June 2015 Wisconsin Independent Agent by Independent Insurance Agents of Wisconsin

wisconsin

INDEPENDENT AGENT JUNE 2015

SALES & LEADERSHIP CONFERENCE JULY 15-17, 2015 Wilderness Resort, Wisconsin Dells

R E G I S T E R AT I I AW. C O M

The things people care about the most are the things they just

can’t afford to lose.

Most people are looking to save money any way they can. Especially on things they can’t even see. Like insurance. But inferior insurance is just plain useless. That’s why West Bend’s Home and Highway® policy makes sense. Not only does it protect just about everything your customers own, they also get great benefits like our Claim Free Award. If they don’t have a claim on their policy all year, they’ll get a portion of their annual premium back – in cash! And with West Bend, it’s backed by your knowledge and experience. West Bend. Insurance your customers buy when they can’t afford anything less.

wisconsin

INDEPENDENT AGENT JUNE 2015 Eric Schwartz, Editor

Open Door Policy Sales & Leadership Conference: Partnership with UW a Game Changer . . .5 Technology Mastering Producer Productivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 2015 Annual Convention Creates a Buzz! . . . . . . . . . . . . . . . . . . . . . . . 10 Coverage Information It’s a Bird! It’s a Plane! No, It’s a Drone! . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Marketing Minute Build Client Loyalty & Generate Referrals . . . . . . . . . . . . . . . . . . . . . . . . 28 Virtual University – Ask An Expert Q&A Value-added Services Could Pose an E&O Exposure . . . . . . . . . . . . . . . . 30 Errors & Omissions Mixed Signals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Commentary From Counsel Cyber Liability: Know Your Coverage Options . . . . . . . . . . . . . . . . . . . . . 34 Members in the News . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .36 Independent Insurance Agents of Wisconsin 725 John Nolen Drive, Madison, Wisconsin 53713 Phone: (608) 256-4429 or (800) 362-7441 ■ Fax: (608) 256-0170 ■ Web: www.iiaw.com Executive Vice President - Matt Banaszynski 2014-2015 Executive Committee President.................................................... John Wickhem P.O. Box 1500, Janesville, 53547-15 President-elect ................................................ Steve Leitch P.O. Box 85, River Falls, WI 54022 Secretary-Treasurer ....................................... Matt Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 Chairman of the Board ................................ Dave Dunker P.O. Box 443, Brookfield, WI 53008-0443 State National Director ................................ Linda Steiner 555 Main Street #320, Racine, WI 53403 2014-2015 Board of Directors Mike Ansay 101 East Grand Ave. #11, Port Washington, WI 53704 Mark Behrens 555 Main Street #320, Racine, WI 53403 Jason Bott 330 East Kilbourn Avenue, Milwaukee, WI 53202 Gerald Couri 379 West Main Street, Waukesha, WI 53186 Mike Farrell 1300 S. Green Bay Rd., Racine, WI 53406 Chris Hanson 5601 Grande Market Drive, Appleton, WI 54913 Lise Meyer Kobussen P.O. Box 633, Sauk City, WI 53583 Brian McClone 505 North Westfield Street, Oshkosh, WI 54902 WISCONSIN INDEPENDENT AGENT

Jeff Rasmussen 525 Junction Road, Madison, WI 53717 Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Darrel Zaleski 4233 Southtowne Drive, Eau Claire, WI 54701

On The Cover… Two years ago, the Young Agents Conference changed to the Sales & Leadership Conference. The retooled event reflected our industry’s need to adapt and evolve to the nonstop pace of today’s business landscape. The conference’s emphasis on training and developing existing and future leaders has been a success. But we can’t afford to rest on our laurels. This 2015 conference expands on what the Emerging Leaders Committee started two years ago. A partnership with the Wisconsin School of Business takes the Sales & Leadership Conference to a new level and redefines what industry education can be. Matt Banaszynski’s article on page 5 goes into detail about how this partnership came about. Take a look at the brochure linked on IIAW.com to review what the conference is about. Register at IIAW.com!

> ADVERTISERS & INFORMATION AAA ................................................................ 38 ACUITY Insurance ........................................... 39 Applied Underwriters ........................Back Cover Axley Brynelson ............................................. 26

2014-2015 Committee Chairs

Badger Mutual .................................................. 7

Agency Operations....................................... Kim Dandrea 1300 South Green Bay Rd. #100, Racine, WI 53406

Burns & Wilcox ................................................. 6

Automation/Technology ............... Cathleen Christensen P.O. Box 949, Fond du Lac, WI 54936-0949

EMC Insurance.................................................. 8

Emerging Leaders ...................................... Janelle Higgins 6200 Mineral Point Road, Madison, WI 53705-4504 Employee Benefits............................................. Tim Bever 555 Main St. #320, Racine, WI 53403 Finance & Compensation ............................ Matt Weimer 100 North Corporate Drive #100, Brookfield, WI 53045 Government Affairs .......................................Skip Hansen 100 North Corporate Drive #100 Brookfield, WI 53045 Industry Relations ....................................... Kevin Murray 525 Junction Road, Madison, WI 53717 Marketing & Membership Development ........... Jeff Thiel P.O. Box 1610, Waukesha, WI 53187-1610 Smaller Agencies .................................... Michael Walston P.O. Box 236, Kewaunee, WI 54216-0236 Technical ................................................... Mark Truyman P.O. Box 6 , Seymour, WI 54165

Guard Insurance ............................................. 37 IIAW Continuing Education ............................. 32 Integrity Insurance ........................................ 27 InVEST ............................................................ 23 Partners Mutual ............................................. 26 Pekin Insurance............................................... 31 Robertson Ryan.............................................. 35 Society Insurance........................................... 29 The IMT Group ................................................. 31 West Bend ........................................................ 2 Western National .............................................. 4 JUNE 2015 | 3

4 | NOVEMBER 2014

WISCONSIN INDEPENDENT AGENT

OPEN DOOR POLICY

2015 SALES & LEADERSHIP CONFERENCE: Partnership with UW School of Business a Game Changer for Insurance Industry Education

“

Education is the most powerful weapon which you can use to change the world.” – Nelson Mandela Education is the cornerstone of our industry. Producers and CSRs pride themselves on earning a variety of designations and attend numerous CE courses each year. Do they use that knowledge to change the world? Most definitely. What you have learned has had a profound impact on insuring/protecting someone’s “world”. Without you, where would they be after that fire destroyed everything they owned? Thanks to your advice, advocacy and their insurance they are able to pick up the pieces and put their lives back together.

The Center’s customized professional development programs are led by worldrenowned faculty, business leaders and consultants with extensive work experience. But when was the last time you embarked on a professional journey to change your world and those around you? A couple years ago, the Emerging Leaders Committee (formerly Young Agents Committee) embarked on a journey to create a different type of educational program that is uncommon in our industry — one that focuses on providing tools and resources to help individuals be better prepared to meet business challenges and market transitions that are now common in our fast paced world. Most of us strive to be better leaders, better managers or better producers, but there are few learning opportunities to do so

WISCONSIN INDEPENDENT AGENT

without spending a fortune. After many discussions it was determined that, if we were truly going to redefine the educational landscape that our industry had become accustomed to, we needed to find the right partner. Countless interviews with different educators and business professionals led the committee to the UW-Madison School of Business Center for Professional & Executive Development (The Center). The Center’s customized professional development programs are led by worldrenowned faculty, business leaders and consultants with extensive work experience. These programs combine interactive, hands-on industry, or organization-specific learning to help you transition to a place of greater potential and performance. The Center has the ability to leverage (tap into) the business school’s Actuarial Science, Risk Management & Insurance program, one of the top three programs of its kind in the nation, and integrate some its instructors and materials into our curriculum. The Emerging Leaders met extensively with instructors, program directors and other UW faculty to identify the challenges and opportunities they face within their careers. Faculty at the UW also interviewed and met with agency owners and managers during the curriculum development phase to ensure they gathered the necessary feedback to create a custom learning solution for the IIAW and its members. After many months of sifting through industry data from the IIABA and other sources, a curriculum was developed to meet the evolving educational needs of independent agents and insurance company personnel. The Sales & Leadership Conference brochure is linked (and downloadable!) on our home page at IIAW.com. It’s also linked in Spotlight, our

weekly e-newsletter. Please take a moment and review the curriculum and the high caliber instructors that will be leading these courses. I believe you will be impressed. Your journey to become a better leader in your business may start with this conference, but it doesn’t have to end with it. If there is an instructor or course at this conference that speaks to you, we can provide you with a customized learning path at The Center so that you can build on the knowledge you received. Scholarships are available through the IIAW for those interested in furthering their professional development. I am proud of the hard work and dedication the Emerging Leaders Committee put in to creating this unique learning opportunity for our industry. This multi-year strategic partnership between the IIAW and UWMadison will propel our members to new heights in their careers. Our company partners deserve a lot of credit as well. They embraced our organization’s vision and stepped forward to help underwrite it to make it possible. Thank you to everyone involved in making this dream a reality. The Sales & Leadership Conference is July 15-17 at the Wilderness Resort in Wisconsin Dells. Register at IIAW. com. Contact the IIAW for more information about the conference and scholarship opportunities.

> Matt Banaszynski is the Executive Vice President of the Independent Insurance Agents of Wisconsin. Contact him at matt@ iiaw.com.

JUNE 2015 | 5

BURNS &

PROVIDE THE ANSWERS TODAY

WILCOX SPEED IS OUR MIDDLE NAME.

Our vast global market relationships speed up our quoting and binding process, quickly providing insureds the solutions they need. When it comes to the hard-to-place, think fast. Think Burns & Wilcox.

YOUR WISCONSIN INSURANCE PLAN The Wisconsin Insurance Plan is a valuable tool for Independent Insurance Agents and their clients to fill the gap when property insurance is unavailable through other sources.

All licensed property agents and CSRs should become familiar with WIP to assist their clients in the application process. The Wisconsin Insurance Plan is Wisconsin’s FAIR Plan or residual property insurer. The Plan was created to provide basic property insurance on certain properties rejected for coverage by other insurers. The Plan has underwriting standards and is not required to insure all properties that apply for coverage. However, these standards may be less restrictive than those of the insurer(s) you represent. It is worthwhile to take the time to review the Plan’s new website and become familiar with it.

committee and are set to provide fair access to coverage. The goal of the plan is not to operate at an underwriting profit or loss but to provide coverage for citizens. Losses are paid from the Plan’s operating funds and any deficit is assessed to insurance companies doing business in Wisconsin. The website has more information about the Plan and you are able to get a quote, application forms and the latest news. A new brochure and product coverage chart are available on WIP’s website at wisinsplan.com.

The Plan is designed not to be a permanent market for insurance, but to fill the gap when coverage is required but unavailable because of underwriting standards. Items of interest include: > Properties must meet reasonable underwriting standards including satisfactory housekeeping and maintenance. In other words, it is not a dumping ground for bad properties, but a tool for consumers and agents to use in the event a marginal risk is unacceptable to standard markets. > All properties are surveyed to confirm that reasonable underwriting standards are met. Coverage can be denied, delayed or cancelled in the event that risk factors are unacceptable. Such standards may include gross safety violations or property which is damaged or deteriorated to a great degree. > The plan may exclude unacceptable hazards. > WIP is not an insurance company but an association created by Wisconsin Administrative Code 4.10 to make basic homeowners and property coverage available to citizens > All agents are required by Administrative Code 4.10 to assist applicants when applying for coverage with the WIP Coverage is available under the plan for limits up to $200,000 for dwellings and homes and commercial properties up to $500,000. Limited liability coverage and personal property theft coverage are also available. The premiums for coverage are set by the Plan governing WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 7

Clients want more value, and one valuable way in which EMC helps clients is providing access to online loss control services. From training programs to safety posters, the materials your clients need to reduce losses are within reach. It’s just one of the many reasons policyholders Count on EMC®.

DAVE YOUNG Risk Improvement Manager EMC Milwaukee Branch

LOSS CONTROL SERVICES

WHERE YOU NEED THEM.

YOUR NEAREST BRANCH OFFICE:

www.emcins.com

Milwaukee Branch: 800.495.1800 | Home Office: Des Moines, IA

TECHNOLOGY

MASTERING PRODUCER PRODUCTIVITY There is only so much time in a day. Insurance producers have a lot to do: D Networking to generate new leads. D Visiting prospects to learn more about their business and risk management needs. D Working with staff to create an effective insurance program. D Negotiating with insurance company underwriters to create the best coverage and cost. D Moreover, putting out the fires that seem to crop up every day. Getting it all done can be a challenge. Getting it all done well may be the bigger problem. Time is money. The more time you can save, the more money you can make. Sounds simple, doesn’t it? However, how to accomplish it is much harder. Fortunately, there are a growing number of tools and services insurance sales people can use to maximize their productivity. While I do not have room for a comprehensive list, here are a few that you should start exploring.

Larger Smartphones and Tablets The newer smartphones – both Android and iOS – have more storage, faster processors, and better cameras than ever. Tablets may be even better.

Note Taking Fifty percent of all E&O claims involve a producer. Taking simple notes of what you WISCONSIN INDEPENDENT AGENT

talked about with a client or prospect can go a long way to helping you accurately document what was requested and the steps you took to deliver. There are a multitude of note-taking apps that help streamline this process.

Voice Dictation Whether it is Apple Siri, Google Now, or Dragon Dictation, stop typing and start talking! Text messages and email are much easier to get right by using one of these tools.

Management System Mobile Apps A variety of agency management system vendors have released some mobile access to agency system information. Use whatever capability your system has available. Answer your clients’ questions on the spot. Moreover, if your vendor does not have this ability, make sure to tell them you want it now.

Document Scanning Due to the higher quality cameras on your phone, taking a picture of a document is easier than ever. Scannable, by Evernote, is the main app I use. With the app open, just point your camera at a physical document and it will identify and scan it. It does an excellent job of separating the paper document from its surroundings. If Scannable does not see your paper, you can always manually snap a picture and then crop or rotate the scan until it looks just right. Scannable automatically saves your document to Evernote. Other options include sending your document in a message to a colleague or sharing it via email. Scannable also recognizes business cards, making it easy to capture contact information.

Cloud Storage

There are a variety of cloud storage options. Box, Dropbox, Google Drive, and One Drive are the options I have on my devices. When you take pictures of a building you insure, load them up to the cloud so staff can retrieve them immediately.

Evernote and OneNote If you have been reading TechTips for a while, you know I am a big user of Evernote. It is where I store everything, and I highly recommend it. However, OneNote has improved substantially over the last few years and is a very viable option. It works well with the other Microsoft Office Products.

eSignatures eSignatures are finally starting to gain traction. eSignature applications offer prospects the ease of legally signing applications using an iPad or smartphone. eSigning is helpful for agents who want to make the sales process as effortless as possible for their prospects. These are just a few of the tools available that will help insurance sales people be as productive out of the office as they are in the office. However, the big advantage that online sales tools bring is to provide extra bandwidth for agents as they work to grow their book.

> Steve Anderson provides information to insurance agents about how they can use technology to increase revenue and/ or reduce expenses. Go to steveanderson.com.

JUNE 2015 | 9

> IIAW ANNUAL CONVENTION

20 1 5 A N N UA L CO N V E N T I O N CREATES A BUZZ The convention kicked off on Wednesday morning with three great CE sessions: the Auto-Tech Open Forum (moderated by members of the Automation-Technology Committee), Emerging Industry Issues Panel (with panelists Bernard Rosauer, J.P. Wieske and Stephen Clarke) and Assistant Coaching: Three Cs To Your Office’s Success (lead by Kathy Paulson.) This set up the first of Ryan Hanley’s informative and entertaining presentations. Ryan’s timely presentation, How to Stand Out Online and Attract the Modern Insurance Consumer, was well received from the large crowd. Ryan also presented on Thursday about how to generate referrals on TrustedChoice.com. Ryan provided a great lead-in for the convention’s keynote speaker. Rob O’Neill, the former leader of SEAL Team 6 and one of the most decorated soldiers in U.S. history, kept the crowd riveted with his stories of combat, perseverance, sacrifice and the message to “Never Quit.” It was an inspirational and entertaining hour that was met with a standing ovation from the 600 people in attendance. The excitement continued in the exhibit hall as Robert stayed for a meet and greet with IIAW members and guests in the VIP Lounge. Nearly 70 unforgettable photos were taken in an hour before Mr. O’Neill made his exit. But the enthusiasm remained for the 92 fantastic vendors. The exhibit hall was a beehive of excitement for the duration of the tradeshow. The previously mentioned VIP Lounge included beer samples from Potosi Brewing Co. and a place for VIP members to relax. The free professional headshot booth was a big hit as many members took advantage of the opportunity. In addition, the social media lounge (sponsored by the Emerging Leaders Committee) provided free assistance in setting up social media accounts. In the final hour, The IMT Group sponsored the ever-popular $100 giveaway every five minutes and super door

10 | JUNE 2015

From start to finish, there was a buzz in the air about the 2015 IIAW Annual Convention. Thank you to all the independent agents, company personnel, exhibitors, featured speakers, and guests who made this possible. It was one of the best conventions in years.

prizes were awarded to many lucky recipients. The good time kept on rolling at the Wisconsin Brew Pub with complimentary beer on tap all night long. The opening night reception featured the entertainment of Piano Fondue’s dueling pianos. They took requests all night and played a diverse set list from Neil Diamond to Vanilla Ice to Sir Mix-a-Lot. Another round of super door prizes were awarded before Piano Fondue left the stage. Thanks to all the great companies that donated prizes. The opening night reception was hosted by our Exclusive Company Sponsors. At Thursday’s annual awards breakfast and business meeting, the following people received honors: Linda Steiner (Raymond “Skip” Hansen Agent of the Year); Jack Demski (Emerging Leader of the Year); Bruce Urben (Industry Representative of the Year); Chris Hanson (Employee Benefits Agent of the Year); Ansay & Associates (Government Affairs Agency Leader of the Year); and Jeff Thiel (Committee Chair of the Year). Dina Schultz accepted an honor on behalf of Society Insurance for the company’s 100th year in business. Association President John Wickhem received the President’s Award for his great work during the year. Skip Hansen received special recognition for his contributions to the IIAW and the Agent of the Year Award was renamed in his honor. Jeff Rasmussen and Lise Meyer Kobussen were presented Noble Eagle awards for their service on the IIAW Board of Directors. Ed Felchner, recently retired from ACUITY Insurance, received the E.J. Tapping Lifetime Achievement Award in recognition of his great contributions to the independent agency channel. The convention wrapped up with three sessions: Procedures Manual 1, 2, 3: An E&O Overview (with instructor Mary Hauri); Workers’ Comp Forum (presented by Bernie Rosauer, Tad Cleveland and Melanie Lindseth); and Let’s Talk

Shop: Healthcare Reform’s Impact on 2015, 2016 and 2017 (with speaker David Grunke). Thank you to Germantown Mutual and Selective Insurance for their $1000 donations, and Mt. Morris Mutual for the $500 donation for the cash giveaways at the end of the CE sessions. The 2015-16 Board of Directors includes: Mike Walston, Kewaunee; Brian McClone, Oshkosh; Jack Riesch, Waukesha; Jerry Couri, Waukesha; Darrel Zaleski, Eau Claire; Mark Behrens, Racine; Jason Bott, Milwaukee; Cindy Burns, Marshfield; Mike Farrell, Racine; Chris Hanson, Appleton; and Mike Ansay, Port Washington. The 2015-16 Executive Committee is: John Wickhem, Chairman of the Board; Steve Leitch, President; Matt Weimer, President-elect; Lise Meyer Kobussen, Secretary-Treasurer; and Linda Steiner, State National Director. The IIAW Exclusive Company Sponsors are: AAA Wisconsin, ACUITY Insurance, Anthem Blue Cross Blue Shield, Austin Mutual, Integrity Insurance, Progressive Insurance, QBE, SECURA Insurance, SFM Insurance, Society Insurance, The Hanover Insurance Group, The IMT Group, Travelers Insurance, West Bend Insurance, and Wilson Mutual. Thank you for your generous support of the annual convention and all Association events! Additional thanks go to SECURA for their support of the Past Presidents reception. Guess what? We get to do it again next year! Start drinking water and exercising now. The 117th annual state convention is scheduled for May 11 and 12, 2016, at the Kalahari Resort in Wisconsin Dells. For more about the convention, please see the photo spreads on the following pages and go to IIAW’s Facebook page at facebook.com/ IIAofWI.

WISCONSIN INDEPENDENT AGENT

Î IIAW President John Wickhem presented Linda Steiner with the Raymond “Skip” Hansen Agent of the Year. See pages 15 and 16 for all the award winners.

IIAW ANNUAL CONVENTION

Ï Wave to the camera. A crowd of nearly 600 attended the fantastic keynote speech of Robert O’Neill.

Ð After Mr. O’Neill’s speech, he chatted and posed for pictures in the exhibit hall. Here the representatives from SFM Insurance went incognito in their photo op. From left: Nick Marino, Rob O’Neill, Rick Spaulding and Janelle Krainz. For more in the exhibit hall, please turn to page 17.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 11

> IIAW ANNUAL CONVENTION | FEATURED SPEAKERS & CONTINUING EDUCATION

Wisconsin Commissioner of Insurance Ted Nickel addressed the awards breakfast crowd with updates about what OCI has planned for the future.

Bruce Urben of The Hanover Group speaks to attendees at the Automation-Technology Open Forum on Wednesday morning.

IIAW Executive VP Matt Banaszynski moderated the Emerging Industry Issues Panel on Wednesday morning. The panelists from left: Stephen C. Clarke, ISO; J.P. Wieske, OCI; and Bernie Rosauer, WCRB.

Ryan Hanley’s Wednesday and Thursday presentations about digital marketing were a highlight of the convention.

Kathy Paulson’s Wednesday morning breakout session focused on the importance of communication, confidentiality and competency in the workplace.

12 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

During a break by Piano Fondue, Linda Steiner and Tarah Sutton Marx posed for a photo.

CONVENTION RECEPTION

Jenna Zalud, Andrea Kiemen-Rognsvoog and Trisha Ours at the Wisconsin Brew Pub on Wednesday night.

After a long day of classes and speakers, people cut loose to the dueling pianos of Piano Fondue. You can almost hear them singing along to Sweet Caroline.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 13

> IIAW ANNUAL CONVENTION | CONVENTION RECEPTION

Walking the red carpet for the paparazzi outside of the Wisconsin Brew Pub. From left: Avery Bott, Addison Bott, Matt Weimer, Zahrina Weimer, Khai Weimer and Brody Bott.

They were a hit with the crowd right from the start. Josh DuPont (with trumpet) and Mike Massey are Piano Fondue. They took requests all night and kept the crowd dancing.

More super door prizes were raffled off at the reception. Here a couple of the lucky winners display what they won.

14 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

AWARD WINNERS Dina Schultz, Society Insurance VP Sales & Marketing, accepted an award on behalf of Society. The company is celebrating its 100th year in business.

Bruce Urben, Industry Representative of the Year, with John Wickhem.

Jeff Thiel (with John Wickhem) earned the Committee Chairman of the Year Award for his work on the Marketing & Membership Development Committee.

Tom Schaetz accepted the Government Affairs Agency Leader of the Year Award on behalf of Ansay & Associates.

John Wickhem and Matt Banaszynski with Chris Hanson, Employee Benefits Agent of the Year.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 15

> IIAW ANNUAL CONVENTION | AWARD WINNERS

IIAW Executive VP Matt Banaszynski and John Wickhem with Skip Hansen (center), Recognition for Outstanding Contributions to the IIAW. The Agent of the Year Award was renamed in Skip’s honor.

Matt Banaszynksi presented the President’s Award to John Wickhem.

Ed Felchner and John Wickhem. Ed received a Lifetime Achievement Award for his dedication and service to the independent agency channel.

Jack Demski, Emerging Leader of the Year, with John Wickhem.

Matt Banaszynski, Lise Meyer Kobussen, John Wickhem, Jeff Rasmussen and Dave Dunker. Lise and Jeff received Noble Eagle Awards for their service on the IIAW Board of Directors. Lise is moving to the Executive Committee as Secretary-Treasurer. Dave is the outgoing chairman of the board and we thank him for his great work on the Executive Committee over the past four years.

16 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

EXHIBIT HALL Judie and Jerry Couri with Rob O’Neill.

Tom and Lynne Helbach with Rob O’Neill.

Robert Gudates of Philadelphia Insurance with Rob O’Neill.

Once again, Cap Wallrich just can’t seem to relax. Here he is, a ball of stress, with Rob O’Neill.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 17

> IIAW ANNUAL CONVENTION | EXHIBIT HALL

Linda Steiner (right) spins the wheel in the AAA booth with Linda Kempen.

Mark Burger in the Amerisafe booth.

Andrea Kiemen-Rognsvoog and Scott Debauch in the ACUITY booth.

Anthemâ&#x20AC;&#x2122;s Christy Engel and Dennis Richards.

The Main Street America/Austin Mutual team in the exhibit hall. From left: Karen Miller, Tom Budzisz and Clint Collins.

18 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

EXHIBIT HALL There’s a reason why she’s so happy – she’s the new owner of a Keurig personal coffee maker.

Brian Hottmann, Greg Mueller and Scott Hodgson represent QBE Insurance.

Paul Stewart, Jill Enger and Eric Duren in the Progressive booth.

Featured speaker Ryan Hanley (left) shared a laugh with Dave Fritz at the Potosi Brewing table in the VIP Lounge.

Shane Roh, Vicki Lentz and Dave Gross in the SECURA booth.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 19

> IIAW ANNUAL CONVENTION | EXHIBIT HALL

Itâ&#x20AC;&#x2122;s all business in the Gates Auto Body booth.

Aaron Marsh with Integrity team members Kris Moldenhauer and Lisa Olsen.

The photogenic team of The Hanover Group. From left: John Vose, Jon Bovee, Amy Driscoll and Bruce Urben.

Barbara Conway left the exhibit hall with $100 courtesy of Larry Jendusa and the IMT Group.

Larry Jendusa, Rich Nauman, Bruce Prince and Matt Casey of The IMT Group.

20 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

EXHIBIT HALL Jack Demski of the Emerging Leaders Committee helps out in the Social Media Lounge.

Alisha Kraus, David Grunke and Emily Witte in the WPS booth.

In the West Bend Mutual booth - Ryan Severson, David Nycz, Rachel Anderson, Tammy Rohlinger and Erin Pinney.

The representatives from Wilson Mutual listen to a visitor at their booth.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 21

> IIAW ANNUAL CONVENTION | EXHIBIT HALL

The team from Society Insurance makes it look so easy. From left: Mark Tlusty, Dina Schultz and Brad Korkow.

Michael Rabinowitz and Jenner Gohr of Trusted Choice.

Professional photographer Shanna Wolf of S.Photography snapped the headshots.

The crew from Travelers Insurance. From left: George Hogan, Deanna Walker, Julie Pichler and Ryan Young.

Bob Klessig, Maggie Klessig, Bruce Kommers and Mike Froh relax in the VIP Lounge.

22 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

Meet Your Future Workforceâ&#x20AC;&#x201D; Connect with InVEST. " !

GET INVOLVED TODAY. Investprogram.org WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 23

COVERAGE INFORMATION

IT’S A BIRD! IT’S A PLANE! NO, IT’S A DRONE!

The most rapidly expanding area of aviation is Unmanned Aerial Systems (UAS). They are known by many names — drones, Unmanned Aerial Vehicles, and Aerial Micro-vehicles, just to name a few. The Federal Aviation Administration (FAA) and insurance industry are in quick response mode to the changing environment. In this article, I will share some of the current FAA guidelines and how this affects you as a municipality or school district, and what insurance solutions are available to protect your operations. UAS have a wide ranging capabilities and applications. Some of the non-military applications include search and rescue, aerial surveys, real estate, agriculture, disaster relief, and law enforcement and security. So your school or police department want to buy one and start flying. No problem, right? Not so fast! The FAA has recently issued a Notice of Proposed Rulemaking Part 107 that establishes proposed guidelines for their operation. By federal law, any aircraft operation in national airspace requires a certificated and registered aircraft, a licensed pilot, and operational approval. Section 333 of the FAA Modernization and Reform Act of 2012 (FMRA) grants the Secretary of Transportation the authority to determine whether an airworthiness certificate is required for a UAS to operate safely in the National Airspace System (NAS). The FAA is granting case-by-case authorization for UAS to perform commercial operations prior to the finalization of the Small UAS

24 | JUNE 2015

Rule, which will be the primary method for authorizing small UAS operations once it is finalized. The expected date of this final rulemaking is late 2016. They have also established three distinct categories of UAS operations: public, civil and model aircraft operations. Public operations are those for a governmental body such as a county sheriff’s department or city police department. Civil operations include most schools and all businesses operating a UAS for a commercial purpose. Model aircraft are those operations that are for fun. For public and civil (commercial business operations), the FAA has established an online process for application of a waiver or Certificate of Authorization (COA). As of mid-April 2015, 228 COAs have been issued. Before the FAA grants a governmental agency access to COA online, the agency will be asked to provide the FAA with a “declaration letter” from the city, county, or state attorney’s

office assuring the FAA that the proponent is recognized as a political subdivision of the government of the State under Title 49 of the United Stated Code (USC) section (§) 40102(a) (41)(c) or (d) and that the proponent will operate its unmanned aircraft in accordance with 49 USC. § 40125(b) (not for commercial purposes). The COA application approval process is typically completed within 60 business days of receipt of the application, provided there are no submittal errors, missing information, or safety or airspace issues. Now that you’ve gone through the proper paperwork with the FAA you are cleared for takeoff, right? No, not quite. They have also established certain criteria for the safe operation of your UAS and for the operators of the UAS. For ease, we have shared the details from this link on the FAA’s website (faa.gov/regulations_policies/rulemaking/ media/021515_sUAS_Summary.pdf). WISCONSIN INDEPENDENT AGENT

COVERAGE INFORMATION Operational Limitations

Operator Certification and Responsibilities

Unmanned aircraft must adhere to the following specifications:

Operators would be required to:

D Weigh less than 55 lbs. (25 kg).

D Pass an initial aeronautical knowledge test at an FAA-approved knowledge testing center.

D Visual line-of-sight (VLOS) only. The unmanned aircraft must remain within VLOS of the operator or visual observer. D At all times the small unmanned aircraft must remain close enough to the operator for the operator to be capable of seeing the aircraft with vision unaided by any device other than corrective lenses.

D Be vetted by the Transportation Security Administration. D Obtain an unmanned aircraft operator certificate with a small UAS rating (like existing pilot airman certificates, never expires). D Pass a recurrent aeronautical knowledge test every 24 months.

D Small unmanned aircraft may not operate over any persons not directly involved in the operation. D Daylight-only operations (official sunrise to official sunset, local time).

D Be at least 17 years old. D Make available to the FAA, upon request, the small UAS for inspection or testing, and any associated documents/records required to be kept under the proposed rule.

D Must yield right-of-way to other aircraft, manned or unmanned. D May use visual observer (VO) but not required.

D Report an accident to the FAA within 10 days of any operation that results in injury or property damage.

D First-person view camera cannot satisfy “see-and-avoid” requirement but can be used as long as requirement is satisfied in other ways.

D Conduct a preflight inspection, to include specific aircraft and control station systems checks, to ensure the small UAS is safe for operation.

D Maximum airspeed of 100 mph (87 knots).

Aircraft Requirements

D Maximum altitude of 500 feet above ground level. D Minimum weather visibility of 3 miles from control station.

D FAA airworthiness certification not required. However, operator must maintain a small UAS in condition for safe operation and prior to flight must inspect the UAS to ensure that it is in a condition for safe operation. Aircraft Registration required (same requirements that apply to all other aircraft).

D No operations are allowed in Class A (18,000 feet & above) airspace. D Operations in Class B, C, D and E airspace are allowed with the required ATC permission.

D Aircraft markings required (same requirements that apply to all other aircraft). If aircraft is too small to display markings in standard size, then the aircraft simply needs to display markings in the largest practicable manner.

D Operations in Class G airspace are allowed without ATC permission. D No person may act as an operator or VO for more than one unmanned aircraft operation at one time. D No careless or reckless operations. D Requires preflight inspection by the operator. D A person may not operate a small unmanned aircraft if he or she knows or has reason to know of any physical or mental condition that would interfere with the safe operation of a small UAS. D Proposes a microUAS option that would allow operations in Class G airspace, over people not involved in the operation, provided the operator certifies he or she has the requisite aeronautical knowledge to perform the operation. D Pilots of a small UAS would be considered “operators”. WISCONSIN INDEPENDENT AGENT

There are many details to be aware of to fly legally in the NAS. Why bother to do all of this? Illegal operations are being sought out. At a recent seminar, the speaker was sharing his experience of watching to UASs flying around a famous lighthouse. The two operators were flying them and taking photos in an attempt to sell them to people. The FAA had been there the day prior and issued a warning to them. The next time they are caught operating without the proper certification, they will be fined and have the equipment confiscated. For many pilots, the phrase “Hi, I’m with the FAA and I’m here to help!” send chills up their spines. They > Jeff Rasmussen is a know an impromptu FAA inspection is at hand. There are obvious liability issues to be addressed with the operation of a UAS. For example, you could be flying and take out a transformer that CONTINUED ON NEXT PAGE

commercial-rated pilot and certified aviation insurance professional. He is President of Aero Insurance, LLC, an aviation specialist agency based in Madison.

JUNE 2015 | 25

COVERAGE INFORMATION

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

Our agents set us apart. For information about becoming a Partners Mutual Insurance Agent please contact Brian Martin at 262.432.3439; Martin.Brian@PartnersMutual.com or Mike Ottman at 262.432.3418; Ottman.Michael@PartnersMutual.com.

26 | JUNE 2015

IT’S A BIRD! IT’S A PLANE! NO, IT’S A DRONE! CONTINUED FROM PREVIOUS PAGE

powers your community’s financial district. Or your operations could cause someone to veer their 18-wheeler into oncoming traffic and hit a school bus full of gifted and talented school kids who are the sons and daughters of trial attorneys. The liability is excluded by virtually all commercial general liability policies. Where do you turn to for coverage? The aviation insurance marketplace is actively writing these on an aircraft hull and liability policy or a specialized UAS insurance policy. Many of the insurance companies will only offer coverage with proof of the COA application or having obtained the COA from the FAA. The hull portion of the policy would cover damage to the UAS and control unit. The cost on these can vary from $300 to $80,000 for some high-end agricultural applications. Many of the operators have opted to self-insure the hull damage. For liability, the insurance companies offer a variety of liability limits, however, some of them are only willing to offer $1,000,000 limits. These low limits are available in the $1,000 to $1,500 per year premium range. If you are considering the purchase of UAS, we can help guide you through the process and insurance. Contact us at 800.210.8242 to get your UAS cleared for takeoff! For additional information, you can go to faa.gov/uas/ or knowbeforeyoufly.org/.

WISCONSIN INDEPENDENT AGENT

MARKETING MINUTE

BUILD CLIENT LOYALTY & GENERATE REFERRALS

Setting yourself apart from the competition is not an easy task. When everyone offers the same end product, what can you do to not only retain your clients, but also attract new ones? What sets your agency apart from the one down the street? Your Secret Weapon The answer is you. You are the one thing the competition does not have. Your ability to connect and build rapport with your clients will not only ensure loyalty, but will also get you more referrals. The way to do this is to focus our attention on the prospect. What is important to them and what do they need from us? We need to become more invested than we already are in their concerns. We know what we need from them, but what do they need from us exactly? The answer will vary from person to person.

What’s your agency’s secret weapon? YOU. You are the one thing the competition does not have. Understanding the answer to these questions is key to offering unparalleled service. With careful questioning, we can uncover objections and address them, instantly putting our prospect at ease. The idea of a one-size-fits-all insurance out-of-a-box solution is just not realistic! Insurance is, after all, just a piece of paper, until you need it.

Know Your Customer’s Mindset In addition, it’s important to understand how consumers are shopping and where they are getting their information. The good thing about the Internet is the huge amount of information at our fingertips. What’s the bad thing about the Internet? You guessed it - there’s a huge amount of information at our fingertips.

28 | JUNE 2015

Consumers have learned to be very cautious with their personal information. There are several online lead generation companies that have popped up that are not consumer-friendly, resulting in many people who have had negative experiences. I certainly do not want to be bombarded by companies who just want to “sell” me something, or feel like I have to give out tons of personal information just to get back generic information. Our consumers are more informed than ever. We have the responsibility to evolve in our understanding of our clients and focus our attention on where it needs to be. The way we capture prospects has changed, and the consumer has changed. We are not just capturing leads; we are educating consumers.

Be Where the Consumers Are TrustedChoice.com has quickly become the #1 trusted resource for individuals and business owners who are researching and shopping online for insurance. If you have not done so already, take some time to browse through the 1200+ pages of content on TrustedChoice.com that have attracted so much attention. Increase your presence today by claiming your TrustedChoice.com profile, and join us in the fight to educate consumers on making the right decision and choosing an independent insurance agent.

> Amy Sanders is an account executive for TrustedChoice.com. She wrote this article for AgencyNation.com.

WISCONSIN INDEPENDENT AGENT

No waiting period. Small detail. Big difference. Some insurance companies say your customer’s power has to be out for at least 72 hours before they’ll be reimbursed for loss of business. But we both know a business starts losing money the second it loses power. That’s why our coverage kicks in immediately. If you agree that details like these can make a big difference, give us a call at 888-5-SOCIETY or visit societyinsurance.com.

WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 29

VIRTUAL UNIVERSITY - ASK AN EXPERT Q&A

VALUE-ADDED SERVICES COULD POSE AN E&O EXPOSURE I currently write a very nice tree service account, which is coming up for renewal in a couple of months. Last year, we had some stiff competition, and barely kept the renewal. I suspect that this year will be no different, so I’ve already touched base with the underwriter about renewal pricing. During the current policy, we also got very involved with helping the insured get a claim paid, and I think that will be a ‘plus’ for us come renewal time. Along those lines, we’re also working on some ideas to present to the insured about value-added services we can offer. As appreciative as he was about our help with the claim, I think he would be interested in some of the additional benefits we offer. For example, one of his concerns is his liability exposure for the 3 arborists, who drive their personal cars to job sites. We could offer to review the limits of liability on their auto insurance, as well as determine if the tree service is covered under the employee’s policy, or if an endorsement is needed. In addition, we would recommend that employees carry a liability limit that we thought was adequate. We could also furnish our insured the MVRs on any employees who drive on behalf of the company, whether they use a company auto or their personal vehicle. Any additional ideas you can offer would be appreciated. You’re right. In today’s competitive marketplace, independent agents need every advantage we can find. And service (now elevated to ‘value-added service’ in the current vernacular) is as important today as ever. While the old Big ‘I’ slogan ‘Your Independent Agent Serves You First’ has faded into history, many of us old timers wish we could bring back Raymond Burr (“Perry Mason”), who did those great commercials back in the 1980s. But a word of caution — In today’s legal environment, care should be used to evaluate which value-added services are prudent, and which could possibly lead to an E&O claim. As one example, legal and E&O experts almost universally discourage providing Motor Vehicle Reports (MVR) of employees to your insured – who is their employer. Motor Vehicle Reports, CLUE Reports, and credit reports/ insurance scores, are an everyday part of insurance underwriting. However, all are considered ‘consumer reports’ which are protected under the Fair Credit Reporting Act (FCRA). The FCRA prescribes very strict guidelines on who can access any defined ‘consumer report,’ and what can be done with it, such as sharing it with third parties. An employer probably should review the MVR of every employee who drives a vehicle on company business. Many employers also routinely require drug tests of employees and job candidates. But an insurance agency should not be the source an employer turns to for these and any other protected private information. However, there are legitimate third party providers available for such information, which is where an employer should go, not his insurance agent. A friend of mine, who is an E&O defense attorney, presented a program several years ago for a group of independent agents, which was called, ‘E&O That Comes From Being Too Helpful.’ He cited many E&O cases that had resulted from some well-intentioned value-added services.

One example dealt with MVRs. An agency CSR handled the personal insurance for a friend who was involved in a bitter child custody case with her ex-husband. The friend knew he had a drinking problem, and was concerned about her kids being in the car with him. The CSR offered to pull his MVR, which listed two DUI citations. The CSR gave the MVR to her friend, who gave it to her attorney, to support her request for a restraining order against the husband having the kids in his car. During cross-examination, the source of the MVR came to light. The ex-husband successfully sued the agency for $250,000. As to the agency reviewing the auto insurance of the arborists, I frankly have a concern that this, too, is unwise. Many employers do set insurance guidelines – such as minimum required limits of liability – for employees who drive, but in my view, they should obtain evidence of insurance from each employee. Also, my preference would be that the agency not recommend “a liability limit that we thought was adequate.” Lastly, your successful efforts to help your insured with his claim are laudable, and possibly risky. In my 30+ years working with independent agents, I’ve always felt that collaborating with insureds and insurers to get legitimate claims paid fairly was one of the hallmarks > Mike Edwards heads of the independent agency system. At the same time, an insurance training I know from an E&O standpoint that any type of firm in Atlanta, GA. ‘service activity’ with insureds carries some risk of an He has previously adverse outcome. And the current focus by nearly every served as the Director of Education for the business to provide value-added service only magnifies Independent Insurance the potential risk of something going wrong. Agents of Louisiana.

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

30 | JUNE 2015

WISCONSIN INDEPENDENT AGENT

totally

WWW.IMTINS.COM

WEST DES MOINES, IOWA • 800.274.3531 • WWW.IMTINS.COM

Since 1921, Pekin Insurance® has committed to go beyond.

Join our network of independent insurance professionals and discover how easy it is to do business with us! In all we do, we are dedicated to going

Beyond the expected.®

800-322-0160, Extension 2394 www.pekininsurance.com

CP CU

Pekin, Illinois 61558

2505 Court Street

TOM BUSS Extension 3037

MIKE TIETZ Extension 3081

DAVE GANSCHOW Extension 2178

Like us on Facebook at Facebook.com/PekinInsurance!

AUTO • HOME • BUSINESS • LIFE • HEALTH WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 31

CONTINUING EDUCATION , & $ ) $% + "! # " % ! 45 / ! ! 47& 4237 " % ! 45* # ! , ! ! 47* * ! - ! " %. % :'52 + 4'52

$( * "! # " % ! 39& 4237 " % + #( ( " % 34'22 + 6'22

! $ ( "! # " % ! 3:& 4237 " % + #( ( " % :'22 + 32'22 ' /-.0 , $ ) "! # " % ! 45& 4237 " % + #( ( " % 34'22 + 5'22 $ " ! ( "! # " % ! 47& 4237 " % + #( ( " % :'22 + 32'22 ! ! ! ( "! # " % ! $ ;& 4237 " % + #( ( " % ;'22 + 33'22

$ " ) "! # " % ! 3:& 4237 " % + #( ) " % 34'22 + 5'22 $ ) "! # " % ! 45& 4237 " % + #( ) " % 34'22 + 5'22

! $ ) "! # " % ! $ 35& 4237 " % + #( ) " % 34'22 + 5'22

, ) * . , /+ ) "! # !! " % ! $ 38& 4237 " % + #( ) " !% :'22 + 33'22 - 3. 34'22 + 5'22 - 4.

! , ! ) "! # " % ! $ 39& 4237 " % + #( ) " % :'22 + 33'22

.- ! # " ) "! # " % ! $ 42& 4237 " % + #( ) " % 34'22 + 5'22

0 ! ( "! # " % ! $ 37& 4237 " % + #( ( " % 34'22 + 4'22

$ &

ERRORS & OMISSIONS

MIXED SIGNALS

Proceed with caution when advocating for your clients When a carrier denies coverage for a customer’s claim, your natural reaction may be to advocate for coverage by pleading with the carrier to cover the claim. But while this may seem like a natural extension of the service agents provide to customers, advocating on behalf of the customer on claims can create additional problems for you in the long run. If you advocate for coverage, do so cautiously— or risk facing an E&O claim in the near future. When advocating for coverage, an agent may make statements that could be used against the agency later while attempting to shift fault away from the policyholder. In doing so, they may unwittingly place some fault on the agency for any confusion regarding coverage. Carriers seem less hesitant than in the past to seek indemnity from agents after paying questionable claims, asserting that “but for” mistakes made by the agent, the carrier would not have paid the loss or issued the policy at all. They

Advocating for a customer on your own could simultaneously jeopardize the agency’s E&O coverage and increase the likelihood of liability against the agency. WISCONSIN INDEPENDENT AGENT

might use statements an agent makes while advocating for coverage against the agent in an indemnity action. Conversely, if the carrier maintains its coverage declination, the policyholder may file suit against the agent for lack of coverage and use the agent’s own words against him or her. This is especially

important when statements are in writing. Advocating on behalf of a customer may also create E&O coverage issues for the agent. E&O policies typically require that an agency report potential claims when it becomes aware of a development that could result in a claim against it. If coverage for the customer’s claim comes into question, an E&O claim potentially exists and requires reporting. Providing documents, admitting liability or giving a recorded statement without reporting the potential E&O claim may also violate the E&O policy. Advocating for a customer on your own could simultaneously jeopardize the agency’s E&O coverage and increase the likelihood of liability against the agency. Your E&O carrier would likely prefer that you let it review the situation and work with you to determine whether to advocate for coverage for the policyholder, as well as the best way to do so without prejudicing your potential future defense.

> John Nesbitt, J.D., is an Assistant Vice President, Claims Specialist with Swiss Re Corporate Solutions and handles claims out of the office in Overland Park, Kansas.

JUNE 2015 | 33

COMMENTARY FROM COUNSEL

CYBER LIABILITY: KNOW YOUR COVERAGE OPTIONS Cyber liability is the new frontier for insurance coverage. Nearly every company using the Internet has a risk of incurring cyber liability and should be aware of the types of policies available to make informed choices about their policies. The Problem No doubt you have seen frequent, seemingly constant, news about the massive data breaches that have occurred recently— hundreds of millions of customer accounts have been compromised when retailers (large and small) have had their computer systems hacked. Target, the most infamous data breach victim, recently agreed to pay $10 million dollars to settle a lawsuit brought by customers whose data was compromised. Most cyber criminals and hackers steal data to further other criminal activity—credit card data is frequently stolen and then sold on the black market. However, the motive can be more sophisticated—and even more detrimental to an unwitting company or individual. Some hackers target valuable intellectual property or other competitive business information and there have even been reports of cyber criminals modifying or

34 | JUNE 2015

falsifying business records and data. While the risk of a data breach constitutes a huge problem for companies and individuals alike, it is just the tip of the iceberg when it comes to potential sources of cyber liability. Hacking can interrupt businesses and can cause lasting damage to reputations. Invaluable intellectual property can be stolen and disseminated before a company is even aware it is gone.

the Internet. Contrary to popular belief, it’s not just the big multi-national companies at risk—a study conducted by the Ponemon Institute concluded that a company with less than 10,000 records is more likely to be hacked than a firm with more than 100,000 records because smaller firms are assumed to have weaker defenses against hackers and cybercrime.

The numbers are harrowing: recent reports estimate that over 95 percent of Fortune 500 companies have been impacted by hacking, cybercrime, malware, and other cyberattacks, but most of these companies do not even realize they have been targeted until after they are contacted by authorities. The Center for Strategic and International Studies estimated that the likely annual cost to the global economy from cybercrime is more than $400 billion. This number represents approximately 15-20 percent of the total value created by

It is critical to understand the nature of your clients’ businesses, their operations, and the level of risk they are willing to tolerate in order to fully apprise them of their coverage options and so that they can make informed choices as to the policy or policies right for them.

Cyber-Insurance Most commercial general liability policies expressly exclude coverage for cyber liability. However, several types of coverage exist that provide coverage for different cyber liability WISCONSIN INDEPENDENT AGENT

COMMENTARY FROM COUNSEL scenarios. Increased competition in the marketplace for cyber-insurance policies has made coverage more affordable than ever. First party coverage. First-party cyberinsurance policies are designed to cover direct losses incurred by companies due to cyber-attacks, hacking, and other types of cyber-crime. For example, these policies can be structured to cover business interruption, destruction of data and property, loss of critical infrastructure, and even reputational harm. Specifically, this coverage can include

Business interruption coverage. Hacking can seriously interfere with a business’s day to day functions. For example, when a website is shut down for any length of time, or a company’s orders or shipping data is lost, it can take a great deal of time, money and effort to get things back on track. Third-party claim coverage. This classic coverage, adapted to cyber-liability scenarios that arise when personally identifiable information (often referred to as PII) is compromised, but several other contexts can

regulatory bodies. These investigations can be expensive and distract from a business’s operations. Companies in heavily regulated industries (such as health care) may be particularly interested in this type of coverage. Other types of coverage. Some specialty types of coverage may also be of interest to your clients, depending on the specific nature of their business and their risk tolerance. For example, extortion insurance may be attractive to clients who maintain highly sensitive data that could be hacked and exploited.

Added Benefits of Cyber-Insurance

credit monitoring costs for individuals whose information is compromised, fraud insurance, and the costs of forensic and computer auditing to determine the scope of the damage. Coverage for computer program and data recovery and critical infrastructure loss can be especially important for smaller businesses that may not have their own secure backup systems. While this type of coverage tends to be expensive, it may be crucial depending on the nature of a business and the information being stored.

give rise to third-party liability. Costs can also be incurred when data is stolen from thirdparty systems, the defacement of a website, and other types of intellectual property rights infringement. It is important to fully understand where data is stored, who has access to the data, and the security of the data to determine the level of coverage necessary for this type of claim. Regulatory claims. Some policies offer coverage for investigations conducted by

In purchasing a cyber-insurance policy, a company’s methods and practices may be analyzed during the underwriting process. This process can highlight areas where a company’s security can be improved—possibly reducing the risk of cyber-attacks or helping to mitigate the damage caused by an attack once it occurs.

Conclusion Cyber risk is on the rise and, unless the Internet turns out to be a passing fad, it will only continue to grow. Now is the time to develop a comprehensive understanding of the types of cyber insurance available so that you can > Josh Johanningmeier is the IIAW’s General advise your clients Counsel. Call the Legal as to their coverage Services Hotline at (877) options. 236-1669.

ϳϬй ŽĨ ĂŐĞŶĐǇ ŽǁŶĞƌƐ ĚŽŶ͛ƚ ŚĂǀĞ Ă ƉĞƌƉĞƚƵĂƟŽŶ ƉůĂŶ Ͳ >Ğƚ ZK Zd^KE Zz E Ğ WĂƌƚ KĨ zŽƵƌ &ƵƚƵƌĞ You’ve built a successful agency and book of business but don’t have someone to take it ŽǀĞƌ ǁŚĞŶ ǇŽƵ ƌĞƟƌĞ͘ tŚĂƚ ĚŽ ǇŽƵ ĚŽ͍

Plan your future with Robertson Ryan & Associates͘ Ǉ ũŽŝŶŝŶŐ ŽƵƌ ƚĞĂŵ ŝƚ ĂůůŽǁƐ ǇŽƵ ƚŽ͗ ͻ ͻ ͻ ͻ ͻ

Keep your book Remain a trusted advisor to your clients to give them peace of mind ŽŶƟŶƵĞ ǁŽƌŬŝŶŐ ƵŶƟů ǇŽƵ ĚĞĐŝĚĞ ƚŽ ƌĞƟƌĞ Find the right buyer for your book within Robertson Ryan to maximize your return Ğ ŝŶ ƚŚĞ ϯϬй ƚŚĂƚ ŚĂǀĞ Ă ƉůĂŶ

&Žƌ ŵŽƌĞ ŝŶĨŽƌŵĂƟŽŶ ĐĂůů 'ĂƌǇ ƵƌƚŽŶ͕ ŚŝĞĨ KƉĞƌĂƟŶŐ KĸĐĞƌ͕ Ăƚ ϰϭϰ͘ϮϮϭ͘Ϭϯϴϲ͘ ůů ĐĂůůƐ ǁŝůů ďĞ ŬĞƉƚ ŝŶ ƚŚĞ ƐƚƌŝĐƚĞƐƚ ĐŽŶĮĚĞŶĐĞ͘ WISCONSIN INDEPENDENT AGENT

JUNE 2015 | 35

WS E N E H T N I S R E B M ME MIIAB Names Beaudin Company Representative of the Year Integrity Insurance announced that the Minnesota Independent Insurance Agents and Brokers Association (MIIAB) named Cathy Beaudin as Company Representative of the Year. Cathy is the Field Sales Director at Integrity. The MIIAB is the largest professional association in Minnesota that represents more than 5,000 independent insurance agencies throughout Minnesota. Beaudin was nominated by MIIAB members and recently accepted the award at their annual convention in Minneapolis. “We’re proud to recognize Cathy for her outstanding service benefiting independent insurance agents and the entire industry,” said Vance Prigge, MIIAB President. “She is hardCathy Beaudin working, hands-on and always available to assist independent insurance agents in analyzing risk for the customer and recommending coverage solutions.”

to receptionist, underwriting technician, transportation underwriter and transportation fleet underwriter. Prior to J.M. Wilson, Mary was a stay-at-home mom raising three children and worked part-time for Meijer Supermarkets. The company also announced the addition of Rudie Heling to their Madison office as Property and Casualty Underwriter. Rudie’s responsibilities include quoting Stacy Juelfs Rudie Heling new and renewal accounts, issuing policies for a wide variety of commercial property and casualty risks, and building relationships with independent insurance agents in Wisconsin. To learn more about J.M. Wilson, please visit jmwilson.com.

Juelfs Approinted Regional Director of MSA’s Western Region

The Main Street America Group has appointed Stacy Juelfs as its The Company Representative of the Year award is presented to the Regional Sales Director for the super-regional property/casualty individual who reflects professionalism upon the industry, develops insurance company’s Western Region, headquartered in Maple and communicates an in-depth knowledge of products available to the Grove, Minn. agency system. “Stacy, who has done a tremendous job supporting her “Cathy is a tremendous asset to Integrity and our agency partners,” independent insurance agent-customers since she joined Main said Scott David, Integrity’s VP of Sales & Marketing. “We’re thrilled Street America in 2013 as a field marketing representative, will MIIAB has recognized her commitment to the industry. She has built be a key asset to our region’s field operations function in her a successful career at Integrity over the past 20 years with relationship new management role,” said Tiffany Daly, president of Main building and agency service as the foundation.” Street America’s Western Region. “Stacy will be leading a team of our Western Region field representatives and help manage the To learn more about Integrity Insurance, please visit expansion of our independent agency distribution network in the integrityinsurance.com. region.”

J.M Wilson Announces Promotion, Hire

Mary Ricks

J.M. Wilson is proud to announce the promotion of Mary Ricks as Senior Fleet Transportation Underwriter. Mary is responsible for evaluating transportation fleet submissions for acceptability to company underwriting criteria, quoting new and renewal transportation fleet business, binding and servicing new and existing policies, and building relationships with independent insurance agents and company underwriters.

Mary joined J.M. Wilson in 2003 as a scanner before being promoted

36 | JUNE 2015

Main Street America’s Western Region is spread across the Midwest, Southwest and Pacific Northwest regions of the United States. States include Arizona, Idaho, Indiana, Michigan, Minnesota, Montana, Oklahoma, Oregon, Nevada, South Dakota, Utah, Washington and Wisconsin. Juelfs has extensive property/casualty industry experience. Prior to joining Main Street America in 2013 as a business management executive for its Montana and Western South Dakota territories, she held sales and management roles at The Travelers and Payne Financial Group. To learn more about the Main Street America Group, please visit msagroup.com. WISCONSIN INDEPENDENT AGENT

Our Role in Your Office We’re specialists. ! ! !

Small- to mid-sized “Main Street” accounts Workers’ compensation “lead line” Complementary coverages in select states

We’re secure. ! !

Part of Warren Buffett’s Berkshire Hathaway A+ (”Superior”) A.M. Best Company rating

We’re growing. ! ! !

Written premium of $500 million Doubled in size in recent years Active in 39 states (many with our BizGUARD Plus BOP product)

Berkshire Hathaway GUARD Insurance Companies can be a key carrier resource in your office. We have a well-defined focus that has

We’re competitive. ! ! !

Accurate pricing (that can be sold!) Tiered workers’ comp rate structure Other standard and unique special discounts

We’re fast and easy. !

! !

Same day (often samehour) turnaround on workers’ comp quotes On-line rating application Extensive Service Centers

Remember: We’re the quote you could come up against . . . so why not join us?

enhanced the income stream of countless agencies across the country. Plus . . . our longer-range vision is to bring one-stop insurance shopping to smaller business owners nationwide. We’re growing and hope you are interested in joining us! We currently have agency appointments available.

To learn more, visit: www.guard.com/apply

Berkshire Hathaway

GUARD

Insurance Companies

FOOD FOR THOUGHT DOW JONES ORIGINS

Financial reporters Charles Dow and Edward Jones first published the Dow Jones Industrial Average on May 26, 1896. At that time, the index followed 12 companies that represented the largest in each sector of the U.S. stock market. The first published value of the Dow Jones was 40.94, which was calculated by taking the average market price for the 12 companies. The index was a way for Dow and Jones to report the overall health of the stock market to investors.

Dow

The 12 original companies that represented every segment of the market at the time, except railroads and transportation, were: American Cotton Oil, American Sugar, American Tobacco, Chicago Gas, Distilling & Cattle Feeding, General Electric, Laclede Gas, National Lead, North American, Tennessee Coal Iron & RR, U.S. Leather and United States Rubber. General Electric is the only company in Jones existence in its original form. Source: Investopedia.com

A WISCONSIN CONSERVATION LEGEND

Michael B. Olbrich—Madison attorney, civic luminary and founder of Olbrich Park and Botanical Gardens (olbrich.org), the University of Wisconsin–Madison Arboretum (uwarboretum.org) and other parks and recreational facilities in the Madison area— was widely recognized for efforts to promote progressivism and the reform agenda of Wisconsin’s “Fighting Bob” La Follette, but his contributions as a conservationist were often overlooked. In the 1920s, Olbrich and Paul E. Stark of the Madison real estate company acquired the land that became the first six parcels to form the University of Wisconsin Arboretum. Olbrich also worked with Stark to acquire the land along the shoreline of Lake Monona that eventually became Olbrich Park. His conservation efforts gained the attention of John Nolen and Aldo Leopold, and in the last 15 years of his life, he made an immense contribution to the preservation and cultivation of Wisconsin wildlife and wild things. Source: Wisconsinhistory.org

THE LONE RANGER, LONG SINCE RETIRED, MAKES AN UNPLEASANT DISCOVERY.

Crash course in service excellence.

Help clients through the stress of an accident with AAA Accident Assist . One call brings AAA roadside assistance to their crash site, sets the stage for hassle-free repairs, and reserves a rental car for their immediate use. And you made it happen.

Contact Heidi Nienow today to learn more. (608) 828-2614

hqnienow@AAAwisconsin.com

It’s just one of the powerful tools AAA Independent Insurance Agents enjoy. IE-0011

38 | JUNE 2015

Insurance underwritten by Auto Club Insurance Association or Auto Club Group Insurance Company.

WISCONSIN INDEPENDENT AGENT

CE VIDEO

Trusted Choice

PRSRT STD US POSTAGE

Independent Insurance Agents of Wisconsin

PAID

MADISON WI PERMIT NO. 2506

725 JOHN NOLEN DRIVE MADISON, WI 53713 ADDRESS SERVICE REQUESTED

Expect big things in workers’ compensation. Expect to save a third of your clients 30% or more. Most classes approved, nationwide. For information call (877) 234-4450 or visit auw.com/us.