Wisconsin Independent Agent | February 2021 Magazine

wisconsin INDEPENDENT AGENT FEBRUARY 2021

CONTENTS wisconsin INDEPENDENT AGENT

COVER STORY: Explore the Benefits of an IIAW Membership You’ve made the choice to build your agency on independence, but that doesn’t mean you’re alone.

Membership in the IIAW and IIABA allows you access to an exclusive network of more than a quarter million independent insurance professionals nationwide that receive advocacy, business solutions and technical expertise from the industry’s thought leader.

PAGES

4-13

INSURANCE BARTENDER............................................................6-8 The Superheroes of the IIAW

RISKY BUSINESS..............................................................................12-13

INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2020-2021 EXECUTIVE COMMITTEE President:

Darrel Zaleski | Spectrum Insurance Group, Eau Claire

President-Elect:

Marc Petersen | American Advantage - Petersen Group, New Berlin

Secretary-Treasurer:

Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield

Chairman of the Board:

Chris Costakis | Midwest Insurance Group, Delafield

State National Director:

Exclusive Programs for IIAW Member Agencies

Steve Leitch | Leitch Insurance, River Falls

AGENCY OPERATIONS................................................................14

2020-2021 BOARD OF DIRECTORS

Why You Should Sit Less and Stand More

Mike Ansay | Ansay & Associates, Port Washington

COVID-19.............................................................................................16-17

Mike Harrison | R&R Insurance Services, Inc., Waukesha

One (Or Two) Key Property Loss Provision(s) Attorneys Keep Forgetting

Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake

ASK AN EXPERT.............................................................................19-20

Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine

Q: What is an Agent’s Duty to Report for Claims with Only 3rd Party Knowledge?

GOVERNMENT AFFAIRS.............................................................22-23 Wisconsin Legislature Approves COVID-19 Liability Protection

Dan Lau | Robertson Ryan & Associates, Milwaukee Chad Tisonik | HNI Risk Services, LLC, New Berlin Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa Jonathon Zwettler | Baer Insurance Services, Middleton

VIRTUAL UNIVERSITY.................................................................24

IIAW Staff

How Does the Business Income Respond to a Concurrent Covered Loss?

Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com

MEMBERS IN THE NEWS..............................................................28-29 COMMENTARY FROM COUNSEL...............................................30 COVID-19 Vaccine Updates

FOOD FOR THOUGHT....................................................................31

ADVERTISERS INDEX

Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com Kim Kramp | Association and Agency Accounting Manager 608.210.2976 • kim@iiaw.com Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com Kaylyn Zielinski | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com Evan Leitch | Technology and Risk Advisor 608.210.2971 • evan@iiaw.com

AAA......................................................................23 Badger Mutual Insurance............................31 Berkshire Hathaway GUARD....................3 Big I Markets.....................................................9 DAIS......................................................................21 Erickson Larsen...............................................31 IMT........................................................................32 Penn National...................................................25 Robertson Ryan & Associates...................20 West Bend..........................................................15 Western National............................................18 2 | FEBRUARY 2021 |

wisconsin INDEPENDENT AGENT

Andrea Michelz | Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Education Coordinator 608.256.4429 • diana@iiaw.com Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2021

For information on advertising, contact Kaylyn Zielinski, 608.210.2977 or kaylyn@iiaw.com.

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Commercial Personal Lines We offer insurance solutions for homeowners and for small, medium, and large businesses with competitive pricing, an easy submission process, and the opportunity for multi-product discounts. Visit www.guard.com to see what we can do for you.

Businessowner’s Commercial Auto Commercial Umbrella Homeowners Personal Umbrella Professional Liability/E&O Workers’ Compensation

Pay-As-You-Go options with over 200 payroll partners!

APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.

You’ve made the choice to build your agency on independence, but that doesn’t mean you’re alone. Membership in the Independent Insurance Agents of Wisconsin and the Independent Insurance Agents & Brokers of America allows you access to an exclusive network of more than a quarter million independent insurance professionals nationwide that receives advocacy, business solutions and technical expertise from the industry’s thought leader.

As your agency seeks solutions to challenges and opportunities, turn to the IIAW. Our experience combined with our vast network of insurance professionals seeks to provide you with the optimal solutions. We do the work so you don’t have to!

ADVOCATE When independent agents need a voice on Capitol Hill and in the halls of the state capitol, legislators listen to the Big “I.” Our government affairs teams work around the clock in Washington D.C. and in Madison, WI to protect your clients and your livelihood.

Our expertise, combined with a million dollar Political Action Committee (PAC) and our grass roots network, provides us with the ammunition to protect your independence. We will fight for you on flood insurance, health care, taxes, insurance regulation, and more, while you run your agency.

BUILD Our Agency Solutions offers trusted consulting built for the independent agent. Because we know how important it is for you to succeed in business, the IIAW has created a portfolio of solutions built just for you, including free agency assessments that provide a customized action plan with resources.

TECHNOLOGY

STRATEGIC

OPERATIONAL

FINANCIAL

MARKETING

We help you navigate and choose the best solutions to fit your needs

Protect your investment by reviewing business goals and strategies

Update and improve agency workflows and operating procedures

Review financial processes for accuracy and efficiency

Review your agency marketing efforts and discover helpful tools and resources

INSPIRE The IIAW is inspiring new and existing insurance professionals to become the Agency of the Future.

Our Professional Development Program, educational course offerings, and industry-leading events are inspiring, educating and positioning our members to re-train their brains, re-tool their employees and re-shape their business to be responsive to today’s consumer. Harness your ability, unleash your potential and deliver solutions.

TRANSFORM Traditional insurance agencies need to harness technology in order to compete and win in a bricks-and-clicks marketplace. The IIAW is assisting agents in their digital transformation by helping them rethink their business plan by connecting them with technology platforms and products that integrates with their agency and compliments their commitment to customer service.

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Insurance Agents Errors and Omissions Coverage That’s Right For Your Business Why Big “I” Professional Liability and Swiss Re Corporate Solutions Prompt, local service: Superior customer service from the IIAW, who serves as your agent with underwriting authority offering prompt turn-around of quotes and policy delivery.

More premium discounts: Qualifying agents can save over 50% in premium discounts including the loss control, claims free, agency operations improvement review, efficiency and carrier concentration credits.

Deductible savings: Loss only deductible available along with deductible reduction feature offering up to 100% savings of deductible (up to $25,000) per claim with proper documentation Claims handling: Prompt and thorough claims handling by an experienced staff made up primarily of licensed attorneys that stand ready to support policyholders with any potential incident and claim.

Agency risk management tools: Policyholders have access to a dedicated E&O Risk Management team at IIAW and online tools for agency risk mitigation.

Exclusive: A Big “I” member exclusive policy form and premium credits filed on a Risk Purchasing Group basis giving Big “I” members tailored coverage.

Member oversight: A Professional Liability Committee including IIABA member agents oversees an directly influences the program. Our program was designed by agents for agents.

Swiss Re Corporate Solutions Policy Form Highlights Big “I” Professional Liability program and Swiss Re Corporate Solutions pride ourselves on offering the strongest coverage form in the marketplace that continues to evolve to meet the changing needs of the agents. Review the preferred policy form and you will find that these are just a few of the coverage benefits: • Rate A+ by A.M. Best • Claims-made coverage with full prior acts available • Limits of liability up to $25 million • Broad definition of covered professional services and activities • Comprehensive definition of insured • Aggregate deductibles available • Defense cost outside the limit • $25,000 1st Party Personal Data Breach • $1,000,000 3rd Party Personal Data Breach sublimit available • 60/40 consent to settle clause • Crisis Management coverage; up to $20,000 per policy period for fees, costs and expenses incurred within 6 months of a crisis event • Deductible reduction up to $25,000 per claim with proper documentation, no limitation to the number of claims • Catastrophe Expense $25,000 per incident, $50,000 per policy period • Regulatory defense $100,000 per policy period in addition to the limit of liability • Several options to earn premium discounts up to 30%

If you have any questions, please contact Trisha Ours, trisha@iiaw.com

The information provided is for general informational purposes only and you should review the policy form and any applicable endorsements for complete policy language. Please note that all applications are subject to review, underwriting and approval by Westport Insurance Corporation, a member of Swiss Re Corporate Solutions.

INSURANCE BARTENDER

THE SUPERHEROES OF THE IIAW “Avengers: Assemble!” is a famous line Captain America shouts during the movie “Avengers Endgame” (from Marvel comics) right before he leads all the characters into battle. How are the Avengers relevant to the IIAW, let alone this article? Well, the team we have assembled at the IIAW are the superheroes our members never knew they needed, but they always wanted.

I must say that over the last ten years we have had several talented employees come and go, but the team we have now at the IIAW is special. This is one of the best group of individuals that I have had the opportunity to lead since I joined the IIAW in 2010. Each “insurance superhero” has a unique set of skills and professional experiences that lends itself to the success of our organization and fulfill its mission to help independent agents compete and win. I wanted to take a moment and introduce you to each of them, and provide some additional context into each of their superpowers. We are more than just an Association; we are our members’ strategic business partner, and many of them call on us each day for help and we hope you will too (if you are not already).

Mallory Cornell, Vice President Mallory is one of the leaders of the superheroes at the IIAW, and she is heavily involved in its operations. She is my right hand and helps oversee a variety of functions, but none more important than the Agency Solutions (risk management and consulting) arm of the organization.

She is an expert at understanding agency operations and their employees, workflows, and procedures. She is an approved E&O auditor and has helped agencies all over the country stay out of trouble by mitigating claims.

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Her superpowers are teleportation and telepathy.

She can assist agencies across the country, virtually or in person. She is where she needs to be when you want her to be there. Mallory takes pride in being available to help at a moment’s notice. She also has the ability to read minds and make people do as she wishes.

Her experience has exposed her to many people and experiences. She knows a thing or two, because she has seen a thing or two. Agents are usually left routinely documenting their files which allows her to change the course of an agency’s trajectory of no longer being prone to having E&O claims or internal procedural mistakes. If you need any assistance with making improvements to your agency’s operations or in need of mapping out workflows, she is your superhero.

Kim Kramp, Association & Agency Accounting Manager Kim has been with the Association for almost 10 years which makes her one of the wisest superheroes at the IIAW. Kim handles the accounting for the Association and is one of our resident experts at our Association and agency management systems. She is routinely called upon to help agencies clean up their books, to take over an agency’s bookkeeping functions or to help train new hires on the accounting functions of an agency management system such as PartnerXE, Applied Epic, TAM as well as Vertafore and Hawksoft. Her superpower is time travel and restoration. She can go back into time to restore some of the most complex bookkeeping mistakes. She has also used her time travel abilities to peer into the future to better assist agencies in projecting and preparing for their annual budgets.

Trisha Ours, Director of Insurance Services Trisha is one of our superheroes who is called upon multiple times a day by numerous agencies to assist them with their E&O, EPLI, Data Breach or other insurance policies to help protect and defend their agencies. Her background (prior to the IIAW) was working for one of the county’s largest and most respected independent agents which provide her with unique insight into agency operations which allows her to assess and recommend the proper policies that are best suited to cover our members’ evolving needs. Her superpowers are replication and super speed. She can help agencies replicate, reproduce and remember what needs to be on an application. Her super speed allows her to work five times faster and do the job of multiple people. She is known far and wide for her amazing ability to help members understand the difference between policies, why they need them and the value of being a member of the Association. She protects our members most valuable assets - their people and their agency!

Evan Leitch, Technology and Risk Advisor Evan assists our members, companies, and other Big I Associations with technology and operations. Evan routinely interacts with various insurance technology companies to stay up to date on the latest technology trends in the industry. He is also a vital member of Mallory’s team, working to help agencies improve their operations and mitigate potential E&O claims. Evan’s superpowers are shapeshifting and technology/technopathy (much like Iron Man).

Evan is accountable for probably the widest array of responsibilities. He assists with many internal projects that help the Association stay one step ahead while helping agencies navigate the complexities of running a business by helping them find solutions and address problems. He can shapeshift into a multitude of roles if means being helpful to the person or the agency he is assisting. Evan uses his insurance and technology acumen to help all the Association’s business partners and members to be successful day in and day out.

Kaylyn Zielinski, Marketing and Communications Coordinator Kaylyn is a marketing and public relations genius. She has the ability to take something ordinary and make it extraordinary and beautiful (visually and literarily). She can bring purpose to a photo and wit to your words.

She helps bring the association to life through our publications and communications by finding creative ways to market our value proposition in a way that resonates with our members. She also puts her talents to use to help agencies find creative ways to tell their story. Her superpower is camouflage and persuasion.

Her superpowers allow her to bring publications, videos, websites, and much more to life by visually blending themes and messages into visually appealing illustrations. This skill allows Kaylyn to gain someone’s attention and persuade people to take important actions such as attend events, purchase insurance and much, much more.

Andrea Michelz, Membership Engagement Coordinator Andrea helps articulate the importance of being a member in the most prestigious insurance Association in the state. How does she do this, you may ask. Well, she used to be a member of the IIAW. Who better to help agents than another agent who understands them and their needs? Not every independent agency is a member, and those that are represent the very best that our industry has to offer. They are invested in their business, employees, and their communities. Andrea aligns our members with the right tools and resources to help them run a successful business so they can be superheroes in their own communities- protecting and insuring the American dream. Looking for an answer to a complex question or problem? Look no further for Andrea is here to help. Ensuring our members get a return on their membership investment is what she does best. Andrea’s superpowers are persuasion and x-ray vision. Thanks to Andrea’s extensive experience as an independent insurance agent, she has the ability to connect with agents on a deeper level and see right through the trials and tribulations that keep them up at night. She brings solace and peace-of-mind by providing agencies with the right advice and counsel.

She is even known for her powers of persuading members to renew their dues.

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| FEBRUARY 2021 | 7

Diana Banaszynski, Education Coordinator

Josh Johanningmeier, General Counsel

Josh serves as the Association’s General Counsel. He helps the Association and its members navigate the complexities of the law as it pertains to all the various aspects of our businesses. He has also been called upon to assist with the Association’s government and regulatory affairs activities from time to time as well. Typically referred to as the smartest man in the Association, not to be confused with the Dos Equis “Most Interesting Man in the World”. Although people tend to have a hard time telling them apart, as Josh lives a very similar life. Just kidding, he has three kids! Josh’s superpowers would be clairvoyance due to his ability to gain information through extrasensory perception and intangibility because nothing ever sticks. Yes, he is that good.

Diana works in the shadows. Never seeking attention but playing the role of the unsung hero. Facilitating continuing education classes and filing credits so agents can continue to sell insurance. Without her agents throughout Wisconsin may not be able to sell insurance. While that might be a stretch, in addition to being the insurance education expert, she also helps coordinate our insurance pre-licensing classes and she serves as the go-between the association, its education providers, members and the Office of the Commissioner of Insurance. Her superpowers are agility and invisibility. She can traverse the insurance education landscape quickly and easily, which allows her to seamlessly assist our members with any of their insurance-learning needs. Oftentimes she may appear to be invisible (because she does most of her communicating via phone or email), but she is very much available and ready to assist our members with any education questions or needs.

As for me and my superpowers, well that is to remain a mystery! What good superhero goes around telling everyone of their superpowers?

Misha Lee, Lobbyist Misha is responsible for the Association’s government and regulatory affairs. He works vigorously to ensure our members’ interests are advocated for and defended in the halls of the state capitol and in the office of the insurance commissioner. His superpowers would be mind control and immortality. One could say he has had so many legislative successes that he possesses some type of mind control over legislators.

Considering he has successfully navigated and survived state politics for the last few decades, he must be immortal.

I am thankful I get to lead this group of insurance superheroes. I get to see day in and day out the difference they make in this industry and in the lives of our members. We all take great pride in the work that we do. If I can leave you with one piece of advice, a call to action of sorts, let it be this: If you have a question, a problem or an opportunity, please make the IIAW your first call. As you can tell, we have a wide array of professionals with a variety of experience that stand ready to assist you no matter what you are facing. We are here to serve you, and we look forward to helping you at every step along the way.

“It’s not who I am underneath, but what I do that defines me!” - Batman

> Matt Banaszynski

Matt’s Mixology:

What you need:

• 1 oz. Cherry Vodka • 1 oz. Blue Curacao • 2 oz. Sprite • 1 oz. Coconut Vodka • 1 oz. Grenadine • Simple Syrup • Ice • Gold Sanding Sugar • 2 Small Plates • Shaker • Cocktail Glass 8 | FEBRUARY 2021 |

Directions:

CEO of IIAW

Superman cocktail

1. Set out two small appetizer plates. On one of the plates, pour out about 1 tablespoon of simple syrup. On the other plate, add the sanding sugar.

2. Take your cocktail glass and dip the rim of it into the syrup and then into the sanding sugar. Set the glass aside while you prepare the cocktail.

3. Fill your glass with ice (small chunks work better than larger ones).

4. In a shaker, add the vodkas and grenadine and shake it like you’re Superman.

5. Pour the mix into your glass.

6. Add the Blue Curacao and Sprite to your shaker and shake vigorously again.

7. Pour the blue mixture slowly into the glass, pouring it straight down the center to achieve the layered look.

8. Garnish your Superman Cocktail with a fun straw. Enjoy!

wisconsin INDEPENDENT AGENT

Photo and recipe courtesy of thismamaslife.com

YES WAY.

From time to time we meet a Big “I” member who hasn’t yet learned about the market access solutions available through Big “I” membership. After hearing about our stellar product lineup and competitive commissions, the reaction can often be summed up as, “No way!” But we assure you–yes way.

Big “I” Markets, featuring Big “I” Eagle Agency, has been working with our member agents to make insurance magic since 2002. As part of your national association, it’s our mission to bring you the best solutions to help your agency thrive. We know you because we are you. Find out how to plug into the power of cyber, affluent, bonds, umbrella, standard & non-standard personal lines, and small commercial today.

No fees. No minimums. Own your expirations.

BIGIMARKETS.COM Updated June 2020

RETIREMENT SERVICES.

RETIREMENT SAVINGS MADE EASY, PEASY LEMON SQUEEZY...

DENTAL, TOO!

WE COULD ALL USE A LITTLE SIMPLE IN OUR LIVES If you have 100 employees or less and want a retirement savings plan that is straightforward and virtually effortless, the lesser known Simple IRA plan ϐits the bill.

When compared to a 401(k) Plan, a Simple IRA is an easy to administer plan that provides the same underlying savings features of the 401(k) plan but with a streamlined design that reduces the amount of administrative efforts with no annual compliance testing or 5500 ϐiling.

IIABA’s Big “I” IRA Program has partnered with administrative service provider iraLogix to provide state of the art administration along with low cost investments from a variety of fund families including

the ever-popular Prudential Stable Value Fund.

Additional beneϐit programs are available for you and your employees through the Big “I” including:

The

BIG I MEP 401k Plan life insurance Group short- and long-term disability Group dental Group vision Group

Our programs are designed to meet the needs of Big “I” members with maximum ϐlexibility at a competitive cost.

Reach out today to see how easy peasy it can be!

Contact IIABA’s Christine Munoz at christine.munoz@iiaba.net, or visit www.independentagent.com and click on “Retirement.”

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Agency Solutions TRUSTED CONSULTING FOR THE INDEPENDENT AGENT

We know how important it is for you to succeed in business.

The IIAW has created a portfolio of solutions built just for you.

OPERATIONAL EVALUATION Evaluate agency workflows and operational procedures with a customized plan for your agency

VISIT IIAW.COM/AGENCYSOLUTIONS TO START YOUR FREE PERSONALIZED EVALUATIONS.

Explore other Agency Solutions evaluations:

TECHNOLOGY

STRATEGIC

FINANCIAL

MARKETING

Questions?

Contact Mallory Cornell IIAW Vice President mallory@iiaw.com wisconsin INDEPENDENT AGENT| FEBRUARY

2021 | 11

RISKY BUSINESS

EXCLUSIVE PROGRAMS FOR IIAW MEMBER AGENCIES In a hurry? We can expedite this search for resources YOU need.

The team at IIAW created agency-focused evaluations that match an agency to the member benefits they would find value in. Answer a few questions and receive an immediate report with necessary links. Think of it as your personal map to IIAW resources.

Visit www.iiaw.com/agencysolutions to get started.

The staff at the Independent Insurance Agents of Wisconsin love to find the right resource, course or form for our member agents who call when they’re feeling “stuck”. We understand it can be hard to remember every member benefit we have to offer, so tear out this article (or visit bit.ly/FebRiskyBusiness for a PDF of this article) and hang it on your office wall because we are diving in!

Technology Solutions for Your Agency Agents Council for Technology (ACT) provides guides to disaster planning, cybersecurity, customer experience and other emerging trends to help your agency. This Big I National resource can offer best practices and information through online tools and ondemand webinars.

Certificates of Insurance The Certificates of Insurance Resource page on the IIABA website is full of great information including a 2020 webinar and additional on-demand recordings. The IIAW website also features additional online courses for agency employees looking to sharpen their certificates of insurance skills.

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E&O Risk Management

For years, IIAW members have had access to the E&O Happens website which is filled with articles and best practices for agencies.

Since 2017, agents have also had exclusive access to the IIAW Agency Risk Management program which offers one-on-one consulting, E&O risk mitigation tools and discount opportunities for policyholders.

Education The IIAW aims to provide quality online continuing education programs through our partnerships with the IIABA and ABEN. These courses are regularly updated and meet the current needs of agency personnel. In addition, the IIAW partners with MyAgencyCampus to bring members best in class training for new employees and employees looking to build their professional skills.

Employee Agreements

Market Access

Updating Producer Contracts is an important task but not always a quick and easy one.

The IIAW has not one, but two great resources to help with this process. The IIABA offers a Guide to Producer Contracts for agencies looking to create or update internal contracts. IIAW partners at Godfrey & Kahn have also developed an Employment Agreement whitepaper with best practices and sample clauses. Agencies can contact the law firm for additional one-on-one support as well.

Looking access for additional markets but don’t have the volume to obtain your own contract? Big I Markets offers a no fees, no minimums option to find the products you’re looking for. This quick and easy option offers access to many carriers who can provide cyber coverage, small commercial, personal umbrellas, jewelry and many more!

Hiring (WAHVE, Big I Hires) As many agencies continue to grow or find the need to replace critical positions on their team, the IIAW has your back with resources to save you money and help with the process.

Member agencies have access to an HR toolkit filled with sample job descriptions, a hiring guide and best practices. We also encourage members to explore a contract talent solution called WAHVE which provides the agency with highly skilled professional talent without the added internal expense.

The final value-added tool is Big I Hires, offering agencies of all size a DIY Hiring Toolkit, recruiting options and many HR resources.

Marketing and Branding When it comes to marketing and branding, the IIAW has your back. Many agencies recognize the importance of digital marketing efforts and creating brand awareness within their community but they do not have the internal capabilities to fill this need. Quick and easy resources are key to success and through Trusted Choice, an agency can find social media posts, custom marketing campaigns, Marketing Reimbursement Program and training programs. The IIAW Marketing Resources page is a great place to start to find exactly the tools you are looking for.

Government Affairs The IIAW is the eyes, ears and voice of independent agents not only in our state capitol but on a national level as well. One of Wisconsin’s most respected government relations firms, Lee Government Relations, covers all facets of the Wisconsin state government and opens the door to the state legislature, Office of the Governor and state agencies.

Online Community The IIAW Online Community was launched in 2020 and is an online networking hub to ask questions, receive personal feedback and network with other industry professionals.

Join today and explore this exclusive platform for insurance agents in Wisconsin.

If you have any questions about these resources or other resources available with an IIAW membership, feel free to reach out to me by email at mallory@iiaw.com or by phone at 608-210-2975.

> Mallory Cornell,

IIAW Vice President and Director of Risk Management

wisconsin INDEPENDENT AGENT| FEBRUARY

2021 | 13

AGENCY OPERATIONS

WHY YOU SHOULD SIT LESS AND STAND MORE When you think about something that might have a harmful effect on your health, you probably don’t think about the chair you sit on for work – but maybe you should. Even before COVID-19, Americans didn’t get enough physical activity, but the pandemic has made things worse. Most of us are getting outside less, watching TV more, skipping the gym, and spending countless hours in front of the computer on Zoom meetings. That means we’re all sitting way too much – and it’s not good for our bodies or minds.

So, how much sitting is too much? If you sit more than eight hours a day with no physical activity, the risk of dying is similar to the risks of dying from obesity or smoking. The average person spends 12 hours sitting per day. According to the World Health Organization, the fourth leading factor for global mortality is physical inactivity. And 3.2 million deaths a year are related to physical inactivity.

In the short term, too much sitting can lead to anxiety and depression, poor posture, weakened leg and gluteal muscles, weight gain, and problems with your hip flexors.

In fact, sitting is actually harder on your back than standing because it can put traumatic pressure on the disks in your back.

The simple truth is that humans were made to stand. Your heart and cardiovascular system work better that way, and when you’re physically active, your energy levels improve and your bones maintain strength. Moving also helps aid digestion. If you spend a lot of time sitting, digestion is less efficient, so you retain fats and sugars as fat in your body.

A common misconception is that you can counteract too much sitting if you participate in moderate daily exercise. But according to The Journal of Medicine and Science in Sports and Exercise, the “Active Couch Potato” phenomenon states that even an active person who works out five times a week still faces risks associated with “Sitting Disease”. In other words, you can’t undo eight hours of sitting with a workout.

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wisconsin INDEPENDENT AGENT

Fortunately, you can easily combat the effects of sitting too much simply by standing more. You can start by following these 10 tips: 1. Set an alarm each hour to ensure you’ll get out of your chair (or off your couch) throughout the day.

2. Create “movement appointments in your calendar. Use them for standing, marching in place, pulling your knees to your chest, or walking up and down a flight of stairs.

3. Stand or walk around your house while you’re on Zoom calls.

4. Buy an adjustable desk so that it’s very easy to flex from sitting to standing during your workday.

5. Get fresh air. Go outside and take short walks throughout the day.

6. Stand up and stretch your neck, legs, arms, shoulders and chest.

7. Try a chair that encourages movement even while sitting, such as a Swiss ball.

8. When watching TV, set a movement challenge for every commercial break (instead of fast forwarding through them).

9. Monitor your daily step count. Set a goal and stick to it. If you need extra motivation, join a online group to help you hit your target step count.

10. If you’re leading a meeting, consider including 5 minutes in the agenda where you ask everyone to stand up and/or stretch.

Start small by picking three things from the above list that you’ll change this week to get more active. Then, take note of how you feel on days when you incorporate standing and movement versus days when you don’t. How does your body feel? How is your mood? Are you able to concentrate better throughout the day? Becoming aware of the differences in how you feel might surprise you.

These days, we can all use a positive boost to our physical and mental well-being, and there’s no better way to start than by standing up.

Pamper your customer’s business with a policy from West Bend.

Your customers raised their business with hard work, from nothing but a dream. Now help them nurture it.

An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable.

So wrap it in the cozy warmth of the Silver LiningÂŽ.

COVID-19

ONE (OR TWO) KEY PROPERTY LOSS PROVISION(S) ATTORNEYS KEEP FORGETTING Are you tired of talking about COVID? I am. Are you as tired of the COVID business income coverage debates? I am.

Because I’m so worn out, this article focuses on ONE, ok two, key policy provisions every attorney and most judges seem either to forget or are purposely ignoring. Maybe it is because these provisions apply only when two conditions meet: The policy does not contain a virus exclusion; and The court holds that the presence of the virus ON the surface of the property qualifies as “direct property damage.”

A judge in Ohio recently denied one insurance carrier’s request for dismissal in two separate suits because both conditions were present.

Cuyahoga County Court of Common Pleas Judge Maureen Clancy allowed the argument that the presence of the virus on the property caused damage. Plaintiff attorneys contend that is was essentially the same as smoke damage. Thus, the presence of the virus on the surfaces (if it can be proven) results in direct property damage triggering the property policy and business income coverage to respond. More detail on this discussion and decision can be found in the Claims Journal article, The Key to Winning COVID BusinessInterruption Claims: Say the Virus is Present.

Although this seems to be an unusual allowance, it must now be addressed.

At least two judges to this point have seemingly ignored the generally understood meaning of “damage” applied by most courts – a change in the physical condition necessitating repair - holding that presence of the virus causes direct damage to the property.

If direct damage has occurred, business income coverage can be triggered.

Policy Conditions Within insurance contracts there are policy conditions. Some are “conditions precedent” and others are “conditions subsequent.”

“Conditions precedent” are conditions the insured must comply with BEFORE a loss occurs to assure coverage is available WHEN a loss occurs (i.e. being truthful in the application, paying the premium, etc.). “Conditions subsequent” are conditions that must be complied with AFTER the loss to protect coverage (i.e. reporting the loss and providing a proof of loss). Violation of a condition subsequent can negatively affect coverage, up to and including voiding coverage.

Two “conditions subsequent” found in ISO property policies apply specifically to the claim that the presence of a virus on the surface causes direct property damage. These read:

In reality, this accusation is quite easy to defeat. Well, the intent is not really “defeating” the ruling, but rather to use the ruling to prove that little to nothing is owed by the insurance carrier, even if the presence of a virus is similar to smoke.

3. Duties In The Event Of Loss Or Damage

Business Income Truism

(4) Take all reasonable steps to protect the Covered Property from further damage, and keep a record of your expenses necessary to protect the Covered Property, for consideration in the settlement of the claim. This will not increase the Limit of Insurance. However, we will not pay for any subsequent loss or damage resulting from a cause of loss that is not a Covered Cause of Loss. Also, if feasible, set the damaged property aside and in the best possible order for examination.

One fact about business income coverage rarely discussed during these “COVID court days” is that business income is not stand-alone coverage. Business income is triggered only when there is first a direct loss to property.

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a. You must see that the following are done in the event of loss or damage to Covered Property:

(6) As often as may be reasonably required, permit us to inspect the property proving the loss or damage and examine your books and records.

Also, permit us to take samples of damaged and undamaged property for inspection, testing and analysis, and permit us to make copies from your books and records.

Notice that the insured MUST take reasonable steps to protect the covered property from further damage. What does this entail in the case of or in the presence of a virus? Cleaning the surface.

Once the surface is cleaned, there is no more damage. If there is no longer damage, the period of restoration ends. Once the period of restoration ends, there is no longer a covered business income loss. This is how the policy is designed.

from further “damage” by cleaning it, they have violated a condition of the policy. But this matters only if they can prove the virus is present. Some testing must be done for proof to exist – and the insurance carrier is allowed to test.

Only while the virus is causing “damage” does the period of restoration exist. Once the virus is no longer viable or is removed, it is no longer “damaging” the property and the period of restoration ends. Once the period of restoration ends, business income payments end.

What the Carrier Owes As stated previously, business income coverage is triggered only when there is direct property damage. If/when the insured proves that the virus is ON the property (and thus is causing “damage”), the insurance carrier owes the cost of cleaning the premises.

How long does it take to clean the property to repair the “damage”? The answer depends on the size and complexity of the building. One to three days maybe? Most ISO-based business income policies have a 72-hour deductible, so if the property is cleaned within 72 hours, the virus that caused the “property damage” is no longer present, thus there is no longer damage. Once the damage is repaired, business income is no longer owed.

(Side note: Many scientific studies have concluded that the virus is viable on most surfaces for between one to three days; so even if it’s not cleaned, there is no “damage” after three days.)

Sub-paragraph a.(6) above is fascinating. The insured is required to allow the insurance carrier to take samples for testing. If no virus is detected by these tests, how is the loss proven? The insured cannot simply say that the virus is present, some proof must be provided by the insured, and the insurance carrier must be allowed to undertake its own tests to prove the insured’s assertion.

The ability of the insurance carrier to undertake these tests is reasonable when coverage is written on a “risk of direct physical loss basis” (“all risk” as the courts like to call it).

Remember, when coverage is written on a “risk of direct physical loss” basis the insurance carrier has to prove coverage does not apply. How can the carrier prove it if they are not allowed to test?

Policy Conditions Matter Insurance policies are contracts that place specific requirements on both parties to the contract – the insurer and the insured. If either party violates any of the policy conditions, remedies are available to the harmed party.

The insured is required to comply with these “conditions subsequent.” If the insured does not comply, the insurance carrier has the right to a remedy – up to and including the denial of coverage.

If the insured has not undertaken to protect the property

If it takes longer than 72 hours (or whatever the subject business income policy’s time deducible is) to clean the premises (ultimately “repairing” the “damage”) the insurance carrier owes the loss of income during the time of the “repair” – only. If the insured cannot reopen because of a governmental order, that is still excluded because of other provisions in the policy (re-read condition a.(4), paying attention to the “subsequent loss” wording).

But if there is no virus detectible, there is nothing to clean and no “damage.” In this case, the insurance carrier owes nothing.

It’s a Good Try, But Nothing is Gained While the effort expended by plaintiff’s attorneys is understandable and even admirable, nothing is netted for the insured using the argument that a virus compares to smoke and is causing damage. The “damage,” if there is any, is temporary and “repaired” by cleaning (a policy condition) or ceases at the loss of the virus’ viability (death). Further, the insurance carrier has the right to test for the presence of the virus to prove it is present.

If the insured fails to comply with these two conditions, the insurance carrier is within the rights granted by the contract to apply the relief allowed.

(Note: Policy language used in this article is ISO language from the CP 00 10 10 12.)

> Chris Boggs IIABA Executive Director of Risk Management and Education wisconsin INDEPENDENT AGENT| FEBRUARY

2021 | 17

ASK AN EXPERT

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Q: What is an Agent’s Duty to Report for Claims with Only 3rd Party Knowledge?

Here’s the situation (and it seems to be a common one): An insured is under scrutiny by media and news outlets for what the reporters are alleging is improper employee terminations. The news is readily available. If the insured’s agent sees that news, is there any duty on the agent’s part to report the potential claim to the insurer?

Put another way, if an agent has knowledge of a potential claim (or of a claim) through a third-party source, like Facebook or a news article, does that agent have a duty or responsibility to encourage or report a claim to the Insurer?

A: At this point, it is only hearsay evidence. Contact the insured if you are concerned to inquire whether you need to file a claim.

---------You must discuss with the FIRST NAMED INSURED as they are the only legal representative with standing in terms of the policy. Then make a note in your file that this potential incident has been discussed along with any notes from that conversation.

---------I believe the primary duty of the agent in a situation such as you describe it to advise the insured (in writing) that reporting a potential claim is a prerequisite to possibly accessing coverage. They can do this through their agent (who can then communicate with the carrier and initiate insuredinsurer contact), or directly with the insurer.

---------It’s the insured’s duty to report the claim to the carrier promptly. However, you are aware of a possible situation that could give rise to a claim. I would talk to your insured and advise that it would be good idea to report the incident. That gives the carrier time to start assembling the claim file.

---------Your question is solely a legal question which requires the considered response of competent legal counsel.

The existence of a duty, as well as the scope of a duty, is a matter of law. I would suggest to properly answer your question – does an agent have a duty – is a question for the right attorney.

That said, in most states insurance producers are viewed in terms of a standard of care – i.e. what a reasonable insurance producer do in the same or similar circumstances. As a best practice, is there any reason you would not reach out to your customer and inquire about submitting a potential claim?

---------Your obligation to the carrier is to report all losses and/or claims to the carrier per the terms of your agency contract. It is also your obligation to the client to report all losses he or she reports to you to the carrier. In the situation your report, there is neither a loss nor a claim. You are under no obligation under that circumstance. If your contract with the carrier had language that you needed to report any KNOWN POSSIBLE SITUATION THAT COULD RESULT IN A LOSS OR A CLAIM, it is unlikely you would have signed it. It is also not at all likely that any agencycarrier contracts have such language. You have enough work to do without worrying about this.

---------Facts, events, situations or circumstances that may lead to a claim are required to be reported. Don’t gamble on not reporting. wisconsin INDEPENDENT AGENT| FEBRUARY

2021 | 19

---------Ask your E&O insurer what your legal duties are to the agency client -- and to the insurers that might defend a claim - presumably EPLI. Are you an appointed agent of the insurers or is it a brokered deal to an insurer directly or through a wholesaler? What do your agency and brokerage contracts state as to your duties to insurers, wholesalers and to clients?

It would be a good faith service to your client to contact the client and inquire if there is a potential claim to be filed. You could remind the client that EPLI policies have strict reporting provisions - that might not be known to the client and its lawyers.

While that could be good for the client, your agency E&O lawyers might advise otherwise not wanting you to create a special relationship. Check with your E&O lawyers.

---------Claim knowledge activates claim reporting to insurer and insured. In court, an agent’s knowledge is deemed insurer knowledge.

---------As the agent for an insurer, they are presumed to know what you know. Read what their policy says with

regard to claims reporting.

Many policies require reporting by the insured if there MIGHT be a claim...for example, most agent E&O policies.

---------I find this an interesting dilemma. The question could also be asked if this now part of on-going “field underwriting” a risk due to the level of access to information we have today? Does our duty to field underwrite end at the time of application? And what if you see behavior contrary to the application submitted, like this news story or a client does AIRBNB or does ridesharing, but hasn’t disclosed and you find out through social media?

I’m not sure if this rises to the level of a 3rd party claim, but social media and media in general is going to change the way we continue to evaluate risk and language will change to accommodate the new platforms of communication and exposure.

---------Pretty simple - knowledge of an agent is considered knowledge of the principal (insurer).

ASK AN EXPERT

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Robertson Ryan has been offering innovation through our unique Agent Owner structure since inception in 1960. Time and time again after an agent or agency joins us they say, “We wish we did this years ago.” Our team recognizes the strength and power behind the agent and insured relationships so we’ve built, and continue to fine-tune, a support network rewarding those affiliated with RRA. Find more at, www.RobertsonRyan.com/AgentOwner ...and let’s connect. Call or email me 414.221.0363 or cillman@robertsonryan.com. I look forward to answering your questions!

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www.RobertsonRyan.com 20 | FEBRUARY 2021 |

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GOVERNMENT AFFAIRS

WISCONSIN LEGISLATURE APPROVES COVID-19 LIABILITY PROTECTION In relatively short order following lawmakers being sworn into office to kick off the 2021-2022 legislative session, members of the Wisconsin Assembly and Senate wasted little time taking action on a second COVID-19 relief bill. Assembly Bill 1 (AB 1) passed the State Assembly on a party line vote of 56-34 and the State Senate approved its own version of the bill with an amendment by a vote of 29-2. The bill is now pending approval by the Assembly.

One important provision contained in both Assembly and Senate versions of the relief package would provide liability protections for businesses and other organizations that face the potential for frivolous lawsuits during the ongoing pandemic. This issue is one that IIAW has supported since the beginning of the pandemic in March of 2020. Many business owners, including IIAW members and their customers, have expressed concern they will be targeted by lawsuits as they struggle with the financial challenges, regulatory burdens, and economic uncertainty associated with reopening and rebuilding their businesses from the impact of COVID-19. Democrats have proposed their own COVID relief bill that does not include any liability immunity language. Without liability protections, many organizations including businesses, schools, universities, nonprofits and others could face costly litigation – even though they did everything right to minimize the spread of COVID-19. Importantly, the liability protections contained in AB 1 do not protect those entities 22 | FEBRUARY 2021 |

wisconsin INDEPENDENT AGENT

that participated in reckless or wanton conduct, or intentional misconduct for non-compliance with local, state and federal COVID-19 health requirements.

Here is a brief summary of the liability immunity language included in the bill from the nonpartisan Legislative Fiscal Bureau: The bill creates a liability exemption for an entity for the death of or injury to an individual or damages caused by an act or omission resulting in or relating to exposure (directly or indirectly) to COVID- 19 in the course of or through the performance or provision of the entity’s functions or services. Specify that the provision would be in addition to, not in lieu of, other immunity granted by law, and would not limit immunity granted under any other provisions of law. Specify that immunity does not apply if the act or omission involves reckless or wanton conduct or intentional misconduct. The provision would apply to claims beginning on March 1, 2020, but not apply retroactively to actions already filed before the effective date of the provision.

For the purposes of the liability exemption create the following definitions: “COVID-19” means the infection caused by the novel coronavirus SARS-CoV-2 or by any viral strain originating from SARS-CoV-2, and conditions associated with the infection.

“Entity” means a partnership, corporation, association, governmental entity, or other legal entity, including a school, institution of higher education, or nonprofit organization. The term would also include an employer or business owner, employee, agent, or independent contractor of the entity, regardless of whether the person is paid or an unpaid volunteer.

The amendment approved by the Senate scales back the Assembly’s proposal and eliminates a number of provisions specifically related to restrictions on employers and local public health departments regarding mandatory vaccinations, among other items. The Senate amendment was a product of direct negotiations between the Governor and Senate Republican leadership who wanted to pass a bill that the Governor would quickly sign into law. Governor Evers has already said he will sign the bill that was approved by the Senate. However, Assembly Republican leadership have since expressed opposition to the Senate’s modifications and said they will

make changes to the bill when they return to session later this month. Because of the policy differences between the Assembly and Senate, as well as the Governor, the bill’s future on being signed into law remains uncertain.

COVID-19 liability immunity is strongly supported by a broad coalition of over 70 Wisconsinbased organizations, including IIAW. Similar liability protection language to the one that was approved by the Legislature has passed in at least four states with split government like Wisconsin, including Kansas, Louisiana, Nevada and North Carolina. Overall, more than 20 states have enacted some type of COVID-19 liability protection and that number is expected to grow, especially with the lack of congressional action or support from the new Biden Administration to address the issue. >M isha Lee IIAW Lobbyist

For more information on becoming a AAA Independent Agent: Leo Plese (630) 328-7076 lmplese@acg.aaa.com

VIRTUAL UNIVERSITY

HOW DOES THE BUSINESS INCOME RESPOND TO A CONCURRENT COVERED LOSS? An agent posed to me this question: Several of my clients’ have suffered damage as a result of the riots in the area.

However, prior to the riots they were already closed as a result of state-wide COVID-19 closures. How will the business income policy respond? Will loss payment be affected by the previous closure order?

Paragraph 3.a.(2) is the key in both ISO’s business income policies. Both apply the LIKELY Net Income to determine the amount of business income loss. If the business was considered “non-essential” and was thus closed as a result of the state’s COVID-19 orders, the likely Net Income is zero. No dollars were being earned.

My answer is unfortunately, yes, the business income payment IS affected by the COVID-19 closures. When and if business income coverage is written using Insurance Services Office (ISO) or language similar to the CP 00 30 10 12 - Business Income Coverage Form-With Extra Expense or CP 00 32 10 12 - Business Income Coverage Form-Without Extra Expense, the same methodology for determining business income loss payments is applied. These and similar business income forms determine the amount of loss as follows:

Looking at the real scenario addressed in the question, the operation was forced by governmental decree to close for a specified time; obviously, the business is losing revenue during the government shutdown but there is no coverage for the loss of income. As if that’s not problematic enough, let’s add damage caused by rioters and looters.

3. Loss Determination a. The amount of Business Income loss will be determined based on: (1) The Net Income of the business before the direct physical loss or damage occurred; (2) The likely Net Income of the business if no physical loss or damage had occurred, but not including any Net Income that would likely have been earned as a result of an increase in the volume of business due to favorable business conditions caused by the impact of the Covered Cause of Loss on customers or on other businesses; (3) The operating expenses, including payroll expenses, necessary to resume “operations” with the same quality of service that existed just before the direct physical loss or damage; and (4) Other relevant sources of information, including: (a) Your financial records and accounting procedures; (b) Bills, invoices and other vouchers; and (c) Deeds, liens or contracts.

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How will the required shutdown affect loss settlement?

As per policy wording, the loss is adjusted based on “The likely net income” had no loss occurred. The “likely net income” during the government decreed shut down is zero. Because the “likely net income” is zero during the government-forced shutdown, the insured did not suffer and is thus not due any business income payment. The unrealized revenue results from an excluded cause of loss. The proximate cause of the lost revenue is the government shutdown not the damage caused by the rioters.

Efficient proximate cause is the basis of business income claim payments. If the efficient proximate cause of lost revenue is a covered cause of loss, the lost revenue is covered. If the efficient proximate cause is an excluded cause of loss, there is no coverage for the lost revenue. If an excluded cause and a covered loss “cross over,” the excluded cause takes precedence. Concurrent causation wording in the special cause of loss form excludes loss for acts or decisions of a governmental body. There is no coverage during the governmental shutdown period.

But there is a “however.” However, if the period required to repair the damage caused by the rioters extends beyond the time of the government-mandated shutdown, the loss of revenue during the additional time period IS covered by the business income policy.

> Chris Boggs IIABA Executive Director of Risk Management and Education

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CONTINUING

EDUCATION IIAW ONLINE EDUCATION & CE CLASSES 2021 DATE

TIME

COURSE

FEBRUARY 01 02 03 04 05 09 12 15 16 17 18 19 22 23

9AM-11AM Coverage Disputes Between Thompson & Briggs, You Be the Judge 8AM-10M Builders Risk and Contractors Equipment 12PM-2PM Personal Lines Issues That Keep You Up at Night 9AM-11AM E&O - Commercial Property Coverage Gaps & How to Fill Them 9AM-12PM E&O - Roadmap to Homeowners Insurance 9AM-11AM Embracing Directors & Officers Liability Insurance 9AM-12PM Commercial Lines Claims That Cause Problems 9AM-12PM E&O - Roadmap to Homeowners Insurance 12PM-2PM The Guy in the Bar Returns 10AM-12PM Business Auto Claims That Cause Problems 9AM-11AM Contracts Agents Should Read 9AM-12PM E&O - Commercial Property Coverages Gaps & How to Fill Them 12PM-3PM Agency Management Based E&O & Ethics 8AM-9AM Setting Business Income Limits: It’s Easier Than You Think!

MARCH 01 02 03 04 09 12 15 16 17 18 19 23 29

11AM-1PM Insight on Modern Day Cyber Exposures & Risk Management 12PM-2PM Builders Risk and Contractors Equipment 12PM-2PM Personal Lines Issues Keeping You Up at Night 12PM-2PM Those Kids and Their Cars 9AM-11AM Embracing Directors & Officers Liability Insurance 9AM-12PM Commercial Lines Claims That Cause Problems 9AM-12PM E&O - Roadmap to Homeowners Insurance 12PM-2PM The Guy in the Bar Returns 10AM-12PM Business Auto Claims That Cause Problems 8AM-11AM Ethics in the Insurance Industry 9AM-12PM E&O - Commercial Property Coverage Gaps & How to Fill Them 8AM-9AM Setting Business Income Limits: It’s Easier Than You Think!

12PM-3PM Agency Management Based E&O and Ethics

For more information and to register for these classes, visit iiaw.com/education.

QUESTIONS? CONTACT IIAW AT 608-256-4429 OR AT DIANA@IIAW.COM

Minnesota, Nebraska, South Dakota, and Wisconsin. Learn more at imtins.com​.

News Members in the

IMT INSURANCE CELEBRATES #GIVINGTUESDAY AND PLEDGES $20,000 TO COMMUNITY ORGANIZATIONS

West Des Moines, IA (12/1/20) IMT Insurance was honored to participate in #GivingTuesday on December 1, 2020! #GivingTuesday is a global day of giving that harnesses the collective power of a unique blend of partners – charities, families, businesses, and individuals – to encourage philanthropy and to celebrate generosity worldwide. #GivingTuesday is held annually on the Tuesday after Thanksgiving.

IMT strives to support local communities, throughout our six-state writing territory, in an impactful way. On Tuesday, December 1, 2020, one $2,500 donation was pledged every hour from 9 AM – 4 PM, for a total of $20,000! Five of the organizations were selected from IMT’s 2020 Community Contest winners and the final three were selected from this year’s IMT Month of Giving recipients.

The following organizations each received $2,500 as part of IMT’s #GivingTuesday: Trinity Lutheran Church – Viking Vittles (North Branch, MN), Food Bank of the Heartland (Omaha, NE), Moravia Memorial Avenue of Flags (Moravia, IA), Harvest of Hope Food Pantry (Hillsboro, IL), Irwin Fire Department (Irwin, IA), Boys & Girls Club of Freeport & Stephenson Co. (Freeport, IL), Hunger Task Force of La Crosse (West Salem, WI), Bethel House (Whitewater, WI).

We were pleased to have a number of local IMT Agencies join us in presenting the eight organization donations on #GivingTuesday. We extend a special thank you to the following IMT Agencies: Hermann Insurance (North Branch, MN), The Harry Koch Co. (Omaha, NE), Power Insurance Agency (Moravia, IA), Bruce Webb Insurance (Farmersville, IL), West Irwin Agency (Irwin, IA), Dimond Bros Insurance (Freeport, IL), West Salem Insurance (West Salem, WI), and Banco Insurance Agency – Banco, LLC (Whitewater, WI). IMT is built on deep roots and relationships in our communities, and we truly value our partnership with each of them.

For more information on IMT’s #GivingTuesday initiative, please visit our Facebook page or contact Kelly Field, IMT Corporate Relations Specialist. For additional #GivingTuesday information, please visit www.givingtuesday.org.

ABOUT IMT INSURANCE​ IMT Insurance offers personal and commercial insurance products for your auto, home, and business through Independent Agency locations throughout a six-state territory – Iowa, Illinois, 28 | FEBRUARY 2021 |

wisconsin INDEPENDENT AGENT

DAVID INSURANCE AGENCY JOINS VIZANCE Racine, WI (12/14/20) Vizance, a leading independent insurance agency serving Wisconsin and surrounding states, announced today that Racine-based David Insurance Agency, Inc. will join Vizance effective January 1, 2021.

Founded in 1950, David Insurance has focused on providing businesses and individuals with exceptional service and expert advice for 70 years. The David Insurance team of associates will continue to operate under the David name from their offices in Racine, Kenosha, Milwaukee, and Sister Bay. Agency Principals Chris Antonneau, Jon Antonneau, Dan Antonneau, and Steve Chomeau will continue with the organization as partners in the new entity.

“By partnering with Vizance, we are joining an agency with the foundation of a firm built to last and committed to being leaders in associate loyalty and client relationships. As our team evaluated a partnership, it was extremely important that a partner not only brought additional resources for clients but was also singularly focused on and committed to the insurance business with an operating model of regional leadership. We are very excited that we are joining a firm incredibly well positioned for the future,” said David Insurance President Chris Antonneau.

Vizance, founded in 1978 and headquartered in Hartland, Wisconsin, is a privately-held independent agency offering a broad portfolio of insurance, risk management, employee benefits, and financial service solutions for businesses and individuals. The agency has been named as one of the area’s “Top Workplaces,” “Fastest Growing Firms,” and “Best Places to Work” by local media sources. Vizance has joined with several other Wisconsin-based independent agencies, including Valley Insurance Associates in 2017, Sparks Insurance in 2018, the Diedrich Agency in 2019, Hornick Insurance Services in 2020, and Risk Management, LLC in 2020.

“We have known and admired the team at David Insurance for many years, and we are excited about the prospects for our combined agency. The talented associates at David bring the passion and expertise in Risk Management, Personal Insurance, and Employee Benefits that all of our clients enjoy,” said Vizance President Jeff Cardenas.

ABOUT VIZANCE Vizance is a privately-held company that provides risk management, business insurance, employee benefits, personal insurance, and financial service solutions to companies, families and individuals throughout the Midwest. Vizance has locations in Appleton, Berlin, Fond du Lac, Green Bay, Kenosha, Milwaukee, New Berlin, Oshkosh and Ripon, in addition to its headquarters located at 1320 Walnut Ridge Drive, Hartland, Wisconsin.

For more information, visit vizance.com ABOUT DAVID INSURANCE AGENCY, INC. David Insurance Agency, Inc. offers business insurance, personal insurance, and health insurance to clients in Wisconsin and Northern Illinois. The agency is headquartered at 1300 S. Green Bay Road, Racine, Wisconsin and has additional locations in Kenosha, Milwaukee, and Sister Bay. For more information, visit davidinsurance.com

ACUITY EMPLOYEES DISTRIBUTE $500,000 IN SUPPORT TO CHARITABLE ORGANIZATIONS

Sheboygan, WI (12/17/20) At a December 2020 Virtual Town Hall meeting, Acuity employees determined the distribution of a half-million dollars among six different organizations. Those organizations included the Conquer Cancer Foundation, Fresh Meals on Wheels, Mental Health America, Safe Harbor, The Salvation Army, and Sharon S. Richardson Community Hospice.

Fresh Meals on Wheels received the largest allocation of over $109,000. The other five groups each received donations ranging from more than $59,000 to nearly $96,000.

Fresh Meals on Wheels CEO Kelly Anderson explained how Acuity’s donation helps support the organization’s mission of providing nutritious meals and fresh food to the homebound, disabled, and elderly.

“Our clients have ranged from age 6 to 106,” Anderson said. “The majority we serve are indeed elderly and low income, with an average income of just $801 that has to cover all their expenses, including heat, prescription drugs, and food. They don’t have credit cards or the ability to order food online, so receiving a hot meal and enough flash frozen meals to last a week is tremendously important to them.”

“Being kind and supporting our community is always a priority for Acuity, but it has never been more important than in 2020 when the pandemic has hit charitable organizations with a higher need for their services at the same time they face even greater budget constraints than normal,” said Ben Salzmann, Acuity President and CEO. “We are incredibly grateful for the opportunity to help support charitable organizations now and throughout every year.”

This is the eighth consecutive year that Acuity employees have directed a special year-end charitable contribution, which adds to the company’s longstanding tradition of philanthropy.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 29 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,400 people.

SECURA INSURANCE RESTRUCTURING TO MUTUAL HOLDING COMPANY

Neenah, WI (1/6/21) SECURA Insurance, A Mutual Company policyholders have voted to approve the company’s plan to restructure to a Mutual Holding Company. The conversion to a Mutual Holding Company, previously approved by SECURA’s Board of Directors and the Wisconsin Office of the Commissioner of Insurance (OCI), became effective Jan. 1, 2021.

On the effective date of the restructuring, all policyholders of SECURA, which is now known as “SECURA Insurance Company,” acquired mutual membership and voting rights in SECURA Insurance Mutual Holding Company. Policyholders of SECURA’s affiliate, SECURA Supreme Insurance Company, will also acquire the same membership and voting rights as policies are issued or renewed after the effective date.

“SECURA has been a mutual company, owned by our policyholders since 1900,” said Dave Gross, SECURA President & CEO. “The restructure to a Mutual Holding Company will ensure mutuality for all of our policyholders and will help us respond to the continually changing needs of the insurance marketplace.”

Transitioning to a Mutual Holding Company does not directly impact the company’s Board of Directors, independent agents, associates, or SECURA’s insurance operations, including policy coverages and rates.

ABOUT SECURA INSURANCE SECURA Insurance is headquartered in Neenah, Wis. More than 550 independent insurance agencies in 12 states represent the company, which provides a broad range of competitive commercial, personal, farm, nonprofit, and special events products. It is known for providing exceptional service to its agents and policyholders since 1900, and is rated A (Excellent) by A.M. Best for its excellent ability to meet policyholder obligations.

The carrier also is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a five-year period, and it is certified Great Place to Work. Visit secura.net to learn more.

wisconsin INDEPENDENT AGENT| FEBRUARY

2021 | 29

COMMENTARY FROM COUNSEL

COVID-19 VACCINE UPDATES For the October 2020 issue, I penned a column titled “Covid-19 Vaccine Will Force Employers To Make Tough Decisions.” Several important events and decisions in the months since merit further discussion and an update. It is critical to stay apprised of these updates, not only to accurately advise your clients, but also to plan for how the vaccine roll-out will impact your own agencies.

EEOC Guidance and Other Considerations On December 16, 2020, the Equal Employment Opportunities Commission (EEOC) issued updated guidance on an employer’s ability to mandate coronavirus vaccinations for employees. The EEOC advised that employers may require employees to be vaccinated.

However, employers that mandate the vaccine must allow for several exemptions.

To begin, employers are required to provide exemptions for those with disabilities that prevent them from safely getting the COVID-19 vaccine. However, this exemption is subject to caveats. Namely, employers can deny a disability exemption when there is no available alternative to avoid the “direct threat” posed by an unvaccinated employee in the workplace. That said, with many employers having already waded through the use of protective equipment, masks, and social distancing, successfully establishing the existence of a “direct threat” will be a heavy burden for even the most high-risk workplaces.

Next, employees with sincerely held religious beliefs that conflict with vaccinations may also be entitled to an exemption from a mandatory vaccination policy.

Notably, having an “anti-vax” belief alone is not sufficient – the belief must be grounded in religion to qualify for protection. That said, EEOC guidance explains that because the definition of religion is broad and protects beliefs, practices and observances with which the employer may be unfamiliar, the employer should ordinarily assume that an employee’s request for religious accommodation is based on a sincerely held religious belief. If an employer knows that a sincerely held religious belief, practice, or observance prevents the employee from receiving a vaccination, it must provide a reasonable accommodation, unless doing so would pose an “undue hardship” on the employer.

Finally, a policy of mandatory vaccination raises important considerations regarding Americans with Disabilities Act (ADA) compliance. Under the ADA, an employer’s ability to conduct medical examinations and request medical information from employees is restricted.

The EEOC’s guidance clarifies that the COVID-19 vaccination is not a medical examination. Therefore, employers may request that employees provide proof of vaccination. However, because pre-vaccination medical screening questions may elicit medical information about a disability, an employer who asks these questions must meet the standard of being “job-related and consistent with business necessity.” To meet this standard, the employer must reasonably believe that transmission of COVID-19 is a threat to the safety of the employee or others with whom the employee has contact.

Now What?

Beyond updated EEOC guidance, two other happenings since my previous article on this topic are worth noting.

The first is that the vaccine is here. To be more accurate, the vaccines are here. With the Pfizer and Moderna shots already approved, and several others on the verge of approval, the day in which a member of the general public can be vaccinated is rapidly approaching. Second, Joe Biden was elected and sworn in as the 46th President of the United States. President Biden campaigned on increasing vaccination capacity and speeding up the roll-out. In the first days of his administration, he has already taken steps to advance those goals, including the invocation of the Defense Production Act. These actions may shorten the amount of time between now and general vaccine availability. Both events make it even more critical that your agencies prepare now for how they will respond when the shot becomes widely available.

This preparation should not be limited to how you will treat your own staff. Your clients are likely already contacting you to ask how this may impact insurance coverage. As a result, stay in close contact with legal counsel to continue to understand the legal risks and benefits associated with workplace vaccination. Federal guidance on this topic has shifted in the past few months and may shift again. Legal counsel can help your agencies navigate these trying times, helping to both protect you and your staff and ensure you give your clients the best advice possible.

>J osh Johanningmeier IIAW General Counsel

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