2020 Summer Edition Professional Insurance Agents of TN by PIA of Tennessee

Summer 2020 • Tennessee

PAGE 14

IS THERE

COVERAGE FOR COVID-19? How some policies may respond to the pandemic

IN THIS ISSUE 11

Selling in this environment

Get clients to buy cyberpolicies

COVID-19 & client exposures

DEPARTMENTS 4 Summer 2020 • Tennessee

In brief

7 Legal 11 Sales 23 E&O

COVER STORY 14 Is there coverage for COVID-19?

Readers’ service and advertising index

Officers and Directors

How some policies may respond to the pandemic

FEATURES 19 Overcoming challenges to cyber security insurance growth

The role of agents and brokers

25 West Bend offers support for COVID-19 relief efforts

Statements of fact and opinion in PIA magazine are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the Professional Insurance Agents. Participation in PIA events, activities, and/or publications is available on a nondiscriminatory basis and does not reflect PIA endorsement of the products and/or services. President and CEO Jeff Parmenter, CPCU, ARM; Executive Director Kelly K. Norris, CAE; Communications Director Katherine Morra; Senior Magazine Designer Sue Jacobsen; Editor-In-Chief Jaye Czupryna. Postmaster: Send address changes to: Professional Insurance Agents of Tennessee, 504 Autumn Springs Court, Suite A-3, Franklin, TN 37067. “Professional Insurance Agents” is published quarterly by PIA Management Services Inc.PIA Management Services, 25 Chamberlain St., P.O. Box 997, Glenmont, NY 12077-0997; (518) 434-3111 or toll-free (800) 424-4244; email pia@ pia.org. ©2020 Professional Insurance Agents. All rights reserved. No material within this publication may be reproduced—in whole or in part—without the express written consent of the publisher. COVER DESIGN Roberta Lawrence

IN BRIEF

FROM THE EXECUTIVE

This is that moment The COVID-19 pandemic causes us to ask vital questions about our organizations, our preparedness, and ourselves. We keep hearing, “This is unprecedented!” Is it really? We have seen pandemics before (e.g., polio, measles, SARS, whooping cough and HIV/AIDS). While the impact of the coronavirus may be different, the fact that a pandemic can occur is not. The point is not to compare this pandemic with others, but to illustrate that it is not unprecedented—and it could happen again. So, how do we prepare for the next unprecedented event?

agencies. Many are publicized, but others are available upon request. These include an Agency Preparedness and Recovery Plan, Perpetuation and Succession Planning Services, cyber threat education and protection, and a Practical Guide to Successful Planning.

Many agents will face lawsuits and claims related to their clients’ business interruption coverage. Others will face claims about “inadequate coverage.” The best Kristopher Mark Fisher, way to avert those risks in the future is CAE, CPIA, LUTCF through education and best practices. Executive Vice President & CEO To help agents make sure they have the PIA of TN During a flight, we were told “if there is best tools and best procedures to prevent Franklin, Tenn. a sudden drop in cabin pressure, we need claims—or to have proper documentato put on our own mask first, and then tion to defend against one—the assohelp others”. I tell my only child that it’s ciation offers members access to educagood that I do not have to decide which child I love most. tion programs and resources. Many of these education But, we put on our own mask first—not because we love programs—especially the Certified Professional Insurourselves more—but because we can only help others ance Agent (CPIA) program—teach the idustry best from a position of strength. If I help someone first, I may practices before, during, and after the sale. pass out, and we both may die. The same is true during Then there are the unseen actions that PIA is taking to this pandemic, and when agents help their clients. help you. Every day our professionals are working with We will only be able to help others if our organizations are strong and prepared. As insurance professionals, your first question has to be, “Is my agency ready for the next pandemic or emergency?” This could include determining if your agency could operate via remote, with a small staff, without the normal leadership structure, without electricity, without phone lines, or without being able to travel. Do you have a way to reach your clients in one group text? After a tornado, could you quickly segment your clients by locations? Can you reach clients by age ranges? Do you have an emergency plan for your agency?

These are great questions, but how do you prepare for the unexpected? One of the best ways is to reach out to the association or other agents who may have resources or have experienced similar situations. While we are in friendly competition with the other PIA members when it comes to new business, generally we are in it together when it comes to helping each other—especially in a disaster. I am confident that if any PIA member had a resource that would help other agencies, he or she would share it. That is a benefit of PIA membership. Also, the local and national offices have developed resources to help 4

legislators to protect agents and the industry in the halls of Congress and our state Legislature. This not only includes helping with the passage of the Paycheck Protection Program and CARES acts, but also protecting the industry against retroactive legislative actions related to business interruption coverage, as well as helping create a public/private, 911-type fund for helping businesses with losses related to the pandemic. It is a constant effort to prevent the erosion of state regulation of the insurance industry, and intrusion of federal control on our industry. PIA promotes the concept that our members are “Independent, but not alone!” In this time of reflection and preparations, call on PIA to help you plan for your agency’s future. We are right by your side. For more information, check out the Resources, Products, Education, and Membership pages at www.PIATN.com. Always at your service,

Kristopher Mark Fisher, CAE, CPIA, LUTCF Executive Vice President & CEO

PROFESSIONAL INSURANCE AGENTS MAGAZINE

PLATINUM PARTNER PROFILE

www.capitalpremium.net

Senior executives

Tennessee staff

Matt Libutti, National Sales Manager

Joe Clayton, Territory Director (423) 618-0094 jclayton@capitalpremium.net

Josef Heugly President

" Service as unique as a two-dollar bill "

History Capital Premium Financing Inc. was founded in 1988 as a specialty lender that provides financing for certain types of insurance premiums paid by commercial enterprises and is made up of a highly qualified team of professional financial managers comprising combined commercial banking, investment portfolio management and financial institution regulatory experience of over 150 years. Philosophy Capital Premium Financing Inc.â&#x20AC;&#x2122;s core values and guiding principles, include the following: Honesty & Integrity. We always strive to do â&#x20AC;&#x153;The Right Thing.â&#x20AC;? We are truthful and accurate in all of our dealings, both internally and externally. Trust & Respect. We are keenly aware that trust is a critical asset that can only be built and maintained by our conduct as individuals and as a company. We appreciate and highly value each other as individuals and we are firmly committed to treat all people (both inside and outside our company) with dignity and respect. Communication. We communicate with others in open, direct and constructive ways. We strive to listen with understanding,

Shane Kaopua 801-208-5385 skaopua@capitalpremium.net

we encourage and value problem-solving feedback, and we exert our best efforts to communicate in such a way that positive energy and goodwill are the result. Accountability. We are open and honest about our weaknesses and mistakes and we highly value the process of recognition and improvement. Competitiveness. We are passionate about what we do, we radiate enthusiasm and confidence in all of our dealings and we honestly believe that we are the very best in our industry. Hard Work & Discipline. We have a bias for action, we look for ways to help without being asked and we individually take the initiative to find ways to support and improve the company. Compliance. We strictly comply with all laws, regulations and contractual obligations that pertain to our company. Fairness & Kindness. We are kind and considerate to all individuals and actively seek to understand the perspectives and needs of others. Excellence & Professionalism. We are committed to being professional, polished and organized in the way that we conduct our business. We are a learning organization that is committed to maintaining excellence through the process of constant improvement.

PIA of Tennessee and Capital Premium Financing Inc. proud partners for independent agents.

PIATN.COM

PLATINUM PARTNER PROFILE

Why Rytech? • Our Agent Package ensures you have updated client information • Speak with a live person - 24/7/365 • Policyholders are contacted with 30 minutes of claim assignment and a Rytech certified technician is on-site within 4 hours • We use state-of-the-art equipment to find, dry and monitor moisture with the least amount of demolition on each and every job • Our Centralized approach and Rytrac software ensures a superior and consistent experience on each and every claim, from first call, through to completion • Our professional approach with policy holders lets them know they made the right choice in you ... by you making the right choice in us

Water Damage & Mold Specialists History and Philosophy Locations Chattanooga, TN – Will Cleghorn, Owner www.rytechinc.com/chattanooga Phone: 423-702-1256 Email: wcleghorn@rytechinc.com Knoxville, TN – Chris Huss, Owner www.rytechinc.com/knoxville Phone: 865-287-5309 Email: chuss@rytechinc.com Memphis, TN – Jim Giovanetti, Owner www.rytechinc.com/memphis Phone: 901-277-2581 Email: jgiovanetti@rytechinc.com Nashville, TN – Robert Pick, Owner www.rytechinc.com/nashville Phone: 561-379-4971 Email: rpick@rytechinc.com

For over 30 years, William “Bubba” Ryan has owned and operated highly successful restoration companies. By the early 1990’s, Ryan recognized the need for significant improvements in the water damage restoration industry. As new technologies emerged and proper drying procedures developed, Ryan realized the need for major improvements as many companies lacked the ability to provide efficient and effective drying service. In 1995, Rytech, a “water only” mitigation company was borne. Headquartered in Atlanta, GA, Rytech has become a leader in the water damage restoration and mold remediation industry. From its humble beginnings in one location, the company has reached exponential growth and currently provides service to 49 major markets across 25 states.

PROFESSIONAL INSURANCE AGENTS MAGAZINE

The cannabis Carnac Picture this: Mysterious music plays. A curtain pulls back. A shadowy man wearing a cloak emerges on stage. In his hand, he holds a hermetically sealed envelope. He states to the audience that he is a famous mystic, and he will psychically divine the answer to the question written on the paper held inside the sealed envelope. He holds the envelope to his head and recites the following: 33, 11 and a half,1 10 million, and over one billion. The crowd holds its breath. The mystic opens the envelope, and reads-aloud: the number of states that have legalized medical cannabis; the number of states that have legalized recreational cannabis; the amount of tax revenue Illinois collected in the first month cannabis was legalized in that state; the amount of tax revenue Colorado—the first state to legalize cannabis—has collected since legalization. The crowd erupts in applause at the demonstration of mental aptitude. For those familiar with Johnny Carson, you may recognize the above as a clear parody of his Carnac the Magnificent character.2 However, it also serves as an explanation. The first two figures represent the present state of legalized cannabis in this country. The latter two figures suggest that if I were to write this article a year from now the first two figures would likely be significantly higher. At the same time that legal cannabis businesses3 are becoming vital sources of tax revenue for many states, they also are raising unique challenges for the insurance industry. Like all businesses, cannabis businesses have a need for insurance (e.g., coverage for theft, workers’ compensation, employee practices and product liability). These are not foreign issues for insurance producers who wish to take these businesses as clients. However, there is one issue that is unique for insurance producers—the threat of serving time in a federal prison for selling insurance. While more than half of the states in America have legalized cannabis either for medical or recreational purposes, it still remains illegal under the federal Controlled Substances Act. In fact, cannabis is a Schedule I drug under that law, and it is stated to have no medical benefits. This creates a conflict between federal and state law regardless of whether medical or recreational cannabis is legal in a given state. You may recall from your high school civics class that the U.S. Constitution contains a clause termed the Supremacy Clause. In short, this clause establishes that the Constitution and the federal laws made pursuant to it are the supreme law of the land. If there is a conflict between federal and state law, the federal law would reign supreme.4 While this is interesting to legal nerds like myself, what does this have to do with insurance producers selling insurance PIATN.COM

LEGAL

BRADFORD J. LACHUT, ESQ. Director of government & industry affairs, PIA Northeast

products to cannabis businesses? It could mean that if producers were to sell insurance to a cannabis business they may be in violation of several federal statutes, including the Racketeer Influenced and Corrupt Organizations Act. This federal law allows for the prosecution5 of a person who has committed one of myriad racketeering activities such as murder, kidnapping, extortion and money laundering. RICO cases often are used to prosecute organized crime, so you may be wondering what insurance has to do with it. Usually, insurance is a way criminals launder their money (i.e., the process of taking “dirty” money generated through illegal means and passing it through a legitimate business, like insurance, to get the money back “clean”). In the present case, this would occur when the cannabis business paid the premium (the dirty money) on its insurance policy. Then the business would file a claim. The insurance company pays the claim (the clean money) to the cannabis business. The insurance producer is there in the middle facilitating the collection of premiums and the payment of the claim.

I don’t mean to scare you from taking on cannabis businesses as customers. The fact is that a RICO charge is highly unlikely. First, there are much better ways to launder money than buying an insurance policy. Second, 7

the federal government has not shown much interest in prosecuting cannabis businesses or those that do business with them. It only serves to illustrate a potential issue that does not exist for many other businesses, unless you actively sell insurance to mobsters, which raise a whole host of other issues. Usually, when there is an issue it is wise to seek a solution. In the context of cannabis businesses that solution is legislation that provides a safe harbor to those doing business with cannabis businesses. Thankfully, that solution is not merely wishful thinking. Federal legislation passed the U.S. House of Representatives in 2019 that would create a safe harbor for insurance producers in these situations. The Secure And Fair Enforcement Banking Act of 2019 or SAFE Act provides safe harbor to banks and financial institutions doing business with state-legal cannabis businesses. As originally written, the SAFE Act only applied to banking institutions. However, parts of separate cannabis legislation, the Clarifying Law Around Insurance of Marijuana Act or CLAIM Act was incorporated into the SAFE Act, thanks in part to the efforts of PIA National. The incorporation of the CLAIM Act prevents federal criminal prosecution of and civil liability for agents, brokers, and insurers, as well as their officers, directors, and employees when providing insurance in states with legalized cannabis. Passage in the House is all well and good, but that is only one-third of the battle. It still has to pass the U.S. Senate and be signed by the president. While there is no guarantee of either, the legislation does have wide bipartisan support as evidenced by the 206 co-sponsors on the House bill and its passage in the House by 321-103 vote.6

The cannabis marketplace is increasing. As more businesses move into that sector to meet the demand they will need proper insurance coverage. The independent insurance agent would be an indispensable resource for these businesses as they look to navigate the world of insurance. Unfortunately, without guarantees that insurance producers would not be subject to federal prosecution for assisting these businesses, it is an area that producers may understandably wish to avoid. This makes passage of the SAFE Act vital. It would be a big win for legal cannabis businesses, many of which have to do business in cash and selfinsure, not to mention insurance producers with an aversion to prison stripes. PIA will continue to advocate on behalf of our members to make sure they are able to serve this growing industry.7 Lachut is PIA Northeastâ&#x20AC;&#x2122;s director of government & industry affairs. 1

The half is the District of Columbia.

I will admit I am too young to remember this skit, but I have seen enough modern parodies to be familiar with it. See YouTube.

Going forward, I am just going to say cannabis business. It can be assumed that I am referring to legal businesses.

For the purposes of this article, I am choosing to ignore various 10th amendment arguments that claim states would be permitted to legalize cannabis. 4

There is a civil component.

Any legislation that Rep. Ralph Norman, R-S.C., and Rep. Bonnie Watson-Coleman, D-N.J., agree on must be pretty bi-partisan, am I right?

PROFESSIONAL INSURANCE AGENTS MAGAZINE

No pun intended.

Empowering producers at the point of sale AVYST eForms Wizard

streamlines data input—online or offline—reducing E&O exposure and simplifying submissions. It is efficient, reliable, and effective. Get to market faster with complete, accurate, paperless submissions. Try it today!

As a PIA member, you have access to AVYST eForms Wizard Bronze for free. Start here—avyst.com/mypia (877) 204-0704

PIATN.COM

SALES

JOHN CHAPIN President, Complete Selling

What you should do in the current environment After 54 years on the planet, and almost 33 years in business, I know two things: 1. This will be over at some point; and 2. A few organizations will come out of this with stronger, healthier businesses, while the others will come out between okay and out-of-business. If you want to be in the first category, here’s what to do.

How to excel Everything goes in cycles (e.g., stock market, the economy and real estate). In the last 10 years, there has been unprecedented growth. In the U.S., we have a disruption in the economy every seven to 10 years. In the past 19 years, we have experienced 9/11, the 2008 recession, and now COVID-19. When the economy is strong, the stock market is surging, and everything is coming up

roses, the majority of companies and people act as if the good times will last forever. When things turn, most companies pull back, stop spending money, and hunker down and they act as if it’s the end of the world. In war, retreating, or sitting and waiting, are sometimes viable options. However, these tactics don’t work when it comes to business. In business, stopping leads to stagnation and paralysis. At that point,

For Dwelling and Mobile Home Insurance, put your trust in a company that has been insuring homes for over 50 years.

20 %

CO NEW M BU M SI IS NE SI SS O N

Our Products: • Dwelling Fire/Mobile Home • Comprehensive Mobile Homeowner’s • Limited Homeowner’s

Can Provide You With: • • • • • •

20% New & 15% Renewal Commission AAIS Policy Forms Direct Contract with National Security Partnership Profit Sharing Fast Online Policy Issuance Easy Payment Options

National Security has provided competitive, affordable insurance to policyholders for over 50 years, but we also provide a lot for our agents, with competitive commissions, excellent customer service and experienced company adjusters. As an admitted Southeastern based regional company, National Security prides itself on fast, efficient service from a friendly small town company, and online access for all agents, providing fast quotes, online policy issuance, online dec page printing, and real-time policy information. Find out more by calling Sharon at 1-800-239-2358 x213 or visit nationalsecuritygroup.com.

PIATN.COM

Elba, Alabama

your first indication that things are back to normal may be your competition whizzing past you while you sit still. The few companies that expand and grow in bad times act courageously. They take smart risks, they double their efforts versus cutting back, they continue to invest in their business and people, and they continue to push into the marketplace. The companies that take a big hit, or go out of business altogether, act fearfully. Fearful actions shrink businesses. For example, during an economic disruption, the average company cuts sales and marketing activity and spending by 37%.1 The companies that grow do the opposite. The point? It’s okay to pause and get your bearings, just don’t get stuck in neutral or reverse. Don’t panic and act on emotion. You’ll lose market share. And, it’s tough to get going again if you are starting from a stand still. So, pause if you must, but once you get your footing, go on the offense. Remember why you’re in business, the people you’re trying to help, and recommit to your mission. Things are different, you may be working from home, you may figuratively have one or both hands tied behind your back, but with today’s technology, you still can get out there and get to people. Your approach will most likely vary, but your overall objective will remain the same: Act courageously, take massive action, and be visible and accessible in the marketplace. And, ultimately, deliver the benefits you promise clients and prospects. Here are the steps to do that. Step 1: Make clients your No. 1 priority. Reach out and let them know you’re there. Focus on showing empathy and let them know you care. First, find out how they and their family are doing, then see if they have questions or need anything. They may not have time to talk right now, though most will. What’s important is for them to know that you care and you’re there should they need you. Also, when you do talk to clients, stay positive. You don’t have to be Pollyanna, but err on the side of being positive. You may have to let them vent a bit. One of your most important skills right now is to listen. Step 2: Reach out to current prospects. As with clients, lead with empathy and concern. Ask how they are doing, then get an indication as how they’d like to proceed. Step 3: Reach out to others you know you can help. If the current situation puts you in a unique position to help someone, contact them, but again, lead with empathy and concern. Address the trying times, then build rapport and ask questions and listen, versus launching into a sales pitch. Step 4: Reach out to past clients you’d like to get back. Your objective is to be a resource should they have any questions, not to sell something, at least not right now. Re-establish that connection and let them know you care. Step 5: Look for future, or even current, opportunities. Companies in the food and beverage and medical industries are growing, and they are seeing an increased demand for products. Other companies have problems they’ve never seen before. Who is a good prospect?

PROFESSIONAL INSURANCE AGENTS MAGAZINE

All your communications should be about intent right now. Just as you should be doing at all times, do not focus on the money or the sales. Let clients and prospects know you’re thinking about them, you’re there for them, and you care. Be the certainty and courage they need right now. Step 6: Prepare. Build your prospect list and do research on them now. Create a vision and a plan for your business going forward. Work on professional and personal development. Build your sales skills. Prepare for new objections, and work on ones that have been tripping you up for years. Improve your time management, organization, and mental toughness. Work on business and personal goals. Don’t forget to take some classes and continue your education. To improve your sales process, update your sales playbook, script book and concept book. Work on systems you have in place to make sure they are running as efficiently and effectively as possible. Focus on your actions. What are you doing every day to grow the business? Do things you haven’t had time for in the past. Break some bad habits and create some new, good ones. Make any migrations, changes, upgrades or conversions to computer systems, phone systems, customer relationship management systems, etc.

Other ideas Get back to the basics: Hard work, activity, and perseverance are key character traits to embrace at this point. In general, keep a good attitude. Watch what you consume mentally and physically because

that will have the biggest impact on your attitude. Practice healthy habits. Absorb positive, inspirational material, and surround yourself with positive people. Don’t make assumptions. Don’t assume people don’t want to talk to you or don’t have time. Remember, your competition is facing the same problems you are. Look for ways to help your community, friends, and family in any way you can. Use this time wisely. Make some changes, get educated, and get prepared. Be out there and visible. If you have solid goals, strong enough reasons why you need to achieve them, and show up every day, and do what needs to be done, you’ll get to where you want to go, regardless of anything that gets thrown at you. Chapin is a motivational sales speaker and trainer. For his free newsletter or to have him speak at your next event, log on to completeselling.com. He has more than 31 years of sales experience as a No. 1 sales representative and is the author of the 2010 sales book of the year: Sales Encyclopedia. Reach him at johnchapin@completeselling.com. According to a survey I conducted in 2010. I surveyed 1,000 companies from various industries about the 2008 recession and aftermath of 9/11.

PIATN.COM

CATHERINE TRISCHAN, CPCU, CIC, CRM, ARM, AU, AAI, CRIS, MLIS, TRIP Director of commercial underwriting, E&K Insurance Group

IS THERE COVERAGE FOR COVID-19?

How some policies may respond to the pandemic

opefully—by the time this article is published—the worst of the COVID‑19 pandemic is behind us, and we are starting to rebuild our lives and our businesses. Now, COVID‑19 may not have reached its peak in certain parts of the U.S. Businesses are closed, and many of us are finding a new normal—working from home while we try to help our clients, and take care of our families.

As of this writing, no state has required insurers to pay claims for business income lost after executive order shutdowns, and no court has declared that coverage under our standard forms applies. All that can change tomorrow, of course, as nothing is certain. These possibilities aside, what do the commercial policies that most of our small- to medium-sized clients buy say about coverage for COVID-19 related losses?

the premises, is that viral contamination considered a direct physical loss of or damage to property? Most courts have said “no” in cases in which the damaging element can be removed or cleaned, leaving the property intact.

Business income

Even if the court said “yes,” that actual contamination is considered direct physical loss of or damage to property, how long would that damage last? Once the property is sanitized, the premises are usable again and the period of restoration ends. Additionally, many business income forms have a waiting period of up to 72 hours, more than enough time to sanitize most businesses. If the court decides that viral contamination triggers civil authority coverage, coverage under ISO forms would apply for no longer than four weeks.

Our commercial clients look to their business interruption (their term) or business income (industry term) coverage to help with continuing normal operating expenses and lost profit when a business is closed. Does the coverage apply to COVID-19 losses? The short answer is, that’s not how this coverage was designed. Our insureds are losing income because: • Governmental authorities are forcing businesses to shut down or scale back operations. • Businesses are voluntarily ceasing operations for a variety of reasons. • Businesses are closing because they fear COVID-19 may be present on their premises, and they want to sanitize their properties. • Many businesses that have stayed open have a loss of revenue because of the overall economic decline. Right now, there are three distinct insurance coverages that our customers are looking to for assistance: 1. business income, 2. civil authority, and 3. business income from dependent properties. Customers who buy business income coverage, or a businessowners policy, have the first two coverages automatically. The third coverage may be included in some policies: • Business income coverage is triggered when there is a necessary suspension (i.e., slowdown or cessation) of operations, caused by direct physical loss of or damage to property at the insured’s premises. The loss or damage must be by a covered cause of loss. • Civil authority coverage is triggered when a civil authority prevents access to the insured’s premises due to damage to property within a certain distance of the insured’s premises (e.g., on the ISO forms it is one mile). The damage must be by a covered cause of loss, and access to the area surrounding the damaged property must be prohibited. • Business income from dependent properties coverage (or contingent business income coverage) is triggered when a business upon which the insured depends suffers a direct physical loss of or damage to property at its premises (e.g., the insured’s customer or supplier). The damage to the dependent property must be by a covered cause of loss, and the insured must have a necessary suspension of operations as a result. In addition, the dependent property must be in the policy’s coverage territory and, under many forms, needs to be scheduled on the policy. There is a common thread among these three types of coverage. Coverage is triggered when there is direct physical loss of or damage to property or—in the case of civil authority—damage to property. Most businesses shut down to foster social distancing, not because of damage to property. Even if a business closed because SARS-CoV-2, the virus causing COVID-19, was found at 16

PROFESSIONAL INSURANCE AGENTS MAGAZINE

Let’s now imagine that it is established that the required damage to property has occurred—thus triggering the insuring agreement. The policy still would require a covered cause of loss, subject to all the exclusions contained in or attached to the policy such as: • In many jurisdictions, a virus could be considered a pollutant, so the exclusion for discharge, dispersal, seepage, migration, release or escape of “pollutants” might apply. • Most policies have exclusions for ordinance or law and acts or decisions of a governmental body. Either of these has the potential to become a factor in certain claims. • Many property policies include the Exclusion Of Loss Due To Virus Or Bacteria (CP 01 40 07 06) endorsement. Similar exclusionary language is built into the ISO businessowners policy and many proprietary BOP forms.

This endorsement was introduced in 2006—specifically to exclude coverage in cases of viral and bacterial contaminants. In my opinion, it was never the insurance industry’s intent to provide coverage for the types of losses our customers are now experiencing. Whether some courts will determine that “silent” coverage applies, remains to be seen.

Liability coverage When we examine how liability coverage will respond to COVID19-related claims, consider what would happen if someone sues a local grocery store, claiming he or she became ill after visiting the store. Is this covered under the store’s commercial general liability policy? Coverage A of the ISO CGL says: We will pay those sums that the insured becomes legally obligated to pay as damages because of “bodily injury” or “property damage” to which this insurance applies. … The “bodily injury” or “property damage” is caused by an “occurrence” that takes place in the “coverage territory.” “Occurrence” means an accident, including continuous or repeated exposure to substantially the same general harmful conditions. Is this type of loss an occurrence? If the court deems the loss accidental, it could be. However, is the insured legally liable? How does a plaintiff prove when and where he or she contracted the illness? These are questions that will likely be decided in court, but will there be defense coverage for the insured? If no exclusions

apply, defense seems likely, but some of the following exclusions could be factors: • Expected or intended injury. If a business owner knowingly allows an infected employee to interact with customers, is the injury expected? If a business owner doesn’t properly sanitize the building after he or she learns an employee is infected, is the injury expected? The exclusion can be triggered if a business owner doesn’t take reasonable precautions to prevent the spread of the disease. • Pollution. The unendorsed CGL excludes “bodily injury” or “property damage” arising out of the actual, alleged or threatened discharge, dispersal, seepage, migration, release or escape of “pollutants” at or from the insured’s premises. Jurisdictions vary in their interpretations of the type of pollutant to which the exclusion applies, but since the policy definition of pollutants includes contaminants, this exclusion could come into play. • Communicable disease exclusion (sometimes added by endorsement). These endorsements exclude coverage if the loss arises out of the actual or alleged transmission of a communicable disease. • Others. Insurers may have included a variety of exclusionary endorsements that must be considered before a coverage determination can be made. A last CGL consideration involves employees working from home. While an unendorsed CGL or BOP is not a premises-specific policy, endorsements are sometimes added restricting coverage to premises scheduled on the policy. For example, the most recent version of the Exclusion–Limitation of Coverage to Designated Premises or Project (CG 21 44 04 17), includes no coverage for incidental off-site operations. Be sure to check the policy language if employees are working remotely. Remember, that the terms of any umbrella or excess liability policy may vary from the terms of the underlying CGL. All policies should be considered if a claim is made against an insured.

Workers’ compensation How would workers’ compensation policies respond if an employee contracts COVID-19 while at work, from a co-worker or customer? While workers’ compensation is jurisdictional and case-specific, for most employees the answer is that workers’ compensation isn’t likely to apply. Workers’ compensation responds to accidents and occupational disease. With respect to disease, a two-prong trigger must be met in order to trigger coverage: 1. Did an employee’s disease arise out of and in the course of employment? 2. Did an employee’s disease arise from conditions peculiar to the work? In other words, did the employee’s working conditions increase the exposure to disease? If an employee can prove he or she contracted the virus in the workplace, the first part of the trigger would be satisfied. As more individuals become ill, though, this becomes harder to prove, especially because it is known that many who have COVID-19 are asymptomatic.

PIATN.COM

Agency E&O Let us do all the work

It is the second prong of the trigger that is more difficult for most to satisfy. If the sick employee is a health care worker treating COVID-19 patients, it is more likely the claim would be compensable than would the claim of someone working in an insurance agency. As a rule, diseases of ordinary life are not compensable for most employees. However, it is important that if an employee wants to make a COVID-19 workers’ compensation claim that the employer report that claim to the insurer. Neither the employer nor the agent should make that coverage determination. It is always possible that the circumstances surrounding a particular claim may make it compensable or that a state’s legislators may expand coverage for certain workers. In fact, a few states already have done this, and others are considering doing it.

Cyber With more employees working from home, will coverage apply if there is a security breach involving an employee’s personal computer or other device? Cyber forms vary, but here are a few coverage considerations: With several carriers to offer, we are your one stop shop

• Is the employee’s device part of the covered computer system as described in the cyber policy? • Could an exclusion apply if the employee’s device doesn’t have the required protections? • Could coverage be compromised if the employee’s device doesn’t have the same protections that were warranted by the insured on the application?

Others There are other policies under which claims stemming from COVID-19 likely will be made. Whether these claims will be covered depends on the allegations made and the terms of coverage. • Directors and officers liability policies may respond when shareholders or others claim that management decisions resulted in economic loss. Was the company’s response to the crisis an appropriate one? Did the company develop proper contingency plans ahead of the crisis?

Contact: Tom Gernt (615)771-1177 Ext. 205 advantageservices@piatn.com

www.PIAtn.com

• Employment practices liability claims may be made by employees who feel they have been treated unfairly or discriminated against when management decides who should be laid off or furloughed. Wage and hour claims may increase as employees are working from home with flexible schedules and relaxed timekeeping practices. Claims may be made by third parties who feel they have been discriminated against by certain places of business. When disaster strikes, insurance policies are put to the test. It will be years before some of the claims that have been—and will be made—work their way through the court system. Only then, will we know how well our policy language stands up to the challenges it will face. Trischan is the director of commercial underwriting at the E&K Insurance Group in Eatontown, N.J. She is a regular speaker for PIA Northeast and in The National Alliance’s CIC, CISR and Ruble programs.

PROFESSIONAL INSURANCE AGENTS MAGAZINE

JULIE BERNARD AND SAM FRIEDMAN Deloitte

Overcoming challenges to cyber security insurance growth The role of agents and brokers

It seems hardly a day goes by without a report of a new cyberattack. Sixty-one percent of companies surveyed worldwide by Hiscox reported one or more events in 2019—up from 45% a year earlier—with both frequency and severity rising considerably. And, while the headlines usually feature hackers targeting the largest companies, the Hiscox survey found that 63% of mid-sized firms recorded an event last year—up substantially from 2018’s total of 36%. The survey also found that the mean cost of an event for mid-sized companies more than quadrupled, from $44,000 to $184,000, in part due to increasingly frequent ransomware attacks. Given such a risky environment, you might expect the market for a dedicated, standalone cyber insurance policy to be expanding exponentially. Yet, the industry still has a long way to go to fulfill such expectations. Not too long ago, some in the industry were predicting that cyber security premiums could reach $20 billion or more by 2025. In fact, net written premiums in the U.S. totaled only $1.94 billion in 2018—with 58%

($1.12 billion) generated by standalone policies and the remaining 42% by cyber security coverage included in standard commercial policies (see Figure 1). Figure 1. U.S. cyber security insurance premium growing slowly Cyber insurance direct premiums written (millions)

2,500 1,935

2,000

1,740 825

1,500

746

1,202 1,000

883

281

395 500

994

1,110

2017

2018

921 488

2015

2016

Packaged cyber insurance

Standalone cyber insurance

Why does there seem to be such widespread reluctance to buy standalone cyber security insurance, particularly among middle-market companies? Given the amount of press coverage cyberattacks have received—particularly in the wake of widespread phishing and ransomware PIATN.COM

attacks—awareness of the exposure should not be lacking. Cyberrisk is also front and center as a key exposure for management and boards to address, given all the new cybersecurity, privacy, and data use regulations put in place. To help address this challenge, the Deloitte Center for Financial Services surveyed 504 middle-market commercial insurance buyers from five industries (i.e., health care, retail/wholesale/e-commerce, power/utilities/energy, manufacturing/logistics/transportation, and financial services), as well as 103 agents and brokers to gain the seller’s point of view. (“Middle market” was defined as companies with more than $250 million, but less than $1 billion in annual revenue.) Reasons middle-market companies pass on standalone cyber security coverage We asked nonbuyer respondents to list all the reasons they didn’t have a standalone cyber security policy, as well as to rank their top three reasons among those chosen (see Figure 2). Figure 2. Why respondents don't buy standalone policies Q: Why hasn’t your company purchased a standalone cyber insurance policy? (Check all that apply) 41%

Cost was too high

Insurance product issues

34%

Coverage limits were too low Had a standalone cyber insurance policy but was not satisfied with it

33%

Coverage terms and exclusions were too restrictive

29%

Coverage terms and conditions were unclear

Distribution issues

23%

Broker/agent has not suggested it

22%

Broker/agent advised against buying a standalone cyber policy

21%

Current insurers don't offer standalone cyber insurance Didn't know cyber coverage was available as a standalone policy

Buyer issues

Prefer alternative self-insurance options Already have a coverage for cyber risks in other standard property and liability policies*

30% 17% 27% 43%

Note: Respondents could choose more than one option * Only asked of nonbuyer respondents with cyber in standard policies

Cost of coverage was the top reason surveyed health care and financial services buyers cited, and second in the other three industries examined. In addition, many prospects are being put off by the lack of value they perceive in standalone policies. Indeed, “coverage limits too low” was cited by 34% of all respondents without any cyber security coverage, while 29% said coverage terms and exclusions were too restrictive. Our survey revealed another major hurdle: The reason many companies do not have standalone coverage (cited by 43% of all nonbuyer respondents) is because they already had cyberrisks packaged into their standard property and liability policies. This was the top reason cited by respondents in retail/ wholesale/e-commerce, while coming in second among financial services respondents. Agents and brokers surveyed also rated this the No. 1 obstacle to selling standalone coverage. There is a major educational challenge to convince policyholders they need standalone coverage, at least to supplement, if not substitute for any cyber security coverage they may have in standard policies. One possible concern is that one-third of nonbuyer respondents said they “had a standalone policy at one time but were not satisfied with it.” That was the No. 2 obstacle raised by agent/broker respondents. Poor claims experi-

PROFESSIONAL INSURANCE AGENTS MAGAZINE

ence often was cited as a deciding factor, along with concerns about cost as well as insufficient and/or unclear coverage. Getting agents and brokers on board with support Another potentially problematic finding was the tepid support for standalone coverage among many agents and brokers. More than 20% of nonbuyer respondents said they didn’t have standalone either because their agent or broker had not suggested it or they had advised against purchasing it. Only one-half of those without coverage said their agent had even approached them about standalone insurance without being asked, versus two-thirds of those who had bought a standalone policy. Meanwhile, respondents who have standalone are more likely than those without any cyber security coverage to be satisfied with their agents’ knowledge of cyberrisk and assessment of their cyber insurance needs. This raises a fundamental challenge for many insurers offering standalone—convincing their own distribution force to market the product enthusiastically, and training them to be able to do so more effectively. Part of the problem could be the additional time and effort agents and brokers often need to devote to standalone sales. One way this could be addressed would be to offer agents and brokers higher commission incentives for sales to first-time buyers. Not surprisingly, having first-hand experience with a cyberattack seemed to make a big difference in the purchasing behavior of those surveyed (see Figure 3). About onethird of all buyer respondents cited an attack against their company as a motivator to get cyber security insur-

ance. Indeed, 74% of those with both standalone and coverage in standard policies had a cyber-related loss in the prior three years, while only 36% of those without any cyber security coverage said they had experienced an attack. Figure 3. Fear motivates the purchase of standalone policies Reasons companies bought a standalone cyber insurance policy 32%

Reaction to a cyberattack against my company

33%

Hearing about cyber insurance in the media

Fear factors

Reaction to cyberattacks against other companies in my industry

37%

Reaction to cyberattacks against companies in other industries

41%

Reaction to cyberattacks against companies in my supply chain

38%

Reaction to cyberattacks against my vendor(s)

33% 41%

Results from an independent company’s cybersecurity risk assessment

Other factors

27%

A recommendation from my broker/agent

31%

A request/demand from a major client

31%

Therefore, insurers should be arming their distribution force with the latest statistics to highlight the likelihood and potential fallout of a cyberattack for those unfamiliar with the risk or the insurance available to cover it. They also should use real-life examples as case studies to demonstrate not only how a standalone policy might help mitigate the damage of an attack, but why, in many circumstances, coverage in a standard policy alone may not get the job done. Indeed, a distributor’s opinion can make a big difference once the subject is broached. Twenty-seven percent of respondents who already had cyber security coverage in their standard policies said their agent/broker’s recommendation was the top reason they, ultimately, bought standalone coverage. How could standalone cyber security insurance expand in the middle market? Even though nonbuyers cited a host of reasons why they didn’t have a standalone policy, 56% of those surveyed without any cyber security coverage said they were likely to buy one in the next two years, along with 61% of those who already have coverage in standard policies. Insurers and intermediaries are likely to consider several options for converting skeptical prospects into standalone policyholders: Rethink pricing strategies. Nonbuyers surveyed said if they did buy standalone, their No. 1 motivator would be lower prices. The question is how to address an issue as fundamental yet problematic as pricing. At Advisen’s 2019 Cyber Risk Insights Conference last October, speakers from various cyber underwriters and brokers indicated that technical rates (based on actuarially sound analysis and probabilistic models) are still generally the exception rather than the rule. As a result, many carriers may be relying on market rates, driven by what the competition is charging. Even so, while insurers should be able to stratify pricing by industry and type of business, reliable technical pricing may remain elusive, given the evolving nature of cyberrisk. This volatility also could render historical data somewhat irrelevant as new threat actors and attack techniques continue to emerge, such

PIATN.COM

as the latest attacks stemming from coronavirus-related schemes, as well as the added cyber security pressure being put on chief information security officers whose companies transitioned from office-based to a largely remote workforce during the outbreak. Insurers also should be wary of aggregation risks, in which a single cyber security event potentially could trigger multiple losses under different policies or impact many customers simultaneously and result in a cyber security catastrophe. Upgrade the value proposition by adding services, incentives. Alternatively, rather than ease price resistance by cutting rates, insurers could add value by including standalone coverage as part of a comprehensive cyber security program. Thirty-one percent of nonbuyer respondents without any cyber security coverage cited this as a factor that could convince them to buy a standalone policy. The addition of service offerings to standalone was ranked as the third most persuasive development that could lead to a sale, topped only by a lower price and being hit by a cyberattack. Twenty-four percent of those with cyber security coverage included in standard policies also cited this factor. In addition, a 2018 Deloitte survey examining how middle-market insurers and their intermediaries could differentiate themselves by offering a broader range of products and services found buyers particularly were interested in cyber security support to prevent or contain attacks. About 60% of agents and brokers surveyed for this cyber insurance report already are offering complementary cyber security services. Among the services agent/ broker respondents said they can arrange are cyber incident response,

crisis management, and forensics support, as well as loss-control advice and training. A prime purchase motivator for standalone buyers surveyed was “results from an independent cyber security risk assessment,” a factor cited by 41% of respondents. Insurers and their intermediaries could start a standalone pitch by arranging a cyber security assessment by an independent third party, with ongoing risk-management services offered as part of a standalone purchase. Fifty-five percent of agents/brokers surveyed said they can “routinely provide cyber security assessments by qualified specialists.” Some carriers, brokers, and professional services providers already are working together to deliver cyber security support beyond risk transfer, just as they often do with other specialty lines. For example, at least one major broker is partnering with an array of insurers to help clients pick effective cyber security products and services, while a cyber insurer has launched a series of partnerships to offer cyber security legal support and crisis management. Educate agents and brokers. Agent/broker training likely is essential to grow the market substantially. Insurers should demonstrate to their intermediaries how standalone cyber security policies can close coverage gaps in a client’s insurance portfolio, and therefore, should be purchased as routinely

as are other common specialty lines, such as directors & officers or employment practices liability insurance. On the other side of this argument, intermediaries also should be made aware of the potential professional liability exposure they could face if an uninsured or underinsured client is hit with a cyberattack. Consider what happened after Superstorm Sandy, when many businesses sued their agents for failing to recommend separate flood or business interruption policies to supplement their standard property coverage. Cyber security insurance remains a promising growth opportunity. Indeed, A.M. Best “expects the current profitability of cyber insurance to attract more competition,” particularly “as cyber insurance moves from being a luxury to a necessity.” This can occur, according to the rating agency, “as businesses become more cognizant of the risks involved,” which means that eventually, cyber security insurance may yet turn out to be “an essential part of an insurer’s portfolio of offerings.” Agents and brokers have an important role to play in helping their clients manage this risk. Bernard is a principal with Deloitte Risk and Financial Advisory and a Cyber Risk Services leader with Deloitte & Touche LLP. Reach her at juliebernard@deloitte.com. Friedman is the insurance research leader at the Deloitte Center for Financial Services. Reach him at samfriedman@deloitte.com.

PROFESSIONAL INSURANCE AGENTS MAGAZINE

Is COVID-19 changing your clientsâ&#x20AC;&#x2122; exposures? There is no doubt that the novel coronavirus (COVID-19) is causing major issues for businesses of all sizes, primarily a loss of revenue. However, there are some other potential issues that your clients may be dealing with that could have insurance ramifications that you should be aware of, which include: Businesses being repurposed. COVID-19 caused many businesses to shut down, but others were conscripted for new purposes other than for which they were designed. Examples of this include schools being converted to day-care centers, theatres and auditoriums used for storing supplies, college dorms and hotels becoming makeshift hospitals. Restaurants changing focus. As a significant part of the nation is engaged in social distancing or shelter-in-place directives, restaurants are much more active in the delivery of their products to make ends meet. This change begs the questions: Who is acting as the delivery service, and do they have the proper insurance protection?

E&O

CURTIS M. PEARSALL, CPCU, CPIA

While there are moratoriums in place in several states to prevent carriers from canceling policies, this does not guarantee that the loss will be covered. Having your clients alert you to any changes in their business operations is a proactive way to address the current crisis, and it will put accountability on your clients to advise you of their changing exposures.

Manufacturers are switching gears. Manufacturers are retooling their production lines to make much-needed medical and personal protective equipment. There is immunity, in certain circumstances, under the Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, but these exposures should be assessed to determine if the new risk is anticipated by the current policy or policies. Vacant buildings. Some businesses have been forced to shut down, potentially resulting in vacant building scenarios. These are all issues agents need to be sensitive to and encourage their clients to bring to their attention. Will the insurance carriers be willing to continue on the coverage when the exposure is different from which they were aware? Will the policy, as written, respond to the current risk? It is best not to assume and to contact the carriers with new exposure information provided by your clients. Additionally, it is advisable to reach out to each of your clients by letter/email or via your agency website, and request that they advise you if there has been any modification to their business operation that would change the risk associated with that coverage. It is important that you document all responses and any declinations to modified coverages that are proposed.

PIATN.COM

Design+ Print (800) 424-4244 design.print@pia.org pia.org/design&print

Pamper your customer’s business with a policy from West Bend. Your customer’s business is their pride and joy. Now help them nurture it. An insurance policy from West Bend is the best way to keep it happy, healthy, and profitable. So wrap it in the cozy warmth of the Silver Lining®.

FOR IMMEDIATE RELEASE: April 17, 2020

Contact: Mary Ellen O’Connor moconnor@wbmi.com

WEST BEND OFFERS SUPPORT FOR COVID-19 RELIEF EFFORTS WEST BEND, WI - In response to COVID-19, West Bend Mutual Insurance announced efforts to help the greater community while the company gives back to its policyholders, agents, and associates. “One of West Bend’s operating principles is ‘We serve our community,’ and during this uncertain time, it was without question that we would extend support to all of the people who are critical to our organization,” said Kevin Steiner, president and CEO of West Bend Mutual Insurance. “We also remain committed to our policyholders and associates and will continually look for additional ways to support them and provide the Silver Lining during this pandemic.” Steiner added the company’s COVID-19 relief efforts for charities, as well as associates, are close to $750,000 in total. Here are some of the ways West Bend is helping communities get through the COVID-19 pandemic: ● Policyholders: On April 8 West Bend announced it is sending a one-time payment of $50 to Home and Highway® policyholders to provide some help in these uncertain times. These payments will be processed for those whose vehicles were insured with the company as of March 11, 2020, the date the World Health Organization declared COVID-19 a pandemic. In addition, the company is extending premium due dates for all policyholders impacted by the crisis and automatically provides coverage on personal vehicles used by employees of restaurants that now offer delivery services. ● Agents: West Bend partnered with several independent insurance agencies to support worthy organizations in their communities that help those impacted by the pandemic, such as food pantries, blood centers, and free clinics. If the agency committed to donating $500, West Bend pledged an additional $2,000. West Bend’s donations came from grants made through its Independent Agents’ Fund as part of the company’s Spirit of the Silver Lining Awards. All funds designated for these donations were distributed in early April. ● Associates: West Bend’s associates number more than 1,300, all of whom are committed to providing exceptional service to policyholders and agents. As a small gesture of support, West Bend gifted each associate with a $150 bonus to use as a donation to a favorite nonprofit organization or toward restaurant carry-out or patronage of local businesses, both as a reward for their hard work in these trying times and as a way they can show support for businesses and organizations affected by Safer-At-Home orders. ● Community: The West Bend Mutual Insurance Charitable Trust is awarding grants to more than 20 nonprofit organizations, many of which provide direct support or relief for the COVID-19 crisis in the community. The two largest donations were awarded to Feeding America and the Red Cross of Southeast Wisconsin, which each received $50,000 to aid their noble pursuits to provide food, shelter, and blood to those in need during this very uncertain time. “We are so grateful to partner with organizations like West Bend Mutual Insurance, who never waver in their commitment to their community,” said Patti Habeck, president and CEO of Feeding America Eastern Wisconsin. “Gifts large and small make a huge impact on those who are in need of hunger relief, especially now as we operate in uncertain times.” ADDITIONAL INFORMATION Organizations such as the Office of the Commissioner of Insurance, the Department of Insurance, and the Department of Commerce in each state have compiled resources that businesses and individuals in those states can refer to for information and/or help. Information is linked on our website under COVID-19 Resources.

PIATN.COM

Help Build Your Family’s Financial Future With

PIA Trust Insurance Plans INSURANCE PLANS DESIGNED WITH LOCAL AGENTS IN MIND As a PIA Member* serving Main Street America, you and your employees have access to a variety of highquality, competitively priced insurance plans. Plans available include:  Basic Term Life**  Voluntary Term Life  Dependent Term Life  Hospital Indemnity  Long Term Disability  Short Term Disability  Business Overhead Expense  Accidental Death & Dismemberment

PIA SERVICES GROUP INSURANCE FUND

*PIA National membership, when required, must be current at all times. **Only available if 100% employer paid and if the employer and 100% of the employees enroll. No medical underwriting necessary up to guaranteed issue limits.

For more information about PIA Trust Insurance Plans, please contact your local PIA Affiliate or call the Plan Administrator at 1-800-336-4759. Additional information is also available on-line at www.piatrust.com. Policies or provisions may vary or be unavailable in some states. Policies have exclusions or limitations which may affect any benefits payable. Underwritten by Unimerica Insurance Company, Portland, ME. Administered by Lockton Risk Services.

Because Nothing Happens Until Someone Makes a Sale

Certified Professional Insurance Agent (CPIA) Designation Sales isn’t a natural skill for many people. Even among the most talented sales professionals, there’s always room for improvement.

Our Sales Expertise. Your Goals. If you want to sell more, you need to learn more. However, cookie cutter sales training is seldom the best solution. Instead, you need education that is built around your unique realities.

Action. Not Theory. The AIMS Society has decades of experience developing curriculum and facilitating sessions for the Certified Professional Insurance Agent (CPIA) designation. Every aspect of our coursework is designed to help participants gain insight and practical skills that can be applied right away. There’s simply no more business as usual when everyone begins approaching projects with a customer-first sales mentality. The focus at the AIMS Society has always been on tactics and sales information that are realistic and applicable to actual business situations. Position for Success – CPIA 1 Participants focus on internal and external factors affecting the development of effective business development plans. Factors discussed include a review of the state of the insurance marketplace; analysis of competitive pressures; necessary insurance carrier underwriting criteria; and consumer expectations and understandings. Throughout each section of the workshop, tips for preventing errors and omissions (E&O) are highlighted. Implement for Success – CPIA 2 Attendees discover specific tools for analyzing consumer needs. They also learn to utilize risk identification techniques to gather pertinent prospect information, develop skills necessary to assimilate collected information into a customized protection program and participate in exercises designed to promote effective delivery of proven solutions. As in CPIA 1, tips for preventing E&O are discussed. Sustain Success – CPIA 3 This program focuses on fulfilling the implied promises contained in the insuring agreement. Students will review methods of providing evidence of insurance coverage and will discuss policies and procedures to control errors and omissions, including policy review and delivery, endorsements, claims-processing and handling of client complaints. Also included is a review of professional expectations; the law of agency; and legal and ethical standards. Our emphasis on providing tips for preventing E&O continues.

CPIA faculty are fabulous, the best in the business. They bring true life examples and excitement into the program. Attendees leave class with a renewed vigor and bring this feeling with them back to their places of employment. They are excited about their insurance careers. Interaction is the highlight of the program, not only between instructor and attendees, but also between attendees themselves. Great ideas are shared and everyone in class feels a shared sense of commonality and togetherness. - CPIA Sponsor Kelly O’Connell Education Manager

“Sales” and “marketing” are not the exclusive responsibility of the sales team. Every interaction can impact sales. Therefore, we believe our designation is ideal for anyone with consistent interaction with people outside the organization.

2020 PIA of Tennessee Partners

PLATINUM PARTNERS

GOLD PARTNERS

SILVER PARTNERS

BRONZE PARTNERS

(as of 2/27/20)

from the people stronger

who

customer satisfaction

know.

stronger

coverage

stronger

loss control

stronger

defense

TENNESSEE

Continuous E&O protection since 1966.

504 Autumn Springs Court Suite A-3 • Franklin, TN 37067 Phone: 615-771-1177 • Fax: 615-771-3456 Contact: Kristopher Fisher, kfisher@piatn.com Visit: www.piatn.com

2020 Summer Edition Professional Insurance Agents of TN

Articles inside

Legal

In brief

E&O