Primary Agent - May 2024

MAY 2024

IA&B MEMBER

MICHAEL GAETANO

ON INTERNAL AGENCY PERPETUATION

EXCLUSIVE MEMBER MAGAZINE

ALSO INSIDE PERFORMANCE MANAGEMENT STRATEGIES

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CONTENTS

MAY 2024

FEATURED 8

Q&A WITH MICHAEL GAETANO Mike Gaetano, president of The Hartman Group, discusses his commitment to internal perpetuation.

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>>>>>

MAKING THE GRADE IN PERFORMANCE MANAGING Karen DiGioia – of Herbein HR Consulting, IA&B’s contracted human resources firm – looks beyond annual reviews for effective performance management strategies.

MONTHLY JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B YouTube.com/@IA_and_B IA&B Podcasts can be found at:

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, 650 Wilson Lane, Suite 200, Mechanicsburg, PA 17055.

Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2024-05, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B. Copyright 2024. 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.

2 CHAIR'S MESSAGE 3 DON'S DISCUSSION 4 COVERAGE CORNER 6 NEWS & NOTES 15 WOMEN'S CONFERENCE RECAP 17 UPCOMING EDUCATION VISION A thriving independent insurance agent community.

MISSION STATEMENT To serve as a driving force to champion independent agency success by educating, consulting, advocating, and fostering community in Pennsylvania, Maryland, Delaware, and beyond.

IABforME.com |

1

CHAIR'S MESSAGE

FILLING THE GAP IN THE LABOR MARKET “No one wants to work anymore” is a saying I often hear when speaking with employers. I’ve read a few articles that challenged the “want” part of that sentiment. These pieces look at where employees have gone, and it turns out, there just aren’t enough workers out there. There has been a mass exodus of the labor force since COVID-19, and that wave of retiring Baby Boomers that we’ve heard about for years is now crashing on our shores. Simply put, as a society, we can’t replace lost workers fast enough.

Whether no one wants to work or there just isn’t enough talent out there, the labor shortage is real. If you’re struggling to replace, retain, or attract new talent (and who isn’t), this issue is a must-read for you. Our HR Consultant Karen DiGioia has a feature article on employee performance management. Also, check out the interview with Mike Gaetano, of The Hartman Group, who shares his strategies for successful employee recruitment and retention.

In addition, the staff and board of IA&B are tuned into these challenges and are actively doing something about it. We’re well on our way to the creation of an insurance school to attract and train new agency staff. After several focus groups with agents (thank you if you participated!) and carrier partners (thank you for your contributions), the board approved the business plan for our school. We expect to have the first class start at the beginning of 2025. Then, later next year, our first batch of graduates will begin to fill the gap in the independent insurance agency labor market! Stay tuned for more details in the months ahead.

Until next time,

INSURANCE AGENTS & BROKERS 650 Wilson Lane, Suite 200 Mechanicsburg, PA 17055 191 Main Street, Annapolis, MD 21401 800-998-9644 | IABforME.com

IA&B BOARD OF DIRECTORS OFFICERS Sarah Brown, CIC, CRM, AFIS - Chair Keller Brown Insurance Services | Shrewsbury, PA Andrew Enders, Esq. - Vice Chair Enders | Harrisburg, PA

MEMBERS Lisa Parry Becker, CPIA

Bill Purdy

Greg Bennett

Kent Reynolds, CIC

Kate Dawson, CPIA

David Rivell, CIC, CRM

Len Gieseler, LUTCF

Jason Rodriguez, CIC

Bruce D. Kraft, AAI, CIC

Donna Roper

Debra McAfee

Candace Shoupe, AAI, AIC

Shayne McIntosh, CIC

Bob Smyrl, CIC

JPI Insurance Associates Dillsburg, PA

Robert L. Smyrl, Inc. Hatfield, PA

Chris Miller, CIC

Michael Thomas

Parry Insurance Langhorne, PA

Famous & Spang Associates Aberdeen, MD Ferri Dawson Insurance Murrysville, PA Evans Hauseman & Richard, Inc. Pottstown, PA Arbor Insurance Group Allentown, PA

McAfee Insurance Agency, LLC Wilmington, DE

Miller Insurance Protection Team Jonestown, PA

Purdy Insurance Agency, Inc. Sunbury, PA Blue Ridge Risk Partners LLC Hagerstown, MD Element Risk Management West Chester, PA Prominent Insurance Svcs Wilmington, DE E K McConkey & Company York, PA CBM Insurance Agency New Castle, DE

Lighthouse Insurance Svcs Gambrills, MD

Michael Papa, CIC, MBA Diversified Insurance Industries, Inc. Hunt Valley, MD

Sarah Brown, CIC, CRM, AFIS Chair of the Board

NATIONAL DIRECTORS Mike Ertel (PIA) The Jacobs Company | Columbia, MD Diana Hornung, CIC (IIABA) IOA National, Inc. | Wilmington, DE Mark Monroe (IIABA) Griffith Insurance, LLP | West Chester, PA

2

MAY 2024

DON'S DISCUSSION

DON'S DISCUSSION IA&B Legal & Corporate Affairs Director Don Bankus

Are you a member with a question?

Contact Don at 717-918-9204 or DonB@IABforME.com.

QUESTION: Is an email disclaimer required by law?

ANSWER: While it’s prudent (from an E&O perspective) to include language on agency emails proactively notifying recipients that coverage can’t be modified, or a claim submitted, via email, use of such a disclaimer is not required by law.

IF IT’S NOT REQUIRED BY LAW, WHAT ARE THE BENEFITS OF USING AN EMAIL DISCLAIMER? Some of the benefits include: ▲ As a part and parcel of interacting with your customers, an email disclaimer expressly puts an insured on notice that they cannot and should not rely on the fact that if they send you an email requesting a coverage change, or notifying the agency of a claim, such a request or notification will be processed by the agency simply because the insured pushed the send button and sent you an email; and ▲ Using an email disclaimer represents a risk management technique your agency can use to control or minimize E&O exposures associated with electronic communications, and should be utilized in conjunction with other related risk management techniques, including email filtering and implementing an agencywide email policy.

CAN YOU GIVE AN EXAMPLE OF AN EMAIL DISCLAIMER? The following represents a sample of commonly used email disclaimer language: A coverage modification or claim submitted via email will not be considered reported until such time as our agency acknowledges receipt of the request/information, and confirms with you that the coverage modification or claim has been processed and submitted to the insurance company.

IABforME.com |

While use of an email disclaimer doesn’t represent a silver bullet against an E&O claim or dispute, it’s (1) a simple measure to employ; (2) represents one more line of defense in an increasingly litigious world; and (3) comes at a very affordable price – $0.00.

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.

Also available in audio format

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3

HORIZONTAL OR VERTICAL – NOT JUST A GEOMETRY QUESTION!

By Cathy Trischan What do geometry and insurance have in common? The answer is that understanding horizontal vs. vertical is important in both!

Imagine that your insured subcontractor has just signed a contract agreeing to provide $5,000,000 commercial general liability (CGL) coverage and to include the general contractor as additional insured. Furthermore, coverage for the general contractor needs to apply on a primary and noncontributory basis. This is easy enough to do on the subcontractor’s CGL policy. Insurance Services Office (ISO) has a number of additional insured endorsements and a 4

Primary And Noncontributory – Other Insurance Condition (CG 20 01 12 19) endorsement that can be added. The problem is getting the $5,000,000 CGL limit. Most insurers do not offer a $5,000,000 policy, and the subcontractor is likely carrying a $1,000,000 or $2,000,000 CGL with an umbrella or excess liability policy to make up the difference. Many contracts allow one to meet the limits requirement with a combination of policies.

While primary and noncontributory language has been added to the subcontractor’s CGL, the subcontractor’s umbrella, like most, states that its coverage is excess MAY 2024

over and shall not contribute with any other insurance. To complicate matters, the general contractor’s CGL states it is excess, but only to the subcontractor’s primary insurance to which it has been added as additional insured. The general contractor’s CGL does not make itself excess to the subcontractor’s umbrella because the subcontractor’s umbrella is not primary insurance. So which policy should pay after the subcontractor’s CGL – subcontractor’s umbrella or general contractor’s CGL? Courts in states that have addressed this issue using standard CGL and umbrella/excess liability

COVERAGE CORNER language, have produced two basic interpretations. Here is where the geometry comes in.

Horizontal exhaustion of limits – With this approach, the subcontractor’s CGL pays first, then the general contractor’s CGL, then the umbrella policies. This interpretation is supported by the other insurance clauses in the CGL and most umbrellas but does not reflect the intent of the parties as expressed in the contract.

Vertical exhaustion of limits – With this approach, the subcontractor’s CGL pays first, then the subcontractor’s umbrella, then the general contractor’s policies. This interpretation reflects the intent of the parties but is not supported by the other insurance clauses in the CGL and most umbrellas.

To solve this problem and to ensure that a vertical exhaustion of limits approach is applied, many general contractors and other additional insureds demand that primary and noncontributory language be added to umbrella and excess liability policies as well as to the CGL. Many insurers have their own endorsements to do this, but ISO did not have standard forms that could be used by insurers who hadn’t created their own forms. Not until recently, that is!

ISO introduced endorsements for use on its umbrella and excess liability policies. The title is Noncontributory And Order Of Response – Other Insurance Condition. The umbrella form number is CU 24 77 12 23, and the excess liability form number is CX 24 32 12 23. Both do the same thing. If the named insured has agreed in writing in a contract or

agreement that its coverage will apply before any other insurance available to the scheduled additional insured and not seek contribution from such insurance, then the named insured’s policy will do just that. It will provide coverage that is primary and noncontributory to any policy on which the additional insured is a named insured. Going back to our general contractor and subcontractor, the subcontractor’s umbrella now provides coverage for the general contractor that is primary and noncontributory to the general contractor’s own CGL. There is one more step to make sure all works as intended. Recall that the general contractor’s CGL only made itself excess to any other primary insurance to which the general contractor was added as additional insured. ISO has introduced a CGL endorsement to remedy this, Excess Insurance Provision – Order Of Response – When You Are An Additional Insured On Other Insurance (CG 24 56 12 23.) Adding this endorsement to the general contractor’s CGL now makes that CGL excess over any other insurance for which the general contractor has been added as additional insured. In other words, the general contractor’s CGL is excess over the subcontractor’s umbrella.

These ISO endorsements are a welcome relief for insureds who have agreed to provide primary and noncontributory coverage on umbrella or excess liability policies, but whose insurers had not created endorsements to do that. These forms ensure that vertical exhaustion will apply.

Now that this problem is solved – geometry anyone?

IABforME.com |

Til next time!

Cathy Trischan, CPCU, CRM, CIC, ARM, AU, AAI, CRIS, MLIS, TRIP is IA&B’s commercial lines education consultant. She works with our CIC and CISR programs, as well as our live CE webinars. Catch her at one of our upcoming courses: IABforME.com/education

Also available in audio format

LIVE CE WEBINAR

|

Learn more from author Cathy Trischan during this upcoming webinar. She’ll review issues faced by insurance professionals when they issue certificates of insurance.

CERTIFICATES OF INSURANCE – HEADACHES AND REMEDIES JUNE 18 11 AM-Noon

CE

PA/DE: 1 GEN MD: 1 PC

IA&B Members: $25 (save $30!)

Non-Members: $55

Register today.

IABforME.com 800-998-9644, option 1

5

NEWS & NOTES

INSURANCE EDUCATION SCHOLARSHIP APPLICATIONS

INROADS ON INDUSTRY RECRUITMENT

Apply for the next round of insurance education scholarships. IA&B will award two individuals with full designation scholarships – one for a CIC designation and another for a CISR designation. Plus, member agencies will receive scholarships to send an employee to a CIC course, CISR course, or CE webinar. Scholarships to attend licensing study courses are available throughout the year.

IA&B had a strong presence at this spring’s Pennsylvania Future Business Leaders of America (FBLA) State Leadership Conference, which brought together 5,500 high school students and their advisors. IA&B Service Group Vice Chair Andrew Enders, Esq. presented a breakout workshop, where he discussed auto insurance and touted insurance careers. Additionally, IA&B staff set up a booth and had countless conversations with students about the independent agent career (and lifestyle!).

IA&B introduced the insurance education scholarship program in late 2018 to support the future of the independent agency system. The scholarship program aims to develop new talent and support existing agency staff through insurance education. Each year, IA&B awards about $10,000 in scholarships.

Applications are available online: IABforME.online/ scholarships Questions? Contact IA&B Admin Assistant Sarah Haas at SarahJ@IABforME.com | 800-998-9644, ext. 104

“My AgentPAC contribution ensures my voice is heard.

And it’s vital that our issues are represented.”

- Sarah Brown,President & CEO Keller Brown Insurance Services Shrewsbury, PA

IA&B works on your behalf to ensure that legislators and regulators understand the issues affecting agents.

Contribute today at IABforME.com/political_advocacy 6

IA&B SCHOLARSHIP SUPPORT Thank you to the Central PA Users Group (Applied Systems users helping users) for the generous donation to the IA&B Insurance Education Scholarship program again this year.

We sincerely appreciate your support!

Pictured: Officers of the Central PA Users Group; front row (left to right) Gina Kratovil, Laraine Wuchter, Patti Brookens; back row (left to right) Laura Bankos Kury, Jen Buch, Joshua Troup MAY 2024

Q&A with

MICHAEL GAETANO Mike Gaetano is president of The Hartman Group, an independent agency with offices in Williamsport, PA and State College, PA. Q. How did you get your start in the insurance industry, and how did your career progress?

A. I graduated from the University of Scranton in 1981 with a bachelor’s degree in business management and started my career at Aetna as a surety bond representative in Harrisburg, PA. I came to Hartman in 1988 as a bond specialist and learned the P&C side and have served as agency president since 2002.

Community is an important part of my career, and we emphasize community service at Hartman, leading to my service on numerous boards including a term as chair of the Williamsport Lycoming Chamber of Commerce.

Q. Tell us about the changes you’ve seen in the independent agency system over the years – the good, the bad, and the ugly!

A. The good – the evolution from being sales based to consultancy based. Agents now become a key part of the client’s “team” and contribute to their success.

The bad – the emergence of modeling as a predominant underwriting strategy and less reliance on field and character underwriting.

The ugly – inadequate investment into agency perpetuation has created a path of least resistance, in favor of M&A, relative to internal perpetuation.

8

Q. Your agency has received many accolades, including its recent distinction as a Best Practices Agency. To what do you attribute this success?

A. Hard work, knowledge, and integrity. We build around these attributes as our core. In today’s business climate, we believe that organized strategic planning is essential.

And we execute the plan. We owe our success at Hartman to our team. I’ve had incredible partners … two who have been beside me for over 25 years and are like brothers (well, one is my brother), two in their 40s, and two in their 30s. Leadership matters. Lastly, you need great employees, and we are absolutely blessed in that respect.

Q. Your agency has taken a proactive and deliberate approach to perpetuation planning. Tell us about the process.

A. We committed early in the process to remain independent as we perpetuate the company we have built. The only way to successfully accomplish this is to identify excellent young people with leadership potential and feverishly mentor them. Our planning meetings focus heavily on human resources and culture, and how to perpetuate our approach to business. The financial/ ownership structure of the insurance agency system has changed drastically over the last several years. Agencies must have a commitment and willingness to invest in the independent system and need the support of the insurance carriers.

MAY 2024

ON THE COVER Q. What advice would you offer to the leadership at other independent agencies based on your own perpetuationplanning experience?

A. Don’t give up. It is heavy lifting, but if your objective is to be a better company for your clients, your employees, and your communities, make perpetuation a keystone priority. We have found this to be the hardest part of our strategic planning, but you can do it.

Q. The Hartman Agency has several young agents in its ranks. What strategies have you found most valuable for employee recruitment and retention?

A. We “prospect” for human resources constantly, in a manner that is similar to prospecting for new business. We are continually involved with our community, and we meet individuals that display interest, or personality traits, that could serve our industry; and then we talk with them.

After someone joins our team, we mentor them and include them fully in our focus on creating value. We believe our level of engagement with our employees, and then extended into the community, are key factors in creating a meaningful workplace.

Q. When you’re not working, how do you enjoy spending your time?

A. I enjoy reading, exercising daily, watching Penn State wrestling, and spending time with my six grandchildren. I am very fortunate that my three children decided to stay in the Williamsport area to raise their families, so they keep my wife and me hopping.

EDUCATION

ADVOCACY

RESOURCES

8 G R E AT M E M B E R B E N E F I T S 1) Legal & Compliance Resources 2) Classes & Online Training 3) Marketing, Branding & Websites 4) Political Advocacy 5) HR & Hiring Solutions 6) Insurance for Your Agency 7 ) Industry News 8) Market Access & Carrier Relations QUESTIONS? CONTACT TIM WONDER, IA&B VP-MEMBERSHIP 717-918-9223 | TIMW@IABforME.COM

TIRED OF RECRUITING, HIRING, OR TURNOVER?

WAHVE is an innovative contract staffing solution that matches retiring professionals to fill your staffing needs.

The Hartman Group partners: (front row) Don Gaetano, Mike Gaetano, Mark Sitler, (back row) Markell Kunigus, Anthony DiNallo, Edward Pawlak, Todd Musheno IABforME.com |

Contact Bill Hunt at WAHVE today!

Bill.Hunt@wahve.com • 646-807-4372 ext. 3757 *Mention your IA&B membership for a discount on set-up fees.

9

PLATINUM PARTNER PROFILE

Insurance Agents & Brokers proudly recognizes Millers Mutual as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

Millers Mutual Insurance: Protecting Your Multifamily Housing Clients At Millers Mutual Insurance, we specialize in providing comprehensive property and casualty insurance solutions tailored specifically for multifamily housing.

With a deep understanding of the unique risks associated with this sector, we offer stability in both coverage and pricing, ensuring peace of mind for our agents and our mutual clients.

In the aftermath of the unforeseen, clients only want to hear one thing from their agent: “You’re covered.”

At Millers Mutual, we turn their worries into relief with dependable coverage. Contact us today to learn more about how Millers Mutual Insurance can provide your clients with the peace of mind you both deserve.

Target Customers Our target customers are investors in multifamily housing rental properties of four stories or fewer, valued at $5 million or less. Whether they own one property or several, we customize insurance solutions to meet their needs.

PRESIDENT & CHIEF EXECUTIVE OFFICER Jeffrey S. Pratt

President & CEO Message

CORPORATE HEADQUARTERS Harrisburg, PA A.M. BEST RATING A- (Excellent) WEBSITE MillersInsurance.com

Jeffrey S. Pratt President and CEO

TOLL FREE 1.800.745.4555 10 10

MAY 2024

We prioritize strong partnerships with independent agencies, offering exceptional property-driven insurance for commercial building owners across PA, DE, MD, NC, OH, VA, and D.C. By focusing our appetite, we maximize value for both our agents and customers.

Thank You Underwriting Appetite Our underwriting appetite covers a diverse range of multifamily housing needs.

We provide tailored insurance and risk management solutions for the following property types: • Rental Dwellings

Thanks to our PLATINUM PARTNERS for supporting the independent agent network.

Acuity

• Rowhomes • Apartment Buildings • Garden-Style Apartment Complexes • Mixed-Use Commercial Properties Furthermore, we offer insurance coverage for Affordable Housing and Off-Campus Student Housing properties. Our underwriters approach each policy with compassion and humility, blending human understanding with analytical insights to ensure our clients' unique needs are met.

Erie Insurance Keystone Millers Mutual Insurance Penn National Insurance

BECOME A PARTNER TODAY Interested in becoming a partner?

Reach out today.

Tim Wonder IA&B VP-Membership 717-918-9223 TimW@IABforME.com

2023 IABforME.com |

11

Making the Grade in Performance Managing

By Karen DiGioia, Herbein HR Consulting Ah, May! The sun’s out, the air’s warm, the unofficial beginning of summer is right around the corner. But wait, along with all those good vibes, there’s something else lurking in May. May isn’t just about sunshine, butterflies, and baseball – it’s also the month of (cue the scary music) FINAL EXAMS! Now I don’t know about you, but I am very thankful that my final exam days are behind me. No matter how prepared I was, stepping into that exam room always filled me with a sense of dread.

So, what’s the link between final exams and Human Resources? Those nerve-wracking final exams are not unlike the traditional annual review process in many workplaces. When I transitioned into the workforce, that same feeling of dread that I got during final exams followed me into my annual performance reviews. Odd, right? Even though I consistently got top ratings, those formal annual sit-downs felt awkward, forced, and uncomfortable, despite the positive feedback I got.

I’m guessing I’m not the only one who’s felt this way. So, what can we do about it? Let’s spend some time talking about performance management, what it should look like, and ways to make it valuable for all involved.

When doing some initial research for this article, I searched the internet for a definition of performance management. In answer to the question “What is performance management?” a University of Kansas website provided the following response: an ongoing, continuous process of communicating and clarifying job responsibilities, priorities, performance expectations, and development planning that optimizes an individual’s performance and aligns with organizational strategic goals.

12

Whew – that’s certainly a mouthful (and, in an English final might get flagged as a run-on sentence), but it’s a good definition and well worth taking the time to dissect to see what we can learn.

1 An ongoing, continuous process…

Performance management isn’t about a form or a once-ayear meeting. It’s about daily feedback – moments where you acknowledge a job well done or offer a gentle nudge in the right direction. Like watering a plant, consistent care leads to growth.

To provide a few examples, performance management is pausing to tell an employee, “I heard the way you explained that policy to Mrs. Smith. You made a complicated topic clear. Good job!” or “I know you don’t always have access to all the required information when you enter a new client into the system, and that can be frustrating. You’re probably not aware, but those incomplete files make it difficult for the next person who accesses that client and stalls our client onboarding process. Next time you start a new client record, how about making a list of the missing information, and following up with the producer to gather what is needed and get it into the system? Try to make this happen within 48 hours of initializing the file.”

In-the-moment feedback does two things. It reinforces desired behaviors (and increases the likelihood that they’ll be repeated), and in the case of performance that you want to see changed, it provides employees with the opportunity to adjust their approach before it becomes ingrained. By reinforcing the positive and remolding the negative, providing “ongoing and continuous” feedback regarding performance can help to maximize performance and avoid serious performance issues that may later be harder to change.

MAY 2024

PERFORMANCE MANAGEMENT

2 …of communicating and clarifying…

Communication isn’t about talking. It’s accomplished when a message is sent, received, and understood. It’s a dialogue, not a monologue. Communication allows for questions and seeks clarification. Managers need to keep the lines of communication open, providing regular feedback and making sure their team members understand what’s told to them. OK, so what are we communicating?

2a …job responsibilities and priorities, Performance management starts during the onboarding of new employees – setting the stage from day one.

It’s about sitting down with new hires, going over the job description, discussing the job responsibilities, the priorities, and importance of the job. Employees who have a solid understanding of what they are expected to do and how they fit into the agency structure are much more likely to do their job properly. It sounds obvious, but it’s surprising how frequently this doesn’t happen. In the absence of a clear understanding, employees are confused and flounder. Clear communication helps to avoid confusion and sets employees on the path to success.

At the risk of repeating myself, this communication isn’t “once and done.” New employees are absorbing a lot of information over the first days and months in a new job.

It’s good to sit down with new employees every month or so to check in on how things are going. A review of the job description each time will help to reinforce understanding and uncover any areas of the job where your new employee isn’t yet comfortable.

2b …performance expectations, Your conversation should not focus just on “what” gets done but also on the “how.” Setting clear standards and expectations ensures that everyone is on the same page.

For a CSR, one job responsibility detailed on the job description might be “responds to client phone calls and answers questions.” Performance expectations go beyond the “what” and talk about “how” this work should be done.

An employee who calls a client back a week after the initial call came in is technically meeting the job responsibility but probably isn’t meeting performance expectations. It’s important to clearly communicate the “how” in addition to the “what.” “At XYZ Agency, we pride ourselves on immediacy of service. We strive to return phone calls IABforME.com |

within two hours. Realizing that that’s not always possible, we set a maximum response time of 24 hours. If for some reason, this isn’t doable, let me know, and we’ll figure out a plan.”

3 …and development planning, Performance management isn’t just about the here and now, it’s also about planning for the future. What are your employee’s career aspirations? How can they expand and grow in their current position over time, and what can they and the agency do to make that happen?

Employees are hard to find. Retention of good employees relies, in part, on an organization’s ability to provide career growth and opportunity. Ensure that in your discussion about performance, you’re also talking with employees about ways they can grow and expand, both within their current role and through opportunities that may lie in the future. Investing in your team pays dividends down the road.

We’re about two-thirds of the way through our definition.

You may be thinking “This sounds like a lot of work.” And you’re not wrong. But here’s the thing: when done right, performance management benefits everyone, as we’ll see in the next section.

4 …that optimizes an individual’s performance and aligns with organizational strategic needs.

Employees who understand what is expected perform better. This benefits everyone. It’s that simple. Strong performance management ensures that everyone on the team is clear about their role and expectations, understands how they fit into the whole, and greatly increases the likelihood that everyone on the team is rowing in the same direction.

If you still need more convincing, consider this: strong performance management has been proven to improve retention, engagement, morale, accountability, and independence; it reduces a manager’s need to micromanage – all things that contribute to a happy, productive workplace and fuel organizational performance.

Before I close, let’s spend a moment on those annual review meetings and forms. Should managers still be doing these?

Continued on page 14 13

Continued from page 13 There’s nothing inherently wrong with them. It’s good to touch base periodically and summarize what’s been discussed. Maybe this happens once a year. Maybe it happens quarterly. But here’s the kicker: there should be no surprises. Everything you talk about in that meeting should have already been addressed in your ongoing conversations. If that’s not the case, it might be time to take a step back and reassess your approach.

Has “ongoing and continuous” gotten lost in the busy-ness of running the business? Time to give yourself some feedback and make some adjustments.

Some days the best performance conversations are those we have with ourselves!

Now part of Harford Mutual Insurance Group, Clearpath Specialty provides specialized Workers’ Compensation coverage to protect your business.

At the end of the day, performance management isn’t about checking off boxes or filling out forms. It’s about communication, building relationships, fostering growth, and creating an environment where everyone can thrive. So, here’s to leaving those final exam jitters behind and embracing a better way of managing performance – one that’s about growth, communication, and collaboration.

If you’re struggling with performance management or anything else HR-related, don’t forget that one of the benefits of your IA&B membership is expert HR advice. I can be reached at 484-465-1201 or khdigioia@herbein.com.

Karen H. DiGioia provided this article on behalf of Herbein HR Consulting, IA&B’s contracted human resources consulting firm.

Also available in audio format 14

MAY 2024

WOMEN'S CONFERENCE RECAP

Over 150 insurance professionals gathered on March 27 in Hershey, PA for the second annual IA&B Women’s Conference.

The sold-out event focused on emotional intelligence and the unique strengths that women bring to the insurance industry. The Workplace Advisors President & CEO Claudia St. John presented the morning keynote session and then lead attendees through small-group discussions in the afternoon.

Stay up to date on IA&B's initiatives for women: IABforME.com/women-in-insurance IABforME.com |

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INSURANCE

THINK UFG Deep expertise.

Personal relationships.

Responsive service.

When you’ve been in business for as long as we have at UFG Insurance, you understand what matters most to your customers. For us, it’s our commitment to delivering deep underwriting expertise with the personal relationships and responsive service our partners and policyholders have come to expect and appreciate from UFG. Think UFG for new business opportunities today — we deliver what matters most.

MIDDLE MARKET

CONSTRUCTION

SMALL BUSINESS

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SPECIALTY E&S

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SURETY

WELCOME NEW & RETURNING AGENCIES Nicholas Insurance Solutions LLC York, PA Jillian O’Brien Insurance & Financial Services LLC West Chester, PA Dougherty & Company Media, PA

EARN CE WITH IA&B

E D U C AT I O N SCHEDULE M AY 2 0 2 4

The Paterson Agency LLC Huntingdon, PA

Register today! 800-998-9644, option 1 IABforME.com/education

Bethesda General Insurance Silver Spring, MD

CLASSROOM DATE TOPIC

LOCATION

May 7-8 CIC - Commercial Property

Mechanicsburg, PA

May 9 May 14 May 16

Cranberry Twp, PA Mechanicsburg, PA Phoenixville, PA

NEW PARTNER NJM Insurance Group For information about membership or benefits, contact: Tim Wonder, VP-Membership 717-918-9223 TimW@IABforME.com

PRIMARY AGENT Editor: Karen Robison KarenR@IABforME.com 717-918-9209 Contributing editors: Jennifer Ross, Megan Fioretta, Sarah Haas Sales Account Executive: Rebecca Sieg | 717-430-2351 rebecca.sieg@theygsgroup.com

CISR - Personal Auto CISR - Commercial Casualty II CISR - Personal Auto

LIVE WEBINARS DATE TOPIC

TIME

May 1

CISR - Life & Health Essentials

8 AM-3:45 PM

May 2

WTH - Personal Lines

8 AM-4 PM

May 2

Certificates, Contractors & You: Fights, Coverages, Best Practices 1-4 PM

May 7-8 CIC - Commercial Property

8 AM-5 PM

May 8

CISR - Elements of Risk Management

8 AM-3:45 PM

May 9

Hour w/ Sam: Physical Damage Coverage Concerns in the PAP

11 AM-12 PM

May 9

All-Things Ethics: Agent Obligations, Standards, Authority, More 1-4 PM

May 14 CPIA - Position for Success

8:30 AM-4:30 PM

May 14 Hour w/ Nicole: Why PL Deductibles Always Confuse Insureds

11 AM-12 PM

May 14 Claims That Will Convince Insureds to Enhance HO Coverage

1-4 PM

May 15 CISR - Other Personal Lines Solutions

8 AM-3:45 PM

May 15 CPIA - Implement for Success

8:30 AM-4:30 PM

May 16 CPIA - Sustain Success

8:30 AM-4:30 PM

May 16 HO Deep-Dive: Need to Know About the Most Recent Forms

9 AM-12 PM

May 16 Cyber Coverage: Protecting Insureds From Hackers, Liars, Bots

1-4 PM

May 21 E&O: Duties, Laws, Documentation, and Data Breach

9 AM-12 PM

May 21 Handling Commercial Claims & Coverage Disputes

1-4 PM

May 22 CISR - Personal Residential

8 AM-3:45 PM

May 23 Transportation Insurance: Non-Standard Business Exposure

9 AM-12 PM

May 23 Social Security and Medicare: Your Questions Answered

1-4 PM

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Risk is everywhere. In everything. With Applied Underwriters by your side, the gears of commerce, innovation, and exploration keep turning. Experience the unrivaled heart and unwavering service that only Applied delivers.

Learn more at auw.com or call (877) 234-4450.