Wisconsin Independent Agent | July 2023 Magazine

CONTENTS

COVER STORY:

The IIAW: Guiding the Independent Agent

The IIAW is an unrelenting advocate for independent insurance agents and brokers in Wisconsin and across the nation with our counterpart, the Big 'I'. The IIAW provides tools, knowledge and resources to effectively build and maintain a successful agency. Join the IIAW or renew your membership today.

INSURANCE BARTENDER......................................................12-13

When You Need Guidance, Turn to the IIAW

RISKY BUSINESS..........................................................................16

Shiny Object Syndrome: A Diagnosis and Treatment Plan

PERSONAL LINES.....................................................................18

3 Ways a Personal Articles Floater Can Protect Your Homeowners Clients

TECHNOLOGY............................................................................20

Explore and Embrace Technology With Catalyit, A Free IIAW Member Benefit

NEW TO THE TEAM.................................................................22

Welcome Freeman Zhang, IIAW Data Analytics Intern

AGENCY OPERATIONS..........................................................25

Putting Skills First COMMERCIAL LINES.............................................................28-29

6 Claim Trends Summer Camps are Facing MEMBERS IN THE NEWS.......................................................30

COMMENTARY FROM COUNSEL.......................................32-33

The War Against Non-Compete Agreements FOOD FOR THOUGHT.............................................................35

ADVERTISERS INDEX

wisconsin INDEPENDENT AGENT

INDEPENDENT INSURANCE AGENTS OF WISCONSIN

725 John Nolen Drive

Madison, Wisconsin 53713

Phone: (608) 256-4429

Fax: (608) 256-0170 www.iiaw.com

2022-2023 EXECUTIVE COMMITTEE

President:

Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield

President-Elect:

Michael Ansay | Ansay & Associates, Port Washington

Secretary-Treasurer:

Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine

Chairman of the Board:

Marc Petersen | American Advantage - Petersen Group, New Berlin

State National Director: Steve Leitch | Leitch Insurance, River Falls

2022-2023 BOARD OF DIRECTORS

Janel Bazan | Avid Risk Solutions/Assured Partners, Middleton

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

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

Kash Motlani | Ansay & Associates, Inc., Port Washington

Dan Lau | Robertson Ryan & Associates, Milwaukee

Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa

Brad Reitzner | M3 Insurance Solutions, Madison

IIAW Staff

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

Mallory Cornell | Vice President 608.210.2975 • mallory@iiaw.com

Kim Kramp | Accounting Supervisor 608.210.2976 • kim@iiaw.com

Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com

Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com

Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com

Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com

Andrea Michelz | Education & Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com

Diana Banaszynski | Events Coordinator and HR Business Partner 608.256.4429 • diana@iiaw.com

Ali Smeester | Accounting Specialist 608.256.4429 • ali@iiaw.com

Freeman Zhang | Data Analytics Intern 608.256.4429 • freeman@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. © 2023 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.

The insurance business is a people business

UFG Insurance is a trusted carrier with an agent-focused mission: create simple solutions for doing business.

It’s a mission built upon a promise of opportunity — a promise taken to heart.

“We see the person behind the business,” says industry veteran Mark Verhagen, UFG’s senior marketing representative for Wisconsin. “We listen to needs and do our best to help address them. Taking the time to truly listen is extremely important to all of us at UFG, no matter our department. Sometimes, in complex situations especially, that human connection is hard to beat.”

UFG was founded in 1946 upon a belief that the insurance business is a people business. That humanistic ideal remains firmly at the company’s core.

“Our people and their service set UFG apart,” Mark continues. “So do our products and coverage-broadening endorsements, like our pollutant redefined

option for contractors who need to consider carbon monoxide in a general liability policy. And our unique partnerships with associations that hold the possibility of policyholder dividends, like the Alliance of Automotive Service Providers and Wisconsin’s chapter of Land Improvement Contractors of America. It’s the people plus the products working together that make UFG a trusted choice.”

Jeffrey Miller, UFG’s small business territory manager for Wisconsin, agrees.

“Our people are passionate about the success of our agents,” Jeffrey explains. “For example, when we heard agents say they needed fast online quoting for small business and

a clear understanding of that appetite, we built an enhanced online quoting platform — Pro-Quote — based on

that feedback. We listened and, more important, we responded to create a better experience.”

Taking the time to truly listen is extremely important to all of us at UFG, no matter our department.

— Mark Verhagen

UFG Senior Marketing Representative

Pro-Quote, UFG’s intuitive online quoting platform at ufgagent.com, launched in Wisconsin in 2021 for qualifying BOP-Pro businessowners policies and supporting lines of commercial auto, cyber, umbrella and workers compensation. Along with its clear appetite guide and smart-search features, agents are calling Pro-Quote speedy, straightforward and simple to use.

“We’re continually improving Pro-Quote based on agent advice,” states Jeffrey. “One of our newest enhancements is a smart feature that recommends select coverages during the quoting process. When we say we’re on a mission to create simple solutions we mean it.”

UFG also prides itself on knowledgeable teams who bring additional service benefits. Claims, risk control, premium audit and service center are handled inhouse at UFG, preserving the culture of service by rarely tapping outside firms.

“Couple our skilled teams with our strong, stable market for businesses big and small, pair that with rewarding incentives and competitive commissions,” Mark adds, “and it adds up to an exciting time to think UFG when you’re thinking about placing business.”

Think UFG: delivering on promises for 75 years and counting

■ Successful multibillion-dollar-asset insurance company.

■ Headquartered in Cedar Rapids, Iowa.

■ Branch offices in California, Colorado, New Jersey and Texas.

■ Publicly traded on the Nasdaq for more than 35 years under UFCS.

■ Business mix includes commercial insurance, excess and surplus and surety bonds.

■ Property and casualty insurer in 37 states, plus D.C.

■ Rated A (Excellent) by AM Best for 28 consecutive years, affirmed in December 2022.

some of the UFG team serving Wisconsin

Ready to think UFG?

Scan to explore the industries we serve.

Kate Galligan AVP and Branch Manager

Mark Verhagen Senior Marketing Representative

Ryan Wilkerson Production Underwriter Gunner Tranel Surety Underwriter

Tyler Probasco AVP and Underwriting Manager

Jeffrey Miller Small BusinessTerritory Manager

Samantha Knudson Small Business Underwriter Nick Deering Risk Control Manager

MEMBERSHIP BENEFITS

IIAW members get access to our extensive list of membership benefits:

IIAW RESOURCES

Agency Solutions - Free Evaluations

Operational Reviews

Workflow Mapping

Technology Evaluation

Financial Evaluation

Strategic Evaluation

Communications

WI Independent Agent Magazine (Monthly Publication)

Big I Buzz (Weekly E-Newsletter)

Interest Area Newsletters (Monthly)

- Personal Lines, Commercial Lines, Employee Benefits and Industry Relations & Operations

IIAW Publications (Industry Research, Marketing Guides, Quarterly, Compensation Report & Annual Marketshare Reports, etc.)

IIABA RESOURCES

ACORD Forms

Agency Universe Study

ACT - Agents Council for Technology

Ask an Expert Best Practices Study

Big “I” Business Resources

Big “I” Hires

Big “I” Markets (Market Access)

PRODUCTS

Agents E&O Insurance

Association Health Plan

Carrier Contact Reviews

DAIS - Internet of Insurance

Data Breach Insurance

Eagle Agency

Employment Practices Liability Insurance

Education

Prelicensing

Online & Classroom CE

Employee Training with

MyAgencyCampus

Emerging Leaders

Professional Development

Networking Events

Opportunity to Attend National Leadership Conferences

Events

Annual Convention (InsurCon)

Networking Events

Government Affairs

Political Advocacy at the State & National Level

News & Updates

Legal Briefs and Guidance

Free Quarterly Consultation

Services

Agency Accounting Services

Agency Operational Consulting

Agency Technology Consulting

HR Consulting

Virtual Operational Improvement Reviews

Task Forces & Councils

3 Virtual Meetings Per Year

Free CE Credits

Networking Opportunities

Technology

Cybersecurity Compliance Bundle

Catalyit (Full Access Subscription)

WAHVE - Talent Solution

Diversity Task Force

E&O Risk Management Website

Government Affairs

Guaranteed Income Program

Independent Agent Magazine

IndependentAgent.com

InsurPac

Large Agents & Brokers Council

Legal Advocacy & Services

Marketing & Branding

Media Relations

Trusted Choice Disaster Relief Fund

Trusted Choice®

Virtual University

Young Agents

Employee Benefits Insurance

ePayPolicy

Flood Insurance Program

Guide to Agency Perpetuation

Home Business Insurance

Independent Market Solutions (IMS) InsurBanc

InVEST

Retirement Plans

Rough Notes Advantage Plus (VRC)

TrustedChoice.com

Umbrella Insurance

IIAW: MAPPING OUT YOUR AGENCY SUCCESS

Agency Operational Evaluation

Our evaluation leads you to the exact resources you’ll need to achieve your business goals. Scan the QR code in the bottom corner or visit this link to take the evaluation:

https://su.vc/iiaw

Education & Events

The IIAW is your leader in insurance CE, prelicensing and employee training. Join us and other agents at our annual convention and other events throughout the year.

Insurance for Your Agency

An IIAW membership entitles you to exclusive products and consultative services. We offer E&O, Data breach, EPLI and Association Health Plan for Wisconsin independent insurance agents.

A Voice in the Capitol

The IIAW and InsurPac, our state and national Political Action Committees, ensure our industry is present and heard in Wisconsin and Washington D.C.

Agency Support Services

That’s Not All!

An IIAW membership maps out benefits to navigate your agency toward success. Members receive access to Trusted Choice for a full suite of tools and resources for your agency to use in its own marketing. Plus, members receive our publications and marketing guides through our knowledge center

We offer technology, operational, accounting and human resources support to meet the needs of your agency.

AGENCY HIRING

The IIAW is here to help you with your hiring! Our members have access to these hiring solutions:

FULL-SERVICE:

• This option is tailored to the needs of an agency who doesn’t have the time to find quality candidates to interview. Let your IIAW HR Business Partner handle the process for you.

• Save time and resources by getting the right person hired faster

• We will manage the application review process and screening of candidates giving you an improved experience providing only qualified candidates for you to interview

• Attract top agency talent through a customized CareerPlug page set up

• Compelling job posting tailor-made for your agency

• Custom applicant scorecards allowing you to measure candidates quickly

• Unlimited job posts on all major job boards (Indeed, LinkedIn, Zip Recruiter, etc.)

• Customized job links for effective hiring (Facebook, other social media sites)

• Reduce interview prep time with Best Practices resources and templates

• Personality assessments designed for your open position

• Customized employment offer letter

• Individual reference checks on qualified candidates

• Unlimited assistance

DIY WITH HELP:

This option offers free or paid CareerPlug options to choose from. The agency is in control of the process and has additional resources.

• Support from the HR Business Partner

• Customized dashboard set up Job description templates with customization available

• CareerPlug dashboard to manage applicants

DIY:

Utilize the resources available to find your next new hire on your own.

• CareerPlug dashboard to manage applicants

• Job description templates available within Careerplug

• Option to upgrade to CareerPlug Pro for one year

How Does InsurPac Work?

Agents, brokers and carrier partners protect their business by contributing to InsurPac.

$$ is distributed to U.S. Representatives, Senators and candidates seeking federal office who are supportive of the IA system and small business in general.

PROTECT. PROMOTE. PERPETUATE

Those relationships help open doors to advocate for or against legislation that directly impacts the IA system.

Recent Victories

InsurPac allows our federal lobbyists to consistently attend fundraising events on Capitol Hill. At each of these events they develop relationships with members of Congress and their aids.

The Big “I” successfully defended important tax policies from attempts by the current Administration and Congresstooverturnthem.ThesetaxpoliciesincludemaintainingthecurrenttaxratesforS-corpsandCcorps,keepingthe20%smallbusinesstaxdeductionintact,andpreventinganincreaseinthecapital gainstax.

The Big “I” was one of the only small business groups to successfully secure an exemption, legislatively andregulatorily,foritsmembersfromreportingbeneficialownershiptotheTreasuryDepartment’s FinancialCrimesEnforcementNetwork(FinCEN).

The Big “I” has successfully advocated for the extension of the National Flood Insurance Program (NFIP) onnumerousoccasionsoverthelastseveralyears.

Strength In Numbers

InsurPac speaks as a collective voice for thousands of donors whose contributions directly to federal campaigns might otherwise go unnoticed.

Formed in 1974, InsurPac, the Big I’s federal political action committee(PAC)isoneofthelargestsmallbusinessPACs inthecountryandthemostrecognizedPACinthe insuranceindustry. How

1.

Can I Contribute?

Over 3,445 independent agents and brokers contributed a total of $1,269,794.59 in 2022.

JOIN THE IIAW’S

EMERGING LEADERS

Who We Are

The IIAW Emerging Leaders is a statewide network of insurance professionals striving for professional growth through education, leadership development, legislative involvement and insurance career perpetuation. The group hosts a variety of in-person and virtual events throughout the year to allow members to learn, network and grow professionally.

The IIAW Emerging Leaders is committed to offering best-in-class professional development and networking opportunities for insurance professionals across the state.

Who Should Join

What We Do

We create experiences to help members build their careers and integrate best practices.

We develop meaningful relationships between agents, carrier representatives and association members.

We provide unique professional development opportunities (industry simulations, personal development, speakers, webinars, etc.).

We engage future industry decision-makers in events and volunteer roles. Join

Young insurance professionals who are looking to enhance their career and build relationships within the industry.

To join scan the QR code, visit iiaw.com/emergingleadersgroup or email evan@iiaw.com.

WHEN YOU NEED GUIDANCE, TURN TO THE IIAW

If you would indulge me, I plan to take you on a brief literary journey, where I tell you about the IIAW’s story. In our story, you are the hero. We are simply your guide!

Independent insurance agencies have been around for over a hundred years. Many of our members have storied histories dating back to the early twentieth century. Throughout the history of your agency, you have experienced highs and lows, opportunities and difficulties, but you have continued to press on and prevail. It’s also the reason the Independent Insurance Agents of Wisconsin (IIAW) was founded: To be there to advocate and defend your interests when you can’t be. Times change and so do the needs of your agency. As a result, the IIAW has changed with it, but instead of just advocating and defending, we have added “guide” to the list of verbs that can be used to describe our value proposition to our members, carriers and clients.

Consumer behavior and emerging purchasing channels, powered by technology, are driving you to change the way you have traditionally done business. This change in behavior may be driving your customers to ask for a better customer experience like the one Amazon delivers or perhaps your employees are asking for different tools to prospect, sell and service your customers differently. Technology creates amazing opportunities while at the same time giving us new headaches. For example, something as simple as using Zoom to meet with members of your team or clients virtually changes your internal workflows and can have unintended consequences. At the IIAW, we like to say that no matter the opportunity or challenge you face, make us your first call or email. In this zoom example, we can work with you to incorporate it into your existing workflows and help ensure your employees are trained on utilizing it, all its capabilities and understanding how it can be integrated with your existing proposals and agency management system.

WHY US? Because we have been where you are and have helped to guide other agencies to success.

The IIAW is not just another trade association, it’s your agency’s back office, resource, teacher or guide. This is your story, and we are here to guide you to become its hero.

Time and time again, our members are looking for an independent third party to help them create, assess, address or implement a plan in response to a challenge or opportunity they face, but they don’t know who to turn to. It’s a story we have heard over and over again. That’s why we have hired some of the best professionals we can find with a broad range of experience. In addition, we have cultivated relationships with other experienced insurance professionals from around the United States so that in those rare circumstances where we might not have the right people on staff, we can reach out to our network to better assist you.

The best analogy I can provide you to help illustrate our value proposition is this…

In the Star Wars movies, Yoda tells Luke to trust the Force and then trains Luke to wield its power. The IIAW is your Yoda, the Force is your agency, and you are Luke.

As in every good story and of course in life, we don’t typically act until the situation demands we do so. Do yourself and your agency a favor and proactively take action. Don’t wait until something comes up that demands you to act. Perhaps there is something you know that needs to be addressed or explored but have continuously put it off because it never reached the point where you had to do something. Get the most out of your membership. Reach out to us at the IIAW. Let us help guide you on your path to prosperity!

You have a team of dedicated and experienced professionals that stand ready to assist you to navigate the complexities of an evolving marketplace with technology changing customer behaviors and creating new competition.

What’s at stake should you not act? Your agency, legacy, its employees and, most importantly, your customers.

What the IIAW can offer you is peace of mind. We strive to be your guide to tranquility (so to speak). I once had an agent to refer to the IIAW as the safety and technology features in a car or vehicle. Their agency was the vehicle, their employees were the driver and their customers are the passengers. The vehicle has blind spot monitoring to help alert you to things you don’t see, a navigational system to help guide you to your destination, anti-lock brakes, seat belts and other safety features to help protect you should you be involved in an accident. Features you may not always use but are glad they are there when you need them, much like the Association. I appreciated this analogy as it spoke directly to the value proposition we have been trying to convey to our members and why being a member of the IIAW is so important.

The Association has a plethora of tools and resources available to our members, but more importantly we have some pretty amazing people who are dedicated to helping you successfully put those tools to work for your agency and its customers.

Simply put. Our story has a character - You! Who has a problem - changing customer behavior and the threat of new insurance purchasing channels. And meets a guide - the IIAW. Who gives them a plan - The IIAW will work with you to create a plant to guide you to solutions that address your challenges and allow you to take advantage of opportunities. And calls them to action - Renew your membership or join the IIAW. Find success and get peace of mind by working with the IIAW to create a plan of action that’s customized to your agency’s needs. That helps them avoid failure - Losing customers or employees. And ends in Success - A simple call or email to the IIAW can change your life and help you become the hero in your story to your agency, its employees and customers.

More importantly your membership will provide you with peace of mind that your most important asset, your agency, has a trusted partner you can turn to because in difficulty lies opportunity.

In the “Empire Strikes Back”, Luke is faced with the difficulty of resurrecting his X-Wing starfighter from the swamp. As he questions his ability to master his training, his guide, Yoda, says, “You must unlearn what you have learned”. Luke responds by saying, “Ok, I will give it a try”. Yoda enthusiastically shouts, “No! Try not! Do… or do not! There is no try!” The moral of the story… One should commit to an action rather than simply attempting it with half-hearted effort. It’s a reminder to take action and stay focused on your goals rather than just giving it a try and hoping for the best. Commit to doing whatever it takes to achieve your objectives and when you need some guidance, turn to the IIAW.

I hope you enjoyed the story of the IIAW, and if you’d like to create a story brand for your own agency, make sure you keep an eye out for our August magazine, as this is a two-part series. The first part of this series, this article, illustrated an example of the approach Donald Miller outlines in his book titled, “Building a StoryBrand” using his seven elements of great storytelling to grow a business. Next month’s article I’ll dissect those seven elements of great storytelling so you can put his techniques to work to help you clarify your agency’s message to resonate with your customers and to grow your agency.

> Matt Banaszynski, CEO, IIAW

Matt’s Mixology Floating Yoda Cocktail

Ingredients

• 2 ounces Kahlua

• 2 ounces vodka

• 1 ounce milk

• 1 scoop mint chocolate chip ice cream

Directions

1. Fill a glass to the brim with ice.

2. Pour in Kahlua and vodka of your choice, then give the drink a quick stir.

3. Pour milk on top (careful not to overflow!) Then, finish with a scoop of mint chocolate chip ice cream on top (balancing the ice cream on the ice). Serve immediately.

Recipe & Photo Courtesy of Homemade Hooplah

The Floating Yoda Cocktail is a Star Wars-inspired drink that pays homage to the iconic Jedi Master. This cocktail is a twist on the classic White Russian, made with Kahlua and milk, adding a scoop of mint ice cream on top making it look like Yoda in his Jedi robes.

READY TO TAKE THE NEXT STEP?

WE CAN HELP.

No matter where you are in your insurance journey, the Big “I” is ready to help. Expand your knowledge, build your book of business, maximize your marketing or cultivate an agency team that thrives in any market. Independent agencies at more than 25,000 locations lean on the Big “I.”

How can we help you?

IT’S TIME TO TAKE THE NEXT STEP, THE BIG “I” HAS YOUR BACK

WHAT WE DO

Kim Kramp Agency Supervisor kim@iiaw.com

“Kim was in my office very quickly and she had all of the expertise to help on the spot. Kim saved us - there is no other way to put it. She takes on many tasks and gets it all done. Her knowledge of our system and accounting in general was exemplary. I cannot recommend IIAW’s bookkeeping services and Kim Kramp more highly.

- Bill Clark, Klinner Insurance

Smeester

Accounting Specialist

SHINY OBJECT SYNDROME: A DIAGNOSIS AND TREATMENT PLAN

While working with agencies, our team answers many questions on trends, technologies, and start-ups. Here’s the thing. In my opinion, almost every new trend or technology out there could be good, but it could also just be a “shiny object” that serves no clear purpose in your organization. “Shiny Object Syndrome” (SOS) is a common problem for many people. It’s the tendency to get distracted by new and exciting ideas or opportunities and lose focus on your current goals and projects. Here are some tips on how to avoid SOS:

Set clear goals: Define your short-term and long-term goals and write them down. Having a clear vision of what you want to achieve can help you stay focused and avoid distractions.

Prioritize your tasks: Create a to-do list and prioritize your tasks based on their importance and urgency. Focus on completing the most critical tasks first and then move on to less important ones. Stick to a routine: Establish a routine that works for you and stick to it. Having a set schedule for your workday can help you stay on track and avoid distractions.

Evaluate new opportunities carefully: When you come across a new opportunity, evaluate it carefully before deciding whether to pursue it. Ask yourself if it aligns with your goals and is worth the time and resources required.

Avoid multitasking: Multitasking can be a productivity killer. Instead of trying to do multiple things at once, focus on one task at a time and complete it before moving on to the next.

Practice mindfulness: Practicing mindfulness can help you stay present and focused on the task. Take a few minutes to meditate or practice deep breathing

exercises throughout the day.

Remember, staying focused and avoiding SOS takes practice and discipline. By implementing these tips, you can develop the habits you need to stay on track and achieve your goals.

New technology solutions can sometimes be shiny objects, but not always. It depends on how you approach them and your operational needs. If you are constantly chasing after the latest technology without a clear plan or purpose, then you might be falling prey to SOS. You might be distracted by the excitement of new technology and forget about your original goals.

However, if you approach new technology solutions with a strategic mindset, they can be valuable tools to help you achieve your goals. It's essential to assess each new technology solution carefully and determine if it will help you improve your workflows or achieve your objectives.

Ultimately, the key is to use technology as a means to an end rather than an end in itself. You should stay focused on your goals and use technology as a tool to help you get there, rather than chasing after every new shiny object that comes your way.

If you’re looking for a resource to help you navigate technology solutions or determine if they are essential to your agency, always reach out to your team at the IIAW first before falling prey to SOS.

> Mallory Cornell, Vice President, IIAW

3 WAYS A PERSONAL ARTICLES FLOATER CAN PROTECT YOUR HOMEOWNERS CLIENTS

Most homeowners insurance policies will cover personal items such as appliances, furniture and clothing in the event of theft or loss, but the standard homeowners policy offers only limited coverage for highly valuable items. This is where supplementing a standard homeowners policy with a personal article floater or endorsement policy can provide essential coverage.

“A regular homeowners policy limits how much it will pay for certain classes of valuable items, such as jewelry, artwork and furs," says Paul Gallagher, senior vice president, NFP. Agents need to explain that “if you don't schedule your valuable pieces, you're not going to have enough money to replace those items. A personal floater policy or endorsement allows you to bypass that sublimit," Gallagher says.

By partnering with carriers that specialize in the high networth niche market, independent agents can shine. “This is a perfect example of a place where an independent agent adds a ton of value because they're working with multiple carriers," says Mike Grove, senior vice president, head of global retail markets U.S. product state management, Liberty Mutual. “If you've got a client who has millions of dollars of jewelry, there are companies that focus on that."

Here are three ways a personal floater can provide coverage for your clients' high-value items, unique or hard-to-find items, or items that change physical locations frequently:

1) Insures individual items to a specified value. “The personal article floater gives you an opportunity to specifically identify what things you're going to cover and allows you to set the value on a piece of property," says Bill Martin, president and CEO, Plymouth Rock Home Assurance. “You can imagine two arguments with your insurer once a claim happens: whether a piece of jewelry ever existed, or what the value of that jewelry is. A personal article floater completely eliminates those arguments."

However, before purchasing a floater, items must be professionally appraised. “You have to go through this extra process to be sure you're not overvaluing your property, creating a fraud risk," Martin says. “It's a lot of upfront work for a lot of savings later."

“Frankly, if the value of the property is more than what would normally be covered under the insurance policy, the endorsement will cost you a little more, but this cost is relatively tiny compared to the loss of the article itself," Martin says.

2) Does not require a deductible. Floater policies eliminate the deductible, which means the client has “first-dollar coverage" and has loss settlement options, such as replacement cost coverage or agreed value coverage.

In addition, “a lot of carriers treat claims on scheduled property differently from, for example, a theft or a fire claim," Grove says. “Your rate won't be penalized as much for a scheduled jewelry loss, and this is a benefit and difference than if you file a claim that's not scheduled."

3) Offers a broader list of covered perils. Personal article floater policies also offer a much broader list of covered perils. In general, they “provide broader coverage than you would have under your homeowners policy," Gallagher says. “An example of broader coverage includes damage caused by flood, which is not covered under a homeowners policy but covered by most floaters. However, if you don't schedule it, it's not covered for flood."

To sell this type of coverage, agents must ask their clients if they own any valuable items that are worth more or would account for a majority of the personal property limits in advance of issuing any policy documents. “While the customer might not come back right away and give you an answer, because they just need the insurance to move on, agents should ask it again," says Martin. “That the customer might think of that $7,000 TV they bought and realize, 'I should probably list that.'"

Ultimately, the customers who have personal floater coverage know exactly why they have purchased the coverage. “For agents, it's an opportunity not only to make more money but also to create more comfort for people," Martin says.

This article was originally featured on iamagazine.com in June 2023.

> Olivia Overman, IA Content Editor

In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.

Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and ser vices of national carriers.

Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial-lines agencies in Wisconsin.

Contact: Vicki Lentz 262-432-3420

vlentz@pnat.com

Contact: Clayton Zogata 715-383-5454

czogata@pnat.com

• Strong financial performance and A.M. Best Financial Strength Rating of A-

• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably

• Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans

• State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs

• Local, experienced underwriting, claims and management staff

EXPLORE AND EMBRACE TECHNOLOGY WITH CATALYIT, A FREE IIAW MEMBER BENEFIT

Did you know that with your IIAW agency membership, agencies receive a complimentary Full-Access Subscription to Catalyit? Catalyit offers a variety of tools to take advantage of including an in-depth tech assessment, State of the Tech Report, access to consulting, technology-related training courses and over 100 guides and reviews for technology options at your agency. Let’s take a deeper look at what agency members have access to:

• Tools: An in-depth tech assessment with a custom roadmap report for your agency awaits. You can get a free consult with Catalyit consultant and receive guidance on the best approach for your tech stack.

• Guides & Reviews: Selection guides for each area of your tech with side-by-side comparison charts of solution provider features, and reviews. Find different options for agency management systems, marketing tools, phone systems, quoting platforms, sales management and so much more!

• Knowledge Hub: Watch the Catalyit Live Sessions, review the videos in the OnDemand Vault, read through the TechTips Articles or learn with Catalyit’s Courses!

• Consulting: One-on-one expert support to help you implement solutions.

• TechSelector: Catalyit is in the process of building a TechSelector for each type of technology category. The TechSelector is a tool that asks you to select what features/ capabilities you are looking for in a tool, such as an agency management system or phone system. The TechSelector provides you with a report giving you a list of options ranked by which platforms match your preferences.

Catalyit’s Tech Assessment is a great way to see where you fall within Catalyit’s Success Journey. Add your team members, search through the Guides & Reviews, attend Catalyit Live sessions and take advantage of all the platform has to offer. Join over 1,000 agencies nationwide in trusting Catalyit for their tech guidance. This IIAW member benefit (a $1,500 value) is available to our agency members for free. Visit www.iiaw.com/catalyit to access your complimentary Catalyit subscription today.

> Evan Leitch, Agency Solutions Advisor, IIAW

Catalyit's Success Journey

IIAW Members Get Exclusive Access

The IIAW is a proud co-founder and investor of Catalyit.

All the agency tech guidance you need...in one place.

The number of ways you can leverage tech to increase profits and serve customers is nearly unlimited. But time, know-how, and fear of risk are getting in the way.

Catalyit solves it for you.

As an added IIAW member benefit, all IIAW agency members receive a free one-year Full Access Subscription to Catalyit. Learn more at iiaw.com/catalyit

Welcome, Freeman!

And as a Michigan alumnus, another my favorite memories is undoubtedly when we dominated Ohio State in Columbus last November.

When you were a kid, what did you want to be when you grew up?

I honestly don't remember what I really wanted to be when I was a kid. But I know that when I was a kid, I wanted to be able to get into something I was interested in when I grew up, such as sports, math or physics, analytics or some cool things. Also, I also want to be a person who can make people feel happiness.

What do you hope to do with your degree following graduation?

Freeman Zhang joined the IIAW in May as our Data Analytics Intern. We are lucky to have Freeman's expertise and knowledge to help us create an interactive dashboard with our agency compensation survey data, analyze E&O risk management and survey data in order to find patterns and relationships as it relates to agency operations and visualize additional data sets the IIAW has access to. While Freeman is helping the association with its data analytics needs, we hope to provide Freeman exposure to the insurance industry where data is heavily used and future career opportunities are abundant.

What’s one of your favorite memories from the past year?

I was incredibly honored to receive the Program Excellence Award from the Wisconsin School of Business Analytics Program in May. This award serves as recognition and praise for my academic performance and active participation in various extracurricular activities throughout the academic year. It stands as one of my fondest memories from the past year.

After graduation, my strong desire is to continue working and studying in the field of data business analysis, utilizing diverse data technology tools for various business analytics projects. My aim is to expand my knowledge and gain valuable work experience in this domain. With my dedication and enthusiasm, I hope to achieve significant milestones and make noteworthy contributions to the industry.

What would we most likely find you doing on the weekend?

Home, Michigan The Big House or Camp Randall on a fall Saturday; hiking trails in expansive parks; movie theater; great restaurants; or Call of Duty battlefields. Those are all my favorite places.

What's something you're looking forward to during your role as the IIAW's data analyst?

First and foremost, I am dedicated to ensuring the successful completion of each project and making significant contributions to IIAW's progress in data analysis and business intelligence. Simultaneously, I aspire to tackle challenging tasks and acquire invaluable experience in the realm of real-world business data analysis.

If you'd like to welcome Freeman or if you have any questions, he can be reached at freeman@iiaw.com.

Freeman Zhang, IIAW Data Analytics Intern

Do you trust your insurance partner? Well, you’d better. Insurance coverage is really just a promise.

A promise to be there when things go bad. A promise of “we’ll take care of your customers.”

Find out more about the Silver Lining and how we value our agent relationships.

Visit thesilverlining.com.

There’s a shift happening in today’s workforce – one that could deliver better results and more productivity. It’s the move from hiring experience to hiring skills.

A skills-based hiring and employee work model is basically this: hiring a person based on their skills rather than on their degrees or education. While many organizations may think they do that already based on the job requirements, a true skills-based hiring and work model employs a deeper dive into an employee’s strengths.

For example, a quality control specialist may have plenty of crossover expertise or talent in understanding and applying risk management strategies. Or a claims representative could have the skills needed to help on the underwriting team. In fact, your current workforce possesses plenty of skills that may not be being utilized.

Fortunately, it’s easy to uncover such hidden talent. Employers can easily create specific skills testing to determine cognitive skills (math or reading comprehension) or soft skills such as customer service or relationship management.

Whether looking internally or looking to hire, your organization can transition easily into evaluating based on skills or hidden talent. We recommend the following:

Conduct a skills gap analysis. Review your current team. Ideally, you should be testing them as you would a new hire to see where their proficiencies lie. What skills are coming out in brainstorming, crisis, or problem-solving situations? What have managers observed, such as who works best in teams, who tends to lead, who handles customer complaints best? Ask employees what they love doing, as well. You’d be surprised what kind of talent lies in plain view.

More focused job descriptions. You want to identify competencies, not education. In fact, educational credits should be taking a backseat to skills and abilities. When writing job descriptions, list the skills you’re hoping to bring on board – typically filling the gaps in your current

PUTTING SKILLS FIRST

team’s skill set. Are you looking for an employee who is a good communicator? An excellent team worker? Someone who is quick to pick up math or accounting?

Assess those skills. Tests ranging from situational judgment to psychometric measurements can give you a more in-depth picture of the candidate and their strengths and weaknesses than an educational background will show. For example, a candidate with a four-year college degree and one year of experience on the job may not test as well as a candidate with ten years of experience and no degree. Those skills that job seekers have acquired over the years –and are exactly what you’re looking for – may not show up in a traditional interview setting.

Reskill your current teams. Encourage employees to follow their interests when looking for continuing education or retraining. That agility helps your organization pivot quickly with the market demands and keeps employees feeling connected and engaged.

Transition over time. Skills-based workforces get more done. That matters. A recent Deloitte study shows that effectively matching workers to work can benefit organizations through increased financial performance, better retention, and an enhanced ability to anticipate and respond to future disruptions[1]. Yet organizations are still lagging behind. The same Deloitte study shows that 30% of respondents feel their organizations are ineffective at matching the right talent to work.

Rethink your talent pool. Add hybrid work models to your employee engagement model. Removing geographic limitations means you can now locate the best candidate whose skills fit with your needs.

Making the Switch

By switching from the traditional hiring process to one that emphasizes skills over education, your organization could gain key talent who can become instant assets to your current teams. Likewise, your teams could be redeployed in new ways to bring out their best skills and productivity. While it may take a little time to transition your organization to a skills-based approach, the rewards of doing so are more engaged employees, higher productivity, and a more agile organization.

offers a helping hand.

At Western National Insurance, nice is what’s guided us for over 100 years. And we’re just getting started.

Western National Insurance. The power of nice.

www.wnins.com

6 CLAIM TRENDS SUMMER CAMPS ARE FACING

While camps and recreation programs are already well into their busy season, they can't ignore their risk management and insurance needs. The initial plans they made for the season simply may not be adequate.

There are many different trends in the types of claims these customers are submitting. Here are the top six claim trends among our camp customers at Church Mutual across the country:

1) Concussions are a serious injury that can lead to hefty medical bills. While sports and outdoors organizations are thankfully paying more attention to the effects of concussions than they did 20 years ago, these types of injuries still occur. The more active young people are, the more likely they are to suffer a traumatic brain injury.

During your conversations with camp directors and those who run athletic programs, check to see if they have appropriate medical coverage for these types of incidents.

2) Mental health is as much of a concern as physical health. Camps have been reporting a growing mental health crisis among youth today. There are significantly more incidents than in decades past, whether that is between campers or between campers and staff members. As a result, camps are bringing in mental health professionals, such as social workers, psychologists and therapists.

While these individuals do important work, they may also pose a liability. Make sure camps are

looking at their policies to see if they are covered for these additional staffers.

3) Wildfires, hurricanes and other natural disasters are major issues for some parts of the country. Climate change has led to an increased number of natural disasters and other damaging weather issues, including hail. Any organization that runs most of its programs outdoors needs to be prepared for worst-case scenarios, have an evacuation plan and review what specific catastrophe-related coverage would be appropriate.

4) Sexual abuse incidents continue to occur. A single claim is one too many. At camps, these charges can involve both a staff member and camper interactions and interactions between campers.

Unfortunately, there are often too many opportunities for predators to make their move. Administrators should perform criminal background checks on both employees and staff members. They also need to make sure campers are properly supervised. An older camper, for example, should not be spending any one-onone time with a younger camper.

As you converse with these organizations, ask what steps they are taking to manage this risk and whether they have appropriate insurance for sexual abuse claims.

5) Esports are becoming a security risk as more camps offer them. Esports, or electronic

sports, refers to multiplayer video games in which children compete against other players. It can open a camp's network to cybersecurity concerns—but there are steps camps can take to protect themselves:

• Allow system access only to those who have been approved.

• Hire a security vendor to perform an audit and install security software.

• Use supervisors to make sure campers log out of apps and websites when they are finished using them.

• Keep software up to date, staying on top of the latest upgrades and encouraging campers to do the same with their own devices.

• Encourage staff members to create strong passwords for their accounts so they are more difficult to hack.

• Conduct criminal background checks on all staff and volunteers to lower their chance of hiring a cybercriminal.

• Develop a written policy on cybersecurity, which can serve as a legal defense if a lawsuit arises.

• Purchase cybersecurity insurance.

6) Property values are increasing. One of the major effects of inflation is that property values have increased, as have the costs of building materials. As a result, many camps may be underinsured. Insurance agents can make sure clients are adequately prepared, which could involve a reassessment of their insurance needs.

For camps and recreation programs, every day presents a new challenge. When camps are properly protected, camp officials can breathe a sigh of relief and focus on their mission of serving youth.

> Tracy Schmeltzer, Assistant Vice President of Camps, Agency & Groups, Church Mutual

private passenger autos across 31 states. Rated A+ by AM Best and S&P, Acuity employs nearly 1,600 people.

UFG INSURANCE RECOGNIZED FOR INNOVATIVE MARKETING COMMUNICATIONS AND VIDEO

Members in the News

ACUITY'S JOEL CLAUSING NAMED FIRE INVESTIGATOR OF THE YEAR

Sheboygan, WI (6/9/23) - The Wisconsin Chapter of the International Association of Arson Investigators (WIIAAI) named Joel Clausing, Special Investigator at Acuity Insurance, Fire Investigator of the Year. This award is given to a person who has demonstrated exceptional accomplishments in fire investigations in both civil and criminal fields of arson control.

“This award recognizes Joel’s outstanding investigative skills in a fire investigation at a business in southeastern Wisconsin,” said Jason Knecht, WI-IAAI Awards and Scholarship Committee Chair. “Ultimately, Joel’s persistent work led to arson charges being filed in this case.”

“We congratulate Joel on being named Fire Investigator of the Year. His achievement reflects Acuity’s commitment to fight arson and other types of insurance fraud,” said Melissa Winter, Acuity President.

Insurance fraud costs American consumers and businesses $80 billion per year, according to the Coalition Against Insurance Fraud.

“We work hard to detect and fight fraud to ensure that our honest customers don’t end up paying the price,” said Ben Salzmann, Acuity CEO.

Joel is part of Acuity’s Special Investigations Unit (SIU), a team of investigators with a diverse background of training, experience, and advanced certifications. He joined Acuity in 2016 with an extensive background in law enforcement. Joel worked as a Deputy Sheriff from 1995 to 2001 and as a Detective from 2001 to 2016, both in the Washington County Sheriff’s Office. He earned a bachelor’s degree in law enforcement from the University of Minnesota-Mankato and also holds the Certified Insurance Fraud Investigator designation.

The International Association of Arson Investigators is an international professional association of more than 11,000 fire investigation professionals, united by a strong commitment to suppress the crime of arson through professional fire investigation.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 130,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and

Cedar Rapids, IA (6/29/23) - The Insurance Marketing & Communications Association (IMCA) announced UFG Insurance as a winner of six 2023 Showcase Awards during its Ignite annual conference in June.

“For over 60 years, the IMCA Showcase Awards have recognized the most effective and innovative work from the best minds in insurance marketing and communications,” the association explains on its website.

UFG received three silver and three bronze Showcase Awards for 2022 creative. Honored work includes a baseball-themed contest, social media content, digital collateral, a marketing campaign for the state Land Improvement Contractors Association (LICA), an agent holiday card with digital animation and an inspiring video production of UFG’s Go Beyond Award recipient.

“We are grateful to be recognized by the IMCA for the ingenuity of our marketing and communications team,” states Casey Prince, AVP and marketing communications manager at UFG. “These awards serve as a true testament to our ability to push the boundaries of creativity, innovation and excellence in insurance marketing.”

The organization also received four awards from the 44th Annual Telly Awards in June. UFG was awarded gold for a fully animated holiday message. UFG was also honored with three bronze awards for their employee appreciation, Go Beyond Award and community support videos.

“The caliber of the work this season coming from creators truly has reflected the theme of breaking out and standing out,” said Tellys Executive Director Sabrina Dridje.

The Telly Awards is the premier award honoring video and television across all screens. More than 13,000 entries are received from all 50 states and five continents and are judged by more than 200 leading experts.

“To be acknowledged with not one but four of these esteemed accolades, alongside large content producers such as Disney, NASA and Netflix, is truly humbling,” said Prince. “We are thrilled that our ability to craft compelling narratives with stunning visuals continues to impress.”

ABOUT UFG

Founded in 1946 as United Fire & Casualty Company, United Fire Group, Inc. (UFG, Nasdaq: UFCS), through its insurance company subsidiaries, is engaged in the business of writing property and casualty insurance. Through our subsidiaries, we are licensed as a property and casualty insurer in 50 states, plus the District of Columbia, and we are represented by approximately 1,000 independent agencies. A.M. Best Company assigns a rating of “A” (Excellent) for members of the United Fire & Casualty Group. For more information about UFG visit www. ufginsurance.com.

THE WAR AGAINST NON-COMPETE AGREEMENTS

If you attended InsurCon and the panel discussion in which I participated, or have followed the IIAW alerts and this column since January, you are well aware of the top-down federal attack on non-competes that is a core part of President Biden’s “pro-worker” agenda. If enacted, the FTC proposed rule will lead to years of litigation and uncertainly in the business community. Many states (before and after the federal efforts) have taken their hostility toward noncompetes into their legislatures and enacted legislation banning or limiting restrictive covenants. In this column, I will provide an update and summary on the new law in neighboring Minnesota, where I know many IIAW members have operations, as well as yet another federal agency weighing in against non-competes (the National Labor Relations Board, or NLRB—and do not tune out because you are not a union workplace, the NLRB and the federal law it enforces go beyond just union shops).

In the extremely unlikely event you are not familiar with non-competes and other restrictive covenants, in a nutshell, these agreements limit an employee, such as a producer, from working for a competitor following the end of employment. Some forms of restrictive covenants protect confidential information, preclude customer and employee solicitation after the relationship ends, and all are subject to judicial interpretation (and general hostility) when it comes to enforcement.

Minnesota’s New Non-Compete Ban

In Minnesota, employers soon will no longer be able to require employees to sign noncompete agreements. The Minnesota legislature recently passed, and the governor subsequently signed, legislation that bans non-compete agreements effective July 3, 2023. The law applies to contracts entered into on or after July 3, 2023, so non-compete agreements currently in place are not affected.

The law prohibits non-compete agreements with all employees – from entry-level positions to C-suite executives – and even independent contractors. Under the new law, a non-compete agreement is defined as an agreement between an employee and employer that restricts the employee, after termination of employment, from performing: (1) work for another employer for a specified period of time; (2) work in a specified geographical area; or (3) work for another employer in a capacity that is similar to the employee’s work for the employer that is party to the agreement.

Employers have some respite under the law. Notably, Minnesota’s new law does not apply to nondisclosure or nonsolicitation agreements. In other words, employers may continue to enter into agreements with employees to protect their trade secret or confidential information and agreements that restrict an employee’s ability to solicit customers of the employer after termination.

Further, the new law does not ban noncompetes in the context of a sale of a business or in anticipation of the dissolution of a business.

If your agency has operations and key personnel in Minnesota, now is the time to prepare new agreements for post-July 3, 2023 hires, and to review your existing agreements and be mindful that the law to be applied to them is different.

NLRB Guidance Attacking Non-Competes

At the federal level, the General Counsel of the NLRB issued a memorandum on May 30, 2023, opining that non-compete agreements violate federal labor law with very limited exceptions. The NLRB General Counsel is the top prosecutor of the NLRB, so her opinion signals where we will likely see complaints issued against employers.

As background, Section 7 of the National Labor Relations Act (NLRA) protects employees’ rights to band together for collective bargaining purposes or for other “mutual aid or protection” (strikes, for example). Employers cannot interfere with these rights, otherwise the employer violates Section 8 of the NLRA. Employees’ Section 7 rights exist without regard to union status, i.e., in any workplace.

According to the NLRB’s General Counsel, non-compete agreements interfere with Section 7 rights and thus employers who have these agreements in place generally violate Section 8 of the NLRA. For example, she argues that non-compete agreements “chill employees from concertedly threatening to resign to demand better working conditions” because employees would feel the threats are futile due to

their lack of access to other employment opportunities. The memo is silent as to whether the General Counsel’s criticism of non-compete agreements includes nonsolicitation provisions.

According to the General Counsel, noncompetes are permissible in very limited circumstances, giving the green light to agreements that limit only individuals’ managerial or ownership interests in a competing business, or true independent contractor relationships. She also states that agreements may not violate labor law if the provisions are “narrowly tailored to special circumstances justifying the infringement on employee rights.” However, she provides no examples of these specific circumstances; she only proffers examples of circumstances that do not fit the bill, including the desire to avoid competition from a former employee or protecting investments in training employees. She further states that “it is unlikely an employer’s justification would be considered reasonable in common situations where overbroad non-compete provisions are imposed on low-wage or middle-wage workers who lack access to trade secrets or other protectible interests, or in states where non-compete provisions are unenforceable.”

As you can see, the NLRB’s top prosecutor has taken a hard stance on non-compete agreements. Although her guidance does not have the force of law, this will likely be yet another front in the war against noncompete agreement.

> Josh Johanningmeier IIAW General Counsel