This article was originally published in the August issue of the Wisconsin Independent Agent magazine. Read more from Wisconsin Independent Agent here. 

Henry Ford famously said, “Coming Together is a beginning, Staying together is progress, and Working together is success.” You have likely seen this quote a lot from the IIAW as it perfectly illustrates the type of community the IIAW is working to build among its members and stakeholders. An ecosystem of insurance professionals and solutions to help drive the industry to new heights.

Historically, the IIAW has brought together its members in the form of meetings, events, and conventions/conferences. In the COVID-19 environment that exists now, in-person gatherings can be difficult and risky, but the need to connect, collaborate and engage with other individuals has never been greater.  That is why, later this Fall, the IIAW will be launching a new online “curated” community and app where members can seek out and engage with other members/stakeholders within the association or with association staff/experts. Post questions, topics, and articles for feedback from other agency staff, insurance company employees, vendors, or staff. Search past posts or blogs to obtain valuable information quickly and easily. This platform seeks to bring insurance professionals together in a virtual curated format to provide a more cohesive, comprehensive, and responsive community environment to meet the evolving needs of our Association’s members, sponsors and stakeholders.  

Data shows an overwhelming percentage of members only sign-in to renew their dues and register for an event. The Online Community integrates with IIAW’s association management system and website to provide simple and quick access to community features such as blogs, forums, groups, member directories and more. Accessibility and personal interaction preferences are key to the platform. Instead of members interacting and engaging with content and other members in a more traditional format, the IIAW online Community will tailor its approach to the member by bringing together relevant data and information into an easily consumable and familiar source through the “My Feed” function.

Alerts are also an essential piece of the community online platform and SocialLink Mobile App. These Alerts keep the member engaged with instant updates on activity that is happening within their Community Feed and Connections. Alerts can range from updates to a particular post you have made or contributed to as well as Connection requests from other community members. The online community and app will have push notifications/alerts that populate member’s “My Feed” from the backend of the website allowing for the distribution of quick and relevant information.

Gamification is adding game principals or mechanics into nongame environments, like a website, online community, or learning management system to increase participation. The goal of gamification is to encourage the engagement with consumers, employees, and partners to inspire collaborate, share and interact. The IIAW will be incentivizing participation by integrating gamification into its platform. We will be rewarding users/members for their participation in the form of points that can be redeemed  for Amazon gift cards, local merchant gift cards, IIAW swag and more. It’s easy, participate to earn points, cash in those points for cool prizes.

In order for our new virtual community to succeed we need everyone to participate. We sincerely hope that you and your company will join us this Fall as we look to inspire, educate, collaborate, engage and connect with insurance professionals across Wisconsin to help drive the industry toward continued prosperity.

“Alone, we can do so little, together we can do so much!”  - Helen Keller

By: Mallory Cornell | IIAW Vice President and Director of Risk Management

This article was originally published in our February 2020 Wisconsin Independent Agent magazine. Click here to read our magazine, Wisconsin Independent Agent. 

recently read an article on PropertyCasualty360.com titled “Why Insurance Agents Must Monitor Online Consumer Reviews”. The last line of the article reads, “Your customers are online. Are you?” 

I appreciate this statement and have already used it during several conversations with agents. For me it resonates on a few different levels.

The relationship is not dead. Your customers, or prospective customers, still want to work with an insurance agent they can build a relationship with.The idea is that relationships just look a little different than they have in the past. Its much easier for a customer or prospect to “get to know you” because they can find more information about the person or the agency by going online. But what if they can’t get to know you by going online? What if they can’t find anything about you because you’ve decided its easier to just avoid being online? The article in PropertyCasulty360.com stated that “more than a quarter of millennials say they learned about an agent through digital engagement (online search, reviews or social media).” This demographic should be a key target for an agency looking to grow and be sustainable. To not have an online presence is immediately diminishing opportunities with this key customer group.

2. Agency presence versus individual presence. As an online admirer of independent insurance agents (does that sound creepy?), I appreciate the opportunity to see what agencies are doing in their community or how employees are being celebrated around the office. When an agency does not have a strong online presence, its usually because they don’t recognize the importance or they do not have an internal staff member interested in managing the page (which is an key piece). That’s fair, but what about individual pages? Should a commercial lines insurance professional always have a LinkedIn page? I would argue yes because business professionals want to see and know who they are working with. It can also highlight your experience and education in the industry. Individual Facebook pages are not the same as individual LinkedIn pages. User beware, if you are going to have a public Facebook page or be “friends” with customers you are increasing your exposure to knowing more than you would like to about your customer! And don’t forget, they can learn more about you as well.  Facebook (as well as Twitter and Instagram) is a much more social platform while LinkedIn is a professional social media site. There are risks associated with each and having a clear goal for using social media as an agency or as a professional is key. An agency Social Media Policy is another essential piece to this puzzle. (Need a template? Visit www.iiaw.com/AgencySolutions and find one under “Operational Resources” or reach out to any IIAW staff member)

3. Efficiently Grow Your Network. I applaud the industry professionals who take the time to attend networking events, local community groups and meetings and who spend time face to face with customers and prospects. Your time is more precious than ever, and these commitments take you away from your desk, the office and even your family on a regular basis. This is where social media and digital marketing are different. You can connect, engage and stand out online faster and easier than in a crowded room. It may take some practice, but the tools and resources exist to help you get started. 

What’s next?

If you are looking to become more active on social media and engage in the digital world, develop a plan and educate yourself. What is the commitment your willing to make and what will successful execution look like? Know the risks but also appreciate the reward.

By: Chris Boggs | Big "I" Virtual University Executive Director

“Who owns the building?” Asking this rather basic, four-word question can save your insured, you, and your errors and omissions carrier a major heartache and undue costs following a building damage claim.

Never assume a small, closely-held corporation is as simple as it appears on the surface. Exposure and legal realities often exist, the importance of which are not fully understood by the “business owner.”

Consider the following example, George Bailey owns Widgets, Inc., a manufacturer of widgets (who would have guessed?). The manufacturing operation is conducted in a building that, according to Mr. Bailey, is “owned by the insured.” However, Mr. Bailey owns the building individually.

Understand, Mr. Bailey is not attempting to mislead the insurance carrier or misrepresent the facts. In his mind, there is no distinction between the operations of Widgets, Inc. and the ownership of the building. To Mr. Bailey, it’s all the same because he owns both. Such belief is more common than many agents realize.

But within the realities of insurance and law, two separate “persons” are involved in this all-too-common situation. Potential insurance coverage gaps arise from the existence and participation of two separate

“persons.” Each natural person and legal person must be accounted for and managed separately within the insurance policy. (Natural persons are flesh and blood individuals. Legal persons are created by the filing of specific legal documents such as articles of incorporation or articles of organization.)

Natural persons and legal persons have the same rights; the right to sue, to be sued, to own property, etc. Therefore, each “person” presents his/her/its individual risk exposure that must be analyzed and specifically insured.

Unless each person’s exposure is properly addressed, the property policy may not respond to a property

claim for one of two reasons:

1. Lack of insurable interest; or

2. Lack of insurance protection.

Property insurance policies do NOT respond to a claim if insurable interest does not exist at the time of the loss. Likewise, if the party with insurable interest is not an insured, the policy does NOT pay.

Insurable interest, in a property insurance context, exists when a “person” suffers direct financial loss as a result of damage to or destruction of the specified property. If the “person” with insurable interest is not covered by a property policy, the loss must be paid out of that “person’s” resources. Insurable interest in real and personal property is created in one of three ways:

1. Ownership;

2. Legal liability: Responsible for someone else’s 

    property – like a dry cleaner is responsible for its 

   customer’s clothes; or

3. Contract: A lease agreement making another party 

    responsible for insuring the property.

Returning to the initial scenario: George Bailey owns the building individually, but Widgets, Inc. is the policy’s only named insured. If the building is damaged or destroyed by any covered cause of loss, the property policy covering the building owes – nothing. The legal person listed on the policy as the named insured, Widgets, Inc., did not have insurable interest; and the natural person with insurable interest, George Bailey, is not covered in the policy as an insured.

Beyond the individual (natural person) ownership of a building, one of several possible ownership scenarios

could exist that must be considered, anticipated and/or researched, including:

1. The building is owned individually by the “owner” of 

    the business operation (as in our example above);

2. The building is owned by several individuals;

3. The building is owned by a separate legal person; or

4. The building is owned by any combination of natural 

    and legal persons.

Attorneys often recommend such separation for various reasons. But sometimes, the building is not owned by the named business entity because it was purchased first, willed to the individual, or any number of reasons. Again, never assume ownership.

How is building ownership confirmed? The simplest way is to ask the question; specifically, “who or what entity owns the building.” Even Mr. Bailey in our example knows he owns the building individually, he just didn’t see or understand the need to tell the agent. Explain the need.

A second method requires individual effort, but it’s quick and painless in most circumstances. Research the county’s online tax, GIS, or other public record system. Most counties offer access to at least one public record. Once the proper site is located, an address search can be done. Depending on the county, massive amounts of building information can be found when such an online search is done:

• Year built;

• Square footage;

• Construction (sometimes);

• A photo or footprint drawing; and

• Who owns the building.

Once you become familiar with a particular county’s website, these searches can be conducted in a matter of minutes. A few minutes of work to save thousands of dollars in uncovered claims, E&O deductibles, and court time seems like a fair trade.

Managing and insuring the separate ownership exposure is the delicate and tricky part. Since the same “person” or groups of persons who/that own the operation also own the building, it is unlikely they will want to purchase a separate Lessors Risk Only (LRO) policy, which is an option.

In most “common ownership” situations presented previously, the owner(s) want the building insured on the same policy as the operation. Two main methods to accomplish this are:

1. Name the building owner as a named insured; or

2. Legally lease the building to the business. Naming the building owner as a named insured. As simple as this seems, this is often an improper or unavailable option – especially if that person (natural or legal) is involved in other ventures or activities. Remember, the specific operation was underwritten and adding named insureds has the possibility of extended protection to unintended or unexpected exposures.

Many underwriters are unwilling to extended what is  essentially LRO coverage in a package policy because of the uncertainty surrounding the breadth of the building owner’s operations. Underwriters may also be unwilling to add the additional named insured because it may own several building or be involved in other operations.

Legally lease the building to the business (named insured operation). This is the most proper way to manage and cover the building owner’s exposure. Remember, insurable interest can be created by contract. The lease agreement can and should be used to create insurable interest by making the tenant operation responsible for insuring the building. Once the tenant has insurable interest by legal contract, the building is properly covered and the building owner’s exposure can be protected by attaching specific endorsements:

• CP 12 19 Additional Insured – Building Owner: This is 

   a property endorsement extending property coverage 

   to the named building owner; and

• CG 20 11 Additional Insured – Managers or Lessors of 

   Premises: A general liability endorsement extending 

   additional insured status to the building lessor/owner.

Creating a proper lease and attaching the proper endorsements extends the necessary protection to the building owner without the need of a separate policy. This is also the best option because many underwriters are unwilling to add the building owner as a named insured on the operation’s (Widgets, Inc.) policy.

To end, never assume building ownership. Always ask what seems like a “duh” question. If the question isn’t asked, research ownership through the county’s website. Once ownership is known, insure the exposure.

By: Chris Boggs | Big "I" Virtual University Executive Director

Some plaintiff attorneys are almost giddy over the fact that several jurisdictions used the term “property damage” in their respective emergency declarations to justify closing “non-essential” businesses. These attorneys are hopeful that such wording gives them the ability to trigger a business income claim. Given the facts as that have developed since the situation began and those that are continuing to develop, pinning any hopes on such wording appears futile (but it’s entertaining to watch).

Insurance Journal’s article “Business Interruption Claimants Like How Some Localities Worded Emergency Orders,” introduced this discussion, but it doesn’t address the question, does the government calling the presence of a virus on a surface “property damage” factually make it property damage? Does stating something is blue in an emergency declaration make it blue?

Neither local, municipal nor executive orders appear to carry the force of a law, nor is it likely such orders change the facts of physical science. Property damage and what constitutes property damage is not dependent on terms used in an order intended to close businesses not seen as essential to the public good (other than the “public” who happens to own the shuttered businesses). 

Examples of these orders appear to be limited to counties or local orders rather than statewide orders. Orders applying “property damage” wording often read similar to this from New Orleans’ second order:

• Whereas, there is reason to believe that COVID-19 may be spread amongst the population by various means of exposure, including the propensity to spread person to person and the propensity to attach to surfaces for prolonged periods of time, thereby spreading from surface to person and causing property loss and damage in certain circumstances.....

Obviously, certain assumptions were made in the crafting of these declarations. The first is that the virus has a “propensity to attach to surfaces for prolonged periods of time.” This has since proven to be incorrect. A University of Alabama study published in the New England Journal of Medicine stated that the maximum amount of time the virus can live on certain surfaces is up to three days. Further, the CDC states that property to person infection is not a primary cause of infection.

Given this, the first presumption appears to be incorrect - lessening the effect of this hoped-for lifeline towards providing property damage. 

Second, the more disappointing for plaintiff attorneys, simply saying something causes property damage does not change the requirements of physical science. “Damage” is generally understood to mean a physical change in condition such that repair is required. In the case of the presence of a virus, what repair is required? The only possible type of required “repair” is cleaning the surface or the loss of the virus’ viability.

Additionally, the business income form requires more than just “damage” to trigger coverage, there must be “direct physical loss of or damage to property.” This is more than simply saying, “hey, there is damage.” The Big I through its Virtual University has penned several articles detailing the specifics of business income and what is required to trigger coverage. 

Lastly, the jurisdictional authorities seem to have hedged their bets with the closing phrase, “in certain circumstances.”

Simply, such wording in these executive orders does not appear to provide any benefit to the plaintiff attorneys. Improper assumptions and declaring a “fact” without evidence or the support of physical science does not change the reality. After all, if the executive order said the sky was green, that would not make it green.

By: Larry Neilson, CEO | Neilson Marketing Services

As an agent, right now could be the best time ever to begin a marketing effort to organically grow your commercial lines book of business. We are just coming out of two to three months of the most monumental government shutdown of commerce in history. There are still disagreements over whether the recovery will be V, U, or L-shaped but early indicators from the airline and hospitality industries coupled with the most recent jobless-rate drop and payroll gains are encouraging.  

Additionally, businesses receiving renewal notices are experiencing some of the biggest premium increases they have seen in years. The market is continuing to harden with a generation of producers who has never experienced this cycle before. They are going through the renewal process with a business-as-usual approach, not realizing these premium increases should be viewed as an invitation to ask prospects to seek an alternative. How do we know? For one thing, we are seeing among our own agency clients a considerable uptick in lead conversions as a result of today’s market. 

Many agents, however, are wary of getting started too soon and have more of a “let’s wait and see what happens” point of view, regardless of the hard market opportunity. But while those agents wait, the larger brokers are moving to get started with their marketing plans that include a multi-prong strategy. 

Upping the Marketing Game

Multi-modality marketing encompasses digital marketing, demand-generation marketing, and social media. It all begins with your brand and website, which should be carefully analyzed to determine if the site is doing what you need it to do:

• Does your website truly reflect your brand, tell your story – what distinguishes you in the marketplace, why and how can you make a difference in a client’s insurance protection?

• Is your website optimized properly so that you can be found by people who don’t necessarily know your name?

• Is your site properly programmed/coded to provide an enriched user experience across all devices, particularly because mobile devices now account for nearly 57% of Internet traffic?

• Is your site ADA-compliant?

• Are your social media channels set up to thematically align with your website and brand?

• Do you have an organized purposeful content and link-building plan in place? Are you regularly blogging, producing white papers (on why the hard market exists and what it means to business owners, for example), case studies (successful placement of tough accounts), and other share your expertise and thought leadership, especially salient in challenging times?

Once your website and social media platforms are thoroughly reviewed and you have made the necessary changes, which may involve anything from implementing minor adjustments to a total site revamp, the next step is to leverage available data. Identify your prospect base by class of business, minimum employee size and geographic boundaries. Append as much data as you can, including multiple C-suite contacts with emails, phone numbers, and workers compensation X-dates if they are available in your state, to begin prospecting.

Set up a demand-generation email program. This involves creating an email-funnel strategy to attract, engage and convert prospects to customers. An email funnel will help you get your potential

customers from point A to B, step-by-step, and influence them along the way toward your conversion goal. One you have your strategy in place, design, write and launch the campaign.

Boost your campaign with outbound calling. Using a demand-generation marketing platform that utilizes content and reciprocity to create a funnel in conjunction with outbound calling is a way to increase the likelihood of connecting with prospects and obtaining greater conversions.

A good demand-generation software program uses touch points to score leads as they move through the top of the sales funnel from list to leads, qualified leads, and closes. Leads that score over a certain number can be contacted by phone to set up an appointment either virtually or face-to-face. Knowing who to call reduces cold call labor considerably and improves lead quality. Simultaneously, a beacon (which provides on-demand FAQs, chat, and an email contact rolled into one helpful widget) on your website tracks visitors, and banner ads can be used to target them on LinkedIn. Some of the top software provides include HubSpot, Pardot, SharpSpring, Marketo, and Act-On.

During this hard market it’s important to get ahead of renewals well in advance for an opportunity to provide potential clients with options in terms of pricing, coverage terms, and capacity. The combination of a

well-optimized website, consistent content (blogs and social media posts), a demand-generation email effort and telemarketing outreach will help you build your brand and develop a consistent lead flow to gain new customers in this market cycle. 

Larry Neilson is CEO, Neilson Marketing Services, an insurance marketing firm founded in 1988, and provide more than 5,000 professionals with data, outbound, digital, SEO, content, social media and email services.