More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
STREET WISE Alliance of Insurance Agents of NC “What You Don’t Know Can’t Help You!” … Eddie K. Emmett, Editor / Publisher
How Insurance Agents can “Out-Google” Google In This Edition HOW INSURANCE AGENTS CAN “OUT-GOOGLE” GOOGLE............... 1 M AKE YOUR WEBSITE MOBILEFRIENDLY ....................................... 4 TOP EXCUSES FOR NOT ASKING CUSTOMERS FOR REVIEWS ............. 6 CREATE VIDEOS ............................. 7 2015 IS GOING TO BE THE YEAR OF THE VIDEO ..................................... 7 NON-COMPETE AND NON-PIRACY . 12 TEN TIPS FOR EFFECTIVE TERMINATIONS Q&A .................... 16 HOW
ARE YOU CONFIRMING COVERAGES THAT HAVE BEEN DECLINED ? .................................. 24
Google will soon be offering to compare and sell auto insurance. Type “Google Compare” in your browser and read the bad news. You can’t “Out-Google” Google but you can “Out-Local” Google. And all of it is free. Back in 2009 the major Search Engines, Google, Yahoo & Bing, realized that most consumers want to transact with local businesses. It is called “Organic Search” as opposed to “Pay Per Click”. The Search Engines set aside prominent space on Page #1 for Insurance Agencies that complete the following 8 steps.
AIANC’s STREET WISE
Page 1
1
Create the Perfect Website. It’s the only Internet Real Estate you truly own. Here’s an example of a Perfect Website: http://preview.accuagencywebsi tes.com/GMKN31 You can get one for $99.00 setup & $35.00 per month at www.AgencyThrive.com.
Continued on page 2 February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
“Out-Google” Google Continued from page 1
3
2
It may seem odd, but one huge factor in your Google+ Local rankings has to do with your listings on other sites - particularly online business directories. Every time you’re listed on one of those sites, you’ve got what’s called a “citation.”
Claim Your Local Search & Citations It doesn’t do any good to have the Perfect Website if no one knows your agency exists!
Citations are important because, to Google, they are “mentions” of your business on sites that Google generally trusts to have accurate info on local business.
Try this experiment: One at a time, type into your browser the types of insurance products sold through your agency. You don’t have to worry about inputting the city … Big 3 knows where you is!
Any time the name, address, and phone number of your business are published online together, that’s a citation.
If you don’t show up on Page #1, your agency is invisible as far as Local Search is concerned.
Want to see how many Search Engines and Online Directories are waiting to be claimed by your agency? BTW … it’s free! Go to http://www.Synup.com
AIANC Members may download this excellent “How To” booklet for free:
AIANC Members may download this excellent “How To” booklet for free: Free “How to Claim Top Listings”
It has everything you need to claim your online listings: •
Screenshots
•
Embedded Hyperlinks
•
Easy Explanations
•
Suggestions for content
•
The only thing it doesn’t have is a calculation of what your time is worth.
•
It takes up to a month of steady work to claim all the listings you need.
•
Continued on page 4
So … how much is YOUR time worth?
AIANC’s STREET WISE
Page 2
February 2015
Looking For Growth or Acquisition Capital? We offer Insurance Agents loans from
• Purchase a new book of business
$25,000 to $5,000,000, allowing you to
• Open an additional location
leverage your commission and renewal
• Start a marketing campaign
income to help you grow your agency!
• Hire a top producer
Super G Fund ing, LLC 23 Corporate Plaza Drive #100 Newport Bea ch, CA 9266 0
Your Insurance Agency Loans fr om $25,000 t o $5 ,000,000 B or r ow Against Your C om
0000000
missions!
00 00000
00000 00
000
Apply Today! 250,000
Super G Funding
Complete Our Easy Loan Application in Less Than 10 Minutes!
LOANS FUND IN AS FEW AS 7 DAYS! www.SuperGFunding.com/Insurance | Call Us Today! 800.631.2423
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
“Out-Google” Google Continued from page 2
4 Make your website mobile-friendly Imagine a user looking at your site on a mobile device. Can the user easily read your page and find the necessary information or is too hard to use? The desktop version of a site might be difficult to view and use on a mobile device. The version that's not mobile-friendly requires the user to pinch or zoom in order to read the content. Users find this a frustrating experience and are likely to abandon the site. Alternatively, the mobile-friendly version is readable and immediately usable.
Mobile is critical to your business and will continue to be so – whether you’re blogging about your favorite insurance product, working on your agency’s website, or selling insurance products to potential clients. Make sure visitors can have a good experience on your site when they’re visiting from their mobile devices!
In the USA, 94% of people with smartphones search for local information on their phones. Interestingly, 77% of mobile searches occur at home or at work, places where desktop computers are likely to be present.
AIANC Members get free training on how to make their websites mobile-friendly.
Test your site for free at: https://www.google.com/webmasters/tools/mobilefriendly/
Join today at www.AllianceInsuranceAgentsNC.com Continued on page 6
AIANC’s STREET WISE
Page 4
February 2015
Premium Insurance Agency Website
Web Marketing Service
$35/month, $99 setup fee
$495 setup, $100/month
• Service descriptions • Online payment links • Contact info, contact form and location map • Up to 15 pages • Agency blog • Insurance information videos • Custom QR Codes • Links to social media and review sites to build your online reputation • Online quote forms • Agency staff photos and individual contact info • Optimized for mobile devices
• Create agency business listings for visibility with more than 10 of the biggest listing and social media sites: Facebook Business Page Twitter for Business Account Google Places Listing Bing Listing Yahoo Listing Yelp! Business Listing CitySearch Listing …and more! • Independent Agency blog for inclusion in your agency website Professional content added regularly Make your site interesting to customers, potential customers, and search engines • Inclusion as preferred agent in our online directory listing of local agents • Basic monthly analysis of online presence • Setup and monitoring of Google Ad Word campaigns based on a budget you specify
Elite Insurance Agency Website
Web Consultant Service
$60/month, $99 setup fee
$1995 setup, $250/month
• Includes all the features of the Premium Insurance Agency Website, PLUS: • Up to 30 pages of content • Custom design services for a unique look • Custom submission forms for your preferred lines • Online chat • Insurance Glossary • Multi-location interactive maps • Regular changes by our staff upon request • Optimized for mobile devices
AgencyThrive - Insurance Agency Internet Marketing & Social Media
Includes all the features of the Web Marketing Service, PLUS SO MUCH MORE: Elite Website included with Instant Auto Quote (where available) Weekly updates of Social media sites Includes Google Adwords campaign (no additional click charges) Monthly email blast to your customers upon request Monitoring of online reviews to protect your reputation Detailed monthly analysis of online presence Preferred placement on our directory listing site of local agents Monthly action plan to increase traffic and sales
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
“Out-Google” Google Continued from page 4
5 Ask for and monitor Online Reviews Why are online reviews worth the effort? There’s one reason that towers above the others:
https://www.whitespark.ca/review-handout-generator
Reviews are the main way to build a solid reputation online.
Top Excuses for Not Asking Customers for Reviews
You may know that already. But “reputation” is a vague term most people don’t define.
http://www.localvisibilitysystem.com/2013/08/29/topexcuses-for-not-asking-customers-for-reviews
I’m referring to two main benefits: If you have a good reputation (1) someone other than you is explaining why you’re good, and (2) potential customers can read the reviews and form an opinion as to whether you’re a good fit for them.
21 ways to get Online Customer Reviews http://www.localvisibilitysystem.com/2012/04/13/21ways-to-get-customer-reviews-the-ultimate-list
Respond quickly to all reviews by setting up Google Alerts Set up Google Alerts for your agency: http://www.google.com/alerts AIANC’s STREET WISE
Continued on page 7 Page 6
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
“Out-Google” Google Continued from page 6
6 Create Videos
80% of Your Online Visitors Will Watch a Video, While Only 20 Percent Will Actually Read Content in Its Entirety Your Website Is 50 Times More Likely To Appear On the First Page of a Search Engine Results Page If It Includes Video 90% of User Say That Seeing a Video about a Product Is Helpful In the Decision Process An Introductory Company Email That Includes a Video Receives an Increase Click-Through Rate By 96%
2015 is going to be the Year of the Video Videos Increase People’s Understanding Of Your Product or Service by 74% 75% Of Users Visit the Marketer’s Website after Viewing a Video 80% of Internet Users Remember the Video Ads They Watch Online 26% of Internet Users Look For More Information after Viewing a Video Ad 22% of Internet Users Visit the Website Named In a Video Ad They Viewed
AIANC Members may download a Stepby-Step Guide to YouTube Marketing for free.
AIANC Members may download Animated Video software & online tutorials for free.
After Visiting a Video Ad, 12% of Viewers Purchase the Specific Product Featured In the Ad Website Visitors Are 64% More Likely To Buy A Product on an Online Retail Site after Watching A Video Click-Through Rates Increase 2-3 Times When Marketers Include a Video in an Email AIANC’s STREET WISE Page 7
Here’s a sample: http://youtu.be/pBNbqxXP7L4?list=UUdScMM7TDqnXrh RRVte0jPQ Continued on page 8 February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
“Out-Google” Google
Scan this QR Code to get a better idea of what an impact it would make on prospective clients:
Continued from page 8
7 Start Marketing with QR Codes Or you can create a QR Code like this one to increase your Facebook “Likes”.
AIANC Members can create their own “Mini-Mobile Sites” and QR Code Marketing for the growing number of folks who rely on their Smartphones. AIANC’s STREET WISE
Continued on page 10 Page 8
February 2015
…starts by building your bottom line with Nation Safe Drivers! Over the past 50 years, NSD has built its success by helping to build our client’s success and has grown into one of the largest suppliers of autorelated supplemental insurance products. We have earned an unmatched reputation by helping agents increase their profits, while providing excellent customer service, fast claims processing, and administrative support. We proudly serve millions of customers worldwide through our agency partners and are ready to serve you. With many products to choose from, the combination of benefits and services you can offer your customers is virtually endless. Here are just a few of the products that NSD offers: Towing & Roadside Assistance Travel Plans with Hospital Indemnity Accidental Death & Dismemberment Accident Medical Protection
• • • •
Rental Reimbursement ID Theft and Legal Discount Travel And More!
Don’t wait any longer, contact Nation Safe Drivers today and get on the…
Road More Profitable!
CELEBRATING OVER 50 YEARS OF EXPERIENCE & INDUSTRY LEADERSHIP! 800-338-2680
http://www.nsdmc.com
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
“Out-Google” Google Continued from page 8 www.AllianceInsuranceAgentsNC.com
8 Create a Facebook for Business Page
Facebook’s Fan Page lets you gather as many fans as you want. It also provides a way to interact with a large scale of customers. You can set up Facebook Fan Page links on all of your business’s online media outlets, which lets online users go to the fan page and directly interact with your company.
https://www.warriorplus.com/o2/a/tmpf6/0
This increases your SERPs presence, as well as increasing customer participation and brand recognition.
http://jvz8.com/c/215739/123766
Mars landing
www.AllianceInsuranceAgentsNC.com
Here is your smile for the day. It's a 43 second commercial and the sponsor isn't identified until the final few seconds.
AIANC Members may download “How To” Videos & Tutorials on setting up and maintaining a Facebook for Business page. Join today for only $250.00 per year.
https://www.youtube.com/watch_popup?feature=player_em bedded&v=9WoM2bHfr48#t=0
AIANC’s STREET WISE
Page 10
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com Honest, competent people. Not a faceless, soulless Tips for Your Success – corporation.
Let NSD Pay your Utility Bills
Your page needs to instill some trust in people who are looking at it for the very first time. Here are 4 easy ways to make your Google+ Local page give off good vibes: 1. Include pictures of real people, preferably of you and your staff/workers. Show customers that you're human.
Let's just say that you sell ONE NSD policy for $50 with a net cost to NSD of $10... You just earned an easy $40!
Also, see this post I did: http://www.localvisibilitysystem.com/2014/04/01/10classy-google-plus-local-cover-photos-and-how-tomake-yours-better/
Now, let's pretend that you only sold one per day... Now you are at $200 a week! (Doesn't seem too bad right?)
2. Try to ensure that negative customer reviews aren't high up on your Google page. If a negative review shows up at the very top of your page, start getting more positive customer reviews coming in, so that the negative one doesn't remains up there, sticking out like a sore thumb and scaring away customers forever.
By only selling ONE NSD policy each day, your agency can earn $10,400 this year! (Whoa.. and that's only ONE per day.. What if you sold two... or even FIVE?) http://www.nsdmc.com
Will your Google Local page bite? If I'm a local customer, that's the first thing I want to determine when I see your business's Google+ Local page. Will I regret spending another 10 seconds on your page?
(For more on how to get more Google reviews, check out this giant blog post I did: http://bit.ly/11rmwCM) 3. In your short "Description" don't write in the thirdperson. Say "we." "We specialize in..." rather than "Specializes in..."
If I call you on the phone, will I be treated rudely or clobbered with a sales pitch?
Preferably make this little blurb informal, not stuffy and "professional." It should be something you'd say to a customer face-to-face - not what you think a newspaper reporter would say about your business. Don't be like "The Jimmy" from Seinfeld.
If I'm a potential customer, I want to find out all of this now - or I'm going to look at your competitors down the street, and I'm taking my wallet with me.
(Linda Buquet has a good (and funny) thread in her forum about how to get creative with these descriptions: http://bit.ly/PtcOKW)
You need to pay attention to the first impressions your Google page gives. Any local visibility you have is useless unless people can determine the following about you in the space of about 5-10 seconds:
4. Respond to any reviews customers have written on your Google page. Yes, even the positive ones. It shows you're paying attention and that you give a hoot about what your customers think.
-That you may offer the services they just typed into Google
Scary Google+ Local pages are easy to come by. I'm sure you've seen your share of them. But here's a prime example, in case you're not sure what I mean by not-sogood vibes: http://g.co/maps/tg42h
Should I even bother visiting your website?
-That your business actually exists -That other customers have done business with you and lived to tell others about the experience (in the form of reviews) -That you won't rip them off -That they might benefit by visiting your website, calling you, or stopping by.
You can invest time and/or pay someone to help get your local rankings up in Google. And that's absolutely essential. But you'll wind up with the greatest number of customers if you also make sure your Google+ Local page immediately comes across as inviting. Spend a few minutes making sure your page gives off an inviting first impression.
I know that sounds like a lot to get across, but it's not.
Godspeed to you.
You don't necessarily need your Google+ Local page to look warm and fuzzy - though that probably wouldn't hurt. But it does need to look like it's run by people. AIANC’s STREET WISE
Page 11
Phil localvisibilitysystem.com February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
NON-COMPETE AND NON-PIRACY WHAT ARE THEY AND HOW CAN THEY BE APPLIED? By Al Diamond of Agency Consulting, Inc.
A non-competition agreement is traditionally defined as the prohibition of a person from competing against a former employer. A standard definition is “a contract that restricts participation in a certain market by a company or individual under specific circumstances.” Quite often an employer, an insurance agency for purposes of this article, requires an employee, such as a producer, to sign a non-competition agreement as a condition of employment. Sometimes an agency realizes that it is at risk to losing employees and having them compete with the agency and attempts to implement a non-competition agreement on existing employees. We are NOT attorneys and don’t purport to define the laws of the various States pertaining to non-competition.
However, we do act as Expert Witnesses on cases regarding common practices of insurance agencies and many times these court cases revolve around unfair competition of former employees.
The first question you must ask is, “Why should my agency employ any form of noncompetition wording?” We have spent years helping agencies generate more value in their asset, the book of business owned by the agency that generates revenues and, subsequently, income and earnings that build the insurable and transferable value of the business. How much would your agency be worth if the employees who produced that book of business or service employees and maintained the relationships between the agency and its clients were free to leave and solicit those customers AT WILL? Continued on page 14
AIANC’s STREET WISE
Page 12
February 2015
Giving agents and organizations new products and benefits. Increase sales. All online. Easy to use.
OFFERING HIGH QUALITY NICHE PRODUCTS Home Warranties Appliance Protection Plans Auto Service Contracts Power Sports Service Contracts Pet Health Insurance Boat Insurance Discount Medical Plans Individual Identity Theft Business Identity Theft GoAgents is proud to be working together with the highest valued companies in the industry to bring you niche products, enabling you to cross sell and increase revenue with new and existing clients.
Questions? Call us at: (Toll Free)1-855-854-7387 or Learn More online at www.goagents.com
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com Of course if they “steal” confidential information about your client from your files, you may have a cause of action, but not if they simply call the client and offer them services from their knowledge and memory of the client. So it becomes apparent that a non-competition agreement is important to an insurance agency.
The Second Question is, “What’s The Difference between Non-Competition and Non-Piracy?” There have been a myriad of problems applying non-competition agreements over the years as the courts have determined that a noncompetition agreement can not stop someone from practicing their chosen profession in the community in which they live. Since most of the traditional noncompetition agreements have been written with geographic considerations (i.e. noncompetition within 25 miles of the former employer), many courts have routinely invalidated the entire agreement because of this consideration. The answer is to change the definition of “Non-Competition” to eliminate geographic considerations and include a separate “Non-Piracy” consideration in employment agreements and contracts.
NON-COMPETE AND NON-PIRACY Continued from page 12 Obviously, the value of any insurance agency changing hands under that circumstance would be minimized. So the reason you want to establish the clear and total “ownership” of the book of business is to establish and maintain the value of your agency when you will need to sell or transition ownership. That means that if you NEVER intend to sell it, nor do you expect any residual value from the future conduct of the book of business after your ownership ends, you don’t need a non-competition agreement in place with your employees.
Our definition of Non-Competition is different than the traditional definition. Non-Competition is “the prohibition for an “X” year period of a former employee from assuming or accepting the insurance products of the clients or of influencing the clients to move to another insurance entity or of accepting any remuneration from another insurance entity related to the clients of the former employer that the employee produced or renewed on behalf of the employer or for which they had service or administrative responsibilities.”
Of course, that also implies that during your ownership of the agency, any departure of a producer or service employee could affect you far beyond simply finding a replacement. They could leave and market themselves as having access to hundreds or thousands of the clients with whom they established relationships or about whom they had access while employed with you. AIANC’s STREET WISE
Notice, that the definition prohibits the former employee from “assuming or accepting” the insurance products of the agency’s clients, not just from soliciting them. The clients, of course, can go wherever they wish to fulfill their insurance needs.
Page 14
Continued on page 16
February 2015
Security, Accuracy & Reliability Focus on what you do best! Selling insurance. Let us focus on what we do best! Ensuring your financial peace of mind.
Give Rosemary A Lambert, CPA, PA a call. Whether you need daily financial guidance, or yearly tax planning services, our professional staff will work with you to customize a plan that aligns with the goals of your agency. Our firm understands the need for absolute confidentiality. We will ensure the security of your financial systems and provide you with accurate and reliable data. With more than 20 years in the business, Rosemary A Lambert has extensive experience in accounting for the insurance industry.
704704-855855-1509 WWW.ROSEMARYALAMBERTCPA.COM Closeout Services Include: ∗ ∗ ∗ ∗ ∗ ∗
Daily database management reports Company draft verifications File uploads Finance company integration Reconcile bank account(s) weekly Premium difference reconciliation
Other Financial Services Include: Full-service payroll functions ∗ Bill pay services ∗ Financial statement compilation ∗ Corporate, partnership & personal tax returns ∗ Business consultation ∗
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
NON-COMPETE AND NON-PIRACY Continued from page 14 However, if this agreement is properly executed, while the client may leave your agency, the former employee may NOT become the client’s agent for some agreed-upon period of time. A Non Piracy Agreement is more liberally defined as “The prohibition for an ‘X’ year period of a former employee from 1) assuming or accepting the insurance products of the clients or active prospects of an agency or of influencing the clients to move to another insurance entity or 2) accepting any remuneration from another insurance entity related to the clients of the former employer for whose confidential information they had access.” Clients are further defined as “a) current clients with current policies at the time of the employee’s departure, b) current prospects who were contacted by an agency employee within the last twelve months for the purposes of establishing and building a relationship toward the sale of insurance products or c) clients who had an active policy within twelve months prior to the employee’s departure.”
How Long Should a Non-Compete/NonPiracy Agreement Be Enforced? The period of time that would be acceptable to courts for a non-competition or non-piracy agreement really relates to the general fairness doctrine. We impose noncompetition and non-piracy agreements to keep former employees from unfairly using confidential information regarding the agency’s products and its clients to which the employee became privy while actively employed at the agency. We should have no problem with the employee using his/her knowledge to pursue his/her career. But they shouldn’t be permitted to use information for which they were compensated by the agency about the agency’s clients. The fairness doctrine would have the prohibition from competition or acceptance of those clients for a time “reasonable” for the agency’s information to be accessible in the public domain or to become ‘stale’ and no longer useful in the solicitation of the client’s policies. A second issue is a reasonable time period to permit the agency to replace the relationship management role for which the former employee was compensated with another current agency employee. This ‘levels the playing field’ to permit open competition between the agency and the former employee.
When Should Non-Competition and NonPiracy Agreement be Executed and For Whom? In our opinion, every new employee should sign both agreements as a condition of employment. This is the most secure protection for the agency. The employee didn’t have to take the job if he or she didn’t agree with the prohibition against unfair competition once they leave the agency’s employ. In order to protect the agency, all current employees who deal with clients from a sales or service standpoint should also sign Non-Competition and Non-Piracy Agreements. However, if this might be viewed as a further limitation of the employee’s rights, it can only be done safely with some form of compensation that a court would be considered reasonable for the acceptance of the perceived limitation on the employee’s previous rights. This means that the consideration for the signing of the agreement must be sufficient for a court to agree that the employee was reasonably compensated for the elimination of his/her ability to freely competed with the agency should he or she leave. We are not trying to propose any legal agreements as the result of this article. Our goal is to explain the logic behind the implementation of Non-Competition and Non-Piracy Agreements for the protection of the books of business of insurance agencies. Appropriate legal advice should be solicited to create any legal agreement to adhere to the laws of your State. Reprinted from The PIPELINE, the national newsletter for agency principals. The PIPELINE is published by Agency Consulting Group, Inc., a leading consulting firm for independent agents in the U.S. for over 30 years. Call 800-779-2430, Visit www.agencyconsulting.com for information about the content of this article or PIPELINE subscription information.
www.AllianceInsuranceAgentsNC.com
Typically the time period acceptable to ‘stale’ current information about the agency and to permit fair replacement of the relationship management role is the balance of the current policy periods and two successive renewals, between two and three years.
AIANC’s STREET WISE
Page 16
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Ten Tips for Effective Terminations Q&A By Robin Thomas, Managing Editor Editor's Note: These question and answer HR Matters E-Tips articles are taken from real questions submitted by our subscribers, a unique feature of the HR Matters Tools and Resource Center online service. Involuntary terminations are an unpleasant part of any manager's job. If handled improperly, poor employee morale and lawsuits will likely follow. Here are ten tips for smoothing the process and reducing the stress for everyone involved. Q: We recently terminated an employee, and the meeting did not go well. The employee was very surprised about the decision and became angry, and the manager responded by saying it was not her decision and she did not agree with the termination. Now we are concerned the employee will file a lawsuit, though there really is no basis for a claim. How can we handle terminations more effectively in the future?
AIANC’s STREET WISE
A: No one likes to be the bearer of bad news, and notice of termination probably is the worst news you can deliver. Most managers, regardless of the underlying justifications, get stressed out just thinking about firing an employee. And to make matters more difficult, many employers are wary of terminating even their least effective employees for fear of discrimination or wrongful discharge lawsuits. (Download free 43-page Termination of Employment decision-maker kit including model policy template, HR best practices, legal background, and COBRA analysis.) Terminations don't have to be traumatic, though, or automatically result in a legal claim. If you focus on two important goals and follow the ten steps below, you can make terminations less stressful for everyone and help your organization stay out of court. Any time you have to deliver the termination decision, you should have two goals in mind: (1) the sending of as positive a message as possible to the employee being terminated, as well as to the rest of the workforce; and (2) the protection of the organization from litigation. Continued on page 18 Page 17
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Ten Tips for Effective Terminations Q&A Continued from page 17 The first goal may sound unattainable – how can a termination ever be a positive experience for the person being terminated? Even though the news of the termination itself may not be pleasant, your handling of it can directly affect the employee's reaction and will send a message to your other employees. Thus, for example, if you are rude and insulting to an employee during the termination meeting, you will offend the employee and send a message of disrespect to your other employees. Alternatively, if you calmly explain the reasons for termination to the employee and are generally respectful and positive, the employee will appreciate your action and may accept it as fair, even if he does not like the decision. And, you will send the signal to your other employees that you will treat them in a similarly positive and fair manner. As to the second goal, protecting your organization from litigation, the best advice is to follow a well-defined process of checks and balances.
You should be able to show the business-related reasons for the termination decision and to document that you treated the employee in a fair and consistent manner. To attain this second goal, you should make the following ten steps part of your termination process: 1. Follow your policies as closely as possible, especially your progressive discipline policy. A government agency or court faced with an employee's claim typically will look first at whether the employer followed its normal policies and procedures. Thus, you should make sure you have considered the following questions: -- In cases of performance problems, did you give the employee an opportunity to improve? -- If the employee violated a work rule, is termination the appropriate discipline based on your policies and past practice? -- If you didn't follow your policies as written, do you have a business- related reason to justify your decision, such as the nature or severity of the employee's actions? Continued on page 19
AIANC’s STREET WISE
Page 18
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Ten Tips for Effective Terminations Q&A Continued from page 18 2. Treat employees as consistently as possible. Most courts do not require you to treat every employee exactly the same, or to follow the exact procedures for each employee, in order to be consistent. Rather, they look to see if you treated "similarly situated" employees (those employees with similar jobs, performance histories, length of employment, etc.) in a similar manner. 3. Investigate thoroughly before terminating, particularly in cases of misconduct (such as violations of work rules, harassment, or theft). The investigation should provide sufficient documentation of the reasons for the termination and show that you followed the organization's policies. 4. Make sure the termination is not a surprise. In most cases of ongoing performance problems or misconduct, the employee is not fired for a first offense, with the exception of incidents involving egregious behavior. Accordingly, the employee should have been warned about performance problems, given an opportunity and timetable for improvement, and advised of the consequences for not improving.
And, even in the cases of serious misconduct that warrants immediate termination, the employee should be aware of the likelihood of this consequence from the employer's handbook or other distributed policies. 5. Analyze the risk for legal claims as a result of the termination. For example, you should consider the potential for the following claims: -- Discrimination, especially if the employee was not treated consistently and is a member of a protected class (such as female, disabled, minority, over 40, etc.); -- Wrongful discharge, if policies were not consistently applied; -- Violations of the Family and Medical Leave Act, if the employee was terminated while on leave; -- Failure to accommodate claims under the Americans with Disabilities Act, if the employee was terminated for nonperformance of the job and had health problems; and -- Wage and hour violations, if overtime or wages due were not properly paid. Continued on page 21
AIANC’s STREET WISE
Page 20
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com These misguided attempts to "soften the blow" can lead to claims of discrimination or wrongful discharge Continued from page 20 since the employee will likely assume that you are hiding the "real" reason for the termination. If you have reason to believe the employee may file a claim, you should consult legal counsel. You also should Instead, you should be factual and should not consider asking the employee to sign a release elaborate or interject personal opinions. In addition, don't agreement (a waiver of the right to sue the organization try to minimize the reason for termination to spare the in exchange for some benefit, such as money). This step employee's feelings or indicate that you don't agree with could limit legal exposure if you do not feel the the decision. These comments can be used against you termination decision was handled properly or if there is in a lawsuit. little documentation showing you followed your policies 9. Allow the employee to leave with dignity. While correctly. terminated employees should not be allowed to linger so 6. Carefully document the reasons for the long as to be disruptive to coworkers, you should allow termination. The employee's personnel file should enough time for employees to say goodbye and gather accurately reflect the reason for termination and include belongings. Avoid having a security escort unless there such items as performance appraisals reflecting is a legitimate concern about potential property damage problems and suggested improvements, counseling or theft or undue interference with other employees' memos, written warnings, and investigation results that work. document the employee's involvement. 10. Limit discussions of the termination to those 7. Plan the termination meeting. In particular, you individuals who have a legitimate need to know about it. should make sure you have considered the following Typically those people include the employee's issues: immediate supervisor, your supervisor, and legal counsel. Doing otherwise can lead to claims of -- Timing of the termination. Friday afternoon may not defamation, invasion of privacy, or other personal injury. be the best time since the employee has only limited options to take any positive actions to respond to the HR Matters E-Tips is a free service of Personnel termination (such as look for a new job). In this situation, Policy Service, Inc. To subscribe, go to: the weekend becomes a fertile time for getting angry http://www.ppspublishers.com/ezsignup.htm about the action and considering litigation. Thus, Š 2014 Personnel Policy Service, Inc. All Rights terminating earlier in the week probably is better. Reserved. -- Privacy. To preserve the employee's dignity and FORWARD THIS ISSUE: We invite you to forward privacy, notice of termination should be given in a private HR Matters E-Tips to a colleague or friend. meeting.
Ten Tips for Effective Terminations Q&A
-- Attendance at the meeting. Typically, two employer representatives, normally the immediate supervisor and a representative of the human resources department, should be present so that one can act as a witness to the discharge conference. -- Final paperwork. Have necessary items such as the COBRA health insurance continuation notice and final pay available. 8. Give the employee a factual reason for the termination. Do not avoid giving a reason and rely on the "at-will" relationship (which technically allows employers to terminate any at-will employee at any time and for any lawful reason or even for no reason). Also, do not call the termination a "layoff," if the termination is in fact the result of performance problems or work rule violations. AIANC’s STREET WISE
Page 21
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
Commercial general liability auto exclusion Consider the situation above but instead of a son driving his father's vehicle imagine an employee driving his employer's car and driving home a customer whom he has been entertaining. The employee stops at another customer's business and sustains the broken leg. The rest of the story is the same with
If you have the knowledge to see the problem, you will also have the ability to discover the solution.
the same tragic ending. However, the widow sues the insured employer for its employee's actions.
Your Producer Online subscription from The Rough Notes Company, Inc., can help you find solutions to problems in your current customers’ insurance protection and to use that solution-finding-knowledge in soliciting and gaining new customers. The Producer Online IN ACTION is a monthly reminder of how you can turn the knowledge gained from The Producer Online into powerful sales opportunities.
The CGL Coverage Form also has a very strict aircraft, auto, or watercraft exclusion but the question for the courts is whether it applies. Click here to review the PF&M Commercial Liability Coverage Aircraft, Auto, and Watercraft Exclusion Analysis.
Liquor-related losses
A very bad combination A tragic event occurred in 1975 but we are presenting this court case now as a valuable reminder of how alcohol and cold
The tragedy of this court case is that a person died due
temperatures can be fatal. A young man used his father's car
to a combination of intoxication and negligence. If the
to drive an intoxicated friend home. The young man decided to
parties could do it all over again, they probably would
stop at a local bar on the way home to get a drink while the
have done things quite differently.
friend remained in the car. He stumbled while leaving the bar
Your customers will probably appreciate a timely
and broke his leg.
reminder at this time of year when the weather can be
The young man was taken to the hospital, but he did not
treacherous, and spending time inside drinking with
communicate the information about the friend. The
friends and clients is common.
temperature dropped to dangerous levels that night and the
Click here for an emarketing article you can use in your
young man's friend died because of the low temperature.
various communications to encourage customers to be aware of how drinking can affect them and others.
The young man's father's Homeowners insurer denied coverage when the friend's widow filed a wrongful death lawsuit against the father's son. Click here to see if the courts agreed with the carrier that the death was due to a motor vehicle and was not covered.
Homeowners motor vehicle exclusion
www.AllianceInsuranceAgentsNC.com
The 1975 and the current Homeowners policies are similar in that both exclude motor vehicle-related incidents. Another similarity is that, as in 1975, parties continue to disagree with respect to accidents that occur in or around automobiles that are not necessarily directly related to operation of the vehicle being excluded. Click here to review the PF&M Homeowners' Motor Vehicle Exclusion Analysis.
AIANC’s STREET WISE
Page 22
February 2015
For 135 years Rough Notes has been dedicated to making you a better agent. Become the coverage expert with the Producer Online-Plus Producer Online-Plus Includes Commercial Lines Risk Evaluation Survey Personal Lines Risk Evaluation Survey Policy Form & Manual Analysis Coverages Applicable The Insurance Marketplace Marketplace Cybercast
ACORD Forms Library Business Building Letters Insurance Words & Their Meanings E-marketing for Agencies Rough Notes Magazine In Action Monthly Newsletter Videos for your Website
Producer Online Plus is designed with the powerful technology and technical insurance content you’ve come to expect from Rough Notes. Narrative overviews of operations and exposures for more than 650 classes of business are just a small part of what is included in this product.
Get yo 30-Day ur Free Trial o Inform ationa r an lV www.r oughn ideo at otes.co m
Go to www.roughnotes.com for your Free 30-Day Trial Or call 800-428-4384 To order go to: http://shoppingcart.roughnotes.com/produceronline/ Enter Code: 1POLAAIANC
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
How are you confirming coverages that have been declined ? Agents E&O Tips http://www.agentseotips.com/ While it may have been personally delivered, there is also the chance that it was sent to them electronically or possibly delivered over the phone. It is important to make it clear that “no coverage is bound at this time”. In addition, if the client contacts the agency to advise them of the rejection of the coverage, the agency should promptly respond by e-mail referencing the original request and confirming the insured’s decision and date. An e-mail from the client is ok but many agencies indicate that they struggle to get this degree of confirmation from their clients. So, if they won’t send it to you, you send it to them.
Posted on February 9, 2015 by Curt Pearsall While it would be nice if your clients bought every coverage you proposed, unfortunately that is not the reality. So whether the client is brand new or one that you have had for a number of years, there will be coverages that you proposed that they decline. One of the keys involves the manner in which you not only record their declination but also secure / provide written confirmation of their decision. There are a number of issues that an agency needs to deal with regarding declined coverages. An obvious key one is that the confirmation reflecting the declined coverages is handled promptly. This does not mean when the policies are delivered or when you get around to it, it means promptly or said another way “as soon as possible”. Some agencies will use the proposal and request that the client sign off on those coverages that were not purchased. This method is popular but not necessarily totally effective. If an agent were going to use this approach, the key is that they secure the signature of the client on ALL declined coverages. Without this degree of discipline, the client could contend that since they did not since off on it, that means that they wanted it.
Attention: Insurance Companies, MGA’s, Premium Finance Companies & Insurance Industry Vendors: Check out the rates for the most cost effective method of keeping your message in front of your customers …
Probably the most advocated position involves a written confirmation of some sort back to the client memorializing their decision. This can be handled by a couple of different ways: Provide the insured with a manual or electronic copy of the new or renewal proposal marked up with each change and the revision date. Upon binding, provide a “thank you for your business” letter that includes a point-by-point reference to the accepted and declined coverage. There are also times where the client requests a midterm coverage proposal, maybe for cyber coverage or an umbrella. AIANC’s STREET WISE
Page 24
The Independent Insurance Agent. Ad Size
Monthly
Pre-Pay 6 Issues
Full Page (7.5” x 10”)
$275.00
$1450.00
Half - Page (7.5” x 5”)
$150.00
$800.00
Quarter-Page (3.75” x 5”)
$75.00
$375.00
1/8 - Page (3.75” x 2.5”)
$50.00
$250.00
Questions? Contact Eddie K. Emmett at eddie@fyiexpress.com or (770) 312-2342. HU
UH
February 2015
Â
Go to www.EandOQuote.com for more information
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
FREE MINI-MOBILE SITE www.AllianceInsuranceAgentsNC.com
Member Benefits
Scan QR Code to see FREE MOBILE SITE: Fully engage your visitors by building a fullyfunctional, smartphone-friendly mobile site in minutes with our Mobile Site Builder. Insert pictures, videos, maps, vCards, contact forms, or other elements. No programming skills required! Join today and get Training & Software On Demand Links to Tutorials & Free Software in Member's Only section of "How To" Library
FREE YOUTUBE MARKETING GUIDE
FREE VIDEO CREATOR SOFTWARE
FREE VIDEO CREATOR SOFTWARE: At AIANC, we live by two basic philosophies: make it simple, and make it beautiful. And we're proud to offer you the simplest way to create the most beautiful videos online, whether for yourself, your friends, your family, or your business. Join today and get Training & Software On Demand
FREE VIDEO E-MAIL SOFTWARE
Links to Tutorials & Free Software in Member's Only section of "How To" Library AIANC’s STREET WISE
FREE VIDEO E-MAIL: Software that offers everyone the ability to create and receive video messages in a self-contained, spam-free environment. With no client to install, you can start using the software immediately with any browser, on any platform.
Page 26
February 2015
More Information about AIANC Membership at www.AllianceInsuranceAgentsNC.com
http://www.ncdoi.com February 11, 2015 -- Goodwin Announces $26 Million in Recoveries and Savings for North Carolinians RALEIGH -- Insurance Commissioner Wayne Goodwin today announced that the North Carolina Department of Insurance saved or recovered more than $26.6 million for North Carolinians in 2014... February 10, 2015 -- Couple Accused of Burning Wallace Home for Insurance Money RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrests of Darnell Rivers, 51, and Shaunetta Fairley, 31, both formerly of 155-E Carol C MHP, Lot 27, Wallace... February 10, 2015 -- Man Accused of Making False Burglary Claim in Thomasville RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Robert Shawn Reedy, 37, of 3583 Cedar Lane, Roanoke, Va.; he is charged with one count each of insurance fraud and filing a false police report... February 6, 2015 -- Tabor City Man Arrested for Alleged Car Insurance Fraud RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Norrel Miller, 25, of 67 Vinegar Hill Road, Tabor City; he is charged with one count each of insurance fraud and attempting to obtain property by false pretense...
January 16, 2015 -- NCDOI Arrests High Point Woman for Alleged Forgery RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Deaven Lea Brooks, 36, of 112 Price St., Apartment C, High Point; she has been charged with one count each of insurance fraud and forgery... January 16, 2015 -- Durham Man Accused of Insurance Fraud After Car Accident RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of David Edward Goodman, 50, of 3203 Hursey St., Durham; he was charged with one count each of insurance fraud and attempting to obtain property by false pretense... January 9, 2015 -- Insurance Companies Request Rate Change for Mobile Home Policies RALEIGH -- The North Carolina Department of Insurance received a mobile homeowners insurance rate filing from the N.C. Rate Bureau the afternoon of Wednesday, Dec. 31, 2014. The N.C. Rate Bureau is not part of the Department of Insurance and represents all companies writing mobile homeowners insurance in the state...
February 2, 2015 -- First Full Year a Success for North Carolina's Captive Insurance Program RALEIGH -- Insurance Commissioner Wayne Goodwin is pleased to report that North Carolina's captive insurance program exceeded expectations in its first full year in operation... February 2, 2015 -- Insurance Agent Arrested for Alleged Embezzlement in Wilmington RALEIGH -- Insurance Commissioner Wayne Goodwin today announced the arrest of Amneris Deleon, 34, of 2117 Princess Place Drive, Wilmington; she is charged with one count each of embezzlement by an insurance agent and accessing a computer to defraud or obtain property...
AIANC’s STREET WISE
Page 27
February 2015
When was the last time you took a closer look at your agency? It all boils down to answering two main questions: 1. How do you get new clients? 2. How do you keep current clients? AIANC is devoted to finding innovative (& usually free) methods you can use to rejuvenate your agency.
FREE VIDEO CREATOR SOFTWARE: At AIANC, we live by two basic philosophies: make it simple, and make it beautiful. And we're proud to offer you the simplest way to create the most beautiful videos online, whether for yourself, your friends, your family, or your business.
For example …
Scan QR Code to see FREE MOBILE SITE: Fully engage your visitors by building a fullyfunctional, smartphonefriendly mobile site in minutes with our Mobile Site Builder. Insert pictures, videos, maps, vCards, contact forms, or other elements. No programming skills required! FREE VIDEO E-MAIL: Software that offers everyone the ability to create and receive video messages in a selfcontained, spam-free environment. With no client to install, you can start using the software immediately with any browser, on any platform.
FREE E-MAIL MARKETING SOFTWARE: This software features and integrations allow you to send marketing emails, automated messages, and targeted campaigns. And the detailed reports help you keep improving over time. FREE WEB SITE: Check out the step-by-step tutorials to create your own free website, browse through the FAQs, and post your own questions for support. FREE EMBEDDED LINKS IN YOUTUBE VIDEOS: It’s no secret that online video is exploding. According to Cisco, more than 90% of Internet traffic is video. Companies today understand they need to do more than just put videos on their website and share them on social networks. They need to find a way to drive more engagements while people are actually viewing their videos – in other words, they need to turn viewers into customers.
Join today at www.AllianceInsuranceAgentsNC.com
All this and more for only $250.00 per year.
Free Software to find Commercial Insurance Leads Here’s a sample looking for Contractors in Charleston, SC