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ufginsurance.com/online © 2021 United Fire & Casualty Company. All rights reserved.
CONTENTS
wisconsin INDEPENDENT AGENT
COVER STORY: The IIAW is Growing Your Member Benefits
Being part of the IIAW is more than just a membership. Members have access to a large selection of tools and resources. The IIAW has continued to elevate our expansive list of member benefits to provide one of the most valuable independent insurance associations in Wisconsin.
PAGES:
4-8
INSURANCE BARTENDER...........................................................7-8 Adapting Our Value Proposition For You
RISKY BUSINESS.............................................................................10 Champions of Change
AGENCY OPERATIONS................................................................14
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
Chairman of the Board:
Chris Costakis | Midwest Insurance Group, Delafield
State National Director:
Steve Leitch | Leitch Insurance, River Falls
2020-2021 BOARD OF DIRECTORS
The New Digital Workspace
Mike Ansay | Ansay & Associates, Port Washington
FINANCE..............................................................................................18
Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake
Five Steps to a Successful Acquisition
WORKERS’ COMP...........................................................................22-23
Mike Harrison | R&R Insurance Services, Inc., Waukesha Dan Lau | Robertson Ryan & Associates, Milwaukee Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine
“Workcation” and Work Comp
Chad Tisonik | HNI Risk Services, LLC, New Berlin
SALES & MARKETING.....................................................................26
Jonathon Zwettler | Baer Insurance Services, Middleton
Business Relationships Hurt By Lack of Travel, Says Chubb Survey
GOVERNMENT AFFAIRS.............................................................30-31 Will Wisconsin Finally Repeal State’s Oldest Main Street Tax
MEMBERS IN THE NEWS..............................................................32-33 COMMENTARY FROM COUNSEL...............................................34 COVID-19 Vaccine Updates
FOOD FOR THOUGHT....................................................................35
ADVERTISERS INDEX AAA......................................................................29 ACUITY...............................................................24 AMERISAFE......................................................35 Arlington/Roe..................................................27 Badger Mutual Insurance............................35 Berkshire Hathaway GUARD....................15 IMT........................................................................36 JM Wilson..........................................................31 Keystone.............................................................20 Robertson Ryan & Associates..................8 Security Financial Bank...............................19 SECURA..............................................................11 UFG.......................................................................2 West Bend..........................................................13 Western National............................................9
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 | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com Ian Tisonik | Agency Solutions Coordinator 608.256.4429 • ian@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. © 2021 For information on advertising, contact Kaylyn Zielinski, 608.210.2977 or kaylyn@iiaw.com. wisconsin INDEPENDENT AGENT
| JULY 2021 | 3
You’ve made the choice to build your agency on independence, but that doesn’t mean you’re alone. Membership in the Independent Insurance Agents of Wisconsin and the Independent Insurance Agents & Brokers of America allows you access to an exclusive network of more than a quarter million independent insurance professionals nationwide that receives advocacy, business solutions and technical expertise from the industry’s thought leader. As your agency seeks solutions to challenges and opportunities, turn to the IIAW. Our experience combined with our vast network of insurance professionals seeks to provide you with the optimal solutions. We do the work so you don’t have to!
ADVOCATE When independent agents need a voice on Capitol Hill and in the halls of the state capitol, legislators listen to the Big “I.” Our government affairs teams work around the clock in Washington D.C. and in Madison, WI to protect your clients and your livelihood. Our expertise, combined with a million dollar Political Action Committee (PAC) and our grass roots network, provides us with the ammunition to protect your independence. We will fight for you on flood insurance, health care, taxes, insurance regulation, and more, while you run your agency.
BUILD Our Agency Solutions offers trusted consulting built for the independent agent. Because we know how important it is for you to succeed in business, the IIAW has created a portfolio of solutions built just for you, including free agency assessments that provide a customized action plan with resources.
TECHNOLOGY
STRATEGIC
OPERATIONAL
FINANCIAL
MARKETING
We help you navigate and choose the best solutions to fit your needs
Protect your investment by reviewing business goals and strategies
Update and improve agency workflows and operating procedures
Review financial processes for accuracy and efficiency
Review your agency marketing efforts and discover helpful tools and resources
INSPIRE The IIAW is inspiring new and existing insurance professionals to become the Agency of the Future. Our Professional Development Program, educational course offerings, and industry-leading events are inspiring, educating and positioning our members to re-train their brains, re-tool their employees and re-shape their business to be responsive to today’s consumer. Harness your ability, unleash your potential and deliver solutions.
TRANSFORM Traditional insurance agencies need to harness technology in order to compete and win in a bricks-and-clicks marketplace. The IIAW is assisting agents in their digital transformation by helping them rethink their business plan by connecting them with technology platforms and products that integrates with their agency and compliments their commitment to customer service. 4 | JULY 2021 |
wisconsin INDEPENDENT AGENT
T H E VA L U E O F A N I I AW M E M B E R S H I P Being part of the Independent Insurance Agents of Wisconsin is not only about being a member of an industry association. It’s about being a part of a family and it’s about tradition. There is no greater compliment than to be trusted by your members. Here’s what a few of our members have to say about their membership with the IIAW: If you’re a large agency or a small agency, you might not have the resources that you need to do financial analysis, technology, operational, marketing, strategic - the Big I can provide all that for your agency. You can get free quotes and you can decide what you want and what you don’t want. Mike Harrison R&R Insurance Services, Inc. The IIAW staff has been fantastic at helping to answer a variety of questions as it relates to our business. Whether the question is something direct as it relates to one of our E&O policies, or something more subjective like who they would recommend for a phone vendor, the IIAW always digs in and provides great insight.
Jonathon Zwettler Baer Insurance Services, Inc.
Is this concierge service, white glove service, whatever you call it, it’s great service. Within our agency we try to give our clients peace of mind and that’s exactly what the Big I does with the insurance offerings it provides for its member agencies, and that’s what’s important. Steve Leitch Leitch Insurance Agency, Inc.
The IIAW is a great technological resource on emerging software and existing software. Do you have a human resources question or need a job description? The IIAW can help with that. Are you working on a merger or acquisition? Do you have a legal question that may need to be ran by an attorney? The IIAW can help with that too.
Nick Arnoldy Marshfield Insurance Agency
All of the staff is very helpful with getting questions answered. They quickly respond with detailed explanations and provide examples/templates to reference. Mallory has especially been wonderful to work with assisting with the operational questions I have for our agency. Queen of E&O! Jayne Bahneman SF Insurance Group
I have been part of the IIAW for over 25 years. During this time, I have seen the strength in membership communication... Matt and his team have led us on a daily basis with company news, industry news, government notices and how to run our agency on a day-to-day basis with remote teleworkers.
Chris Costakis Midwest Insurance Group
Renew Your Membership Today!
EDUCATIONAL OFFERINGS
This year, we’ve expanded our CE library through ABEN and we partnered with UW-Madison to offer more professional development opportunities.
INDUSTRY INSIGHTS REPORT
This new report will give agents an in-depth snapshot of each of the IIAW’s Supporting Company Members and important industry information.
THE IIAW CONTINUES TO
CATALYIT The IIAW is a proud co-founder and investor in Catalyit. Catalyit simplifies technology for insurance agencies.
ENHANCE OUR MEMBER BENEFITS!
Over the past year, the IIAW has continued to elevate our expansive list of member benefits to provide one of the most valuable independent insurance associations in Wisconsin.
AGENCY SOLUTIONS
We’ve expanded and updated the Agency Solutions portfolio of resources to meet the growing needs of the independent agent.
EXPANDING OUR TEAM & CAPABILITIES
GOVERNMENT AFFAIRS
Our government affairs teams work around the clock in Washington D.C. and in Madison, WI to protect the interests of the insurance industry. 6 | JULY 2021 |
wisconsin INDEPENDENT AGENT
We are growing the IIAW team to offer members more personalized service.
INSURANCE BARTENDER
ADAPTING OUR VALUE PROPOSITION FOR YOU Recently, I have been spending some time studying and learning from Columbia Business School Professor, Author and Renowned Digital Transformationalist, David L. Rogers on how digital technologies change how we connect and create value with our customers and how businesses must pivot to take advantage of new opportunities to offer value. David Rogers, in his book titled the “Digital Transformation Playbook: Rethink Your Business for the Digital Age”, states, “Increasingly, our competitive assets may no longer reside in our own organization; rather, they may be in a network of partners that we bring together in looser business relationships.” Enter the IIAW. We are your network, your resource and your strategic business partner. Lean on us to help you and your staff transform your business to meet the evolving needs of your customers. Whether your agency’s transformation focuses on leveraging new technology or just simply making your operations more efficient, we have what you need to be successful. At the IIAW, we are constantly studying, learning and adapting in order to be able to assist our members in all facets of their business. The IIAW Board of Directors recognizes the threats independent agencies face as well as the opportunities that lay before them. They are helping to reshape and refocus the association to be able to meet the emerging needs of our members. As technology continues to evolve, our members are going to need a strategic business partner that understands this. We understand and we stand ready to assist you.
To help meet the increasing needs of our members, we are developing new member resources to help agencies digitally transform their business, improve operations, map their workflows and their customer’s journey to purchasing, create customized procedural manuals, improve profitability and much, much more. These new products and services will compliment what Catalyit has available to assist independent agencies identify and leverage the right technology solution. Look at Catalyit as a do-it-yourself model which offers you tools and resource to help your agency identify and leverage new and existing technology solutions on your own. Whereas the IIAW, in partnership with Catalyit, can offer you the do-it-with you and/ or do-it-for you models in helping you improve your operations and to implement (and integrate) new technology solutions. To meet the overwhelming demand from independent agencies across the US, we are adding new staff as we look to expand our reach and internal competencies. The IIAW has recently hired Jeff Thiel as our Director of Agency Success and Ian Tisonik as our Agency Solutions Coordinator. Stay tuned to next month’s magazine in which we officially introduce you to Jeff and Ian and the role they will play within the IIAW to help your agency be successful. David Rogers writes, “If your business does not take advantage of a new opportunity to offer value to your customers, someone else will.” wisconsin INDEPENDENT AGENT
| JULY 2021 | 7
The IIAW is growing your member benefits. We Together with the IIAW’s Board of Directors, we are heeding his advice and moving to increase our have what you need to take your business to new heights. Contact us today. value proposition by investing in new products, services and staff in order to better assist our members and customers (outside of Wisconsin) in finding new ways to sell, service and increase their > Matt Banaszynski CEO of IIAW value proposition to their clients.
Matt’s Mixology Whiskey Smash This drink transforms bourbon into a fun, summer cocktail that will leave you coming back for more.
Ingredients
Directions
• 2 ounces bourbon • 0.75 ounces lemon juice • 0.75 ounces simple syrup • 6-8 mint leaves • 1 lemon peel, about 2” or so
1. Add all ingredients, including mint and lemon peel into a shaker tin. 2. Add ice, shake hard for 6 to 10 seconds. 3. Strain over fresh ice into a rocks glass. 4. Garnish with a mint crown and enjoy. Recipe & Photo Courtesy of Robb Report
RISKY BUSINESS
CHAMPIONS OF CHANGE A global pandemic does not necessarily allow one to “fight the old”. We had to urgently accept a new working environment and then build new workflows to adapt and sustain the business. I am proud to say the team at the IIAW did not stop there. Throughout the last 16 months, I had the privilege of witnessing a group of individuals pull together (often virtually) and push forward on membership benefits that went above and beyond what has ever been offered by a traditional insurance trade association. We started a technology company. We worked tirelessly at the Capitol to responsibly represent agents as we have always promised to do. We expanded our team. COVID was not a chance to step back. It was an opportunity to step forward. Over the next few months, you will continue to see how our efforts will impact your business. For example, we professionally recorded legal webinars to help agents adapt to regulatory changes (see our Education Calendar online for more information). You will see the launch of the new insurance technology company, Catalyit. The expanded portfolio of Agency Solutions to mitigate E&O exposures and assist with change and growth will continue to grow with your needs. The in-house support for agency questions will broaden and restructure for ease of access. There will be a more streamlined and targeted approach to specific interest areas – you will get the information you need. 10 | JULY 2021 |
wisconsin INDEPENDENT AGENT
It’s exciting to be a part of the passion that is the Independent Insurance Agents of Wisconsin. Shifting our energy on building the new was not always easy, but change never is. What was easy was making the decision to grow our team. One addition to our team is an individual with a passion for insurance and the experience to be a thought-leader and resource for agents. Jeff Thiel loves the industry too much to stay retired for more than 6 months! He is now part of the IIAW and will act as a resource and advisor for our agents and he will continue to build our portfolio of member benefits. Our second addition to the team is passionate about the industry, thanks to growing up in the business. Ian Tisonik has joined the IIAW and he will help to drive the delivery of essential operational and technology resources for independent agents. I invite you all to meet these new faces, learn about new resources and reconnect with the Association at InsurCon2021 on August 10-11 at the Kalahari Resorts & Convention Center. The old and traditional “Association Membership” is now the new and essential community for independent agents to grow together towards a bright future.
> Mallory Cornell,
IIAW Vice President and Director of Risk Management
CONGRATULATIONS
STEVE LEITCH IS WEST BEND’S 2020 DISTINGUISHED AGENT This article was originally published in West Bend Mutual Insurance Company’s bi-monthly newsletter, The Trend.
West Bend is pleased to announce Steve Leitch, of Leitch Insurance Agency Inc. in River Falls, Wisconsin, is the recipient of the 2020 W.E. “Mike” Koehler Distinguished Agent Award! The Distinguished Agent Award was named in honor of Mike Koehler, an independent insurance agent and volunteer who, throughout his life, tirelessly served the industry, independent agents’ associations, and his community of Cedarburg, Wisconsin. Steve’s professional excellence and years of service to the industry and his community make him a very worthy recipient of this award. Steve’s father, Paul Leitch, started Leitch Insurance in 1983. Steve joined the agency in 1987 after graduating from the University of Wisconsin-Madison with a degree in Risk Management. He then purchased the agency in 2003. Through organic growth and agency acquisitions in Prescott and Hudson, Wisconsin, Leitch Insurance has more than doubled in volume since 2012. In addition to leading a successful agency, Steve has devoted countless hours to the industry and community. As an active member of the Independent Insurance Agents of Wisconsin (IIAW) Steve’s held many roles. He’s currently the state national director, a member of the board of directors, and a member of the agency services committee. Previously, he served as president and a member of numerous other committees. He’s also served on several agent advisory boards, including West Bend’s. Steve is an active supporter of the River Falls community, providing his time and expertise to a variety of organizations. He’s been a charter member of the River Hills Rotary Club since 1999. As a member, he’s been active in fundraising efforts and several highway cleanups each year. He currently serves on both the board of directors and the board of trustees for First National Bank of River Falls. He’s also vice chair on the River Falls Area Hospital board of trustees. Additionally, Steve works with the River Falls Economic Development Committee and St. Croix Valley Innovation Center.
12 | JULY 2021 |
wisconsin INDEPENDENT AGENT
David Nycz, West Bend director of sales, Rob Jacques, senior VP of commercial enterprise and Kelly Tighe, senior VP of sales, present Steve with the Distinguished Agent Award.
Previously, he’s served on the board for the River Falls Community Foundation, belonged to the River Falls Police and Fire Commission, and volunteered at Greenwood Elementary School, helping third graders develop a website about local businesses. Steve has proudly shared his commitment to the industry and community volunteerism with his family. Two of his four sons, Ryan and Brandon, work for Leitch Insurance and have been active in the IIAW Emerging Leaders Committee. Ryan won the IIAW’s Emerging Leader of the Year Award in 2019. Ryan has also served as president of the River Falls Lions Club and the Prescott Kiwanis Club. “We’ve been doing business with the Leitch Insurance Agency for nearly 40 years,” said Kelly Tighe, West Bend’s senior vice president – Sales. “The Leitch Insurance Agency is an operation built on trust, integrity, and service to their customers. Steve has given back to the industry and to his community in many different ways, modeling what the Mike Koehler award is all about. Steve is the type of agent who makes our industry look good, and we’re proud to have him represent West Bend.” In recognition of the award, West bend donated $5,000 to the MACC Fund (Midwest Athletes Against Childhood Cancer) in Steve’s name. Congratulations, Steve!
12 Years and Counting Unlike many other carriers, West Bend believes in the value of long-term relationships. That’s why many of our personal lines underwriters, like Nick, have worked with their agents for so long. Nick puts a high value on West Bend’s continuing education program, in part, because he learns alongside his agents and gets their perspectives. And that makes the relationships that much stronger.
AGENCY OPERATIONS
THE NEW DIGITAL WORKSPACE The COVID-19 pandemic end is in sight. In the United States, businesses and individuals alike have adapted to a new normal. That new normal, you may have guessed, is a hybrid between traditional and virtual—with work, businesses, milestones and even relationships maintained virtually, using the many digital tools at our disposal. Not only are we all now accustomed to Zoom meetings, but FaceTime birthday celebrations and video-conference retirement parties have become the standard way to socialize and commemorate special occasions. It’s a brave new hybrid world.
and Southeast cities. In fact, the article notes that venture fund Initialized released a recent survey finding that 42% of its firms believe starting a remote company is better than being headquartered anywhere, compared with just 6% thinking so last year. “What if the next Silicon Valley is nowhere—or, just as precisely, everywhere?” writes the author.
At WAHVE, we’re at the forefront of this movement. We’ve always understood the power and value in remote work—and the power and value in a diverse talent pool. Perhaps one of the only silver linings of this terrible health crisis is And now, it’s become clear that the hybrid world is that many more businesses have been forced to here to stay. As reported in a January New Yorker embrace these things in a much more meaningful article, global advertising and marketing agency and impactful way. As the trend continues, I expect R/GA conducted a series of internal surveys that we’ll see many more companies instituting policies found that not only did 30% of supervisors believe around: employees were actually more productive at • Flextime and non-traditional work arrangements, home, but employees were envisioning remote including contract and Part-time work work becoming a permanent option. The article • Work/life balance benefits, such as providing then went on to detail how certain companies ergonomic desk equipment, virtual on-demand are altering their plans for physical office space exercise classes, childcare coverage, and more going forward: smaller satellite locations versus • Fully remote teams and remote-team large, centralized hubs; fewer (or no) individual management desks and cubicles, to be replaced by shared, • Expanding the definition of “talent pool” to reservable workspaces; fewer enclosed, dedicated include all geographical locations and age conference rooms and more generalized public groups spaces for collaborating. We may not know exactly what a post-Covid world Meanwhile, The Atlantic recently published a will look like. But I think we can all agree that piece about how the meteoric rise of remote whatever shape it takes, remote work will feature work, fueled by the pandemic, is already leading prominently in it. to a redistribution of talent across the country, as information workers move out of coastal metropolises and into the Sun Belt, Midwest, 14 | JULY 2021 |
wisconsin INDEPENDENT AGENT
AmGUARD • EastGUARD • NorGUARD • WestGUARD
Workers’ Compensation
We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim. We’ve been successfully protecting our policyholders and their employees since 1983. Up-front loss control measures Responsive claims handling Facilitation of quality medical care (when an accident does occur)
Browse all of our commercial and personal line products at www.guard.com.
APPLY TO BE AN AGENT: WWW.GUARD.COM/APPLY Our Workers’ Compensation policy is available nationwide except in monopolistic states: ND, OH, WA, and WY.
IIAW PRELICENSING CLASSES Since 1993, more than 20,000 students have graduated from our in-classroom prelicensing school. The IIAW in-classroom prelicensing school has some of the highest passing ratios in the state for the last 25+ years! “Overall the class went very well and I felt included as if I was in the room.” -Former Online Student
IIAW PRELICENSING CLASSES:
• Now offering classes in-classroom and broadcasting online* in real-time • Located at IIAW Headquarters • Fulfills the study requirements for life, health, property and casualty • Designated to help you pass your state licensing examination • Taught by an experienced insurance professional * Just select the online (virtual class) option when registering.
CLASS SCHEDULE: LIFE & ACCIDENT/ HEALTH
August 23-26 October 4-7
PROPERTY & CASUALTY
July 12-15 September 13-16 November 1-4
REGISTER AT IIAW.COM
To register, click the Education tab on IIAW.com.
IIAW Member Pricing: $374* Non-Member Pricing $399* The course fee includes all class materials. Materials are distributed on the first day of class. You receive: • Life & Accident/Health or Property & Casualty Insurance Study Manual • The Intermediary’s Guide to Wisconsin Insurance Law • The State of Wisconsin Ins. Licensing Candidate Handbook (This provides all the information to obtain a license) • Exam Simulator - A computer program designed to help you pass your prelicensing exam on the first try For any questions please contact diana@iiaw.com. *Pricing given for full class registration. You may also take individual classes. * If taking the course online, the IIAW will mail the study manual to your preferred address.
MEET OUR INSTRUCTOR Gabrielle O’Brien, MBA, has been active in the insurance industry for more than 25 years, developing continuing education classes in related fields such as Ethics and Errors and Omissions. As the lead instructor of the Independent Insurance Agents of Wisconsin’s Property & Casualty and Life & Health Prelicensing Schools, she has guided thousands of students to successfully passing the insurance intermediary’s exam. O’Brien has participated in many other aspects of the industry as an underwriter, manager, and field representative. O’Brien’s received her Master of Business Administration from Loyola University and her Bachelor of Arts from Saint Mary's College.
IIAW CONTINUING EDUCATION
2021 ONLINE EDUCATION & CE CLASSES
J U LY & AUGUST 2 0 2 1 SC H EDU LE DATE
TIME
COURSE
JULY 7/15
9AM-11AM
Contracts Agents Should Read
7/16
9AM-12PM
E&O - Commercial Property Coverage Gaps & How to Fill Them
7/19
9AM-12PM
E&O - Roadmap to Homeowners Insurance
7/21
10AM-12PM
Business Auto Claims That Cause Problems
7/26
12PM-3PM
Agency Management Based E&O and Ethics
7/27 1PM-4PM Understanding (and Managing) the Largest Government Benefits: Social Security
AUGUST 8/02
9AM-11AM
Coverage Disputes Between Thompson & Boggs, You Be the Judge
8/03
8AM-10AM
Builders Risk and Contractors Equipment
8/05
12PM-2PM
Those Kids and Their Cars
8/05
9AM-12PM
E&O - Commercial Property Gaps & How to Fill Them
8/06
9AM-12PM
E&O - Roadmap to Homeowners Insurance
8/10 9AM-11AM Embracing Directors & Officers Liability Insurance 8/13
9AM-12PM
Commercial Lines Claims That Cause Problems
8/16
9AM-12PM
E&O - Roadmap to Homeowners Insurance
8/18
8AM-11AM
Ethics in the Insurance Industry
8/18
9AM-11AM
Contracts Agents Should Read
8/20
9AM-12PM
E&O - Commercial Property Gaps & How to Fill Them
8/24 1PM-4PM
Understanding (and Managing) the Largest Government Benefits: Social Security
SEE OUR FULL CE SCHEDULE & REGISTER FOR THESE CLASSES AT IIAW.COM/EDUCATION
FINANCE
FIVE STEPS TO A SUCCESSFUL ACQUISITION Expanding your insurance agency can be daunting – especially if it involves an acquisition. But with careful planning and the right advisors, it can be easier than you think. Here are five steps to help guide you through the acquisition process. Step 1: Find the right agency to acquire. After considering size, customer base, location and other demographics, you might already have the ideal agency in mind. But, sometimes finding an agency that is open to acquisition can be a challenge, particularly when you want to keep the transaction quiet. Let insurance association professionals, like Independent Insurance Agents of Wisconsin (IIAW), know you are interested in growing. They may be able to connect you with an agency that is interested in merging. Step 2: Determine the right purchase price. It is highly recommended to consult with an accounting firm that has experience in valuating an agency to determine a fair purchase price. When doing a valuation, the firm will take into consideration the book of business, profitability, risk models, tangible assets and other factors including management experience. Step 3: Negotiate for the best deal. Even with a proper valuation market demand can easily affect the purchase price. When negotiating, remember it is always preferrable to have the seller establish the price before you make an offer. You never know, they may be willing to sell for less than you were going to offer.
Step 4: Explore your financing options. It’s important to choose a financial institution that understands the complexities of the insurance industry. Not all lenders are experienced in this area. Often, they are uncomfortable funding an agency acquisition without requiring a Small Business Administration (SBA) loan. This isn’t always necessary. If you work with a bank that has expertise in the insurance industry, they will be able to find the best financing option for you – and it is very likely it won’t require SBA backing. Step 5. Retire the debt. After the acquisition is final, it’s important your agency remains healthy by following accounting best practices, controlling expenses and maintaining profitability and cash flow. Once you have sufficient reserves, then consider prepaying your loan. The faster you pay off the loan, the faster you gain equity. The more capital you have, the easier it is to expand your agency, including acquiring another agency. And then it’s time to start all over again on step one. Security Financial Bank (SFB) is a Wisconsin financial institution that specializes in lending to insurance agencies. As a leader on SFB’s Insurance Lending Team, Curt Van Auken has helped numerous insurance agents with their banking needs, including acquisitions, partner buyouts, building expansions and refinancing projects. For more information, visit https://www.sfbank.com/insuranceagencies.phtml or contact Curt at cvanauken@sfbank.com.
> Curt Van Auken
Regional President, Security Financial Bank
18 | JULY 2021 |
wisconsin INDEPENDENT AGENT
WE’CAN HELP YOUR AGENCY GROW. We understand the insurance industry. As your agency grows, we are here for every stage — from purchasing your first agency to acquisition to perpetuation. Call us today.
Serving Agents throughout Wisconsin www.sfbank.com • 888.254.0615
wisconsin INDEPENDENT AGENT
| JULY 2021 | 19
Putting data to work
for your agency. Data alone is just that – data. But with the right format and strategy, it’s the ultimate business intelligence tool. Keystone’s data intelligence team, in partnership with AgencyKPI, can help you generate more revenue by aligning risks with the right markets to maximize your compensation potential and build niche market expertise. That’s how independence works better together. FOR MORE INFORMATION, CONTACT: JoAnn Hartung 570.473.4340 | jhartung@keystoneinsgrp.com keystoneinsgrp.com ©2020 Keystone Insurers Group ®. All rights reserved. This does not constitute an offer to sell a franchise in any state in which the Keystone Insurers Group franchise is not registered.
Agency Solutions TRUSTED CONSULTING FOR THE INDEPENDENT AGENT
We know how important it is for you to succeed in business. The IIAW has created a portfolio of solutions built just for you.
OPERATIONAL EVALUATION Evaluate agency workflows and operational procedures with a customized plan for your agency
VISIT IIAW.COM/AGENCYSOLUTIONS TO START YOUR FREE PERSONALIZED EVALUATIONS.
Explore other Agency Solutions evaluations:
TECHNOLOGY
STRATEGIC
FINANCIAL
MARKETING
Questions?
Contact Mallory Cornell IIAW Vice President mallory@iiaw.com
WORKERS’ COMP
“WORKCATION” AND WORK COMP One day COVID will be a memory; however, some of changes in work options may continue, maybe into perpetuity. One is the option to work from home – or anyplace the worker desires.
office location, 3.A. assignment is easy. Regardless where the employees live, only the state in which the operation(s) is/are located must be considered when extending status as a 3.A. primary state.
Until COVID, the majority of “office” workers were required to regularly be present in a central office location. Whether the requirement was daily, threedays-a-week or even once a week, the employees’ presence in the office was required.
Even if the employer is located near a state line and has employees traveling across the border to get to work the Coming and Going Rule allowed the employer to ignore the employee’s state of residence for workers’ compensation purposes. Traditionally the coming and going rule holds that injuries suffered traveling to or home from work, or even while going to and returning from lunch, are not compensable.
COVID nixed this requirement for an extended period. Working from home, previously limited to just a few workers, became the normal operating procedure for millions of previously office-bound workers. This change in venue created unexpected workers’ compensation issues. The first was the need to consider the employee’s state of residence within the workers’ compensation coverage grant. Because work comp is state based, the policy responds only when a state is specifically listed as either a 3.A. (primary) state or granted protection as a 3.C. (secondary) state, which may or may not require a specific listing depending on the insurance carrier. Primary or 3.A. status is required when: • Gaps exist between the extraterritorial provisions of the home state and the reciprocity allowances of the state to which the employee travels to work temporarily; or • There are on-going (not temporary) operations in a state. Deciding which state or states require(s) listing as a 3.A. state is easy when the employees are based in a single location – such as an office building – until COVID-19 complicated the issue. Single Location Employees When employees work at a single location such as an 22 | JULY 2021 |
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The logic behind the rule is that the employee is not furthering the employer’s interest or serving the business’ need while traveling to or home from work; the employee is serving his or her own needs (the need to have a job and earn a living). Because of the coming and going rule, even when a location-specific employee lives in another state, the state of residency is not required to be listed as a 3.A. state. The employees are assigned to the operational location. COVID-19 Complications COVID-19 may have complicated or even negated the idea of the coming and going rule. Historically employers could “ignore” an employee’s state of residence, but COVID-19 pushed employees out of the employer’s location and required them to set up operations in their home. Now the state of residence matters. When employees work from their homes located in another state, there is a strong argument that there are now operations in the employee’s state of residency. Whether the employee’s home state needs to be listed as a 3.A. state is a function of permanency and the extraterritoriality and reciprocity provisions of the two states in question (the employer’s operational state and the employee’s state of residency).
If the employee likes working from home and the employer sees no drop in quality and quantity of work (maybe even an increase in both), working from home may become permanent. If these home-based “operations” become permanent, the employee’s state of residence should or must be included as a 3.A. state on the work comp policy.
• A webinar detailing extraterritoriality and reciprocity. The above referenced Risk & Reality Report is based on this webinar.
A Possible New Problem – “Workcation”
“Workcation?” No Problem: The No Problem, Problem
As employees have become accustomed to the freedom of home-based work and as employers have simultaneously accepted home-based employees, a new workers’ compensation problem has arisen – “Workcation.” Although the concepts of “work” and “vacation” seem mutually exclusive, the combined concept of “workcation” is now a “thing.” The employee may take the “work-from-home” opportunity on the road, so to speak, traveling to a vacation destination or to stay with family or friends in another state, all without interrupting their workflow. A New York-based employee may decide to go to Florida for a couple weeks. While there, the family “plays” while the employee works remotely. The employee still works the full day, they just aren’t at home. Does this “workcation” create problems with the workers’ compensation coverage? Is this a different problem than the employee who lives across the state line that is now working from home? The “Workcation” State Workers’ compensation, as stated earlier, is a statebased system. Agents must understand the concepts of extraterritoriality and reciprocity to prepare for the problems created by a state-based system. Every state applies its own rules to the issue of workers’ compensation, particularly in regard to workers who enter the state temporarily. Fortunately, the reality of extraterritoriality and reciprocity does not seem to apply in “workcation” scenarios. However, understanding extraterritoriality and reciprocity is still important. A detailed discussion of this important topic is available from many places in the Virtual University: • In the article, “Bad Things Happen When Employees Travel to Other States;” • A state-by-state breakdown of the extraterritoriality and reciprocity regulations (linked here); • A 41-page Risk & Reality Report entitled “Untangling the Work Comp Mess - When Employees Travel” detailing extraterritoriality and reciprocity; and
Does the state to which the employee travels for a “workcation” need to be listed as a 3.A. primary state for workers’ compensation coverage to apply?
Traditionally, the concepts of extraterritoriality and reciprocity involve direction and control. The question around whether workers’ comp follows the employee into another state arises because the employer directed the employee to enter another state to perform operations on behalf of the employer. The worker goes at the request of the employer. In a “workcation,” the employee is not directed to go to another state to work. The employer may or may not know where the employee is. Without direction and control, it seems unlikely the state from which the employee is working will or can assert that it has jurisdiction over the worker. Neither can the worker state that the employer is the proximate cause of their being in the other state (“I would not have been here were it not for my employer sending me”). In the absence of employer direction and control, the state of “workcation” does not seem to require assignment as a 3.A./primary state. If 3.C. is written broadly, even an “oops” is covered. Have Fun Employees who live and are now working in another state must be addressed by the workers’ compensation policy. However, an employee who travels for a short time to another state on their volition for a short-term “workcation” does not appear to require any change to the workers’ compensation policy. If the employee calls and asks, just tell them to have a good time and bring presents. Disclaimer: Because workers’ compensation is subject to 51 jurisdictional interpretations, this should not be relied upon as legal advice. Each situation differs based on the facts of the case. > Chris Boggs, IIABA Executive Director of Risk Management and Education
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SALES & MARKETING
BUSINESS RELATIONSHIPS HURT BY LACK OF TRAVEL, SAYS CHUBB SURVEY With COVID-19-related safety measures putting a damper on travel in the past year, much of the business world turned to remote tools to manage their client relationships that otherwise would be dealt with in person. Further, airlines operated 97% fewer flights in 2020 than in 2019, according to the American Journal of Transportation. Many business travelers have expressed concern that the lack of travel has hurt their business relationships, with 76% of respondents agreeing that COVID-19 has harmed their ability to maintain relationships with clients and business partners, according to a survey from Chubb. The survey polled business travelers from North America, Europe, Asia Pacific and Latin America where almost 1 in 4 say travel restrictions have made their jobs less effective. Areas that have been negatively impacted include client service and the ability to maintain relationships with clients and business partners. More than 4 in 5 respondents feel they are missing something in a business conversation because they cannot see body language or other visual cues that they would otherwise have gotten from an inperson meeting. However, respondents balanced this with concern over safety, with 87% of business travelers personally concerned about contracting COVID-19 during the pandemic and taking steps to protect themselves by wearing masks and social distancing. About three-quarters say they always follow government rules with one-quarter saying they sometimes follow COVID-19 restrictions. About 57% of respondents say they were comfortable flying domestically or internationally during the coronavirus pandemic. Just under half would fly only domestically, and slightly less than one-third would only fly internationally. 26 | JULY 2021 |
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Half of respondents indicate they would be comfortable staying in a hotel during the coronavirus pandemic. Only 30% would take a taxi or rideshare service and 23% would take a train, subway or bus. Approximately 1 in 10 say they’d be willing to attend a function or event with more than 100 people—despite health officials’ warnings against large gatherings. One in 5 respondents say they would not do any travel activity. However, 68% say they were more comfortable traveling for business than leisure because their livelihood depended on it. The coronavirus pandemic has increased business travelers’ awareness and the value of travel insurance, with 81% saying they’ll pay more attention to what travel insurance they have before taking a trip. And 86% agreed that travel insurance would make them more comfortable when traveling for business and leisure. Three-quarters say they would pay more to keep the middle airplane seat open. “Our survey shows that business travelers are now paying closer attention to what travel insurance coverage they have before they take a trip,” says John Thompson, division president of international accident and health at Chubb. “As COVID-19 recedes as a barrier to travel, the importance of best-in-class travel medical coverage and employer duty of care are increasingly being recognized.” Not surprisingly, the vast majority of respondents (82%) say they expect COVID-19 to have a lasting impact on business travel. Nearly 70% say they expect their employers to try to reduce business travel in the future to save money. > AnneMarie McPherson, Independent Agent News Editor
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CHANGE MANAGEMENT
FACING CHANGE HEAD-ON All throughout history, change has been associated with fear. The death of a king or a ruler could easily spark a war, typically to suit the self protection and interests of others. The Revolutionary War, The Civil War, the Suffragette and Civil Rights movements – just to name a few – were caused by hostility and opposition to changing the way things had always been done; to maintaining the status quo. While these are large scale examples, the premise is the same. Change in general can feel threatening and must be approached with that understanding. The landscape of the insurance agency is ever-changing and at a fast pace. The meld of generations is contributing to friction and pushback, creating challenging experiences for leaders across the board. Perpetuation plans, retirements, overlapping of generations – they have all contributed to this unrest, and the path to be forged is never going to be an easy one. You have likely heard the phrase “buy-in”. This sales tactic approach to change management is not new. In order for your employees to change, they must see that the change benefits them in some way. In other words, the participant must have something to gain. In theory, this method makes sense: it’s like a new car. All those new features offer a positive change and make it an easier sell. It becomes problematic, however, when the follow through, or the ask, doesn’t happen. Oftentimes, the leaders of change have much more on their plates than just a new process or new technology to implement, and opportunities to gain ground are missed. We are creatures of habit and will easily slip back into our old ways. When I was ten years old, my dad took over the family farm. When he did this, he tore out the stanchions 28 | JULY 2021 |
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and built a step-up parlor. He also built a free stall barn and bought many more cows. He purchased milkers with an automatic take off – it was a very fancy set up in the nineties. This was a family farm, though, so there were dynamics to consider. While it all went smoothly, I must assume that it was a bit of a shock to my grandparents. My great grandpa was also still around at this time; I can imagine that he thought this was quite the wild ride. Looking back, I think this was a great lesson for me, watching multiple generations of my family take on what had to be a risky and monumental change. My brother and I were a part of this process, and ultimately, the takeaway was this: you need be willing to learn. You must also be willing to unlearn. This is not to say we must forget, rather, I think it is important to remember where you come from so that you can see what you have gained. Another key component of change, and I cannot stress this enough, is that you do not need to be heard. It is far more valuable to be willing to listen. To understand the fears, or the threats that your employees feel they may be facing. This is imperative – this is how they become a part of the process, their voice contributing to the change. This is proactive work, and it is cooperative work. While they may not be the decision makers, it does not matter because they have given you the puzzle pieces you needed to determine your best course. For example, when reviewing new technology (which always comes with a price tag), once you have done preliminary meetings to understand the scope of the implementation and training, pulling together a small focus group is a collaborative next step. There more benefits than cons to this approach: you are able to spread the workload of the testing procedure (as well as the process buildout), you create buy in, and you train your soon
to be trainers. This is a victory for all parties involved. There is another part to this process, and it may be the most important: communication. There will never be a need to share every detail with the masses, but lack of communication will cause distress, discord, and lack of employee satisfaction. One of the recurring themes that I have heard during a change has been “I just want to know what is going on. I feel completely blindsided and out of the loop.” From the outside looking in, this is as clear as day. Allow everyone to feel like a partner of the change. You do not need to have all the answers before you communicate – you just have to dive in. I compare this to plastic surgery – if you wait for everything you want to be done, put together and ready to roll out, you will never leave the house. Change will never be complete. It will continue to evolve. When I go to certain cities, I have favorite routes to drive. I rarely stray from my chosen roads, as I know them well. Even if I might save some time, I operate under the assumption that I like this path better, I know it and it makes me comfortable. When I opt to try something new, I almost always find a new brewery or creamery or lake (listed in order of importance, of
course). Sometimes, though, I find a way that I don’t want to go. Or I end up stuck in road construction. Or both! My point is that you won’t know what you don’t want unless you are willing to stray from your usual path. This same concept can be applied to almost anything – trying new foods, new shoes, or even vacationing somewhere you have not been before. A life without change would be such a boring one. So would our work! It may feel that as soon as we become comfortable with something, it changes (like a process or an iOS update) – but if we can find ways to be the example, to communicate, to listen and to challenge our coworkers and employees to face it head on with collaboration instead of fear. The endgame is very clear: the insurance industry is evolving rapidly and it’s time to jump on the train. The biggest question remains: are you going to attack it proactively or are you always going to be trying to catch up? > Molly Anderson, Wisconsin Marketing Manager, Arlington/Roe
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GOVERNMENT AFFAIRS
WILL WISCONSIN FINALLY REPEAL STATE’S OLDEST MAIN STREET TAX? The stage has been set in ongoing state budget deliberations for Wisconsin lawmakers and the Evers Administration to support repealing one of our state’s oldest Main Street business taxes known as the Personal Property Tax (PPT). The Legislature is scheduled to vote to repeal the tax and send a bill to the Governor for his signature, but Gov. Evers has not indicated if he will sign the bill. A combination of a Second District Court of Appeals decision and a recent revelation that the state will end its fiscal year with an “unprecedented” surplus in revenues from tax collections makes a very compelling case that the Legislature may vote to finally put an end to this outdated, small business tax. IIAW has prioritized on behalf of its membership advocating for the outright repeal of the PPT. In 2015, IIAW teamed up with multiple other statewide organizations, now at 49 members, to form an advocacy group called the Coalition to Repeal the Personal Property Tax. The coalition is represented by nearly every business sector in the state with the sole purpose to end the PPT. Wisconsin’s personal property tax is one of our state’s oldest taxes and has been a part of the general property tax code since Wisconsin became a state in 1848. Early on, the PPT included taxes on everything everyone owned or used. However, over the many years of its existence most kinds of personal property have been exempted including personal household possessions, certain farm and manufacturing property, and property owned and used by a growing list of carved out organizations such as 30 30| | JULY JULY2021 2021 | |
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the YMCA, fraternal societies and hospitals to name a few. Under current law, personal property includes all goods, wares, merchandise, chattels and effects of any nature or description having any mercantile value and not included in the term “real property”, excluding personal possessions reserved for personal use. For purposes of the business personal property tax, this includes the actual physical items used in the daily operation of a business, including furniture, fixtures, machinery, equipment, electronics, leased equipment, supplies, signs, boats and all remodeling costs not paid for by a landlord. Over the lifespan of the PPT, the Legislature created a myriad of exemptions that have resulted in nonuniformity, frequent tax audits and costly litigation, especially for smaller employers. Certain businesses are subject to paying the tax and others are not, as well as some kinds of equipment are taxed in one municipality, but not in another. For many Main Street businesses, complying with the recordkeeping costs associated with the tax can be more expensive than the tax itself. And all of Wisconsin’s neighboring states such as Minnesota, Iowa, Illinois and Michigan have repealed their personal property tax laws. The Second District Court of Appeals ruled recently that taxpayers must go to the Wisconsin Tax Appeals Commission before bringing a challenge to a state court alleging the state Department of Revenue (DOR) has issued an unpromulgated rule. The underlying issues in the lawsuit, Wisconsin Property Tax Consultants & WMC v. Department of Revenue, are whether the DOR’s interpretation of the personal property tax exemption on machinery, tools, and patterns,
conflicts with state law and whether the agency has implemented this interpretation without going through the proper administrative rulemaking process. The effect of the court’s decision, which is likely to be appealed to the state Supreme Court, forces taxpayers to incur additional costs and time when seeking to challenge unlawful actions and interpretation by the DOR. The overly burdensome nature of the personal property tax, exemplified by the agency’s actions that led to this particular case, is another reason the tax should be repealed in its entirety. Then there’s the latest political news from several weeks ago that Wisconsin will realize an additional $4.4 billion in revenues in the current fiscal year. One major reason why the Legislature hasn’t repealed the tax up until now is because of the significant cost in doing so. Now legislative leaders are calling for using the extra revenues to return these dollars back to taxpayers and prioritizing repeal of the PPT should be at the top of the list for state budget consideration.
The coalition has voiced its support for the state fully reimbursing local municipalities for any lost revenue from repealing the tax, which would then allow municipalities to be held harmless without having to administer and collect the PPT. Wisconsin municipalities would benefit by not having to assess businesses, employers would benefit by not having to pay the tax anymore, and citizens would benefit from the additional revenue that employers could instead put toward their workforce and business. Repealing the personal property tax is not a partisan issue. IIAW and the coalition are asking members of the Legislature and Governor Evers to work together in a bipartisan manner to fully repeal the personal property tax once and for all.
>M isha Lee IIAW Lobbyist
News Members in the
GRANGE INSURANCE NAMED A TOP WORKPLACE IN COLUMBUS
Columbus, OH (May 14, 2021) - Grange Insurance, a leading property and casualty insurance carrier, has been recognized as one of the Top Workplaces in Columbus, ranking second in the large employer category. Grange also received a special award for communication based on standout scores from employee responses to specific survey statements. “Grange Insurance has a longstanding commitment to being a great employer. We are thrilled with this recognition that was awarded to us based on our associate feedback,” said Grange’s Chief Operations Officer, Doreen DeLaney Crawley. “COVID-19 has been in the driver’s seat this past year, and every associate has been impacted. This award proves the resiliency of our workforce and that during extraordinary times, Grange associates will rise to the challenge to support each other and deliver on our mission of providing peace of mind and protection during life’s unexpected events.” The Top Workplaces list is based solely on employee feedback gathered through a third-party survey administered by employee engagement technology partner Energage LLC. The anonymous survey uniquely measures fifteen culture drivers that are critical to the success of any organization, including alignment, execution and connection. Grange offers associates competitive salaries and professional development opportunities. The company also offers many work-life benefits, generous health insurance benefits, a 401(k)-company contribution and more. Grange adds the Top Workplaces award to a growing list of achievements in the past 12 months. The list includes 32 | JULY 2021 |
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Medical Mutual Pillar SHARE Award, Ward’s 50 list of top-performing P&C companies and President and CEO John Ammendola being named a Smart 50 executive in Columbus for the second year in a row. About Grange Insurance Grange Insurance Company, with $3 billion in assets and more than $1.3 billion in annual revenue, is an insurance provider founded in 1935 and based in Columbus, Ohio. Through its network of independent agents, Grange offers auto, home, life and business insurance protection. Life insurance offered by Grange Life Insurance and Kansas City Life Insurance. Grange Insurance Company and its affiliates serve policyholders in Georgia, Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, South Carolina, Tennessee, Virginia and Wisconsin. Learn more about Grange Insurance.
ARNHOELTER WINS CUSTOMER EXPERIENCE AWARD, CHOOSES ST. JUDE CHILDREN’S RESEARCH HOSPITAL AS CHARITY BENEFICIARY
Fond du Lac, WI (May 14, 2021) - Krista Arnhoelter recently received the Society Insurance Customer Experience Award in a brief ceremony at Society’s corporate headquarters in Fond du Lac. This award is presented quarterly to an employee nominated by his or her colleagues for exceptional efforts in serving Society Insurance policyholders. In recognition, Society donated $250 to St. Jude Children’s Research Hospital in Arnhoelter’s name. As a Senior Human Resources Manager, Arnhoelter has a vital role in helping Society’s employees navigate the many unique challenges of working during a pandemic. In the early months, she identified and shared resources to help employees adjust to an abrupt shift to remote work; worked with her Human Resources team to provide a COVID-19 dashboard for company executives; guided affected employees through contact tracing, medical leave and return to work; and established guidelines for paid time off, payroll, benefits and other items impacted by COVID-19 legislation. Arnhoelter coordinated with Society’s Wellness and Employee Engagement Committees to help employees stay connected while at home. Her work to update the Leadership Development program ensured continuous career-development opportunities.
To enhance the company’s talent pipeline, Arnhoelter’s team implemented virtual application and onboarding processes for new employees. As Society navigates the phases of re-opening its corporate office, Arnhoelter is working with an employee task force to ensure a safe and smooth return to on-site work. Regardless of where her colleagues are working, Arnhoelter’s dedication has ensured that employees can remain focused solely on the needs of Society’s policyholders. About Society Insurance Headquartered in Fond du Lac, Wisconsin, Society Insurance has been a leading niche insurance carrier since 1915. Society focuses on the small details that make a big difference to its policyholders while offering top-notch insurance coverage, service and competitive pricing to businesses in Wisconsin, Illinois, Indiana, Iowa, Minnesota, Tennessee and Colorado.
WEST BEND MUTUAL INSURANCE IS A NUMBER-ONE PLACE TO WORK
West Bend, WI (May 20, 2021) - West Bend Mutual Insurance recently took the number-one spot in the Best Place to Work in Insurance for the large employer category. This is the eleventh consecutive year West Bend has been recognized on this prestigious list of companies by Business Insurance magazine and the Best Companies Group. The Best Place to Work in Insurance national awards program is designed to identify, recognize, and honor the best places of employment in the commercial insurance industry, benefiting the industry’s economy, its workforce, and businesses. It recognizes West Bend’s commitment to attracting, developing, and retaining great talent through a combination of culture, benefits, and other programs associates value. Companies participating in the program include property/casualty insurers, group life/health insurers, reinsurers, third-party administrators, and agents/ brokers. West Bend Mutual Insurance Company took the top spot in the large company category for the Milwaukee Journal Sentinel’s Top Workplaces in Southeast Wisconsin. This is the tenth consecutive year in which West Bend has placed in the top four. More than 140 companies were named to the 2021 Top Workplaces list. “The recognition we continue to receive as a top workplace is very meaningful,” said Kevin Steiner, West Bend president and CEO. “Our associates are our greatest asset, and we have a responsibility to create and maintain
a positive workplace. The fact that, year after year, our associates provide feedback that has earned us these top rankings is outstanding. Congratulations to all of our 1,300 associates who work hard to make West Bend Mutual Insurance a special place.”
ACUITY ANNOUNCES ESSAY CONTEST FOR NATIONAL TRUCK DRIVER APPRECIATION WEEK
Sheboygan, WI (June 3, 2021) - National Truck Driver Appreciation Week, September 12-18, 2021, is when America takes the time to honor all professional truck drivers for their hard work and commitment in tackling one of our economy’s most demanding and important jobs. This past year has brought unique challenges due to the COVID-19 pandemic. However, truckers across the nation rose to the challenge and kept America moving. To celebrate the heroic efforts of drivers nationwide, Acuity is sponsoring its annual National Truck Driver Appreciation Week Essay Contest. The contest is open to truck drivers and their families as well as those with a personal connection to a truck driver. Entrants are invited to submit an essay of up to 500 words. Over $10,000 in prizes will be awarded, including a grand prize of $2,500 for each category. Entrants will be asked to answer one of the following two questions: • How has a truck driver in your life gone above and beyond during the COVID-19 pandemic? • How has someone in your life gone above and beyond in supporting a truck driver or their family during the COVID-19 pandemic? In addition to receiving a cash prize, winners will also be able to choose from a list of trucking charities to which Acuity will make a donation on their behalf. Entries are being accepted from June 1 until July 21, 2021. Submissions will be judged on originality and uniqueness of the story, use of language relevant to the topic, and creativity in how ideas are expressed. For more information, including official rules, judging criteria, and prizes, visit acuity.com/contest. Acuity Insurance, headquartered in Sheboygan, Wisconsin, insures over 125,000 businesses, including 300,000 commercial vehicles, and nearly a half million homes and private passenger autos across 29 states. Rated A+ by A.M. Best and S&P, Acuity employs over 1,400 people.
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COMMENTARY FROM COUNSEL
COVID-19 VACCINE UPDATES Starting with the October 2020 issue, I have written multiple columns on the rapidly changing legal and regulatory landscape employers face regarding Covid-19 vaccines. In this article, I will address the important legislative and administrative updates that have cropped up following my last piece on this topic. Ultimately, while employers still have flexibility to make decisions related to their employees’ vaccination status, the surrounding law is as fluid as ever. Stay in touch with legal counsel to ensure you are advising and advocating for your clients accurately and effectively. EEOC Guidance and Other Considerations On May 28, 2021, the Equal Employment Opportunity Commission (EEOC) doubled down on its earlier guidance and reiterated that employers may require employees entering the workplace to be vaccinated. As before, employers must provide reasonable accommodations to employees with underlying disabilities, or for sincerely-held religious beliefs, that preclude vaccination. Examples of reasonable accommodations include requiring an exempt employee wear a face mask and/or submit to periodic testing or allowing for continued remote work. The EEOC also OK’d asking employees to provide their vaccination status and creating vaccine incentive programs, but there are key considerations for both. First, while employers may ask their workers if they are vaccinated, the EEOC considers vaccination status documentation to be confidential medical information. Per the Americans with Disabilities Act (ADA), employers must store this confidential information separately from personnel files. See below for more confidentiality and privacy considerations. Second, the EEOC confirmed that employers may offer incentives to encourage employees to be vaccinated. The EEOC also noted that “incentives” can come in the form of either rewards or penalties. However, the incentive provided by the employer must not be so substantial as to be coercive. Now What? So the EEOC has given employers the green light to mandate vaccines and inquire into vaccination status, but the EEOC is not the only relevant authority for employers to heed when making vaccine-policy decisions. To begin, states can preclude employers under their jurisdiction from either mandating vaccines or even asking their employees vaccine-related questions. Bills have been introduced in most state legislatures seeking to ban employers from “discriminating” on the basis of vaccine status. In states such as Arkansas and Montana, these bills have already been signed into law. Legislative Republicans in Wisconsin have twice tried to pass similar measures, but Governor Evers vetoed both bills.
Make sure to stay in contact with legal counsel to track the status of these laws in Wisconsin and around the country. As suggested above, there are also federal and state privacy laws implicated by an employer’s decision to collect vaccination data from their employees. To start, while employers can inquire into their employees’ vaccination status, businesses should be careful not to delve into why an employee chose not to receive the vaccine. This is important for two reasons. First, these questions could lead to the discovery of an illness or condition that requires accommodations under the ADA. Second, knowledge of underlying medical conditions could increase the chances that an employee brings a disability discrimination claim should that employee experience an adverse employment action down the road. Next, several states have passed data privacy and security laws employers will need to consider when accumulating and storing private medical information. Most notably, the California Consumer Privacy Act (CCPA) requires, among other things, employers to provide written notice of both the CCPA and the company’s CCPA-compliant privacy policy prior to collecting personal data from employees. While the CCPA is the only law of its kind currently in effect, omnibus privacy laws are gaining traction in many state legislatures. Finally, most states require employers to take reasonable steps to protect personal information, and all states require employers to notify employees if their personal information has been exposed by a data breach. Conclusion Staying in regular contact with legal counsel will help keep you apprised of all updates to the rapidly changing legal and regulatory landscape surrounding vaccination and the workplace. This will not only help you manage your own agencies, but it will allow you to properly advise clients on the best ways to eliminate and manage risks associated with employee vaccination policies. Finally, stay tuned for more updates in this column in the months to come. This is not the first article on this topic, and it will likely not be the last.
>J osh Johanningmeier IIAW General Counsel
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