GMA October 2018 by VIAA

GREEN MOUNTAIN AGENT VERMONT INSURANCE AGENTS ASSOCIATION | OCTOBER 2018

Vermont Insurance Agents Association is a statewide trade association representing nearly 100 independent insurance agencies in Vermont, with more than 900 employees. VIAA member independent insurance agents represent more than one insurance company, and as a result, can offer clients a wider choice of auto, home, business, life and employee benefits.

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ermont Mutual is proud to have served Vermont and the New England market through the longstanding partnership with our Independent Agents. It remains our privilege to work with the finest Independent Agencies in the industry … the only place you can buy a Vermont Mutual policy.

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Vermont Mutual is proud to sponsor the Vermont Insurance Agents Association’s new Education Center in Williston, Vermont.

Green Mountain Agent is a publication of

CONTENT OCTOBER 2018

Letter from the President

600 Blair Park Road Suite 100 Williston, VT 05495 Phone: 802-229-5884 Fax: 802-876-7912 www.viaa.org VIAA Officers President Paul Plunkett, CIC Vice President Alan Kinney Secretary/Treasurer Dan Rodliff National Director Ron Bixby

Directors Chip Ams Michael Barrett Erin Odell, CIC

Staff Executive Director Mary Eversole mary@viaa.org

Newsflash

InsurTech

14 Feature: Knowledge

Feature: Opinion

Young Agents News Brief

E&O Corner

Feature: Sales & Marketing

Insurance Commentary

Company & Agency News

GMA Publication Design LONDONmiddlebury londonmiddlebury.com

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LETTER FROM THE PRESIDENT OCTOBER 2018

First, let me express my appreciation for the honor to serve as VIAA President. I would also like to thank Commissioner Pieciak, Deputy Commissioner Rouleau and David Tralka, President & CEO, InsurBanc for joining us at our Annual Business Meeting held last month. It’s hard to believe that our 112th Annual Convention has come and gone already. What a great event with top rated continuing education, pumping up our attitudes with Sam Glenn, learning about how the new income tax laws impact our agencies and clients, the fantastic trade show and President’s Reception. The YACS hit it out of the park with their Wig Party Carnival! That was a first. Thank you to all who attended and our sponsors that supported our event. I hope everyone enjoyed it as much as I did. As I look at the year ahead, one word comes to mind, “Resource”. VIAA has access to many resources for our members. If you don’t see what you need on the website give the association a call.

Paul E. Plunkett, CIC

VIAA Incoming President

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Get to Know AmTrust. Visit d19.amtrustinsurance.com or call 877.215.7577 AmTrust is AmTrust Financial Services, Inc., located at 59 Maiden Lane, New York, NYNY 10038. Coverages areare provided by by its its property and AmTrust is AmTrust Financial Services, Inc., located at 59 Maiden Lane, New York, 10038. Coverages provided property and casualty insurance company affiliates. Consult thethe applicable policy forfor specific terms, conditions, limits and exclusions to coverage. casualty insurance company affiliates. Consult applicable policy specific terms, conditions, limits and exclusions to coverage.

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FSC “XV,” Stable Outlook FSC “XV,” Stable Outlook

NEWSFLASH: VERMONT PLAN TEMPORARY INSURANCE ID CARDS WILL BE GENERATED AT THE POINT OF SALE

On September 18, 2018 the Vermont Automobile Insurance Plan will introduce two options that allow certified producers to generate Vermont Plan temporary insurance identification (ID) cards at the point of sale through the Plan’s Electronic Application Submission Interface (EASi). This new functionality is provided at no cost to producers. For Private Passenger and Commercial Applications Submitted through EASi, the automation of the Vermont Plan’s temporary ID card is available to certified producers. The automation of the Vermont Plan’s temporary ID card is available for both Plan private passenger and Plan commercial applications submitted through EASi. Following the electronic submission of the private passenger or commercial application, a Plan-certified producer will have the option of generating and printing a Plan temporary ID card. The application data entered into EASi will be inserted automatically onto the card, which can then be printed and used immediately by the Plan applicant.

will then enter pertinent application data manually onto the ID card template. (This is similar to how certified producers currently complete Vermont Plan commercial applications in EASi.) Once again, the card can then be printed and used immediately by the Plan applicant. Do not use this option if the application is submitted through EASi. This option is only available to certified producers. Questions regarding the new temporary ID card options can be directed to Vermont Plan staff by email (vtaip@aipso. com) or by telephone (401-946-2800) Monday through Friday, from 8:15 a.m. to 4:30 p.m. For information contact: Roberta Haskins, Operations Manager Vermont Automobile Insurance Plan 302 Central Avenue, Johnston, RI 02919 (401)528-1509

For Commercial Applications NOT Submitted through EASi or Endorsements, For Vermont Plan commercial applications not submitted through EASi or by endorsement, certified producers will have the option to generate a Plan temporary ID card manually by completing an Adobe “fillable PDF” form. To create a Plan temporary ID card in this manner, a certified producer will be required to access the EASi web page and click on the Vermont Plan’s Temporary ID Card link on the left-hand side of the page. The producer W W W.V I A A .O R G

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INSURTECH: BUILDING SENSORS: CREATING AN ‘IKNOW’ ENVIRONMENT By Will Jones

Increasing safety is a key component of business efficiency. Yet, over half of small and mid-sized businesses don’t employ a dedicated safety professional—and more than a third do not offer formal safety training at all, according to Nationwide’s Annual Business Owner Survey. Simply put, the reason for this oversight is that many business owners just don’t have the time to train and educate their staff on how to keep their staff and premises safe. But considering 32% of all business owners and 71% of millennial business owners now use connected technology in their safety efforts, according to Nationwide, it appears that many businesses are now turning to technology as the solution. “Small business owners more and more are

looking to technology to enhance their safety programs and ultimately make their business operations more efficient,” says Tony Fenton, vice president of Commercial Lines Product & Underwriting with Nationwide. “We’re seeing that adoption continue to take hold.” As vehicle telematics, drones and wearable tech become common in protecting assets and employees, 16% of all business owners and 36% of millennial business owners are also using building sensors to detect dangerous temperature shifts, levels of humidity, water leaks and equipment failure, Nationwide reports. “The smaller business owner isn’t going to have someone on the premises 24/7, but having a sensor to trigger an alert in the event of a leak can really be a gamechanger,” W W W.V I A A .O R G

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Fenton says. “It allows the business owner to

“There are monitoring systems that are wired right into the furnace, and it’s a live thing,” says Ryan Hudson, Service Legends purchasNFP, a leading insurance broker and If a business owner wanted to install building ing and delivery manager. “If it’s not cooling consultant thatinprovides employee benefits, sensors their property, “there’s really no properly or if it recognizes a safety issue, such property & casualtyFenton (P&C),says. retirement, and impediment,” “With technology as an electrical problem or a leak, it would let costs moving down, and with carriers and know.” Please us send your resume to: individual insurance and wealth management distribution partners all becoming more and solutions is currently seeking an experienced more expert in this space, now’s the time to Dan Rodliff The shift from a client having to notice an Personal Lines Producer advance his or Vice President, NFP P&C evaluate if this is anto appropriate move.” issue and call a technician, versus a service her career as a Commercial Lines Producer professional receiving an alert through a PO Box 2243 and getting in touch with the client, WhileBurlington all segmentsoffice. can take advantage device in its South This positionof VT 05407in reducing a propcould be transformative buildingfor sensors, Fentonnew citessales bothfor commer- South Burlington, is responsible generating erty owner’s exposures. “That’s a mindset cial properties and homeowners as particu- Or all Commercial policies and requires larly “greatLines opportunities.” Building sensors that has never really been there in the home the ability to work closely with clients, in residential properties have the potential to Email:services industry,” Hudson says. “Technoldan.rodliff @nfp.com impact the representatives, industry by creating safer homes, ogy can get us to that point where we can be customer service producers, reducingand theinsurance severity ofcarriers. claims andThe improving preventative and proactive.” management, relationships with service providers. work environment is professional and very But from a residential perspective, “the pricsupportive. The ideal candidate Service Legends, a heating, should cooling have and ing of the technology” hasn’t yet reached a point where in-home sensors can become the ventilation specialist company based excellent interpersonal skills, {2+} years ofin Des norm, according to Hudson: “That needs to Moines, Iowa, has already embraced technolexperience, and ability to adapt to emerging ogy in business operations after installing be a little more developed to make it sometechnology. will be supported with thing that we can sell more to homeowners.” vehicleThey telematics software across its 40-vecommercial linestotraining mentoring hicle fleet improveand labor efficiency for and Will Jones is IA assistant editor. promote safe sales driving practices—and building prospect/planning, calls, proposals and sensors could be and next.casualty license is education. A property

South Burlington, VTenvironment.” be in an ‘iKnow’

required. NFP offers a highly competitive compensation and benefits package.

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KNOWLEDGE

FILL THOSE RIDESHARING COVERAGE GAPS

Many personal lines agents and brokers have insureds who drive for a ridesharing company like Uber or Lyft. But some of these clients may not be properly insured for this activity. Once you identify these individuals, consider the three phases of ridesharing to understand the possible coverage ramifications. Then, you will be equipped to effectively offer recommendations to fill potential coverage gaps.

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Uncover Your Ridesharing Clients To start, determine which of your personal auto clients drive for a ridesharing company. Ridesharing is when the personal auto owner transports passengers with their vehicle on short trips. Reach out to your auto client base and advise your ridesharing drivers of potential coverage gaps. Recognize the 3 Phases of Ride Sharing

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To explain how best to insure your clients who drive for ridesharing companies, consider the three phases of ride-sharing : Phase 1: The app is on, but a ride connection is pending. During this phase, the Uber or Lyft insurance coverage is liability only (excess over any possible personal auto insurance), with typically low limits. Phase 2: A trip is accepted and the driver is en route to pick up the passenger. The ridesharing insurance coverage is still excess only, but is deeper and broader during this phase. Gaps may still exist. Phase 3: The passenger is picked up, and the trip is underway. The ridesharing company’s insurance is similar to Phase 2 coverage, but is now primary. The PAP provides absolutely no coverage during this phase. Recommendations to Fill Ridesharing Gaps Although a few state variations may apply, the following recommendations will prove helpful to your Uber- and Lyft-driving clients: • Add the broadest endorsements, such as PP 23 41, ISO’s Transportation Network Driver Coverage (No Passenger), to the auto policy for protection during Phase 1 and 2. With this endorsement, the PAP provides primary coverage, and the ridesharing company’s insurance is excess.

•

If a jurisdiction does not permit a PAP endorsement, procure a business auto policy for your client to provide primary coverage.

•

Advise your client to purchase any optional insurance from the ridesharing company.

•

Consider increasing your insured’s auto liability limits.

•

Communicate to your client the limitations of the ridesharing company’s insurance, such as Lyft’s $2,500 physical damage deductible.

Become Your Client’s Personal Risk Manager This process is a reminder to evolve from simply selling insurance to becoming your insured’s personal risk manager. Your clients will thank you, and your retention rates will inevitably increase. For extensive information on this topic, subscribe to IRMI’s Personal Risk Management and Insurance. Please also sign up for IRMI’s free personal lines e-newsletter, the Personal Lines Pilot, for monthly articles on related topics.

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ALTHOUGH THE SEASON MAY HAVE CHANGED, SPECIALTY CAN GROW YOUR AGENCY YEARROUND By Carl Canales

OPINION

Carl Canales is the Regional General Manager for Safeco and leads distribution efforts in seven states. Carl began his insurance career working for a small family run agency in Austin, Texas. He was quickly drawn to the carrier side after working with distribution and underwriting professionals. Carl is married with two children. “Autumn is a second spring, when every leaf is a flower.” – Albert Camus In garages, driveways and slips across America, sit “toys” like classic cars, watercraft, motorcycles, campers, snowmobiles, golf carts and other specialty vehicles. They represent more than hobbies — they’re passion projects for their owners. And while it may be time to put away the RV and break out the snowmobile in Vermont, the purchasing cycle for and enjoyment of these “toys” lasts all year round. While the home and auto insurance markets are saturated, specialty is a great way to build a lasting connection with your clients and separate your agency from the crowd. By taking time to understand the lifestyle and dreams of your specialty clients, you deepen your relationships and uncover new ways to serve them, while generating referrals. “The independent agents of Vermont know that to succeed in our industry, it can no longer be business as usual,” says Mary Eversole, Executive Director of the Big I Vermont “With a constant barrage of new market entrants, IAs must look for ways to enhance their customer relationships and earn their status as trusted advisors – specialty lines help to accomplish those goals.”

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HOW A SPECIALTY FOCUS CAN GROW YOUR AGENCY Recently, Safeco conducted its Agent for the Future survey and asked independent agents about the trends and strategies they think will shape insurance through the year 2020. The survey revealed that increasing cross-sales is the number one way independent agents plan to grow. In addition to cross-sell opportunities, bundling specialty with other personal lines policies creates a stickier customer, since packaged business retains better than single policies. Independent agents can also provide additional value by bundling all the client’s policies with a single carrier.

Yet, despite the opportunities for growth with specialty products, they are a largely underpromoted category. Here are four ways you can use specialty to help grow your business and deepen your customer relationships year-round. BECOME A SPECIALTY EXPERT The key to becoming a specialty expert is to focus your efforts, and going with what you already know is a great place to start. Do you own rental properties? Do you boat, bike or snowmobile? If so, you have a natural place to begin. If not, follow your interests. With all the resources now available online, you can become a niche expert in no time and boost your cross-sell rates and long-term sales. Plus, the ability to educate clients on better protecting their passions further sets your agency apart from the competition, while opening new avenues for growth. GET TO KNOW YOUR CUSTOMERS’ INTERESTS Building strong customer relationships is essential to selling any policy, and specialty offers unique ways to connect with your customers. The trick is to speak their language. When you can talk to a customer about the hours she spent selecting just the right motorcycle, she’ll know you really “get” her. Similarly, while you are bonding over classic cars or the latest RV models with a client, you can ask deeper questions to better gauge their needs and interests. The conversation also lets you highlight your expertise, giving customers more confidence in the risk management strategies you present. GENERATE A STEADY SOURCE OF RELIABLE REFERRALS Specialty vehicle enthusiasts tend to congregate, whether for a Saturday morning cruisein or long motorcycle rides through the mountains. As a result, they are more likely to chat about insurance with friends with similar assets to protect — which can increase your pool of potential referrals. Focusing on specialty also lets you pinpoint your ideal customer while setting you apart. Any licensed producer can insure a standard sedan, but fewer understand the intricacies of protecting rental properties or classic cars. Focusing your acquisition efforts on specialty

can lead to quality accounts that retain and outperform other customers. While your current home and auto policyholders are good places to start for specialty leads, but don’t stop there. To drive referrals and establish new leads, visit local specialty vehicle dealerships, attend boat, motorcycle or classic car shows, or reach out to realtors selling rental homes. CROSS-SELL TO IMPROVE RETENTION AND INCREASE PROFITS Cross-selling is especially important now, as the public increasingly views an auto policy as a commodity. Focusing first on specialty increases your chances of capturing the entire account. Plus, building this side of your business can improve your bottom line by helping offset auto losses since specialty policies are typically profitable with more stable rates than auto or homeowners. THREE QUESTIONS TO HELP YOU SELL SPECIALTY NOW 1. Discuss specialty policies each time you do a risk assessment, especially at renewal time. 2. Every time you insure a truck or SUV, ask if it has a trailer hitch. If it does, they’re likely hauling something you can insure with specialty. 3. Do your clients travel for extended periods of time in their RVs? When they arrive at a destination, do they like to set up a full outdoor living space complete with outdoor furniture and a TV? If so, they may need greater coverage for personal effects. INDEPENDENT AGENTS PUT THE “SPECIAL” IN SPECIALTY. Independent agents are in a unique position to win with consumers — no other distribution channel offers the combination of ease, choice and advice that you do. When you demonstrate that you understand your clients’ lifestyle, priorities and passions, selling the right policies becomes easier and more profitable. In addition, taking time to become a specialty expert not only increases crosssale within a desired demographic, it positions independent agents as trusted advisors that really care about their clients.

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The Certified Insurance Service Representative (CISR) designation program is a nationally recognized education program directed at a very particular job description in the agencyâ€”the customer service representative. CISR COURSES MAY BE TAKEN FOR CE CREDITS FOR THOSE NOT SEEKING THE DESIGNATION.

CISR Elite status now offers an even higher distinction for those eager to gain greater skills and knowledge of insurance service and sales.

The CIC Program is for agency and company personnel -- owners, producers, agents, account managers, brokers, underwriters, and marketing or claims personnel. Participants should be licensed agents, brokers, adjusters, or solicitors; or have at least two years of full-time experience in the insurance industry or as a risk management professional; or have served for at least two years as a full-time insurance faculty member at an accredited college or university. CIC COURSES MAY BE TAKEN FOR CE CREDITS FOR THOSE NOT SEEKING THE DESIGNATION. ATTENDANCE REQUIRED FOR ALL DAYS TO RECEIVE CREDIT FOR INDIVIDUAL CLASSES.

James K. Ruble Graduate Seminars are designed specifically for CIC Designees and feature a variety of topics along with real-life applications in a seminar that is designed to satisfy the CIC annual update requirement. YOU MUST BE A CIC OR CRM AND A DUES-PAYING MEMBER OF THE SOCIETY TO ATTEND A RUBLE SEMINAR.

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YOUNG AGENTS

NEWS BRIEF

YAC SPOTLIGHT: KATIE ANDREWS, THE RICHARDS GROUP to make someone feel good about insurance. It doesn’t always sound attractive but these are important decisions for people and they need to know they will be taken care of by me, their agent.” Whether it’s spending an extra hour walking them through the process or going to their home to walk through their insurance, Katie will go the extra mile to meet the needs of her customers. Just this year Katie became involved with the Young Agents Committee. Like everything she does, she jumped right in, showing a passion for the organization. She recently returned from the BIG I event in Massachusetts and states “I’m excited about showing kids there is a career in insurance. The InVest program (currently being promoted by the YAC) is a great way to teach young kids about this career path and bring a new generation into the insurance industry.” Growing up in a small town outside of Middlebury, Katie Andrews sought a career that would fill her “people pleasing personality”. She spent a few years in the service industry while attending Vermont Technical College. “Born into customer service,” she was a waitress at her family restaurant. Here she realized that working with people and making a feel-good experience for them is what she loved the most. In 2012 Katie joined Kinney Pike Insurance in Rutland, VT and began a career that fit her personality and family needs. In 2014 Katie joined The Richards Group, formerly Holden Financial. Katie is Personal lines Account Manager at The Richards Group. Katie’s “upbeat and friendly” attitude makes her stand apart for her clients. “I do whatever it takes

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Recently married with 2 children, Katie spends as much of her free time gardening with her husband, playing with her children, hosting family events, and focusing on herself through fitness.

Helen Collins hcollins@viaa.org

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YOUNG AGENTS

NEWS BRIEF

VERMONT YOUNG AGENTS COMMITTEE WINS $1,000 SCHOLARSHIP AT YOUNG AGENTS LEADERSHIP INSTITUTE The Vermont Young Agents Committee recently won a $1,000 Scholarship for the best attendance at the Young Agents Leadership Institute in Springfield, Mass. The group was thrilled to receive the scholarship and the acknowledgement of their efforts in Vermont.

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YOUNG AGENTS

NEWS BRIEF

WE WOULD LIKE TO THANK VIAA COMPANY PARNTERS FOR THEIR ON-GOING SUPPORT OF THE YACS. WE EXTEND A SPECIAL THANK YOU TO THE FOLLOWING YAC SCHOLARSHIP FUND DONORS. OUR TRIP WOULD NOT HAVE BEEN POSSIBLE WITHOUT THEIR FUNDING. Leadership Partner

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O &

ER N R O C

INSURING AGAINST LARGE LOSSES: HOW BIG IS YOUR CLIENT’S UMBRELLA? by Brian Butcher

Brian Butcher is a vice president, claims expert with Swiss Re Corporate Solutions and teleworks out of the office in Overland Park, Kansas. Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re. The good news is that more people are purchasing personal umbrella policies to cover large, worst-case-scenario exposures. But insurance professionals must take great care when procuring these policies. Significant errors & omissions claims have resulted from the marketing and procurement of PUPs—or lack thereof. Here are a few landmines to watch out for: 1) UM/UIM. Does the PUP provide coverage above the primary auto policy on an underlying uninsured/underinsured motorist claim? Not all personal lines carriers cover this exposure.

2) Late notice. Failure to promptly report claims to the umbrella carrier in addition to the primary carrier is another common trigger of PUP-related E&O claims. Even if the underlying loss does not appear serious at first

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Most PUPs contain language requiring the loss to be reported to the carrier as soon as possible or practicable. To fulfill that duty, make sure you report every claim to every potential carrier as soon as you’re aware of it.

Today, more and more people are becoming concerned about protecting themselves and their families from liability exposure and damages they might incur in the wake of a serious accident.

Always check with the umbrella carrier to see if the policy includes UM/UIM coverage above the primary limits, and advise the customer in writing if it does not. Otherwise, if the insured is involved in a catastrophic accident and the umbrella does not provide coverage, they could—and often do—turn to their agent’s E&O carrier for relief.

blush, initial investigations can be inaccurate, and facts can change over time.

3) Gaps between policies. Are you confident that the primary policy limits satisfy the requirements of the PUP? If the primary and umbrella policies are with different carriers, this may not be the case. A common example: The customer procures their own primary auto policy from a direct carrier, while the agent places homeowners and personal umbrella coverages. PUPs usually have an attachment point that requires a certain amount of underlying coverage. Always get a copy of the declaration pages for all primary policies and advise the customer in writing of potential gaps in coverage.

4) Changes in circumstances. Handle any policy change request from the customer with fresh eyes, and communicate all policy changes to all parties in writing. 5) Limits. Does the PUP provide the amount of protection the client needs? Carefully review the PUP with the client to confirm that it meets the client’s expectations. PUPs differ in the amount of limits they offer and whether they “follow form” of the primary policy.

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Leasing: A Seamless Customer Experience

But don’t take it from us. Listen to your peers. Agents Express Leasing is an effective solution to manage your clients needs with today’s best equipment technology. Jay Byrnes of Byrnes Agency experienced how easy our leasing solution is for his agency: “As a longtime member of the “Big I”, I always knew of InsurBanc and their commitment to the independent insurance agent. Recently we wanted to update the agency with a new computer network and desktops, so I turned to InsurBanc for leasing options. 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”. – Jay Byrnes ~ Byrnes Agency How it works: • Lease terms are 24, 36, 48 or 60 months with a minimum transaction of $5,000 • You are looking for 100% equipment financing, including certain soft costs such as software, shipping, installation and maintenance* • No down payments or advance payments are required • Monthly payments can be customized to meet your special business needs • You are looking for potential tax benefits associated with equipment financing**

We invite you to see for yourself. Contact us today for help preserving your cash flow with an equipment lease solution. These materials are for informational purposes only. The availability of any financing described herein is subject to approval of applicant’s credit, the equipment supplier and the equipment. *Soft costs are limited to 20% of the total amount financed. **Nothing herein constitutes tax advice and customers are advised to consult with their own tax advisors prior to electing specific rates or options. Agents’ Express leasing is a program of De Lage Landen Financial Services, Inc., a third party not affiliated with InsurBanc, a Division of Connecticut Community Bank, N.A.

28 Member FDIC

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Please visit our web site at www.insurbanc.com or contact one of our leasing professionals at 800.957.0858.

Access the members-only Big “I” Virtual University, at

Rea l Qu esti o n s , Rea l A nswers

independentagent.com. Our experts explore and explain real issues and policy coverage questions in four areas: commercial lines, personal lines, life/health and agency management. Users can also dive into talent recruitment, tips for starting an agency and much more.

Yo u r Insu ra nce Technic a l So l u ti o n

Can’t ﬁnd what you’re looking for? Ask an expert and get an answer! If you can’t ﬁnd an answer to your insurance query in the more than 17,000 pages of content in our extensive online library, just use our “Ask an Expert” service. A member of our faculty comprised of more than 50 industry experts will respond to you with a personalized answer.

Live and On-Demand Education The Big “I” Virtual University oﬀers a wide range of live and on-demand education taught by leading insurance industry experts from across the country developed speciﬁcally for independent agents. All VU webinars include access to the live event and a link to the post-event on-demand recording, and our 90-minute deep dive sessions also include a transcript, a valuable and value-added reference tool.

New Agent Training Solution Pick and choose from 8 modules or follow the BASICS or BEYOND tracks.

OPERATIONS

BASICS OF CONTRACTUAL RISK TRANSFER

LAWS OF INSURANCE CONTRACTS

CERTIFICATES OF INSURANCE

REGULATIONS

PREMIUM AUDITING COPE COINSURANCE

The learning curve for a new insurance professional is steep, but the Big “I” Virtual University is with you every step of the way. Our experts have developed on-demand, online education to help agents with one or two years of experience get ahead. *Presented through Agents & Brokers Education Network (ABEN) platform with a variety of attendance options to work for any schedule. (May vary by state)

independentagent.com/BasicsandBeyond

Find all of this and more at

INDEPENDENTAGENT.COM/VU

SALES & MARKETING

GROW YOUR BUSINESS BY ASKING CUSTOMERS ONE QUESTION by Katie Gouldner

Katie Gouldner is PR and marketing communications specialist at Millers Mutual Insurance, a property-casualty insurer protecting small and midsize businesses in PA, DC, DE, MD and VA through a network of independent agents. Customer loyalty is about much more than repeat purchases—especially in insurance, where one person only needs so many policies. You’re always looking for new customers to grow the business, while also focusing on retaining current ones. And if you’re like most independent agents, you’re doing this without a team of dedicated marketing professionals. What if you could ask one question of your customers to boost business? Well, you can: “What is the likelihood that you would recommend Agency ABC to a friend or colleague?” This one question is used to calculate your Net Promoter Score (NPS)—a customer loyalty metric developed by Fred Reichheld in his 2003 Harvard Business Review article “One Number You Need to Grow.” NPS is a best-practice method of collecting data from current customers to determine strengths and weaknesses. According to Reichheld and Bain & Company, the creators of NPS, NPS leaders grow, on average, at more than twice the rate of competitors—and a high NPS correlates strongly with repurchases, referrals and other actions that contribute to growth. How can you collect NPS data about your agency? To simplify the process, create a

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form on your website that asks customers the above question, allowing them to answer with a single number from 0 (not at all likely) to 10 (extremely likely). Include one additional question asking customers why they gave you that number. At the end of each quarter, review your data and calculate your NPS. Based on the numerical answers collected from customers, you can categorize them into the following groups: Promoter, Passive and Detractor. Promoters are your cheerleaders. They respond with a 9 or 10 and are very likely to recommend you. Passive customers respond with a 7 or 8. They aren’t negative about your company, but they aren’t actively talking about you either. Detractors are customers who respond with

a 0-6. Let’s just say these customers aren’t leaving you any five-star reviews. To determine your agency’s NPS, simply take the percentage of promoters minus the percentage of detractors. Scores range from -100 to 100. The higher the score, the better. Determining your NPS score is important because it gauges your customers’ overall feeling toward your agency. It also helps determine whether your customer experience is positive or has room for improvement. If your NPS score is low, it’s time to plan tactics for improved experiences. If it’s high, you know you’re on the right track. And don’t forget—a good NPS is a marketing tactic for attracting new clients!

You’re always looking for new customers to grow the business, while also focusing on retaining current ones. And if you’re like most independent agents, you’re doing this without a team of dedicated marketing professionals.

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DISPELLING ANOTHER INSURANCE MYTH

William C. Wilson, Jr., CPCU, ARM, AIM, AAM is the founder of InsuranceCommentary.com. He retired from the Independent Insurance Agents & Brokers of America in December 2016 where he served as Assoc. VP of Education and Research and was the founder and director of the Big “I” Virtual University for over 17 years. W W W.V I A A .O R G

THE MEETING SPACE YOUâ€™VE BEEN LOOKING FOR

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This question was submitted last month by a Missouri agent to the Big “I” Virtual University’s “Ask an Expert” service: “Need to settle a disagreement. Per the above BI form [CP 00 30 06 07], if an insured sustains a loss to Inland Marine equipment that creates a loss of income scenario, does that trigger the BI form? I say no since it is a property form. The other person argues that since it states loss to property (with no specific definition of property) from an insured peril, then coverage applies.” This is a common misconception that I first blogged about here over a year and a half ago and wrote about on the VU many years ago. That blog post even cites a court case where the court likely misinterpreted the language of the policy. The question from the agent above indicates that he believes that, in order to trigger business income coverage, COVERED property – property insured on a commercial property form – must be damaged by a covered peril. The business income form, which can be purchased without purchasing direct property insurance, doesn’t say that. The ISO form says: “We will pay for the actual loss of Business Income you sustain due to the necessary ‘suspension’ of your ‘operations’ during the ‘period of restoration’. The ‘suspension’ must be caused by direct physical loss of or damage to property at premises which are described in the Declarations and for which a Business Income Limit of Insurance is shown in the Declarations.” Note that the business income coverage trigger only requires damage to “property,” not “covered property” or “insured property.” One of the responding VU faculty members cited a claim where vandals punctured the tires of over 100 service vehicles on the premises of an HVAC contractor. A similar loss occurred to a delivery fleet damaged on described premises by a tornado. All that is required to trigger business income coverage under ISO forms is loss to ANY property on a described location by a covered peril. In fact, ISO now has endorsements available to cover business income losses involving damage to autos and mobile equipment (e.g., food trucks) that occurs away from a described location. Remember: Folklore is not Fact.

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COULD YOUR CUSTOMERS USE A

PERSONAL UMBRELLA POLICY?

ACCIDENTS HAPPEN? That’s why people have insurance. However, if your customers aren’t protected by a personal umbrella policy, they could be putting their house or financial assets at risk. This low-cost policy is designed to protect families against a catastrophic lawsuit or judgment.

CONSIDER THIS: Existing homeowners and auto insurance may not be enough to cover a lawsuit or judgment. A personal umbrella policy will substantially increase your customer’s overall liability coverage beyond the basic coverage provided under homeowners and auto insurance policies. A SMART WAY TO PROTECT YOU AND YOUR FAMILY. You’ll find an RLI personal umbrella policy is a good idea. • Up to $5 million in additional insurance available • Backed by a financially secure, A+ rated company • Customers keep their current homeowner/auto insurer • Excess UM/UIM available • New drivers accepted — no age limit on drivers • Up to one DWI/DUI per household allowed • Auto limits as low as 100/300/50 in certain cases

Rated A+ 36 by A.M.Best W W W.V I A A .O R G

CALL TODAY

FOR AN IMMEDIATE QUOTE!

The RLI PERSONAL UMBRELLA POLICY is available through selected agents and program administrators in all 50 states.

CONTACT:

April Shrewsbury 800.221.7917 x5360 April.Shrewsbury@iiaba.net

RLICORP.COM

COMPANY & AGENCY NEWS

Vermont Insurance Agents Association Elects New Officers and Directors | Fifth Generation Vermonter Paul E. Plunkett Installed as President Williston, Vt – Paul E. Plunkett, CIC, senior vice president and principal of Hickok & Boardman Insurance Group, Burlington, VT was elected as president of the Vermont Insurance Agents Association (VIAA) yesterday. Plunkett’s involvement as VIAA’s president follows an active involvement with the association that includes serving as a board director, secretary/treasurer, vice president, a member of the Executive Committee and chair of the 112th Annual Convention. Within the Hickok and Boardman Insurance Group, Paul is the Director of Business Development for the property and casualty insurance operations of the company. Plunkett is deeply involved in many civic and trade organizations. Currently he serves as board chair of the Greater Burlington Industrial Corporation. Paul also serves on the board at ECHO Leahy Center for Lake Champlain, chairs the Finance Committee and is the vice board chair. Previously, he has served as chair of the Saint Michael’s College Green Mountain Scholarship Committee, board of directors for the Cancer Patient Support Foundation, and a director for the Flynn Theatre for Performing Arts. Paul received a BS in Business and Economics from Saint Michael’s College. He is a graduate of the Lake Champlain Regional Chamber of Commerce Leadership Champlain Program. He and his wife Gina live in Burlington with their four children, Remo, Jack, Phoebe and Harper. Other board officers include: Alan Kinney of Kinney Insurance in St. Albans, VT, vice president; Dan Rodliff, secretary/treasurer of NFP P&C in South Burlington, VT and Ron Bixby, national director from the Ludlow Insurance Agency in Ludlow, VT. The following agents also serve on the VIAA board of directors: Chip Ams of Finn & Stone Insurance in Manchester, VT; Mike Barrett of The Barrett Agency in St. Johnsbury, VT; and Erin Odell of Odell Insurance Agency in Bradford, VT.

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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 W W W.V I A A .O R G

In Memoriam: Christopher Lee Bessette, 1966- 2018

Essex - Christopher Lee Bessette, of Essex, VT, died peacefully Wednesday, September 5, at his home with his family by his side. Chris was born December 10, 1966, in Lancaster, PA, to Pat and Leon Bessette of Venice, FL. Although he and his family lived in several states over the years, they eventually settled in Leon’s home state of Vermont. It was here that Chris attended Essex High School. Chris was a gifted athlete. He held the state shot put record for many years. In addition to track and field, he played football and baseball. He continued on to Plymouth State University in NH and finished up his studies in education at the University of Vermont. Chris went on to co-own Bessette Insurance Services with his father, Leon, and has been working there for 29 years. Together they, along with their amazing coworkers, Myste, Jessica, Shirley and Scott, built a viable and successful insurance business. He especially liked the many golf outings that came with the job. Chris was well known and respected in the insurance community and will be greatly missed by his coworkers, customers and business acquaintances. Chris was a high school fisherman and hunter. outdoor activities like White Mountains and Island. Teaching his fish brought Chris great the fondest of memohe was out in nature, Lake Carmi or hunting one of Chris’ favorite artistry with anyone in less fond memories for

athlete as well as an avid golfer, Chris enjoyed many other camping with his family in the fishing off Cape Cod and Rhode children how to golf, hunt and joy and he leaves his children ries. Chris was happiest when whether it was ice fishing on in East Corinth. Fly tying was past times and he shared his need. He leaves behind counthis friends and family.

Chris is survived by his Morgan, Valerie and children, Chris precedhusband Jack and their Utah, as well his parents, Pat and Leon Bessette of Venice, FL.

wife, Diane and their 3 children, Jacob. Besides his wife and ed his sister, Kim Dainton, her daughter Avery, of Park City,

There will be a private ceremony for the family and friends. Memorial contributions may be made to Ducks Unlimited.

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DID YOU KNOW AGENCY E&O UMBRELLA IS NOW AVAILABLE THROUGH BIG “I” PROFESSIONAL LIABILITY A commercial umbrella underwritten by Swiss Re (rated A+ by A.M. Best) is now available exclusively to Big “I” members. Designed in collaboration with the IIABA to

PROTECT

your business with an E&O umbrella endorsed by IIABA

meet the needs of independent insurance agents Broad coverage over primary casualty lines,

including E&O Limits available up to $10 million over

CONSOLIDATE coverages with one carrier and avoid potential gaps

underlying primary E&O policy Will be available in 50 states and the

District of Columbia May to be written over a variety of E&O

carriers Contact your state association to learn more or to receive a quote today:

www.independentagent.com/EOContact

SECURE your agency’s future with the largest writer of agents professional liability in the country

SUPPORT your state association while protecting your business W W W.V I A A .O R G

Insurance products underwritten by Westport Insurance Corporation, Overland Park, Kansas. Westport is licensed in all 50 states and the District of Columbia. Insurance products mentioned may not be available in all states. Please contact your state administrator or Westport for availability in your state

Granite

Mt Mansfield

Ethan Allen

Champlain

Hanover Insurance Group

AmTrust North America, Inc.

Imperial PFS MAPFRE|USA MEMIC Patriot Insurance Company

Maple

Berkshire Hathaway GUARD Mackinaw Underwriters, Inc (part of the AmeriTrust Group) Main Street America New England Excess Exchange, LTD Johnson & Johnson

Travelers

THANK YOU 2018 ANNUAL PARTNERS!