Maryland Primary Agent - February 2020

FEBRUARY 2020 | MARYLAND

KEVIN AMRHEIN

IA&B’S EDUCATION CONSULTANT TALKS TRAINING TRENDS

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IN THIS

8 ON THE COVER: Q&A WITH KEVIN AMRHEIN IA&B Education Consultant Kevin Amrhein talks insurance education trends and golf.

10 CYBER RISK & TIME ELEMENT

Preview IA&B’s upcoming coverage trend class on what commercial lines producers need to know to protect their customers’ livelihood.

18 IS YOUR WEBSITE ADA COMPLIANT YET?

Examine what accessibility means to you as an agent – and how doing nothing to address your website’s accessibility puts you at risk.

IN EVERY ISSUE 2 3 4 6 15 15 16 21 21

Chair of the Board’s Message Don’s Discussion Preventing Errors & Omissions News & Notes New Members IA&B Partners Pics & Posts Training & Education Classified Ads

CONNECT WITH US: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B

CYBER RISK & TIME ELEMENT

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About IA&B IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware.

Periodical postage paid at Mechanicsburg, Pa. and at additional mailing offices.

Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2020-2, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2020. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.

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CHAIR OF THE BOARD’S MESSAGE

BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS

WHAT KEEPS AGENCY OWNERS UP AT NIGHT?

5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

Chair of the Board

Craig S. Mader Crofton, MD

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Vice Chair of the Board

Richard M. Rankin, CIC

hat keeps you, as an independent agency owner, awake at night?

Chances are that your stressors are similar to mine … which are similar to those of the agency principal down the street … which are similar to those of the agency owner across town.

Market access. Talent recruitment. Technology. Employee management.

Marketing, Retention. Competitive position.

MEMBERS

Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Andrew Enders, Esq. Harrisburg, PA

Any of those strike a chord with you? Admittedly, a few raise my blood pressure.

Michael P. Ertel Sr.+

Last fall, IA&B brought together a number of small-agency owners for a meeting of the minds, to begin uncovering their shared pain points – concerns that IA&B can help to address. Those items listed above were several of the leading issues.

Len Gieseler, LUTCF

In the weeks ahead, IA&B will continue to explore the needs of member agency owners, particularly those of small-to-mid size shops (roughly 15 or fewer staff).

These discussions will occur during Member Agent Panels (MAPs) in meetings held at locations throughout our three-state region.

If you haven’t already, I encourage you to register for a MAP near you. More information and a list of locations is available at IABforME.com/MAPs. Your association, IA&B, is a grassroots organization with our direction determined by your needs, and our Board meeting agendas are driven by your issues.

While we may not always rest easy, we can rest assured that we – as independent agency owners – are not alone and that our agents’ association is working to provide products and services to address our common needs. If you’ve not looked at the resources available to you online, please peruse the website for content. I think you’ll find it loaded with more valuable information than you know!

Respectfully,

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Lancaster, PA

Columbia, MD

Pottstown, PA

G. Greg Gunn, CIC* Lemoyne, PA

Bryan C. Hanes, JD Hagerstown, MD

Lisa A. Leach Goth, CIC New Bethlehem, PA

Shannon Lipniskis Indiana, PA

Elizabeth H. Martin, CIC Millersville, PA

Mark J. Monroe

West Chester, PA

Michael A. Papa, CIC, MBA Hunt Valley, MD

D. Bradley Rosenkilde Jr. Hunt Valley, MD

Tara S. Silfies, CPCU Bethlehem, PA

Robert L. Smyrl Jr., CIC Hatfield, PA

J. Marshall Wolff, CIC, CPCU Easton, PA

* PA IIABA National Director + MD PIA National Director

Craig Mader Chair of the Board

FEBRUARY 2020

Don’s Discussion Claire-ification IA&B Legal & Corporate Affairs Director Don Bankus provided this month’s answer.

Are you a member with a question? Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.

QUESTION: My insured has a $5M limit on his umbrella policy but wants me to show $1M on a Certificate of Insurance. Is this OK?

ANSWER: Certificates of Insurance (COI) – the gift that keeps on giving! The short and sweet answer is that a producer with actual knowledge of applicable coverages should always accurately reflect the correct and full limits of the umbrella policy, as well as every other component of other coverages, on the Certificate of Insurance.

WHAT’S THE BIG DEAL? Purposely entering information which the producer knows to be false: • Likely violates applicable insurance statutes, rules, and regulations; • Subjects the licensed producer – and the agency for whom he or she is providing services – to lawsuits for fraud or misrepresentation (up to 15% of all E&O claims are COI related); • Could be a violation of your ACORD licensing agreement; and • Subjects the licensed producer – and the agency for whom he or she is providing services – to administrative penalties, including substantive fines and possible license suspension or revocation.

STATUTES, REGULATIONS, AND BULLETINS Delaware and Maryland have statutes which, among other things, expressly address this issue. Each state’s statute provides that it’s unlawful for anyone (think your customer or the certificate holder) to request or require a producer to issue a COI that contains false or misleading information, and that it’s unlawful for anyone (think producer or anyone providing services for the agency) to prepare or issue a COI that contains false or misleading information.

Delaware also has a separate statute whereby such acts would constitute insurance fraud, which subjects licensees to additional penalty.

In addition, the Pennsylvania Insurance Department and the Maryland Insurance Administration have issued bulletins which express their respective positions that issuing a false or misleading COI is prohibited and subjects licensees to a multitude of possible repercussions.

THE BOTTOM LINE Caution is urged when including information on a COI that a licensee knows is not accurate. Explain to the insured that doing so is illegal on a number of fronts, and, in the event of a claim, accurate policy limits will be revealed anyway.

This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice.

Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document.

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PREVENTING ERRORS & OMISSIONS

WHEN USING WHOLESALERS, YOU DON’T WANT TO ASSUME

By Curtis M. Pearsall, CPCU, AIAF, CPIA

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ith very few exceptions, for an agency to be successful and to achieve it’s growth goals today, effective use of the wholesale community is extremely important. The agency’s ability to access a wide range of markets could be the key to placing various risks. However, effective utilization of the wholesale marketplace has some uniqueness to it that agents need to understand and account for. Specific processes and procedures need to be put into place to minimize the potential for errors and omissions (E&O) problems to occur.

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But all wholesalers are not alike, and it is important to not assume that the procedures that apply to one wholesaler are consistent with the others. Some of the key issues to be sensitive to are the following: When the agency sends in an application to various wholesalers, the proposals received from the wholesalers must be reviewed for any differences. It is common for there to be a difference in the premiums. That may be because there is a difference in the coverages. The proposals should be

FEBRUARY 2020

analyzed and any differences noted. If the premium is higher with one proposal as compared to another, there is a good chance that is because the coverage is better. It is suggested to offer the client multiple proposals to allow them to make the decision.

The application is needed. The markets of some wholesalers are willing to quote based on a standard generic application, while others might require a specific carrier application. It is best to know that information up front to avoid any potential delays.

Be diligent in your follow-up with your wholesalers. The last thing an agency would want is to get the proposal the day before the coverage would be effective. This timeframe does not allow the agency to properly review the proposal and to note any key issues/ coverage exclusions or limitations.

A recent E&O claim involved the agency placing a General Liability policy that contained a Specified Operator Exclusion.

It is highly questionable that the agency producer was aware of the exclusion, as the issue was never brought to the client’s attention. The producer merely advised the client to read the policy.

Don’t assume the policies are correct.

Policy issuance in the industry continues to be a significant area of concern with some agencies citing that there is at least one error on every policy they receive. Be sure to check the policies to see if they have been issued per the agency’s instructions.

In another recent E&O claim, the agency placed a property policy and at renewal requested that the business income form be changed from a coinsurance form to a monthly limit option excluding ordinary payroll. The renewal was issued by the wholesaler, but the requested change had not been made. It appears that the policy was not checked and was presumed to be correct.

The wholesaler may not have all of the facts. Face it, they are essentially only handling a specific issue, a specific coverage. Do they know the entire story of the account? No. For example, with personal umbrellas, there is a requirement regarding the amount of the underlying coverages (auto, homeowners, boat, etc.). When an agency asks the wholesaler to write

a personal umbrella, the wholesaler will provide a proposal that probably stipulates what those underlying limits need to be. A standard market may follow up on this issue, but there is no guarantee that a wholesaler will. A common E&O issue involving personal umbrellas deals with the actual underlying limits being less than the required limits. In a recent E&O claim, the gap was $250,000 before the umbrella policy kicked in. Agencies need to have specific procedures that compare the required limits with the actual limits and to address the issue when there is a difference.

Wholesalers are a key segment of the industry. Due to how they do business and the potential differences among wholesalers, it is vital that agencies be aware of the differences and to not assume that all wholesalers are the same.

Dealing effectively with your wholesalers can be a key issue to minimize your E&O exposure. urtis M. Pearsall, C CPCU, AAIF, CPIA is president of Pearsall Associates, Inc. and consultant to the Utica National E&O Program.

This information is provided solely as an insurance risk management tool. It is provided with the understanding that the member insurance companies of the Utica National Insurance Group are not providing legal advice, or any other professional services or advice. Utica shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of this information.

You are encouraged to consult an attorney or other professional for advice on these issues.

E&O RISK MANAGEMENT TRAINING Learn more E&O prevention tips, while earning CE and loss control credits. New for 2020: Our E&O Risk Management classroom seminar is now a two-part program, giving you more flexibility and convenience. Attend the morning session, afternoon session, or both.

Avoidance/Prevention 9 AM-NOON

CE

Submitted for 3 credits

Claim Time 1-4 PM

CE

Submitted for 3 credits

April 2 | Philadelphia, PA April 16 | Mechanicsburg, PA April 28 | Pittsburgh, PA June 2

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Sept. 9 | Mechanicsburg, PA Sept. 16 | Pittsburgh, PA Oct. 14 | Philadelphia, PA Nov. 10 | Allentown, PA LUNCH INCLUDED (both sessions)

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Register today.

800-998-9644, option 1 IABforME.com/education

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NEWS & NOTES

MIA ISSUES REBATING – PROHIBITION REMINDER Watch the gifts, gadgets, or free services you offer your customers or prospects. The Maryland Insurance Administration (MIA) last fall issued Bulletin 19-21 to remind insurers and producers that the Maryland statute contains clear prohibitions concerning rebates or inducements.

While the 2018 General Assembly increased the amount that can be spent on educational, promotional, or articles of merchandise from $25 to $50, it did not change the fact that the gift cannot carry any obligation to purchase, nor the fact that these gifts must be educational, promotional, or articles of merchandise.

Of note, the bulletin alludes to other “advantages” that may be touted as an inducement and also run afoul of the law. These include: • A special favor or advantage in the benefits under the contract policy • Paid employment or a contract for services of any kind • Any valuable consideration or other inducement not specified in the contract Agents often run into trouble when trying to differentiate themselves from their competition by offering free services or setting up raffles or lotteries.

For a refresher on what is permissible and what isn’t, access our resources on the subject (make sure to also check the specific real-life examples that IA&B vetted with the MIA).

IABforME.com/rebating

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IA&B OPENS MARYLAND OFFICE Insurance Agents & Brokers (IA&B) announced the opening of an office in Maryland on Dec. 1, 2019. The office – located at 191 Main Street in Annapolis, MD – joins IA&B headquarters outside of Harrisburg, PA. “Along with the IA&B Board of Directors and staff, I look forward to the opportunities this new office will afford our organization and our members,” said IA&B President & CEO Jason Ernest, Esq. The location allows for easy access to the Maryland State House, and it provides a central meeting place for IA&B members and association staff. Additionally, it solidifies IA&B’s commitment to remaining the preeminent agents’ association in the state.

FEBRUARY 2020

ATTEND MEMBER AGENT PANEL MEETINGS Join fellow member-agency decision makers to share your goals and challenges and to weigh in on how Insurance Agents & Brokers (IA&B) can best support your agency. IA&B will host the following discussions.

Get the tools & support you need to better serve your clients!

Member Agent Panels: Feb. 18 – Hunt Valley, MD Feb. 19 – Annapolis, MD

Time: Each meeting will run from noon until 2 PM. Lunch will be provided at 11:30 AM. Cost: There is no cost to attend, but you must register.

Register today. Visit IABforME.com/MAPs or call 800-998-9644, option 1.

The specific location for each Member Agent Panel is available at IABforME.com/MAPs.

Questions? Contact IA&B VP-Membership Tim Wonder at TimW@IABforME.com or 800-998-9644, ext. 351.

With PIN, you can gain access to the nation’s top personal lines insurance companies, expand your product offerings, leverage better pricing, and tap into our team’s expertise and fresh ideas to give your clients more and to keep you competitive in your marketplace.

Leverage the power of PIN. Become a member.

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Producernet.com 717-581-9284

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Q&A WITH

KEVIN AMRHEIN

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evin Amrhein, CIC, is the Insurance Agents & Brokers (IA&B) Education Consultant. He works with IA&B’s CISR and CIC programs, as well as special topic seminars and live webinars. Kevin is also president of the Florida Insurance School of Continuing Education.

Q. You’ve been an instructor since 2004. How has insurance education changed over the years?

A. In a word: technology. I came in at the tail end of the flipchart, overhead projector, bulky paper outline era. I know that there’s still some of that out there and that some are partial to that way of training/learning. Personally, I like that the tech we can use now to train is more in sync with the tech that many of the attendees use in their daily lives. And I think most attendees like that as well.

Q. What trends do you foresee for the future of insurance education? And how will they impact agents?

A. Shorter training sessions delivered using what I call “community tech.” I think many people assume that tech when used for education is only for the lonely – people who don’t want to go to a class and prefer to do things online and on their own. While some tech operates that way, I

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think most agents prefer the convenience of tech coupled with an education experience they can share with others.

Live webinars are an awesome example of “community tech” – a live experience with a live instructor and other attendees sharing information and learning as well in real-time. I think the impact to agents is the perception of education as an experience that’s inclusive, rather than intrusive, to the agent’s workday.

I’m also a big fan of podcast/audio learning. I think many agents appreciate the opportunity to learn about their craft while driving, walking the dog, or burning calories on a treadmill. I really enjoy doing the monthly podcast for IA&B and expect everyone reading this to start listening to it today!

Q. Studying for a CIC exam can be daunting. What tips would you give to an aspiring designee?

A. Don’t go at it alone! I love seeing groups of attendees studying together in the hotel lobby/restaurant/bar or in the classroom after class. If you don’t know anyone at the institute, just ask others if they’re taking the exam and planning to study. Everyone has the same objective, so finding a study team shouldn’t be a challenge.

FEBRUARY 2020

My other tip is for when you’re actually taking the exam: If you arrive at a question that you don’t understand or immediately recall, skip it and come back to it later. I used to grade CIC exams, and I’d often see an exam where the taker had momentum, then arrived at a question he/she didn’t know how to answer, and the remainder of the exam was either blank or scribbled in nervous, quick, unconfident handwriting. I could tell simply by looking at that exam that the taker dwelled on that one question for a long time and that it shook his/her confidence with other questions.

Q. What’s the funniest thing to ever happen to you during a class?

A. A hotel in Central Florida doublebooked our classroom. They apologized and said they’d found us an alternative location only a few minutes away. The alternative location was at the central Florida Zoo, and the classroom had large windows facing an area where zookeepers fed and bathed primates. I’d be talking about the GL policy, and students would randomly burst out in laughter because behind me, outside the window, a zookeeper was hosing down a gorilla.

Q. You’re a jet setter, living in Florida and teaching in the Mid-Atlantic. Have any tricks for airline travel?

A. Yes! First, never try to travel to or from Florida between the hours of 1-5 PM during the summer. Second, never try to travel to or from the Philadelphia airport. Ever. I’m kidding (mostly) about second one, but I stand firmly by my advice on Florida.

Another tip: It’s okay to use thirdparty booking sites to compare flights, but if possible, always book the flight directly through the airline’s website/ app. The prices are typically the same, and if you run into travel issues, the airline’s customer service reps are better positioned to help you.

Q. What’s your favorite golf course you’ve played, and why?

A. In the states, it’s a tie between the Stadium course at TPC Sawgrass in Ponte Vedra Beach, FL and Pebble Beach Golf Links in Pebble Beach, CA. Why? Stadium is an absolute blast to play, and Pebble is an incredible experience on what may be the finest real estate in America.

In the world, Kingsbarns Golf Links in St Andrews, Fife, Scotland. Why? It’s magnificent. Everything about it.

Q. We understand you attended the U.S. Open last summer. Tell us about it!

A. Like me, my dad is a sucker for a golf experience. We’ve played Pebble Beach together, and the place is special. So when it hosted the U.S. Open in 2019, we and my older brother just had to go. The three of us had a fabulous time watching the world’s best compete on such a grand stage. Magical.

AN HOUR WITH KEVIN Earn 1 CE credit from new hour-long webinars, featuring the alwaysentertaining IA&B Education Consultant Kevin Amrhein, CIC. Modern Transit Risks FEBRUARY 19 2-3 PM

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Register today.

IABforME.com/webinars 800-998-9644, option 1

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FEBRUARY 2020

CYBER RISK & TIME ELEMENT How to Protect a Business

By Kevin C. Amrhein, CIC

Scan the IA&B’s 2020 training schedule, and you’ll (hopefully) stumble across a CE class I’ve put together, titled “Cyber Risk and Time Element: Protecting a Business When Stuff Tries to Kill It.” (“Stuff.”

Very descriptive. Don’t you love it when us insurance geeks talk tech?)

C

atchy title? Hopefully. But if you’re cynical like me, you’re probably thinking: Can’t just about any type of loss – fire, wind, bodily injury, etc. – effectively kill a business?

the list. But because I’m annoying, I ask agents to tell me how they relay the importance of this coverage to insureds.

Yep. So why these two coverages specifically?

1) Most agents stress that every business using technology – e.g. every single business – is vulnerable.

For years in the classroom, I’ve asked commercial lines agents to tell me the types of insurance coverages that make their short-list: those the insured isn’t required to buy, but the agent feels are so vital they must be reviewed/offered.

While I’m often impressed at the range of answers, “Cyber” is the one most commonly provided. I love this and absolutely agree that it should be on

Here are two things I’ve learned:

Solid opening! Now just need to create the pain and drive it home!

2) M ost agents struggle to make cyber exposures relatable to their insureds.

Rats. Fiddlesticks. *#%!

This struggle is the primary reason why I put this new class together.

Continued on page 12

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Expense,” and in this class we’ll discuss the following: • What exactly is covered?

• How can the insured know how much coverage to purchase?

• What are examples of Extra Expenses?

Agents who pre-date Cyber Risk insurance (some of you reading this may pre-date cyber risk in general!) have been working for decades with insurance products that address Time Element exposures. As I often say in class, “There will always be fires.” For some agents, traditional brick-and-mortar Time Element exposures are enough to convince their insureds to obtain coverage.

Continued from page 11

RELATABLE? DEBATABLE Many agents tell me that, while discussing cyber exposures with an insured, they share an example of a major data breach – Equifax, Target, Marriot, etc. Interesting?

Yep. Relatable? Debatable.

Many agents tell me that, while discussing cyber exposures with an insured, they share an example of a business getting infected with ransomware. Interesting?

Yep. And while this may be relatable for some, many insureds will dismiss it; offering as resistance info about their offsite backup procedures or lack of sensitive data.

I don’t mean to belittle these exposures.

Any business without Cyber Risk insurance that’s had to comply with a security breach notification law (or best practices) or has been infected with ransomware without a contingency plan is lucky to be alive (assuming they still are).

But there’s more to Cyber Risk insurance than data breach and ransomware. In this new class, my primary objective is

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to provide piles of data, information on exposures, and most importantly, examples to help agents present relatable scenarios to many types of insureds that occupy many varying positions on the cyber-sophistication scale.

We’ll discuss evolutions in cyber-attacks and security. We’ll discuss efforts clever businesses – often with assistance from their Cyber Risk insurance company – deploy to train employees about exposures and create best practices for avoidance.

And we’ll discuss ISO’s Commercial Cyber Insurance Policy, its Insuring Agreements, and how it can address exposures on a first- and third-party basis.

AND WATCH IN AWE AS WE SEAMLESSLY TRANSITION TO TIME ELEMENT Any discussion of Cyber Risk insurance is incomplete without also discussing what a loss will do to cripple an insured’s revenue stream. By focusing on the Time Element exposure, the agent can discuss the coverage available (hopefully!) that is likely the most important to the insured in the Cyber Risk insurance policy. In ISO’s policy, this coverage is called “Business Income And Extra

FEBRUARY 2020

Others will stand firm that such premisesspecific risks are not a serious threat to disrupt their business’s revenue stream.

Unfortunately, many agents I’ve met have trouble making other exposures relatable to such insureds and struggle to overcome this resistance.

This struggle is the second reason why I put this new class together.

Perhaps the risk of revenue loss resulting from a cyber event is enough to convince many insureds that discussing Time Element exposures is a matter of life or death for their business. In class, we’ll discuss these and other exposures such as: • How an extended utility interruption – think loss of power, water, or communication supply – could leave an unprepared business scrambling to continue operations • How damage to a vehicle(s) and/or equipment could cause a business to miss out on or withdraw its bid on a lucrative project or trigger an expensive default on an existing one Continued on page 14

CYBER RISK & TIME ELEMENT Join Kevin Amrhein, CIC, for our 2020 coverage trend class. To give you flexibility and convenience, we’ve divided it into two sessions – morning and afternoon. Attend one or both.

Understanding Cyber Insurance Risks 9 AM-NOON

CE

Submitted for 3 credits No Exam Required LUNCH INCLUDED

Time Element for Today’s Risks 1-4 PM

CE

Submitted for 3 credits No Exam Required LUNCH INCLUDED

Register for each session to earn a total of 6 CE credits and cement your Cyber and Time Element insurance knowledge.

June 4

INSURING OPPORTUNITY THROUGH MUTUAL SUCCESS.® Harford Mutual Insurance partners with independent agents in Maryland.

We insure restaurants, contractors, mercantile, and other commercial entities.

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June 25 | Baltimore, MD Sept. 15 | Philadelphia, PA Sept. 24 | Allentown, PA

HarfordMutual.com 800.638.3669

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IABforME.com/education 800-998-9644, option 1

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Continued from page 12

SUPPLY-CLAIN: WHERE THINKING BIG IS … BAD? When discussing Time Element exposures with agents through the years, I’ve learned that “disruption to supply-chain” is one of the most overlooked exposures faced by virtually every business.

I think I know why.

Ask a class full of agents what they think of when they hear the words “supplychain.” You’ll conjure thoughts of container ships at port, rail cars, massive distribution centers with boxes stacked floor to ceiling, and rows of semi-trucks backed up to loading docks.

I call this the big stuff.

When it comes to “supply-chain” risks, thinking big can be bad, and many agents dismiss this exposure because they don’t insure the big stuff. Regardless of size or

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what they do, your commercial insureds likely rely on something – perhaps a product or service – provided by other businesses to survive. Your insured is a link in a supply-chain and may need your help understanding that. Once they do, they’re better positioned to appreciate: 1) How a disruption to their supplychain could kill their business, and 2) Risk management and insurance products that could keep it alive.

CONCLUSION – SAVE A LIFE! It may sound dramatic, but it’s true: The road to success is littered with once-promising businesses that died because of failure to appreciate cyber or Time Element exposures. It may sound dramatic but it’s true: after taking this class, you’ll be better positioned to save the life of an insured’s business.

Hope to see you there.

FEBRUARY 2020

Until the next round … cheers!

Kevin C. Amrhein, CIC, is IA&B’s education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.

THANK YOU

WELCOME NEW PARTNER

PARTNERS PROGRAM The IA&B Partners Program allows companies to support and connect with independent insurance agents and brokers in Pennsylvania, Maryland, and Delaware. Through their sponsorship, Partner companies allow IA&B to offer the programs and services that help member agencies succeed.

Thanks to these Platinum Partners for supporting the independent agent network.

PLATINUM PARTNERS

OPENLY INSURANCE Boston, MA

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ACUITY Donegal Insurance Group Erie Insurance Group Farmers Mutual Fire Insurance Company of Marble

J. COYLE & ASSOCIATES Richboro, PA PEACHTREE INSURANCE GROUP Philadelphia, PA

IA&B Service Group Millers Mutual Group Penn National Insurance Plymouth Rock Assurance The Main Street America Group

RONALLO INSURANCE GROUP LLC Elizabeth, PA

BECOME A PARTNER

Your support helps independent agents succeed and their agencies become more profitable – a win for your company and the independent agency channel.

Learn more by visiting IABforME.com/Partners or by contacting us.

Jess McWilliams Education Senior Director 800-998-9644, ext. 503 JessicaM@IABforME.com

Alane Fagan Events Manager 800-998-9644, ext. 512 AlaneF@IABforME.com

Have a question about your member benefits? Contact Tim Wonder.

Tim Wonder VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com

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PICS & POSTS

Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B

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FEBRUARY 2020

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TECHNOLOGY UPDATE

IS YOUR WEBSITE ADA COMPLIANT YET?

By Larry Neilson and Jerry Fox

W

henever you enter a new building, you likely notice how they have taken measures to ensure that it is accessible for everyone.

From sturdy handrails to ramps and elevators, it is extremely important today that a property take into account the needs of every possible person who could want to enter. However, this is not just an issue for physical spaces.

Accessibility has also gone digital, and it's time for you to take a look at how accessible your website is.

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You might be thinking, “Why, as an insurance agency, is it necessary for me to consider whether my website is accessible to the visually impaired, blind, deaf, or otherwise limited? Do the brick and mortar requirements of the ADA extend to virtual properties? What are we talking about when we say website accessibility for people with disabilities?”

Since you are in insurance, you understand risk. Let's start with a look at the risk of doing nothing for your FEBRUARY 2020

website regarding accessibility. Then, we will examine what accessibility means to you as an agent and how you can update your website.

WHAT IS WEBSITE ACCESSIBILITY? Accessibility means considering as many people as possible when developing your online presence. It doesn’t just mean that your website will load on their device. An accessible website is one that can be used by anyone, no matter the circumstances.

As a business owner, you need to protect yourself and mitigate the chance of a lawsuit. But you also have an opportunity to set an example for your clients, many of whom could potentially be sued for website accessibility and turn to you for help with the claim. It’s not just about whether there is a law or not. It's about serving your community and being a good steward.

Until there was a law mandating it, most people didn’t think about the disabled when designing brick and mortar locations, and unfortunately, the same is true of website design. The first time I heard about websites and ADA compliance, I was startled. To be honest, my first thought was, “What would a blind person do online?” And therein lies the crux of the problem. We are not well informed about people who have disabilities and what they need in order to navigate our websites.

As technology changes, the world everyone knows is being funneled online. At some point, and that point is very soon if not already here, everyone will need access to the internet in order to conduct everyday business from buying insurance, groceries, and clothing to doing banking. Just think about how many things are handled over email, for example.

Don’t just think about website accessibility in terms of permanent disabilities. What if a customer tries to fill out your claims form while they’re in bright sunlight, or maybe they forgot their glasses? Your website needs to be accessible to anyone, at any time.

TODAY’S WEB ACCESSIBILITY REQUIREMENTS As of right now there are no formal, established guidelines for website accessibility compliance under the Americans with Disabilities Act of 1992 (ADA). The ADA, signed into law by then-president George H.W. Bush, is

very clear about the requirements for brick and mortar but very vague with defined remedies when it comes to your virtual property like your website. While it has been presented to Congress and the Department of Justice, the result was a recommendation by then-attorney general Jeff Sessions that websites should follow the standards, called WCAG 2.1, set forth by W3C (The World Wide Web Consortium), but there was no law stating that anyone had to follow voluntary standards.

In addition to W3C and WCAG 2.1 standards, you can also visit The U.S. Department of Health & Human Services site for a helpful checklist to follow to meet minimum requirements.

THE RISKS OF NOT HAVING AN ACCESSIBLE WEBSITE Unfortunately, many lawsuits have been filed over website accessibility. Certain industries have seen a higher risk level, including golf courses, marinas and hospitality. The average insurance claim is close to $20,000 when settled, along with a promise to bring the website up to WCAG 2.1 standards. According to Chicago-based law firm Seyfarth and Shaw, there were over 2,300 nongovernment lawsuits in 2018 and a projection of over 6,000 for 2019.

Accessibility does not guarantee that you won't be sued, but it makes it a lot less likely and it will help defend your case in that you were trying to do something.

WHY ELSE SHOULD YOUR WEBSITE BE ACCESSIBLE? There’s one more major reason to revamp your website to be more accessible. If you get it right, you have the potential to gain some extra new business. The U.S. Census Bureau reports that, based on the most recent census information, approximately 8.1 million people in this country are visually impaired, including two million who are blind.

TIME FOR A NEW WEBSITE? Check out the cost-effective insurance agency websites offered by our partners at Forge3. Their ActiveAgency platform gives you a custom-designed website, along with powerful lead-generation sales tools.

What’s more, Forge3 follows best practices for website design, and its ActiveAgency platform includes language on accessibility.

Learn more by visiting forge3.com/ iab or contacting Zack Yurch.

Zack Yurch 484-275-0983 zack.yurch@forge3.com

Medical advances have reduced the percentage of people who are blind, but as our country ages, more people will become visually impaired or blind due to advanced age. This market is growing, and these people buy insurance. Yes, auto for insurance for the blind! With autonomous (self-driving) vehicles, it will be a large and untapped market.

Keeping an accessible web presence provides options and markets open to all.

Why would you want to exclude a large potential customer base before they even know anything about you?

KNOW HOW TO MOVE FORWARD TO AN ACCESSIBLE WEBSITE Don't rush out and jump on an accessibility tool for purely defensive reasons. Learn more about website accessibility and how you can take this

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TECHNOLOGY UPDATE opportunity to make your website more user-friendly for potential customers.

There are also now cost-effective tools available to make your site more accessible to a variety of people who may not be able to access your site due to a permanent disability or a temporary circumstance.

on your website. Nothing is free in this world, and that adage is true with website accessibility as well. Some of them advertise up to 95% accessibility. The key words are “up to,� as the true percentage of accessibility will depend on how current your website code is. In order to attain 100% accessibility, you will first have to conduct an accessibility audit and engage knowledgeable developers for manual remediation. The cost will vary depending upon the size of your website and the amount of required coding.

There are multiple levels of accessibility, starting with the minimum access provided by a software widget. These solutions are the most cost-effective, starting at $80 to $100 per month. These widgets provide varying degrees of true accessibility based on the age and coding

Finally, there are providers who will place cookies on your site as part of the installation in order to generate new prospects from visitors to your site as part of their compensation. Of course, there is nothing wrong with this if it is disclosed as part of the deal. Often it is not.

For example, you can take a minute to reach out to a local chapter of an organization for the blind to find out how blind individuals can use the internet and what they look for in their browsing.

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FEBRUARY 2020

The bottom line is we recommend taking some action to make your website more accessible. Whether it’s a risk management or civic duty decision, the cost is negligible compared to the return.

Larry Neilson is founder of Neilson Marketing Services and CEO of ProgramBusiness.com. Jerry Fox is owner of Systems by Fox, as well as being treasurer of the United Blind of Minnesota. They provided this article on behalf of Agents Council for Technology (ACT).

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