South Carolina Agent & Broker Fall 2017 by PHCC-WI

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Fall 2017

Independent Insurance Agents & Brokers of South Carolina 800 Gracern Road, Columbia, SC 29210 803-731-9460 803-772-6425 (fax) e-mail: information@iiabsc.com

IIABSC Staff

Message from the Chairman of the Board

Message from the National Director

2017 South Carolina Outstanding CSR Of The Year Award

South Carolina Rules & Regulations Around Producer License Renewals

Ultimate Account Manager: STOP IT!

G. Frank Sheppard, AAI, CAE President ext. 1239 or 803.760.1239 fsheppard@iiabsc.com Rebecca H. McCormack, CPCU, CIC, AAI Vice President ext. 1238 or 803.760.1238 bmccormack@iiabsc.com

Restrictive Covenants Can Swing Both Ways: A 3-Step Plan to Avoiding Legal Risks When Onboarding New Employees

Agents Council for Technology Cyber Guide 1.0

How to Avoid E&O Claims from New Products

Time to Offer Cyber Coverage to All Small Business Clients

Could Your Agency Weather A Data-Security Breach?

Young Agents Conferecne Photos

Junior Golf Tournament Wrap

IIABSC Education & Events Calendar

Member News

Palmetto Partners

2017 Board of Directors and Executive Committee

Beth Chastie Vice President of Administration & Finance ext. 9462 or 803.731.9462 bchastie@iiabsc.com Megan Huebner Director of Events & Membership ext. 9463 or 803.731.9463 mhuebner@iiabsc.com Megan Thomas Director of Member Services ext. 1227 or 803.760.1227 mthomas@iiabsc.com Anita J. Trevino Director of Communications ext. 1237 or 803.760.1237 atrevino@iiabsc.com Martha Reid Education Coordinator ext. 1219 or 803.760.1219 mreid@iiabsc.com Tracy Guyette Administrative Assisstant/ RLI Contact ext. 9641 of 803.731.9461 tguyette@iiabsc.com South Carolina Agent & Broker is the official magazine of the Independent Insurance Agents and Brokers of South Carolina and is published four times annually. IIABSC does not necessarily endorse any of the companies advertising in this publication or the views of its writers. Articles and information published in this magazine may not be reproduced without written consent of the IIABSC. South Carolina Agent & Broker is not responsible for unsolicited manuscripts, art or photography. The publisher cannot assume responsibility for claims made by advertisers, content provided by the editor, or for the opinions expressed by contributing authors. For more information on advertising, contact Eric Johnson, Blue Water Publishers, LLC, 9406 N. 107th St., Milwaukee, WI 53224 414-708-2059 / fax: 414-354-5317 eric@bluewaterpublishers.com

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IIABSC Chairman of the Board

Scott Moseley

AN ACTION-PACKED TWO YEARS

his fall at the IIABSC Annual Convention in Myrtle Beach I stepped down as Chairman of the Board and passed the gavel to Tom Bates. I’m leaving you in very capable hands. Tom is going to do a great job as chairman. It’s been an action-packed two years—hurricanes, navigating disaster recovery aid, the national flood program renewals, the Department of Labor’s new rules on overtime pay (since overturned), the implementation of fingerprinting requirements for all licensed producers in South Carolina, the rollout of new cybersecurity requirements in New York state (now being seen as a template for cybersecurity standards nationwide) and a new presidential administration that indirectly put a new South Carolina A&M Assoc Ad SC PRINT.pdf

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governor and South Carolina Congressman in office—these are just a few reasons in the past year why independent agents need a voice in their industry’s regulatory process at both the state and federal levels. Your association is that voice to represent you. Year after year we emphasize the importance of giving to InsurPac, which is an important tool of the national governmental affairs program. A group of us are at every event asking attendees to contribute because it is the simplest way to demonstrate your support of our association’s advocacy programs, support that is seen loud and clear from Capitol Hill with every election cycle. Before I move to my new role as immediate past president and chair of the convention committee, I’d like to thank the IIABSC staff for doing an outstanding job in helping me prepare in my duties as Chairman of the Board. An especially BIG thank you to Vice President of Administration and Finance Beth Chastie for her 13 years with the association. She’s been a tremendous asset to the Board of Directors, and I wish her well in her retirement. IIABSC President Frank Sheppard does a great job lobbying for our association at the State House and advocating for the needs of independent agents over at the South Carolina Department of Insurance. Congratulations are also in order to Vice President Becky McCormack for her recent national recognition for a lifetime of achievement in education as well as IIABSC’s sixth consecutive Diamond-level award for Excellence in Education. I’d also like to thank my fellow board members for their support over the past two years of my chairmanship. Special thanks to those who showed me the way—Ashley Brady and Ken Finch. Best wishes to those who come after me—Tom will do an outstanding job as our chairman. Finally, I’d like to thank my family for their support through the years. My parents founded Irmo Insurance Agency in the mid ’70s, and they’ve led me on my path to the insurance industry as well as active involvement in IIABSC. My beautiful wife, Melinda, supports everything I do. She’s been amazingly patient with all the time I’ve been away representing the association around the country. My kids too—Alex and Kate. Last year I managed to convince my son, Alex, to come with me to see one of the presidential candidates in Chapin. We had a great time together, and it was a great chance to share some of the civic values of the family business that I hope he’ll take with him wherever he goes, insurance industry or elsewhere. Thank you for the chance to serve South Carolina’s independent agents. It’s been a privilege.

South Carolina Agent & Broker • Fall 2017

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National Director Ashley Brady, CIC

SOUTH CAROLINA LEADERS RECOGNIZED AT BIG “I” FALL LEADERSHIP CONFERENCE WHILE DATA SECURITY ISSUES LOOM LARGE

am writing you now having just returned from the 2017 Big “I” Fall Leadership Conference held in Chicago, Ill., where I had the privilege of seeing my friend and colleague Jon Jensen being sworn in as the Vice Chairman of our National Board of Directors. Jon has been of exemplary service to both our state and national associations, and I know that will continue as he follows the path to national chairman in 2019. Many congratulations to our Vice President, Becky McCormack, CPCU, CIC, AAI, AINS, who was honored for a lifetime of excellence in our association’s education efforts with a Spirit of Education award. This award was created by our national association’s Agent Development, Education and Research Department to recognize a person or organization working closely with the national organization to deliver quality education to Big “I” members across a variety of platforms. The award was developed as a way to acknowledge the very generous contribution of time, energy, expertise and patience necessary to make an education program or offering successful.

Starting on page 24 you will find a printed summary of ACT’s Agency CyberGuide 1.0. Access the full document, their Agency Cybersecurity Policy template as well as a variety of other technology-related tools on their website – iiaba.net/act. This edition also offers a rundown of cyberliability insurance as a basis for strategic discussions within your agency as well as with clients. And please stay tuned, because this is definitely not the last you will hear about cybersecurity and cyberliability coverage, whether it be news of more massive breaches leaving millions of Americans compromised, legislation at the Capitol and State House or further recommendations by the Big “I” on your agency operations and policies.

Becky has been with us since 1996. She instructs a wide variety of professional development courses in other states as well as ours and serves as Chair for the SC Continuing Education Advisory Board of the SC Department of Insurance. Her tireless dedication to ensuring that quality continuing education and professional development are available in South Carolina and the national level means nothing but the best for South Carolina’s independent agents. Our education department was also given its sixth consecutive Diamond Level Excellence in Education award, recognizing state associations providing top-level education for their members in the key areas of class offerings, continuing education, professionalism, designation offerings, industry collaboration, planning, marketing and resources. Diamond is the highest level of recognition. The importance of cybersecurity at all levels of the insurance industry kept coming up during the conference as some of the deadlines for New York’s new cybersecurity regulations were approaching, news had just broken of Equifax’s massive data breach and the National Association of Insurance Commissioners were hard at work on an Insurance Data Security Model Law to create information security standards for insurers. The rules are expected to cover maintaining an information security program based on ongoing risk assessment, overseeing third-party service providers, investigating data breaches and notifying affected customers and regulators of a cybersecurity event. Our cybersecurity issue could not be timelier. Through the Agents Council for Technology (ACT), your national association already has tools for your agency to ensure compliance with all the regulations and the proper protecting client’s information in today’s growing world of cybercrime.

South Carolina Agent & Broker • Fall 2017

Congratulations to IIABSC Vice President Becky McCormack, who was honored with a Spirit of Education award by our national association during the Fall Leadership Conference held Sept. 6-10 in Chicago, Ill. Our education department was also given its sixth consecutive Diamond-Level Excellence in Education award.

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Amanda C. Guenther, CISR, AIAM, CIIP C.T. Lowndes & Company 2017 SC O utstanding CSR

of the

Y ear A ward

Amanda C. Guenther, CISR, AIAM, CIIP of C.T. Lowndes & Company in Mt. Pleasant has been named the 2017 Outstanding Customer Service Representative of the Year. This award is the highest honor in our state for insurance customer service reps who have distinguished themselves through contributions to their industry. It’s sponsored by the National Alliance for Insurance Education & Research, the same organization that brings you the CISR, CISR Elite and CIC designation programs.

Nominees were required to show a commitment to the industry through education, involvement and achievement as well as write an essay on the following prompt:

“A friend who is a CSR has come to you for advice about a new customer service job opportunity in an agency in another city. What five factors about the employer and the position would you advise them to consider before accepting the job? Please discuss the most important factor first.” (Winning Essay) The insurance industry is ever growing and evolving, which creates many job opportunities for those new and experienced in the industry. At some point in our careers we all face the choice of changing our career path by changing our location, our employer, or even changing our line of specialty. If I were approached by a friend looking for advice on a new customer service position in another city I would have a long discussion with them about what factors I believe they need to consider when making their decision. These factors would include their values vs. the values of the potential employer, expectations of the position, opportunities for growth, and what career support is provided by the employer. I feel that all of these factors are even more important than the ever looming question of “How much will I be paid?” and I am happy to explain why.

South Carolina Agent & Broker • Fall 2017

The first and what I believe is the most important factor is to compare your values with the values of your prospective new employer. This may take more than just reading their vision statement because sometimes there is a true difference from what a company publishes and what their actions show. On top of reviewing their vision statement, I would suggest looking into customer reviews and company responses to reviews via Google, Facebook, and any other form of social media that they utilize. I think how a company handles adversity and negativity speaks volumes more about them than how they handle success. You need to ask yourself what is most important to you in your life, professionally and personally, and whether or not your new employer will support you in that. When a company supports their employees inside and outside of the office the employee is more

apt to the extra mile for them in return. I would also look at how they treat their employees and what kind of atmosphere will you be working in. You can get some of this information based on what expectations are presented to you during the interview process. A company’s expectation of an employee is critical when you consider changing jobs in any industry and the insurance industry is a perfect example of that. If you change positions from a CSR for an independent agent over to a Managing General Agent the roles will be two completely different things. This can even be true when changing positions from one independent agent to another as some agencies utilize multiple departments for certain tasks like new business, remarketing, CSRs, and Processing CSRs while others have their CSR do any and all of these tasks. You must know yourself and your limitations. If you worked as a CSR with separate departments to utilize previously, you may be overwhelmed without supporting departments at another agency. You may also need to ask how large of a book of business you would have and what type of business you would be handling. This can be a key factor in telling whether or not the company’s expectations are too high for you or for a CSR in general. Maybe you do not plan on being a CSR for long in which case you will want to know about your opportunities for growth. I believe that life is all about growth whether it is professionally or personally so I always look for opportunities for growth and I always suggest that to others. When considering changing jobs you need to ask yourself where you want to be professionally in five years or even 10 years.

Do you want to be an Account Executive or Outside Sales Representative? If so, does this new employer offer that opportunity in the future? If not, then it may not be the right place for you. If there are not necessarily additional positions available, what other career support do they offer? For example, if you are happy being a CSR and have no want to move forward into a sales position there really is not much room for positional growth at an independent agency. So what can employers do for these employees? Employers can offer membership into insurance-related associations, which provide their employee the opportunity for further leadership and growth within the insurance industry outside of the workplace. This can be posed as an additional employee benefit like employer-supported education classes or licensing. These additional benefits can make all the difference as they really are not that common anymore. If the potential employer does not currently offer that make mention of it as it may not have been something they considered before. There are so many factors to consider when changing jobs in any industry, but I feel that there are some factors that are significantly more important than others. They include your values vs. your potential employer’s values, expectations of the position, opportunities for growth, and what career support is provided by the employer. In a world where most of us are just trying to make ends meet financially, we tend to forget what is really important. We will sacrifice our happiness for financial gain, and I honestly think that is the absolute worst decision we can make in our professional lives and our personal lives. When our jobs become all about money we not only hurt ourselves but our industry as well.

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Fall 2017 • South Carolina Agent & Broker

South Carolina Rules & Regulations Around PRODUCER LICENSE RENEWALS By Becky McCormack, CPCU, CIC, AAI, IIABSC Vice President

enewing your insurance license seems to be getting more complicated all the time. There are several steps to complete to renew your license, and overlooking any one of them will result in your license lapsing at the very least and cancelling at the very worst. Sometimes we get lulled into thinking that since we’ve gone through the process in the past, that we will just remember everything we have to do. Unfortunately, that’s not always the case. In the past several months we’ve had at least a half dozen agents contact us at IIABSC in bewilderment at why their license had lapsed. These were not “new” agents, these were agents who had been through the process many times, but in each case they had overlooked one of the steps – or part of a step – and it resulted in the lapse of their license. As a reminder, agents must renew their license by the last day of their birth month. If you were born in an even-numbered year, you must renew your license in even-numbered years. If you were born in an odd-numbered

year, you must renew your license in odd-numbered years. Here are the steps in renewing your license: Step One: Each agent must complete the continuing education requirements AND pay the CE recordkeeping fee to the CE Administrator (www.prometric.com/CE/scceprod). The required amount of CE hours vary – most agents must complete 24 hours of CE, but some agents have a reduced compliance requirement and only need to complete 15 hours of CE. Still others may be exempt from this step altogether. (If you are exempt or have reduced compliance, you already know it. Currently no new exemptions or reductions are being offered.) For those who are required the full 24 hours each CE cycle, at least three hours must be Ethics hours and at least eight hours must be completed in each line of authority (L&H/P&C). Even if you are certain that you have taken the appropriate numbers of hours required, we recommend that you also verify your transcripts with the CE Administrator to check for recordkeeping errors. Step Two: You must go online to the Department of Insurance website (www.doi. sc.gov) to renew your license AND pay the $25 renewal fee. Step Three: You must be fingerprinted by Identogo. EVERYBODY must be fingerprinted in order to renew your license. This has nothing to do with CE, so if you’re exempt from CE, you still need to be fingerprinted. And even if you were fingerprinted in the past for another state, Learn more you will need to about mandated be fingerprinted fingerprints on again by Identogo. our FAQs webpage: The fee is $50.50, www.iiabsc.com/ an amount set by fingerprints contract between SLED and Identogo. Please be sure everyone in your office checks and double-checks that they have completed all the steps and paid all the fees to renew their license. There are fines and penalties involved if your license lapses, and if your license cancels you will also get the privilege of taking the licensing exam again!

South Carolina Agent & Broker • Fall 2017

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any years ago, my organization created a program called The Ultimate Account Manager. Originally presented as an on-site program for an agency with relatively new Account Managers, we quickly recognized that many independent insurance agencies were experiencing some level of pain at the Account Manager position, and we felt that lack of training was one of the root causes. Clearly, we were ahead of our time on this issue, because for more than a decade we literally could not give this program away. It’s likely that agencies and their service staff members were managing, although perhaps not thriving, in an environment where additional pressures and challenges were being presented daily. Learning new and ever-evolving technologies, increased consumer service expectations and shifting of more and more responsibilities from the insurance carrier to the agency were all combining to make the job of an Account Manager more challenging than it had ever been before. It seems we have now reached a boiling point, and agencies and Account Managers across the country are begging for help. The demand for our program has not only risen, but so has the utter frustration and feelings of inadequacy experienced by many bright, talented individuals who seek to provide the best customer service experience to the agency’s clients only to be thwarted in their efforts by time constraints and the increasing demands put on them. So, what can an agency do to reduce the stress, create a culture of excitement and improve the morale of their service staff? The easy answer has always been to increase staff, and yet that often does not resolve the issues – in fact in most cases it only makes things worse. It seems to us that resolution lies in accepting the fact that we cannot continue to do business “the way we’ve always done it” while expecting more from each individual and believing we are truly providing extraordinary service to our clients. (Someone once defined this as “insanity.”) As we go throughout the country working with incredibly talented, motivated and caring Account Managers, we often ask them what are tasks they are asked to do that they feel do not provide true value-added service to their clients. There are about ten that are mentioned over and over again, and we believe it’s time to simply stop doing certain things in order to free up time for what our customers truly find valuable, such as risk management advice, coverage analyses and gaining a true understanding of the issues they face. In no particular order, the following are ten things we think every independent agency should resist doing in order to greatly improve the level of service to their client. We call it simply the ”STOP IT!” list.

South Carolina Agent & Broker • Fall 2017

IT! By Cheryl Koch, President/CEO, Agency Management Resource Group

TAKING CASH PAYMENTS. Not only is this inefficient as the cash must somehow find its way to the bank and insurance carrier, it’s dangerous. One agency told us that between the first and fifth of each month employees collected thousands of dollars in cash, which they kept in their office and carried to the bank every evening. If you had a client who was doing that, wouldn’t you recommend they stop as a sound losscontrol recommendation? STOP IT!

SWEEPING OR UPLOADING THE CLIENT’S DIRECT BILL PAYMENT. We don’t want to do anything to discourage a face-to-face meeting with a client, but aren’t there more important topics for those interactions than this? Typically, the payment is already late or overdue when left at the agency, creating possible E&O exposures if not processed on a critical basis. STOP IT! CALLING CHRONIC, LATE-PAY, DIRECT-BILL CLIENTS. Seriously – have we not gone over this ad nauseam in the past? You set a dangerous precedent and train the clients they don’t have to pay until they hear from you. Of course, Murphy’s Law will kick in at some point, and the call won’t be made, the policy will cancel, and you’ll be on the hook for the uncovered loss. In addition, do you know how many steps that is for the Account Manager? The customer can’t be reached, so we check the carrier website every day to see if the payment has been made. STOP IT! RUNNING MVRs. In addition to compliance with myriad state and federal privacy laws, when an Account Manager runs an MVR on a client’s prospective employee, he or she is put in the awkward position of giving a “thumbs-up” or “thumbs-down” hiring recommendation to the Insured. Why not provide guidelines to the client when hiring drivers and have them require that the prospective employee provide a current copy of their own MVR, something available quickly and inexpensively online in most states? STOP IT! ASSEMBLING POLICIES IN THREE-RING BINDERS. First of all, doesn’t that necessarily mean you are sending paper copies of policies? In many cases, the policy was received in the agency electronically, then printed out and placed in a binder. In addition, agencies that do this “stockpile” the policies for large commercial accounts until all have been received. That’s a dangerous practice since the client does not have the opportunity to review the policy for accuracy at the earliest possible time. STOP IT! Continued on Page 16 >>

Ultimate Account Manager

—Advanced, Modules I & II Much more than typical customer service training, this series takes an in-depth look at day-to-day issues facing CSRs in their quest to become extraordinary. Includes client management, responding to multiple producers, prioritizing work, E&O pitfalls, etc. Each course is approved for 6 hrs. P&C credit. Register online through our website education calendar— www.iiabsc.com. Cost is $155 for members, $175 for nonmembers.

Advanced - NEW! Charleston, Nov. 15 Columbia, Nov. 16 • • • • •

Advanced desk management techniques “Do-not-do list” - 10 things to quit doing & improve service Generations at work Best Practices of an Ultimate Account Manager Dealing with conflict and difficult people

Module 1

Charleston, Nov. 14 • • • •

Three Key Elements of an UAM Customer Service Triad Workflow Management Working with Producers

Module 2 Greenville, Nov. 17 • • • • •

Desk management techniques Preparing quality submissions Performing coverage comparison analysis 360° view of the industry Tips to improve your efficiency, productivity and attitude Fall 2017 • South Carolina Agent & Broker

QUOTING EVERYTHING THAT FALLS ACROSS THE THRESHOLD. We know that many agencies, especially those in small or rural towns, feel they need to provide a quote to everyone who asks. But in this day of specialization, is that really a good strategy? Hit ratios on this business tend to be very low and the buyers are often only interested in a lower price. In addition, minimal information is usually gathered that often leads to underinsurance and a possible E&O claim down the road. STOP IT! QUOTING SMALL BUSINESS WITH MULTIPLE CARRIERS. See above. If you know what kind of business fits your agency’s target profile, then you should also have a pretty good idea which carrier will best provide for their needs. We recognize there could be a substantial price differential between one carrier and another, but if you stay in your lane, you will quickly notice this and stop quoting the one who is consistently uncompetitive. STOP IT! REMARKETING ACCOUNTS EVERY YEAR. Producers often tell us that they promised to do this when they first wrote the account. As you can imagine, we tell them to STOP IT! Not only does this damage your relationships with the carriers who are not going to write the account, it’s not always in the Insured’s best interest. Of course, it is our responsibility to survey the market and know when a better fit is available, but that does not require massive remarketing efforts every year. STOP IT!

WORKING ON NEW BUSNESS LESS THAN SIXTY DAYS PRIOR TO EFFECTIVE DATE. When an agency does get a bona fide opportunity to write a large commercial account, it takes a lot of time, resources, and effort on the part of the agency and the insurance company to put things together in a way that will help the producer obtain the business. Most agencies start their renewal process 90 to 120 days out, recognizing the importance of accuracy. But that’s a customer we already know – how do we think we can do our professional best in less time with a new relationship? STOP IT! DEFINING SERVICE FROM YOUR OWN PERSPECTIVE, NOT THE CUSTOMER’S. There are only so many hours in an Account Manager’s day. Do you want them spending their time talking with your clients, building relationships, providing professional advice and counsel, or processing transactions and chasing around people who can’t manage to pay their bills on time? If your clients get a vote, we can assure you what they would choose. STOP IT! Cheryl Koch is the President and CEO of Agency Management Resource Group located in Roseville, Calif., consulting on marketing and sales, sales management, agency operations, automation, and strategic planning. She has been in the insurance industry for so long that she’s served in nearly every capacity within an independent agency, having been an Account Manager, Producer and Agency Owner. She now devotes her time to agency management consulting and training and speaking at industry functions throughout the country.

What’s New?

Cheryl Koch will be in Charleston, Columbia and Greenville this November to present the Ultimate Account Manager courses – Modules I & II plus the new advanced course. Much more than typical customer service training, this series takes an in-depth look at day-to-day issues facing CSRs in their quest to become extraordinary. Includes client management, responding to multiple producers, prioritizing work, E&O pitfalls, etc. Each filed for 6 hrs. P&C credit. $155 members/ $175 nonmembers. Register using our website’s online education calendar, www.iiabsc.com. Ultimate Account Manager MODULE 1 Charleston, Nov. 14 MODULE 2 Greenville, Nov. 17 ADVANCED - NEW! Charleston, Nov. 15 Columbia, Nov. 16

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RESTRICTIVE COVENANTS CAN SWING BOTH WAYS A 3-STEP PLAN TO AVOIDING LEGAL RISKS WHEN ONBOARDING NEW EMPLOYEES By Michael P. Elkon, Fisher Phillips LLP Atlanta

mployers have been using restrictive covenant agreements – contracts that contain non-compete, customer non-solicitation, employee non-solicitation, or non-disclosure of confidential information – with increasing frequency in recent times. Increased media attention on the practice of forcing lower-level employees to sign non-compete covenants, combined with the widely publicized report on non-compete restrictions issued by the Obama White House in its waning days, has led to an increase in the number of reported cases. Further, several states are passing new laws or considering changes to existing laws on the subject. These agreements can benefit your company by protecting key relationships, preserving your investment in training, and shielding confidential information from disclosure. The downside, however, is that recruiting talent into your organization has become more complicated because your competitors are likely also using restrictive covenant agreements. Thus, it is important to employ best hiring practices, especially with higher-level employees brought over from competitors. Here are three basic steps your company can take to reduce the chances of a lawsuit from a competitor, or at least put you in a favorable position if litigation is threatened.

South Carolina Agent & Broker • Fall 2017

Continued on Page 20 >>

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1. ASK QUESTIONS ON THE FRONT END Some employers take a “hear no evil, see no evil” approach with respect to restrictive covenants for incoming employees. While this can be a technical defense to a tortious interference claim, it is not a good overall legal strategy for several reasons. First, many courts will conclude that you should have asked questions about restrictive covenants on the front end, treating failure to do so as willful blindness. Second, your company is unlikely to be better off if it hires someone who soon gets saddled with a court injunction preventing that new employee from working for you. The lost training time, cost of finding a replacement, and the reputational effects of being defeated by a competitor can outweigh the value of sticking your head in the sand.

THE LOST TRAINING TIME, COST OF FINDING A REPLACEMENT, AND THE REPUTATIONAL EFFECTS OF BEING DEFEATED BY A COMPETITOR CAN OUTWEIGH THE VALUE OF STICKING YOUR HEAD IN THE SAND. Additionally, the information your company can gain by asking questions during the recruiting process could generate effective legal strategies. You might learn that the restrictive covenant itself, or the facts and circumstances surrounding an employee’s work and departure from a former employer, can create legal defenses. This is especially true given that state laws vary significantly with respect to restrictive covenants, some of which limit the enforceability and scope of them. Some common examples:

• Did the former employer terminate the employee without cause or demote the employee before departure? • Did the former employer engage in some form of illegal or unethical behavior that could form the basis of an unclean hands defense? • Has the former employer allowed other employees to leave and violate agreements without taking steps to enforce its contractual rights? Uncovering more information can be useful in creating legal defenses or, at a minimum, establishing leverage in the event you need to negotiate with a competitor regarding the employee’s move to your company.

2. STRUCTURE THE JOB ON THE FRONT END TO ENSURE COMPLIANCE The two most basic questions when considering hiring an employee subject to contractual limitations are: • Is the agreement enforceable, either as written or in a form in which a court is likely to modify? • Can you hire the employee in a way that will comply with the covenants? You can get answers to the first question by working with your lawyer to develop a list of probing questions to ask on the front end, as described above. You can get answers to the second question, and ensure compliance with any relevant restrictions, by structuring the incoming employee’s position in a thoughtful way. You should balance the demands imposed by any valid restrictive covenant with your business needs to get maximum productivity. Some basic ways to address restrictive covenant issues when crafting a position for a new employee include changing the employee’s duties and territory so they are not engaging in the same tasks or working the Continued on Page 22 >>

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South Carolina Agent & Broker • Fall 2017

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Whe n Assu re Al l ia n c e ap p ro a c h ed us a b o u t jo ining t h eir net wo r k we enjoyed t h e c o nver sation an d imme di a te ly fe l t ver y c o mfo r t a b l e wit h t h em. We d id n’t h ave a h u ge need fo r add it io nal c arr ie rs , b ut we were ve r y i ntr i g u e d wit h t h e o p p o r t un it y t o aggregat e o u r bo o k o f bu siness wit h o t h er member s to en han ce our c onti ng e nc y p l a n s . I t wa s ev id en t ver y qu ic k ly o nc e we jo ined t h at we were su rro u nd ed by q uality ag en c i e s, m a ny o f wh o m were l ea d ers in t h e ind u st r y in t h eir par t ic u lar par t o f t h e st at e and we were t h r il led t o be amo ng t h em. We’ve be e n m e m bers fo r jus t over 1 1 yea r s now and w h at we apprec iat e mo st is t h e c amar ad erie. Havin g a g roup of c ol l e a g u e s t h a t we c a n b o u n c e id e as o ff o f and c h ec k ind u st r y t rend s in t h eir mar kets has b een i nte gr a l a s we’ve grow n . B ein g par t o f a lar ge gro u p means safet y in nu mber s. As s ure Al l i a nc e wo rk s h a rd t o en s ure t h a t we h ave ac c ess t o lar ge, qu alit y c arr ier s and t h eir exp er tis e on the ba ck e nd wi th a s u p erb m a n a gemen t t eam h as been invalu able t o u s. Wit h Assu re Allianc e, we have a p ar t ner in su c c ess.

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same area as they did for their former employer; restricting the employee from soliciting clients with whom they were in contact on behalf of a former employer; and having the employee sell or provide products or services that are not competitive with those offered by a former employer. It is important to bear in mind that these restrictions are temporary, as restrictive covenants rarely last longer than two years. If you expect your new employee will be a benefit to the organization and will spend a long time with your company, one or two (or often fewer) years of restrictions is a reasonable price to pay to acquire a talented, hard-working person. This is a situation where long-term thinking is often rewarded.

3. EMPHASIZE THE IMPORTANCE OF PURGING ALL FORMER EMPLOYER MATERIALS In an era where a thumb drive can contain the equivalent of dozens of bankers boxes of documents, and the cloud allows for virtually limitless data storage, it is easy for employees to walk out the door with a massive amount of a former employer’s materials. Employees sometimes do so intentionally, but more often than not, the retention of materials is inadvertent. Nevertheless, it is easy work for computer forensic experts to find evidence that such materials were taken, so even inadvertent misappropriation can be costly.

YOUR CUSTOMERS. OUR PROMISE.

Accordingly, it is critical that you emphasize to incoming employees – both in writing and verbally – that they are to complete a thorough review of their possessions and return all such materials to their former employer. The review should include their home computer, external hard drives, thumb drives, cloud-based accounts (such as contacts in the iCloud), and the proverbial box of documents in the garage. Employees often have a limited sense of what belongs to their former employers and commonly make the “I-made-it-therefore-it-belongs-tome” mistake. You should be proactive to disabuse incoming employees of this notion because retention of former employer materials can create expensive lawsuits and accompanying headaches.

FCCI Insurance Group has been insuring businesses and doing what we say we’ll do for more than 58 years. We partner with our agents to provide expertise in underwriting, risk management and claims handling that help businesses thrive and face the future with confidence. Mike Noble, CPCU, AAI Senior Vice President Southeast Region FCCI Insurance Group

FREE COMPREHENSIVE CHECKLIST Our firm’s Employee Defection and Trade Secrets Practice Group has developed a free, comprehensive checklist for you to use when recruiting employees from a competitor. The checklist is a point-by-point way to reduce the chances of being sued. If you are interested, please reach out to your Fisher Phillips attorney, or any member of the practice group, and ask for a complimentary copy. Michael Elkon is a partner in the Fisher Phillips Atlanta office. He helps companies recruit talent from competitors in a legal fashion and ensures that former employees do not exploit companies’ key information and relationships. Elkon specializes in providing advice and handling litigation relating to covenants not to compete, non-solicitation and non-disclosure provisions, employee raiding, trade secrets, the duty of loyalty, deceptive trade practices under state and federal law, the Computer Fraud & Abuse Act (CFAA), and state computer protection statutes. For more information, contact the author at MElkon@fisherphillips. com or 404-240-5849.

South Carolina Agent & Broker • Fall 2017

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CYBERSECURITY

AGENTS COUNCIL FOR TECHNOLOGY

TOOLS FOR COMPLIANCE AND PROTECTION IN TODAY'S WORLD OF DATA BREACH AND CYBERCRIME 24

South Carolina Agent & Broker â&#x20AC;¢ Fall 2017

•

Because handling sensitive information is one of the most critical responsibilities faced by the modern independent insurance agency, the Agents Council for Technology has created a number of cyber resources for your agency. Their latest is Agency CyberGuide 1.0, a digital document that provides compliance resources for cybersecurity regulations. We’ve summarized in a print version below along with a description of the links and additional resources you can access on their website, www.iiaba.net/act.

ndependent insurance agents and brokers deal with sensitive client information every day. This puts the burden on agents and brokers to properly collect and protect this information while complying with state and federal regulations as well as adhering to customer service best practice standards. Handling sensitive information is now one of the most critical responsibilities faced by the modern insurance agency. Data breaches of large commerce businesses are in the news every day. In reality, small- to medium-sized agencies are not immune. Data breaches are occurring just as often in small businesses, and the results can be disastrous! Having to communicate to your entire client base that your system — which contains their sensitive personal data — has been lost to hackers or cybercrime can cripple a small business. The Agents Council for Technology (ACT) in cooperation with independent agent distribution entities has created the Agency Cyber Guide for Big “I” independent agents and brokers (print summary follows; download full up-to-date digital version on the ACT website – iiaba.net/act). Tools available in the full digital Agency Cyber Guide include a list of the major Federal and State regulations with clear descriptions and resources to address each one. Some of these resources are free while some are at a cost. ACT envisions this tool is to be a point-in-time “best practices” resource. Given the swift nature of change in technology and the increasing sophistication of cybercrime, this document will be updated periodically. Regulatory requirements and recommendations are to protect consumer information but are also in the agents’ best interest. Compliance can be tedious and onerous given the multifaceted responsibilities agents encounter daily, but yet agents must make it a priority. It is critical that agents and brokers 1. understand these requirements 2. begin to comply and protect 3. follow the road map to fully address all areas that apply to them

Below is a high-level overview of the federal Gramm-Leach-Bliley Act (“GLBA”) security measure regulations: • Access controls on customer information systems, including controls to authenticate and permit access only to authorized individuals and systems to prevent employees from providing customer information to unauthorized individuals who seek it through fraudulent means; • Access restrictions at physical locations containing customer information; • Encryption of electronic customer information, including when in transit or in storage on systems where unauthorized individuals may have access; • Procedures to ensure that customer information system modifications are consistent with an organization’s information security program; • Dual control procedures, segregation of duties and employee

•

• • •

background checks for employees with access to customer information; Monitoring of systems and procedures to detect actual and attempted attacks on or intrusion into customer information systems; Response programs for when an organization suspects or detects that unauthorized individuals have gained access to customer information systems; Measures to protect customer information from destruction, loss or damage by environmental hazards or technological failure; Training for staff to implement the security program; and Regular testing of the key controls, systems and procedures of the security program.

Costs and Penalties for Noncompliance Statistics show that 50 percent of small and medium-sized business have suffered a cyberattack in the past 12 months (through YE 2016) — this number will increase. The U.S. National Cyber Security Alliance found that 60 percent of small companies are unable to sustain their businesses six months after a cyberattack. According to the Ponemon Institute, the average price for small businesses to recover after their businesses have been hacked stands at $690,000. And for middle market companies, it’s over $1 million. Costs are not just relegated to lost business. Non-compliance with any regulations may come with a substantial penalty. Penalties vary by state, as do the data breach communication requirements. Penalties can be assessed as • Civil penalties per resident affected and/or per breach, • Additional penalties for actual economic damages, • Noncompliance also punishable by other state-specific deceptive trade practices laws, or as prescribed by a state attorney general. • It is important to note that the law that applies to the breach is the jurisdiction of the person whose data was breached, not the state where the breach occurred nor where the agent/broker is located. There are also required timelines for responses. These may carry penalties for each day of failure to provide notice of security breach. Bottom line: Non-compliance and lack of action can cost businesses dearly. Regulations, Descriptions, Resources Below are the current primary regulations along with resources for agencies to use to comply. It is a point-in-time snapshot, so be sure to check the ACT website (www.iiaba.net/act) for updated versions of the full digital Agency CyberGuide. Note that all regulations listed are critical to comply with GLBA, which also covers other emerging regulation such as New York Dept. Financial Services (NY DFS). These are considered “best practices” for agency security. Agencies doing business in the state of New York may apply for an exemption under the NY DFS 23 CRR 500 Act for some of the regulations. However, GLBA still applies. Details on NY DFS exemption eligibility and application are in the full digital version of the Agency CyberGuide.

1 Risk Assessment A risk assessment is the identification of hazards that could negatively impact an organization’s ability to conduct business. These assessments help identify inherent business risks and provide measures, processes and controls to reduce the impact of these risks to business operations. The assessment should include a risk mitigation checklist. Links/ resources available in the digital Agency CyberGuide include: Cyber Hygiene Toolkits for hardware and software and link to StaySafeOnline.org. Continued on Page 26 >>

Fall 2017 • South Carolina Agent & Broker

2 Written Security Policy A security policy is a document that states in writing how a company plans to protect physical and information technology (IT) assets. It can also be referred to as a “written information security policy” or WISP. The document must detail your agency’s operations for security, governance, inventories, controls, continuity and disaster planning and systems monitoring, including internal and external mitigation policies. Links/ resources available in the digital Agency CyberGuide include: ACT Cybersecurity Policy Template, Information Shield, FCCCyber Security Planning Guide.

3 Incident Response Plan An incident response is an organized approach to addressing and managing the aftermath of a security breach or attack (also known as an incident). The goal is to handle the situation in a way that limits damage and reduces recovery time and costs while complying with federal and state regulations. This includes communication/notices to state superintendent upon detection of a cybersecurity event and communication to customers, insurers, and third-party service providers. This plan is part of an overall written security plan (#2 above). Links/ resources available in the digital Agency CyberGuide include: Mitz-Levin Data Breach Guidelines by State, NCSL Securitty Breach Notification Laws by State, Guidance for Incident Response Plans.

4 Staff Training & Monitoring Training & monitoring is a critical regulation. Even if all other areas are in compliance, one misstep by agency personnel can expose data due to malware, phishing and other incursions. ACT strongly recommends that all businesses—regardless of size—comply with this regulation. Links/ resources available in the digital Agency CyberGuide include: Phishme.com (phishing simulator for agency training), KnowBe4 (security awareness training) and cybersecurity employee training guidelines from Travelers. IIABSC members should also see our website (iiabsc.com) for links to our partner Accurate Data Partners for affordable data security training programs.

5 Penetration Testing & Vulnerability Assesment

6 Access Control Protocol These protocols put your agency in compliance to regulations requiring restricted access to non-public information, including PII, PHI, PCI. Links/ resources available in the digital Agency CyberGuide include: FTC.Gov’s “How to Comply with the ‘Privacy of Consumer Financial Information Rule’ of the Gramm-Leach-Bliley Act.”

7 Written Security Policy for Third-Party Service Providers These are written policies and procedures designed to ensure the security of information systems and nonpublic information that are accessible to, or held by, third-party service providers. Note: The NAIC refers to this an “information security program.” This is an evolving issue with regulatory guidance to come. These elements for the NY DFS regulations do not take effect until March 1, 2019. We expect guidance on this soon. See ACT website (iiaba.net/act) for most up-to-date versions of the Agency CyberGuide that include more on this subject.

8 Encryption of Non-Public Information Encryption is the process of encoding a message so that it can be read only by the sender and the intended recipient. Non-Public Information refers to all electronic information that is not publicly-available information and for insurance purposes refers to PII (personally identifiable information), PHI (protected health information), and PCI (payment card industry data security standards). This regulation describes the need to encrypt and protect this data when in storage and when transferred between the insurance agency and its policyholders (email). Links/ resources available in the digital Agency CyberGuide include: What is Data Encryption and How to Get Started, 2017 Comparison of Data Encryption Software, ACT-TLS Email Encryption FAQs, ACT- Protect Your Clients with Secure Email Using TLS, ACT – Carriers with TLS Secure Email Enabled.

9 Designation of Chief Information Officer

Penetration testing (also called pen testing) is the annual practice of testing a computer system, network or web application to find vulnerabilities that an attacker could exploit. It should be done internally and externally. Vulnerability Assessment is a biannual process that defines, identifies and classifies the security holes (vulnerabilities) in a computer, network or communications infrastructure.

This is a title required by NY DFS for some agencies doing business in New York; nationally this role can be viewed as “Data Security Coordinator.”

Links/ resources available in the digital Agency CyberGuide include: Tutorials on the details of penetration and vulnerability assessment as well as links to vendors (Veracode, Illumant) offering security assessments among other software security testing tools.

10 Audit Trail

Links/ resources available in the digital Agency CyberGuide include: Agency CIO definition and duties from NY DFS regulation 500.05, page 5.

An audit trail (also called audit log) is an electronic trail that gives a step-by-step documented history of a transaction. It enables an examiner to trace the financial data from general ledger to the source document (invoice, receipt, voucher, etc.). The presence of a reliable and easy-tofollow audit trail is an indicator of good internal controls instituted by an organization and forms the basis of objectivity. For agencies, using your agency management system (with all other interfacing systems) provides a solid foundation for an audit trail. Links/ resources available in the digital Agency CyberGuide include: National Institute of Standards & Technology on Audit Trails.

South Carolina Agent & Broker • Fall 2017

11 Implementing Multi-Factor Authentication Multifactor authentication (MFA) is a security system that requires more than one method of authentication from different categories of credentials to verify the user’s identity for a login or other transaction. One example is a policyholder logging into an agency website and being requested to enter an additional one-time password (OTP) that the website’s authentication server sends to the policyholder’s phone or email address. Links/ resources available in the digital Agency CyberGuide include: SBC.com – Protect Your Small Business with Two-Factor Authentication and CIO.com – Making Multi-Factor Authentication Easy to Use.

12 Procedure for Disposal of Non-Public Information

APPENDIX See the full digital version of the Agency Cyber Guide (iiaba.net/act) for: • Details on Gramm-Leach-Bliley Act • NAIC Cybersecurity Recommendations, • Details of NY DFS 23 NYCRR 500 Regulations • Gramm-Leach-Bliley Privacy Law for Producers • List of cybersecurity vendors and their offerings • Big “I” Cyber Resources • McGuire/Woods Buyer’s Guide to Cyber Insurance

As with encryption, this regulation refers to all electronic information that is not publicly available, including PII, PHI and PCI. Improper document destruction is often a downfall of small business security. Regulations on this vary by state. Agents doing business in multiple states should adhere to the highest level of requirements. Keep in mind, there is a difference between complete disposal of information, and simply deletion. ACT recommends that you contact your agency management system vendor for their disposal protocol. Links/ resources available in the digital Agency CyberGuide include: National Conference of State Legislatures – Data Disposal Laws by State.

YOU’VE GOT THIS

Fall 2017 • South Carolina Agent & Broker

ACT RISK ADVISORY

CYBER LIABILITY INDUSTRY MATURITY INDEX: NOW

processes were not followed. • Decline in share value and business income. • Costs for post-breach implementations (firewall, encryption, security plans, etc.).

ECONOMIC IMPACT(S) According to the recently released study from the Ponemon Institute, the average economic impact per organization is more than $2.2 million, which is only expected to increase in years to come. Unfortunately, most organizations are unprepared to address new threats and lack adequate resources to protect their data. The largest writers of cyber liability according to FitchRatings. com are: American International Group, Inc. (AIG), accounting for approximately 22 percent of the market, Chubb Limited (CB) at 12 percent, and XL Group Ltd. (XL) at 11 percent.

The Agents Council for Technology provides the following from their “Changing Nature of Risk” series as background for strategic discussions. The series discusses hard trends of the industry with short call-toaction summaries that define each trend, list implications and offer recommended actions. In the past four to five years, the news of data breaches, hacks, ransomware and phishing have been pervasive. The potential impact of data breaches to compromise agency business, as well as the trust of their clients and partners should not be understated. The ACT Changing Nature of Risk work group provides the following as background for strategic discussions. Cyber Liability (also known as Cyberliability) is a type of insurance designed to cover consumers of technology services or products. More specifically, the policies are intended to cover a variety of both liability and property losses that may result when a business engages in various electronic activities, such as selling on the Internet or collecting data within its internal electronic network. Most notably, but not exclusively, cyber and privacy policies cover a business’ liability for a data breach in which the firm’s customers’ personal information, such as Social Security or credit card numbers, is exposed or stolen by a hacker or other criminal who has gained access to the firm’s electronic network. The policies cover a variety of expenses associated with data breaches, including: notification costs, credit monitoring, costs to defend claims by state regulators, fines and penalties, and loss resulting from identity theft. In addition, the policies cover liability arising from website media content, as well as property exposures from: (a) business interruption, (b) data loss/destruction, (c) computer fraud, (d) funds transfer loss, and (e) cyber extortion. It is important to remember that no two policies are identical and the terminology can often be confusing.

BROAD IMPLICATIONS / USES This coverage has applications across many spectrums of our lives: • Business lost during attack. • Loss of company assets. • Damage to reputation. • Litigation. • Protection costs: staff, firewalls, encryption and software. • Notification to affected customers. • Potential loss of customers. • Potential state and federal fines if security plan and other required

South Carolina Agent & Broker • Fall 2017

Cyber-related insurance coverage represents a significant growth opportunity for P/C insurers. Insurance broker Marsh & McLennan Companies, Inc. (MMC) estimated that in 2014 the global insurance market wrote approximately $2 billion in cyber insurance premiums, which could multiply by a magnitude of three to five times by 2020. Aggregating the cybersecurity statutory supplement data for the U.S. property/casualty (P/C) insurance industry finds that approximately 120 insurance groups reported writing cyber coverage in 2015 totaling approximately $1 billion in direct written premiums volume. Fitch analyzed cyber insurance market share and performance in a new special report, ‘U.S. Cyber Insurance Market Share and Performance’ that analyzes data from a new 2015 statutory supplement to compile company and industry statistics on cyber insurance. Three ways companies can most improve their reaction towards trying to minimize an impact to their operation: 1. Detect incidents sooner. 2. Contain them faster after detection. 3. Keep good logs to facilitate a more precise determination of what occurred before the attack was stopped and how to prevent them in the future.

INSURANCE INDUSTRY IMPLICATIONS Cyber Liability can have positive and negative impacts to many areas of our industry. Positive Impacts • Providing coverages to the marketplace allows businesses and individuals to protect their assets. • Stabilizing exposures and thereby providing a more stable marketplace. • Overall reduction of data breach costs. Negative Impacts • No standard industry form on which cyber liability policies are written. • Forensic investigation expenses. • Business interruption or extra expense due to system downtime. • The cost of notification and other breach response activities. • PCI fines, penalties and/or assessments. • Various Regulatory action defense, fines and penalties. • Significant business clientele loss post-reporting.

RECOMMENDED ACTIONS For Agents

• Understand that there are federal and state regulations that your clients must be prepared to meet. Members, view Agency Cyber Guide 1.0 for more information.

• Clients must keep abreast of who is holding them responsible for data they manage. • Secure all devices, including smartphones and tablets. Keep in mind your devices as well as how you connect to your network and know what data is stored on the various devices. • Know where your data is, even though the outsourcing agreement may include a requirement for the vendor to meet PCI security standards, don’t assume data is safe. Businesses also should ask about the physical security at the data storage center as well as information security. • Monitor continuously. Educate your clients that they are ultimately responsible for meeting those standards; it does not matter if the company outsourced their data management. Just signing a contract isn’t enough to say “I am covered.” Educating the buyers of Cyberliability insurance as to their obligations in meeting the policy’s minimum requirements to maintain that insurance is very important. • Business clients must understand the software they are using, its security measures and vulnerabilities. Remind your clients to have policies and procedures to update the software whenever updates are available and to ensure that those policies and procedures are followed correctly and promptly by all employees. For Carriers • Investigate offering coverages across spectrum of impact. Provide the coverages that will help insure a policyholder will have the services and coverages needed in order to handle an event. Update coverages and limits as the marketplace changes. Provide training to agents, keeping the training current at all times. For Vendors • Ensure management, quoting, and contact systems have the ability to handle these as specialty products. Place the proper controls and provide assistance to your agents to educate them on your capabilities. Provide ongoing and updated training.

EVOLVING TECHNOLOGY CAUTION Security is a moving target that requires continually revisiting standards and best practices. Make sure that hardware and software are up to date and appropriate patches are installed. W-Fi should be secured and encrypted. Back up your data. See ACT’s recommendations and resources on our Security & Privacy webpage.

Precision, Quality and Service

Manufacturing Coverage Manufacturers understand how important precision, quality and service are to their customers. At Berkley Southeast Insurance Group, we can help you deliver just that for your manufacturing customers’ insurance needs. We have the same high standards when it comes to providing the right coverage and responsive service to our customers. And if a loss does occur, our claim professionals are there to help them get back-in-business quickly.

Why Choose BSIG

• Comprehensive Coverages –we have the right product to fit the needs of your clients • Specific coverages and endorsements unique to the manufacturing industry, such as: » Manufacturers General Liability Ultra Endorsement » Manufacturer’s Errors or Omissions Coverage • Exclusive access to our Privacy Breach preparation and crisis management portal

Our Claims Commitment

• 24/7/365 loss reporting and emergency response • Accelerated Auto and Property estimating and repair options • Highly skilled litigation specialists to help protect customer’s assets in a lawsuit • Workers compensation programs to help injured employees return to work more quickly

Want to Know More?

Contact Your Local Underwriter or Territory Manager.

CALL TO ACTION • Assess your situation and get a professional evaluation of your security risk. • Be familiar with relevant federal, state and local laws and requirements (State Data Security Breach Notification Laws – Mintz Levin). • Establish a plan that addresses prevention, resolution, restitution and implementation of best practices to reduce your security risk exposure. • Educate your employees on your company’s privacy policy, passwords, email usage, mobile device policy, safe webbrowsing and social media policy. Authors: J Ted Joyce, Kathleen Weinheimer, Ron Berg

Your Back-in-Business Insurance Company™

berkleysig.com Berkley Southeast Insurance Group is a member company of W. R. Berkley Corporation, whose insurance company subsidiaries are rated A+ (Superior) by A.M.Best. Products and services are provided by one or more insurance company subsidiaries of W. R. Berkley Corporation. Not all products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. ©2017 Berkley Southeast Insurance Group. All rights reserved.

Fall 2017 • South Carolina Agent & Broker

NAVIGATING THE NEW HOW TO AVOID E&O CLAIMS FROM NEW PRODUCTS By Barbara Rocco & Kristina Miller, Swiss Re Corporate Solutions

An ancient proverb would have us believe “there’s nothing new under the sun.” That may have been true once upon a time, but it certainly doesn’t apply to modern insurance markets. As new risks continue to emerge at a dizzying pace, new insurance products are cropping up constantly. And even a veteran insurance agent can run into trouble placing these new coverages. The following are three ways to protect yourself from an errors & omissions claim when dealing with new products. 1. Understand your client’s changing needs. This means asking the right questions, listening to the answers and following up appropriately. It also means documenting every time you recommend a new insurance coverage or limit to a client, along with the client’s response. Clients often use questions left hanging to hang E&O claims on agents. 2. Study the policy terms and conditions. How do they affect the insured’s business? In jurisdictions and situations that involve a “duty to advise,” the agent-insured relationship cannot operate in a vacuum. Communication is always a two-way street. Context is key here. Is this a new business or an ongoing concern? A new policy or a replacement? If the latter, think about how the new policy will address old business. Review coverage differences between the expiring

and new policies, paying particular attention to gaps and changes. Then, communicate and document that you discussed these differences with the client, and that they selected them. For example, when dealing with “claims made and reported” professional liability policies, encourage clients to list all incidents on the application. That way, if an incident needs to be reported to an expiring carrier, such notice is timely. In order to keep lines of communication open with clients, be responsive and helpful to all client inquiries. 3. Report claims to all carriers. What if you and your client only meet about a new risk after a loss has already occurred? Existing coverages and policy forms can be slow to adapt to new exposures, so even after a loss has occurred, it can be hard to determine what will cover it and what will not. Don’t try to answer those questions yourself. Instead, simply direct the insured to submit the claim to every carrier that might provide coverage. Barbara Rocco and Kristina Miller are assistant vice presidents and claims specialists with Swiss Re Corporate Solutions and work out of the Chicago office. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re.

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South Carolina Agent & Broker • Fall 2017

TIME TO OFFER CYBER COVERAGE TO ALL SMALL BUSINESS CLIENTS COVERAGE FOR JUST ABOUT EVERY SMALL BUSINESS IS AVAILABLE QUICKLY AND EASILY TO MEMBERS THROUGH BIG “I” MARKETS By Big “I” Advantage

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

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

HOW TO MARKET CYBERLIABILITY At a minimum, email every small business in your client roster to offer coverage. We’ve done the work for you and provided a concise sample letter outlining the product features. Mail the letter through USPS or use it as a reason to check in with a phone call or personal visit. Coverage is “primary to other.” If your client asks for more coverage, offer consultation after providing instant protection. You also have access to industry leader Travelers Wrap+ through Big “I” Markets if higher limits are desired.

ENJOY A SIMPLE SALES PROCESS Binding could not be easier. Members receive 15 percent commission, the ease of direct billing and the confidence that comes with using an insurer rated “A” with A.M. Best. Go to Big “I” Markets website (www.bigimarkets.com), choose cyber liability - small business solution (under Commercial lines products) and provide a customer email in the quote request function. BIM takes care of the rest. We collect the application and $200 premium via credit card directly from the

customer and pay you. The policy and certificate are available within 24-48 hours after payment has been processed. We post a signed application on BIM, and a dedicated web page is available for self-print of the certificate and policy.

PROTECT YOUR E&O Document, document, document! After sending your initial marketing letter, ask for a signed declination via DocuSign. We have created a sample form that you can customize with your agency name. If your client doesn’t return the form, use a DocuSign message to document that the offer was sent. If nothing is returned, your file will look strong in the event of a claim. “We want every policyholder in the Big “I” Professional Liability program (and indeed, every Big ‘I’ member) to offer Cyberliability coverage to all their small business clients,” said Jim Hanley, Big I Advantage® Director of Risk Management. ”Doing so will minimize the top source of E&O claims (the “failure to offer,”) and provide better protection to your valued clients.” Questions? Learn more about accessing Big “I” Markets through FAQs on our website(www.iiabsc.com) under “Products.” View current product offerings and underwriting details on the Big “I” Markets website (www.bigimarkets.com) or email bigimarkets@iiaba.net.

For Dwelling Fire/Mobile Home Insurance, put your trust in a company that has been insuring homes for over 50 years. National Security Can Provide You With: • $125,000 Maximum Policy Limits • AAIS Basic Form 1 Policy • Direct Contract with National Security • 15% New & Renewal Commission • Partnership Profit Sharing • Fast Online Policy Issuance • Tenant Schedule Option • Easy Payment Options National Security has provided competitive, affordable insurance to policyholders for over 50 years, but we also provide a lot for our agents, with competitive commissions, excellent customer service and experienced company adjusters. As an admitted Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company, and online access for all agents, providing fast quotes, online policy issuance, online dec page printing, and real-time policy information.

We are now accepting new appointments. Find out more by calling Sharon at 1-800-239-2358 x213 or visit nationalsecuritygroup.com.

Elba, Alabama

Fall 2017 • South Carolina Agent & Broker

COULD YOUR AGENCY WEATHER A DATA-SECURITY BREACH? ONLY 20 PERCENT OF BUSINESSES TO EXPERIENCE ONE SURVIVE

IIABSC has partnered with Arlington/Roe & Co., Inc. to offer members an exclusive program to help protect their agencies from data security breaches. It offers the following benefits: • • • • • • • • • • • • • • • •

IIABSC/IIABA members only No encryption required HIPAA compliance tools Step-By-Step compliance procedures Newsletters on data security management Data-breach coach to help with notification Forensic investigators Privacy counsel Call center Credit restoration services Staff training programs Regulatory fines and penalties coverage Public Relations coverage Notification costs outside liability limits Credit monitoring Security & privacy liability

Continued on Page 34 >>

South Carolina Agent & Broker • Fall 2017

Fall 2017 â&#x20AC;¢ South Carolina Agent & Broker

Responding to a data breach is a costly and complicated process requiring assistance from many different professionals. The average cost of notification-law compliance is $200,000, and failing to notify affected individuals “without unreasonable delay” could cost your agency up to $1.5 million in fines. All that with the legal liability and the reputational harm caused by the breach, and it’s not hard to understand how 80 percent of businesses that experience a data breach end up going out of business as a result. View our Cyberliability webpage (Under “Other Coverage for your Agency”) for pricing sheet and application. Contact Director of Member Services Megan Thomas (mthomas@iiabsc.com) for more information.

THE FOLLOWING INCREASES YOUR AGENCY’S CYBERLIABILITY EXPOSURE • Employees • Keeping employee records • Client records containing third-party corporate information (like company financials) • Personal lines business • Premium financing business • Computers, back-up tapes, a copier, a fax machine

CAUSES OF THE MORE THAN 563.9 MILLION RECORDS BREACHED SINCE 2005 56% Hacking or malware – Electronic entry by an outside party. 30% Portable device – Lost, discarded or stolen laptop, PDA, smartphone, portable memory device, CD, hard drive, data tape, etc. 6% Insider – Someone with legitimate access intentionally breaches information, such as an employee or contractor. 4% Unintended disclosure – Sensitive information posted publicly on a website, mishandled or sent to the wrong party via email, fax or mail. 1% Stationary device – Lost, discarded or stolen stationary electronic device such as a computer or server not designed for mobility. 1% Payment card fraud – Fraud involving debit and credit cards that is not accomplished via hacking. For example, skimming devices. 1% Physical loss – Lost, discarded or stolen non-electronic records, such as paper documents. 1% Unknown / other Source: Privacy Rights Clearinghouse, 10/18/2012

FIND ALL YOUR INSURANCE NEEDS IN ONE PLACE

South Carolina Agent & Broker • Fall 2017

Fall 2017 â&#x20AC;¢ South Carolina Agent & Broker

Sponsors Diamond

Cornerstone National Ins. IIABSC Agency Johnson & Johnson Progressive Insurance

Platinum

Heritage Insurance Company Liberty Mutual Insurance Lighthouse Property Ins. Cos.

Gold

Bankers Insurance Group Centauri Specialty Ins. Co. Gulfstream Property & Casualty, Inc. Jackson Sumner & Associates Motorists Insurance Group Preferred Specialty, LLC St. Johnâ&#x20AC;&#x2122;s Insurance Company UPC Insurance Co.

Silver

AFCO/Prime Rate Premium Finance Allstar Financial Group AMERISAFE Assure Alliance, Inc Builders Insurance Group Centauri Insurance Coastal Select Ins & Geovera Specialty Insurance Co. Frontline Insurance

South Carolina Agent & Broker â&#x20AC;˘ Fall 2017

Imperial PFS Markel Specialty The Main Street America Group The National Security Group Prime Insurance Company Risk Placement Services Safeco Insurance SCU Southern Ins. Underwriters Travelers Wright Flood

Bronze

Access Accident Fund Insurance Allstate Insurance Company Auto-Owners Insurance Co. Berkshire Hathaway GUARD Ins. Capitol Preferred Ins. Co. & Southern Fidelity Central Insurance Companies Frankenmuth Insurance Genesee General Hanover Excess & Surplus Hull & Co. Inc. Insurance House J.M. Wilson Mid-Continent Group Penn National Insurance Risk Innovations Sentry Insurance Southern Mutual Insurance Co. State Auto Insurance Co. Stonewood Insurance Company Tapco Underwriters, Inc. Universal North America

Fall 2017 â&#x20AC;¢ South Carolina Agent & Broker

SC Trusted Choice® Big “I” National Championship

June 26–27, 2017 Orangeburg Country Club Orangeburg, SC

George Eubanks, Jr., 18, of Spartanburg, S.C., and Smith Knaffle, 15, of Murrells Inlet, S.C., each topped their respective divisions of the SC qualifier of the Trusted Choice Big “I” National Championship junior golf tournament held June 26 – 27 at the Orangeburg Country Club in Orangeburg, S.C. Eubanks finished the second day five under with a total score of 139. Knaffle finished with 144. Second place went to Levi Moody, 17, of Greenville, S.C., who finished two under with a final score of 142. Third place went to Ethan Willis , 18, of Mount Pleasant, S.C, with a final score of 145. Second place of the girls division went to Jensen Castle, 16, of West Columbia, S.C., with a final score of 149. All five teens advanced to the Trusted Choice Big “I” National Championship held Aug. 7-10 at the Annandale Golf Club in Madison, Miss. They were joined by Jacob Bridgeman, 17, of Inman, S.C. and Nick Willis, 17, of Cowpens, S.C., who both had previously qualified to play in the national tournament. Normally four rounds with cuts after the second round, the national tournament was cut to only two rounds after three weather delays. Jacob Bridgeman finished in the top 10 of his division, qualifying him for play in the 2018 tournament, to be played at the Daniel Island Club in Charleston, SC, and hosted by our association!

View photos and final results at www.iiabsc.com/jrgolf

South Carolina Agent & Broker • Fall 2017

Skimping on your agency risk management efforts and ...hoping for the best?

A little risk management goes a long way in protecting your future. One false move can land your agency in court facing a professional liability lawsuit, costing you valuable time, energy and resources. But many common missteps can be easily avoided. Big “I” Professional Liability provides the E&O Happens Risk Management Website, featuring more than 700 pages of insurance agency risk management information, available exclusively, and at no cost, to Big “I” members. Features include:      

Claim examples Risk management articles E&O Claims Advisor newsletters Sample disclaimers Sample customer letters Webinars and podcast archive

Log into www.iiaba.net/EOHappens.

Fall 2017 • South Carolina Agent & Broker

Calendar

— CLASSROOM COURSES WEBCAST/WEBINAR - no test required for CE Credit —

View up-to-date calendar, course descriptions and register using our online Education & Event Calendar at www.iiabsc.com/education

October

Business Auto Claims that Cause Problems, 2 hrs. P&C

Guy in the Bar is Back, 3 hrs. P&C

Estate Planning Techniques, Options & Opportunities, 2 hrs. L&H

Directors & Officers Liability Insurance, 2 hrs. P&C

Rental Cars: More than Meets the Eye, 2 hrs. P&C

Data Privacy Insurance, 2 hrs. P&C

Innovations in Long Term Care Funding, 3 hrs. L&H

CISR Personal Residential Property, Charleston, 7 hrs. P&C

Data Privacy Insurance, 2 hrs. P&C

The Customer Service Experience, Greenville, 6 hrs. P&C

Liability Issues to Worry About: Indemnity Agreements, Addl Insureds, 2 hrs. P&C

15-17 IIABSC Annual Convention, Myrtle Beach, up to 5 hrs. L&H or P&C 17

Agent Friendly Endorsements for CGL and BAC Forms, 2 hrs. P&C

Insuring Condominiums, 2 hrs. P&C

Those Kids and Their Cars, 2 hrs. P&C

Business Income Beyond the Basics, 3 hrs. P&C

Personal Lines Claims that Cause Problems, 2 hrs. P&C

Top 10 Workers Comp Risks Employers Unknowingly Assume, 2 hrs. P&C

BAP Symbols and Endorsements, 1 hr. P&C

Insurance & BBQ: The Hidden Connection, 3 hrs. P&C

Hot Topics in Personal Lines, 2 hrs. P&C

Surplus Lines SC License Review Class, 3 hrs. P&C

National Flood Insurance Program Basic Course-2016, 2 hrs. P&C

Drones – Problems, Solutions & Insurance, 3 hrs. P&C

Workers Comp Beyond the Basics, 3 hrs. P&C

E&O Mock Trial, 2 hrs. P&C

Home Based Business Exposures, 2 hrs. P&C

AIAM Day 5 Regulation& Politics/Leadership, Greenville, 6 hrs. P&C

The E-world for Insurance Professionals, 3 hrs. P&C

AIAM Day 6 Ethics/Changing Attitudes, Hilton Head, 2 hrs. P&C and 3 hrs. Ethics

Professional Ethics in the Insurance Industry, 3 hrs. Ethics

Ethical Issues Personal & Organizational, 3 hrs. Ethics

Earthquake Basics: Shake, Rattle & Roll with it, 1 hr. P&C 24

CISR Commercial Casualty I, Greenville, 7 hrs. P&C

Personal Lines Myths – Part I, 1 hr. P&C 24

Commercial Lines Myths – Part I, 1 hr. P&C

Certificates of Insurance Emerging Issues, 3 hrs. P&C

South Carolina Agent & Broker • Fall 2017

CISR Commercial Casualty I, Charleston, 7 hrs. P&C

COPE Property Underwriting & Effective Loss Control, 2 hrs. P&C

Earthquake Basics: Shake, Rattle & Roll with it, 1 hr. P&C

Rental Cars: More than Meets the Eye, 2 hrs. P&C

Surplus Lines SC License Review Class, 3 hrs. P&C

Ultimate Account Manager-Module 1, Charleston, 6 hrs. P&C

Drones – Problems, Solutions & Insurance, 3 hrs. P&C

Innovations in Long Term Care Funding, 3 hrs. L&H

E&O Roadmap to Policy Analysis Part I, 3 hrs. P&C

Directors & Officers Liability Insurance, 2 hrs. P&C

E&O Roadmap to Policy Analysis Part II, 3 hrs. P&C

Data Privacy Insurance, 2 hrs. P&C

Ultimate Account Manager-Advanced, Charleston, 6 hrs. P&C

CISR Dynamics of Service, Florence, 7 hrs. P&C or L&H

Ultimate Account Manager-Advanced, Columbia, 6 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part I, 3 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part II, 3 hrs. Ethics

E&O Roadmap to Policy Analysis Part I, 3 hrs. P&C

E&O Roadmap to Policy Analysis Part II, 3 hrs. P&C

E&O Roadmap to Policy Analysis, Columbia, 6 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part I, 3 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part II, 3 hrs. Ethics

26 26

November 01

Business Income Beyond the Basics, 3 hrs. P&C

1-3

CIC Agency Management, Hilton Head, 16 hrs. P&C or L&H and 4 hrs. Ethics 16

Agency Management Based E&O and Ethics, 3 hrs. Ethics

Top 10 Workers Comp Risks Employers Unknowingly Assume, 2 hrs. P&C

BAP Symbols and Endorsements, 1 hr. P&C

Insurance & BBQ: The Hidden Connection, 3 hrs. P&C

Ultimate Account Manager-Module 2, Greenville, 6 hrs. P&C

The E-world for Insurance Professionals, 3 hrs. P&C 20

Retirement Planning and Annuities Update, 2 hrs. L&H

Professional Ethics in the Insurance Industry, 3 hrs. Ethics 21

Guy in the Bar is Back, 3 hrs. P&C

Agent Friendly Endorsements for CGL and BAC Forms, 2 hrs. P&C

Commercial Property Endorsements That Can Make You Money, 2 hrs. P&C

Certificates of Insurance Emerging Issues, 3 hrs. P&C

Commercial Lines Claims that Cause Problems, 2 hrs. P&C

Hot Topics in Personal Lines, 2 hrs. P&C 28

Long Term Care Insurance, 2 hrs. L&H

National Flood Insurance Program Basic Course-2016, 2 hrs. P&C

Commercial Lines Myths – Part I, 1 hr. P&C

CISR Personal Lines Misc., Rock Hill, 7 hrs. P&C

Building Codes are BAD for Your Insureds, 2 hrs. P&C

Personal Lines Myths – Part I, 1 hr. P&C

E&O Risk Management, Meeting the Challenge of Change Part I, 3 hrs. P&C

Insurance and the Property Lease, 2 hrs. P&C 28

Top 5 Life Insurance Uses, 2 hrs. L&H

E&O Risk Management, Meeting the Challenge of Change Part II, 3 hrs. Ethics

Fall 2017 • South Carolina Agent & Broker

E&O Roadmap to Policy Analysis Part I, 3 hrs. P&C

E&O Roadmap to Policy Analysis Part II, 3 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part I, 3 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part II, 3 hrs. Ethics

E&O Roadmap to Policy Analysis Part I, 3 hrs. P&C

E&O Roadmap to Policy Analysis Part II, 3 hrs. P&C

December

AIAM Day 3 Negotiating Conflict/Professional Relationships, Columbia, 6 hrs. P&C

CISR Elements of Risk Management, Columbia, 7 hrs. P&C

Personal Lines Myths – Part I, 1 hr. P&C

E&O Mock Trial, 2 hrs. P&C

Workers Comp Beyond the Basics, 3 hrs. P&C

Rental Cars: More than Meets the Eye, 2 hrs. P&C

Directors & Officers Liability Insurance, 2 hrs. P&C

Data Privacy Insurance, 2 hrs. P&C

Agent Friendly Endorsements for CGL and BAC Forms, 2 hrs. P&C

Business Auto Claims that Cause Problems, 2 hrs. P&C

Estate Planning Techniques, Options & Opportunities, 2 hrs. L&H

Top 10 Workers Comp Risks Employers Unknowingly Assume, 2 hrs. P&C

Insurance & BBQ: The Hidden Connection, 3 hrs. P&C

Guy in the Bar is Back, 3 hrs. P&C

The Customer Service Experience, Columbia, 6 hrs. P&C

Home Based Business Exposures, 2 hrs. P&C

E&O Roadmap to Policy Analysis, Charleston, 6 hrs. P&C

BAP Symbols & Endorsements, 1 hr. P&C

Ethical Issues Personal & Organizational, 3 hrs. Ethics

Commercial Lines Myths – Part I, 1 hr. P&C

Certificates of Insurance Emerging Issues, 3 hrs. P&C

Hot Topics in Personal Lines, 2 hrs. P&C

Insuring Condominiums, 2 hrs. P&C

National Flood Insurance Program Basic Course-2016, 2 hrs. P&C

AIAM Day 4 How Not to Get in Trouble with Your Mouth, Greenville, 2 hrs. P&C and 4 hrs. Ethics

E&O Risk Management, Meeting the Challenge of Change Part I, 3 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part II, 3 hrs. Ethics

The E-world for Insurance Professionals, 3 hrs. P&C

Professional Ethics in the Insurance Industry, 3 hrs. Ethics

Business Income Beyond the Basics, 3 hrs. P&C

E&O Roadmap to Policy Analysis Part I, 3 hrs. P&C

Earthquake Basics: Shake, Rattle & Roll with it, 1 hr. P&C

E&O Roadmap to Policy Analysis Part II, 3 hrs. P&C

Surplus Lines SC License Review Class, 3 hrs. P&C

Personal Lines Claims that Cause Problems, 2 hrs. P&C

Drones – Problems, Solutions & Insurance, 3 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part I, 3 hrs. P&C

Certificates of Insurance Emerging Issues, 3 hrs. P&C

Liability Issues to Worry About: Indemnity Agreements, Addl Insureds, 2 hrs. P&C

E&O Risk Management, Meeting the Challenge of Change Part II, 3 hrs. Ethics

E&O Roadmap to Policy Analysis Part I, 3 hrs. P&C

E&O Roadmap to Policy Analysis Part II, 3 hrs. P&C

Those Kids and Their Cars, 2 hrs. P&C

South Carolina Agent & Broker • Fall 2017

“I VALUE MY RPS RELATIONSHIP” – RUMANA HAQUE BULLDOG INSURANCE At Risk Placement Services (RPS), we are committed to building relationships one retail partner at a time. Our stewardship begins by providing you access to the finest markets and top producers in the industry and providing customized solutions to meet your needs by designing, negotiating and tailoring individual risks that help you succeed. It’s a partnership you can count on! To learn more contact Ben Hoover 843.540.3209 or email at Ben_Hoover@rpsins.com. RPSins.com

Fall 2017 • South Carolina Agent & Broker

Member News

WELCOME NEW MEMBERS AGENCY MEMBERS

The Alexander Insurance Group, LLC Columbia Chris Bagwell Insurance, LLC Lexington

Congratulations to Bob Moseley (left) of member Irmo Insurance Agency in Irmo, for being honored on July 27 with the Order of the Palmetto by Gov. Henry McMaster (right). Bob founded Irmo Insurance Agency just outside of Columbia in 1976. The Order of the Palmetto is considered the highest civilian honor in the State of South Carolina, recognizing a lifetime of achievements and contributions to the State of South Carolina “and her people.”

South Carolina Agent & Broker • Fall 2017

Iron Gate Associates, LLC Myrtle Beach Jones Benefits, LLC Camden Lake Agency SC, LLC Surfside Beach

Cypress Insurance Advisors, LLC Charleston

Oak Insurance Services, LLC Simpsonville

East Coast Insurance Group, LLC Summerville

Palmetto and Crescent Insurance, LLC Pamplico

Hardee Insurance Group, Inc. Conway

Pinsurance Corp. Conway

Hurd Insurance Agency, LLC Camden

ASSOCIATE MEMBERS All Risks Ltd. Charlotte, N.C.

IIABSC PARTNER FEATURED IN RECENT INSURANCE BUSINESS AMERICA MAGAZINE EDITION Robert Sanders Jr. of Preferred Specialty, LLC (Gold-level IIABSC Palmetto Partner) was featured along with the University of South Carolina’s Risk Management and Insurance program in the summer “Brokers on Carriers” edition of Insurance Business America magazine. In “The Next Generation of Leaders” article, Sanders talked about what the millennials he’s worked with are looking for when job hunting and the effort required to make sure that the knowledge of those on their way out of the industry gets transferred to the new talent in the workforce. Read it now online at https://issuu.com/keymedia/docs/iba_5.07_emag/38.

Bankers Insurance Group Centauri Specialty Ins. Co. Gulfstream Property & Casualty Jackson Sumner & Associates Motorists Insurance Group Preferred Specialty, LLC St. Johnâ&#x20AC;&#x2122;s Insurance Company UPC Insurance Co.

Access Accident Fund Ins. Co. of America Allstate Insurance Company Auto-Owners Insurance Berkshire Hathaway GUARD Ins. Capitol Preferred Ins. Co. & Southern Fidelity Central Insurance Companies

AFCO/Prime Rate Premium Finance Allstar Financial Group AMERISAFE Assure Alliance, Inc. Builders Insurance Group Frontline Insurance Geovera Specialty Ins. Co. & Coastal Select Imperial PFS

Frankenmuth Insurance Genesee General Hanover Excess & Surplus Inc. Hull & Co. Inc. Insurance House J.M. Wilson Mid-Continent Group Penn National Insurance

The Main Street America Group Markel Specialty National Security Fire & Casualty Prime Insurance Company Risk Placement Services Safeco Insurance SCU Southern Ins. Underwriters Travelers Wright Flood

Risk Innovations Sentry Insurance Southern Mutual Insurance Co. State Auto Insurance Company Stonewood Insurance Company Tapco Underwriters, Inc. Universal North America Fall 2017 â&#x20AC;˘ South Carolina Agent & Broker

2017 Board of Directors Executive Committee

Directors

Chairman R. Scott Moseley Irmo Insurance Agency Irmo, SC scott@irmoins.com

National Director Jules Anderson, AAI Anderson Insurance Associates Charleston, SC janderson@aiasc.com

William C. Carter, CIC (Cooper) Pinckney-Carter Company Charleston, SC cooper@pinckneycarter.com

Robert E. Nalley (Robbie) Creech Roddey Watson Ins Sumter, SC rnalley@crwins.com

Chairman Elect/ Treasurer Tom Bates, Jr. Herlong Bates Burnett Greenville, SC tom@hbbins.com

Immediate Past Chairman Kenneth A. “Ken” Finch, CPCU, CIC, CRM, AAI Adams Eaddy & Associates kfinch@adamseaddy.com

Robert W. Hammett, AIP (Rob) CWS Insurance Agency Inc. Spartanburg, SC rob@cwsinsurance.com

Tonya S. Thomason, CIC David A. Crotts & Associates Greenwood, SC tonya.thomason@dcrotts.com

Carrie Johnson, ChFC, CLU, AAI Carrie Johnson Insurance Murrells Inlet, SC cj_ins@sccoast.net

Matthew B. Wiseman, CIC CISR (Matt) Peoples Underwriters Inc Myrtle Beach, SC mattw@peoplesunderwriters.com

Andrew E. Muller, CIC, AAI, CWCC, PRIS Mappus Insurance Agency Inc. Charleston, SC andrew@mappusinsurance.com

Teresa C. Yount, CPCU, CIC, CRM, AINS, CPIW Correll Insurance Group Spartanburg, SC tyount@correllinsurance.com

Secretary James G. Taylor, Jr., CIC (Jay) Kinghorn Ins Agency of Beaufort Beaufort, SC jtaylor@insurancebeaufort.com

Benjamin C. Myers, AIP (Ben) Russell Massey & Co. Inc. Columbia, SC ben@russellmassey.com

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South Carolina Agent & Broker • Fall 2017

contact Rhett Orr phone 803-403-6761 email rorr@upcinsurance.com upcinsurance.com

Fall 2017 â&#x20AC;¢ South Carolina Agent & Broker

The ISU Unique Competitive Advantageâ&#x201E;˘ Awarded only to qualified, well established and highly successful Independent Agencies with at least $1,000,000 of revenue.

The ISU Insurance Agency Network is a nationwide community of fiercely independent Agents committed to one anotherâ&#x20AC;&#x2122;s mutual success and united by strong fellowship, common attitudes, interests and goals.

Call to request a no obligation exploratory discussion T. J. Ryan, III Charleston, SC 843-416-4953 www.joinisu.com