GMA March 2015

GREEN MOUNTAIN AGENT A PUBLICATION OF VERMONT INSURANCE AGENTS ASSOCIATION

March 2015

Green Mountain Agent is a publication of

P.O. Box 1387, Montpelier, VT 05601 Phone: 802-229-5884 Fax: 802-223-0868 www.viaa.org VIAA Officers

President Michael T. Walsh, CPCU, CIC Vice President Daniel Lussier Secretary/Treasurer Peter Richards IIABA & PIA State National Director Ron Bixby Immediate Past Presiden t Jon Jamieson, CIC

Directors

In This Issue: March 2015 4 Message from the President 7 Be Aware Before You Share: A Message From the Department of Financial Regulations Features 12 Marketing Strategies: YReal Life Examples of How Social Media Can Benefit Your Business 15 Sales Success: Build Your Selling Confidence

E&O Corner 20 Does Your Agency Pass the Mirror Test?

Agency & Company News 23 Hickock & Boardman

Chip Ams Erin Odell Paul Plunkett

Staff Executive Director Mary Eversole meversole@viaa.org

GMA Publication Design Thorin Markison thorinmarkison.net

Are you trying to reach Vermont’s Independent agent’s?

Do you have a great ad that represents your company and have nowhere to place it?

Are you looking to hire?

Place your ad in VIAA’s monthly publication and have the opportunity to advertise and market to Vermont’s Independent Agents.

Questions on how to place an ad?

Contact Mary Eversole at meversole@viaa.org for placement options and advertising rates.

Vermont Insurance Agents Association ATTN: Advertising/ PO Box 1387/ Montpelier, VT 05601

Message from the President Countdown to Spring I’m sure we are all glad that it’s time to set our clocks ahead and make way for spring, or you could say Mud Season, here in Vermont.

The Legislature is at cross-over and it will be interesting to see what bills make the cut after Town Meeting Recess. While there have been several bills introduced to address the Independent Contractor issue the likelihood of passage is slim.

At VIAA the spring brings the revival of the Vermont Young Agents Committee (YACs). I offer congratulations to the newly elected officers of the committee.

Pat Cahoon, President, NFP – Poulos Insurance, St. Johnsbury Nick Grimley, Vice President, Hackett, Valine and MacDonald, South Burlington Alan Kinney, Treasurer, Kinney Insurance, South Hero Brittani Villandry, Secretary, NFPPoulos Insurance, Barre I’d also like to thank other members of the committee for their time and commitment to this group. Members of the YACs will also join me at the Big “I” Legislative Conference next month in Washington, DC where they will connect with YACs from all over the country for the first time.

The YACs have a full agenda for 2015 and all Young Agents (in the industry less than ten years or under the age of 40) are cordially invited to attend the Vermont Young Agents Committee Kick-Off event on Thursday, March 26, Arts Riot (400 Pine St., Burlington), 5 pm – 7 pm, to learn more about their plans. We’d like to thank Progressive for sponsoring this event and the support from VIAA Company Partners of the YACs. Later this spring we will take to the airways with the Vermont Agent Awareness Campaign thanks to the $97,500 grant we were 4

awarded to run the campaign from Trusted Choice. The campaign is expanding to radio and other venues in the state as well. We expect company support again this year and increased member participation. It will be good to see our members on television again and not just lizards.

Enjoy the thaw and have a great spring!

Michael T. Walsh, VIAA President

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From start to finish I experienced firsthand how seamless it was to conduct business with them. We have a 35 person agency so to update everyone’s computers was a decent size upgrade. InsurBanc made the process very easy and offered attractive terms and competitive rates which helped to manage the agency’s cash flow”.

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Be aware before you share DFR urges consumers to check insurance policies before sharing rides, rooms The new “sharing economy” is changing the landscape of small business in the U.S. and Vermont. Opportunities to rent everything from rides to rooms, golf clubs to cameras, are popping up everywhere and while you may be tempted to take advantage of these money-making innovations, make sure you know what your insurance policy covers.

Transportation networking companies (TNCs) such as Uber, Lyft and Sidecar and house sharing arrangements like Airbnb are household terms, but entrepreneurs are also lending vehicles, office space, parking spots, boats, bicycles, cameras and more. Although a smaller segment of the “sharing economy,” personal items like power tools, clothing, household items camping equipment, furniture, and even pets are being “shared” with complete strangers.

The “share-conomics” business models use technology – typically a website and/or smartphone application – to connect consumers with individuals interested in providing lodging, transportation or goods and services.

While joining this “collaborative consumption” revolution may sound like an easy way to make extra money from renting your home, car or other personal possessions, it is important to fully understand the insurance implications and liability considerations of such transactions for all participants.

The Vermont Department of Financial Regulation has issued some tips that may help keep Vermonters from making expensive and harmful mistakes.

Ride Sharing If you are considering ride sharing, whether you are a passenger or the driver, there are several things you should think about before you go.

Protect Yourself as a Driver When it comes to insurance, TNC’s generally do not operate like traditional licensed taxi or limousine services where drivers are required

to have a certain level of insurance. TNC drivers should be aware of a possible gap in insurance coverage between their own personal automobile insurance policy and the TNC’s insurance policy (if one exists). The major TNCs have policies covering their drivers, but these may not offer the full spectrum of protection that drivers or passengers may assume or expect.

Many standard personal auto insurance policies list exclusions if you use your personal vehicle to transport passengers for a fee. Some policies may even go further and list exclusions in the event that a driver is available for hire.

Other policies may be silent concerning coverage during the period when the driver has engaged the app and is looking for passengers, but has not picked up a passenger.

Drivers should not assume the lack of a specific exclusion means they have coverage.

Protect Yourself as a Passenger Passengers should be aware that the insurance gaps that may exist for ridesharing drivers can also have an impact on a passenger’s ability to be reimbursed for injury claims resulting from an incident during a shared ride.

House Sharing House sharing has become quite popular and provides accommodations that are generally less expensive than hotels. It offers added income for those who rent out all or part of their home and is an affordable means of travel for people who are looking to save money. One of the most well-known house-sharing enterprises is Airbnb.

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Be aware before you share Airbnb allows people to rent out and/or host lodging in private homes. In some cases, whole houses are available while others choose to rent only a bedroom in their home. According to Airbnb’s website, there are more than 1,000 listings in Vermont and 800,000 listings in more than 190 countries worldwide. While the company has announced that it will begin offering liability coverage for U.S. hosts, the coverage is “secondary,” which means that Airbnb will require any claims to be processed through the host’s insurance policy first.

Anyone interested in hosting a house sharing arrangement like Airbnb should understand their homeowner’s or renter’s insurance policy and what coverage, if any, would be provided if a guest has a claim against them such as theft, property damage or injury.

Before sharing a vehicle or residence, make sure auto and homeowners’ insurance policies provide the protection you need.

When lending goods and services, be sure to set a security deposit that is sufficient to cover losses. Take photos and other information about your property in a home inventory.

Be mindful that for some items, you may not be able to locate an exact replacement.

Contact your insurance agent or your insurance company if you have any questions.

A message from the Vermont Department of Financial Regulation

Be Informed Commissioner Susan L. Donegan said as this trend of the “sharing economy” becomes more popular, DFR expects to see the insurance market adapt quickly to clarify and deal with the insurance gaps.

“Read and understand your policies to make sure insurance coverage is adequate and if you have any concerns that there may be inadequate insurance coverage for these types of sharing arrangements, talk to your insurance agent or insurance company,” she said.

Donegan urged Vermonters to remember that the bottom line is as a driver, passenger, homeowner or person looking for a place to stay while traveling, be aware of possible insurance consequences.

“Be aware before you share” tips: For insurance purposes, once you begin earning income from renting out personal property, you may be considered a homebased business. Make sure you understand all relevant legal and regulatory requirements.

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In the Industry less than 10 years or under 40?

e e t t i m m o t C n e s v ff E ent

You’re a Young Agent!

t n o Verm

g A g n u Yo

O k c i K

Thursday, March 26, 5 pm to 7 pm ArtsRiot, 400 Pine Street, Burlington RSVP: Nick Grimley, (802) 651-3306 ngrimley@hvm.com

SPONSORED BY

TOP 6 REASONS TO JOIN THE VT YOUNG AGENTS • Connect with other young agents • Network with vendor and carrier partners • Master the art of leadership • Give back to your industry and community • Experience one-of-a-kind learning opportunities • Be the future of the insurance industry

viaa.org

VERMONT

VERMONT

Vermont

Young Agents Committee Questions Answered

Who is a Young Agent?

A Young Agent is anyone who has worked in the industry for less than ten years or is 40 years of age or younger. A Young Agent does not have to be a licensed agent.

What is the purpose of the VIAA Young Agents Committee (YACs)?

The purpose of the VIAA Young Agents Committee is to provide a platform that will encourage and support leadership development, education and recruitment of young agents for the members of the VIAA. What are the goals of the YACs? • To be a self-sustaining committee that serves as a spring board for perpetuating the leadership of agencies and the support of the VIAA. • To be a committee that is successful in assisting with the development of the next generation of young agents in Vermont.

• To create networking opportunities focused on creating communications between young agents and the leaders of agencies, the VIAA and the carriers.

• To assist the VIAA in creating a network of relationships with our educational institutions and other recruiting areas.

Who makes up the Committee?

The committee shall consist of no more than 15 members including Chairperson, Co-Chair, Secretary

and Treasurer. Of the 15 members, no more than 5 insurance company representatives are eligible for membership. There will be no limitation for at-large members.

Who is eligible to join the VIAA Young Agents Committee?

You must meet the definition of a YAC as stated above and be employed by an agency member of VIAA that is in good standing.

How do I join the YACs? First provide your name, address, agency, and email to Nick Grimley, ngrimley@hvm.com to be added to the list and specify if you are interested in serving on the committee or would just like to be an atlarge member. The YAC Leadership will affirm your membership.

How often do the YACs meet?

The committee will meet regularly to discuss the agenda and be sure that the committee is on track with objectives and goals. It may be necessary to meet via phone or email in lieu of a physical meeting.

The committee can make decisions or votes from those meetings.

What does it cost to join the YACs? There is no membership fee to join the YACs. A fee may be charged from time to time for certain events.

Marketing Strategies with John Houle Real life example of how social media can benefit your business If you are still on the fence regarding the effectiveness of social media for your business, then I urge you to read on to learn about some real-life examples of how social media can help your community and promote sales.

Additionally, if you have already embraced social media to communicate your message, you may find some practical advice in this article.

But first, if you haven’t bought in yet, or you need some justification as to why you’re investing in social media, keep in mind the following: • 27 percent of time spent online is with social media, and women spend 30 percent more time on social media than men; • 70 percent of consumers trust brand recommendations from friends; • Approximately 46 percent of online users count on social media when making a purchasing decision; • And, the total amount of minutes people spend on Facebook each month is 700 billion.

If you’re starting out in social media, or considering investing more time and resources, keep in mind this actual case study: A local insurance agency decided this year to start a company Facebook page. They added photos and content and engaged the staff to like their own company and recommend to friends. They were able to garner 77 likes organically, and we recommended two new strategies to increase their connections: 1) hold a contest, and with every new like, that person would be entered into a drawing to win a free iPad; 2) work with a local charity, and for every new like a donation would be made. The agency opted to help promote a charity very near and dear to them.

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A local woman had been diagnosed with ALS, also known as Lou Gehrig’s disease, and the agency wanted to help raise money for her family. The agency sent out an eblast to all of their contacts, and the promotion went viral within hours. The end result was 733 new likes and considerable donations, not only from the agency but from other businesses and people wanting to also aide the family. The comments from people in the community continue to come in long after the promotion has ended.

In addition to helping a family in their community, the agency also benefited from the extraordinary good will it generated.

Whether you decide to partner with a charity or give away an iPad, there are applications you can use to help manage your promotions. These applications lend a more professional look to your page, and help you keep track of all your new contacts.

When social media works, you can expect more traffic to your website, increased referrals, and overall improved brand recognition. It takes work and a commitment from senior management. In fact, everyone in your company should be educated on the organization’s social media goals. In terms of commitment, you need to spend a minimum of 15 minutes per day to just get in the game, but to be aggressive a commitment of 2 hours per day is necessary. But as the previous examples have illustrated, your efforts can result in a substantial benefit to your company.

John Houle is the president of JH Communications and can be reached at 401.831.6123 or at john@jhcom.net.

! t u o g n i n n u r s i ime

T

Get your credits & Renew your Producer License before March 31 Be sure you’re in compliance and get your license before it’s too late!

For class information visit www.viaa.org/continuing-education-calendar/ Questions on education credits? Contact VIAA at viaa@viaa.org a message from:

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Sales Success with John Chapin How To Build Your Selling Confidence The biggest issue I see with salespeople, by far, is a lack of confidence. While most salespeople deal with this in quiet desperation, there are also the loud ego-maniacs who, while seeming to have too much confidence, in reality also don’t have enough and are simply over compensating. This lack of confidence and belief leads to a fear of making phone calls, knocking on doors, and otherwise doing whatever it takes to be successful.

Five Rules for Increased Confidence Rule #1: Stop making excuses and instead, develop your sales skills.

Two days ago someone told me the only reason he lost a $250,000 deal because he was $2,000 higher than the competition.

He then went on to tell me that his area is different from every area of the country and people really do buy solely on price.

That’s an excuse I hear about once a week.

Ten out of ten times, when I research their market and find the company doing the most business, the top company is always selling more expensive products to the same people who supposedly buy only on price. The truth is: your market is not the exception to the rule, price is simply an excuse for not doing the hard work of developing sales skills and learning to sell value.

There are the obvious excuses people use such as: the economy, “our prices are too high”, and “there’s too much competition”, and then there are the less obvious ones that the powerful subconscious brain creates to protect our fragile egos and save us from stepping out of our comfort zone. For example, I once had a Financial Planner tell me that the reason he doesn’t ask for referrals is because he “knows a guy” whose client got irritated and closed his account because he was asked for a referral.

Has that ever happened? Maybe. Assuming you’re asking nicely and not constantly beating

them over the head, the odds are probably 1 in 10,000,000. This leads to another issue I see a lot: Living as if the exception isthe rule. Living your life afraid of the exception, the 1 in 10,000,000, will ensure you have no life and no business. In fact, if you ran your whole life according to odds like that, you’d never get in a car, leave the house, or even get out of bed for that matter.

We come up with the most ridiculous, unlikely scenarios to avoid facing our fears. The key is to realize all excuses are just that: excuses, and whatever one you come up with, someone has had it worse and overcome it. So whatever excuse you keep repeating, stop it!! At the end of the day, price, the competition, and your significant other have nothing to do with where you end up, the only one who determines that is you.

Rule #2: Get completely sold on your product, your company, and you.

I have seen the most timid people become the most confident, persuasive salespeople when they believed in their product and what they were doing. I once watched a young stock broker who only opened three accounts in four months, open three in an hour when news came out on the stock he was pitching and it started to go up in price. He was possessed and wouldn’t take no for an answer. He knew people were going to benefit. If you have a deep knowing, an absolute belief and conviction that you unequivocally have the best product, and one that can help people, you will move Heaven and Earth to get the word out and make sure everyone has it.

Rule #3: Prepare.

The more prepared you are, the more confident you will be. You need to know your product and be ready for anything that comes up on the sales call. You need to have solid answers for every question, objection, 15

issue, and customer situation you might run into. The answers need to be committed to memory and roll off your tongue to the point where if someone were to wake you at 3 a.m., you’d be able to answer immediately.

Rule #4: Get comfortable being uncomfortable, and face and conquer your fears.

These two will do more to build your confidence and self-esteem than almost anything else.

In the most important times in your life you will be uncomfortable and also a bit fearful.

How many times in those situations did you do or say something you wish you hadn’t, or didn’t do or say something you wish you had? Look for uncomfortable situations, put yourself in them, and embrace them. What you’ll realize is that very few things in life are in fact life and death. When you come to this realization, you’ll simply take a deep breath, relax, and do and say what you need to.

“That cave you’re afraid to go into holds the treasures you’re looking for.” Fears create blind spots. When you overcome them you’ll wake up one day and see things you never saw. They’ve been there all along, your fears just simply wouldn’t let you see them. When you overcome a fear, you will be empowered and begin to run at fears as opposed to away from them.

Rule #5: Work on motivation and self-discipline The fastest way to motivation is to realize WHY you’re doing what you’re doing. What is the ultimate goal and payoff? To find your WHY, decide what you really want out of life.

What do you want your life to ultimately look like? What do you want for your family and your kids? What do you want to be able to do? With a powerful enough WHY, you will face any fear and endure through anything.

Self-discipline is getting in the habit of doing what you need to do every day whether you feel like it or not. If you can simply get in a daily routine and make everything you have 16

to do a habit, the locked in habits will usually be enough to keep you going and on track.

Here are some additional tips: • Fake it ‘til you make it. Act as if you already possess the confidence you need.

• Get someone to hold you accountable.

• Engage in self-confidence and selfesteem building activities.

• Stopping taking things personally.

• Stop caring what others think of you.

John Chapin is a sales and motivational speaker and trainer. For his free newsletter, or if you would like him to speak at your next event, go to: www.completeselling.com John has over 26 years of sales experience as a number one sales rep and is the author of the 2010 sales book of the year: Sales Encyclopedia. For permission to reprint, e-mail: johnchapin@completeselling.com

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Does Your Agency Perform the Mirror Test?

Curtis M. Pearsall, CPCU, AIAF, CPIA President – Pearsall Associates, Inc. and Special E&O Consultant to the Utica National E&O program Ask virtually any agents’ errors-and-omissions carrier what it sees as its biggest issue/cause for concern and “replacement of coverage” will likely be in the top 3. After all, how often does an agency replace coverage for a client, moving the coverage from Company A to Company B? It occurs many times in a week, or possibly in any given day, at most agencies.

Many insurance clients carefully watch their insurance costs. At some point, they will express concern about the cost or, at a minimum, advise your agency that they believe they are paying too much for their insurance, adding that they might get coverage cheaper elsewhere. Fearful of losing the account, your agency might remarket the account to several of your other carriers. When you present the “new” proposals to your client reflecting the lower premium, it is possible he or she will focus strictly on the opportunity to save money. However, there’s an important question to answer: Is the premium lower because the coverage is less?

Note the differences The key issue as you look to move the account from Company A to Company B is the possibility that the coverage with Company B is not as broad as Company A. If so, are the differences – more so the reductions – being brought to the client’s attention and his or her signoff secured? The courts often refer to this as the “Mirror Test.” Attorneys could argue that failure to advise the client of the differences would lead the client to believe the coverages were at least the same.

Think back over the last several years. Chances are your agency had some clients, personal and commercial, who were adamant in wanting 20

some premium relief. Ask most agency staff when was the last time they moved an account and they will probably say “yesterday” or “this morning.” It definitely happens with some frequency. In addition, from time to time your agency may need to move an account from the standard to the E&S market.

What could happen? Presume you move the account to another carrier where the coverage is not as broad in some areas. The client subsequently suffers a loss that would have been covered by Company A, but is not covered or not fully covered by Company B. If this happens, in all likelihood the client will question your agency about why the coverage was moved.

The client will probably say that he or she wanted to save money, but was not looking to give up coverage. Bottom line, the client may take the position that he or she never would have approved you moving the account if he or she was aware coverage was being given up.

There are several areas of possible difference.

The more common include sub-limits, the actual coverage grant, specific endorsements, definitions for areas such as “who is an insured,” what is excluded on one policy compared to another, and the carrier’s financial rating. In E&O policies, the scope of the covered professional services can vary greatly from one carrier to another. There have been E&O claims where the “retrodate” on the claims-made form was advanced, resulting in no prior-acts coverage.

The best approach The best approach is to take all the carriers you are considering and put the details on a spreadsheet, noting the various pertinent issues. This will take time, but it will be time well spent. On the spreadsheet, it is crucial to note the differences because simply moving the account and not advising the client of the

differences could cause a problem down the road. Some agencies share this spreadsheet with the client and bring to his or her attention the detail the client needs to know. Most importantly, the client sees the differences and can make an educated decision. At a minimum, the reductions between the expiring policy and the other carriers you are considering should be brought to the client’s attention.

When the client has made his or her final decision, secure the client’s signature noting which decision was made. This documentation will be vital if a claim occurs and your client finds out he or she didn’t have the coverage the client thought. While your client may chose the lower price with the lesser coverage, your agency should have a defense should a problem occur if the client’s decision is in writing.

Based on market conditions, from time to time agencies will find it necessary to move

coverage from the standard market to the excess-and-surplus-lines market. In these situations, the differences can be significant.

This issue is further compounded by the fact that it is probable the wholesaler is not providing all of the coverage that was requested. Therefore, be sure to review the E&S proposal, comparing it to the prior policy and to the coverages requested. Identifying the differences is up to your agency to uncover.

A great way Perform the necessary comparison when coverage is switched for a client from one carrier to another. This involves identifying the differences, bringing those differences to the client’s attention and getting his or her written sign off. This is a great way to keep this issue from becoming a potential E&O problem in your agency.

What makes the Insurance Career Center different?

Promotion where you want it: The Independent Insurance Agents & Brokers of America and InVEST work to promote the Insurance Career Center in the industry and with future insurance professionals at InVEST schools and colleges with insurance programs

Social media savvy: Postings automatically appear on the InVEST Facebook page, twitter Search qualified applicants: Post a job and gain free access to the resume search feature Entry level positions and internships are highlighted at the InVEST student website at www.learninsurance.org

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InVEST is a classroom to career insurance education program designed to increase awareness of the insurance industry with students and to introduce them to careers in the insurance industry.

To learn more about InVEST, visit www.investprogram.org.

Everything you insure is on your shoulders

Who do you trust to have your back?

VIAS offers the most prestigious Errors & Omissions carrier(s) in the country: Westport Insurance Company & Utica National Insurance Group

For a quote or for more information contact Helen Collins at hcollins@viaa.org or 1-844-609-1481

www.iiaba.net/eohappens

VIAS is a subsidiary of Vermont Insurance Agents Association viaa.org

Agency News Insurance Group Launches New Website with Enhanced Interactive Features Burlington, VT - Hickok & Boardman Insurance Group announced the release of a new and revamped website to provide visitors with the ultimate customer experience.

According to Shannon King, IT Director, “Hickok & Boardman customers have become accustomed to our motto “Here when you need us!” but we decided to take a second look at the meaning of those words, and understand how else we can be there 24/7 for our community.”

The company decided to implement their “Get Me Where I Need to Be” quote tool to help customers mark the price point they can pay for their insurance needs. “Once our customers choose a price point they are comfortable with, our licensed Insurance Agents roll up their sleeves and find the best possible coverage.

In essence, we want customers to put the ball in our court. We are looking at insurance through a different lens” added King.

Hickok & Boardman Insurance Group debuts their new website www.hbinsurance.com

The new Hickok & Boardman Insurance Group website includes: A new interactive quote tool allowing visitors to set a comfortable price point for insurance.

A detailed Resources, Products, and Industry section to help educate and share information on both Business and Personal Insurance.

An online “Report a Claim” feature with the ability to upload incident pictures in real time.

Visit www.hbinsurance.com to experience the new website.

About Hickok & Boardman Insurance Group Hickok & Boardman Insurance Group is a locally owned and operated insurance agency offering business and personal insurance, founded in 1821 with offices in Burlington, Lyndonville, Montpelier, St. Albans and Stowe.

Hickok & Boardman Insurance Group’s President Scott Boardman during the company’s website launch celebration

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Robert F. Glass

UNDERWRITING

Senior Vice President of Products and Distribution

Geoff J. Smith

MARKETING

PERSONAL LINES

Molly Ross

Director of Marketing

Carolyn S. Ix

Regional Vice President

Jeffrey S. McLaughlin Senior Marketing Representative

Director of Underwriting

Francine C. Boulanger Stephanie J. Richardson Diane T. Shadroui COMMERCIAL LINES

Joanie M. Smith Laurie L. Tatro Kim M. Whitcomb