Maryland Primary Agent - November 2018 by Insurance Agents & Brokers Service Group Inc

NOVEMBER 2018 | MARYLAND

ACTIVE SHOOTER COVERAGE: EYEING THE MARKET

6 TIPS FOR EMPLOYEE ONBOARDING MEDICAL MARIJUANA AND WORKERSâ&#x20AC;&#x2122; COMPENSATION

IN THIS

COVERAGE CORNER: MEDICAL MARIJUANA

A physician prescribes an employee medical marijuana instead of an opioid to treat a work-related injury. Can the employer expect their workers’ compensation insurer to pay? How does this affect a drug-free workplace policy?

10 ACTIVE SHOOTER COVERAGE

Do your commercial insureds know that active shooter coverage exists? Do they understand their risk? Learn how the industry is responding to active shooter events and what insurance producers need to know.

20 SIX TIPS FOR EMPLOYEE ONBOARDING

Most of us are aware of the importance of first impressions on a personal level and in customer service. But what about with new employees? Having an effective onboarding process can increase retention and productivity.

IN EVERY ISSUE 2 3 6 8 18 28 28 28

Chair of the Board’s Message Claire-ification State News IA&B Partners Pics & Posts Education Classified Ads Advertiser’s Index

JOIN US ON SOCIAL MEDIA: Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B About IA&B 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 # 2018-11, is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

Copyright 2018. 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.

CHAIR OF THE BOARD’S MESSAGE

BOARD OF DIRECTORS INSURANCE AGENTS & BROKERS

A CAREER FOR ALL SEASONS

5050 Ritter Road | Mechanicsburg, PA 17055 800-998-9644 | IABforME.com

OFFICERS

Chair of the Board

reetings from the Pocono Mountains, where the leaves – and the temperatures – are dropping steadily. In Northeastern Pennsylvania, early November provides a brief lull. The golf courses are shuttering, the ski resorts have yet to open, and (at least briefly) the hustle and bustle of the holiday season is at bay. It’s one of those rare opportunities for reflection. Recently I’ve been doing quite a bit of reflection – reflection on IA&B as I enter my last year on the Board of Directors and reflection on the insurance industry as a whole. It began when I attended an IA&B event earlier this fall in Bedford, PA. It combined the Futures Conference for young agents, a strategic session of the Board of Directors, a Platinum Partners reception for top-tier company sponsors of the organization, and even a panel discussion with area high school students involved with the Future Business Leaders of America (FBLA). It was quite a mix of people. And it ran the gamut: from industry “lifers” at the Board meeting and Partners reception, to new producers at the Futures Conference, to prospective insurance professionals at the FBLA discussion. While there were the obvious differences among the various generations on site, there were also similarities – in energy, integrity, and commitment. I have been on the IA&B Board of Directors for eight years now. I’ve seen trends and initiatives and outlooks come and go. But bottom line: I left Bedford with a renewed sense of optimism for the industry, and it’s a feeling that keeps coming back in the weeks since then. There are great things – and great people – ahead for the independent agency channel.

John B. Hollister

Milford, PA Vice Chair of the Board

Craig S. Mader Crofton, MD

MEMBERS

Emory Stephen Burnett, CIC, ARM Wilmington, DE

Richard F. Corroon, CPCU Wilmington, DE

Michael P. Ertel Sr.+ Columbia, MD

Ashley M. Fitzsimmons, CISR Forest City, PA

Len Gieseler, LUTCF Pottstown, PA

G. Greg Gunn, CIC* Lemoyne, PA

Bryan C. Hanes, JD Hagerstown, MD

Lisa A. Leach Goth, CIC New Bethlehem, PA

Shannon Lipniskis Indiana, PA

Elizabeth H. Martin, CIC Millersville, PA

Mark J. Monroe

West Chester, PA

Richard M. Rankin, CIC Lancaster, PA

D. Bradley Rosenkilde Jr. Hunt Valley, MD

All the best,

Tara S. Silfies, CPCU Bethlehem, PA

Robert L. Smyrl Jr., CIC Hatfield, PA

John Hollister Chair of the Board

Glenn R. Strachan

Ft. Washington, Md

Bryan S. Willey Dover, DE

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM** Newark, DE

J. Marshall Wolff, CIC, CPCU Easton, PA

* Pa. IIABA National Director ** Del. IIABA National Director + Md. PIA National Director

NOVEMBER 2018

Claire-ification IA&B Vice President - Advocacy Claire Pantaloni, CIC, CISR provided this month’s answer.

QUESTION:

Ask our experts!

One of my Pennsylvania clients was fined by the New York State Workers’ Compensation Board after the Board discovered one employee working remotely from New York. Is there any leeway? And how did the Board find out? The agency wasn’t notified, and the insurer is not licensed in New York.

Have a question? Rely on our team to find the answer.

ANSWER:

800-998-9644, ext. 604

Contact Claire:

ClaireP@IABforME.com

In this case, the employee had just gotten married earlier in the year and decided with her employer that she could work remotely from her new home in New York state. There was clearly no desire to evade any obligations, but a simple oversight.

• Insurer and policy number

It is hard to say if any leeway will be granted, but it is possible, under the circumstances, that the New York State Workers’ Compensation (NYS WC) Board may look at this set of facts with more understanding. To that point, we have been told that the Board has occasionally been willing to negotiate over fines. Your customer (or you) may want to contact the Advocate for Business at the NYS WC Board. He or she may be able to give advice on how to get the penalty reduced.

How the Board found out is unclear, but it’s possible (if not likely) that it receives information from other agencies – perhaps the Department of Labor or Department of Revenue – and is able to find non-compliance in a more targeted way.

IABforME.com

• Federal employer identification number or WCB employer number • Brief description of the problem and any correspondence received

You can contact the Advocate for Business at advocatebusiness@wcb.ny.gov or 877-632-4996. Be prepared to provide the following information: • Insured’s complete corporate name • Contact person name, phone number, and email address

COVERAGE CORNER

MEDICAL MARIJUANA AND WORKERS’ COMPENSATION By Jerry M. Milton, CIC

n employee sustains a workrelated injury. To treat pain, the physician prescribes medical marijuana instead of an opioid. Can the employer expect their workers’ compensation insurer to pay this claim? If the employer has a drug-free workplace policy, does the employer have the right to fire the employee for using marijuana? Currently, medical marijuana is legal in 29 states plus Washington, D.C. and recreational use is legal in seven states and

D.C. There definitely will be other states that join this list in the coming months. Some doctors are now prescribing marijuana as an alternative to addictive opioids. Will the workers’ compensation insurer pay the costs of medical marijuana treatment? That depends on the state’s law. A few insurers will not pay for medical marijuana treatment except in jurisdictions that mandate it by law. At the present time only five states – Connecticut, Maine, Minnesota, New Jersey, and New Mexico – require

NOVEMBER 2018

insurers to pay. Other states, including Florida, Michigan, and North Dakota have passed laws stating that medical marijuana treatment is not reimbursable under their workers’ compensation laws. Marijuana is listed as a Schedule I drug under the Federal Controlled Substance Act, which means that under federal law, marijuana (medical or recreational) remains illegal. Given the fact that marijuana is federally illegal, state courts may be reluctant to approve medical marijuana treatment for work-related injuries.

Because marijuana remains federally illegal, it is therefore illegal for any Department of Transportation-qualified driver to use marijuana The Commonwealth of Pennsylvania has joined in the confusion relating to the use of marijuana in the workplace. In April 2016, the Pennsylvania Medical Marijuana Act (MMA) was signed into law. The MMA provides, “Nothing in this act shall be construed to require an insurer or health plan, whether paid for by commonwealth funds or private funds, to provide coverage for medical marijuana.” This section means that workers’ compensation insurers will never have to pay medical marijuana dispensaries directly. However, reimbursing workers for their out-of-pocket costs is not precluded. What is the process of obtaining medical marijuana in Pennsylvania? It begins with an injured worker registering with the state as a medical marijuana patient. The patient then schedules an appointment with a physician on the state’s list of approved doctors. The doctor decides whether the injured worker suffers from one of the enumerated conditions in the MMA and whether treatment with marijuana will be of benefit. If the doctor believes it would be, a recommendation, not a prescription, is provided. It is left up to the medical team at the dispensary to determine which strain and formulation of marijuana will be most beneficial for the patient. The injured worker pays cash for the medical marijuana provided, which is limited to a one-month supply under MMA. The injured worker will then seek reimbursement for the cost of the marijuana.

The first step in the reimbursement process is to determine if the use of medical marijuana is reasonable and necessary. Does that term “reasonable and necessary” sound familiar? It should. It’s been part of our workers’ compensation vocabulary for years. The MMA lists the qualifying conditions for which medical marijuana is considered “reasonable and necessary.” There are four that are pertinent:

Jerry M. Milton, CIC, teaches and consults on industry issues. The legal profession recognizes him as an expert on insurance coverages. He also serves as our education consultant, working with our CISR, CIC and continuing education programs. Catch him at one of our upcoming seminars: IABforME.com/education.

• Neuropathies • Post-traumatic stress disorder • Severe chronic or intractable pain • Addiction substitute therapy and opioid reduction This list creates tons of questions. Do neuropathies include any nerve injury, including carpal tunnel? What constitutes “chronic”? Why not opioid elimination instead of opioid reduction? If medical marijuana is recommended and approved, in order for the costs to be reimbursable, they must be provided by a “health care provider” which is defined in Section 127.3 of the Pennsylvania Workers’ Compensation Medical Cost Containment Regulations. It’s easy to see that the MMA throws open the door for additional workers’ compensation litigation. It will be years before many of the issues regarding the use of medical marijuana are resolved and case law is determined. More work for the attorneys.

PROTECT YOUR CONTRACTOR CUSTOMERS LEARN ABOUT the latest insurance issues that contractors face. There are three remaining opportunities to attend our special topic seminar, What’s the Verdict? Construction Issues and Court Cases. The seminar looks at court cases, claims scenarios, and case studies and awards 8 CE credits. Remaining Offerings Nov. 27 – Ft. Washington, PA Dec. 3 – Pittsburgh, PA Dec. 4 – Mechanicsburg, PA Register Today 800-998-9644, option 1 IABforME.com/SpecialTopics

Y’all take care!

MARYLAND RAISES REBATING THRESHOLD

CE REQUIREMENT REFRESHER

administer the company according to Maryland law.

Agencies’ promotions and raffle items now may carry a value of up to $50. Maryland increased the rebating threshold as of Oct. 1.

Stay in regulators’ good graces by meeting the training requirements necessary to sell, solicit, and negotiate the lines of business for which you are licensed. The Maryland Insurance Administration (MIA) recently clarified producers’ continuing education (CE) requirements – an effort likely triggered by licensee confusion.

The court order follows a Sept. 10 administrative order issued by the Maryland Insurance Administration (MIA) that prohibited Paramount from making any disbursement, payment, or transfer of assets, as well as issuing or renewing any insurance policies, without prior approval of the insurance commissioner.

Passed during the 2018 legislative session, House Bill 1083/Senate Bill 673 increased the maximum value of “educational materials, promotional materials, or other articles of merchandise” (i.e. may not be cash) that can be offered from $25 to $50. It also added a provision ensuring that the receipt of any such item does not carry an obligation to purchase insurance. Non-compliance continues to run rampant. Review our (newly updated) online resource on rebating and inducements to learn more about the rules and regulations. IABforME.com/rebating

Maryland resident producers must earn 24 CE credits during each two-year licensing period. However, certain factors affect the requirement, including: • The number and types of lines for which you are licensed • How long you have been licensed Our online resource details Maryland’s CE and training requirements. Review it for highlights and explanations of the state’s CE regulation. IABforME.com/CE_requirements

MARYLAND’S EFFORTS PAY OFF FOR INDIVIDUAL HEALTH INSURANCE MARKET Maryland residents who purchase health insurance in the individual market will see an average 13.2% premium rate decrease in 2019. This follows insurers’ initial premium requests, which averaged a 30.2% increase. The Centers for Medicaid and Medicare Services approved the state’s application waiver to create a reinsurance program to address extreme rate hikes. The waiver – along with bipartisan legislation passed by the Maryland General Assembly last spring – allowed the state to set up a reinsurance pool to provide funding for policyholders’ catastrophic claims in the individual market.

PARAMOUNT ORDERED INTO REHABILITATION If you are appointed with Paramount Insurance Company, domiciled in Maryland, take note: The company was ordered into receivership. On Sept. 13, the Circuit Court for Baltimore City approved an immediate order to rehabilitate Paramount with the company’s consent. The court order: • Placed Paramount into rehabilitation, which is a type of receivership • Appointed Risk & Regulatory Consulting, LLC as the receiver As such, Risk & Regulatory Consulting took possession of Paramount and will

NOVEMBER 2018

Paramount has approximately 9,000 P&C insurance policies in force and over 8,000 policyholders in Maryland. The MIA in its Sept. 24 press release encouraged Paramount policyholders to continue paying their premiums to maintain coverage.

PRE-LICENSING TIME FRAME SHORTENED As of Oct. 1, 2018, Maryland shortened the eligibility period for aspiring producers to take the insurance licensing exam and the time frame for the validity of their exam results.

WHAT’S NEW Previously a candidate had one year to pass both portions of the Maryland licensing exam. The state shortened this eligibility period to six months. Failure to pass the exam within six months will require the candidate to retake the prelicensing course and to apply to retake both portions of the exam. Exam scores previously were valid for two years. The state shortened this time frame so that a candidate who passes both portions of the licensing exam will have six months to apply for the appropriate Maryland license. Failure to apply within six months will require the candidate to retake the pre-licensing course and to apply to retake both portions of the exam.

STATE NEWS Finally, a candidate who receives a prelicensing education waiver previously had one year to pass both portions of the licensing exam. This changed to six months.

WELCOME

PRE-LICENSING PREP

AGI INSURANCE LLC Harleysville, PA

IA&B offers its Maryland Property & Casualty Pre-Licensing Manual to help aspiring agents improve their chances of passing the licensing exam on their first try. The state-specific guide provides: • Insight into the questions they should be prepared to answer • Explanation of the test process (from registration to test-taking tips)

FIRST COMMONWEALTH INSURANCE AGENCY Indiana, PA

NEW MEMBERS PEZZUOLO INSURANCE AGENCY LLC Bessemer, PA RHOE B. HENDERSON AGENCY Jamestown, NY

Learn more about membership by contacting IA&B Vice President – Membership Tim Wonder. 800-998-9644, ext. 351 TimW@IABforME.com IABforME.com/membership

• Study schedule • Mentoring program The complete manual is $169 for IA&B members ($189 for non-members). IABforME.com/licensing

Looking for Insurance Talent? WAHVE is an ideal solution when you can’t find experienced talent, long term or short term, full-time or part-time. WAHVE is an innovative contract staffing solution that matches retiring professionals to fill your staffing needs. Save time and money on: l Recruiting, hiring, and training l HR functions, overhead, and turnover

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.

PARTNERS PROGRAM

& through IA&B’s Partners Program.

Supporting Connecting

2018 Partners

ELEVATING AGENTS

Program

Offering sincere thanks Among the IA&B Partners are the following Platinum-level sponsors.

PLATINUM PARTNERS ACUITY Agency Network Exchange LLC BBSI Chubb Donegal Insurance Group Erie Insurance Group Farmers Mutual Fire Insurance Company of Marble Insurance Agents & Brokers Service Group Millers Mutual Group Penn National Insurance Plymouth Rock Assurance The Main Street America Group

The IA&B Partners Program allows companies to support and connect with independent insurance agents and brokers in Pennsylvania, Maryland and Delaware. Through their sponsorship, Partner companies allow IA&B to offer the programs and services that help member agencies succeed.

CALLING ALL COMPANIES Your support helps independent agents succeed and their agencies become more profitable — a win for your company and the independent agency channel. What’s more, you will find more value than ever before from our revamped Partners Program. Learn more by visiting IABforME.com/Partners or contacting Jess McWilliams at 800-998-9644, ext. 503, or JessicaM@IABforME.com.

NOVEMBER 2018

PLATINUM PARTNER Insurance Agents & Brokers proudly recognizes Farmers Mutual Fire Insurance Company of Marble, Pennsylvania as one of its Platinum Partners. IA&B Platinum Partners dedicate the highest level of sponsorship to our organization.

PLATINUM PARTNER

SHARED PURPOSE. MUTUAL VALUES. ™

FOCUSED ON RESULTS OUR COMPANY

Farmers of Marble

CHIEF EXECUTIVE OFFICER

Eric Schmader, President and CEO

HOME OFFICE Marble, PA

A.M. BEST RATING A (Excellent)

Founded as a mutual insurance company in 1881, Farmers of Marble strives to provide competitive rates, products and services to its appointed independent agencies and policyholders. We are able to do this by understanding the markets we serve and delivering efficient and personalized service. Farmers of Marble has made investments in technology to facilitate the ease of doing business by making available: n Online Agency Portal

• • • • •

Quoting Application Submission Claims Submission Payments Document Viewing

WEBSITE

n Agency Download

CONTACT

Farmers of Marble specializes in coverages protecting primary residences, manufactured housing, seasonal dwellings, rental properties, farms and small commercial risks.

farmersofmarble.com Toll Free: 1.800.545.7806

NOVEMBER 2018

ACTIVE SHOOTER COVERAGE SHOULD YOU OFFER IT TO CERTAIN CUSTOMERS? By Nancy Germond

Do your commercial insureds know that active shooter coverage exists? Do they understand their risk? On the following pages, we take a look at how the industry is responding to active shooter events and what insurance producers need to know.

ass shooter events have grabbed national attention. In 2017, the United States saw 346 mass shootings according to ABC News.1 Active shooter occurrences are now a risk that many organizations face, from concert venues to shopping centers to school districts. Since the 1990s, school districts have become a frequent target of mass killers, but other organizations face the same challenge. No one would have envisioned a mass shooter walking into a movie theatre as one did in Aurora, Colorado, in 2012, killing 24 and injuring scores more. The randomness of the events, according to police experts, makes them virtually impossible to predict. After this type of tragedy, organizations involved face extraordinary challenges.

INSURANCE RESPONDS TO SOCIETAL CHANGES Consider cyber risk threats that were virtually nonexistent a decade ago. The industry developed cyber coverage to meet those complex cyber challenges. Today’s insurers also have worked to help solve the issues associated with an active shooter event. When it became clear that terrorism and other coverages were inadequate to meet the liability, property damage, and business income losses faced by organizations after a mass shooting, a new insurance emerged known as “active shooter” coverage.

Educating your clients about active shooter coverage is beneficial to their risk management efforts and can help prevent your agency from facing an errors and omissions claim.

NOVEMBER 2018

— Nancy Germond

It provides a broad range of pre-incident and post-incident coverages. While your insured’s general liability (GL) policy may offer some coverage for these types of events, a GL policy will hinge on liability and established negligence. On the other hand, the active shooter policy will go far beyond GL in meeting the needs of an organization if an incident occurs. The insurance industry pioneered this coverage in the past two years when underwriters of terrorism coverage began to see that terrorism and kidnap and ransom coverages were not the right answer to their insureds’ needs. The trigger for coverage, but also the nature of coverage provided meant carriers needed to develop forms to meet the unique exposures associated with these events. From the reactive approach of the general liability policy, the industry took a more holistic and proactive approach to managing the risk of a mass shooting. Some active shooter policies incorporate pre-loss recommendations, building security, post-loss crisis management, and the expenses that arise after an active shooter event. While some of your commercial insureds may be aware of active shooter coverage, many do not know this coverage exists. In addition, many do not realize their organization may be at risk for any number of reasons, including the organization’s mission or location. Not only is educating your clients about this coverage beneficial to their risk management efforts, advising your insureds of this coverage availability can help prevent your agency from facing an errors and omissions claim based on a failure to offer coverage.

COVERAGE OPTIONS Coverage goes by different names including active shooter, active assailant, or terrorism coverage that includes active shooter coverage. No matter the name, insurers design the policies to protect the organization against reputational and financial loss and third-party liability should this type of event occur. This article refers to all three types as “active shooter” events, policies, or coverage. Either written as a stand-alone or endorsed onto a policy, active shooter coverage covers not only liability claims, but also other expenses such as crisis management services post event, victim counseling, and other expenses and services. One of the important coverage features is the inclusion of pre-event site premises inspections with loss-prevention recommendations. Active shooter policies provide a team of experts who can help handle media interaction and other post-event details, such as logistical concerns and expenses faced by Broward County, Florida, after hundreds of travelers abandoned their luggage when a shooting closed a terminal.

PREMIUMS TO EXPECT WHEN QUOTING COVERAGE DEPENDING ON the carrier and the coverages, minimum premiums start between $3,500 and $5,000, according to Lori M. Hunter, Executive Vice President at Worldwide Facilities, LLC. “Risks such as schools, concert venues, and other high-risk areas would generate premiums higher than the minimums,” she said. While one expert in a recent Wall Street Journal article said that premiums are too high for the “extraordinarily low” chance of an occurrence, school districts, concert venues, and other highprofile targets are not taking any chances.

Active shooter coverage is not a standard form, so it’s important to work with a carrier or wholesaler who can help you determine the best coverage fit for your clients. Some carriers writing active shooter products will work directly with retail agents while others work through a wholesale broker or a managing general agency (MGA) arrangement. Working with a wholesale broker can be beneficial because a wholesale broker or MGA can shop several carriers to determine the best coverage fit at the lowest premium, according to Lori M. Hunter, Executive Vice President at Worldwide Facilities, LLC. Carriers write active shooter policies on either an event or annual basis, depending on the carrier and the needs of your client. For a non-profit free of any type of mission controversy holding one or two public events annually, an event policy may be in their best interest. An annual policy will better protect schools, shopping malls or clients with year-round exposures.

RECOMMENDING THE BEST POLICY FOR YOUR INSURED The coverage trigger – the event that must occur before a policy will apply to the loss – differs by insurer. For some policies, the trigger is an “active shooter event” while others may depend on a “malicious attack or threat.” Policy definitions are of great importance because policy definitions also vary by

WHAT DO UNDERWRITERS LOOK FOR IN A SUBMISSION? BECAUSE COVERAGE is evolving, active shooter insurance will mature, and underwriters may require more data before binding coverage. At this time, underwriters ask a variety of questions when they review submitted risks, including the following. • What is the primary industry code of the organization? • What are its hours of operation? • How many locations are there, and where are they geographically? • What is the risk profile of that geographic area? Is it urban or more rural? • What are the crime rates in that area? • How much cash is on hand? Although money does not motivate most domestic terrorists, cash on hand is a component of risk. • Are there guards on site? Are they armed? • What is the culture of the organization’s human resources? • Does the organization monitor social media and other factors to determine employee behavioral threats? • What is the distance of each location to the nearest police and fire departments? • Does the organization have an emergency response plan? If so, does the plan address an active shooter event? • What physical or environmental barriers are in place to prevent attacks? These are only some of the factors today’s underwriters address in their coverage decisions. The claim history of the organization, of course, is a normal underwriting question; however, prior acts of violence, threats, and attacks would concern an underwriter.

carrier, including the definitions for an active shooter and active shooter event. According to Hunter, look for the definition of an insured event in a policy form because some forms require multiple casualties before responding while others do not. Another concern is the definition of “weapon,” which will vary by carrier. Some insurers define “weapon” as a firearm, a knife, a syringe, or a medical instrument, for example, while others include moving vehicles and hand-held explosive devices. Some forms do not define weapon at all. “Crisis consulting services can vary, as well,” Hunter said. “Agents and insureds should ask what pre-crisis training is provided, if any, with the purchase of a policy.” Helping your insureds choose the right policy is important. Choosing a standalone policy or endorsing active shooter coverage onto a terrorism policy is another major consideration. “The stand-alone active shooter coverage provides broader coverage specifically for an active shooter event,” according to Ms. Hunter. “Part of the coverage on this policy is the agreement from the carrier to provide an active shooter assessment and a training webinar. The coverage also includes sublimits for counseling services and funeral expenses. The terrorism policy, which adds the active shooter coverage, typically does not provide these items. The other disadvantage to getting the active shooter coverage with terrorism is that the two coverages often share one limit. So if an insured had a terrorism event and then an active shooter event in the same policy year, the limits of the policy could be eroded.” continued on page 16

NOVEMBER 2018

Protection your clients can coun t on.

Medical bills, lost wages, penalties — those types of unforeseen expenses can be damaging to a business. At EMC, we leave nothing to chance. For more than 100 years, we’ve offered reliable workers’ compensation insurance, protecting clients from the domino effect that can occur when an employee gets ill or is injured on the job. We cover the cost of medical care, rehabilitation and lost income — and our special medical services help employees get better faster and return to the job as quickly as possible.

Take care of your clients so they can get back to business.

www.emcins.com

continued from page 14

Some of the active shooter policies are primary to the general liability (GL) policy and at least one carrier’s form is secondary. Active shooter policies will normally work with your insureds’ general liability policies in conjunction with the “other insurance” clause. However, some GL policies may not respond because they may exclude terrorism or acts committed by employees. Agents never want their insureds caught in a coverage battle as carriers try to figure out which policy is primary.

TYPES OF ORGANIZATIONS THAT MAY NEED COVERAGE Not every organization needs active shooter coverage. However, some executives may not realize that they can be targets based on location or cause and their organizations could benefit from the coverage. Rural areas may be at risk from slower police and emergency responder response time. Those located in urban areas near parks, shopping, or concert venues may need coverage because their small business can be a target based solely on its location to a high-risk venue. Retail agents can use this unique coverage as an educational tool and a chance to meet with their clients to talk about emerging risks.

THE BENEFITS OF OFFERING ACTIVE SHOOTER COVERAGE If these types of incidents continue, demand for this distinctive insurance will only grow. Building your expertise in this unique coverage sets you apart from many of your competitors. Offering this coverage to all your commercial clients may seem like an overreach. According to Scott M. LeMay, President of LeMay + Lang, LLC, an independent property and casualty insurance consultancy, however, “Agents should ask an insurance buyer what concerns he or she might have about active shooter events. Then it is important to document either the potential insured’s total lack of concern or interest, or their specific requests for insurance solutions,

Underwriters are seeing an influx of applications and bind rates are higher than expected, according to one underwriter. Smaller risks such as community churches and small auto dealerships, restaurants, and retail shops are increasingly shopping and buying coverage. Public sector organizations, including schools, are either purchasing or considering coverage due to their increased risk.

NOVEMBER 2018

whether the actual solutions exist or not. Those requests, however, need to be responded to in a professional way that involves reasonable due diligence.” Protecting your agency’s professional exposure and knowing you have gone that extra mile to protect your insureds shows you take your role as a trusted insurance adviser very seriously.

Jeffrey Courtland, “Mass shootings in the U.S.: 346 mass shootings occurred in 2017,” ABC 15, Feb. 15, 2018

DATA CAN BE COMPROMISED. OUR PROMISE WON’T BE. Cyber-security breaches are unfortunately common — and mishandling them can have lasting consequences on a business’ future success. If your policyholders become targets, Cyber Liability and Data Breach Response coverage helps them keep their customers’ trust. Trust in Tomorrow.® Talk to us today. AUTO | HOME | FARM | BUSINESS

grinnellmutual.com “Trust in Tomorrow.” and “Grinnell Mutual” are registered trademarks of Grinnell Mutual Reinsurance Company. © Grinnell Mutual Reinsurance Company, 2018.

PICS & POSTS

Facebook.com/IABforME LinkedIn.com/company/IA_and_B Twitter.com/IA_and_B

NOVEMBER 2018

There when it matters most.

with

Claims Service For our agents and customers Donegal is “There When It Matters” by providing competitive rates for commercial and personal insurance. Just as important, however, is that Donegal is “There When It Matters Most” for your agency and your clients when there is an accident. Donegal delivers claims service that is responsive and fair in those moments when it’s needed most. Outstanding claims service, another way Donegal is “There When It Matters Most” for independent insurance agencies. To learn more visit donegalgroup.com or call Rick Kelley at 1-800-877-0600.

DonegalGroup.com

HR HEADQUARTERS

FIRST IMPRESSIONS MATTER SIX TIPS FOR EMPLOYEE ONBOARDING By Karen DiGioia

NOVEMBER 2018

n one of his more serious moments, humorist-philosopher Will Rogers said, “You never get a second chance to make a first impression.” Notice – he didn’t say a good first impression – just “a first impression.” The message here is that the first impression – good or bad – is one that will most likely stick. Most of us are aware of this on a personal level. We do all we can to make sure that the first impression people have of us is a good one. We wear that new or special outfit for a first date. We get our hair cut before meeting our son’s girlfriend’s parents for the first time (true story – of four parents – three of us had gotten a haircut in the past two days). When going to a neighborhood party, we practice tips for how to remember the names of new people who we meet (still working on this one) and how to maintain eye contact (enough but not too much) when we speak to people. The need to make a good first impression is also true in business. Chances are you’ve invested a considerable amount of time and money into making sure that the impression, first or otherwise, your agency and your employees are making is a good one. From the look of your website to the appearance of your office. The way employees dress and speak with customers, the length of time a customer can be kept on hold (and the music that plays during that time when they are on hold) – the focus of all these things, and oh so many more, is to make a good impression on current and prospective customers. But what about your employees? Have you put as much time and effort into making sure the first impression you make with your employees is the best that it can be? If you haven’t, you should. To help you with that task, we’re

going to talk about orienting and onboarding new employees and how to make sure the first impression is a good one. Before we get into the nitty gritty, let’s talk about why it’s important to make a good first impression on your new employees. You hired them and are giving them an opportunity. Isn’t it up to them to take it from there? While you can take that approach, that’s kind of like saying “I invited you out on this date. That’s all the effort I’m planning on putting into this.” That approach isn’t likely to result in a second date, let alone a long, meaningful relationship. Likewise, this approach to your new employees isn’t likely to result in a long and meaningful relationship, either (and, chances are, you’ve invested a good bit more time and money into hiring this new employee than you ever spent on a first date!) By properly onboarding your new employees, you are accomplishing a number of things. First, you are greatly increasing the likelihood that the employee will stay. You are also providing the information and tools the employee needs to succeed. Well-onboarded employees (yeah, that’s a thing) are shown to perform better, have higher commitment to the company, and stay longer. There are even studies which also show that these employees are less stressed. Bottom line – proper onboarding benefits the employee and the agency. A win-win proposition! So how do you do it?

Much of onboarding involves the employee listening to others. Make sure you give them an opportunity to be heard, as well. — Karen DiGioia

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First, understand the difference between orienting and onboarding. Orienting typically refers to the paperwork side of things. Onboarding has to do with integrating the new employee into the team. Orienting is the obvious stuff – I-9, W-4, benefits forms, etc… Onboarding is the meaningful stuff – mission and values of the agency, where the employee fits in, how they can help the agency succeed and grow. Make sure you don’t focus on “orienting” and forget about “onboarding” your new employee. Second, begin before day one. As we said, the paperwork needs to happen, but you don’t want the employee’s first day to be spent just filling out forms. Send out paperwork and benefits information ahead of time. Have a plan for the onboarding process and share that and the details of day one with your new employee. It’s fine to set aside some time for collecting that paperwork and answering questions about the benefits available. It’s also good to have someone walk through the employee handbook and discuss key policies. You just don’t want the first day to be nothing but forms, rules, and regulations.

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Also, make sure your new employee’s workspace and office equipment are ready for them before day one. Nothing makes a bad impression like a new employer who is unprepared. Make sure the employee’s workspace is clean and waiting, have all technology tools ready and waiting (laptop, user access, passwords, etc…), schedule any training that may be appropriate. While you’re at it, let other employees know that the new employee is starting (and when) and what they’ll be doing. Make sure there’s someone available (you?) to take them to lunch on the first day. Third, dedicate a lot of time to the employee on (and after) day one. Plan to spend a good bit of time with your new employee (and commit to making it happen). Take them around and introduce them to other employees; then spend some one-on-one time with them. Explain the agency – its history, mission, values, and strategic and tactical goals. Begin to create a connection between the agency and your new employee. Review the employee’s job description and explain your expectations. We’ve talked about this in past articles: Employees need to clearly understand what is expected of them. All too often managers assume that an employee knows what is expected and ends up frustrated when the employee doesn’t meet their expectations. Next thing you know, that employee who

NOVEMBER 2018

Karen DiGioia Mosteller & Associates 610-779-3870 karen@mostellerhr.com

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was being held accountable for those *secret* expectations is on *double secret* probation with one foot out the door. Fourth, provide your employees with broad exposure and experience. While it’s good to pair your new employee up with a more experienced one by assigning a mentor, make sure you give your new employee a broad exposure, too. In addition to the mentor, assign them a “buddy” who they can go to with basic non-technical questions (“What’s the receptionist’s name?” or “Which way to the restroom?”). Over the first weeks (or months), give your new employee a chance to spend time with many different employees throughout the agency – employees in the same role and employees in different roles. A few months ago, we talked about the advantage of a diverse team. Ensuring that your new employee has diverse exposure across your team will broaden their perspective and understanding and will, in the end, make them more effective at their own job.

The time you invest in thorough onboarding will go a long way toward producing a dedicated, strongly performing employee who is committed to their job and to the agency. — Karen DiGioia

Fifth, look at onboarding as a process that, when done best, will take months. Rome wasn’t built in a day and neither is a new employee. The paperwork stuff may happen all at once, but good onboarding takes time. It’s also important to recognize that new employees need time to learn and grow and, even, make mistakes.

NOVEMBER 2018

Sixth, ask for input and feedback. Check in with your new employee regularly. Ask for feedback. It doesn’t have to be fancy – “How’s it going?” can get the conversation started. Let your new employee know that you are available to answer questions or just chat (within reason). Welcome them as a new member of your team and let them know you value their input and

HR HEADQUARTERS

perspective. Much of onboarding involves the employee listening to others. Make sure you give them an opportunity to be heard, as well. After reading all that’s involved in quality onboarding, you may be thinking “Nah.” Sure, it’s easier to just hand the employee the forms, show them where the bathroom and fridge are, take them to their workspace, and expect them to take it from there. After all, you hired them because they had the experience you were looking for – it’s time for them to get to work and produce. However, as the saying goes, “What you put into things is what you get out of them.” (according to Google, Jennifer Lopez said this). What’s true of “things” is true of employees. The time you invest in thorough onboarding will go a long way toward producing a dedicated, strongly performing employee who is committed to their job and to the agency. And, don’t forgot, with this and other HR-related topics, the IA&B website provides you with many helpful tools. And if you ever need one-on-one assistance or advice, I’m just an email or phone call away. I can be reached at 610-779-3870 or karen@mostellerhr.com. I’ll do my best to make a good impression!

Karen H. DiGioia provided this article on behalf of Mosteller & Associates, IA&B’s contracted human resources consulting firm. Reach out to Karen for more information on onboarding or with other human resources questions.

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