Primary Agent - September 2011 - DE Edition

ALSO INTHISISSUE:_________________

Conducting an image audit

Insuring an extremehome builder

DELAWARE

G21383_September2011Covers_September2011Primary 8/16/11 7:35 PM Page 1

TRUST.

For All That Matters

TRUST.

For All That Matters

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HANOVER FIRE & CASUALTY serves the working families of the our region by offering the insurance they need. No games. No tricks. Just good, solid insurance available to those who really need it. Wesettle claims promptly and fairly, and we manage to hold our rates. And the fact is, for nearly 100 years,our customers return and renew with us; well, thatjust drives the point home, doesn’t it?Would you like to be a Hanover agent? For more information call 800-919-FIRE or visit www.hanoverfire.com. Learn more about our portfolio ofproducts, our easy-to-use agent portal, and our com-petitive commission structure. Call today!

The Secret Is Out!Hanover Agents Love To Tell Their Customers Why They Are Happy To Be Associated With Us.

One West First Avenue, Suite 400, Conshohocken , PA ax:

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HANOVER FIRE & CASUALTY serves the working families of the our region by offering the insurance they need. No games. No tricks. Just good, solid insurance available to those who really need it. Wesettle claims promptly and fairly, and we manage to hold our rates. And the fact is, for nearly 100 years,our customers return and renew with us; well, thatjust drives the point home, doesn’t it?

Would you like to be a Hanover agent? For more information call 800-919-FIRE or visit www.hanoverfire.com. Learn more about our portfolio ofproducts, our easy-to-use agent portal, and our com-petitive commission structure. Call today!

The Secret Is Out!Hanover Agents Love To Tell Their Customers

Why They Are Happy To Be Associated With Us.

One West First Avenue, Suite 400, Conshohocken , PA ax:

• Top 5 in Nation for Ease of Doing Business Deep Customer Connections• #1 Performing Company in Pennsylvania Insurance Agents & Brokers of PA• #1 Performing Company in New Hampshire Professional Insurance Agents of NH• Company of the Year in Maine Maine Insurance Agents Association

We’re honored that our Independent Agents have recognized our team’s exceptional customer service and ease of doing business:

hard work and a commitment to excellence.

To learn more about MMG,visit mmgins.com orcall us at 800-343-0533.

• Top 5 in Nation for Ease of Doing Business

Deep Customer Connections

• #1 Performing Company in Pennsylvania

Insurance Agents & Brokers of PA

• #1 Performing Company in New Hampshire

Professional Insurance Agents of NH

• Company of the Year in Maine

Maine Insurance Agents Association

We’re honored that our Independent Agents have recognized our team’s exceptional customer service and ease of doing business:

hard work and a commitment to excellence.

To learn more about MMG,

visit mmgins.com or

call us at 800-343-0533.

G21383_01-11_September2011 8/16/11 7:07 PM Page 1

Are you ready to brand?

Great brands are built on consistently excellent customer experiences, so beforeyou go too far out on the marketing limb, take a long, hard look at your agency’soperations. Your band is your pledge of performance to your customers, prospectsand the world at large. And like all pledges and promises, it is only as good asyour ability to fulfill it—consistently.

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Extreme makeover: insurance edition

When America tunes in to the season premiere of “Extreme Makover: HomeEdition” on September 25, it will have no idea what the builder had to go throughto address numerous exposures. For Anthony Insurance, that will mean the showis a hit.

Page 18

Conducting an image audit

One of the first steps your agency should take when committing to a brandingprogram is the “image audit.” This important effort enables you to truly assesswhere your agency’s image needs work, and how best to communicate thatmessage to your target audience.

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ContentsP R I M A R Y A G E N T M A G A Z I N E

Copyright 2011. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

Subscriptions: Non-member price: $2.25 per copy or $15 per year.

All communications for publications, including news, features, advertising copy, cuts, etc., must reach the editor by 1st of month two monthsprior to publication. Advertising rates furnished upon request.

Address inquiries to:Primary Agent EditorMechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

Periodical postage paid at Mechanicsburg, Pa. and additional entry post office.

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2011-9) is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

3 Glance at Events4 Chair of the Board’s Message5 Member FAQ6 State News8 Preventing Errors & Omissions

10 Coverage Corner15 IA&B Partners24 Advertisers Index24 Classified Ads24 Last & Least

In every issue

Mission StatementPrimary Agent delivers ideas to help InsuranceAgents & Brokers’ members negotiate their uniqueposition as guardians of trust between insuranceconsumers and companies while facing thechallenges of maintaining a small business. PrimaryAgent also supports IA&B’s mission to preserve andadvocate the American Agency System.

Get social with IA&B


Date Topic Location

12 CISR-Personal Residential Course* Mechanicsburg, Pa.

13 CISR-Personal Auto Course* Mechanicsburg, Pa.

CISR-Personal Residential Course Baltimore, Md.

Member Agent Panel Gaithersburg, Md.

14 CISR-Agency Operations Course* Mechanicsburg, Pa.

Member Agent Panel Bowie, Md.

Member Agent Panel Towson, Md.

14-17 CIC-Life & Health Institute Harrisburg, Pa.

15 CISR-Commercial Property Course* Mechanicsburg, Pa.

16 CISR-Commercial Casualty Course* Mechanicsburg, Pa.

19 Member Agent Panel Mechanicsburg, Pa.

19-22 CIC-Personal Lines Institute Lehigh Valley, Pa.

20 Member Agent Panel Altoona, Pa.

20-22 P&C Licensing Study Course Lehigh Valley, Pa.

21 Member Agent Panel Meadville, Pa.

Member Agent Panel Mars, Pa.

22 Member Agent Panel Greensburg, Pa.

27 William T. Hold Seminar Altoona, Pa.

William T. Hold Seminar Wilkes-Barre, Pa.

Member Agent Panel Moosic, Pa.

Member Agent Panel Breinigsville, Pa.

28 CISR-Commercial Casualty Course Pittsburgh, Pa.

CISR-Agency Operations Course Frederick, Md.

Insurance Contractors Pittsburgh, Pa.

Member Agent Panel Horsham, Pa.

Member Agent Panel Frazer, Pa.

29 CISR-Commercial Casualty Course Pittsburgh, Pa.

Member Agent Panel Dover, Del.

Glance at EventsS E P T E M B E R C A L E N D A R

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*Marathon Week


OfficersRobert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Chair of the BoardWest Chester, Pa.

Norman Basso, CPCUVice Chair of the BoardYork, Pa.

David Rosenkilde, CICImmediate Past Chair of the BoardReisterstown, Md.

MembersJoyce M. Bailey, CIC, CRM, CPIW

Newark, Del.

Henry “Butch” Bradley, Jr.Forest Hill, Md.

Timothy P. BurrisThompsontown, Pa.

N. Lee Dotson, CIC, AAIWilmington, Del.

John L. FrankenfieldTelford, Pa.

G. Greg Gunn, CICLemoyne, Pa.

Diana M. Hornung Hanby, ACSRWilmington, Del.

Jocelyn R. Howard-Sinopoli, CIC, CISRButler, Pa.

Robert S. Klinger, LUTCF, CPIAGermantown, Md.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Ann Gallen Moll, CICReading, Pa.

Scott C. Rogers, CPIA*York, Pa.

David B. Wasson Sr., CICState College, Pa.

* IIABA National Director

Board of Directors

Brand new

As the new chair of IA&B Service Group, I am fortunate tocome into this position at a time of great interest in newopportunities for our organizations and their members. Theleadership team has listened to member concerns andresponded with an agenda that will strengthen ourassociations and position member agencies to succeed in acompetitive marketplace.

High on the agenda is helping our members to market theiragencies by giving them tools and strategic knowledge tobrand themselves as the preferred choice for purchasinginsurance. This will be particularly challenging in a marketwhere coverage (at least for personal lines) has becomesomewhat commoditized. And, as you’ll read in this issue,the first step in effective branding is objective introspectionthat will help determine whether the agency is ready to makea brand promise it can keep.

I’m embracing my new leadership role as an opportunity toshape the way we help members tackle the many challengeswe face. I am particularly confident that — with member buy-in — IA&B can help to enhance the brand of independentagents and provide tools and knowledge that will assist us inpositioning ourselves as knowledgeable and trustedadvocates for the individuals, families and businesses weserve. Now let’s get started!

Bob

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Robert B. Hall, CPCU, CLU, ChFC, ARM, ARM-P

Chair of the Board’sM E S S A G E


ANSWER:It is important to use a non-disclosure/confidentialityagreement as part of your due diligence process. Theagreement will prohibit the potential buyer from using ordisclosing any of the information received as part of the salediscussion and negotiation, should the transaction fallthrough. These non-disclosure agreements come in manyshapes and sizes. IA&B can provide you with a sample toreview with your attorney or consultant and adapt as needed.

In addition to the confidentiality agreement, your duediligence process should also map out the various stages ofthe transaction, so that each party knows what it isresponsible for and what to expect.

Finally, IA&B recommends using the services of a reputableagency valuation consultant. Commission multipliers are“static,” and do not differentiate between agencies, treatingthem all equally when, in fact, they are not. Whether you’rebuying or selling, the consultant will be able to price youragency adequately, in a way that accounts for its profitability.A consultant will account for a number of factors which add,or reduce value. In addition, whichever side of the transactionyou are on, using a consultant will add credibility to youroffer. Do not assume that the agency is too small or that theconsultant fees will be too high. Call and ask what they will do and how much they will charge.

To access a sample non-disclosure agreement or a list ofconsultants, visit www.iabgroup.com (go to AgencyPerpetuation) or call 800-998-9644, and select option 0.

DO YOU HAVE A QUESTION? E-mail it to us at [email protected]. Please use “PrimaryAgent FAQ” in the subject line of your message. You can alsofax your question to (717) 795-8347. We look forward toanswering your questions!

QUESTION: I’m considering selling my agency and am about to begin discussionswith another agency. Is there a non-disclosurestatement that I could use?

3 1/18/11 11:29:18 AM

Member FAQ


State NewsTrusted Choice®resources nowavailable

As of September 1,most DAIABmembers becameTrusted Choice®agents, and nowhave full access tothe resourcesavailable for

leveraging the national Trusted Choice®brand within their local marketinginitiatives. But as you’ll read in the articles“Are you ready to brand?” and“Conducting an image audit” (reprintedwith permission from Trusted Choice®),there may be some internal workflowissues and personnel pitfalls you’ll want toaddress before engaging in a full-blownbranding campaign. You’ll want to becertain you are ready to fulfill the Trusted Choice® pledge of performance(i.e. brand promise) prior to launchingpromotional initiatives using the national brand.

DAIAB is committed to helping membersgain value from Trusted Choice® and has a Web page dedicated to answeringyour questions and directing you to thevarious resources that are now availablefor your use.

Visit iabgroup.com/trustedchoice.

AgentPACcontribution update

AgentPAC of Delaware, your voice forpolitical action in Dover, received severalcontributions from engaged agents overthe summer. The fundraising campaign tosupport agent-friendly legislators andcandidates is now less than $1,000 fromits annual goal. Independent agencyprincipals, producers and staff are urgedto help put this campaign over the top bygiving to AgentPAC. With many voicescompeting for attention in Dover,contributions to AgentPAC assure thatyour interests are heard loud and clear.

A special “thank you” to our 2011President’s Club ($1,000+) member Lee Dotson (Bellevue, InsuranceServices LLC, Wilmington) and

Governor’s Club ($500-$999) membersAndrew Cousins (L & W Insurance Inc.,Dover) and Scott Yerkes (Kinnamon

Taylor & Dawes, Wilmington).

Read more and contribute online atiabgroup.com/AgentPAC.

[ 6 ]

Primary Agent | September 2011

G21383_06-07DEStateNews_Sept2011 8/16/11 7:27 PM Page 2

EMC roomdiscounts end Sept. 9

DAIAB’s annual Executive ManagementConference (EMC) will return to theLancaster Eden Resort, Oct. 4-5.Reservations for overnightaccommodations must be made by Sept. 9 to receive the discounted roomrate. This year’s topic is “ProducerManagement: Finding, Training andRetaining the Best Agents” (see sidebar,page 13), and the event is expected to sell out.

Read more and register atiabgroup.com/EMC2011.

Members to talkindustry issuesDAIAB will monitor members’ needs atthe upcoming Member Agent Panel (MAP)this month. MAP participants will talkindustry issues and trends, share strugglesand accomplishments, and chart thecourse of the association. Members of thepanel meet with DAIAB leadership andstaff and give input on decisions impactingmember services.

The MAP is one way that DAIAB gathersinput from its membership. Thisinformation goes directly to DAIAB’sleadership and is used to make the bestpossible decisions affecting programs,products and services offered to allmembers. In addition participants comeaway from each MAP session withvaluable insights and information that canbe applied to their own business.

DAIAB members – most often agencyprincipals and producers – serve two-yearterms for a total of four meetings. Themeeting will occur at Dover Downs onSeptember 29.

For more information on MAPs, visitwww.iabgroup.com.

[ 7 ]

New MembersW E L C O M E

IFS Benefits LLCWilmington, Del.

G21383_06-07DEStateNews_Sept2011 8/16/11 7:27 PM Page 3

[ 8 ]

PAUL E. WALTERS

Paul E. Walters is claims

manager for the Errors &

Omissions Department of

Utica Mutual Insurance Co.


When an agent commits anerror, it would be natural toassume that any resultingdamages from that error are the agent’s responsibility.In the case where a customeris harmed because of agenterror, the agency would want to ensure the customeris taken care of. While thetendency would be to tell the client the agency is atfault and the claim will beaddressed, this approach and admission can impair the ability of your Errors &Omissions carrier to settlethe claim at the best possible terms. Plus, it could – depending on what is promised to a customer – jeopardize your E&Ocoverage.

A duty to readAn E&O policy is a liabilitypolicy. It is not a first-partycoverage. Like all liabilitypolicies, the E&O policyprovides for payment of aclaim when an insured isdetermined to be liable. Astandard condition in an E&Opolicy mirrors other liability

policies regarding obligationsassumed by an insuredwithout the carrier’s consent.

It’s one thing to say, “I goofed up.” Yet it isanother to say, “I goofed upand will pay you.” Be awareof the distinction. In fact,before uttering the words “I goofed up” to your client,first speak with your E&Oclaims specialist.

There are many defensesavailable to agents — evenwhen an agent may believehis or her E&O carrier owesthe claim. Most states requirean insured to read the policy.If there is a change incoverage on renewal, or apolicy simply does not containthe agreed upon coveragegrants, an agent may believehe or she is at fault becausethe change was missed.Depending on how long thepolicy was in front of thecustomer, though, the blamemight be shared if thecustomer also missed thechange. Many claims aresettled on a compromise basisbecause of a duty to read.

Shades of grayCarriers could be liable, too.Was the policy different thanthe quote? Was there aconditional renewal noticethat points out a change incoverage? Is there anotheragent upstream to blame?

Regarding carriers, evenwhen an agent causes apolicy to be issued that wasnot at the agreed uponterms, the legal theories ofpolicy reformation and theagency/principal relationshipcan force a carrier to pay aloss for which it had earlierdisclaimed coverage.

Generally speaking, if anagent has binding authorityfor a particular risk oramount of coverage, carriers are forced to reform the policy if the agent and the client hadearlier agreed upon certainterms of coverage and thepolicy issued did not containthose terms.

Under laws governing theagency/principal (carrier)relationship, an agent’s

BE CAREFUL IN ADMITTING LIABILITY

PreventingE R R O R S A N D O M I S S I O N S


[ 9 ]

representations can bind a carrier,even if the agent did not have binding authority. The question thenbecomes, “What is the agent liable tothe carrier for?” In many instances, if the carrier would have written therisk at the terms agreed uponbetween an agent and a customer, the agent is only responsible for thedifference in premium.

Of course, each case is different.There are shades of gray as to whoowes what. Many parties may share in the blame: agents, carriers andinsureds. Take, for instance, a clientwho had a policy with 50 percent co-insurance. The agent switchedcarriers and asked for a policy with 50 percent co-insurance. The policywas issued with 100 percent co-insurance. This was missed byagent and the customer. A lossoccurred, with the co-insurancepenalty assessed by the carrier totalingabout $1,000,000. A lawsuit ensued.

Communication to the carrier clearlyreflected a request for 50 percent co-insurance. It was equally clear theintent of the agent and client was tohave 50 percent co-insurance. Afterseveral rounds of negotiating, the casewas settled for $700,000. The agent’sshare was $104,000.

Work with your E&O carrierAn agent’s job can be stressful, andthe need to take care of customerswho have been wronged is crucial.However, that need must betempered with the need for your E&O carrier to only pay what is owed.The entire claims process cansometimes appear to be daunting and confusing. Work with your E&O carrier to achieve an amicableresolution for all parties concerned.


CoverageC O R N E R

[ 10 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.


The National Flood InsuranceProgram (NFIP), which is apublicly funded program, isnearly $18 billion in debt.Orice Williams Brown, amanaging director of theGovernment AccountabilityOffice (GAO), has testifiedbefore Congress that theprogram may have to borrowmoney just to make itsinterest payments. Obviously,the apparent solution issignificant rate hikes. Somemembers of Congress havesuggested these increasescould be in excess of 25percent, and maybe as highas 50 percent.

However, two senators havebecome outspoken advocatesfor reform of the NFIP. Theyare Sen. Richard Shelby ofAlabama and Sen. RogerWicker of Mississippi.

Sen. Shelby is one of thesponsors of the FloodInsurance Reform Act whichcalls for every aspect of theprogram to be revised. Thekinds of revision he’s talkingabout may mean that NFIP’scurrent authorization expires

on September 30 before thechanges are actually in place.

According to Sen. Shelby, “Ifthat’s what has to happen forthe NFIP to becomeactuarially sound, so be it.Ignoring the program’sfinancial woes isn’t going tohelp anyone – neither thetaxpayers who fund it nor thehomeowners who live inhigh-risk areas. Why shouldthe American taxpayerssubsidize these policies forpeople who — a lot of them— have second, third homes, knowing they’re in a risk area.”

I agree with Sen. Shelby tosome extent. However, Ihope he has not overlookedthe fact that many of us haveour primary, and only, homein high-risk areas. Theseflood-prone areas are notlimited to the coast.Remember all the terribleflooding that occurred alongthe Mississippi, Missouri andSouris rivers earlier this year?

The Flood Insurance ReformAct allows the private marketto get more involved —

primarily throughreinsurance, provides formore transparency for theWrite-Your-Own program(suggested by the GAO), anda thorough examination ofthe properties insured underthe NFIP.

Sen. Wicker has introducedthe Consumer Option for an Alternative System toAllocate Losses (COASTAL)Act. This act addresses the“wind versus water” debatebetween private insurers and the NFIP that are usually associated withhurricane claims.

Rather than allowing privateinsurers to decide how muchdamage to allocate to windand how much to water, Sen. Wicker’s plan wouldcreate a standard formula tomake that determination.The COASTAL Act wouldapply only to propertiescompletely destroyed by astorm, with nothing left butthe foundation slab.

The formula would be basedon data collected at theNational Oceanic and

NFIP AND THE COASTAL ACT


[ 11 ]

Atmospheric Administration (NOAA),plus academic institutions and privateinstitutions. The formula would takeinto account the timing, location andmagnitude of wind speeds before,during, and after a coastal storm. Anyappeals would be handled by anindependent arbitration panel.

Sen. Wicker’s plan has received thesupport of other members of Congressas well as some state insurancecommissioners. However, noteveryone is a fan. The NationalAssociation of Mutual InsuranceCompanies issued a written statementthat stated in part, “Notwithstanding itslaudable intent, we fear that this plancould cause more confusion forinsurers and consumers in theaftermath of a major natural disaster.

The American Insurance Associationwarned of unintended consequencesfrom the inclusion of a windcalculation “This is a significantdeparture from long-standing NFIPand wind claims adjusting and howthey are governed by federal and statelaw, respectively. As with any new ideathat could impact a large, importantprogram, AIA believes this allocationproposal needs proper considerationand study,” the association said inwritten testimony.

Additionally, Travis Plunkett, legislativedirector of the Consumer Federation of America, said, “Charging FEMA,which has had trouble managingsimpler aspects of the program, withcreating this formula, and doing it rightand doing it fair, is too much for themto handle.”

Will the COASTAL Act gain enoughtraction in Congress to be enacted into law? If so, what will be theconsequences? All I can say is, “Stay tuned.”

Y’all take care!

Why our contracting coverages are built better than the rest:

We offer protection others don’t.

We’ve custom-built special liability coverages that meet the unique

needs of the contracting industry.� Blanket Additional Insured for Written Contract coverage� Blanket Waiver of Subrogation protection� Consolidated Insurance (Wrap-up) Program — limited exclusion� Electronic Data — $10,000 each occurrence/$10,000 aggregate� Limited Pollution Liability expanded limits up to

$1 million each occurrence with legal costs included� Voluntary Property Damage —

$5,000 limit per occurrence/$10,000 aggregate � Limited mold and bacteria coverage with limits of $10,000 and

$25,000 available. Legal expenses are included, subject to limits. (Not available in NJ)

Automatic endorsement protects against damage to your work.We clarified the policy to state that property damage to a contractor’s work performed on a contractor’s behalf by subcontractors, within the products-completed operation hazard, is an occurrence. Subject to all other general liability terms and conditions.This summary does not constitute a part of the insurance policy. See policy for complete terms and conditions.

Visit us at www.PennNationalInsurance.com to find out how you can become an agent with big opportunities for growth.

IA&B FLOOD CE at your office,home, hotel, etc.What: Understanding the National Flood Insurance ProgramWho: National flood expert Rita Hollada, CPCU, CIC, CPIAWhen: AnytimeWhere: Anywhere there’s Web accessWhy: Most agents need itCE: Del.: 3 GEN/FLD Md.: 3 PC/FL Pa.: 3 FLDURL: iabgroup.com/on-demand


MARKETING

Your pledge ofperformance to yourcustomers, prospects and the world at large isyour brand promise. And like all pledges andpromises, it is only as good as your ability tofulfill it —consistently.

Is Your Agency Readyto Brand?


[ 13 ]


Many an agency has its sights set on branding, orre-branding, its business only to discover that theagency staff, workflows and technology are notup to the challenge. After spending thousands on

marketing, the owner(s) discover that the agencyinfrastructure isn’t able to handle the promises being madeby their own ads. The result? A situation worse than if theyhadn’t done anything at all: actively sought, yet disappointed,“coulda-woulda-shoulda-been” customers.

___________________________________________________________

Before you go too far out on the marketing limb,take a long, hard look at your agency’s operations.___________________________________________________________

Great brands are built on consistently excellent customerexperiences, so before you go too far out on the marketinglimb, take a long, hard look at your agency’s operations:

� Do your workflows enable staff to deliver exemplarycustomer service, or are they simply the way you’vealways done things?

� Is your technology current, functional and being usedappropriately, or is your team having to work aroundsub-par systems?

� Are your employees fully committed to your agency’sbrand promise, and are they the right people to fulfill it?

Independent agent Andy Shifflett asked a single, toughquestion of each employee when he took over his father’sfirm several years ago: “If you didn’t do what you are doingnow, would it matter? If it didn’t matter, we quit doing it,” hesays. The agency is now paperless, with hands-free headsets,desktop scanners and faxes, and a high-speed Internetconnection for everyone. And his revenue-per-employeenumber tops $130,000.

___________________________________________________________

Start by talking with your staff about branding —what it means, why it’s important, and

what steps they will be taking in the coming weeks and months.

___________________________________________________________

To get your own house in order, start by talking with yourstaff about branding—what it means, why it’s important, andwhat steps they will be taking in the coming weeks andmonths. This will give them ownership in the process,

M Are your producersBULLDOGS or

LAPDOGS?

The best agents are both “bulldogs”(assertively chasing down leads) and“lapdogs” (able to cozy up to clients andbe their best friend). Whatever “breed”you need, your agents should be trainedto embody your brand. They should alsobe strategically rewarded (“thrown abone” if you will) for consistently fulfillingyour brand promise and helping to buildyour business.

IA&B’s 2011 Executive ManagementConference (EMC 2011), scheduled forOctober 4-5 at the Lancaster EdenResort, will focus on the science ofproducer management and the art ofinspiring agents to build lasting clientrelationships. “Producer Management—Finding, Training and Retaining the BestAgents,” will provide recruiting resources,training techniques, motivational methodsand retention strategies for hiring andinspiring producers.

EMC 2011 will feature nationallyrecognized agency consultants Al Diamondand Lorie Guthrie Phair who will helpprincipals to unleash their producers’potential — regardless of their “breed.”

Read more and register atiabgroup.com/EMC2011.


assuage their anxieties, anddiscourage grumbling.

To ensure you are looking atevery brand touch-point, haveyour staff list each product andservice your agency offers, fromcomplete risk management oflarge commercial clients toanswering the phone. Thendetermine which activities havea positive impact on yourcustomer (and therefore on yourbrand), which activities could bepositive if modified, and whichactivities fall into the “Why theheck do we do that again?”category. Drop the stupid stuffright away.

_________________________________

Employees are the heartand soul of any brand, and you cannot retainjust-average peopleif you expect above-average success.

_________________________________

Then ask your staff to look at allremaining workflows and re-toolthose they deem inefficient (theirheads are probably already filledwith lists of things they would dodifferently if they owned theplace). Try to achieve a one-touch system, whereby everycustomer or internal activity istouched by one employee, onetime. It’s the back-and-forth,round-and-round nonsense thatnobody thinks about that createshobgoblins of inefficiency. Askthem to think in ideal terms:What would be the very best wayto get this transaction done?

Once you have streamlined yourworkflows, determine whetheryour technology is in sync withthose processes. Do you need toupgrade your agencymanagement system or createmore functionality on your Website? Does your phone systemallow for the new process ofdirecting calls and voicemails?Should you take it to the nextlevel and invest in a system thatbrings up customer informationon the CSR’s screen based on thecaller ID?

A more difficult—but oh-so-necessary—part of yourinfrastructure evaluation focuseson your staff. Employees are theheart and soul of any brand, andyou cannot retain just-averagepeople if you expect above-average success. Does yourcurrent staff have the specificskill sets to succeed in this newworkplace? If you don’t think youcan be objective (especiallywhen it comes to long-termemployees), use a personalityprofiling system to help youdetermine if they have thedisposition to handle theirresponsibilities in the newenvironment. Determine whocan be re-trained and whocannot. Be clear and direct indiscussing with your team whatyou expect of them.

Mike Carroll put his small agencyunder the microscope severalyears ago, and found he couldreduce his staff to three people ifhe streamlined activities andinstituted more efficiency inworkflows. “We make moremoney now than when we had

11 employees. Revenues aredown, but profit is up. You dothe math.” Carroll is projecting25 percent growth this year.

_________________________________

Determine if your agency is doing its part to attract

and retain the very best employees.

_________________________________

Finally, determine if your agencyis doing its part to attract andretain the very best employees.Is your pay scale commensuratewith the marketplace, or could itbe better? Does your benefitspackage make employees feelloved or simply covered? Doesyour agency encourage ongoingtraining and professionaldevelopment? An agency inCalifornia offers profit-sharing toits entire workforce and isconsidered an excellentworkplace. The result? Theaverage staffer has been there 14years, and “I have the bestemployees in the world,” saysthe owner.

Remember: They aren’t justworkers; they are your brand.Are they ready to live it?

MARKETING

[ 14 ]


WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

DO YOU SEEYOUR NAME?To become an IA&B Partner,

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at (800) 998-9644,

(717) 795-9100 or visit us

online at www.iabgroup.com

to get started.

Listed below are those companies that strongly support the independent agencysystem and Insurance Agents & Brokers.

Thank you for your continued sponsorship.

PLATINUM LEVELACUITYBerkley Mid-Atlantic GroupDonegal Insurance GroupErie Insurance GroupHarleysville InsuranceHighmark Casualty Insurance CoInsurance Agents & BrokersService Group Inc

MMG Insurance CompanyMillers Mutual GroupMillville Mutual Insurance CoMutual Benefit GroupOhio CasualtyPenn National InsuranceSelective Swiss ReThe Main Street America GroupUtica National Insurance Group

GOLD LEVELProgressive

SILVER LEVELAccess Insurance Company Allied InsuranceAmerican Mining Insurance CoCumberland Insurance GroupFrederick Mutual Insurance CoJuniata Mutual Insurance CoPSBA Insurance TrustThe Philadelphia ContributionshipWestfield Insurance

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent September 2011


HMWorkers’Compensation offers asmart approach to

coverage – helping to control lossthrough dedicated service teams; apreferred, cost-saving network; andeffective physician-to-physician casemanagement. To ensure the bestoutcome for all involved, we workside-by-side with our clients, helpingto reduce the incidence of injuries inthe workplace and return employeesto their jobs as quickly as possible.

We know that effectively managingWorkers’ Compensation coverage isessential to our clients’ financialsuccess. Using our expertise to controland reduce Workers’ Compensationcosts from all angles, we develop andimplement customized, effectiveprograms that incorporate losscontrol, case management, networkdiscounts, proactive risk managementtechniques and return-to-workprograms. We manage the entire

process to help keep employees safeand healthy, while generating costsavings that our clients depend on tohelp keep their companies financiallystrong. The outcome is clear in ouroperational performance results andour approach to service.

Through our network savingsprogram, total claims costs werereduced by 55 percent in 2010, andwe passed that savings on to ourclients. We also achieved greater than99 percent technical and financialaccuracy when processing both losttime and medical claims.* Suchaccomplishments, along with ourcommitment to service excellence,have helped us earn high levels ofclient satisfaction.

HM Workers’ Compensation coverageis marketed in Pennsylvania, and wetarget low-to-medium hazardindustries with four wall exposure,including health care, social services,

administrative offices, banks,physicians, service industries, propertymanagement, machine shops,restaurants, retail/wholesale storesand manufacturing. Our loss costmultiplier ranges offer flexibility thathelps price each account on its ownmerits. HM Workers’ Compensation isunderwritten by either HighmarkCasualty Insurance Company or HM Casualty Insurance Company,member companies of HM InsuranceGroup. Both Highmark CasualtyInsurance Company and HM CasualtyInsurance Company are rated A- (Excellent) VIII by A.M. BestCompany.

*HM Insurance Group internal reporting, 2010

Insurance Agents & Brokersproudly recognizes HighmarkCasualty Insurance Company asone of its Platinum Partners.

IA&B Platinum Partners dedicate the highest level of sponsorship

to our organization.

FEATURED PARTNERHighmark Casualty Insurance Company

PRESIDENTMike Sullivan

President & Chief Operating Officer

COMPANY LOCATIONHome Office – Pittsburgh, with regionallocations in Camp Hill and Philadelphia

A.M. BEST RATINGA- (Excellent) VIII

WEBSITEwww.highmarkcasualty.com

Platinum Profile

Mike Sullivan

STOP LOSS | WORKERS’ COMPENSATION | CRITICAL ILLNESS | ACCIDENT | DISABILITY INCOME | TERM LIFE | LIMITED BENEFIT MEDICALH

STOP LOSS | WORKERS’ COMPENSATION | CRITICAL ILLNESS | ACCIDENT | DISABILITY INCOME | TERM LIFE | LIMITED BENEFIT MEDICAL

H


Workers’ compensation solutions for both loss control and claims control.(That’s using our head.)Reduce risk. Increase ROI. Keeping your clients’ employees healthy and on the jobtakes a lot of hard work. You need an experienced partner with a smart approach tocontrol and reduce workers’ compensation costs. With HM Workers’ Compensation,you get a dedicated, experienced service team focused on account management,loss control, aggressive claims management and return-to-work programs customizedto each client’s needs. We help you take better care of clients by identifying moreeffective ways to control and reduce workplace injuries. We also offer a uniquephysician-to-physician service that helps get people back to work faster – andhealthier. For more smart ideas, call 1-800-328-5433 or visit smarteranswersfaster.com.HM PRODUCT PORTFOLIO: STOP LOSS | WORKERS’ COMPENSATION | CRITICAL ILLNESS | ACCIDENT | DISABILITY INCOME | TERM LIFE | LIMITED BENEFIT MEDICALHM Workers' Compensation* 55%90%client retention99%technical & financialaccuracy in claims processingoverreduction in total claims cost

*Performance statistics based on Highmark Workers’ Compensation Operational Performance – 2010 Report, April 2011. Coverage is underwritten by Highmark Casualty Insurance Company, Pittsburgh, PA, or HM Casualty Insurance Company, Pittsburgh, PA. Highmark Casualty InsuranceCompany may provide certain administrative and customer support services. The coverage or service requested may not be available in all states.MTG-2197 7/11

Workers’ compensation solutions for both loss control and claims control.

(That’s using our head.)Reduce risk. Increase ROI. Keeping your clients’ employees healthy and on the job

takes a lot of hard work. You need an experienced partner with a smart approach to

control and reduce workers’ compensation costs. With HM Workers’ Compensation,

you get a dedicated, experienced service team focused on account management,

loss control, aggressive claims management and return-to-work programs customized

to each client’s needs. We help you take better care of clients by identifying more

effective ways to control and reduce workplace injuries. We also offer a unique

physician-to-physician service that helps get people back to work faster – and

healthier. For more smart ideas, call 1-800-328-5433 or visit smarteranswersfaster.com.

HM PRODUCT PORTFOLIO: STOP LOSS | WORKERS’ COMPENSATION | CRITICAL ILLNESS | ACCIDENT | DISABILITY INCOME | TERM LIFE | LIMITED BENEFIT MEDICAL

HM W

orkers' C

ompensation*

55%

90%

client retention99%

technical & financialaccuracy in claims processing

over

reduction in total claims cost

*Performance statistics based on Highmark Workers’ Compensation Operational Performance – 2010 Report, April 2011.

Coverage is underwritten by Highmark Casualty Insurance Company, Pittsburgh, PA, or HM Casualty Insurance Company, Pittsburgh, PA. Highmark Casualty InsuranceCompany may provide certain administrative and customer support services. The coverage or service requested may not be available in all states.

MTG-2197 7/11


COVERAGE

When America tunes in tothe season premiere of“Extreme Makover: HomeEdition” on September 25, itwill have no idea what thebuilder had to go through toaddress numerousexposures. For AnthonyInsurance, that will meanthe show is a hit.

Member agency insures builder for high-profile renovation

Kent Anthony, owner of Ant

hony

Insurance, Inc. served his cl

ient with

sound insurance advice and

his

community with volunteer suppor

t

for an "Extreme Makeover."

Anthony stands in front of the finished house. Theinterior will be revealed on ABC's season premiere of"Extreme Makeover: Home Edition" on September 25.


[ 19 ]


When Ty Pennington led the march to the end ofan obscure cul-de-sac in York County,Pennsylvania to give his “Good Morning….!”wakeup call, nobody thought twice aboutwhether the builder was properly insured.

But if you figuratively rewind the tape several weeks, youwould see a contractor frantically preparing for a job unlikeany other while his independent insurance agent busilyworks behind the scenes to make sure his client is protected.

ABC-TV’s hit series “Extreme Makeover: Home Edition” willkick off its ninth season with the heart-warming story of theKeefer family, which was struggling to meet the needs of ason paralyzed from the neck down in a gymnastics accident.After choosing the Keefer home for a makeover, the show’sproducers quickly identified a local builder, Musser HomeBuilders, as a potential contractor for the job. The productioncompany was also quick in its demands to be indemnified forthe job.

Musser owner Jeff Musser, who had done smaller“makeovers” for other deserving families in centralPennsylvania, wanted the job. But with unique coverageconcerns, he turned to his long-time insurance agent KentAnthony, owner of Anthony Insurance, in nearby Lewisberry.“The whole issue was: rush, rush, rush,” remembersAnthony, a long-standing member of IA&B. “So it’s not only‘Can you do it?’, but ‘Can you make it happen quickly?’

“Jeff said, ‘Just make it happen,’ and he knew it would. That’sall part of a relationship — knowing each other andanticipating the needs,” notes Anthony. But he’s quick to addthat some of the needs for this project could not beanticipated and were, in fact, extreme.

“Getting into the project, I had to determine exactly who wasresponsible for what,” notes Anthony, “I had to work with anattorney to set up insurance provisions and rework thoseprovisions. I was actually working with two differentinsurance brokers out of California who represented theproduction company and another company associated with it. Neither was fully aware of what we had before us and we had about two hours to figure it out.”

As part of his research, Anthony contacted IA&B to findlanguage he could use in volunteer release forms to limit his client’s liability when working with 4,000 or sovolunteers. IA&B Industry Affairs Director Claire Pantaloni,CIC, CISR was able to help. “I researched the topic andfound various examples from similar charitableconstruction projects (e.g. Habitat for Humanity),” sherecalls. “I sent these examples to Kent for considerationby his attorney and to amend as necessary.”

W

Thousands of volunteers showed up to helpthroughout the week of the build in June.

Readers can see how MusserHome Builders and the legionsof volunteers coordinated byKent Anthony and otherstransformed the Keefer homewhen “Extreme Makeover:Home Edition” airs on ABC at 7 p.m. on Sunday,September 25.


Anthony adds that this was crucialinformation he needed during thischallenging period. “It was not justplacing insurance like a lot of peoplewould like to believe it is. It’s riskmanagement for all phases of theoperation, including a tremendousinvolvement with volunteers.

“To work on a project like this as anindependent agent sounds thrilling whenyou think of stars like Ty Pennington,Jillian Harris and all these fantasticpeople,” says Anthony. “But then all-of-a-sudden you have a two-hour timeframe,working with an attorney and trying toget answers e-mailed back and forthfrom California. Making it happen wasvery unique and very challenging andfrustrating at times.”

In addition to helping Musser HomeBuilders with its unique insuranceneeds, Anthony volunteered his freetime during several evenings of thebuild, which took place in late June.Anthony served as a volunteercoordinator, directing hundreds ofvolunteers to wherever they wereneeded on the job site. “Getting peoplein and out among all the peoplescurrying around was kind of neat.”

Anthony’s son attended the same highschool as Brian Keefer, the paralyzedathlete whose independence is greatlyimproved thanks to the extrememakeover. “It was really kind of neatbecause we were able to do somethingto give back to the community as wellas help a good family.”

To read more about AnthonyInsurance, visitanthonyinsuranceinc.com.

______________________________________

Brent Heard is marketing communicationsdirector for IA&B.

COVERAGE

[ 20 ]

Driving members to distinction.

The best agents are both bulldogs (assertively chasingdown leads) ANDlapdogs (able tobe their clients’best friend).

PRODUCER MANAGEMENT

Finding, Training & Retaining the��

2 0 1 1 E X E C U T I V E

MANAGEMENTCONFERENCEOCTOBER 4-5, 2011LANCASTER EDEN RESORT

Read more and register at iabgroup.com/EMC2011.

EMC 2011 will provide recruiting resources, trainingtechniques, motivational methods and retention strategies for hiring and inspiring producers. Youcount on your agents to build your business, and you can count on nationallyecognized agency consultants Al Diamond and Lorie Guthrie Phair to help you unleash yourproducers’ potential—regardless of their “breed.”


The Main Street America Group’sNortheast Region is comprised of four states – New York, the

carrier’s largest premium state, as well as Pennsylvania, Maryland and Delaware.

Main Street America’s rich historybegan in 1923 when we formed ourcompany to serve the insurance needsof Grange fraternity members. Today,Main Street America provides a fullline of competitively priced personallines and commercial lines productsand services, as well as fidelity andsurety bond products, to individuals,families and small businesses in 27 states. We annually write nearly$900 million in premium.

Through our seven “A” rated propertyand casualty carriers – NGMInsurance Company, Old DominionInsurance Company, Main StreetAmerica Assurance Company, MSAInsurance Company, Main StreetAmerica Protection InsuranceCompany and Great Lakes CasualtyInsurance Company, as well as ourGrain Dealers Mutual InsuranceCompany affiliate – we partner withmore than 2,000 independent agentsto provide superior, personal serviceto more than 600,000 policyholders.

As the founding company partner ofTrusted Choice®, Main Street Americais 100 percent committed to theindependent insurance agent, as youare our sole channel of distribution.We strive to meet the needs of our

customers (agents), and ourcustomers’ customers (policyholders),better than anyone else in the market.To become our customer andrepresent Main Street America, pleasevisit www.msagroup.com and click onthe “Become a Main Street AmericaAgent” link.

** A.M. Best’s rating of “A” (“Excellent”) applies to TheMain Street America Group. Ratings listed herein areas of June 30, 2011, are used with permission of A.M.Best, and are subject to changes by the rating service.For more information about ratings, please accesswww.ambest.com.

Insurance Agents & Brokersproudly recognizes The Main

Street America Group as one ofits Platinum Partners. IA&BPlatinum Partners dedicate

the highest level of sponsorshipto our organization.

FEATURED PARTNERThe Main Street America Group

CORPORATE HEADQUARTERSJacksonville, Fla.

CHIEF EXECUTIVE OFFICERTom Van Berkel, Chairman

President and CEO

Northeast Region HeadquartersSyracuse, N.Y.

Northeast Region PresidentMark Berger

Northeast Region Sales DirectorJohn Hwilka

Northeast Region MarketsNew York, Pennsylvania,

Maryland, Delaware

A.M. BEST RATING“A” (Excellent)**

Platinum Profile

Mark BergerNortheast Region President


[ 22 ]

MARKETING

One of the first stepsyour agency shouldtake when committing

to a branding program is the“image audit.” This importanteffort enables you to trulyassess where your agency’simage needs work, and howbest to communicate thatmessage to your targetaudience. So, before you startspending big bucks on a localad campaign, take some timeto establish solid brandinggroundwork for your agency.

The image audit actuallyinvolves three activities:

� Comprehensive analysisof your agency’s currentreputation,

� Detailed review of all“image bearers”—anything that the publicwill identify with yourfirm, and

� Comparison of yourstatus quo image to yourcompetition and to youragency’s branding goals.

FeedbackLet’s start with a look at youragency’s reputation in themarketplace. Don’t assumethat you know how your

agency is perceived. As theprincipal, you’re a little biased,and you probably aren’t takingmost of the day-to-daycustomer service calls. So,ask. Ask your currentcustomers (and not just yourfavorites) what they think youragency does well and whatthey think needs work. Askformer clients why they left —and get beyond price. Quizyour staff, especially the CSRsand front-desk employees, todiscover what people sayabout your agency when theycall in. Seek out yourcolleagues in the area’sbusiness community, andeven ask your companypartners how they perceive you.

Questionnaires can workeffectively in gathering thisdata, but if you have the timeand resources, one-on-oneinterviews or a small focusgroup can be very helpful.Since people might be shyabout criticizing your businessin front of you, it would beworthwhile to hire someone to conduct the interviews orfacilitate the focus group foryou. Professional marketingfirms are a good source forthis expertise, or even ask

the local college torecommend a top marketingstudent who could help youwith the project.

Once you’ve gatheredinformation about youragency’s current image, try to break the data down intosome key descriptive phrases.Is your agency consideredsolid and steady or fly-by-night? Old-fashioned orcutting-edge? A generalist or specialist? Apathetic orcustomer-focused? Workingwith a handful of key phrases— instead of volumes offeedback — will make thenext couple of steps moremanageable.

Image BearersNext, take a hard look at allyour agency’s “imagebearers.” That is anybody oranything that communicatessomething about your agencyto customers. This includesyour employees, your physicaloffice space and allpromotional materials.

Start with the agencypromotional items: signage,brochures, stationery, calls-on-hold messages, Website,calendars, print ads, radioand TV commercials—even

Conducting animage audit


the golf shirts and coffee mugswith your logo. Lay them all outon a conference table andevaluate their accuracy, currencyand consistency.

If everything looks like it comesfrom a different creative agency, it’stime to start from scratch. It iscritically important to have aconsistency of look, feel andmessage for a brand to beeffectively communicated.

Once you’ve finished this imageaudit phase and determined yourbranding goals, hire a writer anddesigner to coordinate your overalllook and message, and then stick to it.

Now look at your agency offices.Stand back and look at the spaceas if you’ve never seen it before.From the outside, does it lookwelcoming and successful? Inside,is it clean, professional andorganized? Or are desks clutteredwith piles of paper, bulky bindersand half-dead plants? Do you have

two-year-old magazines in thelobby, or publications that indicateyou are professional and up tospeed on financial services issues?Even if you don’t get a lot of walk-in traffic, how your office appearswill affect how your employeesbehave — and ultimately how theywill treat your customers.

And, while we’re on the subject,how does your staff look? Has thecasual dress code gone a little toofar, or do your employees lookcrisp and competent? Ask yourself:“If I didn’t know these people,would I trust them with myfinancial well-being?” Your staffmust be able to communicate theimage you want your agency tohave. Research shows that theemployees of agencies—yourpeople—rank most important inbuilding consumer trust. Thus, it’svitally important that in all yourcommunications materials youshow your staff: principals,producers and the service staff.

ComparisonOnce you’ve assessed youragency’s current image, determinehow it holds up against your ownbranding goals. Is your agency’sreputation close to your ideal,or do you have significant “repairwork” to do? Are your goalsrealistic given your agency’sresources and current image? Now look at your competition.How do these agencies describethemselves in their “imagebearers,” and how do others view them? How do you measureup to these competitors, and willthe attributes you’ve chosen topromote be able to overcome their position in the marketplace?How you answer all thesequestions will help you determinewhich communication vehicles to utilize in your agency branding efforts.

[ 23 ]

PennPRIME is the municipal entity specialist that can clearly illustrate ways to reduce risk. Formed, owned, and governed by our members, PennPRIME offers an array of products and services that are custom-tailored for Pennsylvania’s cities, townships, boroughs, and authorities. Composed of two insurance Trusts, PennPRIME provides comprehensive property, liability and workers’ compensation coverage as well as unique service programs like grants, training opportunities and sample loss control policies.Imagine a relationship with an organization with the leadership, advocacy, and Pennsylvania-specific expertise to take the burden of risk management off your client’s shoulders. Get into the swing of reducing your client’s risk. Imagine them as a client of PennPRIME…call today!

800.848.2040 • 717.236.9469 • www.pennprime.comPennPRIME is a service program of the Pennsylvania League of Cities and Municipalities

PennPRIME is the municipal entity specialist that can clearly illustrate ways to reduce risk. Formed, owned, and governed by our members, PennPRIME offers an array of products and services that are custom-tailored for Pennsylvania’s cities, townships, boroughs, and authorities.

Composed of two insurance Trusts, PennPRIME provides comprehensive property, liability and workers’ compensation coverage as well as unique service programs like grants, training opportunities and sample loss control policies.

Imagine a relationship with an organization with the leadership, advocacy, and Pennsylvania-specific expertise to take the burden of risk management off your client’s shoulders. Get into the swing of reducing your client’s risk. Imagine them as a client of PennPRIME…call today!

800.848.2040 • 717.236.9469 • www.pennprime.comPennPRIME is a service program of the Pennsylvania League of Cities and Municipalities


ACUITY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IFC

Atlantic Specialty Lines Inc . . . . . . . . . . . . . . . . .5

Brokers Surplus Agency . . . . . . . . . . . . . . . . .IBC

Guard Insurance Group . . . . . . . . . . . . . . . . . . .5

Hanover Fire & Casualty . . . . . . . . . . . . . . . . . . .1

Highmark Casualty . . . . . . . . . . . . . . . . . . . . . .17

Harford Mutual Insurance Co . . . . . . . . . . . . . .9

IA&B Exec Management Conference . . . . . . . .20

IA&B Partners Program . . . . . . . . . . . . . . . .16, 21

Interstate Insurance Mngmnt. . . . . . . . . . . . .OBC

MMG Insurance Company . . . . . . . . . . . . . . . . .1

Penn National Insurance . . . . . . . . . . . . . . . . . .11

PennPRIME Municipal Insurance . . . . . . . . . . .23

Preferred Property Program . . . . . . . . . . . . . .IBC

Philadelphia Contributionship . . . . . . . . . . . . . .9

Ad Index

ClassifiedA D V E R T I S E M E N T S

DISCOVER THE BENEFITSOF A PARTNERSHIP

WITH FAYETTEINSURANCE ASSOCIATES

Uniontown, PA 15401Website: www.fayins.comEmail: [email protected]

SOUTHEAST PA PRODUCERS & AGENCIES

Professional agency since 1926 locatedin Feasterville, Bucks County, Pa. Call for confidential information and a review of our services. Contact Ray Reinard at (215) 375-8600, Ext. 119.

If you would like to place a

Classified Advertisement, simply

fax your ad on company letterhead

to (717) 795-8347, and we will take

care of the rest.

[ 24 ]

When Theo Bohn purchased a cooperative apartment onNew York City’s West 87th Street, he didn’t take intoaccount a downstairs tenant – the famed BarneyGreengrass deli, known as The Sturgeon King. Bohnclaimed that the odors left him unable to work andcaused him to lose money on the subsequent sale of hisapartment.

A legal domino effect ensued, eventually including acomplaint against the deli. So Barney Greengrass turnedto its Lumberman’s Mutual Casualty Co. CGL policy. Theinsurer, however, balked and cited its pollution exclusion.

In her ruling, Southern District of New York JudgeBuchwald wrote: “[W]hile the quality of the plaintiff’srestaurant smells may be in the nose of the beholder,defendant’s ‘pollution’ argument – as addressed to theodors here, is malodorous to the court…. [New Yorkcourts have] demonstrated a general reluctance to applysuch exclusions literally in cases that do not involvetraditional environmental pollution.”

In the end, Lumberman’s was on the hook for the deli’sdefense costs.

Source: Insurer ordered to defend ‘Sturgeon King’ against odorallegations, Mark Hamblett, law.com

----------------------------------------------------------------———————-------The Last & Least column is dedicated to the industry’s oddities —from creative claims and kooky coverages, to (tasteful) jokes andstrange stories. Submit yours to [email protected], subject line: Last & Least. The editor will happily protect sources’ anonymityupon request.

Judge finds use ofpollution exclusion fishy


Our ApartmentProgram offers a great combination of competitive pricingand coverage for your customers!Five or more units are eligible for this great program. An optional Apartmentizer Coverage Endorsement isalso available which includes 34 additional coveragessuch as: Landlord/Owner FurnishingsLoss of EarningsLock ReplacementUtility InterruptionWater Back-Up of Sewers & Drainsand much more!Apartment program available in DE, MD, NJ and PA

Contact: Dennis Marsaglia, Ext. [email protected] Frisch, Ext. [email protected]

Brokers Surplus Agency, P.O. Box 2849, Warminster, PA 18974 � Call (215) 443-9900

Our ApartmentProgram offers a great combination of competitive pricingand coverage for your customers!

Five or more units are eligible for this great program. An optional Apartmentizer Coverage Endorsement isalso available which includes 34 additional coveragessuch as: Landlord/Owner Furnishings

Loss of EarningsLock ReplacementUtility InterruptionWater Back-Up of Sewers & Drainsand much more!

Apartment program available in DE, MD, NJ and PA



IF YOU HAVE THE TOOLS,WE HAVE THE INSURANCE.

Residential Contractors with up to five employees canfind great deals on liability and tools insurance atBrokers Surplus Agency! We represent UTICAFirst Insurance, one of the largest writers of small contracting firms in the Northeast! Blanket Additional Insured coverage and UTICA’sown “Toolbox Endorsement” which includes 7 bundledadditional coverages saves your customers hundredsof dollars! Call or e-mail us today for a quick quote.Artisan program available in DE, MD, NJ & PA



IF YOU HAVE THE TOOLS,WE HAVE THE INSURANCE.

Residential Contractors with up to five employees canfind great deals on liability and tools insurance atBrokers Surplus Agency! We represent UTICAFirst Insurance, one of the largest writers of small contracting firms in the Northeast!

Blanket Additional Insured coverage and UTICA’sown “Toolbox Endorsement” which includes 7 bundledadditional coverages saves your customers hundredsof dollars! Call or e-mail us today for a quick quote.Artisan program available in DE, MD, NJ & PA




In Pennsylvania & West Virginia 2307 Menoher Boulevard Johnstown, PA 15905814-255-7878 1-800-452-0297 Fax: 814-255-6010

In Maryland 111 Warren Road Suite 1B Cockeysville, MD 21030410-628-1744 1-800-759-7779 Fax 410-628-6914www.interstate-insurance.com


Documents

Primary Agent - September 2011 - DE Edition