine half as many E&O claims occurring if clients had their coverages customized and then reviewed 20
The Oregon Agent • Summer 2015
3. The article cited experts saying an online presence was key. I do not disagree but what is an agent going to advertise if they hide behind so much E&O advice such as, “Don’t advertise that you are an expert.” Are agencies going to advertise instead, “Best price for a commodity!”? Step up and advertise your real value and then follow through is my suggestion. If you do not want to be commoditized, only one true alternative exists and that is to become a true professional and then act as a professional for each client. Very few agents have the guts and work ethic to do this which is why this strategy is so great. 4. Quit being lazy. I cannot write how many times I have heard producers say they do not know whether their client has certain coverages because they never verify the coverages when the policy arrives. They do not know the forms because they do not read the forms. They do not understand BI coverage because they will not take a BI class. Recently I have witnessed several instances where producers were too lazy to even get client signatures on applications. Consumers do not need lazy agents. 5. The article cites a PIA study showing 67% of consumers want their agent to contact them at least every six months. This is great news. Why agents so consistently ignore what their clients want is beyond me. My real world E&O audits and agency due diligence for acquisitions shows consistently that agents do not always even communicate beyond perfunctory forms annually. If a client says they want communication every six months and do not receive communication of value even annually, for what do they need the agent? I have no doubt some readers will be upset reading this article, if they’ve gotten this far without turning red. Hypocrites usually get upset when called out. Others will get upset that I am somehow singling them out even when I do not know them. As crazy as that sounds, it happens most times I write an article
like this where someone I do not know thinks I have singled them specifically out. Others will be upset that I am saying all agents take this track when they are actually using checklists, reviewing forms, getting true technical education (versus rote CE courses), etc. That always happens too. No where do I write or believe 100% of agents do this or that. Every time I write about the value of stepping up and being a true professional, I receive disparaging comments from clearly insecure agents and company people. But I also get EVIDENCE, not just comments, from agents that are true professionals regarding how they take advantage of the amateurs. Their customer satisfaction is clearly higher, their sales are greater, their profits are higher, and their E&O exposure is clearly lower. My consulting experience is agents who do not treat insurance as a commodity have average commission per account 10%-30% higher than norms. The PIA study mimics an IIABA study from 15 years ago that showed great opportunities existed then and now for agents that have strong work ethics to become true professionals, to learn coverages and learn to articulate those coverages to clients so customers understand and appreciate the complexity of insurance when it is done right. These studies tell agents what consumers want and agents that listen have much better opportunity than those who
do not. Studies then and now tell agents that consumers want professional agents. They do not want a commodity. I don’t expect to win the hearts and minds of agents and companies turning red reading this. My goal is to explain the situation and hope the best agents and companies realize how great the opportunity is to take advantage of their lesser competitors. (If you’re not sure how to go about becoming a professional but want to realize the opportunities or use a checklist positively, contact me. It is fun to take advantage of amateurs and to provide better coverage to clients.) Chris Burand is president of Burand & Associates, LLC, an insurance agency consulting firm. Readers may contact Chris at (719) 485-3868 or by e-mail at chris@burand-associates .com. NOTE: None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations. Reprinted with permission by IIABA’s Virtual University
Do you want: • Binding authority for your clients? • 20% New Business Commission? • Experienced Underwriting Staff who provide great service?
Berkley Classics specializes in providing Agreed Value coverage on Collector Vehicles of all types. Contact the Berkley Classics specialists at 1.507.449.6775 (Kathy) or 1.507.449.6839 (Joni) for more information.
The companies of CWG are A+ rated (A.M. Best Company). CWG has been providing this coverage for over 35 years.
Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. | 1256CWG-BC-01-15
1256CWG-BC-01-15.indd 1
12/12/14 8:29 AM
Summer 2015 • The Oregon Agent
21
Is Your Agency Procedures Manual “E&O Safe”? By Morgan Smith, Assistant Editor Independent Agent Magazine
H
ow many staff members at your agency could paraphrase guidelines from the agency procedures manual or employee handbook? It may seem tedious, but if the answer to that question isn’t “all of them,” an E&O disaster could be in your future. Agency procedures manuals and employee handbooks are two separate, yet compatible aspects of an agency’s operational foundation. Employee manuals have a staff organizational focus—what the agency expects from employees, and what the staff can expect from the agency. By contrast, an agency procedures manual strays away from the HR realm to address the business practices of the agency, including operational standards and methodology for differentiating business practices. “The No. 1 inside hassle of agencies is that everybody has their own preference on how to do something, but no one is telling them the agency way,” explains Big “I” Virtual University faculty member Virginia Bates, president of VMB Associates, Inc., a consulting firm that specializes in education, agency management and automation issues. “The E&O issues become understandable but dangerous mistakes. We have to stop that so everyone is using the same information base in an agency—it’s the only way an agency can focus on making every single call an opportunity to look at the account and suggest coverages.” Bates, who has more than 20 years of consulting experience in the industry, says agencies that don’t pay attention to these materials face E&O exposures galore. Here’s why. IA: What is the biggest issue with agency procedures manuals and employee handbooks? Bates: Many agencies literally do not have anything and they’re very seat of the pants. Whenever they hire someone, 22
The Oregon Agent • Summer 2015
there’s nothing to give them to say this is how we do things. There are a lot of assumptions that end up being well intentioned but inconsistent that eventually tie in to E&O problems. Others have a manual, but it’s from 1982 or 1967 and it doesn’t address the business practices of today from the carriers or agency management systems. One of the predominant problems I find in my practices is what I call the “bright and shiny syndrome”—they’re happy to have a manual—they understand the value of it intellectually—but from an implementation standpoint, nobody is passionate about it. So they don’t follow through, introduce it properly, stress the importance of it or do management reporting to see if people are complying. There are the precious few agencies that not only get it, but they also know how to make it happen. They can reinforce it—new people read the manual and they understand it before they’re put to work even if they’re experienced. They’re almost quizzed by management to see if they’re using the same methodology that the rest of the agency uses. They’re the people who really follow through and they tend to get a lot more done in sales and have higher retention, because they don’t spend a lot of time on processing errors. What are some of the evolving E&O exposures agencies face when it comes to these materials? The biggest reason I think a procedures manual makes an agency far more E&O safe is that it not only clarifies but enforces consistency among all staff people so they’re handling the work the same way at every relevant desk. No matter what customer calls or who that customer talks to in the agency, the customer is going to get predictable, sensible and consistent answers without hesitation. This way, the consumer
is never left between two different ways of working, lost in the “I can’t figure this out” shuffle. An example of that is indicating what activity codes or activity names everyone’s going to use for the same thing. If a customer calls about a certificate that has been in process and they need that certificate to get a project bided, the way to find that activity by filtering or refining can be located very easily. But if one person uses the correct code and someone else uses a totally different code, then being able to find the information for that client on where the certificate is located will not only be less quick and convenient but risks the chance of not seeing everything. Good use of a computer system means that everybody is doing things the same way, using the same code and documenting to the same level so that anyone can help that customer at any time with speedy and accurate information. The No. 1 E&O claim is that a client doesn’t have the right coverage at the right time when they have a loss and finds a way to blame the agency. If our procedures are smooth enough that when we talk to the customer we know exactly what coverages they have and do not have, we can use that precious moment when we have the insured on the phone or in an email conversation to work with them on making the account as strong as it needs to be for the client’s protection. What constitutes a “safe” manual from an E&O perspective? The Big “I” Best Practices Study gave us an indication of the best way to get work done in the fewest steps. The problem with most manuals I see is they weren’t written by people who understand agency operations. They force too many unnecessary steps, creating more work for a staff that already has too much work. And the more steps you have, the greater the opportunity to mess something up. Very often, procedures are written by people who don’t actually do the work. The procedures are therefore too cumbersome. Now we’ve documented and put in writing the wrong way to do things, and that actually takes you a step backward. When the smarter people in the agency realize it doesn’t make sense, they find their own way to do things and create even more inconsistency. When you write a manual but you don’t know all the things your system will do for you, you can’t possibly write a good manual. You think manual effort is necessary to do things that the computer is perfectly able to do for you. The procedures come out clunky and cumbersome—it has to be a professional, state-of-the-art set of workflows that you’re aiming for. Most agencies start their procedures without writing out what their service standards are. If we don’t even agree on what we’re trying to achieve, then we can’t possibly come up with a road map to get there. It’s the service standards that have to come first.
Tough, high-hazard property, casualty, transportation and professional and management liability risks require detailed expertise and specific industry experience. At RT Specialty, our brokers draw on the most comprehensive resources worldwide to provide better, faster, smarter insurance solutions. We do whatever it takes to find the solution that meets your clients’ complex coverage needs. When it comes to tough risks, experience the difference a tough broker can make. Tough risks demand tough brokers. For more information, contact: Ed Bukovinsky | 206.708.2074 ed.bukovinsky@rtspecialty.com 1200 Fifth Avenue, Suite 1910 | Seattle, WA 98101 www.rtspecialty.com
R-T Specialty, LLC (RT) is a subsidiary of Ryan Specialty Group, LLC, specializing in wholesale brokerage, MGA/MGU underwriting facilities and other services to agents, brokers and carriers. In California: R-T Specialty Insurance Services, LLC License #0G97516 © 2013 Ryan Specialty Group, LLC
Reprinted with permission from IIABA’s Virtual University. Summer 2015 • The Oregon Agent
23
By John Graham
“The common approach is to hold up the 1% as models for everyone else. ‘Strive to be a star,’ they’re told. While that may motivate a few, it doesn’t help the vast majority.”
22 Reasons Why Salespeople Don’t Make MORE SALES
T
here are a few star performers in sales. The other 99% fall on a continuum from very good to poor. While this isn’t news to anyone, the common approach is to hold up the 1% as models for everyone else. “Strive to be a star,” they’re told. While that may motivate a few, it doesn’t help the vast majority of salespeople who want to sell more but don’t know how to go beyond where they are. This picture isn’t complicated. For the most part, salespeople can do things that bother customers so they lose sales unnecessarily. Here are a number of them:
6.
Poor follow through. By placing the top priority on closing sales, little effort often goes into preparing the way to get there, including a failure to answer emails, making mistakes, not returning calls, forgetting to send requested information, and not meeting agreed upon deadlines.
7.
Writing off prospects. How many times has a prospect become a customer long after the salesperson has dropped them? There’s no telling how many more sales a salesperson can make just by staying closer in touch with prospects.
1.
Trying too hard. A salesperson can be so focused on making the sale that customers feel pushed to make a decision. Even though they may want to say yes, they say no instead as a way to escape.
8.
Lack of enthusiasm. Whether it’s a clerk at a dry cleaner store, a server at a restaurant, a loan officer at a bank, or any other salesperson, it takes energy and enthusiasm to engage customers.
2.
Inadequate preparation. Using “canned” or rote presentations that are so general they’re meaningless and emphasize the product or service without reference or relevance to the customer.
9.
3.
Ignoring the customer. Customers try to figure out whether or not a salesperson is genuinely interested in them, and the answer determines the outcome of the sale. Any answer other than “yes” means a lost sale.
Not painting verbal pictures. Too many salespeople try to impress customers with “war stories,” and present “facts” when the customer wants to know how their purchase will change or improve their life, help them feel better about themselves, and fulfill a dream.
4.
5.
24
Talking too much. When salespeople don’t know what to say next, they cover it up with more talk. Instead of using such moments to ask questions, they try to get on track with more talk, but it’s too late, the sale is dead. Laying on the jargon. Some salespeople think it makes them seem more confident and competent if they use a “secret language” — jargon — to make themselves sound like experts, when it only makes customers feel uncomfortable.
The Oregon Agent • Summer 2015
10. Playing a role. It’s never deliberate, but it happens. A salesperson’s words, manner, and attitude can cause customers to react negatively. Instead of acting normally, they come across as if they’re playing a part or following a script. 11. Failing to involve customers. It’s not only inexperienced salespeople who are guilty of talking to customers, not with them. It’s as if they are determined to grab the reins and keep control at all cost; akin to winning the battle but losing the war. 12. Too focused on what they want to sell. It’s one thing to be enthusiastic about your product or service, but it’s
something else to make customers feel what you’re selling is all you care about. 13. Stopped learning. They’re frozen in time, most likely at when they first went into sales. Customers view them as “dated” and out-of-touch, unable to help anyone meet current challenges and opportunities, and it gets worse with each passing year. 14. Believe they can sell anything. Not only do they believe it, they see it as a badge of honor and a sign of superiority. They brag about it freely in a self-serving attempt to put a shine on a faltering sales career. 15. Impervious to criticism. They guard their self-image at all cost, requiring endless praise for their sales prowess, while striking out at the slightest sign of criticism. They not only deny the accusation, but they also label them unfair and wrong, nothing more than signs of jealousy. 16. Not feeling valued. Everyone deserves a pat on the back, but salespeople, unlike others in a company, can quantify their performance; they know how they’re doing. Being disturbed by a lack of appreciation only distracts a salesperson from getting the job done. 17. Overestimating their competence. It’s common for most people to avoid bragging by underestimating their capabilities and failing to give themselves the credit they deserve. With salespeople, it’s just the opposite. They are prone to exaggerate their competence, their ability to work collaboratively with customers and to close sales. 18. Getting pumped up. No salesperson can become successful merely by listening to motivational messages, attending seminars, or buying the latest sales guru’s book. Success takes focus and hard work. 19. Talking down to customers. Some salespeople intimidate customers so they can better seize and maintain control. Some customers acquiesce, not feeling up to challenging the salesperson, while others bail out and go elsewhere. Even those who concede harbor resentment. 20. Putting the brakes on. After a salesperson has been in the business for a while, even some years, they start to put their foot on the brake. Seemingly, they decide to only go so far, letting it be known what they will and won’t do. They want to decide
which prospects they’ll work on, and the level of service they’ll offer customers. It’s a great way to put the brakes on their sales. 21. Distancing themselves from the company. This is subtle, but customers pick up when salespeople drop hints that that they would do something differently if they were in charge. It’s an effort to earn points by showing they’re on the customer’s side. It almost always backfires; customers don’t want to do business with renegades. 22. Confusing talk with action. Because salespeople tend to be verbal, they think that when they say something, they’re doing it. They readily agree to get a proposal done, make a delivery, assist with a project, or make a presentation. When the due date comes around, they’re absent. And so are their sales. Selling is hard enough without being weighed down by attitudes and behaviors that make it tougher — and sometimes impossible — to make more sales. John Graham of GrahamComm is a marketing and sales strategist-consultant and business writer. He publishes a free monthly eBulletin, “No Nonsense Marketing & Sales.” Contact him at jgraham@grahamcomm.com, 617-774-9759 or johnrgraham.com.
THE INDEPENDENT INSURANCE AGENTS OF OREGON MATTER TO US. That’s why Imperial PFS, the leading source of funding for the IIAO membership, has been located in the Pacific Northwest for more than 30 years. In addition to a strong local presence, we shape our business around the things that will benefit you the most—Service, Technology, Reliability and Affordability. Our stable and experienced team finds creative solutions to help address your needs and grow your books of business. For more information on how Imperial PFS can help you, contact: Darren Eversole: 971.246.8575 | email: darren.eversole@ipfs.com
Connect anywhere, anytime with any mobile device.
Visit us online at www.ipfs.com or download our mobile app.
Summer 2015 • The Oregon Agent
25
Newly Passed
NON-RESIDENT LICENSING REFORM
I
n the biggest legislative win for the Big I in over a decade, Congress passed H.R. 26, the Terrorism Risk Insurance Program Reauthorization Act of 2015, which extends TRIA for six-years. The new law also authorizes the creation of a non-governmental, nonprofit corporation known as the National Association of Registered Agents and Brokers (NARAB). Participation in NARAB is voluntary and open to all agents in good standing in their respective state. The primary benefit of NARAB is that it creates a portal, mechanism, or central clearinghouse that enables individuals and business entities to satisfy the licensing requirements that exist in nonresident states. Once approved for membership, an insurance producer can utilize NARAB to obtain the regulatory authority needed to operate in any state and do so in an efficient and expedited manner. The process will operate in this manner: • A NARAB member will identify the jurisdictions in which he/she/it seeks the authority to operate as an insurance producer, and that individual or entity can utilize NARAB to operate as a producer in any number of states.
26
The Oregon Agent • Summer 2015
•
NARAB will collect the licensing fees for the states selected by the NARAB member, and these fees will be remitted back to the appropriate jurisdictions. While state licensing fees are not eliminated by this statute, the fees collected from NARAB members may not be higher than those imposed on nonresident producers that are not members of NARAB.
•
Once a NARAB member designates a state and pays the appropriate fee, then that individual or entity is authorized to engage in producer activities (e.g. the sale, solicitation, and negotiation of insurance) in that jurisdiction. The authorization granted is the equivalent of that provided to nonresident producers that are not members of NARAB.
•
Nonresident jurisdictions may not impose any licensing, application, or market entry-related requirements on NARAB members. In addition, these states are also prohibited from requiring any NARAB member to register as a foreign corporation.
action against any nonresident producer who violates the law. Although the enactment of the NARAB II legislation is a significant step forward and sign of progress for the countless producers who struggle with the inefficiencies, unwarranted expense, redundancy, and lack of true reciprocity associated • While the mechanics of this process will be specified with the existing licensing system, it is important to recognize in procedures developed by the board of directors, the that the desired reforms will not be implemented overnight. expectation is that this will be an electronic and inThe new law establishes an important and much-needed stantaneous process. An individual or entity who utiframework, but there is considerable work that must be lizes the NARAB platform in this manner will obtain completed and hurdles that must be cleared in order for the the authorization to act as an insurance producer in a NARAB vision to be realized as intended. The statute calls for particular state as soon as the fee associated with that NARAB to be operational within two years of enactment or state is collected. the date of NARAB’s incorporation, whichever comes later, Generic Ad for PPPʼs Property Manager Program and meeting that timeline will require extraordinary work from Insurance agents and brokers who utilize NARAB to obtain many different parties. The good news is that the legislation 7.25 x 4.625 the authorization necessary to operate on a nonresident basis had widespread support from the agent, carrier, and regulator Job #3343 are not exempt from state oversight. NARAB simplifies communities, and these constituencies appear to be equally and streamlines the licensing and market entry process, but committed to establishing a successful NARAB. NARAB members must comply with state marketplace Implementation of the NARAB II legislation will require requirements. The new law does not limit or restrict the ability the ongoing work of the Big I. We are committed to making of state regulators to enforce marketplace, unfair trade practice, this new law work for our members across the country. and consumer protection laws, and states will continue to investigate complaints and take enforcement and disciplinary •
NARAB will notify state insurance regulators and the NAIC when a NARAB member is newly authorized to operate in one or more states or when a person is no longer authorized to operate.
Property Managers, get all your coverages from one source Now there’s a comprehensive program that gives you true protection Designed specifically for professional real estate managers, our unique Property Managers Program provides all the coverages a building manager needs. This program is available countrywide (except Alaska). All policies are underwritten by A+ rated insurers and supported by the highest level of professional service. Lines of business available:
PROPERTY MA NAGERS PROGRAM
• Property and Umbrella • Equipment Breakdown • General and Professional Liability • Automobile and Inland Marine • Worker’s Compensation • Fidelity, Cyber liability and more A subsidiary of
JGS INSURANCE
Contact us for a quote: www.umbrellaprogram.com
888.548.2465
info@umbrellaprogram.com
Service is our specialty; protecting you is our mission ®
960 Holmdel Road, Holmdel, NJ 07733
Summer 2015 • The Oregon Agent
27
By Bill Wilson
There’s No Place Like Home ...for an E&O Claim
When was the last time you surveyed your personal lines accounts and asked if business was being conducted, either full or part time, from home? According to research, at least 20-40% of all homes have some kind of business activity. Failure to identify and counsel your personal lines clients can be catastrophic...both for them and you.
W
ell, when was the last time you asked your personal lines clients if they conducted business out of their home or, in fact, ever did any kind of work at home? Any baby-sitting, grass mowing or newspaper delivery? Any house cleaning at the homes of others? Any work at home for their full-time employer? If you can’t remember or if you know the answer is “never”, you may be missing out on a valuable source of revenue. More importantly, you are most likely subjecting yourself to an E&O exposure far greater than you ever imagined. And, you certainly aren’t helping your client. According to research, at least 40 million people work— full or part time—at home. An Allied Insurance Group study several years ago indicated that income-producing businesses are being operated from almost 20% of American homes...and this doesn’t include people who just take work home at night. According to a readership survey conducted by Home Office Computing magazine, 82% of their readers run full- or part-time businesses from their home, 79% have done so for over 2 years, and many of them have 4 or more employees. While returning from a Local Board visit last year, I tuned into a talk radio station that has a financial advice program in the afternoon. One of their callers operated an import business out of his home, storing merchandise in his basement, detached garage, and a large storage building he rented from the neighbor behind him. During the conversation, the hosts of the show nonchalantly suggested that he make sure that he was properly insured. The caller quickly responded that he had homeowners insurance... 28
The Oregon Agent • Summer 2015
in fact, he even had a personal umbrella! The hosts of the show had no comment, despite the fact that the caller indicated that the value of his merchandise approached $1,000,000, and he had 5-7 employees. Think the caller has any exposure gaps in his insurance program? Think his current agent has an E&O exposure? Think an astute agent might have a pretty good marketing opportunity? Although space doesn’t permit a complete analysis of the subject, the following are just a few of the gaps your personal lines accounts may have if they operate an in-home business or, in some cases, even work at home. >
The definition of “insured” in both the Homeowners (HO 00 03 04 91 and Personal Auto (PP 00 01 06 98) policies does not include corporations, nonresident “partners”, nor employees.
>
The HO policy provides no property coverage for nondwelling structures used for business.
>
The HO policy provides, for all practical purposes, NO liability or medical payments coverage for any business activities.
>
Although the HO policy does permit certain incidental business activities, coverage is only provided by endorsement and is very restrictive.
>
The HO policy provides minimal coverage for business personal property—an agent told me recently
• Identify distance to re hydrants and stations • DIC cross selling opportunities with geographic overlays & risk mapping • Con rm risk data from your desk with tools to measure distance, area & elevation • View current or historic re data with up to date wild re mapping
Visit www.WSRB.com/PropertyEDGE to learn more!
Summer 2015 • The Oregon Agent
29
that his wife inventoried the Mary Kay cosmetics she sells and discovered $9,000 in merchandise on just one shelf. >
The HO policy provides no business income coverage.
>
Although many in-home businesses are of a professional, service nature, the HO policy provides no professional liability nor D&O coverage.
>
The HO & PAP policies provide no coverage for persons eligible to receive workers comp benefits— e.g., the importer referenced earlier.
>
Autos owned by the business may not be eligible for a PAP, and problems may arise on currently insured autos if ownership is transferred to the business.
>
Although the PAP covers many business uses, there are exclusions such as the use of a vehicle as a “premises”. Sounds unlikely, but my son’s former baby-sitter has a “Weeny Wagon” trailer that she transports to ball games, fairs, etc. Any coverage? Nope.
>
>
>
The PAP may also exclude the use of vehicles to transport property, use in an auto business (e.g., car repair in a detached garage), and the business use of nonowned pickup trucks and vans. The PAP excludes customizing equipment that may include vehicle modifications for locksmiths, lawn care, and others, not to mention exclusions for various kinds of electronic equipment such as cellular phones. Personal umbrellas may cover some business exposures, but not often.
Clearly, many, if not most, persons with in-home businesses need commercial coverages in the form of a BOP (in some cases, even a CPP). In many cases, a hybrid In-Home Business policy (such as that most likely provided through your state IIABA association by RLI) may be appropriate...in fact, such combinations of personal and commercial lines may provide broader coverage than a BOP alone. The bottom line is that you need to find out if your personal lines clients have uninsured exposures, then take the appropriate action, if anything, to prevent E&O claims that are now being experienced by many agents. Copyright 1998 by Insurors of Tennessee. Used with permission. 30
The Oregon Agent • Summer 2015
Integrity
Service
Security
Stability
Serving Independent Agents Since 1930
www.quirkco.com
(800)299-9421
B C E Consulting, LLC Our mission is to help you grow your business and improve your bottom line. Our team of professional and experienced consultants has assisted insurance companies and agencies in achieving their goals and objectives for many years. We focus on the following areas of business development. • • • • •
Strategic, succession and contingency planning Business growth and development Market feasibility studies Education, sales training and professional development Operational efficiency and process improvement For further information or details please see our website: www.bceconsulting.co or contact:
Jeff Bronaugh, CPCU, CLU, ChFC, CIC jeff@bceconsulting.co 404 3rd Ave S, Edmonds, WA 98020 (520) 343-4394
A NAME THAT BUILDS RELATIONSHIPS At Risk Placement Services (RPS), we are committed to building relationships one retail partner at a time. Our stewardship begins by providing you access to the finest markets and top producers in the industry and providing customized solutions to meet your needs by designing, negotiating and tailoring individual risks that help you succeed. It’s a partnership you can count on! To learn more contact Bud Carter 480.860.5572 or email at Bud_Carter@RPSins.com. www.RPSins.com
Summer 2015 • The Oregon Agent
31
You’re passionate about your clients. We’re passionate about protecting them. You have a passion for supporting your clients. Liberty Mutual has a passion for protecting them with coverages like commercial auto, workers compensation, and business owner’s policy (BOP). With regional offices, industry understanding, and comprehensive coverages for businesses of all sizes, we have the local knowledge and national resources to help your clients thrive. Talk to your territory manager today about Liberty Mutual Insurance, or go to libertymutualgroup.com/business. We are proud to support the Independent Insurance Agents & Brokers of Oregon. @LibertyB2B
© 2014 Liberty Mutual Insurance. Insurance underwritten by Liberty Mutual Insurance Co., Boston, MA, or its affiliates or subsidiaries.