By: Mallory Cornell, IIAW Vice President

This article was originally published in the May 2022 Wisconsin Independent Agent

Many of you have been participants in my E&O Risk Management courses and have heard me discuss the importance of a Social Media Policy. Perhaps you’ve even requested a sample template from me. Whether it’s a reminder or an introduction, giving employees guidance for how you want them to represent the agency when they’re online is crucial.

What is the purpose of a Social Media Policy?

The primary functions of a Social Media Policy are to: guarantee a constructive relationship between the organization and its employees, manage risk and preserve the agency’s reputation, discourage the use of company time for personal social media activities, and promote awareness among employees of how their personal information can be accessed and interpreted online.

Why do we need one?

It is important to provide guidance on several aspects of utilizing social media. From everything to defining what “social media” includes to how the individual should represent (or not represent) the agency and the agency brand. As an example, the agency would identify topics such as: do not impersonate the agency or its employees, make statements on behalf of the agency without authorization, or make statements that can be construed as establishing the agency’s official position or policy on any particular issue.

How do I get one?

Just ask! Your friends at the IIAW can provide a sample Social Media Policy for you to tailor to your agency needs and implement within your organization. The sample document outlines the basic needs of the agency. It also includes a place for an employee to acknowledge they’ve received and reviewed the Social Media Policy. This document should be a part of every employee’s personnel file and reviewed on an annual basis.

Reach out today for your complimentary copy of an agency Social Media Policy or any other template you may need to create or update.

As technology allows the ability to service large groups of clients more efficiently, many agencies are increasingly expanding their reach beyond the confines of one metropolitan area. In order to better service their customer base, agencies may open additional locations or may acquire existing entities to expand their business. The management of multiple locations creates new challenges and those challenges if not handled correctly may lead to increased opportunities for error.

Controlled growth whether organic or through acquisition can increase efficiencies and reduce cost. However, it is important to manage that growth. Be sure that the “right hand knows what the left hand is doing”. Consistent culture, compliance and communication throughout the agency at all locations, is essential to prevent confusion and potential claims which may otherwise arise from acquisitions and dispersed locations.

Make sure all staff understands your agency culture. Owners, producers, agents, CSR’s and all staff must understand the focus of the business. If the agency’s stated focus is on personal lines, then the agency should not deviate into complex specialized lines. If the agency focus is on certain niches of business, the agency should train their agents and supporting staff on how to service those markets. Often claims begin when the agency attempts to sell insurance products with which it is unfamiliar. Understand your focus. If you are acquiring agencies, acquire those that fit your vision. Then share your vision with all staff at every agency location on a regular basis. Help your team see what the agency is trying to accomplish and how each person can contribute by staying focused on the goals of the entire organization.

When the workload is heavy and clients demand your attention at your primary agency location, it can be difficult to give your attention to the other office locations. But in order to keep those other locations in line with your vision, you must provide them with the attention they need. You should try to visit your other agency locations frequently, at least once a month. Visit each site for a long enough time that the each site does not put on a front for you but actually reveals to you its true method of operation. By allowing each office to become comfortable with your visits, you can build trust and familiarity. The agents and staff at each location must feel close enough to the primary agency to be able to ask questions, share problems and seek feedback.

Establish uniform office procedures and a standard system of compliance. Each province has regulations to protect their own citizens. If you locate a branch office or even a teleworker, in another state, you must research licensing and other business regulations impacting your insurance operation. Failure to comply with regulatory requirements could lead to regulatory investigation, disciplinary action, or even the possible revocation of your license.If adjustments are needed to be made as a result of the regulations do not begin operating your business until you comply with the law.

For example, an agency had a CSR move to another state and began working remotely as a clerical assistant to their Personal Lines Manager. This employee’s job description did not entail discussing or recommending coverage with clients, and the agency believed that her job description was in line with the requirements of the state department of insurance. However the department viewed it differently and fined the agency $7,000 for the employee not having the proper license and viewed the tasks performed by this employee as “effectuating the sale of coverage”. As soon as the agency was notified of the infraction, they made changes to her job description and directed her to acquire the proper license. They then established a Director of Compliance and Compliance Committee to monitor the activities on an ongoing basis.

Standard operating procedures will enhance the efficiency and management of multiple agency locations. Staff can transfer among agencies, without extensive readjustment. The essential procedures should not vary. Each agency should have similar procedures regarding date-identification of communication with clients and carriers. Additionally, documentation of coverage offered and rejected, and maintenance of expiration lists should be standardized.

This excerpt from a letter we received from the attorney retained to defend an insured, reveals the difficulties in offering a defense when procedures are not followed. The litigation arose from damage sustained by a commercial enterprise where the carrier argued that the agency had not provided the necessary information for the carrier to quote coverage, despite several requests. Counsel stated the agency “has no documentation that it sent the proper information and the agent who worked on the account left the agency several years ago on unfavorable terms. The agent’s CSR says the agent was not detail oriented, was not good about providing information, and often made mistakes.” Defense counsel opined that it was highly likely the judge will rule that the agency failed to provide the necessary information. The agency itself had a strong culture of compliance but suffered from one agent who had not followed the standard office procedures established and who, thus, created a significant problem for the agency.

In addition to implementing uniform procedures around the process of file documentation, the agency should also implement uniform procedures for diary and suspense systems. There should be a centralized agency management system and computers in each location should be compatible with one another. In fact, it is likely that computer systems will become a backbone for your organization as offices are spread out geographically. Additionally, it is essential that you ensure adequate security of personal information acquired from your insureds, and that you provide proper privacy training to all employees. The use of encryption and other measures to protect personal data when transmitted is important. If employees use smart phones, verify the phones are password protected.

As part of the establishment of standardized procedures, make sure the staff in each location knows the method to report an errors and omissions situation. Establish and discuss the procedure with all agents and employees. Do so regularly to prevent hesitation in reporting at the time of occurrence. Don’t let problems linger. Delays could create coverage issues with your professional liability carrier.

Communication is a key to successfully running multiple locations. Free and open communication with all staff is very important when you have multiple locations. Neither the culture nor the compliance can happen if you neglect to focus on communication.

Have weekly staff meetings by phone or webinar. Have your office personnel get together at least once or twice a year to enhance communication between people on all levels.

Communicate your vision to all managers in all locations and they in turn must commit to clearly communicating your vision to others in the off-site agencies. Regular audits and evaluations of the manager and the office are critical to making sure your vision is being carried out according to your expectations.

While striving for positive energy in your organization, do not avoid discussing problem situations. Consider learning opportunities which may present themselves from potential claims situations. Educate your employees about the situations which have created problems in one office so other office sites can avoid the same mistake.

Growth is positive when controlled but be sure that the “right hand knows what the left hand is doing”. Consistent culture, compliance and communication throughout the agency at all locations, can be essential to preventing confusion and potential claims which may otherwise arise from acquisitions and dispersed locations.

Annette Hollingsworth has spent over 30 years in the insurance industry. While with ERC /GE Insurance Solutions/Swiss Re, Annette Hollingsworth has served in a variety of capacities ranging from claims to underwriting, legal to regulatory services and global compliance. Annette now serves in the Products unit where she supports the Insurance Agents Professional Liability underwriters in both the US and Canada. She attended Washburn University undergraduate and KU Law School. She has her JD., CPCU, CLU, and ARC designations.

This article is intended to be used for general informational purposes only and is not to be relied upon or used for any particular purpose. Swiss Re shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained or referenced in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, accounting or professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article do not necessarily represent the views of the Swiss Re Group (“Swiss Re”) and/or its subsidiaries and/or management and/or shareholders.

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

This article was originally featured in our July Wisconsin Independent Agent Magazine. Read the full issue here. 

An insurtech firm I prefer not to name, other than to say they think they are geniuses when it comes to policies, was founded by two people who believed purchasing insurance was too frustrating. In fact, their website specifically states, “Navigating the world of insurance is confusing, stressful and a step backward in time....”

Because the founders were “consultants to the top insurance companies,” they knew there had to be a better way for consumers to purchase insurance. Their stated mission is help consumers get the insurance they need and feel good about what they got. Sort of sounds like something an agent does, but that’s not the point of this article. 

Towards this goal, the firm publishes consumer-facing articles. I recently read through several of the articles and felt they were relatively well written for consumer consumption and largely correct. What disappointed me was the “level” of credit they gave the writers; each writer was listed as, “Insurance Expert.” 

The title “insurance expert” caught my eye - in a big way. It stands to reason that obviously these writers have many years of insurance experience since they are “experts” Uh, they didn’t. Here are partial bios as examples: 

• [Author’s name redacted[ is an Insurance Editor at [Insuretech name removed] in New York City and an expert in homeowners insurance. Previously, he was working as a freelance writer for the  New York State Nurses Association and wrote for the Michigan 

Information Research Service. [Writer] has a B.A. in journalism from [University Name Redacted.]

• [Author’s name redacted] is the Associate Director of SEO Content at [Insuretech] in New York City. His writing on insurance and personal finance has appeared on Betterment, Inc, Credit Sesame, and the Council for Disability Awareness. [Writer] has a degree in English from the [University name removed].

• [Author’s name redacted[ is the co-founder of [Website name removed], a groundbreaking personal finance site for millennials that was named one of Time’s 25 Best Blogs of 2012. [Author’s] work has been published in New York Magazine, Glamour, The Guardian, BuzzFeed and more.

Am I missing something? Would the background of ANY of these writers qualify them to be considered an “insurance expert”? I don’t think it does, but the public doesn’t know any better. Calling yourself an expert doesn’t make it so. 

Unfortunately, the combination of missing or incorrect policy information and the misappropriation of the title “insurance expert” pushed me to send a rather 

“snotty” email to this group. As of this writing, I have not received a response. Would you like to see what I wrote? Before you read it, remember, I’ve already 

acknowledged I was a bit pompous. With that as prologue, what follows is a slightly edited version of my email.

I was reading through several of your homeowners’ and personal auto insurance coverage articles today and wanted to get in touch with you.

Yes, insurance can be confusing to those not in the business, but there is a way to explain it so the uninitiated can easily and quickly grasp its concepts and realities.

Secondly, I would be very careful calling anyone an “insurance expert” unless he/she has many years of experience in the insurance business - and is well-versed in insurance coverages and concepts. Writing ABOUT insurance in newspapers and blogs doesn’t make someone an insurance expert; neither does being in the financial and investment business. Property and casualty insurance is far more complicated than can be known just writing about insurance. You have to be “covered in the mud of an insurance policy,” you have to have actually read the policy from cover to cover, several times, and you have to know how deep the depths of insurance really are before you can begin to be considered an expert.

Further, a true expert doesn’t consider himself or herself an expert. In fact, those who truly do qualify as experts quickly shy away from being called experts; the reason, because they are so well versed in insurance, they know there is far more to know than they already do. Any person who calls or truly believes he or she is an expert doesn’t know what he/she doesn’t know.

Someone holding himself or herself out as an “expert” without the credentials to back it up is dishonest and harmful to those depending on the information the so-called “expert” has provided.

So, my recommendations are: correct the incorrect information; and don’t refer to anyone as an insurance expert who doesn’t have the necessary time and training to qualify as one.

Just my personal recommendations to you; take them or leave them as you so desire. 

OK, I realize I let my emotions get the best of me. I also realize nothing I said will change their attitude or actions. And lastly, I know that “insurance expert” is just their way to market their “brilliance.” But it needed to be said. 

But this is what I find truly interesting, they note on their site that the information they provide should not be relied upon; in fact, they intimate that agents are the better source of information. Here is the disclaimer: 

[Insuretech’s name withheld] editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.

I take certain satisfaction in this disclaimer. Evidently, their “insurance experts” are not as valuable as  insurance agents.

Here are some thoughts about being an “expert” of any kind.

• True experts worry more about what they don’t know than what they do know, continually looking for ways to fill their knowledge gap. Self-proclaimed experts ignore the breadth of what they don’t know and are satisfied (mainly because they don’t know what they don’t know). 

• True experts are rarely absolutely certain. Self-proclaimed experts are rarely in doubt.

• True experts admire other experts and desire to learn from them. Self-proclaimed experts don’t see anyone else as an expert, feeling others have nothing to offer. 

• True experts listen to and value the opinions and advice of others. Self-proclaimed experts think theirs is the only opinion that matters. 

• True experts openly admit when they don’t know the answers. Self-proclaimed experts ALWAYS know the answer - even when they don’t.. 

• True experts apply the experience learned from past accomplishments to accomplish more. Self-proclaimed experts rest on past accomplishments. 

• True experts don’t really like being referred to as experts. Self-proclaimed experts revel in such an introduction.

• True experts desire to give all their knowledge away so others can be better. Self-proclaimed experts hold on to their knowledge so others have to come to them. 

• True experts do not proclaim themselves experts - others do. Self-proclaimed experts use the term as a marketing ploy. 

• Be wary of anyone who eagerly takes on the mantle of “expert,” they probably aren’t. If you call yourself an “expert,” you probably aren’t. 

One last thought, if the word “expert” is used anywhere on your website or in your marketing, you better be one because that is the standard/expectation that you have set. Afterall, who do you expect more from, the apprentice of journeyman electrician or the master electrician? The best course of action is to take the term “expert” off all websites and marketing materials.

When you are an expert, you won’t feel like one. If you feel like one, you aren’t one. The more you know, the more you realize you don’t know. And people who don’t know, aren’t experts - at least in their minds. 

By: Swiss RE Corporate Solutions

*This article was featured in our May 2020 Wisconsin Independent Agent Magazine. Click here to read the full May 2020 issue. 

You are all very aware of the events of the last several weeks and the Coronavirus. We are not health experts and there are many others more qualified to give you that advice. We CAN, however, give advice regarding how to reduce the likelihood of an errors and omissions exposure as a result of this event. We have already become aware of some attorneys who are trying to take advantage of this situation for monetary gain against insurance agents. Our advice during this event is no different from what we have said in the past. If your agency has developed good practices, you will be better positioned to avoid problems. Here are the practices of a good insurance agency:

• DON’T MAKE CLAIMS DECISIONS! Let the insurance carriers do that. 

• DON’T ADVISE YOUR CUSTOMERS IF CORONAVIRUS related    items are COVERED OR NOT! Let the insurance carriers do that. 

• If a carrier takes the position that losses arising from the Coronavirus are not, or may not be covered, do not engage in advocacy asserting that “We thought it was covered...” That will simply be used by your client to prove that you knew the client wanted coverage for perils like the Coronavirus, but you failed to procure coverage.

• Report all claims and potential claims to EACH AND EVERY    CARRIER that could potentially have a policy that could apply. This includes CGL, Personal lines, Umbrella, Excess, Workers Compensation, Specialty and any other policy in place for your    customers.

• USE THE RESOURCES PROVIDED BY YOU BY THE IIABA. It is a valuable resource for you, your staff and your agency that provides many sources of information. 

• Be empathetic, but don’t tell anyone that something is covered    or not. You can continue to tell them you feel sympathy for all affected by the Coronavirus, but customers MUST report a claim to their insurance carrier to determine if there is any coverage for the event.

• Remember, if you executed an agency agreement with one or more insurance companies, you MUST report all claims or potential claims as required by that agreement, even if your customer tells you not to do so.

• Maintain vigilant contact with your insurance carriers to determine what action THEY want you to take.

• DOCUMENT DOCUMENT DOCUMENT!!! This continues to be

the foundation of sound E&O risk management. DOCUMENT 

EACH AND EVERY TELEPHONE CONVERSATION, EMAIL, 

TEXT, TWEET, OR ANY OTHER TYPE OF COMMUNICATION 

WITH YOUR CUSTOMERS!

• Assume that any telephone conversations with your customers or carrier claims representatives ARE BEING RECORDED. While some states prohibit recording of telephone conversations without advising that they are doing so, IT DOESN’T STOP SOME PEOPLE FROM DOING SO. 

• If you use social media for your business, make sure it is up to    date! Do not make any promises that something may or may not have been covered by insurance companies and policies. 

• DO NOT GIVE ANY STATEMENTS, RECORDED OR OTHERWISE, WITHOUT FIRST CONTACTING YOUR E&O PROVIDER. The Swiss Re Corporate Solutions/Westport Insurance Company/First Specialty Insurance Company claims staff are available if you have any questions about any communications you receive. 

• If you have a conversation with your customer that leads you to believe that they may be fishing to make a claim against you, DO NOT HESITATE to contact our claims department. 

• DON’T MAKE CLAIMS DECISIONS! DON’T ADVISE YOUR 

CUSTOMERS IF SOMETHING IS COVERED NOR NOT! Let the

insurance carriers do that. We know this was stated before, but it must be ingrained in your mind. 

• If the Coronavirus ends up being declared a “catastrophe” by 

the ISO Property Claims Service, you may be eligible under your Westport policy for “Cat Extra Expense” benefits: “CATASTROPHE EXTRA EXPENSE. We will pay up to $25,000 per catastrophe subject to a per POLICY PERIOD aggregate limit of $50,000 for the actual extra expenses incurred by you as a result of a catastrophe during the POLICY PERIOD beginning on the date of a catastrophe and for thirty (30) days thereafter. The extra expense incurred must be incurred by you only to assist in the insurance claims processing needs of your customer(s) who have been affected by the catastrophe. The catastrophe must be a declared catastrophe by the Property Claims Services. A $500 deductible for each catastrophe shall apply. Limits provided by this paragraph are part of and not in addition to the limits

provided by this POLICY.”

We hope that this will help you as this event progresses. If you should have any questions, please let us know.