Wisconsin Independent Agent | March 2023 Magazine

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Simple solutions for complex times INSURANCE

CONTENTS

COVER STORY:

Make the Most of Your Big 'I' Membership

Being an IIAW member means you're also a Big 'I' member! You have access to entire suite of programs and resources the Big 'I' provides, covering all areas of an agency's operations. For a full list of your Big I member benefits, visit iiaw.com.

PAGES:

8-13

IIAW BOARD SPOTLIGHT...................................................6

Meet Kash Motlani

RISKY BUSINESS......................................................................14

Emailing Insurance Documents to Clients? Read This!

PERSONAL LINES...................................................................18-19

An Agent Call to Action: Underinsurance

AGENCY OPERATIONS........................................................21

Quiet Hiring: The Newest 2023 Workplace Trend

COMMERCIAL LINES............................................................22-23

Insurers Increasingly Imposing Warranties and Safeguards on Commercial Property Policies

HUMAN RESOURCES..............................................................26

The Importance of an Employee Handbook

MARKETING................................................................................28

Email Marketing for Insurance Agents: How to Get it Right

MEMBERS IN THE NEWS.......................................................30-31

AGENCY MANAGEMENT.......................................................32-33

Go It Alone: 3 Questions to Consider Before Starting Your Own Agency

GOVERNMENT AFFAIRS........................................................34

Gov. Evers State Budget Rejected By Republicans

COMMENTARY FROM COUNSEL.....................................37

Website Risk - Live Chat and Other Class Action Quicksand

FOOD FOR THOUGHT.............................................................39

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 and Director of Risk Management 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 | Education & Events Coordinator and HR Business Partner 608.256.4429 • diana@iiaw.com

Ali Smeester | Accounting Specialist 608.256.4429 • ali@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.

Making insurance GENUINE

SECURA isn’t like other carriers, and we’re proud of that. We put the independent agent and your customers - first.

Our independent agents value the long-term partnerships they find with SECURA and our commitment to quality coverage and service. Here are just a few of the reasons they love to work with us.

• Genuine people – passionate, experienced associates committed to excellence and service, both for our agents and policyholders

• Expansive product portfolio – Broad coverage for Commercial, Personal, Farm, Agribusiness, and Specialty Lines

• Easy to do business – Committed to agent-focused solutions to help you grow your business

• Highly rated – Recognized by AM Best as A (Excellent) and Ward’s 50, not to mention high marks from agents and policyholders

• Motivated by mutual success – We meet our policyholders’ needs best by partnering with experienced, independent agents

Competitive coverage options

• Commercial Lines is SECURA’s largest business unit. Our expanding appetite for contractors, manufacturing, retail, restaurants, and numerous other markets offer coverage to fit your clients’ needs.

• Specialty Lines provides agents and prospects with an admitted carrier option for difficult-to-place business. Clients range from fitness centers to food trucks and special events to nonprofits.

• Farm Lines taps on the hands-on experience of former farm kids to underwrite farm risks of all sizes.

• Agribusiness Lines expands beyond traditional farms to offer coverage for unique ag businesses, such as farm retail, food products manufacturing, and contractors.

• Personal Lines coverage options include our MILE-STONE® home and auto package policy, which offers the added security of Roadside Rescuer℠ and Travel Rescuer℠.

MEET THE BOARD

Meet Kash:

• Standup Comedy - I love standup comedy and I go to several comedy clubs around the Midwest each month to catch the latest set.

• Cologne - I have more than 50 bottles of cologne and I pick them depending on the season, event, what I'm wearing and what I have planned for the day.

I was raised in and currently live in Oak Creek, WI. I'm single, no kids, I have two sisters (one older, one younger) and my parents used to own a tool and die company.

Kash is one of the newest members of the IIAW's Board of Directors, joining the board in November 2022. Over his years involved in the Association, he has been an engaged member of the IIAW's Emerging Leaders and he was also named the 2019 IIAW Marketing Rep of the Year.

We recently sat down with Kash to learn more about him.

Tell us a little about yourself: My hobbies include travel, standup comedy and cologne.

• Travel - I randomly fly to different states and back in the same day for food. Philly for cheesesteaks, Fort Worth for Brisket and Detroit for burgers.

I graduated from MATC with a degree in Business Management. In late 2022, I was promoted to the Director of Sales PL/CL for Ansay & Associates. I'm a minority owner of a sports franchise, and I frequently name my vehicles (Truck Norris, Lilo, Stitch).

What do you hope to accomplish while on the IIAW Board of Directors?

During my time on the Board, I hope to learn as much as possible, build meaningful relationships, share my perspective and help to increase communication between leaders of the industry and the front lines.

What do you see as the biggest challenge facing the IA channel currently and in the future?

I think the biggest challenge facing the IA channel is also our greatest opportunity and that is the ownership and utilization of data. Ultimately, I think this will improve the industry as we continue to be good stewards of this data.

Any life advice or favorite quote? "Control the Controllables"

A book you recommend people read?

Smart Calling by Art Sobczak

Non-insurance prediction for 2023?

The Milwaukee Bucks will win another Championship.

Kash Motlani Director of Personal Lines Sales, Ansay & Associates

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

EMBRACE Your INDEPENDENCE.

Build the Agency You Want.

BIG “I” PROFESSIONAL LIABILITY

Access the largest and most stable insurance agents E&O program in the nation. The Big “I” Professional Liability Program offers not just a policy, but a comprehensive program for insurance agents We’ll help you protect your greatest asset--your business.

BIG “I” RETIREMENT SERVICES

Use the Big “I” MEP 401(K), a multiple employer plan, to not only lower your costs but maximize service, consulting, education and more.

BIG “I” EMPLOYEE BENEFITS

Find full service group benefits for your agency including life, short-term and long-term disability, dental and vision.

CONTRACT REVIEWS

The Big “I” office of general counsel reviews agent/carrier contracts and provides guidance to members to help with carrier appointments.

AGENTS COUNCIL FOR TECHNOLOGY

The industry’s leading technology experts provide blueprints on disaster planning, cyber security, customer experience and other emerging trends to help your agency.

Trusted Choice®

Only one brand unites more than 23,000 independent agencies—Trusted Choice®.

Together we reach more customers, so they understand the importance of using an independent agent for their insurance needs. Marketing is easier when you lean on our free customizable content and reimbursement program.

WEBSITE AND SOCIAL MEDIA HELP

Our Trusted Choice® brand experts will review your agency website and social media outlets and provide a formula to make them more user-friendly and increase traffic.

DIGITAL REFERRALS

TrustedChoice.com features all Big “I” members for FREE. And with 8 million consumer visits you’ll want to customize your advantage profile for your lines of business and subscribe for exclusive referrals. Be where consumers turn to find independent agents.

You’ve made the choice to build your agency on independence, but that doesn’t mean you’re alone. When you belong to the Big “I,” we do some of the heavy lifting so you can focus on what’s important—running your agency.

Grow the Agency of Your Dreams.

BIG “I” MARKETS

Find more than 30 top-tier markets at your fingertips including affluent and standard homeowners, bonds, commercial auto, commercial package policies, community banks, cyber liability, flood, habitational, nonstandard homeowners and real estate agents E&O. There are no fees, no volume commitments, and you own your expirations.

BEST PRACTICES

Our research helps agencies boost productivity and refine operations by benchmarking the nation’s top agencies in 6 different revenue categories. Our comparison tools and webinars will help your agency grow.

BIG “I” HIRES

Find and keep the right employees with Big “I” Hires. Download job descriptions and interview resources to help you hire a producer or CSR, or let our partner, Ideal Traits, recruit top candidates for you.

We’ll Help You Thrive

INDEPENDENT AGENT MAGAZINE

.

The award-winning publication hits your desk monthly with insights, analysis and trends to help you work smarter and learn from your peers.

VIRTUAL UNIVERSITY RESEARCH LIBRARY

Find answers to tough insurance questions on the Virtual University, offering in-depth information on commercial and personal lines, certificates of insurance, life-health, forms and more.

ASK AN EXPERT

When you or your staff has a coverge question, where can you turn? Our 50 experts stand ready to answer your complex insurance questions.

DIVERSITY COUNCIL

Prepare your agency to serve diverse markets through our research, education and resources. In 2020, the Big “I” will host the LevelUP Diversity and Inclusion Conference.

INVEST

How does the next generation learn about careers in insurance? InVEST. Tap into our free education materials and internship guide to attract young professionals to the industry and find your next employee.

YOUNG AGENTS

Our national and state young agent groups offer sales and leadership training and a network for newer employees and agency owners.

LEGISLATIVE AND REGULATORY ADVOCACY

Recently, the Big “I” spearheaded tax relief for passthrough entities and C-corporations, saving money for independent agents everywhere. If you sell crop or flood insurance, know that the Big “I” team is on the front lines working to protect programs important to you and your clients.

BIG “I” LEGISLATIVE CONFERENCE

When you want facetime with legislators in Washington, the Big “I” makes it happen. Each spring, agents hold approximately 400 meetings with legislators and their staff, placing your issues front and center.

Trusted Choice®

MARKETING REIMBURSEMENT PROGRAM 2023

All Big "I" members can access up to $1,000 in funds to offset the cost of marketing and customer experience improvement expenses.

Co-brand with the Trusted Choice logo

Add the Trusted Choice logo to any consumer facing ads or marketing to be eligible.

Members can choose from traditional options like billboards and print ads or from digital options like social media and streaming service ads.

TechCompare Vendors

Members can choose to use funds towards marketing or customer experience improvements with any of Trusted Choice's Preferred Vendors that are listed on the TechCompare site and labeled MRP eligible.

Services include SEO, Websites, Automation, Digital Advertising and more.

All members have access to up to $1,000. Reimbursements are made at 50% of final cost. Members can utilize funds in one or multiple transactions. Program is first come, first served until funds have been depleted

For full program details or to submit a reimbursement request visit trustedchoice.independentagent.com/MRP today!

EMAILING INSURANCE DOCUMENTS TO CLIENTS? READ THIS!

In 2000, the Electronic Signatures in Global and National Commerce Act (E-Sign Act) was signed into law and allowed for the use of electronic records and signatures to satisfy any legal requirements to provide information in writing. It is important to remember even 23 years later, that the information and signatures are only accepted if the consumer has consented to receive this information electronically and has not declined or withdrawn their consent.

The million-dollar question: have you obtained e-delivery consent from your customer?

As an agency, if you are sending policies, notices, endorsements, or obtaining electronic signatures on documents, consent for electronic delivery must be on file for that customer. Furthermore, documents such as termination of health insurance or benefits of life insurance (excluding annuities) may not be provided solely via electronic delivery.

What is included in the electronic delivery consent? The customer must be provided clear statements advising them of the following*:

1. The right or option for the consumer to receive documents in paper form;

2. The right to withdraw the consent to electronic delivery and any conditions, consequences, or fees associated with such withdrawal;

3. A description of the procedures that the consumer must follow to withdraw the consent to electronic delivery and to update information needed to contact the consumer electronically;

4. A description of how the consumer, after consenting to electronic delivery, may obtain a paper copy of any record and whether any fee will be charged for such a copy;

5. A statement regarding whether the consent applies only to a particular transaction or category of documents;

6. A description of the hardware and software requirements for access to and retention of documents delivered electronically.

It is essential to remember that the customer must confirm in writing their consent to electronic delivery. This means you must obtain a signature on an electronic delivery consent form; not an email stating consent.

By obtaining electronic delivery consent, the agency can operate more efficiently and oftentimes save money on printing, mailing, and processing costs. More customers are preferring electronic communications, so it is important to not only receive consent but to provide customers with guidance and information on how the agency will be communicating.

If you would like your current electronic delivery consent form reviewed or need assistance in creating a consent form for your agency, please contact IIAW Vice President, Mallory Cornell, at mallory@iiaw.com.

*Information obtained from the “Procedure for Electronic Delivery of Insurance Documents Pursuant to the Federal eSign Act” Big I Agents Council for Technology, May 14, 2021.

> Mallory Cornell, Vice President, IIAW

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

Ali Smeester Agency Accounting Specialist ali@iiaw.com

We’re sure other networks are great.

But do they come with all the extras?

Aggregation? Check. National carrier contracts? Check. Basic networks can do a lot for an agency. Keystone does all that and more.

Learn more about how Keystone can beef up your agency offerings

AN AGENT CALL TO ACTION: UNDERINSURANCE

In the aftermath of the Marshall Wildfire in Boulder County, Colorado, the Denver press has continuously explored these questions from the insured survivor's perspective, but there has been little discussion from the insurance industry perspective regarding this issue. The purpose of this blog is to start a discussion on the continuing perceptions of underinsurance especially after natural disasters to determine if there are changes needed to better estimate the replacement costs on both personal and commercial policies that agents sell to our customers.

Insurance to Value (ITV) is a basic concept which many insurance personnel are trained at the onset of their careers. Although counselled that we are not appraisers, adjusters, agents, and underwriters were provided with training and valuation tools aka costimators which seem to work very well over the years. Based upon conversations with many front-line agent/brokers assisting with their customer's valuations, these tools do not change in their basic structure and do not regularly leave their customers underinsured. In retrospect, were they just lucky because they did not face many total losses or did their continual efforts to monitor and adjust the replacement cost values (RCV) help achieve those excellent valuation outcomes?

Bottom line, this methodology and training has worked quite well over the past fifty years to assist customers with valuing RCVs. Many agents have experienced occasionally competitor agents / companies using similar tools to undervalue required limits which permitted them to underbid higher, more correct valuations. While this behavior still exists, it does not occur as frequently as it once did and, in the new insurance marketplace used to occasional natural catastrophes, it presents another opportunity for the agent to advocate protection over lower prices.

Why does this subject matter to the author? When he was embarking into semi-retirement, he was asked to serve as a volunteer insurance consultant to the Waldo

Canyon wildfire recovery team, Colorado Springs

Together (CST) because he was not directly contracted with any of the insurers who faced 347 total losses and some additional damaged properties. Starting that volunteer effort, he was initially concerned about the potential for underinsurance based upon other insurance catastrophes, local rumblings in the local press, and chattering in social media. This recovery process was a huge learning experience in many different aspects of how insurance policies deliver in a major natural disaster, but happily the issue of underinsurance did not prevent one of the most complete major wildfire recoveries experienced by a large urban fire. His early fears of underinsurance became unfounded as the Waldo survivors, their builders, and their companies navigated through the many different coverage “buckets" ie debris removal, law and ordinance, extended replacement, inflation guard, and landscape allowances which helped to close most rebuild gaps. In fact, the most extreme Coverage A dwelling underinsurance situation that he encountered (approximately 40%), the policy holder was able to close the gap with the above additional coverages and their company's endorsement which doubled the extended replacement and law & ordinance limits when it resulted from a declared natural disaster.

• What were the lessons learned from his CST experience? There are too many stories to recount in this short piece, but the following were most significant:

• A community-based recovery team that allows for many segments of the local community to participate in the recovery goal is an important attribute to a quick and complete recovery.

• The recovery team needs a strong leader to keep the team focused on the main task – rebuilding the neighborhood.

• A community and team focused on minimizing politics, controversy, and adversarial relationships among any of the stakeholders is a critical component of a solid recovery.

• The encouragement of the survivors to better understand their policies and limits as well as the insurance claims process facilitates quicker resolution of any outstanding issues.

• Local economic conditions can be a positive driver of the recovery. The Waldo Recovery occurred during the end of the 2008 recession, so labor and supplies were more readily available to the recovery.

The recovery team had a self-imposed one-year recovery time limit because virtually all the pieces for the Mountain Shadows Neighborhood recovery were in place by the end of the year. Survivors, neighbors, the city, and team members were pleasantly surprised that, despite the early alleged obstacles, an amazing outcome was collectively achieved.

After such a positive recovery experience, he followed many other wildfire recoveries both in Colorado and other areas in the United States. Interestingly, he is not aware of another public-private recovery team approach as done here in Colorado Springs. In most cases, it appears that recoveries are driven by the local governments which tend to be slower due to the more bureaucratic approach that government must take to conduct all its business. Why does this matter in a discussion of underinsurance? Slow recoveries exacerbate the effects of underinsurance.

• As Boulder County faces its recovery from the Marshall Fire, the topic of underinsurance seems to dominate its early recovery preparations. Certainly, the recovery challenge is more than three times greater than the Waldo Recovery which will certainly further slow the recovery based solely on the scale of recovery. Without being imbedded in the Marshall recovery team, it is difficult to fully access the extent of the underinsurance at this time although there are some early warning signs of potential concern:

• The limited supply of builders needed to rebuild all the destroyed residences may be a driver of higher replacement/reconstruction costs;

• The unprecedented increases in the local building costs over the past two years that may not have yet been incorporated into the costimator valuation processes;

• Initial indications of added building code requirements needed to rebuild are very concerning and would not have been included in any costimators;

• Debris removal delays which will slow the actual reconstruction;

• Unusual supply chain challenges;

• Popular insurance advertising that promotes price competition v coverage adequacy;

• Other natural catastrophe competition for resources ie Kentucky wildfires, California wildfires, Louisiana

hurricanes, etc;

• Less streamlined rebuild permitting processes; and

• The continual reminder of underinsurance which creates more negativity among the survivors that their recovery will be impossible.

Going forward, it is critical for the insurance industry to take the lead in starting to diagnose any shortcomings in the procedures and systems for both valuing properties, as well as best practices to streamline recoveries. As we know, insurance coverages/limits may differ among the homeowners policies that different insurance companies write. Perhaps, it is also time to realize that there may be different valuation needs for natural disasters. Of course, the biggest hurdle is to overcome the average consumer's belief “it can't happen to me" paradigm.

What can front line agents do to start or aid this discussion? Here are some initial first steps:

Identify either personal or commercial accounts where you think whatever costimator being used that may either under or over insure.

1. Identify any differences within your agency on how real property valuations are done and re-train as necessary so there are consistent processes.

2. Check with local claim departments and construction businesses to determine what the going rate is to build in your community/region.

3. Double check a sampling of real property valuations periodically to make sure they are responsive to local building costs and national inflation and supply line conditions.

4. Refer any valuations which are either over or under valued to the insurer and ask them to check to make sure that they agree with your valuation and have continuous conversations regarding insurance to value.

5. Start tracking any variations in valuation so valuation adjustments can be made as necessary.

6. Share any variations in values with your local agency associations so the magnitude of any underinsurance can be assessed. This is especially important in locations more frequently visited by natural catastrophes.

As a long-time independent agent, John knows agents can make great differences for both their customers and the industry. In the meantime, if you have examples of under- or over-insurance using the various costimators provided by your companies, please share them with me at jeputnam@aol.com.

This article first appeared on Bill Wilson's Insurance Commentary blog.

> John E. Putnam, Insurance Consultant/Broker/Teacher

QUIET HIRING: THE NEWEST 2023 WORKPLACE TREND

with no change in compensation, or work for a crumbling business.

Last year, the workplace buzz was all about quiet quitting, a trend in which employees put in only the minimum requirements of their job, with no additional time or effort than necessary.

Now the new year is here, and with it comes the latest buzzy workplace trend: quiet hiring. Quiet hiring is when an organization acquires new skills without hiring fulltime employees. It’s a trend that could be especially relevant for the insurance industry, as we stare down possible recession and a continued talent shortage and skills gap.

What is quiet hiring?

Quiet hiring can involve hiring part-time workers, shortterm contractors – or even asking current employees to temporarily take on new roles within the organization where help is most needed.

Why is quiet hiring on the rise?

In the midst of the talent shortage and uncertain economy, it’s increasingly important to find new ways to stay afloat and meet business goals. Rather than implement hiring freezes or layoffs, quiet hiring can be a viable option.

Asking employees who already work for you to perform other critical tasks and job functions can help them improve their skills, learn more about different areas of your organization, gain perspective, prepare them for growth, and help break down silos between departments – all while helping you meet near-term needs.

If you pursue this “internal” quiet hiring approach, it’s important to clearly communicate with your employees about why you’re doing this and what’s in it for them. Nobody wants to do “double work”, take on a new job

Sometimes, due to a skills gap, internal quiet hiring isn’t possible. That’s when hiring contract workers with just the right skills can help you meet your goals. At WAHVE, we specialize in matching professionals who have decades of insurance industry experience to fill your specific needs.

We also take the guesswork, cost, and time-consuming nature out of recruiting, hiring, and training by prequalifying every candidate and matching their skills to your specific needs. No insurance knowledge training is needed. Every wahve (work-at-home vintage experts) has 25-plus years of experience and can hit the ground running. We manage it all, from matching the right talent to helping you onboard and manage the ongoing relationship.

Quiet hiring can help you become a skills-based organization

Whether you quietly hire internally or externally, this trend can help you become a skills-based organization (one that views work in terms of dynamic skills vs. fixed, static jobs). This is increasingly important for organizations looking toward the future, and it starts with considering what goals you want to achieve and then identifying the capabilities needed to achieve them. When you work with WAHVE, you’ll get candidates who have already been screened based on specific insurance skills and organizational fit – so they’re productive on day one.

Is quiet hiring here to stay?

Quiet hiring is the new buzzword but finding ways to evolve and improve workplace efficiency without causing financial strain has long been a priority for any successful organization. In 2023, quiet hiring could make the difference between sinking or swimming. If you want to swim, WAHVE is here to help.

INSURERS INCREASINGLY IMPOSING WARRANTIES AND SAFEGUARDS ON COMMERCIAL PROPERTY POLICIES

An interesting post on LinkedIn by risk management consultant Jack Schwartz, managing director at Davis + Gilbert Risk Management, caught my attention. The issue, according to Schwartz is that insurers are increasing the number of warranties placed on property policies, whether these are locationspecific policies or smaller scheduled locations.

What are Representations Versus Warranties?

A representation is a statement made at the time of the application, either written or oral. For example, the insured may state no losses have occurred in the past five years. It is harder to void a policy or deny a claim based on a misrepresentation.

Warranties, on the other hand, are statements that could render the policy void even if they are not material to the loss. For example, a frequent warranty found in property policies is that no aluminum wiring is present in the building. If a burglary occurs, that warranty may not be relevant to the loss, but could still void coverage. According to the CPCU 530 text, “The law presumes warranties to be material, and their breach makes the contract voidable…. Warranties require strict compliance."

According to Schwartz, “Insured should scrutinize quotes with greater detail since coverage restrictions and limitations are increasingly being added, particularly on location-specific policies…" Each quote may contain different warranties on each individual property, Schwartz warns.

Additionally, underwriting scrutiny on renewals and new business is increasing. While agents often urge their clients to read the forms, agents open themselves to an errors & omissions claim if they fail to warn their clients of these warranties. Schwartz recommends both written and verbal warnings regarding warranties since so few insureds take the time to read their policies.

“Most policyholders lack the time, patience, or interest to actually review [their policies]," Schwarz added.

Replies to Schwartz' Post

Some of the comments by agents to this LinkedIn post include the following.

• “I just received a renewal today with a list of ten different warranties, yes, ten! I did … discuss with the insured before binding coverage. Buyer beware!"

• “You know where they'll get coverage? The E&O policy!"

What are Typical Warranties?

There are a variety of warranties, sometimes referred to as “safeguards."

• Ansul systems or automatic fire suppression systems in restaurants

• Fending or onsite security on new construction or builders' risk policies

• Burglar alarms

• Sprinkler systems for fire suppression

• Video systems with recording

• Security services including on-site guards

• Electrical warranties

• Post-work fire watch protocols

• A warranty that any subcontractor will furnish a certificate of insurance to the contractor

When landlords are responsible for warranties in their tenants' locations, problems can arise. Read an IA Magazine article outlining some of the challenges and possible solutions at bit. ly/3SxKTxz.

Where are Warranties Found in the Coverage?

Insurers often locate warranties in the exclusions of the policy, or by endorsement.

Some Cautionary Words to Agents

Schwartz has a few suggestions for agents offering property coverage. “Do your due diligence and explain and document to your clients any warranties."

Schwartz warns agents that failing to disclose a warranty “In pursuit of the sale" will create an E&O exposure should a loss impacted by a warranty occur.

The commercial property market is as challenging today as many long-term agents have ever encountered.

The definition of catastrophes has expanded – hurricane, wildfires, freezes, civil unrest have caused billions in losses the past few years. Ohio and Indiana now have wind and hail deductibles according to one broker. This hard market outpaces post-Katrina, and we are in a challenging market.

In the words of Bill Wilson, “If you can avoid a protective safeguards endorsement without sacrificing a premium discount, that may save your insured an unexpected and inexplicable loss."

While insurers used to offer warranties to reduce premiums, today they are more frequently “must haves" to bind coverage, according to Schwartz.

Today, most insurance consumers try to cut costs. Sacrificing protection for a reduced premium has its pros and cons. That is one of the biggest challenges for today's agent – getting the time you need with clients and potential clients to sell on value, not price.

This article was originally published on independentagent.com in August.

>

Nancy Germond, Executive Director, Risk Management and Education at Big 'I'

TUESDAY, MAY 16TH

1PM-5PM

Founders Wing

Schedule of Events

BRENT KELLY President of Sitkins Group

Mineshaft 8PM-11PM NETWORKING SOCIAL

Hosted by the IIAW Emerging Leaders

WEDNESDAY, MAY 17TH

8AM-9AM

EAA Main Entrance

BREAKFAST

FLIGHT PATHS 9AM-1:15PM

TOP GUN COMMUNICATION & NEGOTIATION SKILLS

New Level Partners

Every insurance professional must be skilled to influence or negotiate on a regular basis, so this flight path is open to anyone looking to improve in these areas.

Brent Kelly, Sitkins Group, brings his extensive hands-on insurance industry experience to InsurCon2023. Our kickoff presentation for this year’s event, Brent will help you gain influence, maximize your potential and grow your book of business.

Join us at Mineshaft where will be enjoying food, drinks and games. Our evening social is included in your InsurCon registration.

Stop by the registration desk at the EAA Main Entrance to pick up your breakfast before heading to your flight paths.

Choose the breakout session that aligns with your interests. Grab-n-go lunch will be provided in each breakout session. See our InsurCon Packet for more information about each flight path.

AGENCY PLANNING: MAPPING FUTURE FLIGHT PATHS

Carey Wallace, Agency Focus Security Financial Bank

Josh Johanningmeier, IIAW General Counsel

We encourage current and future leaders within the agency and industry to come learn more about the future of the independent agency.

1:30PM-4PM EXHIBITOR SHOWCASE

Education Center

4PM-5PM BREAK

5PM-6PM AWARDS CEREMONY

Eagle Hangar

6PM-7PM KEYNOTE PRESENTATION Lt. Col. Waldo Waldman

Eagle Hangar

7PM-10PM DINNER, DRINKS & NETWORKING

FLIGHT PATH TO DIGITAL MARKETING

Viral Solutions

Enhance your digital presence, both personally and as a brand, during this hands-on digital marketing experience.

Grab a drink from the bar and experience the EAA’s brand new Education Center while you network with other professionals. Agency attendees can win great prizes during Blackout Bingo and exhibitor Super Door Prize Giveaways.

Take time to clear your emails, check into your hotel and catch up with old friends prior to the exciting evening lineup.

Celebrate our 2023 awards winners in the Eagle Hangar. Join us as we present Rick Parks, CEO of Society Insurance with the EJ Tapping Lifetime Achievement Award.

This year’s evening entertainment features Waldo Waldman! Waldo is a real-world Top Gun, Hall of Fame Keynote Speaker, executive coach and expert on resilience, overcoming adversity & managing change.

Our final event for InsurCon will surely end this year’s convention on a high note. Take in over 200 historic aircraft while enjoying dinner, drinks and networking. The IIAW has reserved the EAA Museum exclusively for this evening event!

EAA Breakout Rooms

EAA Museum

THE IMPORTANCE OF AN EMPLOYEE HANDBOOK

In the daily grind of building a business, managing customer needs and working to attract and retain the right talent, the value of creating and maintaining an employee handbook can be lost on employers. However, having established policies and procedures is one of the best ways to improve workplace communication, set employee expectations and promote fairness, leading to a more productive workplace.

What is included in an employee handbook?

An employee handbook is a compilation of the policies, procedures, working conditions and behavioral expectations in your agency. Your handbook is a valuable communication resource, as it provides guidance and information related to the agency’s mission, values, policies, procedures and benefits. Having an updated employee handbook in place may help safeguard you and your agency from conflicts and potential litigation.

Benefits of having an employee handbook

An employee handbook is a key piece to a new employee’s success. After reading the handbook, they should have a solid understanding of the organization, including how business is conducted and what is not only expected of them but what the employee can expect from the employer. This helps the new hire approach their work with more confidence and increases their efficiency right off the bat.

For existing employees, the handbook serves as a point of reference they can turn to whenever they need certain workplace information, such as

payroll procedures or their employment rights.

Regularly review your handbook.

Employee handbooks are not a one-time process. A handbook is a living document that needs to be consistently maintained to ensure it reinforces your agency’s practices and policies that are compliant with federal and state laws. Having an outdated employee handbook can be just as risky as not having a handbook at all. A good cadence is to review and update your employee handbook annually.

The Society for Human Resource Management (SHRM) advises that employers not only distribute a copy (electronic or hard copy) of the employee handbook to all employees when they are first hired and any time the handbook is updated, but to make every effort to receive a signed handbook acknowledging they have received, read, and will follow the rules outlined in the employee handbook.

All employers should have a well-drafted employee handbook. Is your agency protected? Whether you need to provide policy updates in an existing employee handbook or create one from scratch, the IIAW will work with you to craft and brand your employee handbook to your agency. For more information about the IIAW’s HR Solutions, please email diana@iiaw.com or visit iiaw.com/HRsolutions.

> Diana Banaszynski, HR Business Partner, IIAW

Establishing policies and procedures is one of the best ways to improve workplace communication, set employee expectations and promote fairness, leading to a more productive workplace. Whether it’s providing policy updates or creating a handbook for the first time, the IIAW will work with you to craft and brand your employee handbook to your agency. You’ll also have to option to add on an annual review to update your custom handbook.

MARKETING

EMAIL MARKETING FOR INSURANCE AGENTS: HOW TO GET IT RIGHT

You’ve likely come across an article or social media post claiming email is dead. But this couldn’t be further from the truth. According to data from OptinMonster, 92% of online adults still use email, with 61% checking it on an average day. Research has also shown that businesses, on average, earn $40 for every $1 spent on email marketing. (If there were a machine that gave you $40 for every $1 you put in, how many one-dollar bills would you put in it?)

Email can offer a lot of value. That’s why you should understand how to approach email marketing for insurance agents the right way.

What Types of Emails to Send Insurance Customers

It’s essential to send a mix of different emails in your marketing efforts. For starters, different types of emails serve different functions. Additionally, sending a variety of emails can help keep subscribers engaged. Here are a few examples…

• Welcome emails

Send a welcome email to every new subscriber. Introduce yourself and let them know what to expect moving forward. This initial email is crucial as it sets the tone for the relationship.

You can also extend a single welcome email into a threepart indoctrination series. Simply follow up with an email featuring your best content and another offering your help. This extra effort can go a long way toward making subscribers confident in their decision to sign up for your list.

• Monthly newsletters

A monthly newsletter is a great way to educate your subscribers and stay top of mind. Within each newsletter, you can include an employee spotlight, an educational article, and even a section on industry news. The possibilities are endless. However, it’s important to keep in mind that your newsletter should deliver value, not push sales or renewals.

• Engagement series

An engagement series aims to convert a subscriber into a customer by delivering a relevant offer. This series begins after they take a specific action (e.g., clicking a link to an article about car insurance or downloading a guide to home insurance). In the emails, you should acknowledge the action they took, address objections, introduce the next step, and end by encouraging them to buy/get a quote.

5 Email Marketing Tips for Insurance Agents

Email marketing can seem overwhelming at first. However, the tips below can help you along the way. Use them to ensure you have all the basics covered.

1.

Choose the Right Software

A good email platform will allow you to schedule, test, track, automate, and design emails easily. There are many options out there, including Keap, HubSpot, Mailchimp, and ActiveCampaign. So, research which will fit your budget and needs.

2. Make Emails Concise

At most, an email should be 200 words. Avoid writing lengthy emails that cover a broad range of topics. Instead, keep each one short, sweet, and to the point.

3. Aim for Consistency

As with most things in marketing, consistency is key. You want to deliver what you promised subscribers in the beginning. So, aim to deliver emails at the same time every month, scheduling ahead if necessary.

4. Personalize Your Emails

Go beyond including a subscriber’s name in the subject line or greeting. Make sure you’re sending emails that are relevant to them. If you’ve chosen your email software wisely, you can segment your list based on interest.

5. Review the Data

Review the data in your email platform regularly. This will allow you to determine what’s working and what’s not. Then, you can adjust for better performance.

Takeaway

Don’t underestimate the value of email marketing for insurance agents. Including it in your greater marketing strategy can help you stay relevant among current and potential customers. Further, it can increase your chances of bringing in and retaining more customers.

If you need help with your email marketing efforts, visit viralsolutions.net and request a free consultation.

Filling

You know as well as anyone that today’s cut corner can easily turn into tomorrow’s missing piece. With our forty years of experience in specialized coverage and policies developed alongside actual restaurant and bar owners, you can rest assured that your policyholders are protected against the unique risks they face every day.

Members in the News

ACUITY'S COMMUNICATION PROJECTS RECOGNIZED FOR EXCELLENCE

Sheboygan, WI (2/9/23) - Acuity Insurance announced that several of its communication projects have earned awards for creativity in national and international competition.

“Acuity’s educational videos, annual reports, and other communication projects are important ways we connect with agents, employees, and customers,” said Ben Salzmann, President and CEO. “We are honored to be recognized for producing results that are not only effective and educational but also fun and creative.”

Educational Video Awards. Acuity’s continuing education videos earned several awards:

• Time Element at Acuity High – Platinum MarCom Award and AVA Digital Honorable Mention

• Ethics: Fire and Fraud – Platinum Hermes Award, Platinum AVA Digital Award, and MarCom Honorable Mention

• Up Close and Personal – Gold Hermes Award and Gold AVA Digital Award

• Retail Tonight – Gold MarCom Award and Gold AVA Digital Award

• Made in America – Hermes Honorable Mention and AVA Digital Honorable Mention

Annual Report Awards. Acuity’s annual report received a Platinum Hermes Award, a Gold MarCom Award, and a Gold Stevie Award.

Other Creative Awards. Acuity’s Happy Birthday Videos for its independent agency force received a Platinum MarCom Award, a Platinum Hermes Award, and two Platinum AVA Digital Awards.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 31 states. Rated A+ by AM Best and S&P, Acuity employs nearly 1,600 people.

SECURA INSURANCE NAMES TOP-PERFORMING AGENCIES FOR 2022

Neenah, WI (2/14/23) - SECURA Insurance announced its leading agencies for 2022, naming Shepherd Insurance, LLC, headquartered in Carmel, Ind., as the Top-Performing Agency.

The awards were presented at the company’s annual Premier Agent Conference held earlier this month.

To earn this prestigious recognition, independent insurance agencies met specific criteria based on their premium volume, profitability, growth, retention, and loss history with the insurance carrier. SECURA also recognized its top agencies with a variety of other award categories at the conference, including highest producing, highest premium, and best top line growth.

“We look forward to honoring our top-performing independent agencies each year at our annual Premier Agent Conference,” said Tim Heyroth, SECURA Senior Vice President and Chief Sales Officer. “As a mutual insurance company, we view our agent’s success as a fundamental part of our success as we work together to provide our policyholders with the best coverages and service.”

Five additional agencies received top-performing agency awards:

• Beth & Rudnicki Insurance Agency, Inc. of Rockford, Ill.

• Coverra Insurance Services, Inc. of Sparta, Wis.

• Forest/Mauck/Loggers Insurance of Newberry, Mich.

• United Agents of Arizona of Mesa, Ariz.

• Vizance, Inc. of Hartland, Wis.

ABOUT SECURA INSURANCE

SECURA Insurance, headquartered in Neenah, Wis., is a regional group of property-casualty insurance companies operating in 13 states. Approximately 550 independent insurance agencies represent the group, which provides a broad range of competitive commercial, personal, farm, nonprofit, and special events products. SECURA Insurance is known for providing exceptional service to its agents and policyholders since 1900, and is rated A (Excellent) by A.M. Best for its excellent ability to meet policyholder obligations. It is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a fiveyear period, and it is a certified Great Place to Work. Visit www.secura.net to learn more.

MOMENTUM

BUILDS AROUND UFG ASSUMED REINSURANCE BUSINESS, ADDITIONAL TALENT JOINS TEAM

Cedar Rapids, IA (2/14/23) - Experienced reinsurance industry professionals Jennifer Baron, Rick Tjarks and Kathy Dnistrian have joined the assumed reinsurance

underwriting team at UFG Insurance.

Baron and Tjarks come aboard as reinsurance underwriters and Dnistrian as a senior reinsurance underwriter.

All work with brokers and cedents across the U.S.

The trio joins UFG as the company continues to amplify its commitment to the alternative distribution segment of assumed reinsurance, having expanded partnerships and entered program management agreements, as well as adding more top talent.

“UFG’s reinsurance treaty business operations continue to expand and we are thrilled to offer new capacity to the market when it is greatly needed,” explains UFG Vice President and Chief Risk Officer Micah Woolstenhulme, who leads the company’s assumed reinsurance efforts. “Jennifer, Rick and Kathy, each bring deep expertise to client relationships and join our impressive, experienced underwriting team.”

Baron, a graduate of Texas State University, brings vast industry knowledge to the specialty, casualty and MGA space at UFG.

Tjarks has 33 years of diverse reinsurance experience and supports both new and existing business relationships.

Dnistrian holds a bachelor’s degree in mathematics and philosophy from St. John’s University and uses expansive industry know-how to take the lead on many existing and new treaty relationships.

“We’re thrilled to have these reinsurance-tenured underwriters on our trusted team,” adds Woolstenhulme.

SOCIETY INSURANCE EMPLOYEES ATTEND EMERGING LEADERS CONFERENCE

Fond du Lac, WI (2/15/23) - Heather Friedl and Stephanie Williams of Society Insurance have been recognized by the American Property Casualty Insurance Association (APCIA) as emerging industry leaders. Friedl and Williams joined a select group of property and casualty insurance professionals at the 2023 Emerging Leaders Conference on February 5-7 in Charleston, SC.

The conference, co-hosted by the Insurance Careers Movement (ICM) and A.M. Best during February Insurance Careers Month, provides insights on executive leadership, facilitates networking and promotes professional and personal development.

“I was very humbled to be nominated to take part in this conference with such a talented group,” said Heather Friedl, Society’s corporate counsel. “It’s inspiring to talk and listen to my industry peers about making insurance relevant and better for years to come. It is hard to walk away from such an energizing event not wanting to implement everything I absorbed.”

Society’s Stephanie Williams won the conference’s Business

Innovation Leadership Award, presented to attendees who excel in transforming their companies for the future, drive innovation and make a significant impact within their companies and communities.

“I am so honored to be recognized for the Business Innovation Leadership Award, especially after spending the last few days with such dynamic insurance professionals,” said Williams, Society’s commercial underwriting manager. “In these exciting times, the innovations of today will be table stakes tomorrow. I am fortunate to have leaders who are willing to embrace the future of our industry to ensure it remains vibrant and strong.”

ABOUT SOCIETY INSURANCE

Headquartered in Fond du Lac, Wis., Society Insurance has been a leading niche insurance carrier since 1915. Society focuses on the small details that make a big difference to its policyholders while offering top-notch insurance coverage, service and competitive pricing to businesses in Wisconsin, Illinois, Indiana, Iowa, Minnesota, Tennessee, Colorado, Georgia and Texas.

GO IT ALONE: 3 QUESTIONS TO CONSIDER BEFORE STARTING YOUR OWN AGENCY

Two key dreams in American life are the dream of owning a home and the dream of owning a business. Both dreams encapsulate our national ideals of independence, success and self-determination. As daunting as the homebuying process may be, the process of starting and sustaining a successful business can be even more overwhelming.

Fortunately for insurance professionals, the opportunity to start and grow a successful independent insurance agency, though still intimidating, has never been more obtainable.

Here are three questions you should ask yourself before starting your own agency, as well as some best practices to address those questions and get you on your way:

1) How will you stay alive until you thrive? I've been privileged to work with literally hundreds of agency entrepreneurs, and this is always the first question I ask. The capital requirements for equipment, inventory, rent and other costs for a new agency are modest in comparison to many other startups. But it often takes far longer to build agency income to the level required to sustain the founder's personal living expenses, much less allow for the hiring of employees necessary to sustain growth.

While it may come in different forms, the answer to this question is preparation. Preparing a plan to support yourself is absolutely critical to ensuring your new business survives. If you can't pay your personal living costs, you will be forced to close what otherwise could have become a thriving business.

Among other things, building and ensuring the stability of your spouse's income, if applicable, can also be critical steps in ensuring you are prepared to launch a business, as well as knowing the assets you have available to sell should you need to create

ready cash. I suggest having savings for a year of personal expenses in the bank. Often that is more than enough—with strategic budgeting and cash control.

Careful preparation will not only create confidence as you begin, but ensure you have the staying power to succeed.

2) How will you begin to achieve success? In my experience, the reason most agencies fail is because the founder didn't develop and follow a well-thought, realistic business plan with a detailed, carefully researched financial forecast or budget. A great plan, broken down into weekly and monthly forecasts and tasks, will allow you to maintain your confidence during the startup period and greatly increase your odds of success.

That plan needs to include comprehensive details on who you will market and sell to, including how you will do it. The plan should also detail the products you'll sell and the insurance carriers you will represent. A very important but often ignored component: The plan should include the activity levels required to achieve projected sales. Finally, the plan should include a projection of closing rates and cash flow timing.

The good news is that a plan isn't difficult to develop. Your sales activities can usually be forecasted realistically based on your previous experience—if you realize your time will be occupied with tasks other than sales activities as you assume your new role as chief cook and bottle washer. Further good news is that great data, in the form of benchmarking studies and more, is available from sources like the Big “I" both nationally and in your home state.

3) Who can help you? Years ago, while attempting a rope course, I failed repeatedly to complete a challenge. Finally, the course instructor said, “You are making something very easy quite impossible because you won't accept the help your friends are freely offering!" That day changed my life. I realized to accomplish my plans and goals I needed to bury my pride and recognize that no one truly succeeds in life all by themselves.

There are endless people and organizations that can and want to help you succeed. Start with your friends and your family. Make sure those closest to you share in your vision and are committed to helping in any way they can—whether it's money, encouragement or buying insurance from you.

The Big “I" and its state associations have tremendous resources to help you. In fact, I used their resources when I decided to get into the agency business, and I'll always be grateful for the advice, support, tools and fellowship I received.

Additionally, in terms of carrier access, new agency owners can partner with companies that serve as market access providers or aggregators. These organizations can make carrier availability simple and profitable to obtain.

Also, state governments, local universities, vocational schools and chambers of commerce have resources to help startups. Finally, entrepreneurial coaching organizations offer recipes for success and customized support and coaching.

The important thing is to be humble, look for help where you can find it, and take it willingly. You'll be amazed at how others will respond to your requests for help and assist you in realizing your dreams.

Starting your own insurance agency requires faith in yourself and a demonstration of courage as you seek a better life and a bigger future for yourself. And while a significant challenge, it is imminently achievable with good planning, preparation and a little help.

Tony Caldwell is an author, speaker and mentor who has helped independent agents create more than 250 independent insurance agencies. Learn more by visiting www.tonycaldwell.net.

This article was originally published on iamagazine.com in February.

> Tony Caldwell Author, Speaker & Mentor

GOV. EVERS STATE BUDGET REJECTED BY REPUBLICANS

Wisconsin Democratic Governor Tony Evers recently delivered his third biennial state budget address to a joint session of the 132-member state Legislature, 31 of which are freshman lawmakers. Both chambers are controlled by Republicans and have been for more than a decade. The governor’s budget address is the opening salvo to the exhaustive legislative budget season that generally lasts into the summer. Evers’ plan, as expected, covered a wide variety of his top priorities including significant investments in K-12 education, health care, and infrastructure, along with middle class targeted tax relief and proposals for criminal justice reform and environmental protection to name a few.

As expected, Republicans quickly rejected the governor’s budget proposal. Senate and Assembly leadership and the co-chairs of the budget writing Joint Finance Committee (JFC) have indicated they intend to work on the budget by starting from the base. This means the Legislature will begin crafting a budget based on what the state currently has been working from for the past two years. This also means they will not be working from Governor Evers’ budget bill. Additionally, all major policy items that the governor proposed such as legalizing recreational marijuana and expanding eligibility for Family and Medical Leave (FMLA), will be debated separately and outside the budget process. As Republicans develop a budget, it will include some areas of common ground with the governor, but will look vastly different from that of the governor’s original proposal.

Of note, Evers’ proposed operating budget would set out to hire a net 817 additional full-time state government jobs and spend $103.7 billion over the next two fiscal years, with $52.1 billion of that amount in the first year which is an 18 percent increase from the current year’s budget. By comparison, the previous state budget in 2021 spent $89.2 billion (see above graph) with a net reduction of 174 fulltime state government positions. These latest spending figures from the governor are unprecedented in Wisconsin’s budget history, while in the meantime the state also faces an equally unprecedented $7.1 billion projected budget surplus. There will likely be bipartisan agreement on major issue areas, but a significant partisan disagreement between the governor and Republicans on what those solutions will look like.

By law, the governor’s budget will be introduced as a bill in the Legislature. The 16- member Joint Finance Committee will spend the next several months rewriting the entire proposal before sending the plan back to the governor for his veto review and ultimately signing it into law.

Based on past experience, the following is expected to happen:

• The nonpartisan Legislative Fiscal Bureau (LFB) will release a plain-language summary of the budget recommendations sometime in the middle of March 2023

• The JFC will hold state agency briefings and conduct public hearings around the state on major agency budget priorities

• The co-chairs of the JFC will work with the LFB to identify non-fiscal policy items and slate them for removal from the budget

• The JFC will vote on including major provisions into the budget and this is expected to be done in a series of omnibus proposals

• By June, the full state budget should be completed by the JFC and ready for debate and passage by both houses of the Legislature

• The governor will take a week or two to review the Legislature’s budget, veto certain provisions that he does not support, and then sign it before the bill is enacted into law

The complete budget bill, budget in brief, and other executive budget documents are available at bit.ly/March23GovAffairs. The governor has also published his prepared remarks (bit.ly/3IBvJ5X) and a recording of his address (bit.ly/3Z3JykP), as well as selected excerpts (bit.ly/3kr5GGJ).

Stay tuned for updates on items of specific interest to independent agents and Wisconsin’s Insurance industry.

> Misha Lee IIAW Lobbyist

nice makes you smile.

At

Western National Insurance. The power of nice.

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

WEBSITE RISK - LIVE CHAT AND OTHER CLASS ACTION QUICKSAND

Agency websites grow more robust and interactive every day—so much so that the IIAW, E&O carriers and other risk management programs devote significant resources to reviewing agency websites’ content to avoid common pitfalls that could lead to claims and litigation. Enterprising plaintiffs’ lawyers, always on the lookout for the next payday, are also looking at websites (across all industries) and recently have launched a surge of claims not based on website content, but rather certain functionality. In particular, Live-Chat and Session Reply capabilities have landed website operators in the cross-hairs.

Live-Chat? Session Replay?

If these terms are unfamiliar, your agency site may not be using them. That said, many larger agencies and brokers are utilizing these tools to further engage with clients and prospects. Live-chat technology is exactly what it sounds like: software embedded into a website that allows a visitor to chat in realtime with a human being (or perhaps a less helpful chat-bot). As for session replay, it is a common and straightforward technology: software embedded into a website that tracks visitors’ clicks and keystrokes. It then uses their history to identify the visitors’ interests so that it can market those products or services (or something similar) to them, either directly or through social media feeds. These technologies are often enabled through third-party providers, since many businesses do not have the breadth of support in their IT departments to manage them (though some of the world’s largest businesses still utilize third-party providers as well).

The Threats: Demand Letters from Consumer-Side Plaintiffs’ Attorneys

Plaintiffs’ attorneys are now claiming that the presence of this third-party on the communication— the chat messages or, according to some courts, the relaying of information through clicks and keystrokes—causes the website owner to run afoul of wiretapping statutes in several states, including California, Florida, and Pennsylvania. That is, the third-party vendor is “listening in” without the visitor knowing it. And because websites are generally available in all 50 states, it is no surprise to see allegations of wiretapping against even those businesses that don’t operate in a state with an applicable law.

Typically, the allegations are first made by a plaintiff’s attorney in a letter threatening a class action lawsuit but inviting (and aiming for) an early settlement— the attorney won’t bring the lawsuit if the targeted

business pays up. Settlement demands vary, but usually are built around a lower value settlement that a business recognizes is far less than the costs of defending a new lawsuit (and, of course, is a lucrative return on the plaintiffs’ attorneys’ effort of preparing a form letter.)

But, a few cases have gone to litigation. The balance of case law at the trial court level has favored businesses, but has been by no means uniform. And, even if it was more predictable, the vagaries of litigation and risk of costly class action litigation are such that many businesses don’t want to take the risk of passing up the settlement.

Protecting Your Agency

If your agency receives one of these demand letters or, worse yet, is served with a complaint making one of these claims, you need to contact competent counsel immediately. Of course, it would be even better to avoid receiving that demand letter in the first place. Here are several things you can do to reduce the risk of being targeted:

• Consider requiring visitors to affirmatively consent to the use of live-chat or session-replay software and the accompanying collection of data when the software is being used.

• Disclose these products and their collection of data in your privacy policy or other terms of use on your website.

• Ask your third-party vendor for an audit of its software’s operation and data-collection functionality. Depending on how the product is structured, it may fall outside the arguable application of wiretapping statutes.

To further protect your agency, you can preemptively limit potential exposure by negotiating with vendors for indemnification in the unfortunate event you are targeted by these claims. Ultimately, managing the balance of benefits your agency website provides to your clients and prospects against the risk of claims takes diligence, competent support and a frank assessment of your own risk tolerance. As trends continue to develop around these and other technologies, we will keep you posted in this column and through IIAW’s programs and alerts.

> Josh Johanningmeier IIAW General Counsel

SEE OUR FULL COURSE SCHEDULE AND REGISTER FOR THESE CLASSES AT IIAW.COM/EDUCATION