February 2018 WI Independent Agent

wisconsin

INDEPENDENT AGENT FEBRUARY 2018

MAKE A DIFFERENCE: BE THE VOICE OF YOUR INDUSTRY

DONATE TO THE INSURING WISCONSIN PAC TODAY!

What’s New?

What’s Not?

Now a billion dollar company . . . and still growing! (Sales passed the mark in 2016.)

Secure financial strength that comes from being a member of the Berkshire Hathaway family.

Nationwide geographical scope.

Our A+ (”Superior”) A.M. Best Company Rating.

An increasingly robust product suite that features Workers’ Compensation, Businessowner’s Policy, Commercial Auto, Umbrella, and Professional Liability coverage.

Average annual growth in premium in excess of 25% per year for the past five.

Broader appetite for select risks (including Total Insured Property Values as high as $50 million for certain industries and risks).

Ongoing product and service enhancements to win renewals and keep a high retention ratio.

Our focus on being data-driven and using business intelligence to gain a competitive edge.

Higher A.M. Best financial size (i.e., “X”).

A superior combined ratio that (according to A.M. Best) outperforms our peers.

Enhanced infrastructure to support growth.

Our commitment to distribution through independent agents!

Balancing Change with Continuity!

ST

W RO T

Berkshire Hathaway

GUARD

Insurance Companies

We have agency appointments available.

Go to www.guard.com/apply!

ILIT Y AB

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wisconsin

INDEPENDENT AGENT FEBRUARY 2018

InsurCon2018. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Open Door Policy Make A Difference: Be the Voice of Your Industry. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Agency Operations What are Great Service Emails Made of?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Agency Management Mold Takes Over the #1 Spot in Pollution Claims. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Technology Un-Block Your Business 1.0 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Agency Management Duty (& Opportunity) to Read an Insurance Policy. . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Commentary from Counsel Wisconsin Supreme Court Decision. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Government Affairs Upcoming Wisconsin Supreme Court Elections. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Virtual University Insurance Coverage Letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Errors and Omissions Claims Made Versus Claims Made and Report Policies. . . . . . . . . . . . . . . . . . . . . . . . 24 Emerging Leaders Spotlight Kash Motlani, AAA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Risky Business Beware of the Beer Truck. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Members in the News. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

On The Cover…

Donate to Insuring Wisconsin Political Action Committee. Visit www.iiaw.com for more information.

What does IWPAC do?

IWPAC pools contributions from our members to support selected candidates for the Assembly, Senate and Governor’s office who share our business philosophies.

Why is IWPAC important?

For the same reason you tell your customers to purchase insurance — it’s an investment in your agency and your future that ensures your best interests are represented in the halls of the Capitol. Every day, legislation is introduced in the Legislature that could affect your business.

Food for Thought. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2017-2018 Executive Committee President............................................................ Lise Meyer Meyer Insurance - P.O. Box 633, Sauk City, WI 53583 President-Elect.................................................... Jason Bott Robertson-Ryan & Associates - 330 East Kilbourn Ave., Milwaukee, WI 53202 Secretary-Treasurer......................................Chris Costakis Avid Risk Solutions- 2501 Parmenter Street, Ste 200A Middleton, WI 53562 Chairman of the Board................................. Matt Weimer Diversified Insurance Solutions - 100 North Corporate Dr., #100, Brookfield, WI 53045 State National Director ................................Steve Leitch Leitch Insurance - P.O. Box 85, River Falls, WI 54022 2017-2018 Board of Directors Mike Ansay, Ansay & Associates 101 East Grand Ave. #11, Port Washington, WI 53704 Cindy Burns, Burns Insurance 500 South Central Ave., Marshfield, WI 54449 Marc Petersen, American Advantage-Petersen Group 15171 W. National Ave., New Berlin, WI 53151 Jack Riesch, R&R Insurance Services P.O. Box 1610, Waukesha, WI 53187-1610 Chad Tisonik, HNI 16805 W Cleveland Ave, New Berlin, WI 53151 Pam Utpadel, Universal Insurance Advisors 100 West Lawrence St. Suite 313, Appleton, WI 54911 Ryan Waite, Neckerman Insurance Services 6200 Mineral Point Road Madison, Wisconsin 53705 Darrel Zaleski, Spectrum Insurance Group 4233 Southtowne Drive, Eau Claire, WI 54701

WISCONSIN INDEPENDENT AGENT

2017-2018 Committee Chairs Agency Services ............................................Kim Dandrea M3 Insurance - N19 W24200 Riverwood Dr. Waukesha, WI 53188 Automation/Technology ...............Cathleen Christensen Hierl Insurance - P.O. Box 949, Fond du Lac, WI 54936 Emerging Leaders ..........................................Ryan Waite Neckerman Insurance Services - 6200 Mineral Point Road Madison, WI 53705 Employee Benefits.......................................... Mike Farrell David Insurance - 1300 South Green Bay Rd Racine, WI 53406

> A DVERTISERS & INFORMATION AAA Wisconsin................................................. 30 Amerisafe....................................................... 25 Badger Mutual................................................. 28 Berkshire Hathaway/Guard............................... 2 Big “I” Retirement Services.............................18 Emerging Leaders Social Event........................ 17 IIAW Pre-licensing Classes.............................. 20 IIAW CE............................................................. 21 The IMT Group.................................................. 13

Government Affairs .......................................Jeff Thiel R&R Insurance Services - P.O. Box 161 Waukesha, WI 53187

Insuring Wisconsin PAC..................................... 6

Carrier Relations ......................................... Kevin Murray Johnson Insurance Services - 525 Junction Road, Madison, WI 53717

Partners Mutual Insurance.............................. 28

Marketing/Membership Development....Jamie Durocher Arlington Roe- 2 Carlson Parkway N., Suite 175 Plymouth, MN 55447 Technical...............................................Timothy Kakuska Robertson-Ryan & Associates - P.O. Box 547 La Crosse, WI 54602

New Level Partners......................................... 26 ProtectYourAgency.com.....................Back Cover Risk Management Services.............................. 31 Robertson Ryan & Associates.......................... 27 Society.............................................................. 8 The IMT Group................................................... 9 West Bend.........................................................23 FEBRUARY 2018 | 3

2018

REGISTRATION INFORMATION Your annual convention registration options are below.

Option A F ull Registration, both Tuesday and Wednesday Early bird pricing: Member: $209 Non-Members: $249 After February 28: Member: $249 Non-Members: $299 Option B Full Registration, Spouse $149 Option C T uesday Only Member: $169 Non-Members: $209 Option D W ednesday Only Member: $189 Non-Members: $229 Group reservations of 6 or more receive a 10% discount. This applies to full registrations only. For complete descriptions, please go to IIAWConvention.com.

Cancellations received by April 6 will be refunded less a $20 processing fee. No refunds will be given for cancellations received after April 6. Attire is business casual for all convention events.

Questions? Please Please call the IIAW at (800) 362-7441 or (608) 256-4429. Refer to IIAWConvention.com and our e-brochure for the latest convention information and expanded details of each session.

HOTEL INFORMATION All convention events take place at the Madison Marriott West. 1313 John Q Hammons Dr. Middleton, WI 53562 Phone: (608) 831-2000. Rooms in our reserved room block are available at the price of $145/night for May 8 & 9. The last date to receive the room block, discounted rate is April 16th, 2018. Additional rooms for May 8 & 9 can be reserved at the Comfort Suites. 1253 John Q. Hammons Dr., Madison, WI, 53717 Phone: (520) 257-3116. Please indicate that you are attending the IIAW Annual Convention to ensure the group rate. The hotel reservation deadline is April 15, 2018.

EXHIBITOR INFORMATION Exhibitor registration fees are as follows: Early bird pricing: M ember registration: $850 Non-member: $950 After Feb. 28: Member registration: $900 Non-member: $1000 For complete details and to register as an exhibitor, please visit IIAWConvention.com.

Exhibitor fees include 2 Registrations to the entire Convention. As a friendly reminder, please conduct your agent entertaining during the designated company hospitality hours from 6:00pm- 9:00pm on May 9, 2018.

FEATURED SPEAKERS BLAKE MORGAN is a Customer Experience Futurist. Her first book is “More is More: How The Best Companies Work Harder And Go Farther To Create Knock Your Socks Off Customer Experiences.” Blake is adjunct faculty at the Rutgers executive education MBA program. Blake contributes to Forbes, the Harvard Business Review and the American Marketing Association. She is the host of The Modern Customer Podcast and a weekly customer experience video series on YouTube. She has worked with Intel, Verizon Wireless, and many more. She lives in the Bay Area with her husband, daughter and their two Yorkie rescues.

Her work has been endorsed by the CEO of 1-800 Flowers Chris McCann, the CEO of ACE Hardware John Venhuizen, Claire Burns, Chief Customer Officer, MetLife, Darren Pleasance, Managing Director, Global Customer Acquisitions, Google, Andreas von der Heydt, Director of Kindle, Amazon, James Staten, Chief Strategist, Microsoft Cloud, Zoher Karu, Chief Data Officer, ebay, Pete Blackshaw, Global Head of Digital and Social Media, Nestle, Vala Afshar, Chief Digital Evangelist, Salesforce, and Nova Spivack, Entrepreneur, Investor, Grandson of Peter Drucker.

In addition Blake is the host of The Modern Customer Podcast where she’s interviewed the CEO of AT&T Mobility, the CMO of Xerox, and the President of FedEx Express Canada. She is also the host of a weekly customer experience video series on YouTube called Blake’s Take.

DOUG LIPP Build the Culture. Live the Culture. Differentiate! Candid. Passionate. Relevant.

Doug Lipp is on a crusade to help organizations strengthen their corporate culture, boost business performance, and unapologetically, have fun while doing it. Doug is a distinguished international consultant, eight-time author, and former head of training at the legendary Disney University.

Drawing on his 30 plus years of combined experience at Disney and in private practice, Doug inspires and challenges hundreds of organizations worldwide. In presentations, he shares how Disney overcame spectacular strategic challenges to unleash one of the most improbable success stories in corporate history. Through riveting examples and powerful, relevant stories about innovation, service, value and leadership, Doug pulls back the curtain and reveals the behaviors, tools and attitudes that are representative of cultural excellence at Disney and other great institutions. He also discusses common organizational traps that undermine companies and impede their ability to build a thriving and sustainable culture. Consistently ranked as one of the best presenters every time he speaks, Doug painstakingly researches and customizes each of his presentations and workshops.

MARCUS SHERIDAN Called a “web marketing guru” by the New York Times, the story of how Marcus was able to save his swimming pool company, River Pools, from the economic crash of 2008 has been featured in multiple books, publications, and university case studies around the world – and is also the inspiration for his latest book, “They Ask, You Answer,” which was dubbed the #1 marketing book to read in 2017 by Mashable and one of “11 Marketing Books Every CMO Should Read” by Forbes.

Known for his incredibly unique ability to excite, engage and motivate live audience, Sheridan has become a highly sought-after international keynote speaker and consultant in the digital sales and marketing space and is, according to Forbes, 1 of 20 “Speakers You Don’t Want to Miss.” As founder and president of The Sales Lion, he also works with hundreds of businesses, helping them to become the most trusted voice in their industry while navigating the ultra-fast rate of change occurring within consumers and buyers today.

TUESDAY, May 8 9:30 – 11:30 AM

IIAW BOARD MEETING

11:30 AM

CONVENTION REGISTRATION OPENS

12:30 PM – 2:00 PM

CE SESSION E&O Mock Trial: Not Your Trial…Yet (2 CE) Speakers: Mallory Cornell, IIAW and Josh Johanningmeier, Godfrey & Kahn *Does not qualify for E&O Loss Control Credit*

12:30 PM – 2:00 PM

INNOVATION SEMINAR What does Omni-channel Servicing mean to the Independent Agent Speaker: Auto-Technology Committee

2:00 – 2:15 PM

Networking Break

2:15 – 3:45 PM

CE SESSION Data Breach (2 CE) Speaker: Michael Schultz, Burns & Wilcox

2:15 – 4:45 PM

CE SESSION The Road to Ethics (3 CE) Speaker: Brian Sorge, WPS Insurance

4:10 – 5:00 PM

CE Session New Certificates of Insurance Law: What it means to your Agency and Clients. (1 CE) Speaker: Matt Banaszynski, IIAW

5:15 – 5:45 PM

Business Meeting All attendees encouraged to attend

5:45 – 6:30 PM

Networking Break

6:30 – 9:00 PM

AWARDS RECEPTION AND ENTERTAINMENT Entertainment by The Ancora String Quartet Heavy hors d’oeuvres and cocktails. (All attendees encouraged to attend)

2018

WEDNESDAY, May 9 7:15 AM

CONVENTION REGISTRATION OPENS Breakfast Buffett (outside rooms to take into classroom)

8 AM – 8:50 AM

CE SESSION Employment Agreements for an Independent Insurance Agency (1 CE) Speaker: Josh Johanningmeier, Godfrey & Kahn

8 AM – 8:50 AM

CE SESSION What the New Cyber Security Regulations will mean to your Agency (1 CE) Speakers: Cari Lee, WI OCI and Matt Banaszynski, IIAW

8 AM – 8:50 AM

CE SESSION Federal Health Care Reform, Helping Your Customers through the ACA (1 CE) Speaker: Dave Grunke

9:00 AM – 9:15 AM

WELCOME REMARKS IIAW President, Lise Meyer Kobussen & IIAW CEO, Matt Banaszynski

9:15 AM 10:00 AM

A Simplified Approach to Shaping Customer Experience with Technology Speaker: Blake Morgan When you think of customer experience technology does your mind start spinning? There’s a lot of technology out there, so how do you decipher what will actually help your company? Most of us are familiar with a traditional CRM, but what critical components of your customer program do you need beyond that? There’s a lot of buzzwords being thrown around: digital transformation, machine learning, automation, artificial intelligence, IoT…it’s all so overwhelming! In this workshop we simplify what an ideal technology stack looks like and how you can get it without draining your company of all resources. In this session we’ll give you a completely unbiased view of what the critical components of a customer experience technology program should be.

You will learn: a Examples of technology that delivers great cx a Taking the scary out of technology a Making the business case for technology within your company a Innovating with IT in your business a Practical approaches for amazing ROI on tech oriented CX projects

10:00 AM 10:15 AM

Networking Break

10:15 AM – 11:00 AM

The Magic of Exceptional Customer Service Speaker: Doug Lipp How has Disney managed to keep its employees and customers so fiercely devoted to the brand? How has it managed to continually top the charts as one of the world’s most loved brands? How can you learn from its practices to catapult your organization’s service strategies to even higher levels? Learn the four components that are at the heart of Disney University: Innovate. Support. Educate. Entertain. Discover how legendary service is a delicate balance between art and science. “Doing the ordinary in an extraordinary fashion” isn’t rocket science; customer service excellence must be ingrained throughout your culture. In this ever-changing economy, more companies than ever are realizing the strategic importance of transforming their service culture to differentiate themselves from competitors.

11:00 AM – 11:45 AM

Leadership and Service Magic- Innovation, Transformation and Growth Workshop Speaker: Doug Lipp Leaders build the culture, live the culture, and reinforce the culture every single day. Leadership has always set the tone within an organization, but today there’s growing consensus that a winning, sustainable culture is only achieved when it is ‘actively’ steeped throughout the entire organization. In this workshop Doug will help you Innovate, transform and grow your agency!

11:45 PM – 12:45 PM

LUNCH BUFFET & NETWORKING BREAK

1:00 PM – 1:45 PM

The Digital Seller: How to Make the Internet Your Best Friend and Dramatically Increase Sales Success Speaker: Marcus Sheridan We’ve all heard about the “digital consumer,” but what about the “digital seller?” Studies have shown that over 70% of the buying decision today is made BEFORE someone actually talks to a sales person. This shift has had a dramatic impact on Sales Teams around the globe, and few have managed to properly adjust to this change in where the sales cycle actually starts. In this talk, Marcus Sheridan will explain exactly what Sales Teams must do in order to embrace the new way consumers buy and ultimately become “digital sellers” in the process.

2:00 PM – 3:00 PM

CEO PANEL (1 CE) Featuring Progressive, West Bend Mutual Insurance & Burns & Wilcox

3:15 PM – 5:45 PM

CONVENTION SHOWCASE & NETWORKING $ 1200 Cash Give-a-way Sponsored by The IMT Group

6:00 PM – 9:00 PM

COMPANY HOSPITALITY & ENTERTAINING

9:00 PM – 12:00 AM

INSURCON BASH Whether you are a beer drinker, a wine connoisseur, or like to mix things up, we have something for everyone. Visit our beer tasting, wine tasting, and mixologist station or just grab your favorite drink at the bar. Then dance the night away with A Personal Touch DJ Service before the big Money Balloon Drop at Midnight!

Visit IIAWConvention.com for complete details

INSURING YOUR VOICE IS HEARD IN THE CAPITOL! Please check the level you would like to contribute below:     

Governor’s Club — $500+ (Exclusive Privileges) Senator’s Club — $250 (Exclusive Privileges) Representative’s Club — $100 Cabinet Member — $50 Other Amount — $

All fields required: Name Agency Title Home Address City Work Address City Phone E-mail

State

Zip

State

Zip

I authorize the IIA of Wisconsin to publish my name in Association publications as an IWPAC contributor: YES or NO (circle one) NO CORPORATE CHECKS OR CREDIT CARDS We accept VISA, MasterCard and American Express, and mail-in donations by check.

Make checks payable to: Insuring Wisconsin PAC or IWPAC Payment Type: ❏Check Enclosed ❏VISA ❏MasterCard  ACH on the 15th of each month (Form) Credit Card # Verification Code Billing Address Cardholder Signature

Exp. Date

IWPAC contributions or gifts to a political action committee are not deductible as charitable contributions for income tax purposes.

Questions? Call 608.256.4229 or 800.362.7441, or fax 608.256.0170 Please mail to: IIAW, 725 John Nolen Drive, Madison, WI 53713

OPEN DOOR POLICY

MAKE A DIFFERENCE: BE THE VOICE OF YOUR INDUSTRY

In recent months, the IIA of Wisconsin has been on the frontlines of many important legislative issues, including authoring comprehensive certificates of insurance legislation, supporting workers’ compensation reforms and much more.

Over the past several years there have been many legislative victories and behind the scenes we have helped defeat legislation, harmful to your agency, without many of you even knowing it. None of this is possible without your financial support.

Our success in the capitol is due in great part to your commitment to political giving, especially to the Insuring Wisconsin Conduit Growth and PAC fund. A new year, comes new challenges and opportunities and we need your

Over the past several years there have been many legislative victories and behind the scenes we have helped defeat legislation, harmful to your agency, without many of you even knowing it. None of this is possible without your financial support. continued support. We have set a large goal of raising $30,000 by the November elections.

We do not take your donations for granted; we know you worked hard for it. That’s why we use it to support those who support the Independent Agency channel and our wonderful industry.

WISCONSIN INDEPENDENT AGENT

In 2017, we are proud to report that the IIAW political giving funds donated over $40,000 to state elected officials via our political giving programs. We must build on past success and keep it going as we move into 2018 and beyond.

A few years ago, Skip Hansen wrote a concise article for this magazine that emphasized the importance of political giving:

The political process has evolved to the point today where it’s all about the money. Our conduit will provide financial contributions to legislators of both political parties who support our industry. A financial contribution to a legislator’s election committee will get us access and the legislator’s ear.

He’s absolutely right. Skip’s had a long, prosperous career in insurance and he knows that we all need to get involved to cultivate and protect our great industry. In order to be heard by the decision makers – the legislators – we need to be involved in the political process. And that means testifying in front of committees, meeting with elected officials, attending local meetings and most important of all political donations.

We are competing against powerful and

influential groups (i.e., trial attorneys) that do not share the insurance industry’s interests.

Their pockets are deep because their members understand the importance of having a voice in the Capitol.

That’s what this is all about – having a loud voice in the state house that’s advocating for the independent agency system.

The winds of change may be blowing this November. There could be a shift in power at the state Capitol. The Governor, Lt. Governor, Attorney General, half of the State Senate and the entire State Assembly are up to re-election.

We must work to help re-elect those elected officials that have worked so tirelessly to protect our industry.

For more information about how the PAC works and to donate, visit the corresponding pages in this month’s magazine or go to our homepage (iiaw.com) and click Donate. You can also call me or send me an e-mail at matt@ iiaw.com.

Please, consider donating to the Insuring Wisconsin Growth PAC Fund. It’s an investment in your agency’s future. > Matt Banaszynski is the CEO of the Independent Insurance Agents of Wisconsin. Contact him at matt@iiaw.com.

FEBRUARY 2018 | 7

© 2018 Society Insurance

Cyber liability coverage that actually repairs digital damage.

Small detail. Big difference.

Cyber attacks can cause catastrophic financial loss, and in the last 12 months 50% of U.S. small businesses have been breached by hackers.* So it’s more a matter of when your customers will be attacked than if. But with Society, there’s no reason to panic. Our comprehensive cyber liability coverage protects businesses from things other policies usually don’t, like privacy breaches, cyber extortion and payment card company rule violations. Because we understand how to keep your customers truly covered.

To discuss an agency appointment, give us a call at 888-5-SOCIETY or visit societyinsurance.com. *2016 State of SMB Cybersecurity Report

AGENCY OPERATIONS

WHAT ARE GREAT SERVICE EMAILS ARE MADE OF? Email has taken over as a mainstream method of communicating with clients. It’s convenient, quick and efficient and automatically syncs with most management systems! Just like any form of communication, it’s as good as you make it.

So how do we outline ridiculously amazing service email? Well, let us help you and your team.

Determine if Email is the Right Method of Communication Email may be the most efficient for you but is it the best for the client? For example, if the client is getting cancelled for underwriting reasons an email may not adequately help alleviate the client’s concerns. Also, if the matter is very complex in nature, avoid an email all together as the client may not understand your point and it can cause an email war. In either of these situations it is OK to email them to alert them that you need to speak with them and ask for the best time to connect.

Greeting Make sure you greet the client like you would on the phone. Avoid cold email openers like “Greetings” or “Hello”. Instead try “Good Morning Kelly”. Make it personal friendly and warm.

Opening Start with the small talk. Don’t dive into the issue. Remember you want to appear friendly, kind and interested in their life. Basically avoid being the IRS or DMV! You may want to mention some of the following: + Holidays + Their Children + Weather

+ Sports + Community Events + Their job

Something along the lines of: Good Morning Kelly; I hope you, Roxy and Andrew are doing well this holiday season. Over here at Agency Performance Partners we are excited for our annual holiday party this Friday. Hopefully you have some fun Holiday plans as well.

See how awesome that sounds!

Meat and Potatoes You can now enter in on why you are emailing them. Generally it’s going to be an answer to their question or to deliver some news. Try to include these three items in the reason for the email section: WISCONSIN INDEPENDENT AGENT

a Identification of the problem/solutions a The steps you are taking on the matter a Clear expectation setting of the next steps This may look like: Good Morning Kelly; I hope you, Roxy and Andrew are doing well this holiday season. Over here at Agency Performance Partners we excited for our annual holiday party this Friday. Hopefully you have some fun Holiday plans as well.

I was hoping to connect with you on your husband’s Mustang. Since you have added in those additional parts the underwriter with your current carrier is struggling with making the vehicle a fit for their program. The good news is as an independent agent we have multiple carriers. I have submitted the vehicle to additional carriers for you. In addition, I’m working with the head of underwriting at your current carrier to find a solution. Don’t worry, you currently have coverage and I’m confident we will have an answer soon. I’ll be back in touch with you within the next two days* to follow up on some options. *Put a suspense in your management system so you don’t forget!

See how nice that sounds, rather than “You’re being cancelled call me!”

Invite them to Contact You This is critical depending on what’s happening.

They may have questions and want to chat with you. You want to encourage that, so they can call you first. When they call you, they aren’t calling your competition. Let’s add to our email: Good Morning Kelly; I hope you, Roxy and Andrew are doing well this holiday season. Over here at Agency Performance Partners we excited for our annual holiday party this Friday. Hopefully you have some fun Holiday plans as well.

I was hoping to connect with you on your husband’s Mustang. Since you have added in those additional parts the underwriter with your current carrier is struggling with making the vehicle a fit for their program. The good news is as an independent agent we have multiple

carriers. I have submitted the vehicle to additional carriers for you. In addition, I’m working with the head of underwriting at your current carrier to find a solution. Don’t worry, you currently have coverage and I’m confident we will have an answer soon. I’ll be back in touch with you within the next two days* to follow up on some options.

I’m here for you if you have any questions. You can reach me at PHONE NUMBER. I’m here between 8:30-5:00, Monday thru Friday and I am happy to help answer any questions you may have.

Wrap Up You want to end on a positive note. That ties the entire email together!

Good Morning Kelly; I hope you, Roxy and Andrew are doing well this holiday season. Over here at Agency Performance Partners we excited for our annual holiday party this Friday. Hopefully you have some fun Holiday plans as well.

I was hoping to connect with you on your husband’s Mustang. Since you have added in those additional parts the underwriter with your current carrier is struggling with making the vehicle a fit for their program. The good news is as an independent agent we have multiple carriers. I have submitted the vehicle to additional carriers for you. In addition, I’m working with the head of underwriting at your current carrier to find a solution. Don’t worry, you currently have coverage and I’m confident we will have an answer soon. I’ll be back in touch with you within the next two days* to follow up on some options.

I’m here for you if you have any questions. You can reach me at PHONE NUMBER. I’m here between 8:30-5:00, Monday thru Friday and I am happy to help answer any questions you may have.

We will make sure we find the right fit for your Mustang. You just need enjoy driving it while we take care of the insurance part.

Have a very happy holiday and I’ll talk to you on Wednesday.

See how easy it is!? A little effort goes a long way.

> Kelly Donahue-Piro is a dynamic public speaker and consultant focusing on how small business owners can capitalize on opportunities within their reach.

FEBRUARY 2018 | 9

AGENCY MANAGEMENT

MOLD TAKES OVER THE 1 S #

In 2017, mold became the #1 cause of loss under Environmental Liability (EIL) insurance policies.

Almost all the insured mold claims came in from commercial properties.

Today less than 1% of commercial buildings are covered under EIL policies; every commercial property owner or manager is a prospect for new business!

Today, office buildings, schools, colleges, hotels, condos, apartments and shopping malls make much better prospects for the sale of an environmental insurance policy than a landfill does.

For agents and brokers to capture this new business opportunity, significant improvements on coverage and price needed to be made to the traditional EIL product line. The EIL product line was originally designed to insure hazardous waste sites; off the shelf, these policies do not work very well to insure a commercial property. The EIL insurance policy, rating models, loss control services, and application process all needed to be altered to make environmental insurance functional for clean commercial properties.

After seven years in R&D, the ARMR HPR™ environmental insurance product incorporates the needed modifications. The ARMR HPR™ product line is an easy-to-sell environmental insurance policy specifically designed for commercial property owners and managers. With minimum premiums as low as $6,000 for a 3-year policy with a $1,000,000 limit of liability and target priced to cost less than 15% of the property insurance premium, effective EIL insurance is now within the reach of most commercial property owners and managers. The ARMR HPR™ environmental insurance product can be accessed through Big “I” Markets under Pollution Insurance: ContractorsCommercial Properties-USTs-All Other.

Important Indoor Environmental Risk Facts Drywall is the perfect food source for mold; all water-damaged drywall presents a mold risk. Water or excessive moisture at room temperature causes mold growth on drywall within 72 hours.

The General Liability insurance policies sold since 2005 usually exclude losses involving damages arising from a speck of any type of fungi or bacteria; even the Duty to Defend coverage has been eliminated.

Mold-related losses are commonly sublimited on property insurance policies at amounts below $25,000. To put the sublimit into perspective, it helps to know the average mold loss in a commercial building is $250,000, not including Business Interruption costs; eight-figure mold losses are not rare.

This year, a college had a $55,000,000 class action bodily injury claim made against it for exposing students to mold in a dormitory. Without a specially modified EIL policy in place, there will be no insurance coverage in place for a loss like this.

Bacteria-related losses are commonly excluded or sublimited by the same exclusions that address mold.

10 | FEBRUARY 2018

Water can contain deadly bacteria. Claims adjusters have routinely ignored if water damages were caused by Category 1, 2, or 3 sources, but things are changing fast. By definition, Category 3 water is grossly contaminated with bacteria; examples include any water escaping from a drainpipe, wet fire suppression systems, or all water that comes into contact with soil. Bacteria related losses include wrongful death claims from legionella bacteria, which is also waterborne.

Bacteria contamination has been determined to be an excluded “pollutant” by various state courts for decades.

Therefore, losses involving bacteria can be excluded by the specific mold/bacteria exclusion and the pollution exclusion on the same policy.

Anti-Concurrent Causation Exclusions for Mold and Bacteria Mold/Bacteria exclusions commonly incorporate anti-concurrent causation wording, mirroring the effect of the flood exclusion in property insurance policies. Anti-concurrent causation exclusions eliminate coverage for ensuing losses from an otherwise covered loss under an insurance policy. If any amount or type of mold or bacteria becomes involved in any sequence in a loss scenario, the entire loss falls within the terms of the anticoncurrent causation mold/bacteria exclusion. This observation applies to Liability and Property insurance policies alike.

Reasons for the Rise in Mold EIL Claims To pay a mold/bacteria-related loss as ensuing damages from an otherwise covered loss, claims adjusters must totally ignore the anti-concurrent causation language in mold/bacteria exclusions.

Any insurance company that ignores the anti-concurrent causation language of mold/bacteria exclusions ultimately undermines its ability to use the anti-concurrent causation language in the flood exclusion to deny flood losses. Insurance companies are forced by law to be consistent in claims settlement practices.

EIL polices provide much broader coverage for contaminationrelated losses than the property insurance policy does. EIL policies also cover third party claims for Bodily Injury and Property Damage.

As claims adjusters figure out the designed effects of anticoncurrent causation mold/bacteria exclusions, usually on big claims, more denied water intrusion losses in commercial buildings are migrating over to EIL policies. It is interesting to note the odds that a customized EIL policy will be in place to catch a denied mold/bacteria-related claim on traditional property and liability insurance policies are less than 1 in a 100 today.

WISCONSIN INDEPENDENT AGENT

SPOT IN POLLUTION CLAIMS! Recommendation: If you have insureds that are office buildings, schools, colleges or other commercial properties, Big “I” recommends you make them aware of the exposure to mold claims and need for special coverage. Do it annually. (Sample offer declination forms you can use are on E&O Happens)

The big question remains unanswered. Where did the denied mold/bacteria related losses end up on the 99%+ of commercial properties that were not insured under EIL policies in 2017? An educated guess is the denied losses are festering and looking for a cost recovery home from other responsible parties. Without environmental insurance in place, those responsible parties will soon feel the effects of universal exclusions for mold- and bacteria-related losses as well.

Conclusion

are finally taking hold in claims settlement practices. Custom-designed environmental insurance products like the ARMR HPR™ insurance and risk management product line exist to specifically address the environmental loss exposures faced by commercial properties.

The ARMR HPR™ environmental insurance product can be found on Big “I” Markets under Pollution Insurance: Contractors-Commercial Properties-USTs-All Other.

Based on mold claims taking over the #1 cause of loss under EIL policies, it appears that the exclusions in traditional property and liability policies for losses related to mold and bacteria

> American Risk Management Resources Network, LLC has served as the IIABA environmental resource group for over 10 years. They recently won Best Environmental Practice in the and Top Wholesale Insurance Broker in the U.S. at a recent award ceremony hosted by Insurance Business America. They can be reached at (877) 735-0800 or at armr.net/hpr.

WISCONSIN INDEPENDENT AGENT

FEBRUARY 2018 | 11

TECHNOLOGY

UN-’BLOCK’ YOUR BUSINESS 1.0: THE NEW A ‘AI’ B ‘BLOCKCHAIN’ AND C ‘CONNECTED DEVICES’ OF INSURANCE

TECHNOLOGY

Another new year begins and many of us are probably shopping for insurance again because our provider just put up the premium on our renewals. We think they do this because they want to make more money (which could be the case as well) but equally the amount of fraud (accounts for 5-10% of insurance costs) that happens puts pressure on the insurance providers which directly feeds back to our premium.

In many cases, after checking the same data on us again by going through similar questions, we are offered a policy better than last year! Similar painful experiences when one needs to go through a claim settlement process where multiple parties are involved and settlement usually takes weeks or even months. Clearly, these are

customer’s perspective, both the policy setup and the claim settlement process are long, tedious and unpredictable. They also don’t see any stability on their insurance premiums YoY even when they have made no claims. From the insurer’s perspective, the operational costs are escalating, frauds are increasing and

all not great customer experiences.

customer retention is also costing them heavily.

So, Amazon and Google are now entering the insurance business.

Is that a weird proposition or a natural progression by virtue of them having access to so much data and information on individuals and businesses that they can leverage this asset and offer a more relevant insurance and better seamless experience?

This is exactly the digital disruption insurers are facing today. But insurers have the advantage of not only having access to all this data but also the experience and license of providing protection for decades and hence the well-earned trust. In this blog, we see how insurers can bring together the new age ‘ABC’ for a true digital experience and keep themselves relevant and competitive.

An end to end transformation of the insurance underwriting and claims process leveraging powerful advances in artificial intelligence, blockchain and connected devices (IoT) can bring the same experience to the customers that Amazon and Google are challenging to offer.

Let’s bring together the A (AI), B (Blockchain), C (Connected Devices) for a ‘D (Digital)’ experience

The Insurance Process and the current inefficiencies / challenges The current pain points in the insurance underwriting and the subsequent claims settlement is very widely known. From the

12 | FEBRUARY 2018

Starting with one of the retail insurance underwriting and claims process (say car insurance), insurers could leverage the powerful combination of emerging technologies to transform the industry and create a lean efficient process leading to a much better customer experience.

Applying AI The customers data is an asset the insurer already has access to (for existing clients) including all his contracts and claims. Insurers also have access to claims data of people who are not existing clients that is shared via joint initiatives (like MIB) to combat fraud. First step to create efficiencies would be to look at digitizing and automating the insurance policy setup/ underwriting process using AI technologies. Insurers can use both existing information/ data and pull other relevant information from the internet on social websites, perform deep data analysis to create a personalized auto filled insurance policy for the customer. Existing documents may also be digitized and converted to usable information using image recognition techniques. The auto-filled forms created using WISCONSIN INDEPENDENT AGENT

TECHNOLOGY

these techniques can be used to communicate with the customer using chat-bots. Chatbots use AI technology advancements in language processing and generation and even sentiment analysis to make sure the customer is happy with the proposal ( 74% of the customers say they are happy to receive an automated digital proposal) . These automations can reduce operational costs tremendously for the insurers and improve customer experience multi-fold. Many of these initiatives are already under-way in the industry but let us look at combining this with other emerging technologies to get an end to end experience.

customer through the entire process. All this timestamped information can then fed back into the data that the AI used for the underwriting process to create a realistic insurance plan. Another huge benefit from blockchain is for the claim data sharing between insurers which today is limited because of concerns of losing competitiveness. Blockchain enables creating the right channels of data sharing between insurers without needing to have a central intermediary and also allows selective sharing by setting up the right channels.

Combining the Connected Device Benefiting from Blockchain The insurance policy created through an efficient automated touchless process could then be setup as a smart contract on a permissioned blockchain shared and agreed by the insurer, service provider, the customer and even the customer’s bank. This smart contract can be triggered automatically by a particular event – say an accident for a car insurance, a fire for a building or home insurance or a death for life insurance. The event can request a provider to initiate a repair process or trigger a request to health provider to initiate a treatment process and if the conditions of the contract are met, the contract can also trigger a payment creating a near real-time settlement experience for the customer. In addition, the cryptographically secured immutable nature of the blockchain would mean huge reduction in fraudulent claims as all events, claims and payments are captured in a timestamped manner. The shared ledger also means complete transparency for the

BE WORRY FREE WITH IMT

We mentioned the automated triggering of events to create an end to end experience. This is where the ‘C’ of digital experience comes. Smart Connected Homes can trigger an event on the blockchain in the event of a fire or a wearable health device could trigger an event for medical attention. Similarly connected car solutions like Wipro’s Autoinsights could relay real time information on the car’s health or even the driver’s habits. These connected devices not only can help trigger an insurance event, they also capture and keep information that can become another important data feed for the policy underwriting process. What if all this information from connected devices is also stored on a blockchain so these become immutable timestamped records further reducing fraud.

This circular application of all 3 emerging technologies creates a very powerful proposition to create a true digital experience. > Priya Lakshmi – Blockchainand AI Enthusiast, Wipro

We understand the importance of partnerships and take great pride in building strong, stable relationships with our agents and policyholders. Through experienced claims expertise and hightouch customer service, we are there when we are needed most.

Learn how you can represent IMT Insurance & Wadena Insurance at imtins.com/contact_us.

imtins.com | west des moines, iowa WISCONSIN INDEPENDENT AGENT

FEBRUARY 2018 | 13

AGENCY MANAGEMENT

DUTY (& OPPORTUNITY) TO READ AN INSURANCE POLICY Who reads rental agreements at the counter when renting a car? Pretty much no one. Who reads 78-page software or phone app licensing agreements? Almost certainly no one. Who reads insurance policies? Virtually no insureds and far too few insurance professionals like agents, underwriters, and adjusters. Why? In the case of insureds, one reason might be that the actual policy forms are not provided for days or weeks after coverage is bound.

A presumption of an insured might be that, if the insurer doesn’t see a need for the insured to read the policy before entering into the insurance contract and perhaps weeks afterwards, is there really any need to read it when received? Would whether or not an insured reads the policy make any difference in how a claim is resolved?

Opportunity to Read the Policy Three times in the last few years, I’ve conducted research on the danger of purchasing insurance online. Most recently, it involved getting online quotes for auto and homeowners insurance directly from an insurer’s web site or through several of many web sites that allow you to get multiple premium quotes. In each instance, I communicated through the web site or via email, asking for a copy of the insurance contract (i.e., policy forms) to review in order to make a purchasing decision. In every single instance, as was my experience in my prior two experiments, the insurer refused to give me a copy of the policy forms.

Can you think of any other type of written contract you enter into (financing or leasing an auto, buying or renting a home or apartment, etc.) where the party that wrote the contract REFUSED to allow you to read it before signing? For years I have had a standing $100 offer to the first person who can explain this rationale in a reasonable way. This bizarre approach is dangerous in many ways, the most important one for the purpose of this book being that it conditions consumers (along with incessant price-focused industry advertising) to believe that insurance is a commodity distinguished only by price. By the time you finish this book, we will have dispelled that dangerous myth.

What do the courts have to say about the ability of insurers to enforce exclusionary or restrictive policy provisions if the insured has never been given the opportunity to read the policy?

In one case, Miller v. Safeco Ins. Co. of America, 683 F. 3d 805 (U.S. Court of Appeals, 7th District, 2012), the court said the “… insurer may not deny coverage based on an exclusion in the policy.” In its decision, it explained that an insurer should not

14 | FEBRUARY 2018

be able to accept a premium “…and then deny liability based on an exclusion of which the insured was not aware because the insurance company had not informed him or her of the exclusion or given him or her the means to ascertain its existence.”

In the state of Wisconsin, other cases include Kozlik v. Gulf ins. Co., 268 Wis.2d 491, 673 N.W.2d 343, 348 (Wis. Ct. App., 2003) and Gross v. Lloyds of London Ins. Co., 121 Wis.2d 78, 358 N.W.2d 266, 271 (Wis. Ct. App., 1984). The Kozlik case also references decisions in Alabama, Florida, Kentucky, Michigan, North Dakota, Utah, and Washington, but I have not done an exhaustive review to determine how widespread this position actually is in the judiciary.

To answer a prior question, would an insured reading or not reading the policy prior to a claim make any difference in how that claim is resolved? Probably not. However, it might make a BIG difference in whether an insured engages in certain activities, purchases (and uses) certain property, etc. Knowing the likelihood and adequacy of coverage, whether learned by reading the policy or asking a representative of the insurer, is a critical aid to decision making that involves the assumption of risk.

Duty to Read the Policy What do the courts say about an insured’s responsibility to read the policy? As part of a decade-long project on insurance agents’ errors and omissions (E&O) loss control, I researched and monitored case law dealing with an insured’s duty to read insurance policies. Over that period, the case law ran about 50/50 as to whether insureds were responsible to read. In many cases that held that the insured was not responsible, the logic of the court was that, even if they read it, they were unlikely to understand it. Rather than print pages of case law on this subject, I’d simply direct you to the often-cited West Virginia Supreme Court “Broadnax” case that discusses this issue and links to other cases (e.g., Kelly v. Painter) that link to other cases addressing an insured’s obligation to read the insurance contract.

The bigger issue, in the context of this book, is whether those in the insurance industry ¾ agents, brokers, underwriters, adjusters, consultants, educators, and others ¾ have an obligation to read

WISCONSIN INDEPENDENT AGENT

the policies they sell, service, underwrite, adjust, and consult and educate on. The obvious response to that question is, “Duh, of course they do.” The reality, though, is that far, far too many do not. I base that contention on a career spanning the past four decades where I’ve worked with many hundreds (if not thousands) agents on literally tens of thousands of coverage and claims issues.

T here are many outstanding P&C insurance agents in the industry. These are people with an historical perspective of the industry, that understand that our industry’s primary mission is to assist consumers and organizations in minimizing their exposure to serious or catastrophic financial loss. These are men and women who engage in life-long, quality education and abide by the highest professional and ethical standards. They read and understand the insurance policies they sell and service. Sadly, they represent a minority of agents. There are far too many who: a Don’t read policy forms because either they don’t care (apathy or price focus) or they don’t think there’s really any difference (the “Insurance is a Commodity” myth); a Can’t read policy forms (due to functional illiteracy?); a Read but can’t or don’t understand policy forms; a Read and THINK they understand policy forms but are not adequately tested by traditional educational and training approaches; or a Read and perhaps understand policy forms WISCONSIN INDEPENDENT AGENT

but can’t apply them to real-life coverage or claims scenarios.

> “ What is the rule of thumb for cancelling a homeowners policy?”

By far, the worst class of agent is the one that doesn’t read the forms they sell or service. In many cases, they simply enter information into a comparative rating system that spits out a list of insurers and premiums with a total disregard to the differences in coverages between the products and the standards of service provided by the insurers. Worse are those that are simply apathetic and likely working in the wrong industry:

> “ Does ‘an auto policy’ cover….”

“The fact you don’t know “Is enough of a curse; “Not to want to know “Is a fate that’s much worse.” – Rolf B. White These agents offer little more than a professional liability (E&O) insurance backstop for their incompetence compared to the “caveat emptor” do-it-yourself web sites that provide the same type of service. Why don’t they read the policy forms they sell?

Many share the mistaken consumer view that insurance is a commodity, that all auto or renters or homeowners policies are essentially the same. As we will discover in this book, that is far from the truth. Others imply don’t care and their apathy imperils the financial solvency of individuals and families.

You might ask, how do I know this? Again, from the tens of thousands of questions I’ve received from agents, I can tell by the very nature of their questions. For example, the following are all real questions: > “ I’ve always heard that insurers must provide 60 days notice of policy nonrenewal. Is that correct?”

> “ Does ‘a CGL policy” cover….” > “ Does ‘a’ renter’s/D&O/umbrella/etc. policy cover….”

Several years ago, I got an inquiry from an insurance agency’s commercial lines manager who also had the Certified Insurance Counselor (CIC) professional designation. She wanted to know if a liquor store needed liquor liability coverage. According to her email, “I was always told that unless you were in the business of selling liquor for consumption on your premises, you did not need to purchase liquor liability.” Just recently I viewed some agent professional liability statistics and noted a very similar claim that arose from the failure to provide liquor liability coverage for a liquor store. “Knowledge by Folklore” (aka, “I’ve always heard that…” is not how coverage determinations should be made.

Cancellation and nonrenewal of insurance contracts is something always addressed by insurance policies, often based on permissible reasons and timing prescribed by statutes.

When it comes to policy rights, there is no “rule of thumb” or generalization based on hearsay. It’s impossible to answer coverage questions based on “an” auto policy or “a” CGL policy. To answer coverage questions and resolve claims, one must read and interpret the exact language in the insurance contract in question. > William C. Wilson, Jr., CPCU, ARM, AIM, AAM is the founder of InsuranceCommentary.com. He retired from the Independent Insurance Agents & Brokers of America in December 2016 where he served as Assoc. VP of Education and Research and was the founder and director of the Big “I” Virtual University for over 17 years.

FEBRUARY 2018 | 15

COMMENTARY FROM COUNSEL

WISCONSIN SUPREME COURT DECISION FURTHER NARROWS PERMISSIBLE SCOPE OF EMPLOYEE NON-SOLICITATION PROVISIONS. Preventing ex-employees from poaching current employees is now more difficult in Wisconsin. On January 19, 2018, the Wisconsin Supreme Court issued a final ruling in Manitowoc Company, Inc. v. Lanning, and in so doing, provided new and important insight into the scope of Wisconsin’s notoriously strict restrictive covenant statute. Specifically, the Court concluded that the employee non-solicitation provision at issue in Lanning was, in fact, subject to Wis. Stat. § 103.465 as a restraint of trade, and further, that the provision was unenforceable under that statute.

The Court’s analysis regarding enforceability provides critical information for any employer seeking to draft, enforce, or defeat a contractual employee non-solicitation provision in Wisconsin.

Employee Non-Solicitation Restrictions Employment agreements often include non-solicitation provisions— language that restricts an employee’s post-termination ability to solicit customers and/or employees of their former employer for a specific duration—usually one or two years. Employee non-solicitation provisions, barring the recruitment of employees from the former employer, are often enforced less rigorously than customer non-solicitation restrictions.

Nonetheless, these provisions can be an important tool to curtail the risk of key employee departures.

Lanning If you’re reading this column and suddenly feeling a sense of déjà vu, it’s because we’ve walked this road before. In August 2016, the Wisconsin Court of Appeals issued the penultimate ruling in Lanning, which set the stage for the Wisconsin Supreme Court’s recent action. At that time, the

16 | FEBRUARY 2018

Court of Appeals decision was the first from any Wisconsin appellate court to weigh in on the enforceability of employee non-solicitation restrictions. As a result, this column previously analyzed the appellate ruling in some detail.

For those who might be new to the Lanning case, John Lanning worked for Manitowoc Company as an engineer for over 25 years before resigning and becoming the director of engineering for a Manitowoc Company competitor. Lanning signed a number of agreements over the course of his employment, including a 2008 agreement in which he agreed not to solicit “any employee” of the company for two years following termination: [F]or a period of two years . . . (either directly or indirectly) solicit, induce or encourage any employee(s) to terminate their employment with Manitowoc or to accept employment with any competitor, supplier or customer of Manitowoc. . . .

Following Lanning’s departure, Manitowoc Company alleged that Lanning violated his employee non-solicit restriction through various efforts to recruit its employees. The trial court originally awarded WISCONSIN INDEPENDENT AGENT

COMMENTARY FROM COUNSEL damages and attorney’s fees to the Manitowoc Company; however, as previously detailed here, the Wisconsin Court of Appeals reversed the award on the grounds that the non-solicitation provision was unenforceable under Wisconsin Statute § 103.465, which governs the enforceability of covenants not to compete. For reference, § 103.465 provides as follows: A covenant by an assistant, servant or agent not to compete with his or her employer or principal during the term of the employment or agency, or after the termination of that employment or agency, within a specified territory and during a specified time is lawful and enforceable only if the restrictions imposed are reasonably necessary for the protection of the employer or principal. Any covenant, described in this section, imposing an unreasonable restraint is illegal, void and unenforceable even as to any part of the covenant or performance that would be a reasonable restraint.

Following the Court of Appeals decision, Manitowoc Company appealed and the Wisconsin Supreme Court granted review.

The Wisconsin Supreme Court’s Two-Step Analysis In upholding the ruling of the Court of Appeals, the Supreme Court used a two-step approach to determine whether Lanning’s employee non-solicitation restriction was enforceable.

First, the Court analyzed whether the provision acted as a restraint of trade, making it subject to Wisconsin’s restrictive covenant statute. The Court concluded that it was a restraint because it restricted Lanning’s and Manitowoc’s competitors’ ability to freely compete “for the best talent in the labor pool.”

Second, the Court analyzed the reasonableness of the provision under Wis. Stat. § 103.465 and concluded that it was overbroad and,

therefore, unenforceable. Among the reasons the Court found the provision to be overbroad was the fact that the provision applied to “any” solicited employee and as such, it failed to limit solicitation based on the nature and competitive threat associated with the solicited employee’s position, Lanning’s personal familiarity with the solicited employee, or Lanning’s influence over the solicited employee.

The Court characterized the provision as “a sweeping prohibition that prevents Lanning from encouraging any Manitowoc Company employee, no matter the employee’s job or location, to terminate his or her employment with Manitowoc Company for any reason, or soliciting any Manitowoc Company employee to take any position with any competitor, supplier, or customer of Manitowoc Company.”

Employee Non-Solicitation Restrictions After Lanning While the Lanning decision ultimately upheld the right of employers to enter into employee non-solicitation agreements with their employees, the Court’s analysis of the Lanning provision provides new and narrower parameters that must be incorporated into any future provisions to increase the likelihood of enforceability. Likewise, Employers must be conscious to review any employee non-solicitation language in their current agreements. The scope and enforcement of employee non-solicitation provisions in post-Lanning Wisconsin will be one of the many topics covered in our session on employment agreements for independent insurance agencies at this year’s IIAW convention. In the meantime, for additional guidance on the recent Lanning decision (or your agency’s employment agreements generally), be sure to consult with competent counsel. > Josh Johanningmeier, IIAW General Counsel

2018

Presents The

Emerging Leaders Social Event WHEN & WHERE

Thursday March 8th, 2018

4:00 PM - 7:00 PM Nine Below

1905 E. North Ave. Milwaukee, WI 53202 (Underneath Beans & Barley on Milwaukee’s East Side)

DETAILS

This is a Social Networking Event being brought to you by the IIAW Emerging Leaders Committee This event is Free and there will be a 50/50 raffle to raise money for Kids’ Chance of Wisconsin

Join Us For Fun, Food & Drinks!

Thanks to our Sponsors

RSVP at https://iiaw.site-ym.com/events/EventDetails.aspx?id=1058467

WISCONSIN INDEPENDENT AGENT

FEBRUARY 2018 | 17

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For more information, call Christine Munoz at (800) 848-4401 or email christine.munoz@iiaba.net for a free plan consultation. ©2014 Big “I” Retirement Services, LLC (“BIRS”), sponsor of the Big "I" MEP 401(k) Plan. Participating employers may retain limited fiduciary responsibility

in connection with a decision to participate in thesponsor MEP andof other BIRS401(k) assumes fiduciary responsibility of sponsorship and limited administration unless ©2014 Big “I” Retirement Services, LLC (“BIRS”), the matters.

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Participating employers may retain otherwise delegated. Mesirow assumes certain fiduciary responsibilities as investment manager for investment selection and other similar functions.

GOVERNMENT AFFAIRS

UPCOMING WISCONSIN SUPREME COURT ELECTIONS With Justice Michael Gableman not seeking a second term on the Wisconsin Supreme Court, a contested election has been set up for 2018 to fill this seat. On April 3rd, Wisconsin voters will be asked to elect a new state Supreme Court Justice to a 10-year term in a non-partisan spring election.

But first, a field of three candidates must face off next month in a February 20th primary election with the two top vote-getters moving on to the April election.

Though state Supreme Court races are officially nonpartisan, spending from outside groups tied to ideological interests and help from political parties has injected partisanship into these elections. Even the views expressed from some of the candidates themselves sound more and more like partisan elections. This race in particular, the three candidates certainly appear to sit on very different points along the political spectrum given their public statements. For better or for worse, this appears to be the new normal in Wisconsin.

The makeup of the seven-member state Supreme Court is critically important to the business community due to the very nature of the cases that come before the court. Decisions by the Supreme Court, and the justices that render them, can have a direct and long-lasting impact to your business and bottom line. It’s important that you remember to vote on February 20th and April 3rd to decide who will serve as Wisconsin’s next justice to the Wisconsin Supreme Court.

Below is short recap of each candidate that may provide a window into where they may land on certain cases should they be elected:

Milwaukee County Circuit Judge Rebecca Dallet Unlike her opponent Burns, Dallet says she is running to return independence to the court and to rid it of partisanship. She tries to walk a fine line of sitting in the middle when asked tough questions about recent controversial cases. For example, in regards to the Voter I.D. law, she said that we should want to encourage as many people as possible to vote and it shouldn’t be about one party trying to stay in power over another. Dallet is considered a liberal-leaning candidate based on her experience with cases as a judge in Milwaukee County. For more information, visit her campaign website. a 11 years as a prosecutor with the Milwaukee County District Attorney’s office a Milwaukee Circuit Court Judge since 2008 a Former Adjunct Professor of Law, Marquette University a President of the Milwaukee Trial Judges Association

Madison Attorney Tim Burns Burns considers himself the progressive candidate who is seeking to combat a current conservative minded Supreme Court. He is running as a partisan who is unafraid to express his liberal political views as a judicial candidate. He disagrees with the Federal and State Court decisions to uphold WI Act 10 on collective bargaining and believes that “right wing” conservative judges have harmed the middle class. When it comes to the redrawing of legislative district maps, Burns has said he is concerned about how the maps are currently drawn and he is concerned with the role of money in politics. For more information, visit his campaign website. a Partner at a law firm in Madison a University of Missouri-Columbia Law School a Former Co-Chair of the Insurance Litigation Committee of the American Bar Association a Serves on the National Board of American Constitution Society WISCONSIN INDEPENDENT AGENT

Sauk County Circuit Judge Michael Screnock Screnock is a conservative-leaning candidate who says he will apply the law as written. He has gone on record as saying the Supreme Court is one of the three co-equal branches of government and the court does not have the right to do whatever it wants. He has also said he believes in the importance of a thorough legal analysis. Screnock has been endorsed by several business organizations, including the Wisconsin Civil Justice Council (WCJC). For more information, visit his campaign website. a Appointed by Governor Walker in 2015 to Sauk County Circuit Judge, re-elected 2016 a Presides over the Sauk County Adult Drug Court a University of Wisconsin Law School a Former Attorney Michael Best & Friedrich Law > Misha Lee, IIAW Lobbyist

FEBRUARY 2018 | 19

2018 PRE-LICENSING CLASS SCHEDULE Conducted at State Association Headquarters, IIAW pre-licensing classes fulfill the study requirements for life, health, property and casualty. Full course materials — not just an outline — are included with registration. The classes are:

REGISTER AT IIAW.COM 2018 CLASS DATES

LIFE & ACCIDENT/HEALTH January 8-11 February 5-8 March 5-8 April 9-12 May 14-17 June 4-7 July 9-12

PROPERTY & CASUALTY January 22-25 February 12-15 March 19-22 April 23-26 May 21-24 June 18-21 July 23-26

August 6-9 September 10-13 October 8-11 November 5-8

August 20-23 September 24-27 October 22-25 November 12-15

December 3-6

December 17-20

Designed to help you pass your state licensing examination. The quickest way to meet the Wisconsin education hours requirement. Taught by experienced insurance professionals who know the business. Conducted in a comfortable classroom with free parking. Approved by the Office of the Commissioner of Insurance.

IIAW MEMBER PRICING: $340 - Pricing given for full class registrations.

NON-MEMBER PRICING: $355

You may also take individual classes.

DAILY SCHEDULE

Life & Accident/Health

Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Life Policies, Terms & Concepts Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) SECTION B: Life Policies, cont. & WI Life Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) SECTION B: Accident & Health Policies, Terms & Concepts Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Accident & Health, cont. & WI Health Insurance Law

Property & Casualty

Day 1 (Monday) 8:30 a.m. - 4:00 p.m. ($85) SECTION A: Principles of Insurance & General WI Ins. Law Ethics Day 2 (Tuesday) 8:30 a.m. - 4:00 p.m. ($90) SECTION B: Property Policies, Terms & Concepts CLASS SITE/DIRECTIONS The IIAW is located at 725 John Nolen Dr. in Madison, WI. Day 3 (Wednesday a.m.) 8:30 - 11:30 a.m. ($45) When traveling south on John Nolen, it’s the last driveway SECTION B: Property Policies, cont. & WI Property Insurance Law Day 3 (Wednesday p.m.) Noon - 4:00 p.m. ($45) before Highway 12/18 (Beltline). Located near the Alliant SECTION B: Casualty Policies, Terms & Concepts Energy Center and Sheraton Hotel.

Day 4 (Thursday) 8:30 a.m. - 4:00 p.m. ($90) INCLEMENT WEATHER SECTION B: Casualty Policies, cont. & WI Casualty Insurance Law If weather conditions are questionable, use your own judgment regarding your personal safety. If Madison public  Please contact Kathy@IIAW.com for information about schools are closed, the IIAW is closed and pre-licensing is multiple registration discounts. canceled for the day. Canceled classes are made up on The course fee includes all class materials. Materials are Friday. distributed on the first day of class. You receive: HOTEL INFORMATION • The Life & Accident/Health or Prop. & Casualty Insurance Students requiring lodging will receive a special rate at the Study Manual.

Clarion Suites, 2110 Rimrock Rd. in Madison. Please call • The Intermediary’s Guide to Wisconsin Insurance Law. the hotel directly at 608.284.1234, and ask for the • The State of Wisconsin Ins. Licensing Candidate Handbook. independent insurance agent’s discount.

This provides all the necessary information to obtain a license.

To register, click the Education tab on IIAW.com. For Wisconsin exam info, visit prometric.com.

CONTINUING EDUCATION IIAW ONLINE CE CLASSES

IIAW ONLINE CE CLASSES – Continued

Personal Auto Hot Topics…What You Need To Know 3 CE Credits Approved Date: February 6, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

Who Is An Insured 3 CE Credits Approved Date: February 14, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM

E&O: Roadmap to Policy Analysis – Part One 3 CE Credits Approved Date: February 8, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM

Farm Liability Coverages 3 CE Credits Approved Date: February 15, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

E&O Roadmap to Policy Analysis – Part Two 3 CE Credits Approved Date: February 8, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

Ethics and Agent Liability 3 CE Credits Approved Date: February 20, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

The Dirty Dozen 3 CE Credits Approved Date: February 9, 2018 Location: IIAW Webinar – iiaw.com/events Time: 8:00 AM – 11:00 AM

Homeowners Hot Topics…What You Need to Know 3 CE Credits Approved Date: February 21, 2018 Location: IIAW Webinar – iiaw.com/events 12:00 PM – 3:00 PM

Commercial General Liability Coverages 3 CE Credits Approved Date: February 12, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

10 Things Every Commercial Lines Agent Ought to Know 3 CE Credits Approved Date: February 26, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

When The Child Becomes The Parent – Aging Parents and Insurance Decisions 3 CE Credits Approved Date: February 13, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

Fiduciary Liability, ERISA Bonding, and Employee Benefits Liability 3 CE Credits Approved Date: February 27, 2018 Location: IIAW Webinar – iiaw.com/events Time: 12:00 PM – 3:00 PM

FFO AW W..CCO RM REE C ND D TTO OR O IIIIA OM M OR MO OR CLLAASSSSEESS AAN REEGGIISSTTEERR P PLLEEAASSEE G GO O TTO

VIRTUAL UNIVERSITY

KEYS TO WRITING INSURANCE COVERAGE LETTERS Your insureds are not insurance experts, nor should we expect them be. In fact, many don’t like to talk or think about insurance - much less read a “coverage-heavy” letter. However, there are times when agents are required to capture specific coverage facts in writing.

When it becomes necessary to pen a coverage letter, remember three guidelines (I hesitate to call them “rules”):

1. The reader does not know what you are thinking when you wrote the letter.

Have you ever been in a conversation that seemed to begin in the middle? A professional friend of mine often calls and begins the conversation saying something like, “So when we get to the point where you need to respond….” You know as much as I did.

My friend was so caught up in his thoughts, he just assumed I knew the basis of the conversation; he started the conversation in the middle. I had to bring him back to the beginning so I knew where we were. We both needed to begin at the beginning.

Think of your coverage letters the same way, remembering that a letter is not a conversation; it is a one-sided attempt to get the desired point across and answer unasked questions (these are the questions that your letter will raise) in the body of the letter.

The reader cannot ask you questions to gain clarity, this forces them to: 1) guess what you mean; or 2) make incorrect assumptions.

Begin at the beginning and cover all the key points so the insured does not have to guess.

Unfortunately, beginning in the middle or forgetting the insured has no idea what you are thinking is an easy trap in which to fall victim because you know exactly what you are thinking and what you mean – but they don’t. Always view the letter from the receiver’s point of view. Because they are not present inside your head to hear your personal discussion or thought process, you must be explicit and clear in the explanations

you put on paper. Assume the reader has never been part of the discussion and the letter is completely new information. One recommendation is to have an uninvolved third party read the letter. Be careful to not prompt them with any filler information; they must come to the letter “blindly.”

2. Introduce and discuss insurance coverages and concepts so a reasonably intelligent, noninsurance person will understand.

Remember, these are non-insurance people. As you explain coverage, stay away from industry terms (“insuranceeze”) and legal terms not commonly understood (“legalese”). Using such technical language does one of two things (or maybe both): 1) it makes you look self-important; and/or 2) this can indicate you don’t understand the coverage or concept well enough to explain it in simple language.

Although you might have to use the term, “subrogation,” don’t stop there, explain its meaning clearly, using non-insurance terms.

Your job is to make new and complicated concepts familiar and easy to grasp.

3. You must be willing to “let go” of what you have written and be willing to delete that which does not improve the message or comprehension of the concept.

Believe me, I know this is the hardest of the three guidelines to follow. Properly constructing a coverage letter can be very difficult and time consuming. You may spend 10, 15, 30 minutes or even an hour trying to get just one paragraph “perfect;” willingly deleting it after all that time feels like losing a close friend or that you have somehow

failed. Although you may feel like a lot of time has been wasted if you cut it from the letter, stubbornly holding on something that does not accomplish or harms the overall goal of the letter is - childish.

“I spent too much time crafting that paragraph, there is no way I’m not going to use it.” Never mind that using it might turn what was a good letter into a bad one.

A few years ago I heard a story about the musical artist Prince and his 80’s hit, “When Doves Cry.” According to reports, Prince originally composed the song with a bass line.

But before releasing the song, he removed it – because he thought it was a better song without the bass line.

Certainly Prince spent hours crafting and arranging the bass line, but his willingness to remove it - because it ultimately didn’t add to the song - resulted in “When Doves Cry” becoming Prince’s first number one song. If world-class artist is willing to delete something that took him hours to plan, why should we be so unwilling to remove a paragraph that does not accomplish the overall goal of the letter?

Certain self-evident concepts are not discussed in this short article such as the use of proper greetings or endings, the necessity of property grammar and proper sentence structure. The goals of this article are to remind us that the client is not an insurance expert and that we must be able to give them ALL the information they need in a nonthreatening yet technically correct manner.

Writing proper and effective coverage letters takes knowledge, skill and practice. > Chris Boggs, Executive Director of the Independent Insurance Agents and Brokers of America (Big “I”) Virtual University.

The Virtual University is a Big “I” members-only resource. Many articles are based on real-life questions received by the Ask an Expert service. This service ensures that the information is current and topical. Go to www.independentagent. com/Education/VU/. You will need to login with your IIABA username and password before using the VU. The IIABA does not assume and has no responsibility for liability or damage which may result from the use of any of this information.

22 | FEBRUARY 2018

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ERRORS & OMISSIONS

CLAIMS MADE VERSUS CLAIMS MADE AND REPORTED POLICIES: WHAT’S THE DIFFERENCE AND DOES IT MATTER? When it comes to coverage provided, the differences between Claims Made policies and Claims Made and Reported policies are extremely significant. Professional liability policies for Insurance Professionals are typically written on one of these forms.

It is critical to understand the two when purchasing professional liability insurance to protect yourself and your business.

Claims Made Coverage A Claims Made Policy provides coverage for an injury or loss if a claim, such as receipt of a demand letter or service of a lawsuit, is first made during the policy period. Claims Made policies provide broader coverage and contain more liberal reporting requirements than Claims Made and Reported policies. The major distinction between the claims made form and the claims made and reported form is that under a claims made policy form the insured typically need only report the claim “as soon as practicable” or promptly, but not necessarily during the policy term. On the other hand, Claims Made and Reported Policies, as the name suggests, require that the claim be made and reported during the same policy period. >T his wording under a claims made policy may read: “This is a claims-made policy which applies to ‘claims’ first made during the policy period or any extended reporting period.” > Sample insuring language: “We will pay on behalf of the insured ‘loss’ for which the insured is legally liable caused by a ‘wrongful act’ committed by an insured arising out of ‘professional services’ rendered to others. > This type of insurance applies to “’potential claims’ and ‘claims’ first made against the insured during the ‘policy period’ arising out of a ‘wrongful act’ taking place on or after the retroactive date”.

Claims Made and Reported Coverage A Claims Made and Reported Policy also requires that the claim be made during the policy period. However, this policy form also requires that the claim be reported to the

carrier during the same policy period in force at the time the claim was made. (Some states may provide for an automatic reporting period of 30-90 days providing the insured a grace period to report claims). While often less expensive, Claims Made and Reported coverage is much more restrictive. > S ample wording under a claims made and reported policy: “We agree to pay on behalf of the insured such ‘loss’ to which this insurance applies sustained by the insured by reason of liability imposed by law for ‘loss’ caused by any ‘wrongful acts’ committed by the insured, arising out of the conduct of the business of the insured in rendering services for others”.. >T his insurance applies to ”wrongful acts” only if: 1. The “wrongful acts” did not occur before the Retroactive Date, if any, shown in the Declarations or after the end of the policy period, and 2. “Loss” because of the “wrongful act” results in a “claim first made and reported to us” during the policy period. How do these differences play out in real life?

Case Study An insurance agent is insured by Carrier A for policy period July 1, 2008 through July 1, 2009.

On June 27, 2009, the agent is served with a lawsuit alleging that the agent failed to procure the appropriate coverage for her client. On July 1, 2009 the agent changes carriers and moves her coverage to Carrier B. On August 4, 2009, the agent reports the claim to Carrier A. What is the result? If the agent was insured

by Carrier A on a claims made and reported policy form, there is no coverage. The claim was made during the policy period but not reported during the same policy period.

What will Carrier B’s position be if its policy

is written on a Claims Made and Reported form as well? No coverage. Due to the fact that the claim was made during Carrier A’s policy period, the claim was not made and reported during carrier B’s policy period.

What if the agent had renewed its claims made and reported coverage with Carrier A? No coverage. Claims Made and Reported forms do not typically provide continuous coverage and the reporting requirement is typically strictly enforced (i.e., that the claim be reported during the policy period in which the claim was made).

If the agent’s coverage through Carrier A was provided on a claims made basis, the claim is covered. There is coverage under the policy issued by Carrier A because the claim was made during that policy period and, for the purpose of this article, was reported promptly.

Lesson learned While the agent was continuously insured, there is still a gap in coverage under the claims made and reported form. Because of the less onerous reporting requirements under the claims made policy form, the claim can be reported after the policy period has ended without jeopardizing coverage as long as the claim was made within the policy period and reported promptly.

The distinctions between Claims Made and Claims Made and Reported policies do make a difference. While a Claims Made and Reported policy may cost less than a Claims Made policy in the short run, it is because the Claims Made and Reported is a more restrictive form of coverage. It’s important to keep this is mind the next time you recommend or buy professional liability coverage, as the Claims Made and Reported form could end up costing you in the end.

> J anice S. Blanton is an assistant vice president, claims specialist with Swiss Re Corporate Solutions and teleworks out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solutions.

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 2010 Swiss Re America Holding Corporation

24 | FEBRUARY 2018

WISCONSIN INDEPENDENT AGENT

DESIGNED TO DO ONE THING Pushing is a force of effort towards progress. For over 30 years, AMERISAFE has built a no-nonsense culture of safety.

Never shying away from hazard, we simply outsmart it. Policyholders will switch agents just to keep working with us. Workers’ comp is all we do. Strong and steady, clearing the pathway as we go.

800.897.9719 - amerisafe.com

EMERGING LEADER SPOTLIGHT

KASH MOTLANI, AAA Each month we will be featuring one of the active young members of our Emerging Leaders Committee. This month, we get to know a little bit more about Jill Zauner and her involvement on the Emerging Leaders Committee as the Chair of the Networking sub-committee.

Tell us your name and a little more about you: My name is Kashif (everyone calls me “KASH”) Motlani from Oak Creek, WI. I am the AAA Independent Agency Consultant for the State of Wisconsin.

How long have you been on the Emerging Leaders committee? This will be my 3rd year.

How did you hear about the Emerging Leaders Committee? I learned about the Emerging Leaders Committee from my mentor and former manager, Heidi Nienow.

Why did you choose to become active with the Emerging Leaders committee? I felt that it was important to be an active participant in our industry and not just a bystander. This industry is about relationships and I’ve been very fortunate to be able to build strong relationships with many WISCONSIN INDEPENDENT AGENT

future leaders in our industry.

What is your favorite EL event or activity that you’ve done with the EL group? I would have to say the Brent Kelly series was my favorite activity.

During the course of the year I found that it helped mold me professionally and brought our leadership group closer together.

Why should a new agent join the EL committee? This is one of the most forward-thinking leadership groups for younger people in the industry.

This group will teach you the ins and outs of networking and how our industry works.

Through this group you will also build lifelong connections within the industry.

What is your spirit animal? I think my spirit animal would be a bear.

Where is your favorite vacation spot? Las Vegas, I love to people watch.

Do you have any pets? Not since the accident… just kidding. I have no pets.

What is one professional goal for you in the next 3-5 years? One of my many professional goals is to become a Sales or Marketing Director. Our industry is evolving and this presents exciting new challenges.

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RISKY BUSINESS

BEWARE OF THE BEER TRUCK You may be familiar with the saying “if you were hit by a beer truck, what would your family do?”. Now, there are plenty variations… school bus, semi, train, but they all ask the same question; is there a plan to care for your family if you’re no longer around?

The same question should be asked for the business side of your life. For those agency owners, having a perpetuation strategy for your business is critical. For individuals within the agency, how are you sharing your knowledge and training other employees? Do you have consistent agency procedures that would assist another employee in carrying out your day-to-day functions? This is a lot to tackle in one article, so let’s start at the top and look at some of the key points for developing a perpetuation plan.

The first question you should be asking yourself as an agency owner is who. Who is going to take your agency forward if you retire, die or decide to sell? Depending on your current age and the status of the agency, the idea of retiring or selling might not need to be addressed as quickly. There is still a need for planning for the unknown, no matter how difficult it might be to think about.

Another who that must be considered is who will help you create your perpetuation plan? As always, you can rely on your trusted partners at the IIAW for assistance with your perpetuation plan. However, if you do

choose to seek assistance elsewhere be sure it is an industry-specific firm.

This will ensure you have someone who understands your specific issues and you will undoubtedly save time and money in the process.

The final step is creating the plan. Start big and then dig down into the details. Identify the key questions that must be answered to make everyone comfortable with the plan. The most obvious question will be how to transfer ownership in the event of your untimely death.

Also consider, however, questions your employees might have about you prematurely selling the firm and whether you can (or want to) contractually eliminate this concern.

If you have a perpetuation plan for your agency, pull it out and make sure it is still what you need and is properly funded. If you do not yet have a plan created, pick up the phone and call your friends at IIAW…and beware of the beer truck. > Mallory Cornell is the Director of Risk Management for the Independent Insurance Agents of Wisconsin.

SNAP SHOT into a Top 100 Agency How we grew from 28 Producers to 95 Producers.

Q: What markets do you have?

Q: How does carrier contingency work?

A. As the largest independent agency in Wisconsin, RRA has strong carrier relationships. We offer over 45 CL, 20 PL and 45 EB carrier partners.

A. Producers can share in all contingencies. Because of our size, our contingent return is more predictable and stable to our Producers.

Q: Will I make more money?

Q: Do you have a solid perpetuation plan?

A. Yes, we offer one of the strongest returns to Producers. We pay all office costs including staff salaries.

A. Scaling back hours, retiring or planning for the unexpected should be a priority. We help connect Producers with similar interests and backgrounds to develop a buy/sell plan where they are comfortable.

Q: How can I maximize my time?

A. We handle staff management, HR, accounting, IT, rating, office management and other administrative details. This allows Producers to spend more time with their families or growing their book on their terms.

Q: What technology resources do you offer?

A. A dedicated IT department ensures technology resources are performing and the latest tools are being reviewed. We operate on Applied Epic and offer Zywave, AccuComp and HR Workplace Services.

Learn More: Chris Illman I cillman@robertsonryan.com I 800.258.0277 I www.RobertsonRyan.com

News Members in the

Acuity Sets Growth Records in 2017

Acuity Insurance announced that it set new records for business growth across several categories in 2017.

Highlighting the insurer’s financial success is a gain of over $62 million in total written premium during the year, bringing its revenue to an all-time high of $1.44 billion as it enters 2018.

“For the past 18 years, Acuity has consistently grown faster than the insurance industry, and this past year is no exception to that trend,” said Acuity President and CEO Ben Salzmann. “Our 2017 growth is more than double what we expected earlier in the year and is particularly remarkable given the challenging industry conditions that have other carriers struggling.”

We look for the best independent agents and build relationships that last the duration. We are committed to the independent agency system as the only means to deliver our products. Because of that, we work hand-inhand to help our agencies grow profitably.

Our agents set us apart.

For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439 or Mike Ottman at 262.432.3418.

In 2017, Acuity broke the barrier of 300,000 policies in force for the first time in its 92-year history, reached an all-time high companywide new business written premium, and smashed records in both commercial and personal lines. In commercial lines, Acuity attained new high marks in quotes received, quote hit ratio, new business written premium, new policies issued, and customer retention. In personal lines, the insurer achieved an astounding 21st consecutive year of growth, setting a record for total written premium.

“Acuity’s financial success in 2017 is the result of an outstanding partnership between our independent agency force and dedicated staff and the trust of our mutual customers,” said Wally Waldhart, Vice President - Sales and Communications. “We are thankful to everyone who helped us achieve another record-setting year, and we look forward to continued success in 2018.”

“We see insurance industry conditions for 2018 supporting even more growth for Acuity,” Salzmann added. “For instance, many of our competitors are significantly tightening their appetite in commercial automobile insurance or pulling out of the line altogether. In contrast, we are an active market for commercial auto and anticipate continued long-term profitable growth opportunity in the line.”

Since 1887, Badger Mutual has been the insurance company independent agents and policyholders can trust. Now, with our new TRUST Auto and Home plans, policyholders are receiving contemporary, broad coverages at our best rates.

Visit our website to quote your customer in the TRUST program today!

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28 | FEBRUARY 2018

WISCONSIN INDEPENDENT AGENT

TIME TO OFFER CYBER COVERAGE TO ALL SMALL BUSINESS CLIENTS

Coverage for (just about) every small business is available quickly and easily through Big “I” Markets.

We are thrilled to announce a new cyber liability solution you can offer to your small business clients through Big “I” Markets.

Every business has PII (Personal Identifiable Information). If you collect personal information such as email or phone numbers, or accept credit cards, you are exposed to cyber liability. Now imagine your client loses a laptop or business smartphone; or gets the call from a customer that a credit card was improperly used after a visit to your client’s store. Who does that small business call now? What do they do? What are the fines? $200 solves this issue for most small businesses with under 50 employees, if their independent agent has offered coverage through Big “I” Markets’ new “Cyber-Small Business Solution” product.

Merchants of all kinds should carry cyber coverage. Lawyers, CPAs, podiatrists, consultants, counselors, taxi operators, restaurants and bars...you name it. You’ll find our ineligible list is tiny: banks, cloud computing, gambling and adult entertainment.

How to Market Cyber At a minimum, email every small business WISCONSIN INDEPENDENT AGENT

in your client roster to offer coverage. We’ve done the work for you and provided a concise sample letter outlining the product features simply click here to download it. Even better, mail the letter through USPS, or use it as a reason to check in with a call or personal visit...or combine them.

Coverage is “primary to other.” If your client asks for more coverage, offer consultation after providing instant protection. You also have access to industry leader Travelers Wrap+ through Big “I” Markets if higher limits are desired.

Enjoy a Simple Sales Process Binding could not be easier. Enjoy 15% commission, the ease of direct billing and the confidence that comes with using an insurer rated “A” with A.M. Best.

Go to www.bigimarkets.com, choose cyber liability - small business solution and provide a customer email in the quote request function.

BIM takes care of the rest. We collect the application and $200 via credit card directly from the customer, and pay you. The policy and certificate are available in 24-48 hours after payment has been processed. We post a signed

application on BIM, and a dedicated web page is available for self-print of the certificate and policy.

Protect your E&O Document, document, document! After sending your initial marketing letter, ask for a signed declination via DocuSign. We have created a sample form that you can customize with your agency name. If your client doesn’t return the form, use a DocuSign message to document that the offer was sent. If nothing is returned, your file will look strong in the event of a claim.

“We want every policyholder in the Big “I” Professional Liability program (and indeed, every Big ‘I’ member) to offer cyber liability coverage to all their small business clients.

Doing so will minimize the top source of E&O claims, ‘failure to offer,’ and provide better protection to your valued clients,” says Jim Hanley, Big ‘I’ Advantage® Director of Risk Management.

Questions? Go to www.bigimarkets.com and select “Cyber Liability-Small Business Solution” from the commercial products menu, or email bigimarkets@iiaba.net.

FEBRUARY 2018 | 29

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