Wisconsin Independent Agent | November 2022 Magazine

“Let me consult my crystal ball.”

SAID NO AGENT EVER.

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But don’t take our word for it. Check out BOP-Pro products from UFG today. No crystal ball required.

ufginsurance.com/bop-pro

INDEPENDENT INSURANCE AGENTS OF WISCONSIN

725 John Nolen Drive Madison, Wisconsin 53713 Phone: (608) 256-4429 Fax: (608) 256-0170 www.iiaw.com

2022-2023 EXECUTIVE COMMITTEE

President: Nick Arnoldy | Marshfield Insurance Agency, Inc., Marshfield

President-Elect: Michael Ansay | Ansay & Associates, Port Washington

Secretary-Treasurer: Joanne Lukas Szymaszek | Johnson Insurance Services, LLC, Racine

Chairman of the Board: Marc Petersen | American Advantage - Petersen Group, New Berlin

State National Director: Steve Leitch | Leitch Insurance, River Falls

2022-2023 BOARD OF DIRECTORS

Janel Bazan | Avid Risk Solutions/Assured Partners, Middleton

Mike Harrison | R&R Insurance Services, Inc., Waukesha

Aaron Marsh | Marsh Insurance Services, Inc., Rice Lake

Kash Motlani | Ansay & Associates, Inc., Port Washington

Dan Lau | Robertson Ryan & Associates, Milwaukee

Andrea Nelson | Unisource Insurance Associates, LLC, Wauwatosa

Brad Reitzner | M3 Insurance Solutions, Madison

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 | Accounting Supervisor 608.210.2976 • kim@iiaw.com

Trisha Ours | Director of Insurance Services 608.210.2973 • trisha@iiaw.com

Evan Leitch | Agency Solutions Advisor 608.210.2971 • evan@iiaw.com

Kaylyn Staudt | Marketing and Communications Coordinator 608.210.2977 • kaylyn@iiaw.com

Jeff Thiel | Director of Agency Success 608.256.4429 • jeff@iiaw.com

Andrea Michelz | Education & Membership Engagement

Diana

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. © 2022 For information on advertising, contact Kaylyn Staudt, 608.210.2977 or kaylyn@iiaw.com.

A NEW CONVENTION EXPERIENCE

Save the date for InsurCon2023 on May 16-17, 2023, at the EAA in Oshkosh, WI. This year’s experience will have learning opportunities for everyone. With three different breakout topics you can choose the flight path that best fits your role and interests. Come soar with us as we explore agency valuations and perpetuation planning, become your own digital marketing Top Gun or book your direct flight to continuing education. Stay tuned as we release more information on our speakers, our schedule and more. You will not want to miss InsurCon2023 or the flight paths curated for you and your role!

Regis ati Opens in December

CON

EAA

Our keynote speaker:

Lt. Col. Waldo Waltman, The Wingman, is a Hall of Fame leadership speaker, executive coach and the author of the New York Times Wall Street Journal Bestseller, Never Fly

. He teaches organizations how to build trusting, revenue producing relationships with their employees, partners and customers while sharing his experiences as a combat decorated F-16 fighter pilot, sales manager and entrepreneur.

Learn more about Waldo Waldman and watch his inspiring video: bit.ly/MeetWaldo

AN INVESTMENT IN YOUR AGENCY

It is no secret that mergers and acquisitions are happening all around us in the insurance industry (and beyond). These important business decisions have many moving parts and new obstacles to face, both for the buying and selling agencies.

Over the past year, we have worked with many agencies to improve their workflows and procedures and add value to their agency. We do this by gathering data and feedback from agency employees. We value the day-to-day work by service staff, Account Managers, and Producers and it is important to get feedback from each individual role. This means anonymously asking operational questions and then following up on those responses with focused team discussions. We also review customer files and look for consistent naming conventions, attachments, signed applications, and strong documentation practices. The final piece of the puzzle includes reviewing the agency marketing materials and external facing website to ensure alignment of services and eliminate any language that could increase the agency’s standard of care or be used against an agency in a potential E&O situation.

The goal is to find the connection between what the agency wants/thinks is happening and what the actual work product looks like. There are always opportunities to improve and if the investment to identify and update is not a priority, these improvements do not get made.

Likewise, we have worked with agencies in the growth stage to create successful work plans for onboarding acquisitions and then auditing the onboarding process. It should come as no surprise that E&O exposures rise during acquisitions and when an agency has inconsistent workflows and procedures. It is critical to first know what the process should look like and then audit against those workflows. This not only creates a strong agency but also provides clarity for employees who may be struggling to change.

There are many options for adding value to your agency, but your team at the IIAW has been working diligently over the last five years to create an audit process that not only helps your agency operate more efficiently, but also decreases the risk of E&O claims and drives positive customer service. In the end, we are confident that the work we do with agencies has played an important role in education and operations. So whether you’re part of the M&A activity or just looking to take your agency to the next level, feel free to call your IIAW team and learn more about how we can partner together.

One more thing…if the operational improvement is not enough of an incentive, there are also guaranteed premium savings for all SwissRe policyholders!

> Mallory Cornell, Vice President, IIAW

An Interview With a Best Practices Agency - Alongi Santas Moss -

The 2022 Best Practices Agencies are recognized as the country's leading agents and brokers. The Best Practices Study uses data from these agencies to provide industry benchmarks and operational information on growth, profitability, productivity and financial stability. This year four Wisconsin agencies were named Best Practices Agencies: Alongi Santas Moss Insurance Agency, M3 Insurance, R&R Insurance Services and The Starr Group.

Mark and His Four Children That Work at the Agency

Front Row: Jim Santas, Jen Saelens Back Row: Matt Santas, Mark Santas, Ryan Santas

Alongi Santas Moss was named one of our Best Practices Agencies in Wisconsin. The IIAW recently interviewed Mark Santas, Alongi Santas Moss President.

Q: Tell us a little bit about your agency and your story.

A. I started in the insurance business in 1985. Like most people in my age group, getting in this business was an impulsive decision. With that said, I really have learned to love the insurance business. Insurance is constantly changing, every day presents a different challenge, and it can be quite rewarding at times.

Our main office is in Beloit, WI, on the state line between WI and IL. We have satellite offices in Janesville, WI, Argyle, WI and Rockton, IL. We offer all lines of coverage, but focus mainly on commercial insurance, serving the small/middle market.

Q. What does it mean to you to be named one of the four Best Practices Agencies in Wisconsin?

A. It is quite an honor to be named one of the four best practices agencies in WI. There are quite a few variables that factor into this process, but having growth, profitability and strong carrier partners are key components. Maybe we have been lucky, but I'd like to believe that our consistent approach to writing quality business, taking care of our customers and maintaining strong carrier relationships has paid off.

Q. What do you credit your success to?

A. Continuous improvement. Every time I come back from a conference or read a new article or book, our staff knows there are changes in the making. One of my favorite take-aways from the book, What Would Jesus Do if He Were CEO, is to treat your customers

as you would your best friend, with profit in mind. It's very important to us to maintain the trust of our carrier partners by doing front-line underwriting in our office to write good quality business and to take care of our insureds to know that their business, homes, cars and families are well-protected.

Q. What goes into becoming a Best Practices Agency?

A. It's been a lifelong effort to do the right thing. We have to remember that we serve both our clients and our carrier partners.

Q. What advice do you have for other agencies looking to be Best Practices Agencies?

A. Watch your ratios, be steadfast on controls, create Best Practices processes. Give your clients the best value for their hard-earned money.

Q. What benchmarks and strategies do you recommend adopting or adapting to improve an agency's performance?

A. Constantly trying to create more efficient and worthwhile customer touches. Create positive client interaction, stewardship reports instead of sales quotas. I believe your processes become your why and how you attract new opportunities, especially quality referrals. There is no higher compliment than when one of your customers sends another person your way to look at their insurance. Everyone needs insurance, and it is a privilege to be trusted to help our customers protect what is most important to them.

bit.ly/2022BestPracticesAgencies

Congratulations to the 2022 Best Practices Agencies in Wisconsin! Visit

to see the full list of Best Practices Agencies.

Alongi Santas Moss Beloit Office Staff (Left to Right)

Front Row: Kelsey Kuehl, Cyndi Pohl, Jean Lippert, Julie Crouch, Jen Saelens and Stacey Llanas-Wallis

Back Row: Matt Santas, Nick Hagen, Mark Santas, Jim Santas and Ryan Santas

2022 Emerging Leaders Fundraiser

The IIAW Emerging Leaders annual fundraiser is back and this year we are supporting three humane societies across Wisconsin; Dane County Humane Society, Humane Society of Southern Wisconsin and Fox Valley Humane Association

Last year, we surpassed our initial fundraising goal of $500, donating an incredible total of $5,725 to the American Family Children's Hospital! This year, our fundraising goal is $1,500, and we are accepting both monetary and physical donations to the chosen humane societies

How to Donate:

Monetary Donations: bit.ly/2022ELcreditcarddonation

Physical Item Donations: Each humane society has its own list of physical donations they are accepting, such as certain pet foods, cleaning supplies, pet toys, treats and more. You can find the full list of requested items from each humane society at bit.ly/2022ELfundraiser. These physical donations can be dropped off at the IIAW office (contact Evan at evan@iiaw.com) or you can bring them to the Emerging Leaders Holiday Party from 1 p.m. to 5:30 p.m. on December 15th at the IIAW office RSVP for the holiday party at bit.ly/2022ELHolidayParty

This fundraiser will run through December 14, 2022, and we hope to see you at our holiday party on December 15, 2022!

You know as well as anyone that today’s cut corner can easily turn into tomorrow’s missing piece. With our forty years of experience in specialized coverage and policies developed alongside actual restaurant and bar owners, you can rest assured that your policyholders are protected against the unique risks they face every day.

If you agree that details like these make a big difference, give us a call at 1-888-5-SOCIETY or visit societyinsurance.com

PERSONAL LINES

ARE YOUR CLIENTS' IN-HOME SYSTEMS PROTECTED?

From heating systems to washing machines, homeowners depend on the security, comfort, and convenience of their home systems and equipment. Many people assume these systems are protected by warranties, service contracts or insurance—but the reality is they're often not.

When home systems break down, the costs to repair or replace even one of them can run well into the thousands. Insurance advisers should educate their customers about home systems protection coverage (HSP) and make it easy for them to purchase it.

HSP coverage is not new and is widely available through both large national carriers and smaller regional carriers. This affordable endorsement pays for repair or replacement of a wide range of appliances and equipment that may not be covered by standard home and condo insurance. Nationally, HO3 and HO6 endorsements can range anywhere from $20 to $100, averaging about $25 to $40.

What HSP Covers

The HSP endorsement protects your clients' in-home systems and equipment from mechanical breakdown and sudden and accidental loss. It typically covers anything that cannot be unplugged or moved, such as central air conditioning and heating systems, refrigerators, washers and dryers, and more. It won't cover the coffee maker, blender or toaster. Nor does it provide coverage for losses due to wear and tear, including rust, corrosion, erosion, and deterioration; or physical damage caused by an event such as a lightning strike or fire.

Paid losses include the systems themselves plus the cost of loss of use, expediting expenses, food spoilage, and pollutant clean up.

Here are just a few examples of typical losses paid to HSP policyholders:

1) Central air conditioning. An insured came home to find that the temperature inside her home was 86 degrees Fahrenheit. A repair company was called to investigate and discovered the compressor was electrically grounded and had to be replaced. The paid loss after the deducible was $1,744.

2) Induction cooktop. While preparing dinner, a homeowner discovered his induction cooktop would not turn on. A repair person discovered the cooktop had experienced a control device failure, which burned

out all the heating elements. The entire cooktop had to be replaced. The paid loss after the deducible came out to $2,050.

3) Freezer. A homeowner returned from a week at the beach to discover their freezer chest had stopped working. The freezer's cooling coils experienced an electrical breakdown, and all contents were spoiled. Replacement coils were not available, and the freezer had to be replaced. The paid loss covered the freezer and the spoilage, and after the deducible it came to $4,950.

4) Furnace. A homeowner woke up and noticed his furnace wasn't working. The repair person found it was due to a failed blower motor. Replacement parts were not available, and the furnace had to be replaced. Due to extreme temperatures, the insured needed to stay two nights in a hotel. The paid loss covered the furnace and hotel expenses and after the deductible clocked in at $9,846.

How Homeowners Benefit

There are many reasons HSP coverage is important today. For starters, consumers own more home systems than ever before. The technology used to manufacture them is highly sensitive and has a limited lifespan. Further, extreme weather keeps home systems running overtime. And working from home means even more wear and tear.

With HSP, customers gain the peace of mind of affordable coverage far beyond a typical HO3 and HO6 policy. For agents, HSP reduces errors & omissions liability and helps avoid difficult conversations when customers are not covered.

Reach out proactively to inform customers about HSP coverage. Share claim examples to educate them about what HSP will and won't cover. Many agents even roll coverage onto their books of business with a customer opt-out option. Applying your knowledge and expertise in today's rapidly changing world can help reduce customer anxiety about the future and set you apart as a true trusted advisor.

This article was originally published on iamagazine.com in September.

Jim Hyatt,

>

Chief Underwriter & Executive VP, Arabella Insurance Group

We're looking for volunteers to serve on the IIAW's councils and task forces. Each council and task force will act as a sounding board for the IIAW and will only have three virtual meetings per year. Participation in the IIAW task forces and councils gives you access to industry experts, exclusive networking events and FREE CE opportunities during most virtual meetings when content allows.

Personal Lines Task Force

For individuals who are interested in or who have a role in Personal Lines insurance

Virtual Meeting from 9 a.m. to 11 a.m. on 3/2/23 and 7/13/23

Commercial Lines Task Force Employee Benefits Task Force

For individuals who are interested in or who have a role in Commercial Lines insurance

Virtual Meeting from 9 a.m. to 11 a.m. on 3/1/23 and 7/12/23

For individuals who are interested in or who have a role in Employee Benefits

Virtual Meeting from 9 a.m. to 11 a.m. on 3/9/23 and 7/20/23

Industry Relations & Operations Council Government Affairs Council Emerging Leaders

For insurance professionals who have an operational or leadership role within an agency or company

Virtual Meeting from 9 a.m. to 11 a.m. on 3/7/23 and 7/18/23

For individuals interested in staying informed and providing feedback to the IIAW's Board on Wisconsin & national legislative and political happenings.

Virtual Meeting from 9 a.m. to 11 a.m. on 2/28/23 and 7/11/23

For insurance professionals looking to cultivate their skills for a successful career by engaging in association activities, professional development, education and events.

Virtual Meeting from 9 a.m. to 11 a.m. on 3/8/23 and 7/19/23

All agency employees and Silver, Gold, Diamond & Exclusive Supporting Company Members are welcome to participate in one or more groups!

has your back.

At Western National Insurance, nice is what’s guided us for over 100 years. And we’re just getting started.

Western National Insurance. The power of nice.

AVOIDING THE QUIET QUIT

Burnout, stress, overwhelming amounts of work with no end to the monotony is causing the latest workplace phenomenon: quiet quitting.

Quiet quitting is not taking the job too seriously. Checking out. Going through the motions at work and drawing strict boundaries around overtime and protecting the things that matter more than work. Increasingly, employees are checking out emotionally while still holding down a job.

According to a Gallup poll, 31% of Gen Z and millennials are reporting lower engagement at work. While the problem is not limited to the younger generations, they are the ones who are quiet quitting more often than their older counterparts.

As the pandemic put pressure on employees and organizations alike, many workers realized that the amount of stress and extra work they were taking on was making them burn out fast. Going above and beyond to extend themselves no longer appeals. So they are setting muchneeded boundaries around their time and their lives.

So how can organizations keep workers engaged, especially in today’s remote and hybrid cultures? The answer is partially in the question: remote and hybrid cultures demand a more flexible management style. Because we no longer work in the same building at all times, trying to manage the same way as in a physical

space no longer fits. Employees can easily feel left out, disconnected, and unseen.

It becomes more critical, therefore, for management to engage with their workers both as teams and on an individual basis.

Lead with communication: The successfully engaged employee feels they are seen and heard. Shift your company culture to not only encourage feedback from workers, but also to have management and workers collaborate on how to solve issues and improve the employee experience.

Start with restructuring your performance-related feedback. Work with employees to set individual goals, then help them reach them. Give them access to additional training or mentoring. Supply them with the tools needed to get the job done. Then set benchmarks and a feedback loop that allows them – and you – to track performance and correct where needed.

Also, check in with your employees every day. Make sure you acknowledge things like performance milestones, birthdays, weddings and babies. Be the kind of manager you’d want to have if you were working for the company. In other words, be accessible. Make their success your goal.

Embrace the whole employee: Employees aren’t just defined by the work they do for you.

They have lives, pressures, and plenty of concerns and goals outside of work. Those issues aren’t left at the door, either. An International Foundation of Employee Benefit Plans survey found that 76% of employers say an employee’s financial issues have resulted in increased stress, 60% say the issues have contributed to a worker’s inability to focus while at work, and 34% say financial pressures have caused absenteeism or tardiness in their employees.

Give employees help in locating the resources they need to resolve or at least manage the issues in their personal lives. That support can help improve both their personal situations and improve their performance at work.

Show a little trust: Come on, are you really all that concerned if your employee, who is a hard worker who meets performance goals, needs an extra day off work? The same goes for requiring eight-hour, nine-to-five days. Your employee’s best hours could be between 4 pm and 9 pm,

and they may get more done in those five hours than they could manage in eight in your office.

Stop measuring value through attendance. It never made sense anyway. What’s important is if they are meeting their performance goals. If the work is done, the goal has been met whether it happened in a normal eight-hour day or at 7 am before your employee’s kids woke up.

In fact, as remote work grows in popularity, you’ll find that a new management style that puts the emphasis on where it should have been all along – on employee productivity and well-being – will result in happier, more engaged workers. By emphasizing flexibility and communication, your organization can be stronger and more competitive.

PROFESSIONAL LIABILITY EXCLUSIONS CAN CREATE UNCOVERED CLAIMS UNDER COMMERCIAL GENERAL LIABILITY POLICIES

Many agents insure small artisans and contractors such as plumbers, heating and cooling contractors, and other trade providers. While most contractors understand the need for general liability coverage to protect them, many do not realize that they may have a big gap in coverage. That gap – professional liability insurance. Even if contractors do not create plans or engage in design work, there can be instances where they provide significant professional advice.

Consider the following scenario. A plumbing company offers whole home plumbing inspections for new home buyers while in their inspection period. They want to know the condition of the sewer line, the age of the water heater, or even if the builder correctly tied the sewer line into the city sewer system.

While the plumber is highly experienced, in one case, he misses that the Orangeburg sewer line is extremely degraded, and after the homeowners move in, they soon face a costly sewer line replacement.

As you can imagine, the first phone call from the homeowner to the plumber begins, “I would never have bought the house if you had told us about the Orangeburg sewer line!"

That situation creates no property damage or bodily injury to trigger the general liability policy, and no professional liability policy in place where the plumber can turn. This type of allegation and any subsequent claim would probably not trigger the commercial general liability policy's insuring agreement. Even if the angry homeowner files suit unsuccessfully, the contractor faces costly legal bills to defend himself.

When selling a businessowners policy for smaller artisans and contractors, the same holds true. Without bodily injury or property damage allegations, your contractor could face coverage problems.

COVID Allowed Contractors to Expand into New Service Areas

“Many contractors have expanded their services for a number of reasons," according to Elise Farnham, CPCU, the owner of Illumine Consulting in Texas. “These can include controlling the process more efficiently, to increase revenue, and perhaps to better schedule their work pipeline."

Expansion of services may give rise to exposures for professional liability, especially when contractors add design/build services, Farnham explained. “For instance, the contractor may design [a project's] interior systems. If those systems fail to perform as promised, not only is there exposure for contractual liability, but also for failure to design the systems so that they would provide an agreeable user experience."

When COVID hit, many homeowners used the workfrom-home opportunity as a chance to remodel. Consider that same plumber who completes a bathroom remodel, which functions flawlessly. However, the plumber failed to adhere to current Americans with Disabilities regulations, and when the homeowners try to sell the home, this oversight becomes a problem.

Again, there is no property damage or bodily injury, so the general liability policy will probably not respond.

For these reasons, “Smart agents include professional liability coverage when quoting the contractor's commercial general liability (CGL)," according to Farnham.

During COVID, many contractors morphed into other services to take advantage of the home remodeling boom. The expansions can create liability the CGL, or the BOP, would not cover. For example, restoration contractors may have expanded into stand-alone disinfection services, which can create new liabilities, including pollution issues. Roofing contractors may begin offering consulting services so that condominium associations can triage needed repairs. It is always a good idea to reach out to your artisans and contractors to determine if they have changed the scope of their services.

In another example, many plumbers offer prepurchase plumbing inspection services for potential home buyers. If the plumber fails to detect a major problem, for example an Orangeburg sewer line that quickly needs replacement post-purchase, the homeowner may come back to the plumber and say, “If you had told me about the sewer line issue, I wouldn't have bought the house!"

Watch Those Exclusions for Residential Work

Some commercial general contractors began taking residential remodeling projects during COVID as homeowners began the work-from-home transition. According to this article by Chris Boggs, many insurance carriers may exclude residential work on the CGL policy. Now is a great time to remind your contractors that if they have begun working on residential projects, to reach out to you. Additionally, they will have a completed operations issue once they have completed their residential projects.

Always offer your contractors the option of a professional liability quote and explain any exclusion for “professional services" on their policies. Document this explanation and your client's rejection in your agency management system.

This article was originally published on independentagent.com in August.

McPherson Spears IA News Editor

> AnneMarie

Exciting news! Our preferred digital payment processor, ePayPolicy, is offering our members their first three months of ePayPolicy for free. And on top of that, new and existing customers have the chance to upgrade to their Integrated Plan for no extra cost (saving you $25/month).

With ePayPolicy’s payment solution, you can collect credit card and ACH payments online while passing on transaction fees to the insureds. You get access to a streamlined dashboard where you can manage your account and transactions.

Ready to get started? Go to epaypolicy.com to schedule a demo or call a product specialist at 844-372-9300

Workers’ Compensation

We distinguish our Workers’ Compensation coverage by providing value-added services before, during, and after a claim.

Upfront loss control measures

Responsive claims handling Facilitation of quality medical care (when an accident does occur)

We’ve been successfully protecting our policyholders and their employees since 1983. Browse all of our products at www.guard.com

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 ser vices of national carriers.

Interested in partnering with a thriving insurance carrier with superior customer experience? We are looking for select commercial-lines agencies in Wisconsin.

Contact: Vicki Lentz 262-432-3420 vlentz@pnat.com

Contact: Clayton Zogata 715-383-5454 czogata@pnat.com

• Strong financial performance and A.M. Best Financial Strength Rating of A-

• Expanded Commercial Lines products and services with competitive pricing and comprehensive coverages to help our agents grow profitably

• Comprehensive Personal Lines product offerings, including Homeowners Equipment Breakdown and additional protection plans

• State-of-the-art quoting, processing and self-service tools, making it easier and faster to meet your customers’ needs

• Local, experienced underwriting, claims and management staff

Members in the News

DAVID ZELLER NAMED RVP OF WAUKESHA OFFICE

put in place five years ago to centralize all affiliate operations in Columbus, commit to a disciplined and coordinated underwriting strategy, materially reduce expenses, invest in new workers’ compensation capabilities through the affiliation with the BrickStreet family of companies, and reorganize as a mutual holding company under the Encova Insurance brand,” Encova President and CEO TJ Obrokta Jr. said. “We are equally convinced that our commitment to the independent agency distribution channel with our shared commitment to ‘profitable growth’ led to this upgrade.”

According to AM Best’s release, the rating reflects the strength of Encova’s finances as a key contributor to this upgrade. Over the last four years, the company has seen significant improvement in underwriting and operating performance. AM Best also stated that “favorable net earnings and returns on policyholder surplus with disciplined underwriting practices and a conservative investment strategy” were factors in the decision.

Waukesha, WI (9/9/22) - We are pleased to announce the appointment of David Zeller, CPCU, as RVP of our Waukesha Office, and his election as president and CEO of Partners Mutual Insurance, effective Sept. 19. Rich Keith, who has served as Waukesha RVP and as Partners' president and CEO since 2016, is transferring to our Pittsburgh office as RVP.

Dave joined our company in 1992 as an underwriting assistant, and advanced through several underwriting positions. Most recently he has been serving as underwriting manager in Waukesha.

To his RVP role, Dave brings the depth and breadth of 30 years of experience with us, and in the region, in both personal lines and commercial lines. His experience and strong relationships with our staff and agents will create a seamless transition and a continuation of our profitable growth.

As we begin to write business in Minnesota later this year, Dave's insurance acumen and leadership skills will guide this important growth opportunity for our company.

Dave said: "I look forward to working with our agents to build on the strong growth and profitability trends in our Wisconsin, Iowa and soon-to-be Minnesota books of business. We do business with people, and it’s a personal connection that makes the difference. I’m honored to serve our agents and policyholders in this new role."

ENCOVA INSURANCE UPGRADED BY AM BEST TO A (EXCELLENT) RATING

“What started with an affiliation more than five years ago has really grown into something exceptional,” Encova Board of Directors Chairman John J. Bishop said. “I’m proud of TJ, the entire leadership team, and all associates and agents who have been part of Encova’s success.”

“We have an incredible story to share, and I’m honored to lead this company on this journey,” Obrokta said. “We continue to strive to be the carrier of choice for our agents and policyholders.”

ABOUT ENCOVA INSURANCE: Encova Mutual Insurance Group provides commercial, auto, home and life insurance.

A super-regional carrier ranked in the top 20 mutual insurance companies in the United States, Encova is rated A (excellent) by AM Best, the leading provider of insurer ratings. Encova includes more than 1,100 associates writing in 28 states and the District of Columbia, premiums in excess of $1 billion, a surplus in excess of $1.96 billion and assets in excess of $4.8 billion. The group markets insurance solutions through more than 2,000 independent agencies in the Midwest, Northeast and South.

SECURA INSURANCE PROMOTES KEVIN SLESTINKI TO CHIEF UNDERWRITING OFFICER

Neenah, WI (10/3/22) - SECURA Insurance promoted Kevin Klestinski to Chief Underwriting Officer effective Oct. 3, 2022.

Columbus, OH (9/19/22) - Encova Mutual Insurance Group has been upgraded to an A (excellent) rating with a stable outlook by AM Best, a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry.

“We view this upgrade as affirmation of the plan we

"Kevin has shown his innovative mindset both with products and with processes by consistently broadening SECURA’s specialty appetite, implementing systems and functionality to help our underwriters more efficiently serve our customers, and profitably growing our specialty book of business over the last seven years,” said Garth Wicinsky, SECURA’s President & CEO.

“An internal promotion to this role speaks to the bench strength of our associates, and I’m excited for the leadership, enthusiasm, and strategic thinking Kevin will bring as he serves our independent agent partners and leads our underwriting units.”

Klestinski joined SECURA in 2015 as Vice President –Specialty Lines Underwriting where he was responsible for the profitability of the carrier’s Specialty Lines property and casualty insurance products.

Prior to this, Klestinski worked as Vice President of Property and Casualty Underwriting at CapSpecialty Insurance where he led both their Admitted and E&S divisions, and he also held various commercial underwriting roles at Acuity Insurance. Klestinski holds a Bachelor of Business Administration Degree from St. Norbert College in De Pere, Wis., and has the CPCU, CIC, CPIA, ASLI, AU, and AIS designations.

“I am extremely humbled by the opportunity to lead the Underwriting unit at SECURA,” said Klestinski. “I’m excited to work even closer with our great agency partners, along with our underwriting teams, to help meet the needs of our policyholders.”

ABOUT SECURA INSURANCE

SECURA Insurance, headquartered in Neenah, Wis., is a regional group of property-casualty insurance companies operating in 13 states. Approximately 550 independent insurance agents represent the group, which provides a broad range of competitive commercial, personal, farm, nonprofit, and special events products. SECURA Insurance is known for providing exceptional service to its agents and policyholders since 1900, and is rated A (Excellent) by A.M. Best for its excellent ability to meet policyholder obligations. It is a Ward’s Top 50 company for outstanding results in financial performance and consistency over a five-year period, and it is a certified Great Place to Work. Visit www.secura.net to learn more.

ROB OWEN WINS SOCIETY INSURANCE CUSTOMER EXPERIENCE AWARD

He consistently maintains a positive, can-do attitude.”

Earlier this year, Owen worked day and night to solve an issue regarding a complex policy quote involving an insured with 44 business locations. He led his team through the process of pinpointing the root cause, designing a repair and delivering a completed quote. Owen then followed up with his co-workers to provide the key details to implement a permanent solution for the issue.

Owen’s unique combination of expertise and dedication to serving policyholders and agents makes him a trusted technical resource inside Society’s walls as well as an integral advocate for customers throughout the country.

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, Colorado, Georgia and Texas.

WEST BEND MUTUAL INSURANCE ANNOUNCES JACQUES PROMOTION TO PRESIDENT

Fond du Lac, WI (10/4/22) - Rob Owen 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 Habitat for Humanity of Fond du Lac County in Owen’s name.

In his role as an application solutions analyst III on Society’s information technology team, Owen works to optimize technology resources to improve the performance of systems and applications. As the employee who nominated him for this award observed, “Rob willingly shares his technical knowledge in a way that helps get everyone on the team working towards the same goal.

West Bend, WI (10/11/22) - West Bend Mutual Insurance Company announced the promotion of Rob Jacques to president. Jacques has been with the company for 22 years and is a senior officer leading West Bend’s Commercial Enterprise. As president, he will continue to support the company’s corporate strategies and operating principles.

Kevin Steiner, current president and CEO, will remain as CEO and looks forward to working with Rob Jacques in his new role as president.

“Rob has the support of an excellent group of officers and leaders at West Bend. He’s a strong advocate of our company’s culture. He recognizes that the outstanding success our company has enjoyed for the past decade is due to the relationships we’ve built with our associates and agents working for and representing our company,” stated Kevin Steiner.

Rob Jacques also serves as a director on the boards of the West Bend Area Chamber of Commerce, Feeding America Eastern Wisconsin, and the Kettle Moraine YMCA.

For more than 125 years, West Bend has been providing valuable insurance coverages and services to business owners, as well home and auto owners. West Bend has earned a reputation in the industry for building and nurturing strong relationships with agents through personal contact, responsible actions, and a genuine concern for its valued partners. Today, more than 1,500 independent insurance agencies across 15 states represent West Bend.

Honest relationships

SECURA’s team of insurance experts is making insurance genuine. They are here to support you and your clients. Our underwriting teams are quick to reply, open-minded, and know their stuff. Plus they are backed by our caring claims group who will get your clients back on their feet.

Interested in building a relationship? Contact us at secura.net/WI-agents.

PROVIDING LONG-TERM FINANCIAL AS SHORT-TERM WORRIES EASE

Despite turbulence in the economy, a record number of Americans reported that they would be able to cover an unexpected $400 expense, according to the Federal Reserve's annual “Economic Well-Being of U.S. Households" report.

At the end of 2021, 78% of adults reported that financially they were either “doing okay" or “living comfortably," the report found. Also, 68% of households said they could cover a $400 emergency expense using cash or its equivalent, which was the highest share the survey has ever recorded and up from 64% at the end of 2020.

Yet, according to new findings from the “2022 Insurance Barometer Study," conducted jointly by nonprofit industry trade associations LIMRA and Life Happens, as many as 2 in 5 parents say they are “barely" or “not at all" financially secure. And while the Federal Reserve's report found that a record number of Americans expect to be able to cover a $400 doctor's bill or a car repair, the 2022 Insurance Barometer found that most households haven't prepared for the loss of a primary wage earner. As many as 44% say it would take less than six months to feel financial hardship if their family lost their breadwinner.

With financial insecurity related to the loss of a loved one at its highest among Generation X (49%)— followed by millennials (44%), Generation Z (42%) and baby boomers (33%)—one way to ease these concerns is life insurance. Sixty-eight percent of life insurance owners report feeling financially secure compared with 47% of non-owners. Those who feel most secure are people who have life insurance both through the workplace and through individual coverage (78%).

“Life insurance is the foundation of any strong financial plan, and our results show it provides people with a sense of security that many are looking for, especially after the last two years," says Faisa Stafford, president and CEO of Life Happens. “The lasting impact of COVID-19 remains at the forefront for many, with the pandemic leading almost a third to say they are more likely to buy life insurance in 2022."

Meanwhile, the “need gap" for life insurance—what people have versus what they say they need—is at an all-time high and more than double what it was 12 years ago. For the sixth consecutive year, the 2022 Insurance Barometer Study found that the percentage of uninsured women has increased. Just 46% of women report owning life insurance, compared with 53% of men. However, a greater proportion of women than men recognize they need—or need more—coverage, with 44% versus 38%, respectively, admitting they lack coverage.

Despite their acknowledged need, just over a third of uninsured women (36%) say they plan to buy life insurance in the next year. The reasons women give for not having coverage include: it's too expensive (39%); other financial priorities (37%); and uncertainty as to how much or what type to buy (22%).

“There are still over 100 million people in this country who don't own enough life insurance" said David Levenson, president and CEO of LIMRA and LOMA. “And, while new policy growth jumped last year to the highest levels since 1983, there is still a lot that our industry can do to ensure that families are properly protected."

This article was originally published on iamagazine.com in August.

> Will Jones, Editor-in-Chief, Independent Agent

IIAW CONTINUING EDUCATION

2022 ONLINE EDUCATION & CE CLASSES

NOVEMBER & DECEMBER SCHEDULE

NOVEMBER

11/8 8AM-10AM Those Kids and Their Cars

11/8 10AM-1PM Understanding the Largest Government Benefits: Social Security 11/8 12PM-1PM Setting Business Income Limits: It’s Easier Than You Think 11/14 12PM-2PM Business Auto Claims That Cause Problems 11/15 8AM-10AM Builders Risk and Contractors Equipment 11/15 12PM-3PM Agency Management Based E&O and Ethics 11/16 12PM-2PM E&O Risk Management: Agency E&O Exposures and Defenses 11/16 2PM-5PM E&O Risk Management: Understanding Risk Mitigation & E&O Claims 11/17 8AM-10AM Personal Lines That Keep You Up at Night

11/18 9AM-12PM E&O - Commercial Property Coverage Gaps & How To Fill Them 11/21 9AM-12PM E&O - Roadmap to Homeowners Insurance 11/22 12PM-3PM Understanding the Largest Government Benefits: Social Security

DECEMBER

12/1 9AM-12PM E&O - Commercial Property Coverage Gaps & How To Fill Them 12/1 12PM-2PM The Guy in the Bar Returns 12/2 9AM-12PM E&O - Roadmap to Homeowners Insurance 12/2 12PM-2PM Personal Lines That Keep You Up at Night 12/5 12PM-2PM Those Kids and Their Cars

12/6 12PM-2PM Contracts Agents Should Read 12/6 12PM-2PM Embracing Directors & Officers Liability Insurance 12/7 8AM-11AM Ethics in the Insurance Industry

has a 20year track record of beating the industry by more than double the growth and a full eight points on the combined ratio.

EMPLOYMENT PRACTICES TO AVOID: NO-POACH AGREEMENTS AND WAGE FIXING

As labor demand continues to exceed supply, employers grapple with how to recruit and retain talent. But employers, including insurance agencies, should be mindful of where creative strategies may cross the line to illegal practices. Some agencies seem to have already crossed that line: just a few months ago, AmTrust Title Insurance Company and First Nationwide Title Agency agreed to pay a $1.25 million penalty to the state of New York for entering into “no-poach” agreements with competitors.

Now that I have your attention—what are these so-called no-poach agreements? They are mutual agreements among competitors not to solicit, recruit, or hire each other’s employees. In the same vein, wage-fixing agreements are agreements among competitors about employee wages, salaries, or other compensation terms. Both of these agreements can be formal or informal, written or verbal. It is also important to note that, in this context, competitors mean competitors for employees, not necessarily competitors in products and/or services. Of course similarly qualified employees may well be in the same industry—think of your producers, customer service representatives and other valuable contributors.

By way of example, imagine your agency has lost a number of employees to another area agency. As an attempt to retain your workforce, you call up the competing agency owner and ask if they would agree to not hire any more of your employees or contractors if you agree not to hire theirs. Even if you have nothing in writing, this arrangement is a classic no-poach agreement that creates great risk for the agencies and individuals involved.

No-poach and wage-fixing agreements may violate federal and state antitrust laws, including the federal Sherman Act. When most people think about antitrust laws, they think about price fixing cartels or bid rigging – conduct involving products or services. But the hottest area of antitrust enforcement at present involves employees. Enforcement can take the form of civil lawsuits brought by the Department of Justice (“DOJ”), Federal Trade Commission (“FTC”), or private parties (such as employees). As seen in recent years, the DOJ can also criminally prosecute individuals, the company, or both.

In fact, the DOJ has issued indictments in at least six cases for no-poach and wage-fixing agreements since December 2020. For example, in United States v. VDA & Hee (a case in Nevada federal court), the DOJ alleged that a healthcare staffing company and its regional manager conspired with a competitor to not poach each other’s nurses and to fix their wages.

On October 17, 2022, the staffing company agreed to pay $134,000 as part of a plea agreement with the DOJ. After acquittals in two other similar cases, this is the DOJ’s first win in a criminal labor-side antitrust case.

These criminal cases do not come as a surprise considering the federal government’s recent guidance and agenda.

In 2016, the DOJ and FTC issued Antitrust Guidance for Human Resources Professionals, warning for the first time that the DOJ intended to criminally prosecute companies and individuals for wage-fixing and no-poach agreements under antitrust laws. Just last March, the Treasury Department issued a report on competition in the labor market. The report continues to reaffirm the intent of the FTC and DOJ to “vigorously enforce antitrust laws in labor markets.”

What can your agency do to prevent the DOJ from knocking on your door? It is important to train your executives and Human Resources personnel on the risks involved with no-poach and wage-fixing agreements. They should understand to whom to report internally if they hear about such agreements or if competitors attempt to engage in compromising discussions. In addition, reach out to legal counsel if your agency contemplates anything that resembles no-poach or wage-fixing agreements or discussions. There may be scenarios where these actions are permissible (e.g., a no-poach agreement as part of a joint venture), but they need to be carefully managed.

Finally, consider more traditional restrictive covenant agreements between the agency and the employee or contractor that contain employment restrictions. These “vertical” agreements could restrict the employee from working for a competitor during and after employment for a limited period of time (a “non-compete”), and/or restrict the employee from soliciting certain customers or employees post termination (a “non-solicit”). However, like with all new employment strategies, you should confer with legal counsel to understand the legal parameters of this dynamic area of law before implementing the agreements.

> Josh Johanningmeier IIAW General Counsel