Wisconsin Independent Agent | September 2020 Magazine

wisconsin INDEPENDENT AGENT

SEPTEMBER 2020

Supporting Your Local Community With Our Online Community

wisconsin INDEPENDENT AGENT CONTENTS 3, 4, 5..........Insurance Bartender IIAW’s Online Community: Supporting You and Your Local

Communities 11................Technology Owning the Customer Experience in a COVID World 12................Agency Operations Creating a Learning Culture in Your Agency 14................New to the Team Meet Andrea Michelz, Membership Engagement Coordinator 16,17...........Agency Operations Your Remote Hiring Plan 19................Virtual University - Ask an Expert Is There Any Coverage for Pets Under a Homeowners’ Policy?

How Many Claims Would be Considered for Riots Lasting Multiple

Nights?

20, 21..........Government Affairs Wisconsin Primary Elections Yields Few Surprises 22, 23..........Virtual University Food Delivery and the Business Auto Policy 26, 27..........Members in the News 29................Commentary from Counsel Unambiguous Policy Language is not Always the End of the

Coverage Inquiry 31................Food for Thought

ADVERTISERS & INFORMATION 14.................AAA 25.................ACUITY 5...................Ansay & Associates 7...................Arlington/Roe 27.................Badger Mutual 28.................Berkshire Hathaway GUARD 10.................DAIS 32.................IMT 31.................JM Wilson 24.................Keystone Insurers Group 13.................Penn National 17.................Robertson Ryan and Associates 8,9................SFM 30.................SECURA 15.................West Bend 18.................Western National 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. © 2020 For information on advertising, contact Kaylyn Zielinski, 608.210.2977 or kaylyn@iiaw.com.

2

| SEPTEMBER 2020 |

wisconsin INDEPENDENT AGENT

Independent Insurance Agents of Wisconsin 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2020-2021 EXECUTIVE COMMITTEE President: Darrel Zaleski Spectrum Insurance Group, Eau Claire President-Elect: Marc Petersen A merican Advantage - Petersen Group, New Berlin

Secretary-Treasurer: Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Chairman of the Board: Chris Costakis Midwest Insurance Group , Delafield State National Director: Steve Leitch Leitch Insurance, River Falls

2020-2021 BOARD OF DIRECTORS

Mike Ansay Ansay & Associates, Port Washington Nick Arnoldy Marshfield Insurance Agency, Inc., Marshfield Mike Harrison R&R Insurance Services, Inc., Waukesha Aaron Marsh Marsh Insurance Services, Inc., Rice Lake Dan Lau Robertson Ryan & Associates, Milwaukee Joanne Lukas Szymaszek Johnson Insurance Services, LLC, Racine Chad Tisonik HNI Risk Services, LLC, New Berlin Andrea Nelson Unisource Insurance Associates, LLC, Wauwatosa

Jonathon Zwettler Baer Insurance Services, Middleton

IIAW STAFF

Matt Banaszynski Chief Executive Officer 608.256.4429 | matt@iiaw.com 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 Kaylyn Zielinski | Marketing and Communications Coordinator 608.210.2977 | kaylyn@iiaw.com Evan Leitch Technology and Risk Advisor 608.210.2971 | evan@iiaw.com Andrea Michelz Member Engagement Coordinator 608.210.2972 | andrea@iiaw.com Diana Banaszynski Education Coordinator 608.256.4429 | diana@iiaw.com

On The Cover...

In last month’s issue of Wisconsin Independent Agent, we announced our new platform, the Online Community. IIAW’s Online Community will help our members, vendors, sponsors and IIAW staff connect. This new member benefit will launch on November 1st, and we have a big incentive for members to participate: Top contributors of our Online Community will receive gifts and prizes that will give back to their local communities, simply for participating.

The Independent Insurance Agents of Wisconsin Presents:

Online Community •LAUNCHING NOVEMBER 1ST •

Step One: Sign Up Logging into our website will automatically sign you up for our Online Community. Contact info@iiaw.com if you need any assistance in accessing your login information.

Step Two: Join Groups Find and join the Groups (formerly known as “Committees”) that align with your interests. ne w!

Agency Operations

Agency Technology

Education & Events

Emerging Leaders

Employee Benefits

ne w!

Government & Regulatory Affairs

Industry Relations

Internet of Insurance

ne w!

Marketing & Communications

Legal

Step Three:

Connect, Collaborate & Engage

IIAW’s Online Community is our industry-curated version of Facebook and LinkedIn, a new members-only benefit. You can connect with others, read blogs, follow current industry happenings and much, much more within your Groups and on your feed (MyFeed).

Step Four: Earn Gifts/Awards Through your active participation you can earn gifts that will support your local communities. Your participation will also be a factor during consideration for our annual IIAW Association Awards.

Handpicked IIAW swag & prizes

Gift card/certificate to a local eatery near you

Donation to a local charity near you

Your participation will play a part in the selection of the annual association awards wisconsin INDEPENDENT AGENT

| SEPTEMBER 2020 | 3

INSURANCE BARTENDER

IIAW’S ONLINE COMMUNITY: SUPPORTING YOU AND YOUR LOCAL COMMUNITIES In last month’s issue of Wisconsin Independent Agent, we announced our new platform, the Online Community.

IIAW’s Online Community will help our members, vendors, sponsors and IIAW staff connect. This new member benefit will launch on November 1st, and we have a big incentive for members to participate: Top contributors of our Online Community will receive gifts and prizes that will give back to their local communities, simply for participating.

Participating in our Online Community is easy. All you need to do is sign up, join Groups, connect collaborate and engage to earn gifts that will give back to your local communities.

Sign Up: On November 1st our Online Community will go live for all members. Once live, IIAW members can log into their profile on our website, iiaw.com, to access the Online Community. If you or someone within your company would like to join the Online Community but don’t currently have an account through our website, please contact us at info@iiaw.com and we will send you a link to be added as a user under your company’s membership. You can also email us at info@iiaw.com if you have any questions about logging into an existing account.

Apple Cider Mules

Join Groups: We are moving our current committees online, and they will now be called Groups. Amidst COVID-19, in-person gatherings are hard to accommodate. Instead, we want to continue offering a place for those with like interests to gather together but in a more attainable way - online.

Recently, we opened Group sign up to those who would like to be Thought Leaders (previously known as committee members). Thought Leaders will lead discussions within their Groups and answer any questions that may arise. Prior to the launch of our Online Community, we will be opening the sign up for those that would like to be general contributors of Groups. There are no obligations to join a Group as a contributor, but contributors can still soak up the information being shared within the Groups they choose to join. When members log into their account on our website November 1st, they will already be a member of the Groups they selected in previous sign-ups.

As we move our current Groups (formerly known as committees) online, we are also introducing a few new Group interest areas.

• Legal - This Group will be a source for news and articles.

This will be a place to discuss laws and legal implications.

Information within this Group will be general in nature, and the forum will not be used to provide personal or agency-specific legal advice and counsel.

Matt’s Mixology

Toast to the kickoff of fall with this seasonal take on Moscow Mules.

4

Ingredients

Directions

• 4 oz. vodka • Ginger beer • Sparkling cider • Sliced apple, for garnish • Cinnamon sticks, for garnish

1. Fill two copper mugs with ice. Pour 2 oz. vodka into each cup. Fill 2/3 full with sparkling cider, then top with ginger beer.

2. Garnish with an apple slice and a cinnamon stick. Serve.

| SEPTEMBER 2020 |

wisconsin INDEPENDENT AGENT

Recipe and photo courtesty of Delish.com

• Education and Events - This Group will share professional development and continuing education opportunities. Members in this Group will learn about industry educational offerings and events.

participate in MyFeed and Group discussions. Top contributors will earn gift cards/gift certificates to local eateries (Wisconsin small businesses), donations to local charities and handpicked IIAW swag and prizes.

• Internet of Insurance - The Internet of Insurance User Group will assist users in the utilization and troubleshooting of the IOI, a free platform for members.

Members can share questions, comments and connect with Thought Leaders within the Internet of Insurance space to make improvements to the customer and user experience. Within the Group, members can learn more about the platform and use it to your agency’s advantage.

Founders and employees of DAIS, the company that created the IOI, will be Thought Leaders within this Group.

Additionally, participation will also play a part in the selection process for IIAW’s end-of-year Association Awards like Agent of the Year, Industry Representative of the Year, Emerging Leader of the Year and more.

Connect, Collaborate and Engage Our Online Community is our industry-curated version of Facebook and LinkedIn. Similar to your favorite social media sites, you can connect with others, read, comment, like posts and much more within Groups and on the feed (MyFeed). Connecting, collaborating and engaging with other members of our Online Community is the best way to get the most value out of this new member benefit.

If used to its full potential, our new Online Community will be a great member benefit. Being an active member of our Online Community and its Groups will give members the ability to be a part of just that - an online community of professionals that understand the industry, customers and values.

We are excited to offer our members this free and valuable benefit, and we are eager that together, as a community, we can support your local communities too!

Earn Gifts that Give Back One of the important features of our Online Community is how we will be giving back to local communities. We have created a rewards system to award those who actively

> Matt Banaszynski CEO of IIAW

Take Your Business to New Heights.

Going into business was a big decision. Succession planning—your next business decision—can be even bigger. A partnership with Ansay & Associates can transition that decision by joining a group of like-minded leaders committed to measuring performance for accountability and growth.

Family-owned and committed to your success, we cultivate insurance

v

carrier options and design insurance solutions that last well beyond the initial merger.

ANSAY.COM | 888.262.6729 wisconsin INDEPENDENT AGENT

| SEPTEMBER 2020 | 5

AGENCY LEADERSHIP WEBINAR SERIES October 1 10:00 AM

TH Impact of COVID-19 on the Insurance Industry

Featured Speaker: Dr. Steve Weisbart, Senior Vice President and Chief Economist for the Insurance Information Institute

November 10 10:00 AM

TU

State of the Current Economy & Next 5 Years

Featured Speaker: Dr. Steve Weisbart, Senior Vice President and Chief Economist for the Insurance Information Institute

January 19 10:00 AM

Agency Technology

TU

Featured Speaker: Steve Anderson, author of “The Bezos Letters - 14 Principles to Grow Your Business Like Amazon” and world-renowned agency technology expert

For more information and to register for the Agency Leadership Webinar Series, visit:

iiaw.com/webinarseries • Free for IIAW Members •

October 22 10:00 AM

TH

State and Federal Election Preview

Featured Speakers: Misha Lee, IIAW Government Affairs and Lee Government Relations, LLC and; Charles Symington or Nathan Riedel, IIABA

December 4 10:00 AM

E&O Claim Trends

FR

Featured Speaker: SwissRE Corporate Solutions

BROUGHT TO YOU BY OUR EXCLUSIVE SUPPORTING COMPANY MEMBERS:

You’re in the business of protecting others.

So, who’s watching out for you?

We are. At Arlington/Roe, we put the needs of our customers first. What does that look like? Well, it looks like experience you can trust, integrity you can count on, promises we stand behind and an independent and family-owned industry partner who understands your specific needs. Located in nine states and licensed in all 50, we’ve got your back.

Get to know the people of Arlington/Roe. We’ve been doing the right thing since 1964.

Let us help you find the right solutions.

Managing General Agents | Wholesale Insurance Brokers

800.878.9891 | ArlingtonRoe.com

Aviation | Bonds | Brokerage | Commercial Lines | Healthcare & Human Services | Farm Personal Lines | Professional Liability | Transportation | Workers’ Compensation

It’s time to

get out of the

‘Pool’

Class Code 0006 0008 0042 5022 5102 5183 5190 5403 5445 5474 5537 7219 7231 7600 7605 8215 8279 8381 8742 8824 8835

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) Masonry NOC Door and window installation — all types — residential and commercial Plumbing NOC and drivers Electrical wiring — wiring — within buildings 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 Trucking — NOC (no log, munitions, or liquid propane haulers) Mail, parcel or package delivery and courier or messenger service companies Telecommunications companies — all other employees and drivers (no cell tower work) Burglar alarm installation or repair and drivers Feed, fertilizer, hay or grain dealer and local managers, drivers (no manufacturing) 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 Home, public and traveling health care — all employees

Class Code 8842 8868 8869 9012 9014 9015 9016 9063 9082 9180 9403

Class Description 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 Exercise or health institution — all employees and clerical (community centers acceptable, excluding YMCA clubs) Restaurant NOC Amusement device operation NOC — not traveling and drivers (no fireworks, racing, skiing, or zip line operations) Garbage, ashes or refuse collection and drivers

TECHNOLOGY

> Jason Kolb,

Founder & CEO of Internet of Insurance | DAIS

wisconsin wisconsin INDEPENDENTAGENT AGENT| | SEPTEMBER INDEPENDENT SEPTEMBER2020 2020 |

| 11 11

AGENCY OPERATIONS

CREATING A LEARNING CULTURE IN YOUR AGENCY Continuous Learning... Skill Agility... Critical Thinking... Learner-Centered - It all starts with creating a Learning Culture where employees are encouraged, supported and motivated to seek learning opportunities.

This chart from the Association of Talent Development (ATD) provides a solid comparison of Training Culture versus Learning Culture. Does your agency have a training culture or a learning culture?

Training Culture vs. Learning Culture

projects, reading, certificate programs, etc.

• Learning should be shared. Encourage tech-backs, best practice recommendations, etc.

• Learning should create spark for new ideas and inventions.

• Learning should create next-role-readiness.

Learning must be continuous and ongoing. Prior event-driven training does not deliver the return-on-investment in today’s operational settings.

Plan and start the learning conversations today!

About My Agency Campus:

With many team members now working remote or now unable to co-locate in the office together, best to schedule focused conversations about “learning plans” with every employee - individually. Aim to spend 20-30 minutes with each team member to discuss learning, growth and their career.

• Learning needs to be personalized/ individualized • Learning exists in many modes - online, e-book, research, virtual webinars, collaborative 12

| SEPTEMBER 2020 |

wisconsin INDEPENDENT AGENT

MyAgencyCampus™ is the go-to site for agents and brokers seeking to onboard and develop staff with comprehensive coverage online courses, business skills and leadership modules. Special course bundles are available by job role: insurance sales, service, interns and leaders. Content is expertly designed on an engaging platform with measurable results. The solution is a budget-friendly - no monthly fees or travel. CE credits available on select bundles.

Over 200,000 completed courses to date. Come join the 1000+ agencies that have had success with our programs! Start-up is very simple - visit the site, select your training and go!

> MyAgencyCampus

In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance.

Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers.

Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin.

Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com

Clayton Zogata 262.432-3422 czogata@pnat.com

• Strong financial performance and A.M. Best Financial Strength Rating of A• Expanded Commercial Lines product and services with competitive pricing and comprehensive coverages to help our agents grow profitably.

• Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans.

• State-of-the-art quoting, processing and self-service tools, making is easier and faster to meet your customers’ needs.

• Local experienced underwriting, claims and management staff

An Equal Employment Opportunity/Affirmative Action Employer ©2020 Penn National Insurance

Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company.

wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 13

NEW TO THE TEAM

I recently sat down to learn a little more about Andrea: What’s one of your favorite memories from the past year?

One of my favorite memories from the past year was seeing my son walk across the stage for his high school graduation. Due to COVID-19, only family was allowed to be in the room, but it was special anyway.

What’s your guilty pleasure?

Doughnuts!

When you were a kid, what did you want to be when you grew up?

It was a toss-up between a singer in a rock band or a hair dresser.

Either one - I was flexible.

What would we most likely find you doing on the weekend?

Spending time with my husband and my dog. Or napping... most likely napping!

The IIAW Welcomes Andrea Michelz, Membership Engagement Coordinator We are excited to introduce our newest team member, Andrea Michelz. Andrea brings with her 28 years of experience at an independent insurance agency, a CIC designation and enthusiasm for working with our members.

Her aspirations of becoming a rockstar may not have panned out, but we’re glad she found herself here in Madison with us instead.

If you have any questions or would like to welcome Andrea, she can be reached at andrea@iiaw.com.

> Mallory Cornell,

IIAW Vice President and Director of Risk Management

Don’t just join a company, join a club.

AAA is a membership-based organization; we’re a club, not just a company. This means we have an entirely different level of commitment to customers. All with an unbeatable combination of savings and security for customers.

And the potential for success for you.

Learn more, contact me.

Leo Plese (630) 328-7076 lmplese@autoclubgroup.aaa.com Insurance • Membership • Travel • Banking AAA Independent Agents are not employees of AAA The Auto Club Group; but, rather are independent contractors. Insurance underwritten by one of the following companies: Auto Club Insurance Association, MemberSelect Insurance Company, Auto Club Group Insurance Company, Auto Club Property-Casualty Insurance Company, Auto Club South Insurance Company, Auto Club Insurance Company of Florida, or non-affiliated insurance companies. ©2019 The Auto Club Group.

All rights reserved. 19-IN-0147

14

| SEPTEMBER 2020 |

wisconsin INDEPENDENT AGENT

Pamper your customer’s business with a policy from West Bend.

Your customers raised their business with hard work, from nothing but a dream. Now help them nurture it.

An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable.

So wrap it in the cozy warmth of the Silver LiningÂŽ. wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 15

AGENCY OPERATIONS

YOUR REMOTE HIRING PLAN In-house hiring practices don’t often translate to hiring employees that will work remotely. What modifications do you need to make your hiring process?

By all accounts, the pandemic-related work-from-home business model is here to stay, at least for the time being. For the most part, many companies were able to transition quickly, albeit not without some significant challenges.

Yet now another significant challenge is looming: how to hire employees you may not meet in person, either during the course of the pandemic or for the duration of their employment with your company.

For the insurance industry, that challenge is multiplied by a shortage of viable candidates. Veteran insurance professionals are retiring at an alarming rate. The Bureau of Labor Statistics estimated that between 2016 and 2020, 400,000 insurance professionals will head off to retirement.

The situation is made more dire by the fact that millennials are showing little interest in insurance industry careers. According The Millennial Survey conducted by The Hartford, a mere 4% of millennials would consider an insurance industry career.

Yet the very pandemic that has challenged insurers to adopt remote work strategies may be somewhat of a saving grace in the quest to find remote workers. According to World Economic Forum data, 85% of millennials are seeking full-time remote work opportunities. What’s more, 82% expressed higher company loyalty to those companies with remote work programs.

In fact, remote work is appealing across a wider age demographic than just millennials; a recent Zapier-commissioned Harris Poll reveals that 95% of all knowledge workers (those working in a professional setting and using a computer as part of the job) want to work remotely. That means companies that were forced to shift to a remote work arrangement are now facing the very real challenge of trying to build a remote hiring process.

No matter how big or small your agency is, remote hiring takes planning. But if executed properly, your hiring process could do more than just help you hire good talent – it can elevate the number of candidates to choose from, and deliver candidates that have the exact skills needed.

16

| SEPTEMBER 2020 |

wisconsin INDEPENDENT AGENT

But First, Soft Skills Yet your new hires need a few more traits than a standard in-house hire. Because remote work can be isolating, employees need the right set of traits to be able to perform effectively and productively.

Before you hire, make sure to understand common soft skills that make for a successful remote worker. Your next remote employee should to be able to work with minimal supervision. Ideally, your remote worker should be able to manage time effectively so that daily tasks as well as projects are completed on time.

To do that, your employee should demonstrate the ability to solve common issues as well as some of the more complex challenges that they may face. And your employee should be comfortable with remote communication tools and methods.

Interviewing from a Distance Any organization that has worked remotely recently knows the need for video conferencing. That same technology is what’s needed to conduct remote interviews. While phone interviews can work for initial screening, they fail to pick up on physical cues, such as body language and facial expressions. Plus, video conferencing is a way to vet those candidates on their comfort level with technology your company uses.

That comfort with technology should extend to all technology your company employs. How familiar is the candidate with those tools? Have they shown proficiency in related technologies? In some cases, technology can be similar, so that the learning curve for your particular application would not be prohibitive.

What could be problematic is your candidate’s ability to maintain connectivity with your team. Spotty internet may not be a deal-breaker unless your team needs to be able to connect quickly during office hours. By conducting a distance interview, you can assess the quality of the connection.

You can assess also how conducive the candidate’s available workspace is to the tasks at hand. For instance, if you’re hiring a salesperson, having a noisy location or too many people in the residence could hinder the salesperson’s ability to connect with prospects. Your ideal candidate should have a distraction-free location, or a plan for keeping it quiet and distraction-free during work hours.

That last point can be difficult to navigate. As many families are home with young children and daycares are closed, your ideal candidate may have temporary distractions. If that’s the case, shift the questioning a bit: Would your candidate be able to put in hours after children are in bed or napping? Would a more flexible work schedule help them complete the work necessary?

One suggestions we ask you to consider is dropping an hourly expectation and replacing it with a per-outcome expectation. As mentioned previously, not all candidates can do their best work during traditional nine-to-five hours. By measuring your new hires, as well as all your employees, by benchmarks met and project outcomes, you will get a true measure of their productivity.

Identifying the Self-Starters

Moreover, such a move boosts employee morale and motivation.

In an environment in which employers and employees alike are trying to carve out the best way to conduct business, adopting a more flexible employee management style makes the most sense, and helps workers succeed in a remote setting.

Another question to consider: How much training will your new hire need? Every organization has a unique set of processes, and new employees need to learn them. However, in a remote position, that means your new hire needs to be able to train on their own with minimal supervision.

To ensure they can, find out how they best learn: in-class instruction or independent, self-paced learning? Have they completed any self-guided learning before? What were the results?

How easily can they get used to new systems or technology?

What challenges them most about technology?

That matters because in remote work, technology is key to getting the job done. And by asking these questions at the outset, you can set expectations for your candidates so that they know what is expected of them.

Hired: Now What?

That’s important too after the candidate is hired. We recommend using the hiring process to outline both your expectations and how you will measure their performance.

Hired, Retained That success results in higher employee satisfaction, which translates into better employee retention. In a global workforce environment that is adapting to what could be permanent changes to business, your business has a great opportunity to grow and to thrive. A strong remote hiring process, complete with vetting for soft skills, setting expectations, and outlining new management strategies can help your organization gain an advantage of those organizations that are still trying to do everything through the traditional business lens.

By setting your remote business on the right path at hiring time, your organization can adapt quickly to whatever changes may come in the future. That flexibility can keep your entire organization moving into a stronger, more resilient future.

> Sharon Emek, Ph.D., CIC

Founder & CEO, Work At Home Vintage Experts (WAHVE)

JOIN US, a WI Based Top 100 Agency

Are you or your agency ready for a positive change?

Robertson Ryan has been offering innovation through our unique Agent Owner structure since inception in 1960. Time and time again after an agent or agency joins us they say, “We wish we did this years ago.” Our team recognizes the strength and power behind the agent and insured relationships so we’ve built, and continue to fine-tune, a support network rewarding those affiliated with RRA. Find more at, www.RobertsonRyan.com/AgentOwner ...and let’s connect. Call or email me 414.221.0363 or cillman@robertsonryan.com. I look forward to answering your questions!

Chris Illman, CEO

www.RobertsonRyan.com wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 17

ASK AN EXPERT

?

VIRTUAL UNIVERSITY

Q: Is there any coverage for pets under a homeowners’ policy?

However, I have recently heard of a few homeowners’ policies that may provide very limited medical coverage for certain pets owned by the insured.

---------It depends on the policy form. Although a pet is personal property, many forms specifically exclude fish, birds, and other animals from covered property. Some might have a special provision to cover domestic pets injured or destroyed by a covered peril. If it’s a special pet, then consider obtaining an animal mortality policy for your clients.

A:

The typical homeowners’ coverage form excludes animals from items covered under personal property. I have never seen a homeowners’ policy without the exclusion. Some carriers do, however, offer some limited coverage for pets as part of an enhancement endorsement. You should research what your carrier offers if you haven’t done so already.

There are pet mortality policies available, as well as coverage for the pet’s medical needs that are similar to health insurance. These are offered by specialty markets.

----------

---------For the policy in question, try to find a section labeled similarly to “Property Not Covered” or something similar. For example, the ISO HO 00 03 05 11 form under its “Property Not Covered” section excludes animals, birds, or fish ---------Are you asking about first party coverage? Or third party liability coverage?

There is probably no property coverage for the death of a homeowner’s pet, but I can imagine some circumstances in which liability coverage for the injury or death of an unrelated party’s pet might be found.

---------Liability coverage for pets injuring others is covered and is one of the largest causes of personal liability claims. Many auto policies are adding a pet injury benefit to cover pets hurt in auto accidents. Pet medical plans have become widely available, but I’ve not seen animal mortality for animals smaller than livestock.

ISO and AAIS homeowners’ coverage forms exclude damage or injury to pets and the great majority of insurers closely follow this practice.

Q: How many claims would be considered for riots lasting multiple nights?

We have a few clients with multiple retail locations throughout various states with various policies. If they have locations which receive damages from riots on multiples nights, how many claims would this be considered and therefore how many deductibles?

A:

That’s an excellent question. Each event is separate and distinct from the other. As far as we are aware, there was no coordination of protests/riots that would indicate that these can be classed as one event. A storm is an event, protests/riots in multiple cities is not comparable.

---------It really depends on the form. ISO uses the term “occurrence” and refers to it as loss. The deductible applies to the loss. Some courts feel that a series of losses from the same peril is one occurrence with one deductible. Some property forms may define “occurrence”. There may be a deductible for each event. You need to read the form or check with your carriers.

an occurrence. It is important that each damage occurrence be reported to the carrier as one loss. An exception is if the entire “riot situation” (editorially, how sad we have come to this?) is identified as on CATASTROPHE which does not seem likely.

---------Given the gravity of the riots, I feel this answer will be company specific subject to Department of Insurance Regulations if applicable for your state. I might advise that you reach out to your carriers proactively and to your state association for further guidance.

----------

It, as always, depends on the facts and the wording of the policy.

This question is beyond the scope of this service. These could be potentially be legal questions depending upon the specific circumstances of each situation and the coverage forms in play. Different coverage forms issued by different insurers may produce different responses. The statement that coverage forms are not required to answer the question is unfortunately not entirely accurate. Think about how long it took the courts to determine whether the 9-11 attacks on the World Trade Center were one occurrence or two occurrences.

----------

----------

A named storm deductible is specific as to a particular storm.

The perils of rioting and vandalism should stand on their own as well.

Based on ISO’s Building and Personal Property coverage form the deductible provision in the unendorsed policy states that the deductible would apply per occurrence and deducted from the amount of the loss.

The word occurrence is not defined in this ISO policy.

---------It will depend on facts and case law in each jurisdiction, but each location likely will have a separate deductible because the events took place at a different time or place.

----------

---------A logical finding is that each location and each event (i.e. night) is

wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 19

GOVERNMENT AFFAIRS

Wisconsin Primary Election Yields Few Surprises The results from Wisconsin’s August primary election yielded few surprises as we now head into what is expected to be a hotly contested November general election from the top of the ticket all the way on down. The primary election also proved to be a good night for incumbents with only one losing to a challenger candidate.

Looking at Congressional races, all 8 of Wisconsin’s seats in the U.S. House of Representatives are up for election this fall and there are no U.S. Senate seats up this cycle.

U.S. House primaries of interest were: • Longtime Senate Majority Leader, Scott Fitzgerald (R-Beaver Dam) won the Republican primary with nearly 80 percent of the vote in the 5th congressional district primary. Fitzgerald will face Democratic opponent, Tom Palzewicz, who retiring Congressman Sensenbrenner defeated with 62 percent of the vote in 2018. Fitzgerald should easily win this election.

• In the 3rd congressional district, Republican Derrick Van Orden (R-Hager City) won a two-way primary to challenge 12-term Democratic Congressman Ron Kin. Van Orden is a retired former Navy Seal, actor and business consultant. Kind won re-election in 2018 with 60 percent of the vote. This race will be one to watch on election night.

• Democrat Jessica King (D-Oshkosh), an attorney and former State Senator and Oshkosh City Council member, easily won a three-way Democratic primary with 75% of the vote to challenge three-term Republican Congressman Glenn Grothman of Campbellsport in the 6th congressional district.

Grothman was re-elected in 2018 with 56 percent of the vote and is favored to win re-election.

In state legislative races, 16 of Wisconsin’s 33 State Senate seats (even-numbered districts) and all 99 State Assembly seats are up for re-election this year. There were nine legislative incumbents who faced primary challenges and eight of them easily won their races all surpassing 60 percent of the vote. Republicans currently control both the Senate (18-13, 2 vacancies) and Assembly (63-34, 2 vacancies) and are expected to return to power for the 2021-2022 legislative session. Democrats are working to protect Democratic Governor Tony Evers’ line item veto by trying to make sure Republicans in this election cycle do not reach the two-thirds majority in each house (22 seats in the Senate and 63 seats in the Assembly) needed to override a gubernatorial veto. For Democrats, preserving Evers’ veto is not just about ensuring that Republicans do not run the table on the next biennial state budget or legislation, but it’s more importantly about redistricting in 2021 and making sure Republicans don’t have sole discretion on drawing new legislative district boundaries for the next decade. Next session, the Legislature is charged with drawing new district lines based on new census data. Republicans, who are all but guaranteed to control the Legislature next session, will draw their map and Governor Evers will likely veto it and then it will be up to the courts to draw the new districts.

20 20 | | SEPTEMBER SEPTEMBER2020 2020 | |

wisconsin wisconsin INDEPENDENT INDEPENDENTAGENT AGENT

State Senate primary races of interest were: 6th Senate District (Sen. LaTonya Johnson, D-Milwaukee, incumbent) State Senator LaTonya Johnson easily held off a challenge in the Democratic primary by Michelle Bryant (D-Milwaukee), who is Chief of Staff to State Sen. Lena Taylor (D-Milwaukee). Johnson captured 77 percent of the vote.

10th Senate District (Sen. Patty Schachtner, D-Somerset, incumbent) Rep. Rob Stafsholt (R-New Richmond) captured 66 percent of the vote in the Republican primary versus Cherie Link (R-Somerset).

Stafsholt was first elected to the Assembly in 2016 and re-elected since. He is a farmer and owner of multiple small businesses. Stafsholt will now face incumbent State Senator Patty Schachtner (D-Somerset) in the general election.

14th Senate District (Sen. Luther Olsen, R-Ripon, not seeking re-election) Rep. Joan Ballweg (R-Markesan) won her Republican primary with 69 percent of the vote for the opportunity to succeed retiring Sen. Luther Olsen (R-Ripon). Ballweg was first elected to the State Assembly in 2010. Ballweg and her husband own a John Deere farming implement dealership. Ballweg will face Democrat Joni Anderson on the November ballot.

16th Senate District (Sen. Mark Miller, D-Monona, not seeking re-election) Rep. Melissa Sargent (D-Madison) won the two-way Democratic primary to succeed retiring Sen. Mark Miller (D-Monona). Sargent is a former member of the Dane County Board and has served in the Assembly since her first election in 2012. Sargent captured 77 percent of the vote.

26th Senate District (Sen. Fred Risser, D-Madison, not seeking re-election) Kelda Helen Roys won the 8-way Democratic primary to be the first person to represent what is now the 26th Senate district other than Sen. Fred Risser since 1962. Roys is a former member of the Assembly and unsuccessful 2018 gubernatorial candidate. She captured 40 percent of the vote and does not have a general election opponent.

28th Senate District (Sen. David Craig, R-Big Bend, not seeking re-election) Republican Julian Bradley captured 43 percent of the vote in a five-way Republican primary to succeed Sen. David Craig (R-Big Bend) in the 26th Senate district. Bradley will face Franklin entrepreneur and business owner Adam Murphy in this heavily Republican seat.

30th Senate District (Sen. Dave Hansen, D-Green Bay, not seeking re-election) Democrat Jonathon Hansen, the nephew of Sen. Hansen, a

member of the DePere City Council and a mortgage lender for a community bank, won the Democratic primary in the 30th Senate District with 62 percent of the vote. Hansen will face Republican Eric Wimberger, an attorney and unsuccessful candidate for the 30th Senate district.

32nd Senate District (Open Seat, Sen. Jennifer Shilling, D-La Crosse, resigned her seat) Democrat Brad Pfaff won the Democratic primary to succeed former Minority Leader Jennifer Shilling (D-La Crosse) with 63 percent of the vote. Pfaff previously ran unsuccessfully for the State Senate in 2004. He has served as Deputy Chief of Staff to Congressman Ron Kind, Executive Director of US Department of Agriculture Farm Service Agency and as Secretary-designee for the Wisconsin Department of Agriculture Trade and Consumer Protection until his confirmation was voted down by the State Senate. Pfaff will face Republican Dan Kapanke, a former state senator and baseball team owner in La Crosse. Kapanke previously represented the 32nd Senate district from 2004 to 2011 when he lost a recall election during the height of the Act 10 recall races. This race is a rematch of the 2004 Senate race where Kapanke defeated Pfaff by 5 points.

State Assembly primary races of interest are: 8th Assembly District (Open Seat, Rep. JoCasta Zamarripa, D-Milwaukee, was elected to the Milwaukee Common Council) Democrat JoAnna Bautch narrowly won her Democratic primary to succeed her sister Rep. Zamarripa in representing the 8th Assembly district. Bautch is a director with Citizen Action Wisconsin and a community organizer with the Reproductive Justice Collective. The current margin is 18 votes.

9th Assembly District (Rep. State Rep. Marisabel Cabrera, D-Milwaukee, incumbent) Rep. Cabrera was successful in fighting off a Democratic primary challenge, capturing 58 percent of the vote. Cabrerra is an immigration rights attorney and former chair of the Milwaukee Police and Fire Commission.

11th Assembly District (Rep. Jason Fields, D-Milwaukee, not seeking re-election) Dora Drake won a four-way Democrat primary to succeed retiring Rep. Jason Fields (D-Milwaukee). Drake is a member service coordinator at the Center for Self Sufficiency where she provides re-entry services to support persons re-entering society. Drake captured 47 percent of the vote.

14th Assembly District (Rep. Robyn Vining, D-Wauwatosa, incumbent) Republican Bonnie Lee will be the candidate to challenge freshman Democrat Rep. Robyn Vining. Vining was the only Democrat to win a previously held Republican seat two years ago. Lee is the director of outreach ministry at Northwest Baptist church and was endorsed by Sen. Dale Kooyenga (R-Brookfield) who formerly represented the 14th district. Lee captured 80 percent of the vote.

17th Assembly District (Open Seat, Rep. David Crowley, D-Milwaukee, was elected Milwaukee County Executive) Supreme Moore Omokunde captured 56 percent of the vote in the Democratic primary to succeed County Executive David Crowley. Omokunde is a Milwaukee County Board Supervisor and son of Milwaukee Congresswoman Gwen Moore.

29th Assembly District (Open Seat, Rep. Rob Stafsholt, R-New Richmond, is running for the State Senate) Clint Moses won the Republican primary to succeed Rep. Rob Stafsholt (R-New Richmond). Moses is a chiropractor and school board member. Moses will face Democrat John Calabrese.

Calabrese previously ran for the State Senate and State Assembly losing to Stafsholt in 2018.

35th Assembly District (Open Seat, Rep. Mary Felzkowski, R-Irma, is running for the State Senate) Calvin Callahan won the two-way Republican primary to succeed Rep. Mary Felzkowski who is running for the State Senate. Callahan is a Lincoln County Board Supervisor and the owner of Callahan Wholesale. Callahan will face Democrat Tyler Ruprecht on the November ballot.

41st Assembly District (Open Seat, Rep. Joan Ballweg, R-Markesan, is running for the State Senate) Republican Alex Dallman captured nearly 50 percent of the vote in a four-way Republican primary to succeed Rep. Ballweg as the Republican nominee for the 41st district. Dallman is a long-time staffer to Congressman Glenn Grothman. Dallman will face Democrat Nate Zimdars, a production line worker at Saputo Cheese in Alto.

48th Assembly District (Open Seat, Rep. Melissa Sargent, D-Madison, is running for the State Senate) Madison Alder Samba Baldeh won a competitive four-way Democratic primary with nearly 50 percent of the vote to succeed Rep. Sargent in representing the 48th district. Baldeh is the former President of the Madison Common Council and an IT Project Manager at American Family Insurance Company.

55th Assembly District (Open Seat, Rep. Mike Rohrkaste, R-Neenah, not seeking re-election) Rachael Cabral-Guevara won the three-way Republican primary for the opportunity to succeed retiring Rep.Mike Rohrkaste with nearly 60 percent of the vote. Cabral-Guevara is a board-certified Family Nurse Practitioner and a licensed Advanced Practice Nurse Prescriber. Cabral-Guevara will face Democrat Dan Schierl on the November ballot. Schierl is a retired worker at a local plastic manufacturing plan.

69th Assembly District (Open Seat, Rep. Bob Kulp, R-Stratford, not seeking re-election) Republican Donna Rozar captured 53 percent of the vote in the Republican primary to succeed Rep. Bob Kulp (R-Stratford). Rozar is medical-surgical RN in the cardiac unit at Marshfield Clinic Hospital and a Wood County supervisor. Rozar will face Democrat Brian Giles in the GOP leaning district.

76th Assembly District (Open Seat, Rep. Chris Taylor, D-Madison, not seeking re-election) Francesca Hong won the seven-way Democratic primary with 27 percent of the vote to succeed Rep. Chris Taylor in representing this heavily Democratic 76th Assembly district covering downtown Madison. Hong is the co-owner of Morris Ramen Restaurant and co-founder of the Culinary Ladies Collective and Cook It Forward.

90th Assembly District (Rep. Staush Gruszynski, D-Green Bay, incumbent) Kristina Shelton of Green Bay defeated one-term incumbent Rep. Gruszynski in the Democratic primary with nearly 80 percent of the vote. Gruszynski was the only incumbent on election night to lose.

He was forced out of the Assembly Democratic caucus after he sexually harassed a Capitol staffer and the Democratic campaign committee supported the campaign of Shelton with over $124k.

>M isha Lee IIAW Lobbyist

wisconsin wisconsin INDEPENDENT AGENT | INDEPENDENT AGENT

SEPTEMBER2020 2020| | 21 21 | SEPTEMBER

VIRTUAL UNIVERSITY

FOOD DELIVERY AND THE BUSINESS AUTO POLICY

Thousands of restaurants engage in food delivery. This is, by no means, a new phenomenon. With that reality in mind, two questions arise: 1. Is the restaurant covered for food delivery if it does NOT have a business auto policy; and 2. How does a restaurant’s business auto policy respond to food delivery when they have the coverage?

What appears to be two simple questions simply aren’t.

exclusion is a non-factor in this discussion.

The PAP excludes the use of an auto when being used in an auto-related business (sales, service, repair, etc.), unless the car is owned by the named insured, a family member or others provided the car is listed on the PAP. So, this exclusion can be ignored.

Public or Livery Conveyance Exclusions: This exclusion may have more teeth. The applicable part of this exclusion reads: EXCLUSIONS

The simple answer is, yes, the restaurant is covered for its auto liability exposure – well, maybe there is coverage. The more complicated answer is, yes, the restaurant is covered, but is that coverage adequate for the restaurant and the employee?

A. We do not provide Liability Coverage for any “insured”:

Let’s begin by looking at the reality of coverage when the employee is using his or her personal auto to make deliveries for the restaurant. The questions that must be answered include:

Does an employee delivering food qualify as either public or livery conveyance? If so, the PAP provides no coverage. Although generally phrased as one concept, public conveyance and livery conveyance are actually two different threshold requirements (notice the “or” between the terms). Let’s define both terms to clarify coverage (or the lack thereof).

• Is there liability coverage in the personal auto policy (PAP) for food delivery?

• Is coverage provided by the business auto policy (BAP) for employees using their personally-owned autos for food delivery?

• Who is covered by the BAP, if coverage is provided?

• Which policy is primary?

• Which policy is excess?

• What key endorsement is needed?

Coverage in the PAP Decades ago, pizza and maybe Chinese food delivery began the PAP’s delivery coverage debate. Does the personal auto policy cover food delivery? Note that as this question is answered, Grub Hub, Uber Eats and every other such app-based food delivery service are completely ignored. The focus here is solely on food delivery by the employee of one restaurant.

PAP Exclusions of Interest Whether the PAP provides liability coverage for food delivery is a function of two exclusions: the business use exclusion and/or the public or livery conveyance exclusion.

Business Use Exclusion: The business use 22 22 | | SEPTEMBER SEPTEMBER2020 2020 | |

wisconsin wisconsin INDEPENDENT INDEPENDENTAGENT AGENT

5. For that “insured’s” liability arising out of the ownership or operation of a vehicle while it is being used as a public or livery conveyance.

• Public conveyance: Making the vehicle available for public use (like a common carrier); • Livery conveyance: Carrying persons or property for a fee.

Is food delivery for one restaurant considered “public conveyance”? No, the vehicle is not available for public use; it is being used by the employee on behalf of his/her employer only, and only for a single purpose – food delivery.

Making the vehicle available for public use is what the ride sharing and food delivery apps do.

When working for one restaurant, the vehicle is not available to others (to the public).

However, does food delivery trigger the “livery conveyance” exclusion? The employee is carrying property (namely food), but is the cost of the food considered a fee? And considering fees, does charging a separate delivery “fee” make a difference?

Courts seem to agree that an employee delivering food for an employer is not livery conveyance, even if a separate delivery fee is charged. In a livery conveyance, the fee is

charged by the carrier as their remuneration for providing the service. In pizza delivery or food delivery, the fee is charged by the employer for its own purposes (probably a charge for convenience) and is not necessarily for the benefit of the driver.

Remember, the public or livery conveyance is intended to exclude coverage for those who are in a common-carrier-like business, not the person using their personal auto to delivering property for his or her employer.

This discussion is a long way around to answering the question of coverage in the PAP. Yes, there is coverage for food delivery in the PAP. But this doesn’t mean carriers won’t try to utilize the public or livery conveyance exclusion if the injury is bad enough.

BAP and Employee Use of a Personally Owned Auto If the employer/restaurant has a business auto policy, does that policy extend coverage for the employee’s use of their personal auto for any reason, particularly to deliver food? Secondly, who is covered?

Is Coverage Provided?

Whether liability coverage is provided by the BAP for an employee’s use of his/her personal auto on behalf of the employer is a function of the coverage symbol or symbols used.

• If Symbol 1 – Any Auto is used, yes, there is coverage. If any other primary symbol is used (2, 3, 4 or 7), no, there is no coverage.

• If the primary liability symbol used is 2, 3, 4, or 7, the only way there is coverage for use of the employee-owned auto is if Symbol 9 – Non-Owned Auto is also used within the liability coverage.

If either of these requirements is met (Symbol 1 or Symbol 9), then the BAP provides coverage for the employee’s use of their personal auto.

But that is only part of the issue. Who is covered by the BAP? Who is Covered by the Unendorsed BAP? When the employee is using his or her personal auto on behalf of the named insured only the named insured (the restaurant) is protected by the unendorsed BAP. The exclusion for the

employee is clearly stated within the Who is an Insured provision: 1. Who Is An Insured The following are “insureds”: a. You for any covered “auto”. b. Anyone else while using with your permission a covered “auto” you own, hire or borrow except (this means they are excluded from coverage): (1) The owner or anyone else from whom you hire or borrow a covered “auto”.

This exception does not apply if the covered “auto” is a “trailer” connected to a covered “auto” you own.

(2) Your “employee” if the covered “auto” is owned by that “employee” or a member of his or her household.

Again, this means the BAP protects only the named insured restaurant when the employee uses his/her personal vehicle to deliver food.

Worse still, because the employee is not an insured in this situation, the employer’s business auto carrier can actually subrogate against the employee.

But remember, this is how the unendorsed BAP responds, there is an endorsement that solves this problem. But before we get to the solution, we need to understand how the PAP and BAP dovetail.

Which Policy is Primary and Which is Excess?

Even though the business is benefiting from the employee’s use of his/her personal auto, the employee’s personal auto policy provides primary coverage in the event of a claim. This primary protection extends to both the employee and the employer.

Don’t believe me? Here is the policy language: PART A - LIABILITY COVERAGE INSURING AGREEMENT B. “Insured” as used in this Part means: 3. For “your covered auto”, any person or organization but only with respect to legal responsibility for acts or omissions of a person for whom coverage is afforded under this Part.

As is seen in this language, the employee’s personal auto policy extends coverage to the employer for its vicarious liability for the actions of the employee. Although this wording doesn’t specifically state that the PAP is primary, we need only to review the BAP for proof.

The Other Insurance provision in the BAP reads: 5. Other Insurance a. For any covered “auto” you own, this Coverage Form provides primary insurance. For any covered “auto” you don’t own, the insurance provided by this Coverage Form is excess over any other collectible insurance.

Remember, the PAP is always primary when the policy’s named insured owns the vehicle and it

is listed on the personal auto policy. The BAP is excess, but only for the employer’s benefit (unless the policy is endorsed otherwise).

Because the PAP is primary, the first issue for the employee and the employer is coverage limits.

Are the employee’s PAP limits adequate in the event of an at-fault incident? Remember, both the employee and employer are covered.

Consider this scenario, the employee, while delivering food for his/her employer, is involved in an at-fault accident – hitting a surgeon on her way to the hospital. In the accident, the surgeon severely injures her right hand and can no longer perform her surgical duties.

Will the insured (the employee) have adequate limits? Probably not (regardless of the amount).

If the employee’s limits are exhausted, then the BAP responds on an excess basis (if Symbols 1 or 9 is used) – but only for the employer (in an unendorsed BAP).

Let’s throw in another “but” or “what if;” what if the employer doesn’t have a BAP? Let’s end the suspense, this is a very bad situation – for the employer.

If the employer is held vicariously liable for the actions of the employee, the employer is financially responsible for damages caused by the employee over and above what the PAP pays. This is true even if there is no business auto policy in place. The lack of insurance does not relieve a legally liable party of its responsibility to the injured party. Legal liability can be direct or vicarious (see the article “How Does a Person Become Legally Liable”).

To avoid this out-of-pocket expense, the employer needs a business auto policy to protect its financial assets – at least to the level of coverage.

Lest you get jaded and say, “But Boggs, what is the likelihood the employee will hit a surgeon?”

Fair question. The victim doesn’t have to be a surgeon, nearly any accident can be financially devastating under the right circumstances.

Two recommendations so far: • Require the employee to carry relatively high liability limits. At minimum 100/300/50.

I recommend higher with an umbrella/excess policy, but there are certain financial realities that may make higher limits too expensive.

But remember, don’t limit the insured’s options by not letting them know that higher limits are available.

• If the business doesn’t have a BAP, explain the dangers of not having one; namely that the insured can still be required to pay because of their vicarious liability for the actions of the employee. Recent anecdotal reports are that carriers are not as willing to provide hired and non-owned liability coverage only at this point; but you have to try to find it (even in the E&S market). Some other reports are that certain carriers are going to automatically extend this coverage if the insured restaurant did not provide delivery service previously (if the insured did provide delivery but never bought the coverage, > they are on their own, which is OK because they should have had the coverage

A Key Endorsement Throughout this article, the fact has been highlighted that the unendorsed BAP does not extend protection to the employee when he/ she is using his/her personal auto on behalf of the employer. This lack of employee protection can be detrimental to the employee.

As was previously discussed, the BAP insurer can subrogate against (seek recovery from) the employee if the BAP is required to pay to cover the business owner’s vicarious liability for the actions of the employee.

Whether the BAP carrier would want the PR storm that comes with this is irrelevant; they can do it, and if the loss is bad enough, they may.

But there is a remedy.

To fix this gap and keep relations between the employer and employee intact, attach the CA 99 33 10 13 - Employees as Insureds endorsement. As the title suggests, the endorsement extends insured status to employees when driving their personally owned vehicles for the benefit of the employer/insured.

But this endorsement does NOT change the order of response.

Even when the CA 99 33 is attached, the employee’s PAP still responds as the primary coverage. The BAP remains excess. The difference is this endorsement extends protection from the BAP to the employee on an excess basis. Further, as an insured, the carrier no longer has the ability to subrogate against the employee if the loss requires the BAP to respond as excess.

Always attach the CA 99 33 anytime an employee is using his or her personal auto on behalf of the employer, even in non-delivery situations such as are addressed in this article.

Takeaways Keys to remember from this article: • The PAP is always primary for an employee-owned auto; • The public or livery conveyance exclusion is intended for those in common carrier type businesses, not food delivery for their employer; • Don’t put it past an insurance carrier to try to use the public or livery conveyance exclusion; • An employer can be held vicariously liable for the actions of its employees, especially when the employee is using his/her personally-owned auto for the benefit of the employer; • Because the employer can be held vicariously liable for the actions of the employee’s use of the employee-owned auto, the employee should carry relatively high PAP limits; • Because the employer can be held vicariously liable for the actions of the employee’s use of the employee-owned auto, the employer should have a BAP; and • Because there is no coverage for the employee in the unendorsed BAP, the CA 99 33 should be attached.

Chris Boggs Big “I” Virtual University Executive Director

wisconsin wisconsin INDEPENDENT AGENT INDEPENDENT AGENT SEPTEMBER2020 2020| | |SEPTEMBER

| 23 23

Independence

Business Development

Bonds

Employee Benefits

Claims

Sales Training

Marketing

Carrier Relations

works better Operations

Business Intelligence

Financial Services

together.

Producer Recruitment

Niche Programs

Field Operations

Commercial Markets

Risk Management

Meet the management team of Keystone. They’re backed by a team of 200 professionals and a wealth of resources ready to help you strategically increase the value of your agency.

Independently, you’re strong. Together, we’re better.

Contact JoAnn Hartung: 570.473.4340 | jhartung@keystoneinsgrp.com keystoneinsgrp.com ©2019 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.

OPEN SEMCI Single-entry, multiple-company interface (SEMCI) is like magic!

Acuity, long recognized as a leader in agency interface technology, is committed to supporting SEMCI in commercial lines. SEMCI drives efficiency in the quote and application process and allows you to choose how you want to do business with Acuity.

Acuity currently partners with several of the leading commercial lines insurtechs. We are building, exploring partnerships, or expanding with numerous other independent agency technology solutions. And Acuity is on the forefront of integration technology, continually building the connections necessary to be ready to connect to new insurtechs as they emerge. wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 25

News Members in the

ENCOVA INSURANCE LAUNCHES TRANSFORMATIVE, DIGITAL-FIRST PERSONAL LINES PRODUCTS AND TECHNOLOGY

Columbus, OH (7/27/20) — Encova Insurance continues to put their mission into action by providing innovative solutions for their independent agents and policyholders. Available now to the first group of agents in Indiana, Encova launched a new suite of personal lines products that will be delivered through state-ofthe-art technology. With a digital-first approach, the agent and policyholder need for doing business seamlessly and efficiently online was at the forefront of the solution’s design.

“This initiative to reinvent our personal lines offering required effort from every area of the organization, and I am proud of our associates’ dedication to creating the best experience and products for our agents and policyholders,” Encova President and CEO TJ Obrokta Jr. said.

With Encova’s new personal lines product offering, agents and policyholders will appreciate choice and flexibility through advanced customization options and a more robust coverage offering. Encova ChoicePakSM, a feature of Encova’s new customized coverage offering, provides policyholders with a menu of items that gives them the option to choose one or more coverages, which are discounted when packaged together.

Encova’s new personal lines technology consists of modern online portals for agency and policyholder interaction, which streamline the process from quoting to issuance and policy servicing. The digital capabilities include underwriting, claims management, billing, rating and policy administration.

“Our enhanced personal lines services will be supported by an innovative agent portal that allows for a higher level of selfservice and reporting capabilities, along with an easy online experience for policyholders to access their policy information and documents,” Encova Executive Vice President, Personal Lines Matt Wilcox said. “By investing in this paperless and time-saving experience for our customers, we are providing our agents with the technology they need to compete in the ever-changing insurance industry,” said Wilcox.

In May 2017, Encova launched their innovative approach to commercial lines under their new company at the time, Motorists Insurance. Today’s transformation of personal lines is a continuation of that effort to provide advanced technology and a cutting-edge product offering for their agents in all lines of business.

Over the next month, Encova will onboard all of their Indiana agents onto this new technology. In September, Encova will roll out this new product offering and online technology for agents 26

| SEPTEMBER 2020 |

wisconsin INDEPENDENT AGENT

and policyholders in West Virginia, followed by Ohio in October.

Encova has plans to continuously expand this solution to the company’s full operating footprint by year-end 2021.

About Encova Insurance A super-regional carrier ranked in the top 20 mutual insurance companies in the United States, Encova includes more than 1,200 associates writing in 28 states and the District of Columbia, premiums in excess of $1 billion, a surplus in excess of $1.65 billion and assets in excess of $4.3 billion. The group markets insurance solutions through more than 2,000 independent agencies in the Midwest, Northeast and South.

SOCIETY INSURANCE RAISES $32,560 TO SUPPORT FEEDING AMERICA EASTERN WISCONSIN

Fond Du Lac, WI (8/3/20) — Society Insurance has raised $32,560 to provide meals for food-insecure families via Feeding America Eastern Wisconsin, an area communities aid those affected by the COVID-19 pandemic.

“This donation will provide almost 100,000 meals to local families facing hunger,” said Liz Wollenberg, director of development for Feeding America Eastern Wisconsin.

Society Insurance partnered with Feeding America Eastern Wisconsin for its ability to respond quickly to increased community needs resulting from lost jobs and reduced income during business closures implemented to reduce the spread of COVID-19 in Wisconsin.

Individual donations from Society’s employees raised $16,280 for the campaign. A dollar-for-dollar corporate match from Society doubled the fundraising total to $32,560.

“Our employees have shown incredible generosity to those who are most in need,” said Rick Parks, Society Insurance president & CEO. “It’s humbling to work with such a caring group of people.”

About Society Insurance: Headquartered in Fond du Lac, Wis., Society Insurance has been a leading niche insurance carrier since 1915. Society focuses on the small details that make a big difference to its policyholders while offering top-notch insurance coverage, service and competitive pricing to businesses in Wisconsin, Illinois, Indiana, Iowa, Tennessee and Minnesota.

SECURA INSURANCE NAMED A TOP 50 CARRIER BY WARD GROUP FOR SEVENTH CONSECUTIVE YEAR

Neenah, WI (7/24/20) — SECURA Insurance has again earned a place among Ward Group’s 50 top-performing property and casualty insurers for its performance over a five-year period (20152019). This is the seventh consecutive year the company has been recognized on this list for superior financial strength.

“We are honored to have earned a spot on Ward’s 50 again

this year,” said Dave Gross, SECURA President & CEO. “This recognition speaks to the strength of the relationships between our associates and independent agent partners. Together, we are committed to long-term growth and financial stability to be able to continue to take care of our policyholders.”

Ward Group is the leading provider of benchmarking the best practice studies in insurance companies. The company analyzes nearly 3,000 property-casualty insurance companies in the United States to identify top performers annually.

Financial benchmarks include: • Five year average return on average equity • Five year average return on average assets • Five year return on total revenue • Five year growth in revenue • Five year growth in surplus • Five year average combined ratio In addition to being named Ward’s Top 50 SECURA has an A (Excellent) rating from A.M. Best, which affirms its solid financial results and its ability to pay claims. SECURA is also certified as a Great Place to Work based on associate feedback about the company’s workplace culture, and was also ranked number 10 in Fortune Best Workplaces in Financial Services & Insurance for small and medium companies.

About SECURA Insurance SECURA Insurance is headquartered in Neenah, WIs. More than 550 independent insurance agencies in 12 states represent the company, which provides a broad range of competitive commercial, personal, farm, nonprofit and special events products. It is known for providing exceptional service to its agents and policyholder obligations. The carrier is a Ward’s Top 50 company for outstanding results in financial performance and consistency for a five-year period, and it is a certified Great Place to Work ® Visit secura.net to learn more.

business position the company well for continued growth and success.

“We’ve become a leading regional insurer by recruiting and retaining top employees and agents and providing them the best technology the industry has to offer,” Salzmann said. “We are poised operationally, strategically, and financially to create a successful future for all our stakeholders—agents, policyholders, and employees. Acuity is a company that people can rely on, year after year.”

Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 28 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,400 people.

News Members in the

ACUITY LOOKS FORWARD TO 95TH ANNIVERSARY

Sheboygan, WI (7/22/20) — Acuity marks its 95th year in business on August 24, 2020. The insurer began operations in 1925, when it was founded as the Mutual Automobile Insurance Company of the Town of Herman. Today, Acuity manages over $5 billion in assets and $2.5 billion in surplus and is the 62nd largest propertycasualty insurer in the nation.

“Over 95 years, we have built a foundation based on technology, relationships, and underwriting that will catapult us to the future.

We’re excited about what lies ahead,” said Ben Salzmann, Acuity President and CEO. In particular, the past 20 years at Acuity have seen a remarkable transformation, beginning with the company’s corporate culture.

“We’ve undergone a cultural metamorphosis, transforming from a rigid workplace that suffered 28 percent annual turnover prior to 2000 into one of the best companies to work for anywhere,” Salzmann said.

Acuity’s cultural renaissance has contributed to its financial success. Year after year, Acuity has outperformed the industry, and the company did so again in 2019, growing its revenue 7.5 percent while recording a combined ratio of just 95.2. Most important, the company’s achievements over its first 95 years in

to Commercial Insurance that understands the Bar & Tavern Industry At Badger Mutual, we take commercial insurance personally. Visit our website today to learn more about a customized package of protection for your customers.

badgermutual.com wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 27

AmGUARD • EastGUARD • NorGUARD • WestGUARD

Workers’ Compensation

Workers’ Compensation coverage is available in Wisconsin

PROTECTING YOUR BUSINESS AND EMPLOYEES. We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim. We’ve been successfully protecting our policyholders and their employees for decades.

Coverage Highlights Up-front loss control measures Responsive claims handling Facilitation of quality medical care (when an accident does occur)

Our Workers’ Compensation policy is available nationwide except in North Dakota, Ohio, Washington, and Wyoming.

APPLY TO BECOME AN AGENT AT: WWW.GUARD.COM/APPLY/

COMMENTARY FROM COUNSEL

UNAMBIGUOUS POLICY LANGUAGE IS NOT ALWAYS THE END OF THE COVERAGE INQUIRY Insurers issuing auto coverage in Wisconsin may want to double check their policies after the court of appeals’ recent decision in Brey v. State Farm Mut. Auto Ins. Co., 2020 WL 3455880 (Wis. Ct. App. June 25, 2019). There, the court found that the state’s omnibus insurance statute requires carriers offering underinsured motorist (UIM) coverage to provide that coverage even when their insureds have not suffered any bodily injury themselves.

The facts of Brey were relatively straightforward. A father died in an automobile accident. His son sued to recover UIM benefits from State Farm, which insured him under a policy issued to his mother.

The father was not insured under that policy, as he did not live with the son and his mother. State Farm denied coverage because the policy’s UIM provisions required an insured to suffer “bodily injury” and the son (who was not involved in the crash) had not suffered any such injury. The son acknowledged those policy terms but argued that they were void and unenforceable because Wisconsin law does not allow for UIM provisions that require bodily injury of an insured. The trial court sided with State Farm and dismissed the son’s claim. On appeal, however, the appellate court reversed, concluding that State Farm’s UIM terms were impermissible under applicable Wisconsin statutes.

The case turned on Wis. Stat. § 632.32, a state statute that identifies the minimum coverage that all policies issued in the state must provide. Section 632.32(2)(d) addresses UIM coverage and states:

“Underinsured motorist coverage” means coverage for the protection of persons insured under that coverage who are legally entitled to recover damages for bodily injury, death, sickness, or disease from owners or operators of uninsured motor vehicles.”

According to the court of appeals, this statement unambiguously establishes that UIM provisions in Wisconsin must protect any person who meets three requirements: “(1) the person who makes the UIM claim must be an insured under the UIM coverage of the policy; (2) that person must be legally entitled to recover damages for bodily injury or death; and (3) that person must be legally entitled to recover from an owner or operator of an underinsured motor vehicle.” 2020 WL 3455880, at ¶ 22. Because Wis. Stat. § 632.32(2)(d) says nothing about the insured having to sustain bodily injury or death to access UIM benefits, insurance policies issued in the state are not allowed to include that requirement. Id. State Farm raised a host of other arguments, contending that: the son’s reading of the statute was absurd; that prior Wisconsin case law dictated a result in State Farm’s favor; and that decisions from other jurisdictions suggested State Farm was correct. The appellate court quickly rejected all these arguments, reiterating that the statutory language was unambiguous.

The decision is a good reminder to insurers that, at least in Wisconsin, unambiguous policy language is not always the end of the coverage inquiry.

Wisconsin’s omnibus insurance statute always serves as a backdrop to any coverage dispute and can lead to a victory for the insured even when the terms of the policy clearly do not afford coverage.

Insurers facing such arguments should seek counsel experienced with the omnibus statute to help them avoid trouble.

> Godfrey & Kahn Updates

wisconsin INDEPENDENT AGENT |

SEPTEMBER 2020 | 29

An original farm boy

SECURA Farm-Ag. It’s how you grow. secura.net/farm-

FOOD FOR THOUGHT

JM Wilson 100th-WI-Indep-Agent CMYK Outlines.indd 3

wisconsin INDEPENDENT AGENT |

4/3/20 2020 9:31 AM| 31 SEPTEMBER

PRSRT STD US POSTAGE PAID MADISON WI PERMIT NO. 549

LET US UN-SHATTER THAT BAY WINDOW FOR YOU. HOMEOWNERS INSURANCE THAT’S DESIGNED TO BE WORRY FREE A home is one of the most valuable assets. Whether it is a current homeowner, someone looking to own, or someone renting a home, financial protection is needed for the important things in life.

A homeowners policy from IMT Insurance can help your policyholders Be Worry Free.

Learn how you can represent IMT Insurance at imtins.com/contact.

AUTO | HOME | BUSINESS