IIARI INK NOV 2018 | VOLUME 1 ISSUE 4
INDEPENDENT INSURANCE AGENTS OF RHODE ISLAND Insurance News & Knowledge
NEWS & NOTICES RIJRA GOVERNING COMMITTEE UPDATES by Robert T. Hartnett Interstate Insurance & Finance Co.
The Rhode Island Joint Reinsurance Association (RIJRA aka Fair Plan) Governing Committee continues to review all aspects of the program, including operations, to better serve the public. From reinsurance to rates, technology to long term planning, the Fair Plan is constantly making improvements which will benefit all who participate. This year the Automatic Renewal Process was approved. With renewals effective 12/01/18 or later the system will issue renewals 45 before the expiration. This is more in line with what Voluntary Carriers have been doing. The CoreLogic M&SB Valuation Services have been upgraded to the latest version. The inspection management system was modernized which will greatly improve the inspection process including quicker turnaround. These are just a sample of the changes that have implemented this year. The RIJRA is planning onhaving an informational seminar through IIARI which will provide RI Agencies more information on the latest updates including Legislative issues and pending rate filings. More to follow on this. The Governing Committee is very pleased with the RI Agency force and their understanding that the Fair Plan should be utilized as the market of last resort.
MARK MALE APPOINTED TO SMALL BUSINESS ADVISORY COUNCIL Mark Male, Executive Vice President has been named to the new Small Business Advisory Council established by U.S. Representative David Ciciline. Mark will provide valuable insight on small business policy for the State of Rhode Island on the national level.
NOVEMBER & DECEMBER CHILD AND FAMILY TOY DRIVE
Help spread some cheer by donating new gifts to local families in need this holiday season. We will be accepting toys until December 7, 2018. Every ounce of participation means more than you can ever imagine! We are accepting gifts & donations for infants to teenagers! CLICK HERE FOR MORE INFORMATION >>
UPS DISCOUNTS - JUST IN TIME FOR THE HOLIDAYS! Did you know that Big “I� members can take advantage of competitive shipping savings rates available from UPS? These discounts are available even if you already have a UPS account. To enroll and start saving, visit savewithups.com/iiaba or call 1-800-MEMBERS (1-800-636-2377) Monday-Friday from 8 a.m.-6 p.m.
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UPCOMING CLASSES
3 WAYS TO MAKE YOUR LIQUOR LIABILITY CLIENT A BETTER RISK BY JACQUELYN CONNELLY, IA MAGAZINE The average liquor liability risk isn’t what it used to be.
11/28/18 @ 9:00AM ACSR #4 - E&O LOSS CONTROL This “INTERMEDIATE LEVEL” seminar is designed for agency personnel as an overview of the errors & omissions loss exposure facing the agency. Attendees will learn to evaluate their agency’s susceptibility to E&O claims, how to avoid them and what to do in case of an E&O claim. CLICK HERE TO REGISTER ONLINE >>
12/03/18-12/05/18 @ 9:00AM LIFE & HEALTH SCHOOL This three day program will provide key information in Life & Health, plus State Laws and Regulations that prepares attendees for the State Producer exam. CLICK HERE TO REGISTER ONLINE >>
12/03/18-12/06/18 @ 9:00AM P&C PRODUCER PREP SCHOOL
This four day program will provide key information in Personal Lines, Commercial Lines, plus State laws and Regulations that prepare attendees for the State Producer exam. CLICK HERE TO REGISTER ONLINE >>
From the booming brewery, winery and distillery movement to trends like BYOB restaurants and wine service at hair salons, liquor liability exposures have become far more pervasive—and complicated. “The traditional Cheers bar where people have a couple different varieties of beer available, no food, no entertainment—that kind of stuff is just going away, and it’s being replaced with a more upscale experience,” says Thomas Gillingham, managing director of EverGuard, an NFP-owned company. For many business owners, that translates to more expensive buildouts and higher revenues—overall, “a more sophisticated risk that’s generating more premium,” Gillingham explains. “Agents need to recognize that consumers are demanding a better experience, that these risks are following suit, and that it’s now a more sophisticated transaction in terms of the level of professionalism of the operators you’re dealing with and their expectations around product delivery.” In other words, it’s not enough to sell someone an affordable liquor liability policy. Today’s insured wants more. “As these operations are run by more sophisticated people, they expect a higher level of professionalism with their agent—somebody who will partner with them in risk management and mitigation, not just offering a cheap price,” Gillingham says. “If you’re focusing on clients that only want to save money, you’re not building a stable book of business.” To add value to the agent-client relationship, share these three important risk management techniques: 1) Surveillance and documentation. “Surveillance can save you from going out of business,” says Sandra Haley, senior vice president of underwriting and marketing at Hospitality Insurance Group. “If there’s a claim and you have video to prove what you’re saying versus what the injured party is saying, you can win a case. Without that, it’s your word against theirs.” In particular, because incidents are very likely to occur on Friday and Saturday nights between midnight and 2 a.m., “I would make sure my surveillance cameras for those hours are backed up and kept for a really long time,” Haley recommends. “The later your bar stays open, the greater chance you’re going to end up with the claim.” Incident logs are similarly important. “We want to make sure people are documenting incidents—gathering and preserving evidence, whether it’s video evidence or witness statements,” Gillingham says. “A lot of these claims
Thanksgiving. Kids love to be involved in holiday preparations. Safety in the kitchen is important, especially on Thanksgiving Day when there is a lot of don’t actuallyactivity materializeand into litigation until later, so when there’s an people atyears home.
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incident that would give rise to a claim, they need to at least be preserving the evidence.”
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Thanksgiving Did you know? Safety
THANKSGIVING SAFETY TIPS
Stay in the kitchen when you are cooking on the
2) Alcohol awareness training. Whether TIPSan training, ServSafe® or stovetop so you can it’s keep eye on the food. another formal program, this is perhaps the most crucial risk management • liquor Stayliability in thespace. home when cooking your turkey and practice in the
on it frequently.
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“The most pronounced of that equation is controlling flowstove will be • Keep piece children away from the stove.the The of alcohol,” says Bill Turner, vice president and solutions leader, hot“As and should stay 3 feet away. BerkleyReSolutions. thekids owner of an establishment, it behooves you to have employees who aresure well-trained in identifying folkshot whofood are exhibiting • Make kids stay away from and liquids. visible intoxication and monitoring the consumption rate of patrons to make The steam or splash from vegetables, gravy or coffee sure they’re not drinking at a dangerous rate.”
could cause serious burns. Staff should • alsoKeep be trained tactics for “defraying unlawful and toys, theon floor clear so you don’t tripsituations over kids, preventing altercations,” Turner adds. And underwriters also look for evidence pocketbooks or bags. that insureds have policies in place regarding checking IDs for patrons who Keeporknives out of the reach of children. appear to be•30 years younger. • Be sure electric cords from an electric knife, coffee “The insured needs to indicate that if an employee doesn’t follow these maker, plate warmer or mixer are not dangling off the procedures, there will be ramifications regarding continued employment and counter within easy reach a child. liability,” Turner says. “If they don’t do all that, weof don’t want the risk.” • Keep matches and utility lighters out of the reach of Note, too, that it’s not enough for an insured to invest in a formal training children — up high in a locked cabinet. program on an annual basis. “It’s inherent in these businesses that they have • turnover. Never leave children aloneTIPS-certified in room with lit but candle. significant staff So it’s great that you’re one a day, if I come back a month from now and there are three new employees, have they • Make sure your smoke alarms are working. Test them been through that same training?” Gillingham points out. by pushing the test button. “Once we train our clients with regards to rules and regulations, we have to re-audit them to make sure they’re adhering to it,” agrees Jeff Stagg, senior FIRE leader at NFP. “There’s always a vice president, claimsNATIONAL services practice PROTECTION ASSOCIATION reassessment process that needs to take place to help mitigate and prevent The leading information and knowledge resource on an ongoing basis.”on fire, electrical and related hazards
The kitchen is the heart of the home,is especially Thanksgiving the leading at Thanksgiving. Kidsfires love day of the year for home to be involved in holiday involving cooking equipment. preparations. Safety in the kitchen is important, Have activities The kitchen is the heart of thethat home, keep kids out of the kitchen especially on Thanksgiving especially at Thanksgiving. Kids love to be during this busy time.is Games, involved holiday preparations. Dayinwhen there aSafety lot of puzzles orisbooks canespecially keep them in the kitchen important, on activityDay and people at of home. busy. Kids can getthere involved Thanksgiving when is a lotin activity and people at home. Thanksgiving preparations with • • •
3) Safe ride home policies. In the event that an insured’s staff fails to prevent nfpa.org/education ©NFPA 2017 • an individual from over-intoxication, “they still have an obligation to make sure that person isn’t going to get into a motor vehicle and injure someone or damage a third party’s property,” Turner says. Fortunately, with the proliferation of ridesharing, safe ride home policies are easier to implement than ever before. Companies like Uber and Lyft are already piloting programs that could “change life dramatically for establishments,” says Haley, who cites one company that’s offering free or discounted ride vouchers for patrons who drink at establishments associated with the brand. EverGuard, too, recently entered a partnership with a company that puts single-use breathalyzers inside establishments, free of charge. “It’s a tool staff can use to cut someone off, or in cases where someone wants to know, ‘Am I OK to drive? I had two glasses of wine,’” Gillingham explains. “The breathalyzer comes with a $10 rideshare voucher, so if you find out you’re above the legal limit, you’ve got an incentive to use an alternative way to get yourself home.” For years, there’s been “little social tolerance” for drinking and driving, Gillingham says. “People still do it, but with the advent of ridesharing and more awareness, the stigma continues to move in the right direction. We think those sorts of tools will continue to make a difference.” Jacquelyn Connelly is IA senior editor.
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recipes cankitchen be donewhen outside • Staythat in the you are coo Stay in the kitchen when you are the kitchen. stovetop so you can keep an eye on cooking on the stovetop so you can
an eye on the food. when cooking you •keep Stay in the home Stayon in it thefrequently. home when cooking your turkey and check on it frequently. •Keep Keep children away children away from thefrom stove.the stove. Thehot stove willkids be hot and kids should and should stay 3 feet away stay 3 feet away. •Make Make sure kids stay away from hot f sure kids stay away from hot The or splash from vegetable food andsteam liquids.The steam or splash from vegetables, or coffee could causegravy serious burns. cause serious burns. •could Keep the floor clear so you don’t trip Keep the floor clear so you don’t trip pocketbooks or bags. over kids, toys, pocketbooks or bags. Be sure electric cords from an • Keep knives out of theelectric reach of child knife, coffee maker, plate warmer •or mixer Be sure electric cords from an electr are not dangling off the maker, plate mixer are no counter within easywarmer reach of aor child. Keep matches and utility lighters out counter within easy reach of a child. of the reach of children — up high in •a locked Keepcabinet. matches and utility lighters ou children — up alone high ininroom a locked cabin Never leave children with a lit candle. • Never leave children alone in room w Make sure your smoke alarms are •working. MakeTest sure your alarms are w them by smoke pushing the testby button. pushing the test button.
NATIONAL FIRE PROTECTION ASSOCIATION The leading information and knowledge resource on fire, electrical and related hazards
nfpa.o
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IBHS INTRODUCES OFB-EZ SPANISH EDITION TO HELP HISPANIC-OWNED BUSINESSES PREPARE FOR DISASTERS Risk Management Resources IIARI Members Can Share with Insureds PROVIDENCE, R.I., Oct. 17, 2018 – Many small businesses are unprepared to respond to a weather disaster like a hurricane or a blizzard, or other business disruptions such as a structure fire or long-term power outage. Statistics show one in four businesses that close due to a disaster will never reopen. Developing a business continuity plan should be a high priority for all small businesses across Rhode Island so they can survive and quickly recover from costly interruptions, which can exceed $3,000 per day of disruption. The Insurance Institute for Business & Home Safety (IHBS) provides key guidance for small businesses to prepare for any type of disruption with its widely acclaimed OFB-EZ (Open for Business-EZ) business continuity toolkit. The demand for this free, eight-module risk management program has expanded to the surging Hispanic business marketplace, prompting IBHS to create a Spanish edition of the OFB-EZ toolkit. “Hispanic-owned businesses are a great force driving small business growth in the U.S,” said Gail Moraton, business resiliency manager, IBHS. According to the U.S. Hispanic Chamber of Commerce, 4.4 million Latinoowned businesses contribute more than $700 billion annually to the U.S. economy and have generated nearly 32 percent top-line growth over the past five years, more than double the growth rate of all other business sectors. “As IBHS observed the trend of an expanding Hispanic small business market, we also identified the need to assist business owners whose primary language is Spanish to help them better prepare for disasters and other types of business interruptions. The new Spanish version of OFB-EZ accomplishes this goal and will be a valuable resource that IIARI members can share with their commercial insureds,” Moraton added. In conjunction with the rollout of the OFB-EZ Spanish edition, IBHS has also introduced new guidance for tracking essential business equipment during a disaster. Know Your Equipment provides a path for small business owners to highlight equipment essential to staying open before, during and after a disaster. This OFB-EZ module is available in English and Spanish. IBHS wishes to thank several contributors for spearheading the translation of the OFB-EZ toolkit into Spanish, under the auspices of Tulsa (Okla.) Community College’s Translating Skills Program, in collaboration with the Tulsa-based Disaster Resilience Network’s (DRN) Business and Cross-Cultural Councils:
PAC DONATIONS IIARI and IIABA are engaged in the legislative process – on Capitol Hill in Washington, DC and on Smith Hill in Providence, with our two political action committees (PAC).
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Johan Sebastian Martinez-Vargas, translator, Tulsa Community College Spanish Translating Skills Program Odilia Peña, instructor, Tulsa Community College Translating Skills Program Tina Peña, instructor, Tulsa Community College Translating Skills Program Tim Lovell, executive director, Disaster Resilience Network (formerly known as Tulsa Partners Inc.) David Hall, chair, DRN - Disaster Resilience Business Council Alex Gomez, co-chair, DRN - Disaster Resilience Cross-Cultural Council Michael Grogan, co-chair, DRN - Disaster Resilience Cross-Cultural Council
About Disaster Resilience Network The mission of the Tulsa, Okla.-based Disaster Resilience Network is to empower people, businesses and communities to reduce the impact of disasters. To learn more, please visit www.disasterresliencenetwork.org. About Tulsa Community College Tulsa (Okla.) Community College educates more than 27,000 students each year. To learn more, please visit www.tulsacc.edu. About the Insurance Institute for Business & Home Safety (IBHS) IBHS’ mission is to conduct objective, scientific research to identify and promote effective actions that strengthen homes, businesses and communities against natural disasters and other causes of loss. Learn more about IBHS at disastersafety.org. Contacts Mark Friedlander (904) 806-7813 MFriedlander@IBHS.org
Tiffany Smith (512) 636-7811 TSmith@IBHS.org
DONATE TO INSURPAC
DONATE TO IIARI PAC
Or by check: Payable to “InsurPac” 20 F Street, NW Suite 610, Washington, DC 20001. InsurPac CAN accept non-corporate LLC or partnership checks.
Or by check: Payable to “IIARI-PAC” Political Action Committee, 2400 Post Road, Warwick, RI 02886 IIARI an only accept personal checks.
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NATIONAL FLOOD INSURANCE PROGRAM (NFIP) CHANGES
TRUSTED CHOICE ADVANTAGE
The National Flood Insurance Program (NFIP) is constantly evolving and Selective is your go to resource to keep you updated on recent NFIP program changes. Changes were recently made effective October 1, 2018. Click here for a copy of the new October 1, 2018 NFIP manual. A few of the changes include: Cancellation Reason Code 26 for Duplicate Coverage under Non-NFIP Policy FEMA established Cancellation Reason Code 26 to allow cancellation of an NFIP policy when a policyholder has obtained a duplicate policy from sources other than the NFIP. The non-NFIP insurance coverage must be for building coverage on the same building that is insured by the flood policy being cancelled. Required Notification of PRP Eligibility for Certain Cancellation Reasons Prior to processing cancellations for the following Cancellation Reason Codes, NFIP insurers must inform eligible policyholders with standard rated policies for property in a non-Special Flood Hazard Area (SFHA) of their option to convert to the Preferred Risk Policy (PRP): • Reason Code 8 – Policy Not Required by Mortgagee • Reason Code 9 – Insurance No Longer Required by Mortgagee Because Property Is No Longer Located in a Special Flood Hazard Area Because of a Physical Map Revision or LOMR • Reason Code 15 – Insurance No Longer Required Based on FEMA Review of Lender’s Special Flood Hazard Area Determination 1 • Reason Code 19 – Insurance No Longer Required by the Mortgagee Because the Building Has Been Removed from the SFHA by Means of a LOMA. To implement this requirement, NFIP insurers may develop notice requirements that align with their normal business practices. NFIP insurers must be able to demonstrate that they informed eligible policyholders of the availability of the PRP. Insurers may cancel/rewrite the policy to a PRP using the current cancel/rewrite procedures outlined in Cancellation Reason Code 22 or 24, as appropriate. Extended Eligibility for Newly Mapped Rating Procedure FEMA is extending the time period for properties newly mapped into an SFHA to be rated using the Newly Mapped rating procedure, instead of going immediately to full-risk (actuarial) rating. Currently, properties newly mapped into an SFHA, are eligible for the Newly Mapped rating procedure if the applicant obtains coverage that is effective within 12 months of the map revision date. Effective October 1, 2018, FEMA is expanding eligibility to be either within 12 months of the map revision date or within 45 days of initial lender notification, if the notification occurred within 24 months of the map revision date. In these cases, the Newly Mapped multiplier to be used for premium calculation should be based on the map effective date along with the policy effective date for that new business transaction. As an insurance professional you are positioned to provide guidance to your customers on how recent NFIP changes impact their flood policy, and Selective is here to support you. Keeping you informed and your customers protected is our number one priority. Questions? Give us a call today! Selective Flood 877-348-0552
The fall is a good time to take stock of the current business year and begin to plan for 2019 before January 1 renewals get into full swing. Here at IIARI we are planning for 2019 too. Growth-focused agencies know that finding good business is a never-ending task, and make marketing a key component of their business plans. As consumer behavior changes, so too must marketing. An Advantage subscription on TrustedChoice. com is the best way to get your agency in front of those buyers who are researching insurance on the web. More and more agencies are realizing that the Return on Investment from an Advantage subscription accrues to their agency in many ways. Of course there are easily measured returns from writing business, but there are also returns that are harder to measure. An additional professional presence on the web, a steady flow of consumers seeing the agency brand, and testimonials and links to your social media platforms all build your credibility. Listen to Brent Skeeters from Ramse Insurance to hear about the large commercial account he wrote for an “immense” ROI. Your association leadership is hearing encouraging reports like this one from many agencies. Call or request a demo today to see how an Advantage subscription from TrustedChoice.com will help your agency grow.
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IIARI PHOTOS
Above: Trusted Choice advertising is on the court at Providence College. Right: IT Security Dos and Don’ts a free class for members at IIARI this month.
IIARI INK CALL FOR NEWS We invite you to submit your agency news for publications in the association’s monthly digital newsletter: IIARI INK (Insurance News & Knowledge). The following agency news would be appropriate material for publication: • • • • •
Staff promotions Staff retirement New hires New innovative agency practices Charity sponsorships/fundraisers/events
The cutoff date for each month’s publication is the 15th. All news submitted by the 15th will be published on the 30th of each month in INK with editorial approval. Please send all news and notices to tdrowne@iiari.com.
IIARI INK is published by the Independent Insurance Agents of Rhode Island (IIARI). Statement of fact and opinion is made based on the responsibility of the authors alone and does not imply an opinion on the part of IIARI, it’s officers, directors or members. Reprint requests should be referred to IIARI. Copyright © 2018 Independent Insurance Agents of Rhode Island Independent Insurance Agents of Rhode Island • 2400 Post Road, Warwick, RI 02886 • Phone: 401-732-2400 • www.iiari.com