Spring 2020
Adjusting to business during a pandemic
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What's
Inside
Page 10
Contents
10 ICYMI: Big I Kentucky’s COVID-19 Town Hall 14 2019-2020 Emerging Leader Committee 16 Emerging Leader Chair Spotlight: Adam Sheridan
Page 16
18 A Survival Guide for Work from Home Newbies 21 E&O Risk Management and the Coronavirus (COVID-19) 24 Key Leadership Practices for Virtual Teams
Page 24 The Kentucky IA is the official magazine of Big I Kentucky, and is published quarterly. Office Address 13265 O’Bannon Station Way, Louisville, Kentucky 40223. Telephone: (502) 245-5432 Email: info@bigiky.org Fax: (502) 245-5750
26 Working Remotely and Cyber Security During the COVID-19 Outbreak
In Every Issue 4 From the Chair
13 Industry Partners
5 From the Commissioner’s 30 Advertiser Index Desk 30 Classified Ads 9 Education Offerings 30 Social Media Links 11 Upcoming Events
All advertising and editorial submissions are welcome.
Mission Statement Create value for our members through innovative resources and legislative advocacy while fostering industry relationships. Spring 2020 - Kentucky IA | 3
OFFICERS Ray A. Robertson, CIC Chair, Mt. Sterling 859.498.3410
Kevin T. Desmond
Chair-Elect, Bellevue 859.491.5100
Whitney L. Floyd, CIC
Vice-Chair, Henderson 270.827.3543
Allen J. Crawford, CIC, CSRM Treasurer, Somerset 606.679.6311
Stephen R. Kinkade, CPCU, AAI National Director, Leitchfield 270.259.5465
Aaron LaRue
Immediate Past Chair, Bardstown 502.348.0050
DIRECTORS Philip Anderton
Lousiville, 502.585.3277
Mark Linkous, CIC
Edmonton, 270.432.3491
John Purdom
Murray, 270.753.4751
Carolyn Reynolds
Richmond, 859.623.8485
Eric Schumacher
Maysville, 606.759.5663
Adam Sheridan
Emerging Leader Chair, Somerset 606.679.6311
Chris J. Wiseman, CIC
Bowling Green, 270.781.2020
Laura Yount, CIC, CISR
London, 606.878.0100
STAFF
Chair From the
Until March of 2020, I had no idea what Social Distancing was; the letters PPE did not mean Personal Protective Equipment, and I certainly was in no hurry to get home to watch the Governor’s daily press conference. A few crazy weeks have turned our world upside down and now going to work is a way to get out of the house. As insurance agents, we are accustomed to being called upon during the bad times of our client’s lives. A fire, a windstorm or an auto accident is when we step in and try to “save the day.” Now we are asked about coverages available to help businesses survive shutdowns and loss of business income. I certainly have been reading and watching the information that has been made available by Big I National and Big I Kentucky. Big I has been a tremendous resource for members who are looking for answers. Visit Big I Kentucky’s Coronavirus Resource Page at www.bigiky.org/coronavirus. I have not been surprised by the quick response of our industry to lock office doors or allow employees to work from home. Our industry is that of the unsung hero. We enjoy the interaction with clients and love that we are in the “peace of mind business” each day. I did not have to wait for Andy Beshear (the Governor of KY) to state whether insurance agencies were essential, the emails and calls from customers had already proven that fact to me. I hope that our members are rejuvenating and have charged their batteries during the downtime to be ready for the next crisis, whether it be a natural disaster, changes in the marketplace or a new normal for our industry. We are an essential group of people for our industry and for the clients who depend on our expertise to help them through the good times AND the bad times. “Just a Good Ol Boy” (Think theme from Dukes of Hazard)
Tara T. Purvis
President & CEO
Amy Good
Financial Services Director
Katie Hines
Membership Services Director
Nikki S. Robins
Communications Director
Kristie Weyer, CISR
Insurance Services Director
Cassie Young
Workforce Development Director
4 | Kentucky IA - Spring 2020
Ray Robertson
From the
Commissioner’s Desk I never expected to deal with a pandemic during the first months of my return as Commissioner of the Department of Insurance, but here we are. As Governor Beshear says, “we will get through this. We will get through this together.” I believe we will get through the pandemic together, but we must follow the governor’s directives of being healthy at home and to practice social distancing. During this time, the best source of information, as an insurance agent, is DOI’s website: http://insurance.ky.gov. The department updates information regularly about the COVID-19 health emergency and our response to it. Gov. Beshear has declared the insurance industry as “life-sustaining businesses” and as commissioner, I have designated the insurance business as essential services. Because of this designation, our number one directive is this: Insurance company employees should seek to work remotely, or behind locked doors when possible, and should follow CDC guidelines that include social distancing and other recommended practices when in-person interaction is necessary. I would also ask you to stay healthy because your policyholders need you. Best wishes, Sharon
THE FOLLOWING FREQUENTLY ASKED QUESTIONS ARE PROVIDED FOR YOUR CONVENIENCE: Will insurance exams take place? No, not until further notice. What should I do if it is time for me to take my insurance exam? If your testing window closes during this period, you should email a request for an extension. The email address is DOI. AgentLicensingMail@ky.gov. I own an insurance company/agency. Do I have to shut down? Insurance offices are exempt from closing, but MUST FOLLOW CDC GUIDELINES for social distancing. What are the CDC guidelines? • Main distance of 6 feet between persons; • Ensure employees practice appropriate hygiene measures, including regular, thorough handwashing; • Ensure that employees who are sick remain home; and • Clean and disinfect frequently touched objects and surfaces every day. Use these guidelines to stop the spread of Coronavirus (COVID-19) in our state.
What actions has the Department of Insurance taken during the COVID-19 health emergency? • Waived Cost-Sharing for consumers with private insurance plans • Worked with insurers to allow early refills of prescriptions • Ensured First Responders/Healthcare providers are eligible for Workers Compensation • Working to extend Continuing Education requirements/deadlines and testing for all licensees • Implemented telecommuting procedures for DOI staff to work from home • Suspended temporarily routine pharmacy audits • Recognized the insurance industry as an essential service in times of crisis under guidance from the United States Department of Homeland Security How can I find the latest information from the Department of Insurance? For the latest updates visit: http://insurance.ky.gov How can I find more information about Kentucky’s response to COVID-19? For more information about Kentucky’s response to COVID-19, click https://govstatus.egov.com/kycovid19.
Reminder: The Department of Insurance has relocated to the Mayo-Underwood Building, located at 500 Mero Street, in Frankfort. If you visit, please enter through the first floor front doors and speak with the receptionists. Our mailing address remains P.O. Box 517, Frankfort, KY 40602-0517. Our phone number is 502-564-6026. The Kentucky Department of Insurance regulates the Commonwealth’s insurance market, licenses agents and other insurance professionals, monitors the financial condition of companies, educates consumers to make wise choices, and ensures Kentuckians are treated fairly in the marketplace.
Spring 2020 - Kentucky IA | 5
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Big “I” Professional Liability
Deduc�ble Reduc�on Feature Examples The DEDUCTIBLE REDUCTION is a unique coverage feature included with your Swiss Re Corporate Solu�ons Insurance Agents and Brokers Professional Liability Coverage. The coverage has a dual benefit where it not only reduces the severity of an E&O claim, but also saves your agency thousands in deductible costs. Below are five examples where policyholders were able to take advantage of their policy’s deduc�ble reduc�on feature. Please refer to your Westport or First Specialty Insurance Corpora�on Policy Form for details. The examples are for illustra�on purposes only and should not be construed as actual claim events.
Example 1 Prior to renewal, an Account Manager (AM) met with a customer and reviewed their exposures using a coverage checklist. During the conversa�on, the AM discussed increasing the underlying homeowners & auto limits. The AM offered an umbrella policy as a cost-effec�ve way of increasing liability limits on both policies. The client declined both op�ons due to the premium and signed the checklist acknowledging the coverages were available. Following an at-fault automobile accident with another vehicle, the client caused significantly more bodily injury damage then had coverage available on their auto policy. With the client’s personal assets exposed, they filed a suit against the agency for providing inadequate limits of liability. An E&O claim was submi�ed to Swiss Re Corporate Solu�ons and because of the AM’s use of a coverage checklist, signed by the client and included in the file, this is an example of a policy holder taking advantage of their policy’s Deduc�ble Reduc�on feature.
Example 2 A store owner had a disagreement with an employee who was ul�mately terminated. A few months later, as a cost cu�ng measure, the store owner decided to not renew his Employment Prac�ces Liability (EPL) policy. The agency’s CSR spoke with the store owner and advised him of his need to purchase an Extended Repor�ng Period (ERP) endorsement and proceeded to document the file. Following the conversa�on, the CSR mailed a le�er explaining the purpose of an ERP, as well as the terms and condi�ons of purchasing the endorsement. A few days prior to expira�on of the Basic Extended Repor�ng Period, the CSR emailed the store owner yet another reminder. Irritated with the number of le�ers and emails the store owner received from the agency, he quickly replied to the email saying, “I don’t want to buy any more insurance!”
A few months later, the terminated employee filed a suit for wrongful termina�on. The store owner contacted his EPL carrier and was enraged to find out he would not have coverage for this event. He claimed he was never instructed regarding the purpose of the ERP endorsement. Faced with a lawsuit of his own, he filed a suit against the agency for failing to secure an ERP endorsement. An E&O Claim was submi�ed to Swiss Re Corporate Solu�ons; due to the agency’s thorough documenta�on of the ERP offer to the store owner this policyholder was able to take advantage of the policy’s Deductible Reduc�on feature.
Example 3 A producer wrote a Commercial General Liability policy for a Petroleum Storage Equipment Company whose business ac�vi�es involved sales and servicing of petroleum storage equipment. The producer was aware of the customer’s exposure to a pollu�on event and offered various pollu�on coverage op�ons during the sales transac�on. All offered addi�onal coverages were ul�mately declined by the customer. The producer documented the agency management system with the conversa�on and follow up email, both of which confirmed the offer and declina�on of the pollu�on coverages. A few of months later, a sizable pollu�on loss occurred, and a suit was filed against the Petroleum Storage Equipment Company. Soon a�er the company realized they were uninsured for this exposure, they filed suit against the agency for failure to provide pollu�on coverage. An E&O claim was submi�ed to Swiss Re Corporate solu�ons and the Deduc�ble Reduc�on feature was u�lized based on the follow up email sent to the customer confirming coverage was offered and rejected.
Uninsured/Underinsured (UM/UIM) Motorist coverage rejec�on por�on of the applica�on AND failed to advise the importance of this coverage. An E&O Claim was filed with Swiss Re Corporate Solu�ons. During the Claims Examiner’s review an e-signature authen�ca�on form was located which documented the date, �me, email and IP address when the policy applica�on documents were emailed to the customer. The agency also had documenta�on indica�ng when the insured signed and returned the documents electronically, documents which included the client’s completed UM/UIM coverage rejec�on form. A coverage checklist was used by the agency that further indicates UM/UIM coverage was discussed and a note in the Agency’s Management System confirms the coverage was discussed at length and ul�mately rejected due to cost. Because of the mul�ple documents and recorded discussion in the customers file, this is another example of a policy holder taking advantage of their policy’s Deduc�ble Reduc�on feature.
Example 5 An agent received a claim le�er from a customer alleging the agency did not duplicate a prior policy’s retroac�ve date, leaving the customer uninsured for a storage tank system. Included in the agency’s customer file was the ini�al coverage offer for the tank system and a wri�en email confirma�on with the word “DECLINING” retroac�ve coverage for the storage tank in capital le�ers. The claim le�er was submi�ed to Swiss Re Corporate Solu�ons; based on the agency’s file including the offer le�er and email confirma�on, this policyholder was able to take advantage of their policy’s Deduc�ble Reduc�on feature.
Example 4 Following an accident with an Underinsured Motorist, a customer filed a suit alleging that the agency completed and electronically signed the
This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re, IIABA and/or IIABA’s subsidiaries and af�iliates shall not be held responsible in any way for, and speci�ically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. If speci�ic legal or other expert advice is required or desired, the services of an appropriate, competent professional, such as an attorney or accountant, should be sought. The views expressed in this article do not necessarily represent the views of the Swiss Re Group ("Swiss Re") and/or its subsidiaries and/or management and/or shareholders and IIABA and/or IIABA’s subsidiaries and af�iliates. Coverage is subject to the terms, conditions, and exclusions of the actual policy, which forms the contract between the insured and the insurance company. Available coverages may vary by state.
Be more than an insurance agent.
Be the hero your clients can count on. Our agent partnerships are powerful. By developing tailored insurance products and high-level customer experiences, we give our agents the ability to deliver the protection their clients deserve. And, with every EMC policy, agents can help clients fight off costly risks, report claims in a flash and get them safely back on their feet. It’s this combination of innovation and service that makes an EMC agent a real hero.
www.emcins.com ŠCopyright Employers Mutual Casualty Company 2020. All rights reserved.
ICYMI:
Big I Kentucky’s COVID-19 Town Hall
By Rick Pitts
Kentucky and Indiana recently hosted a “Coronavirus Town Hall Meeting” to discuss the exceptionally fastmoving developments for the insurance industry. I was joined on the panel by Representative Bart Rowland from Tompkinsville and Representative Matt Lehman from Berne, Indiana. Some of the insights from our meeting: Probably the single most significant issue for the insurance industry is whether the stay-at-home or shelter-in-place orders will permit insureds to trigger business income or business interruption policies. The answer within the industry has been a virtually unanimous “no” when we consider standard policy language. Typically, business interruption is triggered by “property damage” or “order of civil authority.” Of these two, only “order of civil authority” has a real possibility of being a coverage trigger. Even if the insuring clause can be met – which remains an open question – most policies contain exclusions for environmental losses or perhaps “communicable disease.” These make coverage problematic at best. While neither Kentucky nor Indiana seem to be headed in the direction of a legislative reversal of this, there are legislative movements in other states that are gaining some traction. Wes Bissett of our national association reports: No state has mandated that insurers compensate businesses for financial losses resulting from the COVID-19 crisis as part of a policyholder’s business interruption insurance coverage but bills of this nature are being introduced in an increasing number of states. Representative Rowland’s participation in the virtual Town Hall was exceptionally well received and greatly appreciated. He explained what was going on in
Frankfort, including the key Kentucky Executive Orders 220 and 257, which declared a state of emergency (220 as to insurance; 257 generally). Executive Order 220: • Waives copays, deductibles, cost-sharing and diagnostic testing fees for private insurance and state employees • Initiates changes to Medicaid, including eliminating prior authorization and fees associated with testing or treatment for the coronavirus. Executive Order 257 closed all non-life-sustaining businesses to in-person traffic. It also identified insurance services as life-sustaining businesses. Representative Rowland explained the Department of Insurance’s Announcement that while personal auto policies generally do not generally cover deliveries, the Department has said that “insurers shall not deny a claim under a personal automobile insurance policy solely because the insured was engaged in delivery services on behalf of a business impacted by the closures necessitated by the Governor’s Executive Order.” Representative Rowland also reported on Senate Bill 150, which, among other things would do the following (as of this writing it is awaiting gubernatorial signature): • Expand various Unemployment Insurance provisions including: allowing for independent contractors and self-employed individuals to apply and mirror federal unemployment insurance changes • Mirror the state tax filing deadlines to the Federal tax deadlines, but also waives penalties and interest for delayed state tax filings • Allow health care providers to utilize telehealth technologies to see patients and requires those Spring 2020 - Kentucky IA | 10
visits to be reimbursed the same as a face to face visit • Allow for local alcohol sales as part of a restaurant providing take out or carryout services The provisions in SB 150 are only to last as long as the State of Emergency lasts and the bill requires the Governor issue an end date of the State of Emergency. Other impacts which we all may encounter are dizzying in their variety and number: worker’s compensation compensability, employment and EPL issues, cyber exposures in a work-at-home environment, and claims handling are all among the topics we may be challenged with in the months to come. After our virtual Town Hall ended, it all seemed a bit overwhelming. So, I took a walk and got some help from a most unlikely source. From the printing, I could sense that the child was just learning capital letters, so it took me a few seconds to read the message. I eventually understood it said, “KInD is best.” It was chalk-written on the neighborhood sidewalk. That was the message on the walk out. On the same sidewalk coming back, I was greeted by a second chalk message: “You got this.”
With our First Call Free Legal program, all members receive 30 minutes of free legal consultation per year with our general counsel to discuss any insurance or agency related matter.
Richard S. Pitts is Big I Kentucky’s General Counsel and part of a member benefit, First Call Free Legal.
UPCOMING EVENTS JULY 20 Murray Road Show Murray Conference Center
JULY 30 LexingtonRoad Show Indiana Wesleyan University
JULY 21 Owensboro Road Show Greater Owensboror Chamber of Commerce
AUGUST 13 London Road Show London Community Center
JULY 22 Bowling Green Road Show Bowling Green Chamber of Commerce
AUGUST 19 Louisville Board CE Day Louisville Marriott East 8 am - 4 pm
JULY 29 Morehead Road Show Morehead Conference Center
11 | Kentucky IA - Spring 2020
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Coalition’s insurance products are offered with the ϔinancial security of Swiss Re Corporate Solutions and Argo Pro US (A+/A ratings by A.M. Best). Insurance products underwritten by Coalition Insurance Solutions, Inc. (CA License # 0L76155) Copyright © 2018. All rights reserved. Coalition and the Coalition logo are trademarks of Coalition, Inc. or its afϔiliates.
Thank You
2020 Industry Partners
BRONZE
SILVER
GOLD
PLATINUM
DIAMOND
(as of 04/01/20)
Kentucky Growers Insurance Co., Inc. State Auto Insurance Company
Anthem Blue Cross & Blue Shield EMC Insurance Companies Encova FCCI Insurance Group
Frankenmuth Insurance Grange Insurance Company ICW Group Insurance Companies J.M. Wilson
Market Finders Insurance Prime Insurance Companies SwissRe Corporate Solutions United Home Insurance Company
IIAK gratefully acknowledges these fine companies, our 2020 Industry Partners. Without their assistance, fees for the events and programs throughout the year would be significantly higher and/or the quality of the program would be restricted.
Spring 2020 - Kentucky IA | 13
CHAIR Adam Sheridan, CLCS
Reed Brothers Insurance Services Somerset Email: asheridan@rbisomerset.com
COMMITTEE MEMBER Dustin Million
Fritts-Million Insurance Mt. Sterling Email: dustin@frittsmillion.com
BOARD LIAISON Kevin Desmond
Desmond Brothers, Inc. Bellevue Email: kevin.desmond@desmondinsurance.com
14 | Kentucky IA - Spring 2020
CHAIR-ELECT Danny Yackey
Insuramax Louisville Email: dannyy@insuramax.com
COMMITTEE MEMBER Jared Pursley, AAI
Pedigo-Lessenberry Insurance Agency Glasgow Email: jpursley@plinsurance.com
STAFF LIAISON Katie Hines
Big I Kentucky Louisville Email: khines@bigiky.org
VICE CHAIR Danny Greene, CIC
Fifth Third Bank Edgewood Email: daniel.greene@53.com
COMMITTEE MEMBER Nathan Shanks
Logan Lavelle Hunt Insurance Louisville Email: nathanshanks@llhins.com
IMMEDIATE PAST CHAIR NICHOLAS ROLF
Gross Insurance Agency, LLC Ft. Thomas Email: nicholas.rolf@gross-ins.com
COMMITTEE MEMBER Chip Wilkins
Lawton Insurance Bowling Green Email: cwilkins@lawtoninsurance.com
COMMITTEE MEMBER Robbie Blain
Al Torstrick Insurance Agency, Inc. Lexington Email: rblain@altorstrick.com
COMPANY REP
COMMITTEE MEMBER Chandler Cohoon
The Murray Insurance Agency Murray Email: chandler@themurrayinsuranceagency.com
COMMITTEE MEMBER Logan Edelen
Roeding Insurance Lexington Email: ledelen@roeding.com
COMPANY REP
Maddie Dobson
Risk Placement Services, Inc Lexington Email: Maddie_Dobson@rpsins.com
Maggie Gravois
Progressive Lexington Email: maggie_graham@progressive.com
COMPANY REP Brody Layton
Kentucky Retail Federation Self Insurers Fund Frankfort Email: blayton@kyretail.com
COMMITTEE MEMBER Stephen Hill
McKinney & Blair, Inc. Jamestown Email: stephen@mckinney-blair.com
COMPANY REP Tommy Wong
KEMI Lexington Email: twong@kemi.com
Become an Emerging Leader
How we can help:
• Expand your professional network to include not only other agents, but also carrier representatives and other industry professionals • Strengthen industry connections and make new ones • Get more involved in your community • Develop leadership skills • Learn how to get more involved in the political process and advocate for important agent issues
Intrigued? Contact Katie! Katie Hines, Membership Services Director 502-245-5432 • khines@bigiky.org
Spring 2020 - Kentucky IA | 15
Getting to know
2019-20 Emerging Leader Chair THE BASICS
Name: Adam Sheridan Age: 31 Title: Commercial Account Executive Agency: Reed Brothers Insurance Location: Somerset, KY Education: Marketing & Sales major from Western Kentucky University What does your position entail? We are primarily a commercial agency, so prospecting/sales/marketing to new and current clients. Why insurance? I was in banking prior to insurance. I wanted to join the industry and wanted to learn from someone that does it the right way so I approached Allen Crawford about coming to work for him. What do you enjoy most about your job/industry? I’m a numbers nerd so I really enjoy using that to my advantage when comparing options, finding solutions, etc. for clients. What are your goals for your year as chair? Before the year started, we had some national awards on our radar, but now my goal is to not have anymore events cancelled because we’re quarantined.
16 | Kentucky IA - Spring 2020
GETTING PERSONAL
Tell me about your family I have been happily married to my wife Morgan since 2012. We have two sons, Griffin (6) and Boone (2) and a dog named Cooper. Biggest influence/role model Allen Crawford What accomplishment are you most proud of? Helped FCA start an annual Thanksgiving meal where we prepare and serve meals to those in need on Thanksgiving day. So far we’ve served nearly 6,000 meals in four years. You’re a true millennial. Do you think that helps or hurts you in this industry? Most definitely helps! Our industry is at the perfect time to mesh “old school” with “new school” to propel it to the next level. Advice for fellow emerging leaders Be involved and attend every event you can. There are relationships and opportunities that only come from being involved. It’s been incredible for me. Thoughts on the next Generation Z - (those born between mid-1990s and mid 2000s) They’re giving Millennials a bad name. Kidding…kind of. I think each generation has a unique perspective and can bring value to everyone whether it be relationships, communication, work, technology, etc.
FUN FACTS
What’s something unique about yourself? My wife and in-laws said to say that I’m a St. Louis Cardinals fan, but I said that’s only unique because people on this side of the state are stuck with the Reds! Pet Peeve Pessimism Farthest place you’ve traveled Los Cabos, Mexico Favorite movie/TV show Whatever my wife is watching on Netflix. Currently, that’s Blacklist. Favorite music/band I don’t really have one...I listen to it all iPhone or Android? iPhone What’s playing in your earbuds right now? Typically an insurance-related podcast Favorite restaurant in your hometown Morganfield: Feedmill; Somerset: Guthrie’s First job Radio Station running the sound board for St. Louis Cardinals, UK Football/basketball games and local sports. Something others don’t know or would be surprised to know about you This goes along with the “first job” question, but every Sunday my senior year I read the local news at noon live on-air. People always told me I had a face for radio. What’s something that you’re really bad at that you would love to be great at? Fixing things around the house. YouTube makes it look so easy! Uber or Lyft? Uber Guilty pleasure? Doughnuts or Apple anything Spring 2020 - Kentucky IA | 17
A Survival Guide
for Work from Home Newbies By Susan Toussaint We’re only four months into the new year, and 2020 will most likely be remembered as the year of the pandemic. The coronavirus is affecting the global economy, daily life and how and where you work. Recent Centers for Disease Control and Prevention guidelines recommend limiting large events and gatherings of more than 10 people. Many employers are taking heed by both grounding employees who frequently travel and instituting work-from-home policies for employees who typically work in a centralized business office. While there is an increase in remote working due to this national emergency, remote work isn’t new. It has been gaining traction as employees increasingly demand greater flexibility with both their hours and working conditions. Five million employees, or 3.6% of the workplace, work from at home half of the time or more, according to Global Workplace Analytics. Regular workat-home has grown 173% since 2005. Even with its growing popularity, a sudden shift to working remotely can leave you feeling a bit uneasy. After all, if you’re accustomed to working in an office environment full time, the change to working from home can leave you feeling both excited and discombobulated! Below are some helpful hints for the work-from-home novice, and some gentle reminders for those road warriors who suddenly find themselves longing for business upgrades. 1) Set boundaries. Work life has a certain cadence to it. You leave the house the same time every day, stop and grab a coffee and a muffin from the same café and arrive at your desk with enough time to send a text to your bestie or partner.
18 | Kentucky IA - Spring 2020
But now that you’re working from home, everyone seems to think your availability is greater and you have nothing to do. Time to set things straight. It’s important to let people know that, even if you’re working from home, you are still working. You have the same goals and your boss is expecting the same results. Set boundaries around your availability by letting your friends and family know your working hours haven’t changed. 2) Get organized. Not everyone has a dedicated office, so finding workspace can be a challenge. While working at the kitchen table may not be ideal, you can make it work for the short term. If you expect to be working remotely longer than the next eight weeks, it may make sense to convert a spare room to an office or to find a spot in the house you can use that will be less distracting. Move your charger station close to your workspace, find a comfortable chair and set your table up like you would a desk at the office. Creating a dedicated, work-friendly space will help you separate your personal and work life and keep you feeling organized during this time of transition. 3) Embrace technology. Working from home has its benefits, like throwing a load of laundry in the wash at lunch or taking a quick walk around the block with your four-legged friend. But remote workers also tend to feel isolated, especially in the early stages of transitioning to working from home. To prevent that feeling of loneliness, it is important to remain connected. The good news is many businesses already have tools in place like Zoom, Go to Webinar and Skype. These tools help to create a more intimate communication experience between workers and their
colleagues and clients. For some workers, getting comfortable with the video features can be a little intimidating, but if you focus on the purpose of your communication instead of how you look, you’ll quickly find these tools bring the outside world in and any anxiety you felt about video communication will quickly subside. A quick word to the road warriors who have been grounded: don’t despair. You’ll be earning hotel points and frequent flyer miles soon enough. Enjoy the extra hour or so in the morning normally set aside for getting to the airport and go for a walk, practice yoga or do an activity with your kids. This crisis will end soon enough, and you’ll be longing for the green, green grass of home once again. Susan Toussaint is cofounder and partner at Oceanus Partners, a ReSource Pro company. Oceanus Partners is a firm dedicated to helping insurance professionals working in all lines of business insurance to improve sales and client retention.
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20 | Kentucky IA - Spring 2020
E&O Risk Management
and the Coronavirus (COVID-19) A Message from Swiss Re Corporate Solutions
You are all very aware of the events of the last several weeks and the Coronavirus. We are not health experts and there are many others more qualified to give you that advice. We CAN, however, give advice regarding how to reduce the likelihood of an errors and omissions exposure as a result of this event. We have already become aware of some attorneys who are trying to take advantage of this situation for monetary gain against insurance agents. Our advice during this event is no different from what we have said in the past. If your agency has developed good practices, you will be better positioned to avoid problems. Here are the practices of a good insurance agency: • DON’T MAKE CLAIMS DECISIONS! Let the insurance carriers do that. • DON’T ADVISE YOUR CUSTOMERS IF CORONAVIRUS related claims are COVERED OR NOT! Let the insurance carriers do that. Please see sample letter for your use. • If a carrier takes the position that losses arising from the Coronavirus are not, or may not be covered, do not engage in advocacy asserting that “We thought it was covered...” That will simply be used by your client to prove that you knew the client wanted coverage for perils like the Coronavirus, but you failed to procure coverage. • Report all claims and potential claims to EACH AND EVERY CARRIER that could potentially have a policy that could apply. This includes CGL, Personal lines, Umbrella, Excess, Workers Compensation, Specialty and any other policy in place for your customers. • USE THE RESOURCES PROVIDED TO YOU BY THE IIABA. Visit the Big “I” Coronavirus resource page. It is a valuable resource for you, your staff and your agency that provides many sources of information.
• Be empathetic, but don’t tell anyone that something is covered or not. You can continue to tell them you feel sympathy for all affected by the Coronavirus, but customers MUST report a claim to their insurance carrier to determine if there is any coverage for the event. • Remember, if you executed an agency agreement with one or more insurance companies, you MUST report all claims or potential claims as required by that agreement, even if your customer tells you not to do so. • Maintain vigilant contact with your insurance carriers to determine what action THEY want you to take. • DOCUMENT, DOCUMENT, DOCUMENT! This continues to be the foundation of sound E&O risk management. DOCUMENT EACH AND EVERY TELEPHONE CONVERSATION, EMAIL, TEXT, TWEET, OR ANY OTHER TYPE OF COMMUNICATION WITH YOUR CUSTOMERS!
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• Assume that any telephone conversation with your customers or carrier claims representatives ARE BEING RECORDED. While some states prohibit recording of telephone conversations without advising that they are doing so, IT DOESN’T STOP SOME PEOPLE FROM DOING SO. • If you use social media for your business, make sure it is up to date! Do not make any promises that something may or may not be covered by insurance companies and policies. • DO NOT GIVE ANY STATEMENTS, RECORDED OR OTHERWISE, WITHOUT FIRST CONTACTING YOUR E&O PROVIDER. The Swiss Re Corporate Solutions/Westport Insurance Company/First Specialty Insurance Company claims staff are available if you have any questions about any communications you receive. • If you have a conversation with your customer that leads you to believe they may be fishing to make a claim against you, DO NOT HESITATE to contact our claims department. Please use this Westport claims form to report a claim or potential claim to Swiss Re. If any other carrier, please review your policy form for claim reporting instructions or contact me directly should you need additional direction. • DON’T MAKE CLAIMS DECISIONS! DON’T ADVISE YOUR CUSTOMERS IF SOMETHING IS COVERED OR NOT! Let the insurance carriers do that. We know this was stated before, but it must be ingrained in your mind.
assist in the insurance claims processing needs of your customer(s) who have been affected by the catastrophe. The catastrophe must be a declared catastrophe by the Property Claims Services. A $500 deductible for each catastrophe shall apply. Limits provided by this paragraph are part of and not in addition to the limits provided by this POLICY.” We hope that this will help you as this event progresses. If you should have any questions, please let us know. ________________________________________ This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders. Copyright 2020 Swiss Re
• If the Coronavirus ends up being declared a “catastrophe” by the ISO Property Claims Service, you may be eligible under your Westport policy for “Cat Extra Expense” benefits: “CATASTROPHE EXTRA EXPENSE. We will pay up to $25,000 per catastrophe subject to a per POLICY PERIOD aggregate limit of $50,000 for the actual extra expenses incurred by you as a result of a catastrophe during the POLICY PERIOD beginning on the date of a catastrophe and for thirty (30) days thereafter. The extra expense incurred must be incurred by you only to
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Key Leadership Practices for Virtual Teams By Donna Dennis, PhD
We are living in an environment where circumstance forces change! Work teams everywhere have been forced to shift quickly to a work from home setting. The MyAgencyCampus team reached out to virtual team leadership expert Donna Dennis, PhD to learn more about “Key Leadership Practices for Virtual Teams.” See below for some just-in-time recommendations. Both leaders and team members must cope with many other challenges. A study conducted by the Business Research Consortium (BRC) in association with American Management Association survey of 1,500 individuals revealed the following seven suggestions for companies that want to improve the efficiency and effectiveness of their virtual teams. 1. Remember that good virtual leadership is different. It is tempting to believe that traditional leadership qualities are so general that they easily translate to virtual team leadership. Unfortunately, that is just not true. 2. Emphasize communication even more. Yes, nearly every leader has been told to “communicate, communicate, and then communicate some more.” What is true for leaders in general is doubly true for virtual leaders. In fact, it’s usually true for all virtual team members. Fully 72% of respondents to the BRC survey strongly agreed with the idea that virtual teams require more team communication than do co-located teams.
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3. Adjust to the medium. The study shows that team member engagement is strongly influenced by the degree of visual feedback members are getting. For example, participants in voice-only virtual meetings (the kind so common in the corporate world today) are much less likely to be engaged than participants in face-to-face meetings and in meetings with high-quality videoconferencing. Without a visual element, leaders must do things such as: ü Pick up on more subtle cues (such as tone of voice) ü Know nuances of cross-cultural communication ü Ask more questions to get to a common understanding of a problem or an issue 4. Do more to establish trust. Because virtual team members often lack the time and opportunities to talk to each other informally, trust can be hard to build. The best virtual leaders tend to build “swift” trust, knowing that distance makes it more difficult. They provide goals, roles, responsibilities, strategies, and a vision to create a common purpose and shared objectives. They establish agreements and make expectations clear so that all team members understand responsibilities and proper etiquette. 5. Develop robust processes and, where needed, structures. Not only must virtual leaders make expectations clear, they also must establish more checkpoints with explicit guidelines.
6. Reduce or avoid “storming” when possible. Back in the 1960s, Professor Bruce Tuckman developed the idea that teams need to go through four stages: forming, storming, norming, and performing. Virtual teams are different in that the “storming” stage (during which different members strive for a time to put forward their ideas) is often curtailed. This does not mean virtual teams need to avoid all disagreements and conflicts, only that leaders and members should be proactive and handle different perspectives right away, as opposed to letting them linger. 7. Devote resources to development. Most organizations do not develop leaders and other employees in the art of virtual teaming. Yet, the BRC study indicates that a lack of experience among members of virtual teams is a serious challenge. Therefore, we think it pays to educate not only leaders but also potential team members about how to thrive in a virtual team environment. The study also indicates that firstlevel and middle managers tend to have fewer virtual leadership skills than senior managers and project managers. About Donna J. Dennis, Ph.D: Donna is a leadership development professional specializing in solutions for leaders working in virtual and remote teams. Earlier in her career, Donna worked for, Chubb and Son, Inc as well as other corporations in various leadership development positions. Donna’s teaching academia experience includes The Wharton Business School, the University of Pennsylvania and Rider University. MyAgencyCampus: Online courses for training agents and brokers including property and casualty new hire curricula, business skills for sales and service team members and upskilling new leaders. Visit www.myagencycampus. com (An offering from New Level Partners LLC) If you are interested in scheduling a webinar on Virtual Team Leadership, please contact aschroeder@newlevelpartners. com JM Wilson 100th KY Indep Agent Outlines.indd 3
12/5/19 11:34 AM
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Working Remotely and Cyber Security
During the COVID-19 Outbreak
By Angela P. Doughty & Erica B. E. Rogers The number of positive cases of COVID-19 is rapidly increasing throughout the United States, requiring more and more employers to rely on employees working from home. While this is a necessity under current conditions, especially as state and local government agencies require that we “shelter-in-place,” it is not without creating other business risks such as cyber security breaches. The work from home dynamic creates a very opportunistic situation for hackers and phishers. Every home device or wireless connection is a potential entry point. Moreover, with employees justifiably focusing on other things – their children, pets, health concerns, finances, etc. – data security is understandably not top of mind and employees’ typical safeguards against cyberattacks are down. We have seen a significant rise in COVID-19-related phishing attacks, where hackers are taking advantage of individuals’ fear and need for health, safety, and financial aid information. Unfortunately for businesses, a company can lose control over its data and be subject to significant legal liability due to a single email click or transmission of its data over an unsecured network. However, with appropriate planning, policies, and employee education and communication, companies can minimize risk and support their employees. While all businesses have different cyber security risks, there are some basic precautionary steps all businesses can take: First, companies can take advantage of employee free time by offering updated training materials.
From the hacker’s perspective, distracted employees using personal devices and Wi-Fi connections without encryption are the ideal targets. There are more opportunities to compromise a network and obtain access to personal data, financial data, and other sensitive data. From the employer’s perspective, though, employees at home have the extra time to educate themselves on this important subject. For example, every individual should be aware of phishing attacks, where fraudulent links about COVID-19 or federal relief packages (e.g., “Click here to claim your $1,200 check”) are especially appealing. Deceptive emails can be avoided if employees are educated about them. Second, companies can update their employment information security policies, including “bring your own device” (BYOB) policies, to contractually protect against employee wrongdoings, including, but not limited to: • misuse of personal emails to send or receive company emails; • synching and storing business information on personal cloud accounts; • misuse of social media to discuss company matters; • misuse of personal, unsecured connections to employer systems; • misuse of unsecure conference lines; • misuse of public, unsecure wireless connections; Spring 2020 - Kentucky IA | 26
• careless safekeeping of company devices in public areas, which increase the likelihood of theft; • misuse of easily identifiable passwords*; • improper disposal of paper materials containing sensitive information (e., not shredded); or • misuse of screen-sharing on video conferences. *Weak passwords are vulnerable to password cracking attacks. The best passwords contain many characters (fifteen) and are routinely updated. Better are multi-factor authentication passwords, for example, a password followed by an SMS message to authenticate that password with a second device.
Third, companies can adopt security measures for employees’ personal devices. Employers can offer up-to-date anti-virus software for employee personal devices. Employers can ensure personal Wi-Fi wireless networks include network security technology (e.g., Wireless Protected Access or “WPA2”). WPA2 is a type of encryption used to secure networks by, basically, scrambling the data to make it harder for hackers to perceive the data. Certain software allows companies to remotely access personal devices to make updates or patches to cover vulnerabilities or to delete information should that device be lost or stolen.
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Finally, companies can add banners to internal versus external emails so that employees can identify whether an email is coming from a safe source. Fourth, companies can update or adopt a data security breach response plan. Companies should review their data security breach response plan considering remote working. State data breach notification laws sometimes require immediate action, so ensuring a plan to comply ahead of time is paramount. If any employee believes he or she is responsible for a data breach or successful phishing scheme, the correct contact person for immediate notice should be obvious. © 2020 Ward and Smith, P.A.. All Rights Reserved. Both authors are employed at Ward and Smith, PA (wardandsmith.com) Angela P. Doughty, CIPP-US is a North Carolina State Bar Board Specialist in Trademark Law and a Certified Information Privacy Professional- United States (CIPP/US) that serves as the firm’s Director of Legal Process Management. She can be reached at apd@ wardandsmith.com. Erica B.E. Rogers is an Intellectual Property Attorney, and assists individuals, small businesses, and large corporations with a wide array of intellectual property matters. She can be reached at ebrogers@wardandsmith. com
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Classifieds Acquisitions Established Louisville agency interested in acquiring insurance agencies in Jefferson and surrounding counties. If you are interested in selling, merging, or need assistance with perpetuation, we would like to talk with you in confidence. Call R. Alex Rankin, CPCU or Philip Anderton, CIC, at Sterling G. Thompson, Co. at 502-585-3277
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Looking for Producers Independent with top best markets looking to expand presence in Jefferson, Oldham or Shelby counties. Wanting Personal lines Producer or book of business to move or purchase. All arrangements possible, in strict confidence. Please send inquiries to Turner Insurance Agency, 2460 Shelbyville Road, Shelbyville, KY 40065 or call Kurt Turner, CPCU at 502-633-6060.
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