FEBRUARY 2021
MIKE ERTEL COMMUNITY LEADER, SAILOR, AND INDEPENDENT AGENT
YOUR REMOTE HIRING PLAN
Exclusive Member Magazine
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FEBRUARY
2021
CONTENTS FEATURED 8
Q&A WITH MIKE ERTEL IA&B Member Michael Ertel, Sr. talks about his work as a volunteer community leader, the best professional advice, and sailing on the Chesapeake Bay.
> > > > > 10 14 JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B YouTube.com IA&B is the premier resource and champion for independent insurance agents in Pennsylvania, Maryland, and Delaware. Periodical postage paid at Mechanicsburg, PA and at additional mailing offices. Postmaster: Send address changes to Insurance Agents & Brokers, 5050 Ritter Road, Mechanicsburg, PA 17055. Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2021-02, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2021. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and not intended to serve as legal, accounting, financial, insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult with competent legal, financial, insurance, investment advisory and/or other professional advisors concerning specific matters before making any decisions. We disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in Primary Agent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of IA&B. Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&B endorsement of the products and/or services.
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 to your hiring process?
NEW HIRES & E&O LOSS PREVENTION Review five tips for training new employees to meet your agency’s expectations for risk management.
MONTHLY 2 3 4 7 16 17 17
CHAIR OF THE BOARD’S MESSAGE DON'S DISCUSSION COVERAGE CORNER NEWS & NOTES PICS & POSTS UPCOMING LIVE WEBINARS WELCOME NEW MEMBERS
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CHAIR OF THE BOARD’S MESSAGE
PICKING UP THE PIECES Last year at this time, we were blissfully unaware of what would unfold throughout 2020. This February, while we’re all a bit battered and bruised (and if you’re like me, a bit ticked at the ominous pall that’s hung around to squelch our natural desires for experiencing a full and rewarding life), there seems to be a collective sense of optimism and a feeling that recovery and normalcy are just around the bend. So be it! Of course that begs the questions: What is normal now? And will everything go back to the way it was? On a professional front, many of us spent last spring reacting to a litany of circumstances that included technology challenges, HR issues, telecommuting, and those mind-numbing, joyless Zoom meetings. It’s a blur for some, but we made it work, and we came through for our employees, clients, and communities.
INSURANCE AGENTS & BROKERS 5050 Ritter Road | Mechanicsburg, PA 17055 191 Main Street | Annapolis, MD 21401 800-998-9644 | IABforME.com
IA&B BOARD OF DIRECTORS OFFICERS Craig S. Mader, Chair Crofton, MD Richard M. Rankin, CIC, Vice Chair Lancaster, PA
MEMBERS Gregory H. Bennett
Sarah M. Brown, CIC, CRM, AFIS Shrewsbury, PA E. Stephen Burnett, CIC, ARM Wilmington, DE
Now is the time for reflection and introspection. What are the takeaways from the past year? What worked, and what didn’t? What do we want to keep? And what can we not wait to do away with?
N. Lee Dotson, CIC, AAI
Wilmington, DE
Andrew Enders, Esq.
Harrisburg, PA
Len Gieseler, LUTCF
Pottstown, PA
G. Greg Gunn, CIC
Lemoyne, PA
Remote work is prime example for consideration. The pandemic forced many independent agency staff to telecommute for the first time, but should that work environment and those processes continue to be incorporated into our operations, at least in part? Turn to this month’s feature article to find considerations for remote hiring.
Bryan C. Hanes, JD
Hagerstown, MD
Jason R. Hess
Coraopolis, PA
Lisa A. Leach Goth, CIC
New Bethlehem, PA
Christopher J. Miller, CIC
Jonestown, PA
As we all pick up the pieces and determine our path forward, I encourage you to rely on IA&B. Your agents’ association is committed to providing the resources and support necessary for whatever your new normal becomes.
William H. Purdy
Sunbury, PA
Jason Rodriguez
Wilmington, DE
D. Bradley Rosenkilde Jr.
Hunt Valley, MD
Tara S. Silfies, CPCU
Bethlehem, PA
I wish you and yours a belated Happy New Year! I hope you are ready to work your plans for 2021, to go forward with great confidence, and to grow your businesses.
Robert L. Smyrl Jr., CIC
Hatfield, PA
Michael A. Papa, CIC, MBA Hunt Valley, MD
J. Marshall Wolff, CIC, CPCU Easton, PA
NATIONAL DIRECTORS
Respectfully,
Michael P. Ertel Sr. (PIA) Columbia, MD G. Greg Gunn, CIC (IIABA) Lemoyne, PA
Craig S. Mader Chair of the Board
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Bel Air, MD
FEBRUARY 2021
Diane Hornung Hanby (IIABA) Wilmington, DE
DON'S DISCUSSION
DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus
Are you a member with a question? Contact Don to find the answer at 800-998-9644, ext. 603 or DonB@IABforME.com.
QUESTION:
Is there an age at which licensed producers become totally exempt from the requirement to take continuing education (CE) in order to renew their license?
AN SW E R :
While the statutes and regulations governing CE requirements vary for Pennsylvania, Maryland, and Delaware, the good news is each state provides at least some degree of exemption or credit for the seasoned producer.
DELAWARE
MARYLAND
General requirement: Resident licensees are required to complete 24 credit hours during each 24-month licensing period.
General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period.
Exemption/credit: A licensee who has been continuously licensed for 25 years or longer prior to the start of their licensing period, or who holds an approved professional designation, shall receive an automatic 12 credits in each biennium. Of note, the 12 automatic credits cannot be applied to fulfill any applicable flood (2 hours), ethics (3 hours), or long-term care (3 hours) CE requirement. Applicable statutes/regulations: 18 DE Admin. Code 504, at Section 8.0 – Licensee’s Responsibility (specifically at subsection 8.3 – Automatic Credit)
PENNSYLVANIA General requirement: Licensees are required to complete 24 credit hours during each 24-month licensing period. “Grandfathering” exemption: A licensee who was licensed prior to Jan. 1, 1971, and who has been continuously licensed for all lines of authority since that time, is exempt from CE requirements. If the licensee adds a line of authority, the exemption becomes inapplicable.
Exemption/credit: If a licensee has held a license for 25 or more consecutive years as of Oct. 1, 2008, the licensee shall only be required to complete 8 hours of CE in each renewal period. Of note, If you qualify for the above exemption, you’re still required to meet the flood (2 hours), ethics (3 hours), or long-term care (2 hours) CE requirement, if applicable. “Grandfathering” exemption: In addition, per MIA Producer Bulletin 13-07, licensees who were age 70 and older as of April 30, 2013 are exempt from the general CE requirements. However, if you qualify for the “grandfathering” exemption, you’re still required to meet the flood (2 hours) and long-term care (2 hours) CE requirements, if applicable. Applicable statutes/regulations: MD Ins. Code Section 10-116 (specifically at subsection 10-116(a)(3)(iii); Code of Maryland Regulations (COMAR) Section 31.03.02.03 (specifically at subsection B); Maryland Insurance Administration Producer Bulletin 13-07 (specifically at subsection II)
Applicable statutes/regulations: 40 P.S. Section 310.8 (specifically subsection 310.8(c)(1) This document is not a legal opinion and should not be relied upon as such. The intent of this document is to provide a general background regarding the topic or topics discussed, not to provide legal advice. Producers and agencies should consult an attorney regarding specific situations and specific questions with respect to the topic or topics covered in this document. Neither the Insurance Agents & Brokers nor any of its employees shall be responsible for any errors or omissions regarding any statements made in this document, nor any errors or omissions regarding any statutes, regulations, court rules, and/or any other government documents cited in this document
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COVERAGE CORNER
COVERAGE CONCEPTS: LESSONS FROM A LEGEND By Kevin C. Amrhein, CIC I miss Jim. Exactly three years ago from the day I wrote the draft of this article, Jim Harrison – my friend and long-time mentor – passed away. The void his passing has left in the business of insurance education, dare I say the business of insurance as a whole, remains formidable. Those who knew him best will attest to his not-silent frustration with the insurance industry and its representatives’ tendency to overcomplicate and jumble concepts that he believed were quite simple. His passion for deconstructing insurance policies made him an exemplary teacher and placed him among the most respected technicians in the industry. As I think of him now, I’m inspired to share with you an exchange we had many years ago from which I still benefit. While this discussion was specific to the ISO CGL, its concepts could be applied to any insurance policy.
THE SETUP I received an inquiry from an agent regarding the “contractual liability insurance” being requested from his
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insured and how such would be created by the ISO CGL. I pieced together an impressive email response, citing the definition of “insured contract,” the contractual liability exclusion, and its exception which could create coverage. I was so proud of my effort that I showed the email to Jim. After reading it he looked up at me and said … “It’s sh*t.” I slumped down in a chair by his desk, defeated. I knew he was right because he always was. But I had no clue why. I insisted on an answer. His two-point response, summarized below, will stick with me forever.
JIM’S FIRST POINT “Words matter. If it don’t say it, don’t say it.” The ISO CGL does not provide “contractual liability insurance.” It provides general liability insurance. While it may seem like semantics, this is a legal contract. Good
FEBRUARY 2021
COVERAGE CORNER lawyers live in big houses because they make piles of money shredding folks who use or rely on incorrect or misleading terms.
an exception to an exclusion doesn’t “create” coverage. Rather, it simply says that exclusion does not negate the coverage created in the Insuring Agreement.
JIM’S SECOND POINT
CONCLUSION
Only the Insuring Agreement “creates” coverage.
Jim Harrison believed that if more people mastered fundamentals such as those recollected here – exercising caution with their words and respecting the structure of the policy – most claims disputes and resulting litigation would not occur. Regardless of their age, experience, or position, he respected and adored those who possessed a true eagerness to learn. If the lessons in this article stick with you as they have with me, then I know somewhere the old Texan is pleased.
When researching my response, I made the common error of starting in the middle – going straight to exclusions and exceptions, the latter of which I thought created coverage. According to Jim, my response was flawed for two reasons: 1. I neglected any mention of the Insuring Agreement, and 2. I referred to an exclusion’s exception as a “creation” of coverage. First, overlooking a policy’s Insuring Agreement was a HUGE issue with Jim. He often shared his frustration when he would receive coverage inquiries from people whom he believed did not first read the full policy in its logical order. “If the Insuring Agreement precedes the exclusions, then it does so for a reason,” he said. Second, he believed that the Insuring Agreement is the only part of the policy that “creates” coverage. He disliked when people would say an exception to an exclusion “created” coverage and thought that agents who spoke that way were setting up their insureds for failure. As an example, he cited a case he worked on where the insured was a subcontractor who signed a contract agreeing among other things to pay claims of his own faulty workmanship if filed against the GC. A review of the CGL’s contractual liability exclusion and its exception for an “insured contract” led the insured to assume that the policy covered claims of faulty workmanship because the CGL’s contractual liability exclusion didn’t apply. Thus, the insured assumed the exception to this exclusion “created” coverage for any liability assumed in a contract. Jim believed a better understanding of the policy’s Insuring Agreement would have prevented this insured from reaching that incorrect conclusion. Jim pointed out that (in summary) the CGL’s Part A Insuring Agreement covers claims of BI or PD “to which this insurance applies.” For an insured, agent, or anyone to imply that an exception to an exclusion (in this example, contractual liability) “creates” coverage is misleading as it fails to consider other exclusions (in this example, faulty workmanship) which make this insurance not applicable. In other words,
That’s all for now. Until the next round … cheers! Kevin C Amrhein, CIC, is IA&B‘s education consultant. He works with our CISR and CIC programs, as well as our special topic seminars and live webinars. Catch him at one of our upcoming professional training offerings: IABforME.com/education.
WELCOME NEW MEMBERS
NEW PARTNERS
The Paterson Agency, LLC Huntingdon, PA
Kemper Auto
Stennett Insurance & Financial LLC Bellefonte, PA
Narragansett Bay Insurance Company
Kathy Barry Agency LLC Robesonia, PA Have a question about your member benefits? Contact: Tim Wonder, VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com
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NEWS & NOTES IA&B SCHOLARSHIP WINNERS
GET TO KNOW METLIFE
Congratulations to IA&B’s winter 2021 insurance education scholarship recipients! In total, IA&B distributed nearly $6,000 in scholarship funds to the following individuals and member agencies.
Pennsylvania member agencies: Learn how you and your clients could benefit from MetLife and Independent Market Solutions (IMS) – a market access solution to fit a wide range of needs for independent agencies.
FULL CIC SCHOLARSHIP
CIC INSTITUTE SCHOLARSHIPS
Kimberly Altland AAdvantage Insurance Group York, PA
R.C. Chase Insurance Agency Erie, PA
FULL CISR SCHOLARSHIP Kate Dawson Ferri Dawson Insurance Group Murrysville, PA LICENSING EXAM PREP SCHOLARSHIPS Sabrina Jessie Reynolds Insurance Agency Libertytown, MD Jennifer Flockerzi Burns and Burns Associates Inc. Mercer, PA
Blue Marsh Insurance Inc. Fleetwood, PA Raymond Insurance LLC Lock Haven, PA CISR SEMINAR SCHOLARSHIPS Newhart Insurance Agency Inc. West Pittston, PA Wasson Insurance Agency Inc. State College, PA
MetLife offers competitive commissions on auto, homeowners’, and personal liability policies through IMS. (Currently, MetLife is available to IA&B members in Pennsylvania through IMS.) Join IA&B and MetLife for a complimentary, members-only webinar: TUESDAY, FEB. 9 | 11-11:30 AM Register online at IABforME.com/ MetLife or call 800-998-9644, option 1.
LIVE CE WEBINAR SCHOLARSHIP Wasco Insurance, Dunmore PA
Candace Osburn Uniontown, PA Since the 2019 launch of this program, we have awarded approximately $19,000 in scholarships. The effort is part of our broader strategy to support the future of the independent agency system. Watch for details this spring about our next round of scholarships. IABforME.com/scholarships
HIRING IN 2021 WEBINAR Catch the recording of our Hiring in 2021 webinar at IABforME.com/WAHVE. The January presentation shares how your agency can benefit from Work At Home Vintage Experts (WAHVE). WAHVE matches “retired” insurance professionals who have remotework experience to meet your specific staffing needs. Independent insurance agencies across the nation have turned to WAHVE and rave about the results.
ABOUT IMS Access to markets should not prevent you from writing business. IA&B understands. That is why we joined with 14 state agent associations to develop IMS. With IMS, you will be the agency of record on all policies, and benefit from: ▲ No initiation or monthly fees ▲ Low to no volume commitments ▲ Standard commission rates ▲ 100% ownership of expirations
IMSaccess.com/states/pennsylvania Questions? Contact Tim Wonder 800-998-9644, ext. 351 TimW@IABforME.com
IABforME.com/WAHVE
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Q&A with
MICHAEL ERTEL, SR. Michael Ertel, Sr. is vice president of The Jacobs Company, an independent commercial insurance brokerage firm located in Columbia, MD. A former IA&B board member, Mike now represents our IA&B of Maryland members as a director with the National Association of Professional Insurance Agents (PIA National). Q. You first studied engineering before spending nearly your entire career with The Jacobs Company. What drew you to insurance industry, and what prompted you to stay? A. Most of my family was in the engineering field, and I attended an engineering high school, Poly in Baltimore. But as a freshman in college, I quickly realized that I really wanted to do something business oriented and eventually majored in finance. While finance is somewhat open ended, I never thought I’d be in insurance sales. I don’t think that universities necessarily do a good job of presenting how important insurance is and how it fits into the business world. In the end, I’m happy for my engineering background – it gave me a better understanding of the construction and contractor trades. Q. Contractors make up much of your book of business. How has that market changed over the years, and what challenges and opportunities do you foresee? A. The contracting side of insurance has become much more competitive and service oriented since I originally
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joined the business. We spend more time helping our clients with risk management, workers’ comp mods, return-to-work programs, and safety awareness and training. There seem to be more carriers that will write contractors, but that has fueled the constant pressure to keep pricing low. We also see more red tape with some of the certificate-compliance services demanding more revisions and endorsements to certificates. Q. What has your time serving as a director with one of IA&B’s national affiliates (PIA National) taught you about our industry? A. I’ve been the National Director for Maryland to the PIA National Board for about five years now. It’s been interesting to see the influence of insurance coverage in different states. Many agents in the Midwest are very involved in crop insurance, while agents from Florida and Louisiana are more focused on flood risks. There is even an agent who is concerned about earthquake coverage in states like Kentucky where you wouldn’t necessarily think about the risk. FEBRUARY 2021
Then there are my colleagues from Louisiana, Florida, and Puerto Rico who have experienced catastrophic claim situations in the last few years. You see their dedication and resilience and how they advocated for and went above and beyond to help their clients. It really drives home the importance of independent agents in the United States. Q. What’s the best professional advice you’ve ever received? A. Two things that I learned early: First, build your business acumen – be a valuable resource to your clients by knowing different aspects of business, not just insurance. Second, keep it simple. Boil down issues and make them easy to understand, especially in the age of more email communication. When training new employees, one of our struggles is for them to remember that clients aren’t waiting around for some complex email that they have to read several times to understand.
ON THE COVER Q. You’ve held several leadership roles within the Towson Communities Alliance. Tell us about this organization and why the work is important to you. A. Fortunately, in the insurance business I have had the ability to be flexible with my time. I’ve always had an interest in the politics of getting things done. Being a volunteer community leader, I’ve been able to help affect change in our town, from getting a new school built, to saving a community park, to fighting overly dense development. I like being involved at a community level, especially when you realize that if there weren’t talented people willing to help, some things would never get done. I’ve also built business relationships working with various other professionals in the organization. Q. We understand that you love sailing on the Chesapeake Bay. When did you learn to sail, and what kind of boat do you have? A. I grew up boating on the Chesapeake Bay, which is one of the most beautiful places in the country and right here in the tristate area. My grandfather started taking me crabbing and fishing when I was 7 or 8. When I was 13, my father bought a sailboat. I learned to sail, and it’s been a lifelong love.
®
In 2019, I purchased a newer Beneteau 32-foot sailboat in Barnegat, N.J. We had to bring it down the Atlantic, up the Delaware River, and through the C&D Canal to the Chesapeake. It was a very cool experience. There are about 2.3 million people living in the Baltimore metro area, but you can go out on the bay some days or nights, and you’ll literally see eight other boats. It is like your own little world. It has also been fun to watch my kids grow up boating on the Chesapeake.
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YOUR REMOTE HIRING PLAN By Sharon Emek, Ph.D., CIC
In-house hiring practices don’t often translate to hiring employees that will work remotely. What modifications do you need to make to 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.
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FEBRUARY 2021
FEATURE 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 Zapiercommissioned 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.
BUT FIRST, SOFT SKILLS 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 your ideal candidate may have temporary distractions due to COVID-19 mitigation efforts. 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?
EXPAND YOUR HIRING HORIZONS Are you tired of staff turnover? Learn how Work At Home Vintage Experts (WAHVE) can help. Founded by article author Sharon Emek, WAHVE matches “retired” insurance professionals who have remote-work experience to meet your specific staffing needs. Plus, as an IA&B member or partner, you receive a 50% discount on the one-time setup fee. Have questions or want to get started? Contact: Bill Hunt, WAHVE 646-807-4372, ext. 3757 bill.hunt@wahve.com
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IDENTIFYING THE SELF-STARTERS
One suggestion 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.
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: inclass 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?
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.
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, 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
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.
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FEBRUARY FEBRUARY 2021 2021
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, is founder and CEO of Work At Home Vintage Experts (WAHVE). WAHVE (www.wahve.com) is an innovative contract talent solution that matches retiring, experienced insurance, accounting, and human resource career professionals with a company’s talent needs. WAHVE bridges the gap between an employer’s need for highly skilled professional talent and seasoned professionals desiring to extending their career working from home. From screening to placement, WAHVE is a comprehensive solution to qualifying, hiring, and managing experienced remote talent.
Thank You Thanks to these partners for supporting the independent agent network.
PLATINUM PARTNERS Acuity Erie Insurance Insurance Agents & Brokers Service Group Inc. The Main Street America Group Millers Mutual Group Nationwide
IA&B works on your behalf to ensure that state legislators and regulators understand the issues affecting agents. And your financial support amplifies your message.
Please consider contributing. More information at IABforME.com/AgentPAC
Penn National Insurance Plymouth Rock Assurance BECOME A PARTNER TODAY Interested in becoming a partner? Reach out today. Tim Wonder IA&B VP-Membership 800-998-9644, ext. 351 TimW@IABforME.com 13
NEW HIRES: WHAT’S THEIR E&O LOSS PREVENTION CULTURE? By Curtis M. Pearsall, CPCU, AIAF, CPIA Virtually every agency is dealing with the need to bring on new staff. This could be due to some staff retirements or staff that left the agency for one of many reasons. As new staff join your agency, there is definitely a need to provide them with training on such items as your agency system, your procedures, the carriers, and the details of the job responsibilities. Obviously, the goal is to get the new staff member up to speed as quickly as possible so they can begin to contribute. One area that may not get the attention it deserves is E&O loss prevention. If the new staff member has some insurance experience, it may be assumed that they understand what E&O is all about and what is necessary to minimize the potential for E&O claims to occur. Quite honestly, this is a dangerous assumption
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to make. Just because they worked in another agency does not mean that E&O was understood and valued to the level that your agency does. In addition, if they are a “rookie” in the business, there is a good chance they are completely unfamiliar with the concept of E&O and, thus, uneducated on the key issues that drive a strong E&O loss prevention culture. As your agency experiences the anticipated turnover, ensuring that these new hires get the proper E&O education and guidance becomes even more vital. Without question, your firm’s E&O loss prevention culture will be heavily influenced by the level of E&O training these new staff received upon joining your agency. Items to consider include:
FEBRUARY 2021
E&O LOSS PREVENTION PROVIDE AN E&O OVERVIEW
AUDIT THE NEW STAFF
As new staff are brought on, it would be beneficial for the agency to dedicate some time on the subject of E&O and emphasize that, by adhering to various best practices, E&O claims can be avoided. Depending on the size and structure of the agency, consider having each respective department manager (Personal Lines, Commercial Lines, Benefits, etc.) provide the new staff with the necessary information. Share details of the expected procedures, as it is possible that your agency has different expectations than the new staff’s prior employer.
It is suggested to perform some extensive auditing of the new staff to determine if they are meeting the agency’s expectations. The quicker any issues are identified, the quicker that further training can be provided. Bottom line, dedicate time early on to provide your new employees with a solid overview of your E&O loss prevention culture. This will play a key role in ensuring a bright future for your agency.
Then periodically (preferably monthly), meet with the new staff to give them a refresher on E&O overall or possibly specific issues such as documentation, managing workloads, exposure analysis, etc. While the issue of “document, document, document” has been part of the E&O loss prevention mantra for years, don’t assume your new staff fully understand the value of a high level of documentation. Share your agency’s expectations for documentation with the new staff.
CONTACT YOUR AGENTS’ ASSOCIATION OR E&O CARRIER Both of these organizations probably have resources, articles, and educational seminars they can provide (some may be for a fee) to get the new employee “up to speed.”
Curtis M. Pearsall, CPCU, AIAF, CPIA is president of Pearsall Associates, Inc. and consultant to the Utica National E&O Program. Utica National is one of the established carriers with which the IA&B licensed insurance team works to secure top-quality coverage. Find out if your agency qualifies for one of our highly valued, member insurance programs by contacting us at 800-998-9644, option 3. This information is provided solely as an insurance riskmanagement tool. Utica Mutual Insurance Company and the other member insurance companies of the Utica National Insurance Group (“Utica National”) are not providing legal advice, or any other professional services. Utica National shall have no liability to any person or entity with respect to any loss or damages alleged to have been caused, directly or indirectly, by the use of the information provided. You are encouraged to consult an attorney or other professional for advice on these issues. ©2020 Utica Mutual Insurance Company
ADD E&O DISCUSSION TO STAFF MEETINGS The more your new staff hear about E&O loss prevention, the more they will understand it and be committed to the cause. In staff meetings, address issues such as the finer points of specific coverages or how to handle various inquiries from customers.
EXPLAIN YOUR AGENCY SYSTEM Consistency is a key word when dealing with E&O. This means that there is a common way that various procedures are performed within the agency. Even if you hire a new employee that has knowledge of your agency system, it is important to understand that your agency might use the system differently than how the staff member used the system at their previous employer. This is where having a written procedures manual that details the use of the system will play a vital role.
AGENT’S E&O SEMINARS Teach new employees – and remind more seasoned staff members – how to reduce your agency’s E&O risk. In addition to CE credits, the following seminars are approved for loss-control credit for Utica policyholders in PA, MD, and DE, plus Allianz and Westport policyholders in PA and DE. Agent’s E&O: Duties, Operations, Checklists, & More Feb. 11 | 9 AM - Noon Agent’s E&O: Documentation, Social Media, Cyber, & More March 18 | 9 AM - Noon Register: IABforME.com/education 800-998-9644, option 1
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PICS & POSTS
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FEBRUARY 2021
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PRIMARY AGENT Editor: Karen Robison KarenR@IABforME.com 800-998-9644, ext. 606
Contributing editors: Jennifer Ross Megan Fioretta Melissa Telesha
Sales Account Executive: Laura Gaenzle laura.gaenzle@theygsgroup.com, 717-430-2351
T R A I N I N G & E D U C AT I O N
UPCOMING WEBINARS FEBRUARY 2021
CLASSROOM EDUCATION
U P D A T E
When public health conditions improve, we will offer classroom courses. We hope to begin offering classes in Mechanicsburg, PA during the second half of the year, and then expand to facilities throughout the region. We will keep you updated. For all 2021 classes, go to IABforME.com/education.
Connect with Other Agents & Get CE Credits Online Register today! 800-998-9644, option 1 IABforME.com/OnlineTraining DATE
TOPIC
TIME
Feb 2
CISR Personal Residential
8AM - 4PM
Feb 2
Social Security & Medicare
1 PM - 4 PM
Feb 3
Insurance for the Commercial Tenant
2 PM - 3 PM
Feb 4
CISR Personal Auto
8AM - 4PM
Feb 9-10 CIC Agency Management Institute
8AM - 5PM
Feb 9
Personal Lines Coverage Concerns
9AM - Noon
Feb 9
Flood Insurance and the NFIP
1 PM - 4 PM
Feb 10
Homeowners Loss Settlement Issues
2 PM - 3 PM
Feb 11
Agent's E&O: Duties, Operations, Checklists 9AM - Noon
Feb 11
Homeowners: Tales of Claims & Coverage
1 PM - 4 PM
Feb 16
Additional Insureds and Certificates
9AM - Noon
Feb 16
Contracts Agents Should Read
1 PM - 4 PM
Feb 16
CISR Agency Operations
8AM - 4PM
Feb 17-18 CIC Commercial Multiline Institute
8AM - 5PM
• You will be the agency of record on all policies
Feb 18
CISR Commercial Property
8AM - 4PM
• No initiation or monthly fees
Feb 23
CISR Elements of Risk Management
8AM - 4PM
• Standard commission rates
Feb 23
Insurance Jeopardy! Pers. & Comm. Lines
9AM - Noon
• 100% ownership of expirations
Feb 23
Ethics Essentials for Insurance Producers
1 PM - 4 PM
• A broad mix of standard and niche markets that are state specific
Feb 24
Valuation of Custom Cars & Tricked-Out Trucks 2 PM - 3 PM
Feb 25
Insuring Commercial Transportation
9AM - Noon
Feb 25
Insurance Solutions for the Long-Term
1PM - 4PM
Feb 25
CISR Miscellaneous Personal Lines
8AM - 4PM
IA&B MEMBERSHIP MEANS
MARKET ACCESS
• Low to no volume commitments
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Contact Tim Wonder, VP - Membership TimW@IABforME.com • 800-998-9644, ext. 351
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TAKE FULL ADVANTAGE OF YOUR MEMBERSHIP Our goal is to save you time and money. LEGAL & COMPLIANCE - #1 Most Used Member Resource Have questions regarding carrier or coverage issues, agency management, or compliance? Save time (and frustration) by contacting IA&B’s Claire and Don.
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