wisconsin INDEPENDENT AGENT OCTOBER 2020
Thank you! 2020-2021 Exclusive Company Members
CONTENTS wisconsin INDEPENDENT AGENT OCTOBER 2020
Thank you! 2020-2021 Exclusive Company Members
COVER STORY: Exclusive Supporting Company Member Ads & Profiles Our Exclusive Supporting Company Members provide significant support to the IIAW so that we can continue to bring industry-leading products, services and world-class events and resources to our members. We thank them for their continued partnership, involvement and support of the independent agency channel. In this issue, learn more about these great companies.
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4-18
MEET THE TEAM...........................................................................3
INDEPENDENT INSURANCE AGENTS OF WISCONSIN 725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com
2020-2021 EXECUTIVE COMMITTEE President:
Darrel Zaleski | Spectrum Insurance Group, Eau Claire
President-Elect:
Marc Petersen | American Advantage - Petersen Group, New Berlin
Secretary-Treasurer:
Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield
Meet the New Members of our 2020-2021 Board of Directors
Chairman of the Board:
INSURANCE BARTENDER..........................................................20-21
State National Director:
Schedule Rating Update & City of Milwaukee Contractor Insurance Requirements
RISKY BUSINESS.............................................................................22-23
Chris Costakis | Midwest Insurance Group, Delafield Steve Leitch | Leitch Insurance, River Falls
2020-2021 BOARD OF DIRECTORS
The Power of People
Mike Ansay | Ansay & Associates, Port Washington
ASK AN EXPERT.............................................................................24
Mike Harrison | R&R Insurance Services, Inc., Waukesha
Q: Nonrenewal of D&O Liability Insurance - Are Directors and Officers Still Covered?
GOVERNMENT AFFAIRS.............................................................27
Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake Dan Lau | Robertson Ryan & Associates, Milwaukee Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine
IIAW Joins Coalition Supporting COVID-19 Premises Liability Legislation
Chad Tisonik | HNI Risk Services, LLC, New Berlin
VIRTUAL UNIVERSITY.................................................................28-29
Jonathon Zwettler | Baer Insurance Services, Middleton
COVID-19 and Commercial Property Vacancy Coverage
COVID-19...........................................................................................31 Lessons to be Learned in the 2020 ISO Emerging Issues Bracket Challenge
MEMBERS IN THE NEWS..............................................................36-37 COMMENTARY FROM COUNSEL...............................................38 COVID-19 Vaccine Will Force Employers to Make Tough Decisions
FOOD FOR THOUGHT....................................................................39
ADVERTISERS INDEX AAA......................................................................25 AMERISAFE......................................................21 Badger Mutual.................................................39 Berkshire Hathaway GUARD....................34 DAIS......................................................................35 Erickson Larsen...............................................18 IMT........................................................................40 Penn National...................................................30 Robertson Ryan and Associates..............39 West Bend..........................................................26 Western National............................................33
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wisconsin INDEPENDENT AGENT
| OCTOBER 2020 |
wisconsin INDEPENDENT AGENT
Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa
IIAW Staff Matt Banaszynski | Chief Executive Officer 608.256.4429 • matt@iiaw.com Mallory Cornell | Vice President and Director of Risk Management 608.210.2975 • mallory@iiaw.com Kim Kramp | Association and Agency Accounting Manager 608.210.2976 • kim@iiaw.com Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com Kaylyn Zielinski | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com Evan Leitch | Technology and Risk Advisor 608.210.2971 • evan@iiaw.com Andrea Michelz | Membership Engagement Coordinator 608.210.2972 • andrea@iiaw.com Diana Banaszynski | Education Coordinator 608.256.4429 • diana@iiaw.com
Wisconsin Independent Agent is the official magazine of the Independent Insurance Agents of Wisconsin (IIAW) and is published monthly by IIAW 725 John Nolen Drive, Madison WI 53713. Phone: 608.256-4429. IIAW does not necessarily endorse any of the companies advertising in publication or the views of the writers. IIAW reserves the right, in its sole discretion, to reject advertising that does not meet IIAW qualifications or which may detract from its business, professional or ethical standards. © 2020 For information on advertising, contact Kaylyn Zielinski, 608.210.2977 or kaylyn@iiaw.com.
MEET THE TEAM
MEET THE NEW MEMBERS OF OUR 2020-2021 BOARD OF DIRECTORS
JONATHON ZWETTLER
DAN LAU
BAER INSURANCE SERVICES
ROBERTSON RYAN & ASSOCIATES
A little about you: I joined Baer Insurance a little over two and a half years ago as the Development Manager. I have been in the insurance industry for over 10 years in a variety of different roles.
A little about you: I currently live in Mukwonago, WI with my two children and dog. I love being outside with my kids and enjoying various adventures with them. I recently started coaching my daughter’s soccer team and I’m a den leader with my son in Cub Scouts. My current role with the agency is VP of Operations and I’m an UW-Whitewater alumni.
My wife, our two dogs and I are currently living in an apartment while our house is being built and it has been an interesting adventure. The dogs miss their yard but certainly enjoy meeting the other dogs at the apartment building. When I’m not at home or at work, I am usually either playing tennis or golfing every chance that I can.
What do you hope to accomplish while on the IIAW Board of Directors? I hope to continue to support the initiatives that the IIAW has established and I look to focus on technology that will help support the success of the independent agent.
What do you hope to accomplish as the Emerging Leaders Committee Chair? My main goal with the group this year is to find different ways to keep us connected, even if that needs to be mostly in a virtual environment. I am also hoping we can find some creative ways to get back some fundraising efforts.
What do you see as the biggest challenge and opportunity facing the IA channel currently or in the future? One of the biggest challenges is the direct to consumer options that bypass the IA channel. I think one of the biggest opportunities is how we can embrace change and evolve to do business using technology.
What do you see as the biggest challenge and opportunity facing the IA channel currently or in the future? I think the biggest challenge for the IA channel is the ability to adapt more quickly than we have ever before; from changing technology to new competitor threats.
Any life advice or favorite quote? Doc Brown: “Marty whatever happens don’t ever go to 2020!”
I think this year more than any other we have proven as an industry that we are up to this challenge. If you would have asked most agencies at the end of 2019 if they thought they could have remote workers, the answer from most likely would have been a resounding no. Many agencies were able to quickly adapt (and adapt successfully to this model in a very short period of time.
Non-insurance prediction for 2020? The Cubs will not win the World Series.
Any life advice or favorite quote? Tell me and I forget. Teach me and I remember. Involve me and I learn. - Benjamin Franklin A book you recommend people read? “Extreme Ownership” by Jocko Willink and Leif Babin
A book you recommend people read? Wisconsin Independent Agent Magazine
JOIN US IN WELCOMING JONATHON AND DAN TO THE 2020-2021 IIAW BOARD OF DIRECTORS.
Non-insurance prediction for 2020? Tiger Woods will win this year’s Masters.
wisconsin INDEPENDENT AGENT
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introducing our 2020-2021 Exclusive Company Members
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OCTOBER 2020 2020 || || OCTOBER
wisconsin wisconsin INDEPENDENT INDEPENDENTAGENT AGENT
For more information on AAA Products and Services visit aaa.com or to become a AAA Independent Agent Contact Leo Plese at (630) 328-7076 or lmplese@acg.aaa.com
OPEN SEMCI Single-entry, multiple-company interface (SEMCI) is like magic!
Acuity, long recognized as a leader in agency interface technology, is committed to supporting SEMCI in commercial lines. SEMCI drives efficiency in the quote and application process and allows you to choose how you want to do business with Acuity. Acuity currently partners with several of the leading commercial lines insurtechs. We are building, exploring partnerships, or expanding with numerous other independent agency technology solutions. And Acuity is on the forefront of integration technology, continually building the connections necessary to be ready to connect to new insurtechs as they emerge.
IT’S THE SIMPLE THINGS THAT DIFFERENTIATE US FROM OUR COMPETITORS. We are a strong Midwest regional carrier that values our relationships with independent insurance agents. PRODUCT LINES IMT Insurance offers personal and commercial insurance products to help protect families, homes and businesses. We strive to offer great insurance products and exceptional service for a competitive price. These products include car insurance, home insurance, business insurance, farm liability, umbrella insurance and surety/fidelity bonds. INDEPENDENT AGENTS People buy their insurance from independent agents because they know them, like them, and trust them. That is exactly the reason independent agents do business with IMT. We use our strong partnership with Wisconsin Independent Agencies to meet and exceed the needs of our personal and commercial lines clients.
TECHNOLOGY IS OUR STRONG SUIT Technology is a vital part of our business at IMT and have won awards for our innovative technology. We develop and maintain our own policy systems – all from our home office. Our systems are companytested and agent-approved. In addition, we are committed to helping our agents succeed with resources and content for social media, video and digital advertising. ABOUT IMT IMT is proud of our heritage and will never forget where our roots are firmly planted. Locally run from our home office in West Des Moines, Iowa, IMT has been a Midwest company since it was founded in Wadena, Iowa in 1884. That’s more than 130 years! Today, IMT continues to offer the strong line of personal and commercial insurance products for which it has always been known through Independent Agents throughout our six-state territory – Iowa, Illinois, Minnesota, Nebraska, South Dakota and Wisconsin.
Are you a local independent agent interested in learning more about IMT products and services? Contact Troy Neil at 800-274-3531, x730.
imtins.com | 800-274-3531
BOUTIQUE. INTENTIONAL. RELATIONSHIPS. It’s the meaningful relationships and investment in innovative solutions that make it easy for agents to do business with us.
Come grow with us: Contact Sales Director Cathy Colón at 920.968.9326 or ccolon@imico.com
You understand your clients. Liberty Mutual Insurance and Safeco Insurance understands how to support them. We know your clients’ needs are unique. That’s why we work with you to customize coverage exclusively for them. Talk to your territory manager or visit LibertyMutualGroup.com/Business or Safeco.com to learn more.
Creating effortless, personal, respectful and responsive customer experiences Partner with us if you are seeking: • A mutual carrier solely focused on agents and policyholders • Local managers who understand your operating territory • Access to an executive management team eager to get to know you • The ability to have merit-based conversations about decisions impacting your agency • Consistency in underwriting approach • A claims team that dependably earns high service marks • A carrier always seeking ways to make the experience better for agents and policyholders Better and stronger together We offer the strength, product portfolio and automation efficiencies of a super-regional-size, 11-state carrier, combined with the agentfocused, customer-first priorities of a mutual company.
Who We Are In 1919, a Pennsylvania farmer’s association founded Penn National Insurance to provide farm-related workers’ compensation insurance to its members. Today, we do business in 11 states, including a broad variety of business insurance and personal auto and homeowners insurance. And, we changed from an agricultural focus to a service-economy focus. In 2012, we affiliated with Wisconsinbased Partners Mutual Insurance, and continued our tradition of delivering personal attention with a local presence in Wisconsin and Iowa and the regional strength and services of a super-regional carrier. True to our roots, we are still a mutual insurance company, which means we operate for the benefit of our policyholders through providing superior customer service, and bringing innovative products and services to meet the ever-changing needs of the marketplace.
Agents know us as: • Vibrant • Innovative • Resilient • Personable • Bold • Persistent
Diverse array of commercial and personal coverages Penn National Insurance values the relationships we have with our agents as part of the underwriting process and placement of accounts with us. We offer a diverse portfolio of products and services to meet today’s customer needs. In addition to the traditional Commercial and Personal insurance coverages, we offer a wide range of coverage-rich PennPac endorsements. PennPacs provide valuable coverage and limit enhancements on Business Auto, Businessowners, General Liability, Property, Workers’ Compensation and Inland Marine. Some additional endorsements we offer include: Cyber Security Insurance, Monoline Inland Marine, and Manufacturers’ Mechanics’ and Contractors’ Errors and Omissions Liability endorsement. For our Home and Auto policyholders, we offer great coverage at an affordable price, plus many additional coverages you can add at an affordable price that will help you feel secure. For homeowners, we offer Underground Utility, Loss Assessment and Identity Theft coverage. Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin. Contact Vicki Lentz at 262-432-3420, vlentz@pnat.com or Clayton Zogata at 262.432.3422, czogata@pnat.com.
Policies issued for domiciled businesses and individuals in Wisconsin and Iowa are underwritten under our affiliate, Partners Mutual Insurance Company. Some coverages are not available in all states.
Pictured left to right: Thomas Korber, vice president – Human Resources; Jacquelyn Anderson, senior vice president, CFO/treasurer; Robert Brandon, president; John Foster, senior vice president – Insurance Operations; and Karen Yarrish, esq., senior vice president, secretary & general counsel.
www.PennNationalInsurance.com
AGENTS OF
invention
A PARTNERSHIP BUILT ON UNLEASHING DATA Independent agent Seth Zaremba has set his agency apart and up for continued growth by blending art and science. Using data sharing and artificial intelligence, he and his team create seamless customer journeys, from acquisition to renewal. He values Progressive for its thought leadership, advanced technology, and consumer insights. Because, when it comes to strategy and innovation, “Progressive is playing chess while other carriers are playing checkers.� AgentsofProgressive.com
SETH ZAREMBA ZINC | BROADVIEW HEIGHTS, OH
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wisconsin INDEPENDENT AGENT
Vehicle insurance is provided by Progressive Casualty Ins. Co. & affiliates. Home and renters policies are provided and serviced by affiliated and third-party insurers who are solely responsible for claims. Prices, coverages, and privacy policies vary among these insurers.
Making insurance genuine. SECURA isn’t like other carriers, and we’re proud of that. We put the independent agent and your customers - first. Our independent agents value the long-term partnerships they find with SECURA and our commitment to quality coverage and service. Here are just a few of the reasons they love to work with us. •
•
Genuine people – Passionate, experienced associates committed to excellence and service, both for our agents and policyholders Expansive product portfolio – Broad coverage for Commercial, Personal, Farm-Ag, and Specialty lines
Dave Gross President & CEO
Competitive coverage options SECURA exceeded expectations in 2019 with $728 million in direct written premium, and we’re positioned to continue this trend of profitable growth for years to come. •
Commercial Lines is SECURA’s largest business unit. Our expanding appetite for contractors, retail, restaurants, and numerous other markets offer coverage to fit your clients’ needs.
•
Personal Lines coverage options include our MILE-STONE® home and auto package policy, which offers the added security of Roadside Rescuer℠ and Travel Rescuer℠.
•
Easy to do business – Committed to agentfocused solutions to help you grow your business
•
Highly rated – Recognized by A.M. Best as A (Excellent) and Ward’s 50, not to mention high marks from agents and policyholders
•
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Motivated by mutual success – We meet our policyholders’ needs best by partnering with experienced, independent agents
Farm-Ag Lines taps the hands-on experience of former farm kids to underwrite farm-ag risks of all sizes.
•
Specialty Lines provides agents and prospects with an admitted carrier option for difficult-toplace business. Clients range from fitness centers to food trucks and special events to nonprofits.
Contact us today secura.net
It’s time to
get out of the
‘Pool’
Class Code 0006 0008 0042 5022 5102 5183 5190 5403 5445 5474 5537 7219 7231 7600 7605 8215 8279 8381 8742 8824 8835
Class Description Farm products — raising, harvesting and preparing for the market including driving Farm gardening — market or truck and drivers Landscape gardening and drivers (no above ground tree trimming) Masonry NOC Door and window installation — all types — residential and commercial Plumbing NOC and drivers Electrical wiring — wiring — within buildings and drivers Carpentry NOC (no roofing) Wallboard, sheetrock, drywall, plasterboard or cement board installation Painting or paperhanging NOC and shop operations, drivers (no lead paint abatement) Heating ventilation air-conditioning and refrigeration systems installation Trucking — NOC (no log, munitions, or liquid propane haulers) Mail, parcel or package delivery and courier or messenger service companies Telecommunications companies — all other employees and drivers (no cell tower work) Burglar alarm installation or repair and drivers Feed, fertilizer, hay or grain dealer and local managers, drivers (no manufacturing) Stable or breeding farm and drivers (no race competitions, rodeos or sportsman events) Gasoline station — retail, self-service Salespersons, collectors — outside (no automobile repossession services) Retirement living centers health care employees Home, public and traveling health care — all employees
Class Code 8842 8868 8869 9012 9014 9015 9016 9063 9082 9180 9403
Class Description Group homes — all employees, salespersons, and drivers College professional employees and clerical (smaller institutions only, no sheltered workshops) Child day care center professional employees, clerical and salespersons Building or property management, property managers and leasing agents and clerical Buildings and operations by contractors and drivers Building or property management — all other employees Amusement park or exhibition operations and drivers Exercise or health institution — all employees and clerical (community centers acceptable, excluding YMCA clubs) Restaurant NOC Amusement device operation NOC — not traveling and drivers (no fireworks, racing, skiing, or zip line operations) Garbage, ashes or refuse collection and drivers
© 2020 Society Insurance
Delivering more by focusing on less. Small detail. Big difference. Rather than attempt to be all things to every kind of business, we focus on the ones we know best—restaurants and bars, supermarkets, convenience stores, hotels and motels, medical clinics, artisan contractors and auto service shops—to deliver outstanding property, casualty and workers compensation insurance. Deep niche expertise, with insight into unique business risks, is how we cover the details that make the biggest difference to our policyholders. To discuss an agency appointment, give us a call at 888-5-SOCIETY or visit societyinsurance.com.
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wisconsin INDEPENDENT AGENT
West Bend Mutual Insurance Company Location of Company Headquarters: 1900 South 18th Avenue, West Bend, WI 53095 Founded: April 1894 Company Web site: thesilverlining.com What sets West Bend apart from other companies? There are many things that set our company apart, but these are the most important: 1. We develop and nurture strong relationships between agents and associates through personal contact, responsible actions, and a genuine concern for our valued partners. We use such means as agency performance programs, continuing education, and advisory boards to strengthen the bonds between agency and company and ensure our mutual success. With senior management, with the underwriting team, with billing, with claims, in fact with our entire company, you simply will not find a more dedicated, personal, community-oriented, and caring group of people. 2. With a broad personal lines coverage package, a full range of commercial products and services, insurance for specialty lines, and bonds, our robust product portfolio provides our independent agency partners with a market for a large percentage of the business they write. 3. Around this we wrap outstanding service. Our associates’ dedication and commitment to providing outstanding service to our policyholders and independent agent partners are the foundation of West Bend’s Silver Lining® brand, The Worst Brings Out Our Best®. Our priorities for 2020 We pledge our commitment to distribute our products through independent insurance agencies. We will continue to work with them to find new ways to meet the ever-changing needs of our policyholders. We know we have to make it easier for our agents and policyholders to do business with us. Our agents can rest assured the focus of our priorities and initiatives are the needs of our customers and our associates. At a time when other companies are paying less attention to relationships with their independent agency partners and choosing to distribute their products through multiple channels, West Bend remains dedicated exclusively to independent agents. – Kevin Steiner, President and Chief Executive Officer
thank you! 2020-2021 Exclusive Company Members
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wisconsin INDEPENDENT AGENT
CONTINUING
EDUCATION IIAW ONLINE EDUCATION & CE CLASSES 2020 DATE
TIME
COURSE
OCTOBER 06 07 07 08 12 13 14 15 19 20 21 26 27
12PM-3PM 8AM-11AM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM 12PM-3PM
When the Child Becomes the Parent - Aging Parents and Insurance Decisions
The Insured, Additional Insured vs. Named Insured Debate
E&O: Roadmap to Homeowners Endorsements and Personal Inland Marine
Commercial General Liability Coverages The New Commercial Auto... Business, Motor Carriers, and Auto Dealers Cyber Liability
Fiduciary and Employee Benefits Liability and Impact of Fair Labor Standards
Take Charge of Emerging Homeowners’ Insurance Trends Personal Auto Policy Ethics and the Law E&O: Commercial Property Coverage Gaps and How to Fill Them 10 Things Every Commercial Lines Agent Ought to Know Contractors Liability Exposures... Risk Analysis to Coverage Solutions
NOVEMBER 05 09 10 11 12
12PM-3PM 12PM-3PM 8AM-11AM 12PM-3PM 12PM-3PM
Life Insurance... Benefits for the Living Businessowners Policy (BOP)... Planning for the Unexpected Business Auto Coverage Take Charge of Emerging Personal Automobile Trends The Dirty Dozen
For more information and to register for these classes, visit iiaw.com/education.
QUESTIONS? CONTACT IIAW AT 608-256-4429 OR AT DIANA@IIAW.COM wisconsin INDEPENDENT AGENT
| OCTOBER 2020 | 19
INSURANCE BARTENDER
SCHEDULE RATING UPDATE & CITY OF MILWAUKEE CONTRACTOR INSURANCE REQUIREMENTS
Thank you!
I want to start off by thanking all our company sponsors. Without their support, the IIAW could not do what we do on behalf of the independent agency channel. Their support is critical to our mission of serving independent agents. As a member of the association, please take a moment the next time to chat with one of our company supporters and thank them for their support of your association.
Schedule Rating Update
the Rating Committee did not assent to the motion and the OCI abstained, the motion did not pass. We will continue to monitor the situation, but we hope, for now, the issue of advancing schedule rating in Wisconsin is dead. If more action is taken, we will be sure and communicate accordingly to our members and move aggressively to defeat it. The IIAW wishes to thank those carriers that voted against schedule rating and stood with their independent agency sales force in opposition. If you have any questions regarding the events that occurred and would like additional insight and information, please do not hesitate to contact me.
City of Milwaukee Contractor Insurance Requirements
As you may know, several carriers have been advocating for the implementation of schedule rating. Early last year the IIAW Board of Directors voted unanimously to oppose efforts within the Workers Compensation Rating Bureau (WCRB) to recommend to the Commissioner of Insurance that Wisconsin move to adopt schedule rating. As a result, IIAW Government Affairs Chairman Jeff Thiel and I have been very active in presenting at and attending WCRB meetings and voicing our opposition to any effort to adopt schedule rating. The IIAW has also discussed our opposition with Insurance Commissioner Mark Afable and his staff. On September 2, 2020 a motion was brought forward within the WCRB’s rating committee that would have advanced the exploration of schedule rating in Wisconsin. The vote on the motion resulted in a 6-6 tie. In the event of a tie, the motion goes to OCI to break the tie. On September 16th, the IIAW was notified that OCI had chosen to abstain from voting on the motion whether to move forward with further evaluating the extent of industry support for schedule rating in Wisconsin.Pursuant to WCRB Bylaws, Article XI, Paragraph 2, because a majority of members of 20
| OCTOBER 2020 |
wisconsin INDEPENDENT AGENT
Over the last month, I have been contacted by several agency members regarding whether the City of Milwaukee’s standards preclude permitting contractors who meet the City’s insurance requirements through surplus lines insurance. The City of Milwaukee (or one or more of its departments) has denied permits to contractors who seek to meet the City’s insurance requirements through surplus lines insurance. The City has relied on contract terms which require that a contractor’s insurance carrier “be authorized to sell insurance in the State of Wisconsin and . . . submit its agent’s license with the certificates [of insurance].” The City’s reliance on those terms appears to be misplaced. In working with IIAW’s Legal Counsel, Josh Johanningmeier, we reviewed the sample terms which the City has cited when denying contractor clients permits. According to the team at Godfrey & Kahn S.C., “the short answer is that the City’s standards likely do not preclude the use of surplus lines insurance. As an initial matter, Wis. Stat. § 618.41 permits domestic surplus lines insurers and nondomestic insurers that have not been licensed by the State to place surplus lines coverage in accordance with the statute. Such surplus lines insurers are, thus, “authorized” to sell insurance in Wisconsin.
In addition, published terms and conditions governing City of Milwaukee contracts require that contractors provide the City with a certificate of insurance that is either issued by a company licensed to do business in the State of Wisconsin or signed by an agent licensed by the State of Wisconsin. A contractor should thus be permitted to meet the City of Milwaukee’s insurance requirements through surplus lines insurance, provided the contractor supplies the City with a certificate of insurance signed by a licensed surplus lines agent.”
their insurance requirements. IIAW’s legal counsel has prepared a memo for the Association on this topic that is available to members to provide to municipalities in the event you are faced with a similar situation or interpretation. If you are, please do not hesitate to contact me to discuss the situation further and receive this memo.
> Matt Banaszynski
I wanted to share this information with you in the event you are having any similar issues with the City of Milwaukee or any other municipality as it relates to
The Grave Digger
CEO of IIAW
Matt’s Mixology
The Grave Digger cocktail is the perfect Halloween cocktail with familiar fall flavors and some fizz.
Ingredients
• 2 oz. hard cider • 1 oz Bourbon • Ginger ale, to fill • Crushed ice
Directions
1. In a 12-16 oz. tumbler or high ball glass, combine the hard cider and bourbon. 2. Fill the glass with crushed ice and top off to fill the glass with ginger ale. Recipe and photo courtesy of Boulder Locavore
WORKERS’ COMP IS ALL WE DO. CONSTRUCTION ROOFING AGRIBUSINESS WOOD PRODUCTS TRUCKING MANUFACTURING
800.897.9719 - amerisafe.com © 2020 AMERISAFE, Inc. AMERISAFE, the AMERISAFE Logo, and SAFE ABOVE ALL are registered trademarks of AMERISAFE, Inc. All rights reserved.
wisconsin INDEPENDENT AGENT
| OCTOBER 2020 | 21
RISKY BUSINESS
THE POWER OF PEOPLE “Coming together is a beginning, staying together is progress, and working together is success.” Henry Ford By now, we hope that you recognize this quote from Henry Ford as it has become somewhat of a compass for us here at the IIAW. On March 12th, the IIAW launched its COVID-19 website and vowed to bring together our community and offer support, encouragement, and direction in any way that we could. Likewise, we saw our members step up in ways they never have before. Yes, there was a continued focus on customers, but also a new sense of urgency and attention for communities and employees. As we continue our focus on “staying together”, the IIAW will be launching an Online Community to help facilitate networking, connecting, and supporting one another. And your participation will not go unnoticed. The IIAW wants to support your local communities through donations to area restaurants and non-profit organizations and will regularly be recognizing our conversation starters, thought leaders and reputable users in the Online Community. We couldn’t have done this without direction and support from our Exclusive Company Members, featured in this month’s publication. The amount of kindness and compassion that has spread across 22
| OCTOBER 2020 |
wisconsin INDEPENDENT AGENT
the state and the nation is beyond belief. Here are just a few ways that our Exclusive Company Members have had an impact on their communities in the past six months:
AAA: This company has done a great job of continuing to raise awareness of safe driving and is doing so by giving back to the community. The company joined forces with the Wisconsin Department of Transportation for the MSG2TEENS Driving Safety Video contest. In addition to this campaign, AAA donated over $100,000 in grants to assist public health, safety and law enforcement partners addressing the issue of marijuana impaired driving.
Acuity: Acuity is well-known for its community programs which have not skipped a beat during the last few months. The organization announced a $450,000 donation to the UW-Whitewater Cyber Defense Program to support the university’s commitment to providing education and awareness of cyber attacks. Acuity also recognized independent agents who were going above and beyond in serving their communities through their Acuity Agents Have Heart campaign.
Burns & Wilcox: The giving spirit runs deep throughout Burns & Wilcox and their efforts did not slow down during the pandemic. The company continued to support employees and their communities by dedicating the month of May as a month of giving. In addition, Burns & Wilcox donated $63,840 to benefit hunger-relief organizations including Feeding America and Forgotten Harvest.
IMT Insurance: With the headquarters in Iowa, the team at IMT acted when it came to storm clean up needs after Derecho devastated many areas of the state. The company also supported the American Cancer Society with sponsorships on multiple projects and supported local community projects by partnering with independent insurance agents during their 2020 Community Contest.
Integrity Insurance: The team at Integrity gave back in a big way and the employees were an important
part of their efforts. Through support of local community blood drives and filling backpacks for kids going to back to school, the team did not disappoint. In addition to these local events, the Grange Enterprise Gives campaign raised $490,160 to support the communities of their employees.
Liberty Mutual/Safeco: The team at Liberty Mutual took a strong stand in support of systemic racism and we applaud their efforts. The company donated $1,000,000 to the Equal Justice Initiative and matched employee donations to similar organizations. In a time of need, the Safeco team mobilized and headed West to set up Mobile Response Vehicle support centers for individuals impacted by the destructive wildfires in places like California, Oregon and Washington.
Penn National: The United Way does amazing things for local communities and Penn National showed their support this year by donating $50,000 towards COVID relief efforts. In addition to their financial support, the company donated 19,000 face masks to a Pennsylvania hospital to show support for the tireless work of healthcare professionals.
Progressive: Progressive is no stranger to giving back to communities, but this year it is the Big “I” that is extending a huge thank you. The company donated $2,000,000 to establish the Trusted Choice COVID-19 Relief Fund. The
fund allowed independent insurance agencies to apply for grants through the national Big “I” and provided financial relief for many agencies during a time of uncertainty.
They also partnered with local independent agents to donate 375 meals to organizations helping people in need.
SECURA: This company has put in the time, effort and hard work to help their community and was recognized for their efforts. SECURA was named one of the Top 10 Generous Workplaces by the United Way of the Fox Cities. Whether they are partnering with local independent agents to provide financial support for community programs or holding their first annual plant sale in the parking lot, this team is giving back!
West Bend Mutual Insurance: The West Bend Mutual Insurance Charitable Trust provided grants to more than 20 nonprofit organizations to directly support COVID relief efforts in local communities. Two of these organizations were Feeding America and the Red Cross of Southeast Wisconsin who each received $50,000 to help with their relief efforts during these uncertain times.
SFM: The SFM Work Comp Experts are dedicated to their communities and to helping provide future opportunities for young people looking to further their education. This year, the SFM Foundation awarded 14 post-secondary scholarships totaling $250,000. When the future can seem daunting, we thank you for making it a little brighter for these students!
Society Insurance: During these times, many families struggled to put food on the table due to the economic impact of the pandemic. That is where Society stepped up in a big way. The company provided financial support to the Coronavirus Rapid Response Fund at Feeding America of Eastern Wisconsin.
This is truly remarkable…and only a piece of what you have done to support the people within your communities. During a time where there is so much negative media, the Facebook posts and Twitter feeds filled with stories of people supporting one another remind us how powerful we can be when we work together. Watch for an invitation to join the IIAW Online Community so that we can continue to support our communities, together. Keep up the great work!
> Mallory Cornell,
IIAW Vice President and Director of Risk Management
wisconsin INDEPENDENT AGENT
| OCTOBER 2020 | 23
ASK AN EXPERT
?
VIRTUAL UNIVERSITY
Q: Nonrenewal of D&O Liability Insurance - Are Directors and Officers Still Covered? Recently, the board of directors for a statewide landlord association, of which I am a part of, decided not to renew their directors and officers (D&O) liability insurance. They cited my state’s nonprofit corporation act as the basis for their decision stating that the act provided protection to board members based on this provision: “No director shall be personally liable to the Association for monetary damages for breach of fiduciary duty as a director except for (i) a breach of the director’s duty of loyalty to the Association; (ii) acts or omissions not in good faith or which involve intentional misconduct or knowing violation of the law; (iii) any transaction from which the director derives an improper personal benefit; or (iv) as further defined in [State code section omitted].” Does this mean D&O insurance for non-profits in this is no longer needed, or does it just greatly reduce the risk?
A: You will notice all of the “excepts” which means coverage is still very needed. Also, people can still be sued for many things and will need defense to show why they are not responsible. ---------They should ask their corporate lawyers since this requires legal advice. ---------I don’t see that it reduced anything. It addresses liability TO the association, not to third parties who might sue them. ---------If someone sues the board member where are they going to get their defense? Ok, maybe the law helps them but who’s paying for the attorneys going to court to prove that the claim is barred, if it is barred? Remember insurance premium are KNOWN, defense cost and judgments are UNKNOWN, most would rather pay the known premiums so they don’t have to worry about the unknown. ---------What if you get sued? Who’s paying to defend the Ds and Os? ---------Look who they are NOT personally liable to - the association. It doesn’t say anything about others. Further, it’s only for fiduciary duty - no acts or decisions. I think that was a bad decision on the board’s part. ---------I think the board should maintain its coverage for several reasons. Our business is based on the re-interpretation of legal tenants, that in theory are codified by the legislature that their actions and or inactions have been deemed not responsible for such causation as not being recoverable. I especially appreciate the sentence “knowing violation of the law”. That obviously eliminates the theory that ignorance is no defense under the law. If you knowingly violate the law does that not make you guilty of some other codified section of the law but damages still will inure itself to the plaintiff. Will that theory withstand the upcoming legal challenges by denying the 2424 | |OCTOBER OCTOBER2020 2020| |
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right to recourse of civil actions not specifically addressed in the law? One must presume that because the legislature has so deemed that no recourse exists until the law is overturned by the state or federal court of appeals. If that does occur and the action is returned to lower court to be adjudicated and now that law has been overturned thereby relieve the defendant of protection from the litigant or parties to the litigant. If your BOD is willing to have each member of the BOD sign waivers of indemnity in perpetuity from any and all future or previous litigation you may have a leg to rest upon. I would advise in a most positive method explain to your client how often laws are reversed or amended. The first 5 hours of billed time in 15 minute increments will have easily covered the cost of the premium proposed. Now think of your own E&O issue for the reasons in a very short response to your question. ---------Like most Volunteer Protection Acts the directors are not held labile. However, the laws do not prevent a suit from being filed. If a suit is brought a court may have to determine if the law applies to the allegations. If you don’t have D&O who will be paying for the defense? Substantial funds may be required to defend against even a frivolous claim. Are you ready to put up your own personal funds since there is no coverage for you under personal insurance policies for the types of claims that arising out of board service? Even though some umbrellas have an exception for service on a not-for-profit board the umbrella responds to BI and PD claims. That is not what director suits deal with. Does the organization have the funds to pay for the defense? Also, the law provides protection for the directors only; you didn’t indicate if the previous policy provided any protection for
the entity. If it was also covered under the previous D&O policy, where does the organization now have protection if the claim is against them alone or in conjunction with the board? Since the 80’s the majority of claims against not-for-profits has been employment practice claims. Do they have separate coverage? Did they have the EPL coverage as part of the expired D&O? ----------
coverage. In other words, there are things that can happen that are not covered by the statutes but ARE covered by your D&O policy. Making that determination, however, is not agent work, it’s lawyer work, and if you get it wrong, you’ll either be accused of practicing law without a license or you’ll be sued for an E&O. ---------This is a legal question that should be answered by the Association’s attorney. That being said, note the statute applies only to personal liability of the individual directors. The entity is not provided protection by this statute. If the entity has no assets coverage may not be a big deal, or it may be. Once again, legal advice needed here. Also, any fool can sue - without a D&O policy, there is no defense coverage for the individual directors to pay for a defense against aforesaid fool.
It’s a question that requires input from a lawyer because it requires a comparison of the “protection” provided by the statute and the coverage provided by the insurance. Without attempting that comparison (because I’m not a lawyer and because I haven’t got time to do it) I’m 100% certain that the statute provides some of the same protection as the D&O policy; but I’m equally certain that the statute doesn’t perfectly duplicate the D&O
As an aside, I would note that some personal umbrella policies cover insureds who sit on nonprofit boards but only for the perils covered by the personal umbrella (typically BI, PD, and PI), so PUP coverage may not be adequate. ---------As a non-attorney, my reading of that statute focuses on the text pertaining to “breach of fiduciary duty.” The actual fiduciary duty may be small. Yet, the possibility of miscellaneous errors and omissions as a director may be high. D&O coverage is still needed. Beyond the exceptions (i) through (iv) can still happen, in which case the entity coverage may be necessary, although the individual indemnification of the director responsible may evaporate. ----------
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GOVERNMENT AFFAIRS
IIAW JOINS COALITION SUPPORTING COVID-19 PREMISES LIABILITY LEGISLATION In early September, a broad and diverse coalition of 70 groups, including the Independent Insurance Agents of Wisconsin (IIAW), Wisconsin Manufacturers and Commerce (WMC), National Federation of Independent Businesses (NFIB-Wisconsin), Wisconsin Civil Justice Council (WCJC), Wisconsin Association of School Boards (WASB), Wisconsin Builders Association (WBA), Wisconsin Restaurant Association (WRA), Midwest Food Products Association (MFPA), many local chambers of commerce and Associated Builders and Contractors of Wisconsin (ABC), sent a memo Under the proposal, such liability protections urging the Legislature to co-sponsor and take would only apply to those entities that take adequate precautions to keep their premises safe action on the bill with committee hearings and floor votes in both houses. Unfortunately, the for their employees and customers. Legislature is not in session as lawmakers are Specifically, the bill protects from the threat of in full campaign mode with the November fall litigation by providing “safe harbor” to owners, lessees, occupants, or other individuals/entities in elections approaching quickly. There is a slight control of a premises so long as they follow public possibility that the Republicans would convene a health orders and take reasonable precautions to extraordinary session following the election to act on this and other targeted issues related to the protect the public. This liability exemption does pandemic. It appears more likely that any action not protect bad actors who knowingly violate on liability reforms will happen in early 2021 when public health orders or act in a manner that is the Legislature convenes its 2022-23 session. reckless, willful, or wanton. Passage of this legislation would put Wisconsin among a growing However, it also is unclear whether or not Governor Tony Evers would support such a list of states that have taken the commonsense measure. step of protecting businesses, schools and other entities against predatory lawsuits as a result of See a copy of the proposal LRB-6434 relating to COVID-19. As Wisconsinites look to reboot our COVID-19 Safe Harbor Liability Reform at economy and return to some sort of normalcy in http://bit.ly/OctGovAffairs. an extremely challenging environment, passage of liability protections are also essential to ensure that people do not fall victim to predatory lawsuits by some unscrupulous plaintiff’s attorneys >M isha Lee IIAW Lobbyist who view the pandemic as an opportunity. State Senator Chris Kapenga (R-Delafield), Representatives Mark Born (R-Beaver Dam) and Dan Knodl (R-Germantown) recently unveiled a legislative proposal that would shield Wisconsin businesses, schools, universities, and other entities from the threat of lawsuits alleging liability for COVID-19 exposures. Many are still struggling amid the prolonged pandemic and some lawmakers are actively seeking ways to keep the economy moving despite the Legislature not being in session.
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VIRTUAL UNIVERSITY
COVID-19 AND COMMERCIAL PROPERTY VACANCY CONCERNS As of this writing 38 states and countless cities and counties have enacted some form of stay-at-home order amid the pandemic panic arising from COVID-19. If the operation is not considered an “essential” business, its doors are shut - for now. How long such orders will or even can stay in place is anyone’s guess.
customary operations. For policies issued to building owners or lessees of an entire building:
With “non-essential” businesses sitting non-operational, might the commercial property policy’s vacancy limitation apply to an otherwise covered loss? Unfortunately, there is no single answer. This is another question that will force agents into the coverage form to understand the policy they sold; undertaking this exercise will prove to agents that not all policies are created equal.
(i) Rented to a lessee or sublessee and used by the lessee or sublessee to conduct its customary operations; and/or
Is the Property Vacant according to ISO? Whether the property is considered “vacant” is wholly a function of the policy language. Insurance Services Office’s (ISO’s) vacancy provision reads: E. Loss Conditions 6. Vacancy a. Description Of Terms (1) As used in this Vacancy Condition, the term building and the term vacant have the meanings set forth in (1)(a) and (1)(b) below: (a) When this policy is issued to a tenant, and with respect to that tenant’s interest in Covered Property, building means the unit or suite rented or leased to the tenant. Such building is vacant when it does not contain enough business personal property to conduct customary operations. (b) When this policy is issued to the owner or general lessee of a building, building means the entire building. Such building is vacant unless at least 31% of its total square footage is: (i) Rented to a lessee or sublessee and used by the lessee or sublessee to conduct its customary operations; and/or (ii) Used by the building owner to conduct customary operations. (2) Buildings under construction or renovation are not considered vacant. Two key qualifiers in this language determine what constitutes a “vacant” building: For policies issued to a tenant: Such building is vacant when it does not contain enough business personal property to conduct 28 28 | |OCTOBER OCTOBER2020 2020| |
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Such building is vacant unless at least 31% of its total square footage is:
(ii) Used by the building owner to conduct customary operations. When the insured is a tenant occupying only part of the building, the policy language appears clear. The limitation is a “property-based” limitation; the building is considered vacant if there is not enough business personal property to conduct customary operations. Presumably all the equipment and contents are still in the building, they just aren’t being used. Lack of use does not make it vacant, just presently unoccupied. The vacancy limitation does not appear to apply. Coverage for building owners and general lessees (lessees of the entire building) doesn’t read as clearly, but the result seems to be the same – the vacancy provision does not appear to apply to owners or general lessees when the operations are stalled. Let’s explore what makes the building vacant: The building is vacant if less than 31% of the square footage is leased and used by the tenants to conduct customary operations. Let’s assume that the entire building is leased, but the tenants are not currently operating because of the forced shutdown – does this make the building vacant? There is ambiguity in the phrase, “used by…to conduct its customary operations.” The space is still used by the lessee to conduct its operations, just not currently. The form doesn’t say, “in use.” To require active use would greatly contradict the coverage extended to the tenant. The tenant has coverage under its policy because of the presence of business personal property. The building owner has coverage because of the presence of tenants. Neither provision requires active operations, just the ability to conduct operations immediately. When the policy is issued to the building owner and the owner is the sole occupant, the building is considered vacant if/when less than 31% of the building is used by the building owner to conduct customary operations. This is a “how the building is used” provision not a “when the building is used” requirement. The forms states, “used by the building owner,” not “while being used….” If the required percentage of the building is used by the building owner, it is not vacant.
Perhaps a quick example. Assume an insured gets an incredible deal on a large building. The building is much larger than is needed, but the deal is too good to pass up. The insured purchases a 100,000 square foot building; however, the operation is small and requires only 10,000 square feet. By definition, this building is vacant because only 10% of it is used to conduct customary operations. However, if the insured occupies the entire building to conduct customary operations, the building is not vacant – even if the operations are temporarily on hiatus. The building is used by the building owner to conduct customary operations as evidenced by the machinery and equipment in the building; it’s just not presently in use. ISO language is clear regarding coverage for tenants. As long as there is enough equipment to operate the business, the building/ space is not vacant.
The vacancy trigger in 1.c., like ISO’s vacancy trigger, is property-based rather than activity based. If at least 70% of the building does not contain enough business personal property to conduct normal operations, the building is vacant. Why might this redefining of “vacant” be more restrictive and even more punitive than ISO’s wording? Because of the conjunction, “or” between the triggers. “Or” is an exclusive term meaning that if any of the conditions apply, the building is considered vacant. Notice that ISO divides the triggers between policies written for tenants and policies extending coverage to building owners and general lessees. This particular form lumps the wording together and uses, “or.” Regardless of the intent, subparagraphs 1.a. and 1.b. make this an activity-based limitation. Further, the use of “or” makes the provisions equally applicable to a building that is tenant-occupied or one that is owner-occupied.
For building owners and general lessees, the vacancy language is not as clear, the language is more nuanced. Policy language does not require “active” operation only that the building is leased to tenants (to a certain minimum percentage) for them to conduct operations or for the building owner to conduct customary operations.
The most glaring difference between ISO’s vacancy provision and this form’s wording is square footage. ISO’s requires occupancy of only 32% or more of the building. This form requires that 70% or more of the building be occupied and actively used.
Based on ISO wording, the building is vacant if there are no or not enough tenants or lacks the equipment necessary to conduct customary operations. The goal is to penalize the insured only when/ if the building cannot be used for its intended purpose because there is no equipment in the building. Remember, ISO vacancy provision is based on the presence of stuff, not people.
ISO’s vacancy provision takes affect after 60 days of defined vacancy. If the building is vacant, the policy completely excludes any loss caused by:
Proprietary Forms – Are They Different? Some carriers apply a proprietary definition of vacant that can and often does change how the provision applies. Following is one carrier’s redefining of what qualifies as vacant: Vacant means that: 70% or more of the rentable square footage of a building at an insured location is not being actively used by you or a tenant for its intended purpose; or 70% or more of the total square footage of a building at an insured location utilized by you to conduct your business is no longer used to conduct your customary operations; or A building at an insured location utilized by you to conduct your business does not contain enough business personal property to conduct your customary operations;whether or not you intend to use or rent such building. Unlike ISO’s policy language, the wording in 1.a. is an a ctivity-based qualifier. If at least 70% of the building is not being actively used, it is vacant. Given the pandemic panic quarantines and the government-ordered closures, many buildings may not be in active use. Not being in active use triggers the policy’s vacancy limitation. Although the qualifier “rentable” in 1.a. appears to limit this provision to tenant-occupied buildings, the subparagraph continues, “…actively used by you….” The “you” is the named insured. Based on this wording, it can reasonably be assumed to mean “rentable” square footage” IF the insured owner desires to rent the space – even if they don’t, rather choosing to use the space themselves. Subparagraph 1.b. looks similar to ISO’s wording, but closer review generates a different interpretation. The phrase, “…is no longer used…” is, in accord with subparagraph 1.a., an activity-based trigger. The wording appears to require the business to be operational. If at least 70% of the building is not being actively used to conduct operations, the building is vacant.
The Results of Vacancy
Vandalism; Sprinkler leakage, unless you have protected the system against freezing; Building glass breakage; Water damage; Theft; or Attempted theft. All other losses caused by a covered cause of loss are paid, but the claim payment is reduced by 15%. Proprietary forms may mirror ISO language or contain their own exclusions and limitations. The form must be reviewed. Be Prepared Whether and how the vacancy limitation applies is, as has been shown, a function of the policy language. If the policy applies ISO or similar language, the vacancy provision is based on and is triggered by the presence or lack of sufficient business personal property to conduct customary operations. As long as operations CAN be conducted, the building is not vacant – even if operations are currently being conducted. If the applicable policy language is activity based, once activity ceases, the clock begins to tick. If there is no activity beyond the prescribed number of days, the vacancy provisions are triggered – whatever they might be. Review the insured’s policy and any endorsements specific to the vacancy provision. Notify the insured of potential coverage problems if the anticipated vacancy (as defined by the policy) will last beyond the specified number of days. Unfortunately, this may become a policy-by-policy endeavor.
>> Chris Boggs Chris Boggs Big “I” Virtual University Executive Director Big “I” Virtual University Executive Director wisconsin wisconsin INDEPENDENT AGENT INDEPENDENT AGENT OCTOBER2020 2020 | | | OCTOBER
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In 1919, A group of Pennsylvania farmers founded Penn National Insurance to provide affordable workers’ compensation insurance. Today, Penn National Insurance sells property-casualty insurance in 11 states by partnering with more than 1,200 independent agency operations. In 2012, we affiliated with Wisconsin-based, Partners Mutual Insurance Company. As one company, we bring the personal attention and local focus of a regional carrier, along with the quality of products and services of national carriers. Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial lines-oriented agencies in Wisconsin. Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com
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COVID-19
COVID-19: LESSONS TO BE LEARNED IN THE 2020 ISO EMERGING ISSUES BRACKET CHALLENGE
“The riskiest stuff is always what you don’t see coming.” —Morgan Housel For the seventh time, the ISO Emerging Issues team has just completed our annual bracket challenge, in which insurance and risk management professionals around the globe weighed in on what emerging risks are, or may become, most impactful. For the first time, this bracket challenge did not coincide with its inspiration: the March basketball tournament. It should be no surprise that the topic that accrued the most votes in the 2020 challenge was the reason: Pandemic. Novel coronavirus (COVID-19) has effectively turned the world upside down in recent months. Immediate effects have been felt across the conference circuit (the cancellation of SXSW), sports (Major League Baseball, an institution that pressed on during two World Wars, delayed the start of its season), and so much more. In addition to short-term issues, which have been extensive, the cascading effects that have resulted from COVID-19 suddenly make the long-term trajectory of life and business quite murky. Disruptions in the supply chain have reportedly been so severe that drastic changes may be considered to create more resilience. Economic impacts may continue to reverberate for months, if not years, if and when the virus is ultimately contained. It is likely because of these reasons, among many others, that the topic of Pandemic emerged as the top pick for the 2020 ISO EI bracket challenge. While it is always intriguing to see who secures the most votes, a byproduct of this bracket is gleaning insights that can serve as guidance for ISO, as well as for our customers and those who choose to participate all the way through. With respect to Pandemic taking the most votes, the lesson may not be in the outcome, which is frankly unsurprising given that participation in the bracket was taking place during COVID-19’s global spread, but rather in the context
of previous ISO Emerging Issues bracket challenges. Here is where Pandemic has finished prior to this year: • 2014 – Lost in the first round • 2015 – Lost in the first round • 2016 – Lost in the first round • 2017 – Lost in the first round • 2018 – Lost in the first round • 2019 – Relegated (wasn’t even in the challenge) For the first five years of this survey, Pandemic was hardly a major contender as the biggest emerging issue. In fact, they had been such a non-factor that ISO bracketologists didn’t include the topic in the 2019 survey. Now, after experiencing the unprecedented consequences that COVID-19 has wrought, Pandemic might just end up being the biggest risk of our generation. Shortly before the challenge began and before COVID-19 really began wreaking havoc on the world, I read an article that now looks very prescient in hindsight. From the piece, a simple, albeit memorable quote, continues to echo in my head: “The riskiest stuff is always what you don’t see coming.” Moving forward, we may all be well served to heed this advice and recalibrate our assessment of risk accordingly. It is important to be cognizant and prepare for risks that are evolving before our eyes, such as rising sea levels and the flooding that may result. But, in the interests of risk management, it may be time to take it a step further and reconsider scenarios that have previously either seemed implausible or too intimidating to even contemplate. Because, if nothing else, COVID-19 has now proven that, yes, it can happen to us.
> David Geller, CPCU Emerging Issues Senior Analyst, Verisk wisconsin INDEPENDENT AGENT
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AGENCY SOLUTIONS
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News
ACUITY CHARITABLE FUND DONATES $450,000 TO UW-WHITEWATER FOUNDATION CYBER DEFENSE PROGRAM
Members in the
GRANGE AND INTEGRITY INSURANCE’S JILL WAGNER KELLY NAMED WOMAN OF INSURANCE
Columbus, OH (8/14/20) — Jill Wagner Kelly, Integrity Insurance President and Grange Insurance EVP, Chief Distribution and Affiliate Officer has been recognized as a woman of influence in the corporate leader category by Insight Magazine. Insight Magazine’s inaugural Women of Influence Awards shines a light on the impact women in northeast Wisconsin are making based on leadership, career achievements and community involvement. Selected by a panel of judges, Wagner Kelly joins seven other winners from a diverse group of women and industries. Jill has a passion for leading people. She’s an engaged, energetic leader whose span of influence touches Integrity and Grange, which inspires associates and positions us to be a go-to carrier for our agency partners. When she became President of Integrity her promise to associates was “You don’t build a company, you build people and they build a company.” This statement still holds true today. Jill continues to deliver on that promise by building an environment where Integrity associates feel trusted, empowered and invested. In June 2019, Jill was promoted to EVP, Chief Distribution and Affiliate Officer for Grange Insurance. In this new, expanded role, she oversees Sales & Marketing efforts for Grange and Integrity, in addition to her role as Integrity President. Wagner Kelly was honored at Insight Magazine’s virtual celebration on July 29. About Grange Insurance Company Grange Insurance Company, with $3 billion in assets and in excess of $1 billion in annual revenue, is an insurance provider based in Columbus, Ohio. Through its network of independent agents, Grange offers auto, home and business insurance protection. Life insurance offered by Grange Life Insurance and Kansas City Life Insurance. Established in 1935, the Grange Insurance Company and its affiliate Integrity Insurance Company serve policyholders in Georgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and Wisconsin. For more information, visit grangeinsurance.com.
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wisconsin INDEPENDENT AGENT
Sheboygan, WI (8/14/20) — Acuity, through its charitable donor-advised fund, has recommended a donation of $450,000 be made to the University of Wisconsin-Whitewater Foundation, Inc. to support the university’s cutting-edge cyber defense program and create the Acuity Cyber Defense Range. The range will be an immersive experience putting users directly under fire from cyberattacks. “We are excited about the partnership between Acuity Insurance and UW-Whitewater and the impact that the new cyber defense range will have for both businesses and students,” said Brian Dennis, Director of the Cybersecurity Center for Business, located at the UW-Whitewater Community Engagement Center. “We expect that organizations of all sizes–from local businesses to regional Fortune 500 companies–will make use of the facility.” “The Acuity Cyber Defense Range will be different from most cyber ranges affiliated with universities,” said John Chenoweth, Dean of the UW-Whitewater College of Business and Economics. “While the range will be open to businesses, government agencies, and other organizations, significant time will be reserved for students—and it will not be limited to computer science, information technology, or other specific majors.” The partnership between Acuity Insurance and UW-Whitewater will allow users of the range to work with cutting-edge technology in a comfortable environment. They can replicate their existing system and also test physical enhancements and equipment upgrades. “Although most businesses are aware of the threat of cyberattacks, their first experience with cybercrime is when it actually happens to them. The Acuity Cyber Defense Range will help future IT security employees and business leaders learn how to identify, protect, detect, respond, and recover from the latest attacks,” said Ben Salzmann, Acuity President and CEO. “Acuity understands the value of preparing for cyberattacks in a real-world setting,” said Marcus Knuth, Acuity Vice President Enterprise Technology. “We are pleased to support UW-Whitewater in its initiative to create this training and learning resource.” The Acuity Cyber Defense Range is expected to be completed by January 1, 2021, and will be located in the Cybersecurity Center for Business. The University of Wisconsin-Whitewater is a preeminent academic institution driven by the pursuit of knowledge, powered by a spirit of innovation, and focused on transforming lives. As part of the University of Wisconsin System, UW-Whitewater embraces the Wisconsin Idea and is an economic and cultural driver of the region. To tackle the growing risk of cybercrime in America’s business ecosystem, the Cybersecurity Center for Business (CCB) offers cybersecurity education, training, and resources for small businesses, educational institutions, and governments.
The CCB is hosted by the UW-Whitewater College of Business and Economics. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 100,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 28 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,400 people.
IMT INSURANCE AWARDS $33,000 TO LOCAL COMMUNITY PROJECTS
West Des Moines, IA (9/16/20) — IMT Insurance, a leading provider of personal and commercial insurance products in the Midwest, recently announced its list of 61 Community Contest winners. The IMT Community Contest awards monetary gifts to community projects and organizations within the states the company does business.
This year, nearly 100 entries were submitted for consideration from June to August and 61 awards of either $500 to $1,000 totaling $33,000, were gifted to local projects and organizations in need. This is the 23rd consecutive year IMT has awarded gifts to local community projects in need of funding. IMT Insurance offers insurance products through more than 1,000 Independent Insurance Agencies across six states: Iowa, Illinois, Minnesota, South Dakota, and Wisconsin. IMT Insurance is honored to partner with the 2020 nominating Independent Insurance Agents. Their superior performance and enduring commitment enable IMT to continue living up to its slogan, “Be Worry Free!”
News Members in the
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COMMENTARY FROM COUNSEL
COVID-19 VACCINE WILL FORCE EMPLOYERS TO MAKE TOUGH DECISIONS As governments and pharmaceutical companies race to develop a safe and effective COVID-19 vaccine, employers must begin to consider how their companies will react to the drug. Considerations related to a potential vaccine run the gambit, including everything from politics to health to religion. The policies a company implements once a vaccine becomes widely available could have enormous financial and legal implications. Thus, your agency should start developing strategies now for both how to advise clients and how to manage your own organizations after the vaccine race reaches the finish line.
EEOC Guidance and Other Considerations As employers manage returns to the workplace, they will have to determine whether to force their employees to be inoculated once a COVID-19 vaccine is available. In making these determinations, employers will have to ensure they do not run afoul of either the Americans with Disabilities Act or Title VII of the Civil Rights Act. Both of these laws are enforced by the U.S. Equal Employment Opportunities Commission (EEOC). The EEOC previously issued pandemic response guidance while the country was in the throes of fighting the H1N1 virus more than a decade ago. Recently, the EEOC updated that guidance document to account for difficulties employers are facing due to the novel coronavirus. As was the case in response to H1N1, the EEOC will allow employers to mandate COVID-19 vaccinations for their employees. However, companies must allow for religious and medical exemptions. Thus, given the difficulties associated with determining whether an employee satisfies the criteria for an exemption, the EEOC is recommending employers simply encourage their employees to get a vaccine. Importantly, the revamped guidance expressly notes that a COVID-19 vaccine was not available at the time the updates were made, indicating they could be subject to change. Employers should consider more than just the EEOC’s guidance when considering whether to mandate vaccinations. To start, some states do not allow employers to force employees to be vaccinated. Others allow mandatory vaccination but have expanded allowable exemptions to include political objections. While Wisconsin does not have a law prohibiting employers from mandating vaccinations, several lawmakers have attempted to do so in the past. 38
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Vaccines also raise liability concerns for employers. For instance, if a company forces its employees to be vaccinated and an employee becomes ill as a result, that could open the company up to a lawsuit. Further, coronavirus-related policies, like mandatory vaccines or mask-wearing, may result in certain employees being harassed for personal decisions related to the virus. This, too, can raise liability concerns for companies.
Now What? It is critically important for your agency to begin preparing its vaccine response now, so as to be ready if and when the drug becomes widely available. This is especially true for the impending impacts a vaccine may have on insurance coverage. To start, health insurers may be offering incentives for employers to require their employees to be vaccinated against COVID-19, or even just to offer the immunization on-site. Workers’ Compensation insurers may be offering similar incentives, given the health risks employees face when congregating in the office. However, CGL and EPL carriers may be concerned with the potential for increased liability due to risks created by forced vaccination, including everything from personal injury to workplace harassment suits. Further complicating the matter, as suggested above, it is entirely possible that the EEOC may amend its guidance once coronavirus immunizations are widely available. Ultimately, a vaccine may impact a large swath of the policies your agency sells to its clients. As a result, it is crucial to work with legal counsel to understand the legal risks and benefits associated with workplace immunization policies. That knowledge will help you better advise clients and implement guidelines within your own agencies.
>J osh Johanningmeier IIAW General Counsel
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