Tennessee Agent by PIA of Tennessee

the

Tennessee agent DECEMBER/JANUARY 2011

VOL. 52, NO. 6

IN THIS ISSUE Workers Compensation Exemption Registry How to Establish Agency Growth Local Search as a Web Marketing Strategy

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OFFICERS Glen Page, CIC, CPIA President Page, Chaffin & Riggins Insurance 8122 Walnut Run Cordova, TN 38018 Ph: 901-755-5526 email: glen@pcrins.com Elaine Morton, CPIA President-elect Morton Insurance Agency, Inc., Bartlett email: elaine@mortonagency.com

Tennessee agent TA B L E O F C O N T E N T S

Steve Peay Vice President Boyle Insurance, Memphis email: stevep@boyle.com

December/January 2011 Vol. 52, No. 6

Lorrie Palmer, CIC Secretary Holman and Holman, Springfield email: lpalmer@holmanandholmanins.com

Articles

Donnie Hogan, CIC Treasurer Fred M. Smith & Son, Inc., Springfield email: donnie@fredmsmith.com Leighton Bush, CPIA Immediate Past President Bush Insurance & Financial Services, Nashville email: leighton@bushins.com

N AT I O N A L D I R E C T O R June W. Taylor, CIC, CPIA, CPIW, DAE Wilkinson Insurance Agency, White House email: june.taylor@wilkinsonins.com

DIRECTORS Carl Butcher, CIC, CPA C. L. Butcher Agency, Knoxville email: carl@clbutcher.com Tina M. Hutsenpiller, CPIA Hutsenpiller Insurance Service, LLC, Mt. Juliet email: tina@hutsenpillerinsurance.com Joseph P. (Joe) Kerr, CIC, CPIA Kerr Insurance Services, LLC, Brentwood email: joe@kerrinsurance.net

Changes coming to Tennessee’s workers compensation law for construction industry How will these changes affect your clients who work in the construction industry? This article explains the Workers Compensation Exemption Registry that will serve as the mechanism for construction services providers to exempt themselves from workers compensation coverage.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Navigating the minefield of liability coverage for contractors Paul Walters, claims manager for Utica E&O, writes this issue’s E&O prevention article. . . . . . . . . . . . . . . . . . . . . . .11 How to establish an agency growth culture What’s the principal difference between average and high-growth agencies…NEW BUSINESS . . . . . . . . . . . . . . . . .14 How to get the most out of “local search” The best web marketing strategy that you’ve probably never heard of is “local search.” Read what local search is and why you should explore it. . . . . . . . . . . . . . . . . . . . . . . .17

Britt Linder, CIC Peterson Insurance Services, Inc., Bartlett email: britt@peterson-insurance.com Herbert Montgomery Clay and Land Insurance Agency, Memphis email: hmontgomery@clayandland.com Bill Oglesby, II, CIC, CPIA Brown Insurance Group, Crossville email: bill@brown-insurance.com

Columns President’s Perspective . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 PIA Calendar & Education . . . . . . . . . . . . . . . . . . . . . . . . . . . .21

Barry Wilson, CIC Mid-South Insurance Office, Inc., Memphis email: bwilson@mid-southinsurance.com

S TA F F Pamela D. Cass, CPIA, pcass@piatn.com Director of Education & Convention Sandy Clive, CPIA, sclive@piatn.com Director of Member Services Lochiel Gaines, lgaines@piatn.com Director of Communications, Trade Show Coordinator Liz Maden, lmaden@piatn.com Director of Accounting Services

The Tennessee Agent (ISSN 1081-566X) is published bimonthly by the Professional Insurance Agents of Tennessee, Inc. Statement of fact or opinions expressed in any article are solely that of the author and does not imply opinions of the officers, directors or staff of PIA of Tennessee, Inc. The publishing of any article or advertisement does not imply endorsement by PIA of Tennessee, Inc. No material within this publication may be reproduced in whole or in part without the consent of the Editor.

Editor: Lochiel Gaines, lgaines@piatn.com Advertising inquiries should be made to the Editor, The Tennessee Agent, 504 Autumn Springs Court, A-2, Franklin, TN 37067. Telephone 615/771-1177 Fax 615/771-3456 Email – lgaines@piatn.com Website – www.piatn.com

President’s Perspective B Y G L E N PA G E , C I C , C P I A

ell—well—well —it looks as if America has spoken. Washington has been sent a clear and concise message. The Republican Party picked up over 60 seats in the House of Representatives and five seats in the Senate. The Republicans now have the majority control of the House and narrowed the gap in the Senate with 53 seats under control by the Democrats. The significant result is that many of the seats lost by the Democratic Party were congressmen who were not “insurance industry friendly.” The message sent to Washington is the voters want smaller government. With the power split, we have to hope there can be

cooperation within the two houses to allow credible legislation to be enacted. Many senators will be up for re-election in 2012, so we have the opportunity to really concentrate on the issues so there is no doubt in their minds where the American people stand. We as professional insurance agents have to be diligent and work within the grassroots movement to keep our concerns in front of all the politicians. There will be several new insurance commissioners in states across the nation. It looks as if at least 25 new commissioners will be in office. This could have a profound effect on the insurance industry. Many of the commissioners have stated they are opposed to the federal healthcare law. This could complicate the implementation of the laws. The states will have to set up state-run health insurance exchanges which will be a monumental endeavor. More than likely we will have a new commissioner here in Tennessee as this is a governor-appointed position in Tennessee. The PIA of Tennessee needs to continue to work closely with the department of insurance on all the issues that concern us. There also were several changes in our state legislature and here again it is very important for us to keep a close relationship with these legislators on the issues that are of concern to us. The Board of Directors, officers and staff of PIA of Tennessee recently held a two-day meeting to go over all the issues we have at this time. I must say I was very impressed with all the participation and enthusiasm shown at this meeting. Out of this meeting came several items to be worked on that will have a long range lasting effect on our organization. There will be a lot of information coming out soon about these decisions and the implementation of the plan. The current economy is affecting every business person and association in the country, and the PIA is no exception. I cannot emphasize enough how important it is to support the association in every way. There are many products and services available to help you in the everyday running of your agencies. Be an ambassador of your association and promote membership at every opportunity. Sometimes all you have to do is ask. I cannot say enough about the dedication of so many people in the PIA family and my complete appreciate of our staff. With everyone working we will progress and continue to be the organization that truly serves its members. God bless each and every one of you. • THE TENNESSEE AGENT December/January 2011

Changes coming to Tennessee’s Workers’ Comp law for construction industry ublic Chapter 1149 was passed by the 106th General Assembly during the 2010 legislative session. The legislation makes changes in Tennessee’s workers’ compensation law relative to the construction industry. A significant change that will impact independent agents with insureds who work in the construction industry is that the law will provide a mechanism that will allow sole proprietors, partners, LLC members, corporate officers and owners of family-owned businesses in the construction industry to exempt themselves from having to carry workers’ compensation insurance on themselves (refer to Question 2 below). Beginning the first of 2011, construction services providers (CSP) will be able to apply to be listed on the Workers Compensation Exemption Registry; however, exemptions will not become effective until March 1, 2011. The exemption registry will be maintained by the Tennessee Secretary of State’s office, which is located in Nashville. CSPs will be able to apply online, http://TNBear.TN.gov.wc, or in person. In order to apply for the exemption registry a CSP must either (1) hold a valid license from the Board of Licensing Contractors (http://tn.gov/commerce/boards/contractors/index.shtml) or (2) obtain a Construction Services Provider Registration through the Secretary of State’s office. The registration

can be applied for at the same time that application is made to the exemption registry. Another important piece in the legislation deals with the number of exemptions that are allowed on commercial jobs and on residential jobs. On commercial jobs, only three exemptions will be allowed. So even though there may be several CSPs on the Exemption Registry who are working on the commercial job site, only three CSPs actually can be exempt from being covered by workers compensation insurance. On a residential job site, however, there is no limit to the number of CSPs working on the site who can be exempt from coverage (refer Question 7 below). Reminder of significant dates January 1, 2011: Application process opens for construction services providers (CSPs) not licensed by the Board of Licensing Contractors to obtain a construction services provider registration and to apply for the Exemption Registry. February 1, 2011: Application process opens for CSPs licensed by the Board of Licensing Contractors to apply for the Exemption Registry. March 1, 2011: Effective date of exemptions on the Workers Compensation Exemption Registry. July 1, 2011: Effective date of penalties for non-compliance.

THE TENNESSEE AGENT December/January 2011

In September, PIA of Tennessee presented a seminar on Public Chapter 1149 at the PIA Education Expo. The following questions and answers were provided as a hand-out at the Expo by the Tennessee Department of Labor & Workforce Development. P.C. 1149 Qs & As Provided by the Tennessee Department of Labor & Workforce Development Q1: Do I have to cover myself with work comp insurance under the new law? A: If you are a business owner in the construction industry, then you can file for an exemption with the Secretary of State’s office. Q2: What qualifies me as a business owner? A: You are a business owner qualified for an exemption if you are a (1) sole proprietor, (2) partner who owns at

THE TENNESSEE AGENT December/January 2011

least 30% of the company, (3) LLC member who owns at least 30% of the company, (4) corporate officer, or (5) part-owner of a family-owned business. For corporations and family-owned businesses, no more than 3 corporate officers or part-owners can apply for an exemption (there is no specific ownership threshold for these individuals). Q3: How long does the exemption last? A: The exemption lasts for 2 years and is renewable. Q4: Do I need a contractor’s license to get an exemption? A: No, if you are not otherwise required to have a license, then you do not need one for the exemption. You will have to register as a construction services provider with the Secretary of State’s office, though. Q5: How much do I have to pay for the exemption? A: The fee is $100 for the 2 year exemption. If you do not have a con-

tractor’s license, then you will also pay a registration fee of $100 every two years. Q6: How many employees can I have before I have to cover them with work comp insurance? A: In the construction industry, you still have to cover your employees even if you just have 1 employee. Q7: Is there a difference between residential and commercial jobs? A: Yes, the difference is with regard to those who are performing direct labor on the job (i.e., non-supervisory workers). Only 3 such direct laborers can be exempt on a commercial job site regardless of whether more than 3 are on the exemption registry. On a residential job site, anyone who is on the exemption registry can maintain the exemption while on that job. Q8: Will I be able to get my exemption online? A: Yes, the Secretary of State’s office is working on a system now so that you can apply for the exemption registry

online. You may also contact the office in person or by mail. Q9: If a Department of Labor investigator comes to my job site, what documents do I need to show them? A: It would be best if you had a copy of your exemption card, as well as your construction services provider registration card if you do not otherwise have a contractor’s license. If you have any employees, then you would also need proof of insurance coverage for them. Q10:If I am a subcontractor, can I be covered under the general contractor’s policy? A: Yes, if you and the general contractor agree to such, then you can elect under the general contractor’s policy. The general contractor or its agent would then need to file Form I-15 with the Department of Labor. Q11:Can I require that anyone who contracts with me to have insur-

ance? A: Yes, you can require your subcontractors to have insurance on themselves regardless of whether they maintain a valid exemption. Q12:If I am exempted and get hurt on a job site, then what remedies do I have? A: Assuming that you are not otherwise covered by a policy, your remedies would be under tort law where you would have the burden of proving fault. Resources Workers’ Compensation Exemption Registry http://tnbear.tn.gov/wc; Phone number not available at publication time. Secretary of State’s Office (Tennessee Department of State) http://tn.gov/sos/index.htm Division of Business Services, 312 Rosa L. Parks Ave., Snodgrass Tower, 6th Fl, Nashville, TN 37243. Ph: 615-7142286

Workers Compensation coverage and claims questions: Tenn. Depart. of Commerce & Insurance Workers Compensation section http://www.state.tn.us/commerce/insur ance/workcompcompanyRes.shtml Ph: 615-741-0472. Tenn. Dept. of Labor & Workforce Development Ph: 800-332-2667 h t t p : / / w w w. s t a t e . t n . u s / l a b o r wfd/wcomp.html Contractor’s License Tennessee Board for Licensing Contractors http://tn.gov/commerce/boards/contractors/index.shtml. Ph: 800-5447693. Assigned Risk coverage Tennessee Workers Compensation Insurance Plan h t t p s : / / w w w. t w c i p . c o m / TWCIPWeb/Common/Home.aspx. •

THE TENNESSEE AGENT December/January 2011

Navigating contractors’ liability coverage B Y PA U L E . WA LT E R S

oday’s construction industry is in a crisis mode in many areas of the country. Extreme financial pressures are being brought to bear on contractors. Money has tightened up. Cutthroat bidding exists. Contractors are finding their profit margins dwindling. Expenses related to Workers Compensation and General Liability coverages are putting further pressure on contractors’ finances. The cost of General Liability coverage for contractors is increasing as a result of greater costs to defend and indemnify contractors. Whether it’s suits brought by workers or suits claiming damage due to faulty construction, carriers’ costs are on the rise. These increases are forcing carriers to up premiums, decrease the coverage offered or opt of out of that line altogether.

T Mr. Walters is claims manager for the E&O Department of Utica Mutual Insurance Company.

Agents caught in the middle As carriers get out of this line of business, other car-

riers—many in the surplus lines market—are filling the void. Contactors want to keep premiums down, and many will choose the least-expensive solution. Agents are caught in the middle. If an agent quotes a standard CGL without restrictive language, there is a good chance the premium will not be attractive to the contractor. Conversely, if an agent quotes a premium for GL coverage the contractor finds acceptable, chances are the coverage offered is restrictive compared to the standard GCL. The first scenario is not an E&O concern, but the second is likely to become a problem if a loss occurs. It is common these days to see contractors’ CGL policies that either do not grant contractual liability coverage or severely limit the types of contractual indemnity scenarios that are covered. It is also common for carriers to add an endorsement that excludes coverage when the claim is made by a worker on the jobsite. In fact, many policies offered today have both of the above coverage restrictions, making coverage for the types of claims a contractor will be faced with almost non-existent. Agent pays $235,000 In one claim example, an agent replaced one policy with another for a contractor. The old policy was a standard CGL. The new policy severely limited coverage for contractual indemnity, and did not apply to hold-harmless clauses seen in a standard construction contract. An employee of the contractor

THE TENNESSEE AGENT 11 December/January 2011

was electrocuted on the job, and sued the jobsite owner. In turn, the owner sued the contractor, alleging contractual indemnity and claiming it should be held harmless by the contractor. The new carrier disclaimed based on the restrictive language regarding contractual indemnity in the policy. The agent was then sued by the contractor, who stated they expected the new policy to provide the same coverage as the policy it replaced. The agent did not notice the changes between policies when coverage was procured. The agent’s share of the settlement? $235,000. No documentation In another example, an agency had a general contractor client who spoke little English. The agency procured a CGL policy that contained an endorsement excluding claims made by any employee

12 THE TENNESSEE AGENT December/January 2011

of any sub-contractor. A sub-contractor’s employee fell from a ladder and made a claim against the agency’s client. The carrier denied coverage based on the exclusionary language in the endorsement. The agent stated he discussed the exclusionary language with the client and offered to secure a CGL without the exclusionary language at twice the premium. Per the agent, the client refused and chose the less expensive policy. Following the disclaimer by the carrier, the client made a claim against the agent, stating he was not told about the exclusion and was not offered an option to purchase a policy without the exclusion. With no documentation in the agency’s records concerning the agent’s discussion with the client, the claim was settled—with the agent’s share totaling $84,000.

Put it in writing Agents must familiarize themselves with the differences in coverage that carriers are offering to contractors. When a policy is quoted, the agent should specifically ask whether there are restrictions in coverage compared to the standard CGL. If there are, the agent should fully explain those differences to the client, and then give the client the option to purchase a policy without restrictive language. All communications concerning this process should be done in writing, clearly spelling out what was discussed, what was offered and what was agreed upon. A little bit of extra documentation on the front end can protect an agency from claims made by contractors at a later date. •

How to Establish an Agency Growth Culture B Y PAT R I C K T. L I N N E R T

hy is agency growth important? Agents and brokers are faced with a continued economic downturn combined with sustained soft market conditions; insurance companies continue to tier agents based on future growth; acquisitions are costly; expense cuts are shortterm profit enhancing band aids; while top line growth that translates into additional earnings drives all facets of the value equation. Agents and brokers must focus on the revenues most in their direct controlâ&#x20AC;&#x201D; commissions and fees. The primary initiative regarding commission and fee growth remains new business production. Client retention is critical as a foundation for growth; however, if client retention

Patrick Linnert is executive vice president with Marsh, Berry & Co., Inc. MarshBerry provides financial, operations and sales management consulting services to insurance agents, brokers and financial institutions. Phone: 800-426-2774.

14 THE TENNESSEE AGENT December/January 2011

becomes the sole focus on an organization, it will be out of business within 10 years. The core difference between average and high-growth agencies resides not in retention ratesâ&#x20AC;&#x201D;those are pretty consistent. The principal difference is that high-growth agencies write twice as much annual new business than average agencies. The burden of new business production success can no longer be placed squarely on the shoulders of the sales force. Instead, executives must look in the mirror and ask themselves if they have created the organizational policies, practices, rules and tools to arm the sales force to do battle. The total agency sales culture In a MarshBerry survey of 250 insur-

ance executives, when asked, “What is the biggest challenge facing your agency regarding commission growth?” the overwhelming responses centered on the internal dynamics of the organization versus external market factors beyond the agency’s control. Of those surveyed, 76 percent responded with “non-producing producers” or “not enough producers.” So while the external operating environment severely influences agency growth, most owners believe the primary defect resides within the walls of their own organization—and within their control. In benchmarking the practices of high growth agencies, we have been able to correlate three common attributes necessary for creating a cultural shift from a service to sales organization: planning, infrastructure and hiring. Planning Too often agency executives become so engrossed in the day-to-day activities that they lose focus on their direction or never chart a course of direction in the first place. An integral component of this planning is to decipher whether the agency owners want to run the business as a mechanism to maximize annual compensation or whether they want to build a growing and viable enterprise that can be perpetuated over several generations. There is a delicate balance between current return (the periodic dividend or interest income of an asset) and total return (sum of the dividend or interest income and the capital appreciation of the stock value over time). Most investors would prefer to receive all of their return on an investment as reliable periodic current income payments (current return). Most agencies operate under the current return model and deplete the agency of reinvestment capital by taking large annual dividends or distributions. This is fine as long as agency owners understand that they are “realizing” the agency value each and every year via large W2 income. They must understand that they are not driving the stock value of the enterprise and will not perpetuate stock (whether internally or externally) at a peak valuation multiple. Long-term growth, however, requires short-term monetary investments. In this scenario, owners do indeed take an annual distribution; however, they also reinvest monies back into hiring, technology and process improvement to drive the stock

value over time. High growth agencies consistently fall into the total return camp as they balance short-term income with long-term asset appreciation. Too many agencies claim that they do not have any money to invest in a sales culture (people, processes, technology) that will generate total return. But every organization has the money; it’s just that many choose to spend it in less productive areas. Infrastructure Infrastructure serves as the next step in the results process. Agency executives must establish the policies, practices, expectations and rules of the game under which the entire staff will abide. Clearly defining roles and responsibilities serves as a foundation in building a sales culture. Most agencies find a void in expectation versus realities within the sales staff. The word “produce” means to create or to manufacture something new. High growth organizations have rewritten sales position descriptions to incorporate a mandatory minimum level of annual new business sales. The fact that many producers simply service and maintain books of business, with little new business production, is not the individual’s fault. After all, these servicing producers are only abiding by the decades old rules. Today, sales organizations are establishing new rules and expectations. They recognize that implementing a sales culture is a constant evolution. Average agencies, on the other hand, refuse to implement performance expectations. They refuse to embrace change and thus trade future ability for current complacency. They bypass leadership for consensus. Through our internal Sales Management Benchmark Report, we found 68 percent of high growth agencies—versus 37 percent for average agencies—enforce minimum new business production goals. Some believe such practices destroy the culture; however, the exact opposite proves true. The culture is enhanced when everyone is held accountable for performance. Cultures are more apt to be destroyed when executives do not take action against poor performers. According to the MarshBerry survey, the non-performing producer is one of the biggest problems in the industry. To combat this, leaders need to design compensation and accountability platforms that mandate minimum performance stan-

dards and then they must enforce these requirements. Think about a carrot and stick approach. Reward overachievers with increasingly higher tiered new business commissions for exceeding goals but at the same time penalize the underperformers with reduced renewal commissions for underperformance. In this scenario, executive are not forced to fire anyone, but instead the infrastructure allows each producer to win or lose based on their own performance. This model also mandates that producers sell new business. Telling an individual to sell more business is the easiest part of the equation. Much more difficult is arming the sales staff to do battle. Three tools high growth agencies provide to the sales force via their infrastructure are pipeline management systems, sophisticated service staffs and a differentiated story to sell. Hiring Once the first two steps are accomplished and the internal house is in order, an agency can begin to seek new external sales talent. With respect to recruiting successful sales people (producer investment), approximately 39 percent of all producers in the average agency are over the age of 50 years, compared to only 28 percent in high growth agencies. Additionally, the producers over the age of 50 years control 48 percent of all agency commission and fees and 43 percent of all new business sales. High growth agencies recognize the five-to-seven-year future risk associated with an aging production force and mitigate such risk by implementing a consistent, annual producer recruiting, hiring and retention plan. Peak organizations seek proven sales talent; they are slow to hire and quick to fire. The key, however, is that consistent hiring is seen as a necessary short-term investment to achieve not only organizational revenue growth, but long-term value as well. Creating a sales culture takes time and resources. It all starts with the realization that executives must lead, a commitment to long-term viability and the acknowledgement that change is good. This article first appeared in Insurance Journal, August 18, 2010. It is reprinted with permission.

THE TENNESSEE AGENT 15 December/January 2011

Calendar of Events PIA LOCAL CHAPTER MEETINGS • East Tennessee Chapter Contact Ron Welch, 865/689-6254 • Memphis Chapter Second Tuesday of every month in Memphis Contact Steve Peay, 901/766-0200

• Chattanooga Chapter Fourth Tuesday of every month in Chattanooga Contact Nancy Brannan, 423/892-6427 • 76th Annual Convention & Trade Show June 6-8, 2011 Marriott Shoals Resort & Spa Florence, Alabama

PIA Education P R E - L I C E N S I N G E D U C AT I O N

O N L I N E C O N T I N U I N G E D U C AT I O N

• Online Study and Traditional Self-Study Property & Casualty, Life & Health, Series 6 & 63. Go to: www.piatn.com/education

• C.E. approved courses, including Ethics and Flood 12 credit hours for most courses

D E S I G N AT I O N P R O G R A M S • Certified Professional Insurance Agent (CPIA) CPIA 1, 2, 3; C.E. approved; fulfills ethics requirement and approved for Utica E&O loss control credit • Personal Lines Coverage Specialist (PLCS) Online self-study; C.E. approved • Commercial Lines Coverage Specialist (CLCS) Online self-study; C.E. approved TRAINING FOR NEW EMPLOYEES Online training for employees with less than 12 months experience • Agency Orientation for New Staff • Delivering Quality Service to the Customer and the Employer • Personal Lines Coverage Basics 12 hours C.E. credit • Commercial Lines Coverage Basics 12 hours C.E. credit

• A nationwide network of insurance agents on the Internet. Why be on the internet alone when you can network with agents across America? • We’ll take care of your web presence so that you can continue to sell insurance. • Email for your staff • Custom-designed websites • Website hosting • Search engine placement on the Top 50 engines • FREE edit time monthly to keep your site up to date • Discounts for PIA of TN members • And so much more. Cost? Pennies or dollars per day — you choose. We’re the ONLY web design, web hosting company created BY an INSURANCE AGENT FOR the INSURANCE AGENT! XChange Insurance Network (formerly The Tennessee Insurance XChange)

Toll Free: (877) 377-1212 E-mail: Info@XChange Insurance.com Website: http://www.XChangeInsurance.com

2 0 1 0 E D U C AT I O N P A R T N E R S Accident Fund of America • Arlington-Roe • Bolton & Co. • Grange Insurance PIA Advantage Services Corp. • ServPro • U.S. Risk Insurance Group • Utica National Insurance Group 16 THE TENNESSEE AGENT December/January 2011

The best web marketing strategy

How to get the most out of “local search” B Y M AT T H E W M A R K O

y now, you’ve probably heard how creating a website or using social media can help increase visibility and generate leads for your agency. But you may not have heard about a faster, easier way to reach thousands of people in your local area who are shopping for insurance right now—and it’s free.

Matthew Marko is a Marketing Process Manager for Progressive Insurance. He works to provide local marketing strategies and tools to help independent agencies grow their business, and has developed several online marketing webinars for Progressive agents on ForAgentsOnly.com. E-mail him at matthew_marko@progressive.com.

It sounds too good to be true, but “local search” can give your agency excellent visibility at the same moment consumers are looking for a local agent. What is local search? Quite simply, local search is the name used to describe search engine results that show local business listings when a consumer searches for products or services in their area. For example, if a consumer enters “insurance + Savannah, GA” the results page will include a map and a list of the top ranking local agencies. Think of it as the new online alternative to a yellow pages directory. Because local search sifts through

business data, not websites, your agency doesn’t need a website to be included in local search. And since local search listings are often positioned higher on the results page than websites, your agency may show up above the top ranked insurance website—a position many spend thousands of dollars in search engine optimization to achieve. By claiming your agency’s free local listing, you’ll open the door for additional exposure and new business leads. Why local search works • Ninety-seven percent of consumers use the internet to shop locally.i • Ninety percent of online searches start with a search engine, not a company website.ii • Americans conducted 16.4 billion searches in June 2010,iii and twenty percent of Google searches are local in nature. This suggests over three billion local searches are conducted in the U.S. every month. • Of the more than 20 million businesses in the U.S.,iv only 2 million (10 percent) have claimed a Google local listing.v We all know the internet has changed the way consumers look for information about products and services. But according to a Progressive survey, three out of four independent agencies still haven’t taken advantage of local search. Now is the perfect time for you to take the lead in your market by developing a local search strategy. How to get star ted The easiest way to claim your local listing is by visiting GetListed.org, a free THE TENNESSEE AGENT 17 December/January 2011

service that checks your current listings and helps you claim them with major search engines including Google, Yahoo, and Bing. Just type in your agency name and zip code, and GetListed.org will score you on how well your agency is represented in local search. If you haven’t claimed your listings, the site will also link you to the claiming page of each search engine. The rest is simple. For each search engine, just register for a free account, then provide information about your agency. Be sure your listing includes the following essential details: • Business address; • Local phone number; • Website (if applicable); • Business hours; • Insurance products; and, • Special services. Here are a few more tips for setting up your local listing: • Be consistent: Make sure your agency information appears exactly the same everywhere online. When search engines locate information

about your agency, they look for exact matches. By providing consistent information, you can start pushing your agency toward a higher local search rank. • Get verified: As part of the claiming process, you’ll need to verify that you are who you say you are. This verification is different for each search engine, but is typically done by sending a confirmation code via phone or postcard. • List multiple locations: If your agency has multiple locations, claim a listing for each office. However, avoid creating duplicate local listings for the same location. Search engines will likely penalize you for doing so. Making the most of local search After you claim your listing, adding more relevant information will likely help your agency move up on the list of local results. Here are some ways to enhance your local listing:

• Include keywords: Update your business description and categories to reflect your offerings (ex: auto insurance, home insurance, business insurance). If you represent carriers with recognizable brands, include carrier-approved keywords (ex: “Authorized Progressive Agent” is pre-approved for Progressive agent use) • Get reviewed: Encourage customers to post reviews of your agency. • Increase exposure: Add your agency to other free online directories, like SuperPages.com MerchantCircle.com, Localeze.com, and your local Chamber of Commerce website. Also consider submitting your agency information to Universal Business Listing, which distributes your agency information to online directories for only $30 a year. • Add content: Post additional content like photos and videos to your listing. • Learn from others: Study the listings of high-ranking agencies in your area and adopt their best practices. • Monitor your listings: Assign one person in your agency to monitor listings on a monthly basis. The local search environment is constantly changing. By acting before your competition, you’ll get the greatest impact and value from your listing. You have nothing to lose—it’s easy. It’s fast. It’s free. • i

iii

18 THE TENNESSEE AGENT December/January 2011

http://www.kelseygroup.com/press/ pr100310.asp http://www.kelseygroup.com/press/ pr100310.asp http://www.comscore.com/Press_ Events/Press_Releases/2010/7/comS core_Releases_June_2010_U.S._ Search_Engine_Rankings http://sites.google.com/a/pressatgoogle.com/googleplaces/metrics http://www.census.gov/epcd/www/ smallbus.html#Nonemployers http://sites.google.com/a/ pressatgoogle.com/googleplaces/ metrics

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P.O. Box 12269 Murfreesboro, Tennessee 37129 615/896-6133 Robert Wells, Director of Marketing

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Parthenon Insurance Services, LLC Your Source for Health Insurance 3016 Vanderbilt Place Nashville, Tennessee 37212 615/327-4070 615/327-4071 fax Karen R. Tidwell, CPIA

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THE TENNESSEE AGENT 19 December/January 2011

the

Tennessee agent 504 Autumn Springs Court, A-2 Franklin, Tennessee 37067