Wisconsin Independent Agent | November 2021 Magazine

wisconsin INDEPENDENT AGENT

INTRODUCING NOVEMBER 2021

2022 IIAW Board of Directors

... page 7

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CONTENTS

wisconsin INDEPENDENT AGENT

COVER STORY: Introducing the 2022 IIAW Board of Directors

We’d like to extend our new IIAW board members a warm welcome!

Learn about what they’ll be bringing to the IIAW and how they see the future of the independent agent

PAGE:

7

INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2021-2022 EXECUTIVE COMMITTEE President:

Marc Petersen | American Advantage - Petersen Group, New Berlin

President-Elect:

Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield

Secretary-Treasurer:

Michael Ansay | Ansay & Associates, Port Washington

INSURANCE BARTENDER..........................................................9-10 Turning Values Into Vision

RISKY BUSINESS..............................................................................14 Workflow Mapping: A Bird’s Eye View for the Agency

PERSONAL LINES............................................................................16-17 The PAP and College Students

AGENCY OPERATIONS................................................................18 How to Build a Culture of Adaptability

COMMERCIAL LINES.....................................................................21-23 Understanding the Basics of Property Protection in COPE Underwriting

AGENCY MANAGEMENT.............................................................26-27

Chairman of the Board:

Darrel Zaleski | Spectrum Insurance Group, Eau Claire

State National Director:

Steve Leitch | Leitch Insurance, River Falls

2021-2022 BOARD OF DIRECTORS Matt Frank | Robertson Ryan & Associates, Milwaukee Mike Harrison | R&R Insurance Services, Inc., Waukesha Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake Dan Lau | Robertson Ryan & Associates, Milwaukee Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa Brad Reitzner | M3 Insurance Solutions, Madison Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine Chad Tisonik | HNI Risk Services, LLC, New Berlin

5 Behaviors of Great Agency Owners

IIAW Staff

MEMBERS IN THE NEWS..............................................................30-31

Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com

COMMENTARY FROM COUNSEL...............................................32 PPP Loan Forgiveness - Timely Appeal of Denials

ASK JEFF.............................................................................................34 Workers’ Comp & Vaccine Mandates in the Workplace

FOOD FOR THOUGHT....................................................................35

ADVERTISERS INDEX AAA.....................................................................35 ACUITY...............................................................6 Arlington/Roe..................................................8 Badger Mutual Insurance...........................35 Berkshire Hathaway GUARD...................15 EMC......................................................................11 IMT........................................................................36 JM Wilson..........................................................17 Keystone Insurance.......................................33 Robertson Ryan & Associates..................27 SECURA..............................................................19 SFM.......................................................................24-25 UFG.......................................................................2 Vizance................................................................20 West Bend..........................................................13 Western National............................................29

Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com Kim Kramp | Association and Agency Accounting Manager 608.210.2976 • kim@iiaw.com Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com Ian Tisonik | Agency Solutions Coordinator 608.256.4429 • ian@iiaw.com Andrea Michelz | Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Education Coordinator 608.256.4429 • diana@iiaw.com Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2021 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.

wisconsin INDEPENDENT AGENT

| NOVEMBER 2021 | 3

COMMITMENT TO SUCCESS For 137 years, IMT Insurance has been helping make people whole again after a loss. That is the very essence of our being, and one we believe we do well. IMT continues to offer the strong line of personal and commercial insurance products for which it has always been known, along with exceptional service.

MUTUALLY BENEFITING CULTURE IMT takes pride in the culture within our walls. As a Midwest regional mutual company, the relationships we build with our independent insurance agents, insureds and our employees are key to business success and employee satisfaction.

Driven by our shared vision, IMT strives to be the company of choice, providing extraordinary, equitable, and worry-free experiences for a diverse group of agents, customers, and employees.

PARTNERS IN THE COMMUNITY IMT is built on deep roots and relationships in our communities. Our company believes we can have, and should have, a positive impact, in and around our writing states, through charitable giving and volunteer support.

We’re fortunate to be in a position where we can continue to grow.

Together, with 950+ Independent Insurance Agency locations, we offer insurance produces in six states; Iowa, Illinois, Minnesota, Nebraska, South Dakota and Wisconsin. We currently employ over 350 employees throughout our writing territory. We’ve got an eye on the past and a keen sense for the future, continuing to live up to our slogan, “Be Worry Free!”

7825 MILLS CIVIC PARKWAY, WEST DES MOINES, IA 520266 | 800-274-3531 | IMTINS.COM 4 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

WE DIDN’T KEY THE CAR. BUT WE’RE THE KEY TO FIXING IT. AUTO INSURANCE THAT’S DESIGNED TO BE WORRY FREE Wheels are the way around life. Protect vehicles with auto insurance from the Worry Free Company — IMT Insurance.

Learn how you can represent IMT Insurance at imtins.com/contact and help your policyholders Be Worry Free with IMT.

AUTO | HOME | BUSINESS

TOP FIVE REASONS AGENTS LOVE

WORKING WITH US! 1 2 Acuity has a 20year track record of beating the industry by more than double the growth and a full eight points on the combined ratio.

Unparalleled Financial Strength RATED #1 COMPANY FOR

World-Class Claims Service

3

Responsive and RelationshipBased Underwriting

4

Stable and Consistent Market

5

Impeccable Culture

SELL ACUITY!

6 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

WORK-LIFE

BALANCE DURING COVID-19

Consistently recognized as one of the best places to work in the nation.

WELCOME to the New IIAW Board Members: Brad Reitzner, M3 Insurance

Q. What do you hope to accomplish while on the IIAW Board of Directors?

A. I will be an advocate for the independent agent model and grow the industry with the next generation.

Q. What do you currently see as the biggest challenge and opportunity facing the IA channel currently or in the future?

A. Consolidation in the IA channel along with clients post-COVID looking for advisors and more

data-driven solutions is a challenge, but also one of the greatest opportunities.

Q. Any life advice or favorite quote?

A. Work hard, play hard.

Q. A book you recommend people read?

A. “Outliers: A Story of Success” by Malcolm Gladwell

Q. A non-insurance prediction for 2021-2022?

A. People will start traveling internationally again.

Matt Frank, Robertson Ryan & Associates Q. Tell us a little about yourself A. I’m coming up on my 10th year in the industry. Time flies! For the past five years, I have worked as an insurance advisor at Robertson Ryan & Associates. Prior to that, I was a commercial underwriter at Liberty Mutual. When I’m not thinking about insurance, I enjoy spending time with my wife, Susie.

Q. What do you hope to accomplish while on the IIAW Board of Directors?

A. I’m excited about the opportunity to continue to network with my peers along with growing as a professional. Being a part of the Big I has already been extremely beneficial towards my development. It really is a great place to meet peers and to learn what’s going on throughout the industry.

Q. What do you currently see as the biggest challenge and opportunity facing the IA channel currently or in the future?

A. In my opinion, the biggest opportunity for the IA channel involves the implementation of technology and digitalization. To be specific, how do we evolve as an industry so that we can stay connected with our clients especially future generations.

Q. Any life advice or favorite quote?

A. Never get too high or too low. This is especially important for those in sales.

Q. A book you recommend people read?

A. If you are interested in Milwaukee and its history, “The Making of Milwaukee” by John Gurda is great.

Q. A non-insurance prediction for 2021-2022?

A. Bucks will win another championship - back to back! wisconsin INDEPENDENT AGENT

| NOVEMBER 2021 | 7

We are licensed in all 50 states.

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We are family-owned and we are here, where you are.

As a managing general agency and wholesale insurance broker, we have access to over 200 markets, and we are licensed to do business in all 50 states. Though we have nationwide capabilities, our roots, focus, knowledge and proficiency lie in the Midwest.

We are not a large national chain or bank-owned organization, meaning you will receive excellent service with a personal touch.

Managing General Agents | Wholesale Insurance Brokers

Let us help you find the right solutions.

800.878.9891 ArlingtonRoe.com

Aviation | Bonds | Cannabis | Casualty | Commercial Agribusiness | Farm Human Services 8 | Healthcare NOVEMBER&2021 |

| Personal Lines | Professional Liability | Property | Transportation | Workers’ Compensation

wisconsin INDEPENDENT AGENT

INSURANCE BARTENDER

TURNING VALUES INTO VISION This month’s magazine highlights the incredible dedication and work of our Board of Directors. These esteemed men and women are very accomplished business leaders of whom I have the pleasure to work with and learn from each day. They inspire their employees and create cultures of success within their respective organizations. I’m always trying to gleam successful qualities, characteristics and initiatives of which I can replicate and instill into the IIAW. This month I thought it would be fitting to write about a topic I have long contemplated and discussed with many individuals from board members to a plethora of professionals from other industries. The topic: turning values into vision.

If you surveyed your employees, they would likely have a variety of responses when asked why they do what they do. Do they universally understand your company’s core values? How do they contribute to the overall vision that drives their success and that of their employer? Once values are determined, it is important to make sure all employees are part of the conversation, and they embrace those values; not just at work but out in your community as well.

Values can be easily stated, but difficult to live out.

That’s why it’s important to identify values that your employees try to live by day-in and day-out to incorporate them into the culture of your business.

As I converse with our Board of Directors, they all share similar principles, characteristics and ideals that contribute to their vision of how they accomplish success. Many of them hold strategic planning sessions or roundtables to discuss and set company values. Strategic planning sessions and roundtables aren’t just for large companies. Some of the smallest companies I know are very successful in hosting such events to keep the pulse on their office and to set the

direction for the future.

Far too often as a society we fail to live up to our expectations and stay true to our values. Let’s be honest, we’re human and can slip up. The question is are you accountable for your actions? Do you understand what causes you to stray from your principles?

According to author Lee Colan, in his article titled “How to Turn Your Values into Action”, “The most valuable type of knowledge is self-knowledge.

Knowing your tendencies, preferences, values, personal limits, natural gifts and weaknesses helps you make the right commitments and keep them.”

Aside from personal introspection, a good way to learn about yourself is to capture data on how others perceive you. For example, regularly ask your team what you can “Start, Stop and Keep” doing to be a better leader and support their success. You can have a “Start, Stop and Keep” discussion after finishing a project, wrapping up a meeting or during a scheduled review. Another important aspect of self-knowledge is to have a clearly thought out set of personal values, a few things that are vital to you and reflect your uniqueness.”

For example, my personal values are to respect, serve, motivate, advocate and empower others. For each of these values, I have specific behaviors that I strive to demonstrate each day. Your values should dictate your decisions and behavior, not your circumstances or fleeting feelings. Being a reliable and reputable person not only means doing what you say, it also means doing what is right.

These are just a few of the values that been ingrained into our organization by the fine men and women who serve and have served on our Board of Directors and by our staff who live by them as they seek to provide you with the best possible member experience.

Why Values Matter As I wrote the previous paragraphs, I found myself searching for an example to reference in which people make decisions that seem to go against their values.

Not on purpose, but on accident and without them ever knowing it or the damage it could cause.

This time of the year brings about a lot of change.

Whether its mergers and acquisitions, adding or losing personnel or perhaps new technological initiatives, changes tend to occur at the end or beginning of the year for a myriad of reasons. I like to think a new season motivates individuals to make a positive change. I bring this topic up because (like death and taxes), rumors are certain to rear their ugly head this time of year. Over my last eleven plus years at the Association, I have heard from many agency owners and principals who have asked me to let them know if I hear others talking about their agency, and what types of things they might be saying. As we all know, it’s easy to forget our values and spread (potentially) negative information despite adverse consequences.

Being in a sales-driven industry makes us good “talkers”. Wisconsin has many strong professionals who share education and information for the many families and businesses they insure. As professionals, we are held to high ethical standards and even have mandatory courses to complete every two years.

These courses remind us to focus on the values and principles of our business, yet some individuals can lose sight of this.

My message here is to remind yourself and your colleagues to discuss your personal and professional values and how you can use them to drive success.

Spending time on these discussions will translate into a more positive culture and will leave a positive impression on employees. Individuals should be encouraged to emulate positive behavior inside and outside of the office and look for truth before passing along information about their competitors in the industry. As we reflect on the past year and set the course for a bright and prosperous new year, there is no better time to engage in these ethical conversations.

I will leave you with this: To live a life of integrity, stay true to your values. We are limited not by our abilities but by our lack values that defines our vision, our missions, our passion.

Our industry is especially susceptible to this type of activity because it is a close-knit group of competitors and acquaintances.

Matt’s Mixology Apple Cider Old-Fashioned This drink puts a fall spin on a Wisconsin Classic.

Ingredients

Directions

• 1/4 cup apple cider 1. In a lowball glass, stir together the apple cider, whiskey, • 2 ounces quality bourbon or maple syrup and bitters until combined. Add in a large whiskey ice cube and top with an apple and orange slice and a • 1 teaspoon maple syrup • 3 drops of bitters cinnamon stick.

• 1 apple slice, for garnish • 1 orange slice, for garnish • Cinnamon stick for garnish (optional) Photo and Recipe Courtesy of Recipe Runner 10 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

> Matt Banaszynski, CEO, IIAW

From buttons to bread EMC has it covered.

With insurance products covering the needs of nearly 100 different types of light manufacturers, EMC agents can better retain and gain more clients.

Our comprehensive coverages are tailored to fit the size and scale of any operation — with certain coverages bundled automatically. It’s that ease of doing business that can really put more bread in your pocket.

emcins.com/lightmanufacturing

©Copyright Employers Mutual Casualty Company 2021. All rights reserved.

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• Consulting: Need custom, one-on-one support? Our team of experts can work directly with your agency.

See how Catalyit can help you thrive by visiting:

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21 Years and Counting Unlike many other carriers, West Bend believes in the value of long-term relationships. That’s why many of our personal lines underwriters, like Amy, have worked with their agents for so long. Amy trusts her agents as resources for many important things, including “life stuff” and they trust her, too. And that makes the relationships that much stronger.

RISKY BUSINESS

WORKFLOW MAPPING: A BIRD’S-EYE VIEW FOR THE AGENCY How an agency operates, should never feel like a guessing game for anyone. Too often we see owners assuming workflows exist, staff finding workarounds for cumbersome tasks or inconsistent methods of completing operational processes. Whatever the obstacle, there is a fun and helpful navigation tool to create smooth and efficient workflows.

Workflow Mapping is an exercise that provides a visual representation that can be used to drive consistency, identify areas to add technology, pinpoint inefficiencies and even improve customer service. By providing a top-down view of the agency, decision making is easier than ever due to the clarity provided an ease of creating a targeted approach to operational change.

The exercise of workflow mapping can be as high level or in-depth as you choose. It can be done internally or with an outside consultant. There are a few important points to be mindful of when it comes to successfully mapping your agency workflows: 1. This is NOT a process to create a procedure manual

2. The workflow must have a defined scope (rabbit holes are everywhere!)

3. The end goal should be defined prior to starting the exercise 4. Everyone must be given an opportunity to provide feedback 5. Have fun!

Workflow mapping may seem challenging or timeconsuming, but it is a great way to build collaboration, invoke positive change and redefine the work of the agency. An agency’s operations have likely been challenged and will continue to be. For this reason, it is essential to check and adjust and make sure everyone involved in the operations has a voice in the adjustments.

If you would like more information on Workflow Mapping, please feel free to reach out with questions, mallory@iiaw.com!

> Mallory Cornell, Vice President, IIAW 14 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

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APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY/ Not all Berkshire Hathaway GUARD Insurance Companies provide the products described herein nor are they available in all states. Visit www.guard.com/states/ to see our current product suite and operating area.

wisconsin INDEPENDENT AGENT|

NOVEMBER 2021 | 15

PERSONAL LINES

THE PAP AND COLLEGE STUDENTS Your 20-year-old daughter is away at college. She does not have a car on campus, but her roommate does and she drives the auto occasionally. Would your unendorsed personal auto policy respond if she has an accident driving the car? If not, is there anything you can do about it? You might be surprised...

Courts have generally held that students away at school are still considered to be “family members” under the PP 00 01 and, thus, are covered while operating autos at school. However, there is an important exclusion in the PAP that says [emphasis added]: B. We do not provide Liability Coverage for the ownership, maintenance or use of: 3. Any vehicle, other than “your covered auto”, which is: a. Owned by any “family member”; or b. Furnished or available for the regular use of any “family member”.

However, this Exclusion (B.3.) does not apply to you while you are maintaining or “occupying” any vehicle which is: a. Owned by a “family member”; or b. Furnished or available for the regular use of a “family member”.

As you can see, IF the vehicle is “furnished or available” for the “regular use” of a “family member,” there is no coverage under the parents’ policy while the student drives the car. Without debating the issues of “furnished or available” or “regular use,” let’s assume that the student does have regular, unrestricted access to her roommate’s car. In that case, she is at the mercy of the insurance on the vehicle, if any, since her parents’ policy will not provide any coverage. Is there 16 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

anything her parents can do do extend coverage to her under their policy while driving her roommate’s car? Well, speaking of the word “extend”...

ISO has an endorsement, the PP 03 06-Extended Non-Owned Coverage-Vehicles Furnished or Available For Regular Use that may provide coverage. If you’ll open this endorsement, you’ll see that it buys back several exclusions, including B.3. above. However, note the following wording from the endorsement [emphasis added]: I. Extended Non-owned Coverage The Extended Non-owned Coverage provided by this endorsement does not afford coverage under Part A and Part B of the Policy for any accident involving: A. A vehicle owned by an individual named in the Schedule or in the Declarations; B. A vehicle owned by a “family member” or C. A temporary substitute vehicle for such owned vehicle described in A. or B. above.

So, even though this endorsement provides coverage to family members for vehicles furnished or available for their regular use, it does not provide coverage IF the vehicle is owned “by a member of the same household.” Exclusion B.3. in the PAP applies to vehicles owned by family members but not scheduled on the parents’ policy and also to vehicles furnished or available for the regular use of family members (e.g., a company car). What Item I. in the endorsement means is that the coverage provided by the endorsement only buys back the “furnished or available” part

of Exclusion B.3. and coverage still does not apply to vehicles owned by a member of the same household. How does this apply to the college roommate situation?

On at least one occasion (and probably more), a claim involving a college student’s roommate’s car was denied under the PP 03 06. According to the insurer, the roommate was a “member of the same household.” But, is this true? Do two college student sharing a dorm room constitute a “household?” In deciding the coverage issue, we must examine what is meant by a “household.”

According to Black’s Law Dictionary [emphasis added]: Household, n. A family living together. Those who dwell under the same roof and compose a family. Term is generally synonymous with “family” for insurance purposes, and includes those who dwell together as a family under the same roof.

Generally, the term as used in automobile policies is synonymous with “home” and “family.”

The Black’s Law discussion of “family” indicates that it is comprised of blood relatives or a close-knit

social unit with a high degree or permanency, living under the control of one head of the household.

I don’t think two people who possibly had never met before, spending a few months together as roommates, but otherwise being independent of each other, constitutes a family or household...i.e., just because two people share a room doesn’t make them a “household.”

What if it’s not her roommate that makes the auto regularly available, but her best friend across the hallway? Clearly, in this case, coverage applies since they aren’t roommates...or does the entire dormitory constitute a “household?” What if we’re talking about a sorority or fraternity where there is (at least theoretically) more of a “family” than a dormitory setting?

Clearly, there are no easy answers. So, the best thing to do is to discuss the situation with the company underwriter in advance. What do you think?

>B ill Wilson

Founder & CEO of Insurance Commentary.com

AGENCY OPERATIONS

HOW TO BUILD A CULTURE OF ADAPTABILITY Leaders often use the phrase, “This [insert project name] isn’t a sprint. It’s a marathon.” When applied to business strategy, the phrase means that change takes time. Be patient. Don’t rush. Prepare. Train. At the finish line, you’ll break through the tape victorious. While the phrase is intended to remind everyone that big changes don’t happen overnight, there’s a flaw in its wisdom for today’s leaders and employees – because it implies that there is a finish line.

These days, it might be better to take a note from Nike’s 1977 print ad campaign that said, “There is No Finish Line.” Think about that for a minute. Do you approach strategic imperatives as if there’s a finish line? Or do you acknowledge that in an age of continuous disruption, there can be no finish line? Put another way, are you planning your future as if there’s going to be a return to status quo, or are you building a culture of adaptability?

When leaders plan as if there’s a finish line, they tend to focus on tactics and rigid rules that will get everyone to a final destination. The problem is, by the time they reach the final destination, everything has shifted again, and the original solution doesn’t address the current problem.

So, why do leaders often default to this type of thinking?

For one thing, there’s pressure for leaders to have “the right answer” or the “final solution”. There’s comfort in driving toward a finish line. It’s the model we know.

Surely, we all want to understand where we’re headed and feel a sense of accomplishment when we reach our destination. This isn’t to say that tactics and goals aren’t important. They are. But they are point-in-time solutions to situations that are temporary.

In a recent McKinsey & Co. study, researchers refer to this type of short-term thinking as “the finishline effect”. When leaders fail to build a culture of adaptability, it can increase attrition and dissatisfaction.

Employees want to work for companies that can stay 18 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

ahead of the curve rather than be drowned by the next rising tide.

Many leaders today are grappling with how to address the changing work environment. A finish line approach is to launch a policy that defines specific days that employee must be in the physical office. An adaptable approach means meeting your workforce where they are today and leaving room for the policy to quickly adjust if you need to bring employees into the office daily or if you need to enable them to all work remotely again. You could even decentralize decision making and let teams decide how to best to accomplish their jobs as projects, people, and tasks change over time.

Making adaptability part of your overall strategic mindset requires change and practice. If you want to build an adaptive culture but you (or your team) are resistant to change, it won’t work.

What does an adaptable workplace look like?

1. They accept that uncertainty is here to stay.

2. They hire diverse team members.

3. They hire leaders who are adaptable.

4. They present several possible paths to a solution.

5. They are open to experimentation, interpretation, and failure.

6. They are not rule bound. There’s a navigational north star, but it doesn’t define the paths you take to reach and surpass it.

7. They think beyond near-term tactics to longer-term goals.

8. They encourage constant learning.

Stop thinking about the sprint. Stop thinking about the marathon and finish line. Build a culture of adaptability.

To quote another famous Nike ad campaign, “Just Do It.”

Commercial | Personal | Farm-Ag | Specialty

Josh P. Specialty Lines Underwriter

Subrina R. Commercial Lines Underwriter

Lisa P. Wisconsin Sales Manager

Honest relationships SECURA’s team of insurance experts is making insurance genuine.

They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.

Ryan F. Farm Lines

Underwriter

Lori M. Personal Lines Underwriter

Hear from our experts.

Want to learn more about what SECURA has to offer? Scan the QR code or visit secura.net/WI-agents for more information about the SECURA team.

Interested in building a relationship?

Contact us at secura.net/WI-agents. wisconsin INDEPENDENT AGENT|

NOVEMBER 2021 | 19

BE THE NEXT

Find out why agency owners choose us!

• • • • • • • •

Broad Leadership Team that is 100% focused on the insurance business Flexible deal structures including the ability to retain some ownership Strong focus on culture, associate engagement, and client satisfaction Proven ability to drive double-digit organic growth Recruiting & mentoring program to develop those new to the industry Shareholder program for top performers Ability to maintain leadership with regional and practice group support Committed to serving our communities

Call us for a confidential conversation Tom Schaetz 419.450.0317

COMMERCIAL LINES

UNDERSTANDING THE BASICS OF PROPERTY PROTECTION IN COPE UNDERWRITING For almost 400 years commercial property underwriters have used the same general information when evaluating a property risk: • Construction; • Occupancy; • Protection; and • Exposures.

Collectively, these are known as the “COPE” data.

Although the VU has written and taught sessions on all four parts of COPE, this article provides a general overview if just one part – Protection.

Local fire departments, sprinkler systems, fire extinguishers, alarm systems, and fire doors/fire walls are the five main property protection features potentially available to property owners. Each of the five features is classified as either: • Public or private; and • Active or passive.

Public Protection Fire departments are the only protection feature considered as “public” protection. Fire departments are funded by local governments and protect somewhat large areas, responding to fires and other public emergencies.

Each fire department is inspected and assigned a grade – its public protection class (PPC). Most fire departments are inspected and graded by Insurance Services Office (ISO), but some are inspected and graded by the state Departments of Insurance. Upon inspection, each department is assigned a number grade ranging between 1 and 10. The lower the number, the more effective ISO (or other jurisdictional authority) considers the department.

Public protection grades are based on factors such as fire department response times, water supply, personnel training, available equipment, communications, and mix of paid versus volunteer personnel. Countrywide, the most common PPC grade is 5. Not surprisingly, the least common, and most coveted, class is 1. (Note: Public Protection Class 10 is assigned to locations more than five miles from the closest responding fire department.)

Occasionally fire departments are assigned two PPCs. These are referred to as split classification departments. The ultimately assigned classification is a function of the closest fire hydrant or other creditable water supply. If the closest hydrant or other creditable water source is within 1,000 feet, the lower (better) PPC is used; if over 1,000 feet, the higher class is applied.

Historically, split classes were listed as 6/9 or 5/9 (examples only). However, in 2013, ISO changed how split classes are assigned. Now an “X” or “Y” replaces the historical “9” or “8B” assignments. For example, an historical 6/9 split classification is now shown as 6/6X; an historical 5/8B is now a 5/5Y. Beyond these split class changes, ISO also created a new PPC 10 option – 10W. A “10W” is assigned to properties located more than five miles but less than seven miles from the closest responding fire department AND less than 1,000 feet from a creditable water source. According to ISO, properties meeting these parameters are a lower fire risk than is indicated by the traditional PPC 10. If these conditions aren’t met, the property is assigned the traditional 10.

North Carolina is the only state that has not adopted either classification change. wisconsin INDEPENDENT AGENT|

NOVEMBER 2021 | 21

Private Protection Alarm systems, sprinkler systems, fire extinguishers, and fire doors/fire walls are limited to one location or one property, thus each is considered private protection. No party other than the building owner benefits from these protection features.

However, simply having any or all of these protection features is not enough. Does the protective feature adequately protect the location or provide any benefit?

Alarm Systems. Fire, burglar, carbon monoxide, medical emergency, and other alarm systems are readily available to protect property and persons.

Whether an alarm system is adequate is a function of several factors: • Who receives the alarm? Does it sound locally or is it monitored by a central station? Is the central station listed by Underwriters Laboratory (UL)?

• What type of external communication is used? Is a tape dialer still in use or is it digital?

• What protection exists if the power is off?

• Are there any unprotected areas?

• Are there any special features?

• Is the system installed properly?

Sprinkler Systems. Having a sprinkler system is beneficial, but simply “having” a sprinkler system isn’t always enough. Can the system meet the demands of the current operation?

Over time, buildings may be repurposed. What was originally built and used as an office with minor assembly may now be a cabinet shop. Unless the sprinkler system was updated to account for this increased fire load, it may not be effective; it certainly won’t be as effective as a system designed for a woodworking operation.

Sprinkler systems must be inspected thoroughly to assure the system can do what it was designed to do – controlling and, maybe, extinguishing a fire. Proper evaluation of a sprinkler system requires review of: • The type of system (wet, dry, deluge, pre-action, foam, chemical, etc.); • The system’s condition (in good working order or with deficiencies); • The water supply (adequate to meet the needs of the occupancy); 22 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

• The system’s ability to meet the current fire load; • Any non-sprinklered areas: • Clearance below the heads (any materials too close to the sprinkler heads retarding its flow); and • Any high-rack storage (are there in-rack sprinklers).

Fire Extinguishers: Like sprinkler systems, fire extinguishers are great to have; and like sprinklers, just having a fire extinguisher is not enough. To gain any benefit from a fire extinguisher requires: • Using the correct type. Different types of fire extinguishers are needed for different exposures.

There are five primary classes of fire extinguishers based on the types of fire on which they are intended to be used:

• Class A: Used to extinguish anything

producing ash (thus an “A” classification).

This is for materials such as wood, paper,

furniture, etc.);

• Class B: Used to extinguish anything that

“boils” (thus “B”). Class B extinguishers are

used to fight flammable and combustible

liquid fires;

• Class C: Used to extinguish anything that has

a “charge” (thus “C”). Class C extinguishers

are used to battle electrical fires; (Note: A, B, and C are often combined into one extinguisher.)

• Class D: Used to extinguish combustible metal fires (no good way to get to “D”).

Metals such as magnesium, titanium, sodium, and potassium burn when not in solid form (such as a pile of shavings or other loose form). No other class of extinguisher can be used on these fires. Class A, B, and C extinguishers can spread these fires or react negatively; and • Class K: Used to extinguish kitchen fires (thus “K”). Class K extinguishers can be handheld or part of what is often referred to as “Ansul systems.” Class K extinguishers and systems are used to extinguish grease-laden fires.

• Having the correct size. An undersized extinguisher puts the user in danger more than it helps extinguish a fire.

• Training employees on how to properly use the fire extinguishers.

• Placing fire extinguishers in the natural path of exit.

Users and potential users should be able to access the extinguishers as they are leaving the area; they should not have to go into the room (fire) to find an extinguisher.

• Properly locating fire extinguishers. Extinguishers should be hung at eyelevel with no more than 75 feet of travel distance from any point.

Fire Walls and Fire Doors: The size of a building has a direct effect on the difference between the structure’s Maximum Possible Loss (MPL) and Probable Maximum Loss (PML). One method to lower the PML is to divide the building into smaller sections (compartmentalization) by constructing fire walls and using fire doors.

Compartmentalizing a building using fire walls and fire doors reduces the possibility – or probability – of widespread fire damage, ultimately lowering the PML. Fire walls and fire doors are effective only when minimum standards are met. Lacking in any of these standards makes such walls and doors nothing more than fire stops or merely an obstacle that slows the fire. For a wall to qualify as a “fire wall,” it must: • Be one continuous masonry wall; • Be a minimum of 6 or 8 inches thick (the difference in thickness is a function of the materials used); • Come into direct contact with fire resistive masonry or noncombustible walls and roof; and fully pierce “slow-burning” or combustible walls and roof; • Have any openings protected by self-closing, 3-hour rated fire doors (aka Class “A” doors). If such a door is blocked open or unable to fully close, the wall is no longer considered a fire wall; and • Protect any openings through which HVAC ducts pass with a 1 ½ hour rated damper.

Sprinkler systems and alarm systems are the two active (self-actuating) protection features.

Even when no one is around, a sprinkler system “reacts” (provided it is in good working condition).

Likewise, an alarm system sounds or sends a notice when a monitored situation occurs. Ultimately humans must do something, but they are not required to activate either of these systems.

Passive protection features are the local fire departments, fire extinguishers, and fire walls/fire doors. They are just “there.”

• Fire departments stand ready to respond to emergencies, but since the fire department is away from the building and human action is required ( the firefighters have to get suited up, get on the trucks, and drive to the scene), a fire department is considered passive protection.

• Fire extinguishers are fully passive. An extinguisher is of no benefit until a human takes it, pulls the safety pin, and applies the extinguishing chemicals onto the fire.

• Fire walls and fire doors are truly just there – the ultimate in passive protection. Fire walls and fire doors don’t act in any way; they exist solely to get in the way of the fire.

Property Protection

Active vs. Passive Protection

Effective property protection requires use of the appropriate protection options. Which protection features are necessary is a function of the building and the operations. Although every building is protected by a responding fire department, not every building requires a sprinkler system. Likewise, every building should be supplied with the proper fire extinguishers, but a particular building may not require compartmentalization by use of a fire wall/fire door combination.

Does the protection feature act or react in the absence of humans or is human intervention or action required? This is the difference between “Active” and “Passive” protection.

Regardless the protection features in use, every worker on the premises must know and understand the need for and the use of the protection features present.

Active protection features don’t require human presence to do what they are designed to do.

However, humans must eventually react to an active protection feature to successfully mitigate the situation.

> Chris Boggs, Executive Director Risk Management and Education, Big I Virtual University wisconsin INDEPENDENT AGENT|

NOVEMBER 2021 | 23

It’s time to

get out of the

‘Pool’ Since 2020, SFM has written over 400 WI pool policies for $2.4 million putting an extra $100,000+ of commission in agents’ pockets

class code list n Premium range from $1,000-$25,000 n Dividend up to 10% n Expanded

n 8%

Commission n Manage applications and policies online using SFM Agency Manager (SAM)

(subject to eligibility)

With 52 eligible class codes, now is the time to prospect from the pool or move your current pool accounts to SFM!

20

new class codes added

sfmic.com

We’re a market for select

Wisconsin worker’s compensation pool accounts

We’re interested in accounts from $1,000 to $25,000 in premium in the following class codes: Class Code 0006 0008 0042

NEW!

2883 3643

NEW!

3724

NEW!

4511 4693 5022

NEW!

NEW!

5102 5183 5190 NEW!

5221 5403 5445 5474 5537

NEW!

6217 7219 7231

NEW!

7370 7600

NEW! NEW! NEW!

7605 8006 8010 8018 8215

NEW!

8232

Class Description Farm products — raising, harvesting and preparing for the market including driving Farm gardening — market or truck and drivers Landscape gardening and drivers (no above ground tree trimming) Furniture mfg and cabinet shop Electric power or transmission equipment mfg Machinery or equipment erection and repair NOC and drivers (no overhead door installation or work over 30 feet) Analytical laboratories Pharmaceutical or surgical goods mfg NOC Masonry NOC Door and window installation — all types — residential and commercial Plumbing NOC and drivers Electrical wiring — within buildings and drivers Concrete or cement work - floors, driveways, yards or sidewalks and drivers Carpentry NOC (no roofing) Wallboard, sheetrock, drywall, plasterboard or cement board installation Painting or paperhanging NOC and shop operations, drivers (no lead paint abatement) Heating ventilation air-conditioning and refrigeration systems installation Excavation and drivers (no demo/blasting/mining) Trucking — NOC (no log, munitions, or liquid propane haulers) Mail, parcel or package delivery and courier or messenger service companies Taxicab and bus companies (No party buses. No 24/7 cabs.)

Telecommunications companies — all other employees and drivers (no cell tower work) Burglar alarm installation or repair and drivers Grocery stores retail Store: Hardware (no appliance delivery) Store: wholesale-NOC (No staffing agencies) Feed, fertilizer, hay or grain dealer and local managers, drivers (no manufacturing) Lumber Yards - New materials only - All employees (Excludes redimix and tree trimming.

No fuel or log transportation.)

Class Code 8279 8381 8742 NEW!

8824 8829 8835 8842 8868 8869 9012 9014 9015 9016

NEW! NEW! NEW!

9033 9052 9061 9063

NEW!

9082 9083

NEW!

9084 9180

NEW!

9182

NEW!

9403 9586

Class Description Stable or breeding farm and drivers (no race competitions, rodeos or sportsman events) Gasoline station — retail, self-service Salespersons, collectors — outside (no automobile repossession services) Retirement living centers health care employees Nursing or convalescent homes - all employees Home, public and traveling health care — all employees Group homes — all employees, salespersons, and drivers College professional employees and clerical (smaller institutions only, no sheltered workshops) Child day care center professional employees, clerical and salespersons Building or property management, property managers and leasing agents and clerical Buildings and operations by contractors and drivers Building or property management — all other employees Amusement park or exhibition operations and drivers Housing authorities Hotels (no staffing or ski resorts) Club NOC Exercise or health institution — all employees and clerical (community centers acceptable, excluding YMCA clubs) Restaurant NOC Restaurant: Fast food (Limited delivery) Bar, discotheque, lounge, night club or tavern (No strip/gentlemen’s clubs) Amusement device operation NOC — not traveling and drivers (no fireworks, racing, skiing, or zip line operations) Athletic teams or park - Operations and drivers (No athletes, just the club/organization/ concession staff) Garbage, ashes or refuse collection and drivers Barber shops or beauty parlors

Contact your SFM underwriter to learn more.

AGENCY MANAGEMENT

5 BEHAVIORS OF GREAT AGENCY OWNERS There is an incredible opportunity in the insurance industry for someone who wishes to own their own business. With over half of the agency owners facing retirement in the next 5-10 years, as well as a strong desire by many agency owners to remain independent and offer the same opportunity to the next generation that their agency provided to them. There is no question the opportunity exists – for the right person.

What will it take to be a strong and successful agency owner? I asked this question to many successful agency owners and here are the most common themes in their answers.

Transition Your Thinking When you are an owner of a business your job has a completely different focus. You can no longer be singularly focused on ways you can be successful, instead it is transformed to a much broader perspective. You are now responsible for building the partnerships, structure, team, technology and environment that puts you and your team in the best position to serve your clients. This transition takes time, requires different perspectives and the ability to listen and stay humble. “Surround yourself with people that can challenge the way you think.” – Matt Simon, Coverlink Insurance. Above all else, take great care of the people – the humans that are the heart and soul of your organization. There is nothing that matters more than them. You are not going to have all the answers all the time, so stay open, humble and listen.

Have a Clear Purpose Leading with your purpose as your guide is key to your success. This will keep both you and your team focused on what matters most: Trust & Relationships.

“Insurance is not a transaction, it’s a promise and a trusted relationship.”, Perk Reichley, Reichley Insurance.

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wisconsin INDEPENDENT AGENT

While you’re honing your sales and leadership skills, stay committed to becoming a person that CAN be trusted and CAN forge healthy relationships. This is hard work and requires showing up even when it is inconvenient, making and keeping promises of personal service and dedication, listening to other needs more than talking about your own, hanging in there for the long haul with others, and always seeing the potential around you when you are struggling yourself. It requires strong character and a personal inner strength to do these things, making this role not a fit for everyone. Know yourself and only step into this role if you are confident that these are the types of things that energize you and bring you a great sense of accomplishment. “Serve others and you will succeed.” – Adam Augspurger, Steadfast Insurance.

When you lead with your purpose as the guide, the sales, premium and number goals will fall into place.

Know Your Numbers Be an expert in your business by having a great handle on your numbers. While your numbers should not be the only measure of your success, they are an important part of running the agency. You should know exactly what’s is driving your business, what your areas of weakness are and be the one focused on minimizing those obstacles and challenges. As the leader, you will set the example what being a good steward of the agency’s resources means. “Build a war chest of savings that you can deploy when the time is right.” Seth Zaremba, Zinc Insurance. You never know what challenges you will face, so being thoughtful in how you prepare will put you in the best position to face the unexpected. How you deploy both time and money is important to your success.

Take that role seriously and always put the agency’s interests first.

The most successful agencies have leaders that run their businesses like they are selling them tomorrow.

Don’t Go It Alone Leading an organization can lonely, but it doesn’t need to be. This industry is filled with incredibly giving people that want to share their experiences and knowledge with others. There is a servant leadership quality and camaraderie that exists in our industry that is both impressive and unique. Where else will you find your competitors willing to spend both their time and energy helping each other and the industry as a whole? Get involved, give back and get connected. The most consistent piece of advice from agency owners was to put yourself in a position to learn from others. Surrounding yourself with other agents is one of the best ways to learn and grow.

Don’t ever underestimate tapping into the knowledge of those that led before you – their insights are invaluable. Be a student of the industry and be willing to share your knowledge. I guarantee that if you make the time to volunteering and becoming involved with other agents, you will receive more than you can ever possibly give.

Have a Plan As the leader of an agency, it is your responsibility to ensure that the agency’s future is secure. The best way to do this is to have a plan.

Every business that has employees, recurring income, and complex processes should have a documented succession plan. Independent agencies meet all three of these requirements. Planning for the ongoing success of your agency may feel overwhelming, but it is an important part of your role as the leader of that organization. The agency’s future should not be left up to chance, so take the time to document your plan and revisit the plan on an annual basis to ensure that it is kept up to date and your agency’s future is well protected.

For more information visit www.agency-focus.com > Carey Wallace, Business Consultant, AgencyFocus

IIAW CONTINUING EDUCATION

2021 ONLINE EDUCATION & CE CLASSES

NOVEMBER & DECEMBER SCHEDULE DATE

TIME

COURSE

NOVEMBER 11/17

10AM-12PM

11/18

9AM-11AM

Contracts Agents Should Read

11/19

9AM-12PM

E&O - Commercial Property Coverage Gaps & How to Fill Them

11/23

1PM-4PM

Understanding the Largest Government Benefits: Social Security

11/29

12PM-3PM

DECEMBER

Business Auto Claims That Cause Problems

Agency Management Based E&O and Ethics

12/1

12 PM-2PM

Personal Lines Issues That Keep You Up At Night

12/1

1PM-2PM

E&O Exposures: Websites & Social Media

12/2

8AM-9AM

Claims - Made Policies - The Most Dangerous Insurance Policies

12/2

9AM-12PM

E&O - Commercial Property Coverage Gaps & How to Fill Them

12/2

12PM-2PM

Those Kids & Their Cars

12/3

9AM-12PM

E&O - Roadmap to Homeowners Insurance

12/3

2PM-5PM

12/6

9AM-11AM

Coverage Disputes Between Thompson & Boggs, You Be the Judge

12/6

11AM-1PM

Insight on Modern Day Cyber Exposures & Risk Mitigation

12/7

8AM-10AM

Builders Risk and Contractors Equipment

12/10

9AM-12PM

Commercial Lines Claims That Cause Problems

12/14

11AM-2PM

E&O Risk Management: Agency E&O Exposures and Defenses

12/14

2PM-5PM

12/15

10AM-12PM

12/16

9AM-11AM

E&O Risk Management: Agency E&O Exposures and Defenses

E&O Risk Management: Understanding Risk Mitigation and E&O Claims

E&O Risk Management: Agency E&O Exposures and Defenses Contracts Agents Should Read

SEE OUR FULL COURSE SCHEDULE AND REGISTER FOR THESE CLASSES AT IIAW.COM/EDUCATION

YOUR CLIENT LOOKS PRETTY CONFIDENT.

They must be protected by Western National Insurance.

Western National carefully crafts policies to fit your client’s unique insurance needs – so they can feel confident in their coverage.

www.wnins.com

News Members in the

PIE INSURANCE NAMED TO THE 2021 CB INSIGHTS FINTECH 250 LIST OF TOP FINTECH STARTUPS

Denver, CO (October 6, 2021) - Pie Insurance (“Pie”), a leading tech-enabled provider of workers’ compensation insurance to small businesses, today announced that CB Insights named Pie to its fourth annual Fintech 250, a prestigious list of emerging private companies working on groundbreaking financial technology. This year’s list was unveiled on stage at CB Insights’ Future of Fintech conference in New York City.

“This is the fourth class of the Fintech 250, and it’s also the most international, representing 26 countries.

These 250 fintech startups are attacking an incredibly diverse array of financial services opportunities across 19 sectors, including digital banking, insurance, payroll, retail investing, and more,” said CB Insights CEO Anand Sanwal. “After being named to the CB Insights Fintech 250 last year, the 2020 class saw 17 companies go public and 25 get acquired. They also went on to raise over $25B in additional financing and forged more than 380 new partnerships after being recognized. The Fintech 250 has a history of spotlighting the very best fintech companies, and this year is no different. We’re excited to see how these fintech startups disrupt and transform financial services in the years ahead.”

“We are honored to be named to this year’s Fintech 250 class by CB Insights,” said John Swigart, cofounder and CEO of Pie. “There has been incredible innovation across the entire insurance sector in 2021.

We value the recognition Pie has received for our growth and use of technology to support our mission of empowering small businesses to thrive by making commercial insurance affordable and as easy as pie.”

Through an evidence-based approach, the CB Insights Intelligence Unit selected the Fintech 250 from a pool of over 17,000 companies, including applicants and nominees. They were chosen based on several factors, including data submitted by the companies, company business models and momentum in the market, and Mosaic scores, CB Insights’ proprietary algorithm that measures the overall health and growth potential of private companies.

30 | NOVEMBER 2021 |

wisconsin INDEPENDENT AGENT

ABOUT CB INSIGHTS - CB Insights builds software that enables the world’s best companies to discover, understand, and make technology decisions with confidence. By marrying data, expert insights, and work management tools, clients manage their endto-end technology decision-making process on CB Insights. To learn more, please visit www.cbinsights. com.

ABOUT PIE - Pie is leveraging technology to transform how small businesses buy and experience commercial insurance, with the goal of making it affordable and as easy as pie. Pie’s intense focus on granular, sophisticated pricing and data-driven customer segmentation enables Pie to match price with risk accurately across a broad spectrum of small business types, which allows Pie to offer more affordable insurance to small business owners. Since 2017, Pie has received over $300M in funding and commitments for future funding, grown its gross written premium to over $100M, and partnered with over 1,000 agencies nationwide.

ACUITY DONATES $50,000 TO TEAM RUBICON

Sheboygan, WI (October 10, 2021) - Acuity announced that it has donated $50,000 to Team Rubicon. Team Rubicon’s mission is providing relief to those affected by disaster, no matter when or where it strikes.

“We are honored to support Team Rubicon and the important service it provides. Our missions align in rebuilding shattered lives,” said Ben Salzmann, Acuity President and CEO. As the fastest growing disaster response organization, Team Rubicon’s over 150,000 volunteers, comprised primarily of military veterans, have responded to nearly 1,000 disasters in the U.S. and around the world. By pairing the skills and experiences of military veterans with first responders, medical professionals, and technology solutions, Team Rubicon aims to provide the greatest service and impact possible.

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 29 states.

Rated A+ by A.M. Best and S&P, Acuity employs over 1,500 people.

BERKLEY RE PARTNERS WITH DAIS TO BUILD INNOVATIVE PLATFORM FOR UNIQUE AGENT EXPERIENCE

Stamford, CT (October 26, 2021) - Berkley Re Solutions and Berkley Program Specialists have combined their unique program design and distribution capabilities to bring a new insurance program for Workplace Violence to the marketplace.

Dais, a technology company dedicated to simplifying the process of creating new digital products for carriers and reinsurers, was chosen to build the capabilities for launch via a select group of innovative independent agents.

Workplace Violence is an unfortunate reality. Both large and small business are too often faced with these events and Berkley companies have long been trusted to help businesses in their greatest times of need. Bringing this combined insurance and services solution quickly to market continues that commitment to deliver solutions to ever-changing risks.

Berkley Re Solutions developed this new program with the guidance and input of multiple clients.

Currently available as a reinsured turn-key solution, it is now able to be distributed to select agents via Berkley Program Specialists.

Greg Douglas, president of both Berkley organizations, commented, “With Dais’ simple quote to issue platform, agents enjoy an excellent user experience and take advantage of rich API (application programming interface) functionality through the product lifecycle. The ease of use is excellent where binding a policy takes very few steps and billing and policy documents are just a few clicks away. Agents want this program for their insureds and because of Dais’ expert digital guidance, we were able to deliver.”

Jason Kolb, Dais CEO said, “Berkley Re Solutions’ and Berkley Program Specialists’ commitment to product innovation is clear and with specialty crisis management partners, they are bringing together a necessary ecosystem to solve this important product gap in the marketplace. We have built a repeatable process for product innovation and partners like Berkley are uniquely qualified to take advantage of our distinct capabilities.”

This program is offered in the following eight states with additional states planned for the future: AR, IL, IA, MN, MO, ND, SD, WI. The Workplace Violence program includes up to 10 different coverages including crisis management,

business income, mental health counseling, public relations expense, security services and more. With a broad coverage cause of loss, Berkley also includes an off-premises extension that follows insureds where they go while conducting their business. And while indemnification is important, the crisis management services are critical to the overall solution and are included automatically.

ABOUT BERKLEY RE SOLUTIONS - Our mission is to make our carrier partners more valuable to their agents and insureds by delivering casualty treaty and innovative reinsured turn-key solutions. We provide custom turn-key solutions – complete insured offerings allowing our insurance carrier partners to provide critical coverages quickly, efficiently, and with a flexible quota share approach.

ABOUT BERKLEY PROGRAM SPECIALISTS Berkley Program Specialists, a Berkley Company, is a leading insurance operation dedicated exclusively to program business. Berkley Program Specialists provides program administrators with underwriting authority backed by admitted and non-admitted A.M. Best A+ rated insurance paper, as well as program management expertise and, when required, reinsurance support. For more information, please visit www.berkley-ps.com.

ABOUT DAIS - Dais makes it easy to create, sell, and deliver insurance products. Carriers use Dais to quickly bring new and existing products to market through digital distribution channels. Agents use Dais to market, sell, and close business online through digital marketing, embedded insurance, and producer-enablement tools. For more information please visit https://dais.com Certain coverages and (re)insurance products and services may be provided by one or more insurance company subsidiaries of W. R. Berkley Corporation.

Not all such products and services are available in every jurisdiction, and the precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued. Certain coverages may be provided through surplus lines insurance company subsidiaries of W. R. Berkley Corporation through licensed surplus lines brokers. Surplus lines insurers do not generally participate in state guaranty funds and insureds are therefore not protected by such funds. Berkley Re Solutions and Berkley Program Specialists are member companies of W. R. Berkley Corporation, whose insurance company subsidiaries are rated A+ (Superior) by A.M. Best Company.

COMMENTARY FROM COUNSEL

PPP LOAN FORGIVENESS - TIMELY APPEAL OF DENIALS The Paycheck Protection Program, or PPP, was one of the federal government’s earliest Covid-19 pandemic programs. The PPP loan program is administered by the U.S. Small Business Administration (SBA). According to the SBA, just under 11.5 million PPP loans were made, totaling about $792 billion. For many small businesses, including independent insurance agencies and countless agency clients, PPP loans were a lifeline during uncertain and disruptive economic times.

One of the key aspects of the PPP loan program was that, under certain circumstances, the loans would be forgiven. The process for seeking loan forgiveness has been underway for many months at this point, and nearly 8 million borrowers have filed forgiveness applications, with nearly 97% of the loans forgiven and repaid by the SBA. That is good news for those borrowers, but leaves thousands either unforgiven, or pending. Some of the pending PPP loan forgiveness applications will be granted, of course, but there will be no shortage of denials as well.

It is important to understand that the SBA’s forgiveness decision is appealable, but borrowers must act quickly.

In mid-September, the final rule covering Borrower Appeals of Final SBA Loan Review Decisions took effect, and it provides the framework for aggrieved borrowers to appeal to the SBA Office of Hearings and Appeals (OHA).

Here are the key requirements to ensure an appeal is heard

by OHA. First, only the actual borrower on a loan, or its legal successor in interest, for which SBA has issued a final SBA loan review decision has standing to appeal the SBA loan review decision to OHA. This means that the lending bank cannot appeal on behalf of borrowers.

Second, SBA decisions are appealable only if SBA’s completed review of a PPP loan finds any of the following: • The borrower was ineligible for a PPP loan—this looks back at whether the loan should have been made in the first instance. A denial on this basis will mean that no portion of the loan is forgiven.

• The borrower was ineligible for the PPP loan amount received or used the PPP loan proceeds for unauthorized uses.

• The borrower is ineligible for PPP loan forgiveness in the amount determined by the lender (lenders processing forgiveness applications make recommendations for full or partial forgiveness amounts).

In this situation, the SBA final loan review decision will disagree with the lender, but remember—only the borrower can appeal, the lender cannot do so.

• The borrower is ineligible for PPP loan forgiveness in any amount when the lender has issued a full denial decision to SBA. Here too the SBA final loan review decision will differ from the lender’s recommendation, but in a way that is favorable to the borrower.

Finally, the appeal must be filed with OHA within thirty (30) calendar days after the borrower’s receipt of the final SBA loan review decision. This timing is critical, and because most forgiveness applications were handled through the same lender that made the loan, the borrower will most likely receive the final SBA loan review decision from the lender.

Within that framework, borrowers will need to consider their appeal options in light of a very deferential standard of review by OHA—the final SBA forgiveness decision will be altered only where the OHA administrative judge determines that the SBA’s decision was based on a clear error of fact or law. That said, with the volume of forgiveness applications being reviewed by the SBA, and the complexities of the PPP loan program in terms of eligibility and use of loan proceeds, borrowers should be prepared to quickly evaluate their appeal options with counsel and file their appeal by the 30-day deadline.

It is also important to note that the loan deferment period is extended during the pendency of the appeal, so borrowers will not enter repayment until their appeal is decided. The timeframe for OHA to decide an appeal of an SBA loan review decision is laid out in the final rule and could be as fast as 90 days, though there is ample discretion for the judge to extend certain deadlines.

Considering the anticipated volume of appeals, it is likely that 90 days will be the exception, rather than the norm.

If your agency, or a client, is facing a full or partial denial of forgiveness of a PPP loan, act quickly to evaluate a potential appeal and consult with competent counsel to assist.

>J osh Johanningmeier IIAW General Counsel

Putting data to work

for your agency.

Data alone is just that – data. But with the right format and strategy, it’s the ultimate business intelligence tool. Keystone’s data intelligence team, in partnership with AgencyKPI, can help you generate more revenue by aligning risks with the right markets to maximize your compensation potential and build niche market expertise.

That’s how independence works better together.

FOR MORE INFORMATION, CONTACT: JoAnn Hartung 570.473.4340 | jhartung@keystoneinsgrp.com keystoneinsgrp.com ©2020 Keystone Insurers Group ®. All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.

ASK JEFF

WORKERS’ COMP & VACCINE MANDATES IN THE WORKPLACE Not only during this pandemic but throughout other times in recent years when outbreaks of other viruses and diseases have occurred, the following question has been asked frequently: “If employers are mandating workers to get the vaccine, could they (the employer) also be responsible for any side effects and if so, could it become a workers’ compensation case/ claim? Would it be covered?”

Some larger health care providers and manufacturers have been accepting vaccine reactions as workrelated since before the mandate. I think it would be a major legal hurdle if they weren’t covered, and I’m surprised there isn’t some federal or state mandate that directs the claims to be accepted if there’s medical support – like Gov. Evers did for healthcare workers early on during the current pandemic.

Other than the traditional “ it depends” on the facts of the claim, please note some comments and directions. This is such a great question, and this has been asked so many times over the years, with many of the “ viruses “ society has been exposed to. While mandating the vaccine certainly links it as a possible workers’ comp claim, any side effects would have to be a direct cause of the vaccine, which is always difficult to prove or connect.

In talking with a few workers’ comp claim adjustors 1) If the employee is immuno-compromised or is prone to allergies, their reactions are worse and 2) the symptoms are VERY diverse. They have seen everything from body aches to varying severity of neurological problems with numbness in extremities, nausea, fatigue, etc. Most are not severe and resolve in a week or two, but some are quite disabling. We recently heard of one involving an employee who had an autoimmune disease that was dormant for a long time become active again causing personal injury to their body. The thing is that because this is so new, there is no body of evidence we can rely on to prove or disprove the reactions are from the vaccine. Whether the claim is accepted or not as compensable, the usage and application of IMEs remains crucial in determining compensability.

An employee who experiences a bad reaction to a COVID-19 vaccination may be eligible for workers’ compensation benefits if the employer directed or encouraged the employee to have the vaccination.

The Countermeasures Injury Compensation Program (CICP) is a federal program that may help pay the costs of medical care for people who have been seriously injured by certain medicines or vaccines, including the COVID-19 vaccine.

• A claim must be submitted to the CICP within one (1) year of receiving the vaccine.

• More information about the CICP is available at http://www.hrsa.gov/cicp/ or call 1-855-266-2427.

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>J eff Thiel

Director of Agency Success

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