The Big I Virginia Summer 2019

SUMMER 2019 

THE BIG 

V I R G I N I A 

A PUBLICATION OF THE INDEPENDENT INSURANCE AGENTS OF VIRGINIA

There when it matters most for... 

Independent Agents 

At Donegal, we are exclusively committed to the independent agency system for the 

distribution of our insurance products. 

We realize you have many choices when recommending commercial and personal 

insurance coverage options to your clients. That’s why Donegal delivers competitively 

priced products, timely underwriting, and outstanding claims service. 

It’s just another way that Donegal is “There When It Matters Most” for independent 

insurance agencies. 

To learn more, visit DonegalGroup.com today!

SUMMER 2019 

THE BIG 

V I R G I N I A 

The Big I Virginia is a publication of the 

Independent Insurance Agents of Virginia 

8600 Mayland Drive, Richmond, VA 23294 

Phone: 804.747.9300 / Toll-free: 800.288.IIAV (4428) 

Fax: 804.747.6557 / E-mail: members@iiav.com / Website: iiav.com 

INSIDE 

6 Message from the Chairman of the Board – H. Hunter Odom Jr. 

8 Message from the President and CEO – Robert N. Bradshaw Jr. 

10 Message from the State National Director — Michael F. Funkhouser 

12 2019 Preferred Partner Program 

14 Gathering Dust? Your Outdated Website May Be an E&O Risk 

15 IIAV Birthday Celebration June 25 

16 Reducing E&O Exposure from the Top Down 

17 Save the Date: YA Conference Oct 9-11 

18 VU: Read the Policy You’re Selling 

23- 

29 IIAV Convention & Exposition June 23-25 

30 Why You Need to Offer Excess UM/UIM to Every Client 

32 Messing Up on the Job without Even Knowing It 

35 3 Ways to Increase Sales While Decreasing E&O Claims 

36 Serving the High Net Worth Insurance Customer 

38 2019 IIAV Education 

THANK YOU ADVERTISERS 

34 Agents Insurance Markets 

aim-ins.com 

22 Allstar Financial Group 

AllstarFG.com 

13 Amerisafe 

Amerisafe.com 

40 Applied Underwrwiters 

Auw.com/us 

21 Berkshire Hathaway GUARD Ins 

Guard.com 

7 Builders Mutual Insurance 

BuildersMutual.com 

3 Donegal Insurance 

DonegalGroup.com 

37 FCCI Insurance Group 

Fcci-group.com 

10 Genesee Insurance 

Geneseeins.com 

9 Harford Mutual 

HarfordMutual.com 

5 Iroquois Group 

Iroquoisgroup.com 

2 Jackson Sumer & Associates 

jsausa.com 

For more information on advertising, contact Eric Johnson 

Blue Water Publishers, LLC / 9406 N. 107th St., Milwaukee, WI 53224 

414-708-2059 / fax: 414-354-5317 / eric@bluewaterpublishers.com 

20 JGS Insurance/ 

Preferred Property Program 

Ppp-quotes.com 

11 Penn National 

PennNationalInsurance.com 

39 SIAA 

37 Triumph Commercial 

Finance 

triumphcf.com 

IIAV IS AN ORGANIZATION DEVOTED TO 

PROMOTING, ENHANCING, SERVING AND 

ASSISTING INDEPENDENT INSURANCE AGENTS. 

IIAV Staff 

Ally Barbour 

Communications/Media 

Manager 

abarbour@iiav.com 

Robert N. Bradshaw, Jr., MAM 

President & CEO 

rbradshaw@iiav.com 

Cell (804) 929-4134 

Teri Chester 

Executive Secretary/ 

Receptionist 

& Membership Coordinator 

tchester@iiav.com 

Joe Hudgins, CPCU 

Technical Consultant 

jhudgins@iiav.com 

Cell (804) 929-4138 

Bonnie Joyce 

Senior Insurance 

Administrative Assistant 

bjoyce@iiav.com 

Linda Loving, CIC, AISM, AIAO 

IIAV Chief Operating Officer 

& VFSC Executive Vice President 

lloving@iiav.com 

Cell (804) 929-4133 

Susan E. C. Perkins 

Membership/Education 

Coordinator 

sperkins@iiav.com 

Carter Lyons, CAE 

IIAV Director of Education & 

Professional Development & 

VAIA Executive Director 

clyons@iiav.com 

Bonnie J. Warren, 

ACSR, CPIW, DAE, RPLU 

Insurance Account Executive 

bwarren@iiav.com 

Melanie Miller, AINS, CPIW 

Insurance Account Executive 

mmiller@iiav.com 

Rebecca Arnold 

Member Services Assistant 

rarnold@iiav.com 

Donald W. Bragg, 

CPCU, CPD, CIC, CPIA 

Director of Membership 

& Marketing 

dbragg@iiav.com 

The Big I Virginia is a publication of the Independent Insurance Agents 

of Virginia and is published quarterly by Blue Water Publishers, LLC. The 

Independent Insurance Agents of Virginia, Inc. reserves the right in its sole 

discretion to reject advertising that does not meet IIAV qualifications or which 

may detract from its business, professional or ethical standards. IIAV and Blue 

Water Publishers, LLC do not necessarily endorse any of the companies 

advertising in the publication or the views of its writers. The publisher cannot 

assume responsibility for claims made by advertisers, content provided by 

the editor, or for the opinions expressed by contributing authors. 

4 THE BIG VIRGINIA SUMMER 2019

CHAIRMAN OF THE BOARD 

H. HUNTER ODOM, JR. 

dmegill@mcleaninsurance.com 

E&O CLASSES 

HOW THEY CAN SAVE YOU AND YOUR AGENCY 

Our industry is rapidly changing and evolving and 

the E&O issues of today can be quite different 

than what they were 20 years ago. 

As an agency owner, thinking about E&O has always been 

a scary proposition. I have taken E&O classes over the 

years and any class worth its salt makes you scared and 

nervous about potential claims just because there are so 

many possibilities or areas that a simple mistake could be 

very costly for a client. 

I know that many agency owners avoid these classes 

because they aren’t exciting new revenue producing 

concepts. Of course, they could have huge expensesaving 

ideas that could save your agency from your E&O 

policy retention limit and many sleepless nights thinking 

about lost revenue and the possibility of damage to your 

reputation. 

Currently, the most common E&O claim asserted against 

agents is the alleged failure to procure “adequate” 

insurance. Adequacy is in the eye of the beholder and, 

with an agent’s guidance, should be determined by 

the customer. But increasingly, agents are being sued 

whenever the customer is underinsured. Some of these 

suits seek millions of dollars. And even if the agent has 

done nothing wrong, he or she must still defend the claim, 

which is expensive, highly stressful, distracting and a 

source of bad publicity for the agency. 

A frequent problem area in defending these suits is the 

agency’s website. Too many websites make unqualified 

promises such as: “We prepare a loss control report for all 

of our customers.” The reality is often quite different than 

the promise on the website. I have defended numerous 

agents who are cross-examined by the plaintiff’s counsel, 

using copies of pages from the agency’s website as 

exhibits. This is a potent weapon for the plaintiff’s bar and 

represents a significant potential for exposure. 

This brings us to the overall purpose of the E&O class. The 

discount is a huge benefit, as are the CE credits. 

But neither of those are the point – and that is something 

that easily gets lost in the shuffle of determining who on 

your team can and will attend, budgeting, taking time away 

from work, and yes, making sure that agents are compliant 

with CE requirements. 

The point of the E&O class is to protect your agency. 

IIAV’s classes are packed full of valuable information that 

quite honestly can mean the difference between staying in 

business or not. 

Any agency owner has worked far too hard NOT to make 

these classes (and learning in general) a top priority. One 

mistake from a team member who isn’t well-informed can 

be devastating. 

An E&O continuing education class (6 hours) should be 

taken by everyone on your staff at least once every three 

years. Make a point to have your agency CE manager track 

your staff’s E&O class frequency. 

IIAV offers a variety of courses and I encourage you to 

select a topic based on the needs of your agency. Also, it 

is possible for different members of your agency to take 

different classes to meet their specific needs or to make 

sure your agency is well-versed. And finally, IIAV can bring 

E&O content directly to you through in-house courses. 

Don’t stop there. Have the class participants provide a 

summary of the latest E&O issues at your next agency 

meeting. Keep your whole staff engaged on the importance 

of the E&O classes. 

Best in class agencies are always looking to improve and 

better their agency. Choose your E&O classes with all of 

this in mind. You can find all E&O class options at www.iiav. 

com/EOclasses. 

IIAV’S CLASSES ARE PACKED FULL OF VALUABLE 

INFORMATION THAT QUITE HONESTLY CAN MEAN THE 

DIFFERENCE BETWEEN STAYING IN BUSINESS OR NOT. 


Whether it’s the voice in your head 

or the one right beside you, 

Builders Mutual is always there, 

at work with you. 

BuildersMutual.com

PRESIDENT & CEO 

ROBERT N. 

BRADSHAW, JR., MAM 

rbradshaw@iiav.com 

VFSC THE BEST FOR E&O COVERAGE 

AND RISK MITIGATION 

I’m going to toot our own horn. 

When I was told that the theme of this issue was to be 

Errors & Omissions insurance … I knew exactly what I 

was going to write about – our professional staff … one of 

my favorite topics. 

In 1969 the IIAV Board of Directors determined that our 

membership could be best served by making sure that 

our members have the opportunities for the best possible 

protection for their agencies and to do that must be a core 

function of a separate organization. They founded the 

Virginia Financial Services Corporation (VFSC) as a wholly 

owned subsidiary of IIAV. VFSC is a specialized insurance 

agency whose primary client is the IIAV member and their 

need for high quality E&O coverage and risk mitigation. 

Presently VFSC provides the E&O protection for close to 

90% of IIAV’s members – large and small. The predominate 

carrier is Swiss RE through a captive program with our 

national association. However, VFSC has the ability to 

search for and shop a wide range of insurance companies 

for the best possible fit for your agency (WOW … sound 

familiar?). 

VFSC is managed by Linda Loving, CIC, AISM, AIAO, with 

a highly knowledgeable and professional team, including 

Bonnie Warren, ACSR, CPIA, DAE, RPLU, Melanie Miller, 

AINS, CPIW (who is also working on her CPCU), and Bonnie 

Joyce our RLI Administrator. Together they represent over 

110 years of experience in our industry. (I promised not 

to specify.) I’ve seen it time and time again. They know 

the right questions to ask. They know how to look at 

coverages. They know when to go to bat for the member 

agency. They’ve looked at policy forms forward, backward, 

and sideways. 

Linda Loving has been with IIAV/VFSC well before I started 

with IIAV. She is an invaluable partner and associate for the 

organization. I met Bonnie Warren the second day I worked 

for IIAV at an ACSR event and was impressed with her from 

the very beginning. And I met Melanie Miller when she was 

president of the Richmond Insurance Women’s Association 

and had already received recognition from her peers. 

I tell you, E&O insurance shopping is not for the DIY 

agency associate. It’s not a part-time gig. If the success and 

survivability of your agency is important … why not have 

the very best representing you? If you spent one day with 

Linda Loving as she works to help some of the industry’s 

largest agencies with their E&O ... you would want Linda/ 

Bonnie/Melanie on your side. 

And that’s not to say that we don’t have the right backstop. 

Doug Palais is IIAV’s outside Corporate Council who has 

helped many of our members with their E&O claims. I was 

actually told once by our primary insurance carrier that 

Doug was the “most successful agent defense attorney in 

the nation” in our national group. I was not surprised. 

If VFSC currently provides your agency with E&O coverage 

… you can rest soundly. If not, you might want to give one 

of our professionals a call. 

I have to tell you though. Like the cobbler’s children with no 

shoes … I’ve been told that agents specifically have trouble 

filling out E&O applications. Why am I not surprised? 

P.S. Don’t forget … VFSC doesn’t just provide E&O. Cyber 

is VFSC’s fastest growing product and they have a program 

for both member agencies and their clients. Plus EPLI and 

Commercial Umbrella are available as well. Check out 

what VFSC has to offer for your agency and your clients at 

www.iiav.com. 

PRESENTLY VFSC PROVIDES THE E&O PROTECTION FOR 

CLOSE TO 90% OF IIAV’S MEMBERS – LARGE AND SMALL. 


committed to mutual success. 

Harford Mutual Insurance partners with 

independent agents in Virginia. 

We insure restaurants, contractors, mercantile, and other 

commercial entities. We’re committed to protecting your 

client’s business and building yours. 

HarfordMutual.com 

800.638.3669 

INSURING BUSINESSES SINCE 1842

STATE NATIONAL DIRECTOR 

MICHAEL F. 

FUNKHOUSER 

mikehm@shentel.net 

IIAV ENDORSES CYBER POLICY SPECIALIST EVOLVE MGA 

Ihad the distinct pleasure of serving on the VFSC board 

for two years as the president. 

As an insurance agent, you know the importance of 

having the right coverages. With IIAV’s variety of insurance 

products for your agency, you can be assured that your 

business and staff are well protected. 

The VFSC team is second to none. They have the 

experience, education, and dedication to not only make 

sure you have the coverages you need but provide service 

that cannot be beat. VFSC’s staff is dedicated to giving you 

the same attention and commitment to service that you 

give your clients. 

GENESEE YESTERDAY VS 

GENESEE 

TODAY 

YESTERDAY 

Originated in 1982 in the state of Georgia, 

writing Transportation coverages. 

TODAY 

· Part of JenCap Holding Group 

· 8th Largest Broker in the US 

· Independently Operated 

· Ability to Write in all 50 States 

· Expanded Product Lines 

Admitted Division 

Garage 

General Liability, Construction, Environmental 

Premium Finance-IPC 

Professional Liability 

Exclusive Programs 

Specialty Property 

Wind, Flood, Quake, & Shared Layered 

Transportation 

We are so much MORE TODAY! 

www.geneseeins.com 

Genesee 

a JenCap Holdings Company 

Home Office - Georgia 

3025 Windward Plaza 

Suite 400 

Alpharetta, GA 30005 

Phone: 770-396-1600 

Fax: 770-396-7699 

Toll Free: 800-282-8755 

Your IIAV membership gives you access to an array of 

insurance products such as: professional liability, data 

breach liability, commercial umbrella, life, health, dental, 

long term and short term disability and retirement planning 

services for your agency and staff. 

IIAV has recently endorsed the industry leading cyber 

insurance “specialist” market, EVOLVE MGA. This cyber 

program, backed by Lloyds of London, is now available 

to IIAV member agencies to sell to their clients. IIAV 

members also have access to the same form and exclusive 

access to rates for their agency that are significantly under 

market value. 

RATED FIVE-STAR 

2016-2019 WHOLESALER/MGA 

By IBA Magazine 

Branch Office - Colorado 

390 Interlocken Crescent 

Suite 140 

Broomfield, CO 80021 

Phone: 303-791-0600 

Fax: 303-791-0850 

Toll Free: 866-847-4223 

« 

Est. 1982 

Branch Office - North Carolina 

3440 Toringdon Way 

Suite 208 

Charlotte, NC 28277 

Phone: 704-424-3999 

Fax: 704-353-7077 

Toll Free: 1-833-Genesee (436-3733) 

I placed my agency’s cyber policy 

with EVOLVE, and sold EVOLVE to 

a client of mine back in December. 

It doesn’t get much easier to put 

something on the books than this 

product! 

EVO 3.0’s first party coverage pays 

out on an “each and every claim” 

basis, eliminating an aggregate limit. 

This gives each policyholder the 

benefits of full first party coverage 

limits each time a crisis strikes. 

Contact any cyber representative in 

the VFSC department today at 804- 

747-9300 to see just how easy it can 

be for you too. 

IT DOESN’T 

GET MUCH 

EASIER TO PUT 

SOMETHING 

ON THE BOOKS 

THAN THIS 

PRODUCT! 


We look for the best independent agents and build 

relationships that last the duration. We are committed 

to the independent agency system as the only means 

to deliver our products. Because of that, we work 

hand-in-hand to help our agencies grow profitably. 

Our agents set us apart. 

Business • Surety • Auto • Home 

www.PennNationalInsurance.com 

Visit our website to find out more.

Chairman's Club 

Executive Club 

2019 

PARTNER 

PROGRAM 

President's Club 

Independent Club 

A special thank you to all of our partners participants for 2019! 

(As of 4/9/19) 


amerisafe.com - 800.897.9719 

SAFE ABOVE ALL 

Strong and steady, constantly raising the bar. All great accomplishments 

have a certain level of hazard involved, but AMERISAFE has workers’ 

comp down to the detail. It’s a large part of why we retain 90%* of our 

policyholders. The best protection is being proactive. 

*Policyholder retention rate based on voluntary business that we elected for renewal quote: 93.0% in 2017. 

© 2019 AMERISAFE, Inc. AMERISAFE and the AMERISAFE Logo are registered trademarks of AMERISAFE, Inc. All rights reserved. 

SUMMER 2019 THE BIG VIRGINIA 13

GATHERING DUST? 

YOUR OUTDATED WEBSITE 

MAY BE AN E&O RISK 

By Jim Hanley 

Websites can be costly to maintain, especially in 

an era when Facebook, LinkedIn, Twitter and 

other social media outlets provide a cheaper 

way to reach customers. 

But if your agency website is collecting dust, it could be 

exposing your business to errors & omissions claims—and 

even fines. To avoid the potential E&O fallout, ask the 

following questions about your agency website: 

Does it state only the facts? Website language is showing 

up in courtrooms and mediations across the country in 

instances when insurance agents have overpromised 

their services, then underdelivered during 

the insurance transaction. In most states, 

a duty to advise requires a special 

relationship, which can be formed in 

many ways—including promising 

to provide the “best coverage at 

the best price.” You can change 

the duty you owe to your client by 

avoiding absolutes. For example, 

try tweaking the above statement 

to read: “Our agency will provide 

you with competitive coverage at 

an affordable price.” 

Does it include a disclaimer or privacy 

statement? The purpose of a disclaimer 

is to reduce the website owner’s liability 

from visitors to the website. A privacy statement, 

meanwhile, informs visitors about your intentions regarding 

any personal information you collect through the website. 

For examples of website disclaimers and privacy 

statements to add to your agency website, log in to the 

E&O Happens website (iiaba.net/eohappens) with your 

Big “I” credentials. Remember: It’s always best to have 

your attorney review these statements prior to posting, to 

ensure they match the content on your website. 

Does it comply with accessibility law? The Americans 

with Disabilities Act (ADA) mandates that people with 

disabilities must have equal access to the same goods and 

services as those without disabilities. 

According to ada.gov, “The Department of Justice may file 

lawsuits in federal court to enforce the ADA, and courts 

may order compensatory damages and back pay to remedy 

discrimination if the Department prevails. Under Title III, 

the Department of Justice may also obtain civil penalties 

of up to $55,000 for the first violation and $110,000 for any 

subsequent violation.” 

Most business professionals are familiar with many of the 

accommodations required by the ADA, such as wheel chair 

ramps, designated park-ing spaces and braille type on 

ATM machines. But in addition to your physical business 

location, a website is also available to the public—which 

means it, too, must be accessible without barriers to 

people with visual and hearing disabilities. 

To learn more, visit ada.gov or contact your attorney and a 

website professional familiar with the ADA’s website 

accessibility requirements as soon as possible. 

You can also head to the U.S. Department 

of Health & Human Services website 

(hhs.gov) for a checklist you can use 

to con-firm your agency website 

meets all necessary requirements. 

Next time you click, tap or swipe 

through the pages of your agency’s 

website, look at it through the lens 

of a customer, potential customer 

and customer’s attorney. Then, 

imagine it getting blown up and 

used during a trial an E&O claim. 

Jim Hanley is Big “I” director of agency 

professional liability risk management. 

To learn more about the Big “I” Professional 

Liability program, visit independentagent.com and 

select Products, then Professional Liability. 

Copyright © 2018, Big “I” Advantage, Inc. and Westport 

Insurance Corporation. All rights reserved. No part of this 

material may be used or reproduced in any manner without 

the prior written permission from Big “I” Advantage. For 

permission or further information, contact Agency E&O 

Risk Manager, 127 South Peyton Street, Alexandria, VA 

22314 or email at info@iiaba.net. 

This article is not intended to provide specific advice 

about individual legal, business, or other questions. 

It was prepared solely for general informational 

purposes, and is not a recommendation that a particular 

course of action be followed. If specific legal or other 

expert advice is required or desired, the services of 

an appropriate, competent professional, such as an 

attorney or accountant, should be sought. 


IIAV 

TURNS 

120! 

over 120 years IIAV has enjoyed a 

For 

as Virginia's largest and most 

reputation 

technical information, the best group 

and 

products in the industry, sales 

insurance 

programs, employee evaluation 

training 

exposure to the latest news and 

services, 

and the largest and most 

information, 

continuing education 

professional 

designed with the agent's career 

programs 

in mind. 

needs 

J O I N T H E C E L E B R A T I O N 

insurance trade organization. 

active 

are the benefactors of legislative 

Members 

U N E 2 5 , 2 0 1 9 

J 

: 0 0 P M - 1 0 : 0 0 P M 

7 

I A V B I R T H D A Y C E L E B R A T I O N 

I 

W A R D S & E N T E R T A I N M E N T 

A 

V A I A S I L E N T A U C T I O N

FOLLOW 

THE LEADER 

REDUCING 

E&O EXPOSURE 

FROM THE TOP DOWN 

By Mark Heimsoth 

Most of us think we have a pretty good idea of 

what a good leader looks like in action. We may 

be hardpressed to define “leadership,” but we’re 

proud members of the “I know it when I see it” school of 

thought. 

That’s OK. Sometimes it takes a rocket scientist to put their 

finger on the painfully obvious, such as when Albert Einstein 

said, “Setting an example is not the main means of influencing 

others, it is the only means.” 

If you want the next generation of your agency to find the 

path to success, you’ll need to let your example show the way. 

Good habits can take many forms, but a survey of Swiss Re 

Corporate Solutions claims handlers highlighted five that can 

help reduce or prevent errors & omissions claims: 

Standard operating procedures. Effective E&O prevention 

depends on written standard operating procedures, as well as 

written minimum standards for writing and servicing business. 

There should be a written procedure for every workflow in 

the agency: new business, renewals, rewrites, policy changes, 

claims handling and cancellations, just to name a few. Put 

SOPs in place and make it clear that everyone needs to follow 

the rules— including you. 

Education. Everyone at the agency should participate in 

ongoing and meaningful continuing education, both to 

strengthen their knowledge of insurance products and to 

develop in-house expertise about things like the agency 

management system—and they should see you sitting front 

and center, taking notes. 

Documentation. Good documentation can save an agency 

in a bad situation. But to be effective, it needs to be timely, 

detailed and easy to understand. All documentation should 

be kept in the same place and readily accessible to everyone 

who works with the account. 

Consistency. Improvisation is great for comedians, but bad 

for insurance agencies. If your agency finds that a particular 

process works, do it consistently, and incorporate it into a 

mandatory checklist. 

For example, if you follow up with a client when their premium 

payment is due or past due, you’ve arguably created a duty 

to follow up every time there is a similar situation. 

Self-audit. Doing a self-audit will reveal both the good and 

the bad—where your agency’s procedures are working, as 

well as the areas that need renewed focus internally and 

through continuing education. 

Review procedures, forms and documents and conduct 

an overview with key managers or supervisors. No one at 

the agency should be exempt from the audit—we all make 

mistakes, and we can all use them as learning experiences. 

Equally important: Listen to every voice when it comes to 

making improvements. Every employee should feel that their 

insights are valued. Sometimes it takes a fresh set of eyes to 

see an old problem. 

Mark Heimsoth is an assistant vice president, claims specialist 

with Swiss Re Corporate Solutions and works out of the office 

in Overland Park, Kansas. Insurance products underwritten by 

Westport Insurance Corporation, Overland Park, Kansas, a 

member of Swiss Re. 





permission or further information, contact Agency E&O Risk 

Manager, 127 South Peyton Street, Alexandria, VA 22314 or 

email at info@iiaba.net. 

This article is not intended to provide specific advice 

about individual legal, business, or other questions. 

It was prepared solely for general informational 

purposes, and is not a recommendation that a particular 

course of action be followed. If specific legal or other 

expert advice is required or desired, the services of an 

appropriate, competent professional, such as an attorney 

or accountant, should be sought. 


2019 YOUNG AGENTS' CONFERENCE 

S A V E T H E D A T E 

O C T O B E R 9 - 1 1 , 2 0 1 9 

TheTides Inn 

Irvington, VA 


Virtual University Website 

READ THE POLICY YOU’RE SELLING 

“Insurance professionals should seek 

continually to maintain and improve 

their professional knowledge, skills, 

and competence.” (The Canons, Rules, 

and Guidelines of the CPCU Code of 

Professional Conduct, Canon 2.) 

“Insurance professionals should 

be diligent in the performance 

of their occupational duties and 

should continually strive to improve 

the functioning of the insurance 

mechanism.” (Canon 4.) 

“Last Sunday morning there was a 24-inch water main break on the road where my insured is located. The 

water main was only 20 yards from the insured. We have them written under a Businessowners policy that 

has the broadest coverages available. Yesterday, the adjuster indicated, ‘the claim might be not covered 

because of surface water.’ However, when we Google what is surface water, it‘s quite vague. Therefore, it 

has been difficult to explain to our client that the water main damage most likely will not be covered by 

the comprehensive policy we tailored for them. I hope you might have other similar claims that you recall, 

or perhaps there is some case law(s) or bulletins which you might be able to research.” (Email, sent with no 

citations or attachments of policy forms, from the president of an agency outside New York in the eastern U.S.) 

“I write a property policy using ISO form 

CP 00 10 06 07. The building definition 

includes buildings under construction for 

materials, equipment, supplies, etc. The 

policy also has the special causes of loss 

form CP 10 30 06 07. Question: If there 

is a loss to building materials due to 

theft, would there or would there not be 

coverage?” (Email from another anonymous 

producer in a Midwestern state.) 

“Is the trigger for property damage in 

a Commercial General Liability policy 

the date the product was manufactured 

or the date the product was put to 

use? What is the interpretation of 

‘occurrence’?” (Email from a CPCU in 

another Midwestern state.) 

WHAT DO THESE QUESTIONS HAVE IN COMMON? THE 

PRODUCERS COULD HAVE FOUND THE ANSWERS QUITE EASILY 

BY READING THE CONTRACTS THAT THEY WERE SELLING. 

In the first question, the agency 

president claimed that the insured 

had “the broadest coverages 

available,” yet the news about a 

surface water exclusion apparently 

came as a surprise. The water 

damage exclusion in property 

insurance policies dates back 

decades. The individual did not 

know the product the agency had 

sold. 

The second questioner knew what 

the coverage forms were. However, 

rather than reading the forms 

to determine whether coverage 

would apply to a theft of building 

materials, the questioner asked 

someone else (not me) to do it. 


THE NEED FOR A 

NEW TYPE OF 

INSURANCE 

Cyber insurance is necessary because traditional 

insurance policies were not designed to handle 

21st century threats. 

WITH THE ADVENT OF THE INTERNET, BUSINESSES ARE NOW 

EXPOSED TO THE WORLD’S CRIMINALS AND VULNERABLE TO ATTACK 

AT ANY TIME OF THE DAY OR NIGHT. 

PHISHING SCAMS, IDENTITY THEFT, AND TELEPHONE HACKING ARE 

ALL CRIMES THAT TRADITIONAL INSURANCE POLICIES DO NOT 

ADDRESS. CYBER INSURANCE CAN PROVIDE COMPREHENSIVE CRIME 

COVERAGE FOR A WIDE RANGE OF ELECTRONIC PERILS THAT ARE 

INCREASINGLY THREATENING THE FINANCIAL RESOURCES OF 

TODAY’S BUSINESSES. 

Protect against such losses with an EVOLVE Cyber Policy through VFSC. 

Contact any of our Cyber Representatives today at 804-747-9300

The third questioner, who is actually 

bound by the ethics canons cited 

above, and who has taken the intensive 

CPCU courses and passed the exams, 

apparently did not review the CGL 

policy, did not know that coverage under 

that form has always been triggered on 

the date the injury or damage occurs, 

and in fact did not check the form’s 

definition of the word “occurrence.” 

All of these individuals hold licenses 

issued by their respective state insurance 

regulators. They have been granted 

legal authority to give other people 

advice about insurance decisions. They 

are permitted to accept commission 

payments for the sale of contracts 

potentially involving tens or hundreds 

of thousands or even millions of dollars. 

No doubt some of them prominently 

use the Trusted Choice® logo in their 

advertising. And yet, they do not know 

what is in the contracts they are selling. 

Worse, they don’t display any inclination 

to find out on their own. 

I wish I could tell you that these 

questions are unique, but they are not. 

It is very common for producers to ask 

me or my peers around the country, 

“Does a [fill in the blank] policy cover 

[a particular loss]?” That question 

immediately implies that all policies 

of that type are the same, that there’s 

no difference between ISO, GEICO, 

Progressive or Travelers auto policies. 

That a Chubb umbrella is the same as 

one issued by The Hartford. That a GL 

policy issued by Scottsdale says the 

same thing that one issued by CNA 

says. That is demonstrably incorrect. 

As evidence, I will cite my own previous 

blog posts: 

• An ISO homeowners policy covers 

dwellings that house up to four 

families. At least one insurer’s policy 

does not cover three- and four-family 

dwellings. 

• A theft claim was not covered 

because two words, found in ISO 

homeowners policies, were not in 

the one a Texas man bought. 

• The afore-mentioned ISO Causes of 

Loss – Special Form contains a fiveword 

phrase that would make the 

difference between coverage and 

no coverage for the owner of heavy 

equipment if the floor collapses. His 

policy will not provide the coverage. 

• A commercial auto insurer’s policy 

actually makes the application part 

of the legal agreement between 

it and the insured. In one part 

of that application, the insured 

acknowledges a duty to notify the 

insurer of new drivers. What happens 

if the person who normally handles 

that is on vacation or out sick when a 

new driver gets hired? 

Here are the facts: 

• Insurance policy forms and 

endorsements for the same line of 

coverage but issued by different 

insurers have significant differences. 

• Insurance producers offer these 

Preferred Property Program can help you procure Umbrella 

coverage for your insureds with an AXV A.M. Best rated carrier 

for the following types of risks: 

Developer Sponsored Boards 

Master Associations 

High-rise Associations & Apartments to 35 stories are eligible and more 

Limit options ranging from $5 million to $50 million 

Coverage can include excess D&O ● General Liability ● Auto ● Employee Benefits 

Employers Liability, Including Employment Practices Liability* 

(*if covered under the D&O) 

Follow Form EPLI is available only up to $25 Million limit 

AURA 

In 2016 we partnered with American Union Risk Underwriters (AURA) located in Florida. 

With our new partner we can now also offer our comprehensive Umbrella, with 

unsurpassed service and for the following types of risks: 

Hotels ● Motels ● Timeshares ● Lessor’s Risk Enclosed Malls Shopping Centers 

Retail ● Office Buildings ● Warehouses ● Light Industrial Apartments 

Limit options ranging from $5 million to $100 million 

For information on our AURA program, contact our experienced underwriter Tom Clementi at 877-506-1430 

or visit our website, www.aurains.com 

A subsidiary of 

101 Crawfords Corner Road, Suite 1300 

Holmdel, NJ 07733 

For more information 

contact our team of Underwriters 

888-548-2465 

www.ppp-quotes.com 


different policy forms and 

endorsements for sale to their clients. 

• Leaving aside what the courts say 

about a producer’s legal duty to 

insurance buyers, those buyers rely 

on producers to know what those 

forms and endorsements say. 

• Producers who do not know what the 

forms and endorsements say cannot 

give sound advice to their clients. 

When people receive bad advice, they 

are more likely to make bad decisions. 

They may make bad decisions even with 

good advice; bad advice just makes a 

bad outcome more likely. When they 

make bad decisions and eventually 

suffer uninsured losses, people suffer. 

Not just the insured – innocent thirdparty 

claimants. 

In one case involving a New York State 

agency, the insured had a special events 

policy covering a rodeo. Actually, 

the insured received a certificate of 

coverage, not a complete policy. After 

the event ended, some bulls got loose. 

An average professional bull riders 

bull weighs between 1,600 and 1,700 

pounds. It’s not hard to imagine that 

a bull after a rodeo is at best anxious 

and at worst frightened. These bulls 

injured several people before they were 

subdued. People who came out for 

an evening’s entertainment ended the 

night in hospitals. 

When they sued, the insured looked to 

his special events policy for coverage. 

This policy was obtained from an 

employee of a managing general 

agency, brokered to an employee of the 

retail agency, which was managed by a 

veteran agency principal. And before 

the loss occurred, none of them noticed 

that the policy excluded coverage 

for bodily injury or property damage 

caused by animals. 

A special events policy covering a 

rodeo did not cover injuries caused by 

animals, and nobody noticed. Please 

ponder that for a moment. Animals are 

kind of the stars of the show at rodeos. 

So, no coverage under the events 

policy, so the insured sues the agency. 

Trial court dismisses the lawsuit, insured 

appeals, and this time he wins. The 

agency couldn’t even cite the insured’s 

duty to read the policy as a defense, 

as there was no policy for the insured 

to read. He had only a certificate. The 

appellate court has sent the case back 

to the lower courts for a trial. I doubt the 

agency’s E&O carrier will let things get 

that far. The agency in question has not 

been an IIABNY member for well over a 

decade, so I don’t know who that carrier 

is. 

Did I mention that the injuries 

occurred in the summer of 2012, and 

the appellate court’s decision just 

came down four months ago? In the 

meantime, have the people injured by 

the bulls received anything? Only if the 

insured emptied his pockets. The guy is 

a logger by trade and puts on rodeos as 

a sideline. Something tells me he’s not 

independently wealthy. 

Powered by Agents 

for Over 35 Years 

and we plan to keep it that way. 

Businessowner's Policy | Commercial Auto 

Commercial Umbrella | Workers' Compensation 

Homeowners | Personal Umbrella 

The Security You Need. The Name You Trust. 

Berkshire Hathaway 

GUARD 

Insurance 

Companies 

AmGUARD AZGUARD EastGUARD 

NorGUARD WestGUARD 

See state availability at www.guard.com 


People enjoying a night out, injured by 

agitated animals who weigh almost as 

much as a car, and they probably have 

received no compensation for their 

injuries four years after the fact because 

three insurance professionals didn’t 

know what they were selling. 

I believe that product knowledge is 

an ethical issue. The stakes are too 

high, the consequences too severe, 

the potential financial loss is too great 

for we as insurance professionals to 

shrug, say the policies are all the same, 

and focus on whether we can get the 

premium down fifty bucks. Ignorantly 

selling someone the wrong product can 

and does harm people. 

It is one thing if a client ignores your 

suggestion and buys lower limits 

or skips the coverage altogether. 

People can’t be forced to buy high 

uninsured motorists limits or flood 

coverage. It’s another thing altogether 

when the clients are never given the 

chance to make that decision because 

they’ve been told that they have “the 

comprehensive policy we tailored for 

them,” to quote the email above about 

the water main break. 

We are insurance professionals. We do 

what we do to make a living, yes, but 

we also do it to give people peace of 

mind so they can go on about their 

lives and businesses. We can’t do that 

unless we know what we are talking 

about. That means keeping copies of 

the insurance policy forms and reading 

them. Sometimes the words are indeed 

vague and subject to interpretation 

(personally, I find interpreting policy 

language to be the fun part – here’s a 

good example about some kayaks.*) 

That’s when the conversation should 

start about what it all means. However, 

the starting point has to be opening 

a paper or electronic copy of a policy 

form, finding the relevant provision, 

and reading what it says. No one can 

commit all these forms to memory, but 

the key is to know where they are and 

where to look for the answers when 

questions come up. 

Sure, I can do that for you, Bill Wilson 

can do it, Chris Boggs can do it, and 

so can a lot of other people around 

this country who are smarter than I 

am. But I’m not the one who has to 

face the client, or answer a summons, 

or suffer a damaged reputation. I’m 

a guy blogging at a desk in Syracuse, 

and no one faces bankruptcy if I never 

get around to reading today’s email 

from Insurance Journal. But someone 

could face bankruptcy if an insurance 

producer sitting at a desk in Syracuse 

or San Francisco or San Antonio sells a 

policy to someone without knowing if 

it’s the right policy for that client. 

We are insurance professionals. We are 

Trusted Choice®, for crying out loud. 

Maybe we’re not all CPCU’s, but that 

doesn’t mean we shouldn’t meet the 

requirements of the CPCU canons at 

the beginning of this article. We have 

ethical obligations to the people we 

serve. We owe it to them. We owe it to 

our peers in this industry that has treated 

us so well. We owe it to ourselves. 

Read the policy. 

*https://rms.iiaba.net/Resources/Pages/ 

Publications/VU/ReadThePolicy.aspx 

FIND ALL YOUR INSURANCE NEEDS IN ONE PLACE 


Leading 

The WAY 

IIAV Convention & Exposition 

June 23–25, 2019 

Hilton Virginia Beach Oceanfront 


Leading 


Keynote 

Creating Cultures 

of Excellence 

Darren Woodson 

ESPN Analyst, Former Dallas 

Cowboy, Entrepreneur & Speaker 

What are the cultural 

differences between mediocre 

teams and winning teams, 

whether they are in sports 

or business? In this speech, 

Darren Woodson (5-time 

Pro Bowl safety and 3-time 

NFL Super Bowl Champion 

with the Dallas Cowboys) 

describes what leaders must 

embrace in order to build a 

culture of excellence with their 

teams. Learn how to embrace 

change, competition, and 

confrontation within your 

organization. 

Cultures of excellence 

embrace: 

• (hard) change 

• (honest) confrontation 

• (healthy) competition 

• and...individuals with 

(heartfelt) character 

JOIN US! 

This program is for you. We’re bringing you content that is designed specifically to meet your needs, no 

matter your role, organization, or experience level. All members of the agency team as well as those on the 

company side will walk away with more knowledge and insight than we can possibly say. 

Convention Agenda 

Sunday, June 23, 2019 

8:00 pm–10:00 pm Welcome/Network Reception 

MONday, June 24, 2019 

8:00 am–6:00 pm Registration Open 

8:00 am–8:45 am Breakfast & First Time Attendee Reception/Orientation 

8:50 am Sponsors Spotlight 

9:00 am–10:00 am KEYNOTE: Creating Cultures of Excellence (see description to the left) 

Darren Woodson, ESPN Analyst, Former Dallas Cowboy, Entrepreneur & Speaker 

10:15 am–11:15 am Session: Creating a Millennial-Friendly Agency—Tips for Attracting and 

Retaining Generation Y Agents 

Claudia St. John, SPHR, SHRM-SCP, President, Affinity HR Group, Inc. 

“Generation Y” or “Millennial” workers are now the largest generation in the workforce 

and occupy more than 20% of leadership positions. At the same time, they are becoming 

harder to attract and retain, particularly in a very tight labor market. 

The good news is that there are things you can do to create a Millennial-friendly agency 

that require a minimal financial investment and that will maximize your ability to attract 

and retain Gen Y workers. 

11:30 am–12:15 pm Leadership 360 

Panelists 

u Zack Brandau, Executive Vice President, Core Assurance Partners 

u Drew Monroe, Owner, Prosper Insurance Group 

u Brittany Totty, CPCU, CIC, AAI, Vice President, Invincia Insurance— 

A Towne Insurance Agency 

u Benjamin G. Winters, CIC, Vice President, Winters-Oliver Agency 

A rapidly changing professional landscape requires leadership that can keep pace. 

Traits such as innovation, creativity, vision, and agility are among the many needed to 

successfully navigate constant change. During this discussion, you’ll hear from leaders 

who have put those skills to work with great success. They’re leading the way in their 

own organizations, but also in our profession as a whole. 

12:15 pm–2:00 pm Fun on the Beach ~ Hospitality Tent Open 

3:00 pm–6:00 pm Tradeshow: Your Resource & Solution Center 

6:00 pm Company dinners or on your own 

TUESday, June 25, 2019 

8:00 am–6:00 pm Registration Open 

8:00 am–8:45 am Breakfast 

8:50 am Sponsors Spotlight 

9:00 am–10:00 am Session: The Five Secrets to An Unstoppable Memory 

Ron White, Two-Time National Memory Champion 

Ron White is one of the top memory speakers in the world. He is a two-time USA 

Memory Champion and held the record for the fastest to memorize a deck of cards 

in the USA. He has appeared on Good Morning America, History Channel’s Stan Lee’s

Superhumans, National Geographic, Martha Stewart, Dr. Oz and more. 

His presentation will show you how to increase your performance and 

confidence by providing the techniques you need to develop a more 

powerful memory. As an author, speaker and business owner for over 

25 years, Ron knows how to relate memory training to maximizing 

productivity and profits. 

10:15–11:15 am Session: The Sales Process—A Practical Approach 

Bill Anderson 

This session will be an introduction to a practical concept of building 

your book of commercial business. It is a simple 5 step process: 

1. First we will work through the concept of being a specialist. Business 

owners want to work with an agent who knows their business. The 

only way an agent can do that is to narrow down their focus and 

become a specialist in a few types of businesses. 

2. Next we will focus on using tools available to select a list of prospects. 

3. Then we prioritize the businesses on the list so that there will be 

productive prospecting. 

4. Then we must establish a marketing plan to reach the businesses 

chosen to reach. 

5. The final step is the most difficult one—just do it. 

A person can be taught steps 1-4. But, it takes grit and determination for 

step 5. Those who are highly successful do it over and over again. Join us 

on a discussion on steps 1–4 and what it takes for step 5. 

11:30 am–12:30 pm Session: When Mitigating Risk Meets A Disaster— 

What Are the Unintended Consequences? 

Suzanne Novak, Owner & President, ERUdyne 

This session will share a new perspective on how to prepare for a disaster 

in your home, your workplace, and/or your community. How prepared 

should you be? What happens if you over-prepare? What happens when 

you avoid the tough discussions? In the dynamic world we live in, it is 

imperative that we do our best to manage chaos before it becomes a 

crisis so when something happens we are ready to respond and recover. 

12:45-1:45 pm Breakout Sessions 

Session: A Deeper Dive: When Mitigating Risk Meets 

Disaster—A Case Study of Unintended Consequences 

Suzanne Novak, Owner & President, ERUdyne 

This highly interactive session continues the discussion presented 

earlier with a focus on how the insurance agent can help yourself, your 

customers and your community. We will look at some major disasters 

in our Nation and discuss the impact insurance had on the recovery 

process. What impact did it have on a family trying to recover from an 

incident beyond their control. 

Session: Cyber Exposure & Risk Mitigation 

Candace Funsch, Production Underwriter, Evolve MGA 

Travis Whitmill, Vice President, Evolve MGA 

Can you survive a cyber-attack? This seminar is designed to teach you 

about the top two cyber claims with real-life claims examples, exposures, 

and the pre-risk management steps you can take to prevent a cyber 

incident. After this seminar, you will be able to effectively take proactive 

steps to ensure the safety of your agency in the event of a cyber-attack. 

2:00–5:00 pm Fun on the Beach ~ Hospitality Tent Open 

6:00–7:00 pm Reception 

7:00–10:00 pm IIAV Birthday Celebration Dinner / Awards / Entertainment / 

VAIA Silent Auction 

Content Leaders 

BILL 

ANDERSON 

CANDACE 

FUNSCH 

SUSAN 

NOVAK 

BRITTANY 

TOTTY 

TRAVIS 

WHITMILL 

ZACK 

BRANDAU 

DREW 

MONROE 

CLAUDIA 

ST. JOHN 

RON 

WHITE 

BENJAMIN 

WINTERS

Registration 

Full registration includes the following. À la carte registration is also available. 

n All educational sessions 

n Three receptions 

n Breakfast on Monday and Tuesday 

n Dinner and entertainment on Tuesday 

n Resource & Solution Center admission 

To receive the discounted rate, register and pay 

by May 1 using the registration form or online at 

iiav.com/ACINFO 

Mail registration to IIAV, 8600 Mayland Drive, 

Richmond, VA 23294 

Accommodations 

Hilton Virginia Beach Oceanfront 

3001 Atlantic Avenue, Virginia Beach, VA 23451 

Cool off in the Hilton Virginia Beach Oceanfront’s rooftop zero-edge pool 

or take a dip in the Atlantic Ocean. With a Superior Room renovation 

currently in progress you will be one of the first to experience a totally 

refreshed venue. 

Reservations 

Deadline for room reservations is Monday, June 3, 2019. After this 

deadline, rooms are available on a space and rate available basis. 

Reservations may be made online at iiav.com/ACinfo or by phone at 

(757) 213-3000. Please identify yourself as a member of IIAV 2019 Annual 

Convention in order to receive the block rate. Group code is IIA. Rates are 

$219–$259, Saturday through Tuesday, June 22–25, 2019. 

Recreation 

Visit Virginia Beach visitvirginiabeach.com 

Wake up early to spectacular panoramic views because you want to be 

the first to welcome the sun to earth. The roar of the surf echoes around 

you drowning out all other thoughts in your mind. Letting the sand 

squish between your toes and the cool waters wash it away as your skin 

becomes sun-kissed, this is where your mind will relax and the excitement 

of the 2019 IIAV Annual Conference & Exposition will begin. With endless 

possibilities at every twist and turn, Virginia Beach is a truly wonderful 

destination immersing yourself in every experience you set out to capture. 

A collection of moments are in store and like the magical touch of King 

Neptune you are transformed—Live the Life at Virginia Beach. 

Dress Code 

Be comfortable! All convention sessions are casual. Some restaurants 

may have a special dress code—please inquire when making 

reservations. Friday Reception/Dinner & Entertainment with a DJ is 

business casual. 

Special Events 

The Welcome Reception is on Sunday evening. The Resource & Solution 

Center (formerly the tradeshow) is Monday, with contests for the booth with 

the best “under the sea” theme and the child with the best “beach bum” 

costume. To close out the convention, enjoy music and the silent auction 

to support VAIA. 

Crowd Release 

By registering to attend and by your presence, you consent to be 

photographed, filmed, and/or otherwise recorded. Your registration 

constitutes your consent to such photography, filming, and/or recording 

and to any use, in any and all media throughout the universe in perpetuity, 

of your appearance, voice, and name for any purpose whatsoever in 

connection with this IIAV event. 

ConVENTION Sponsors 

(as of March 20, 2019) 

Diamond 

Platinum 

GOLD 

Silver 

BRONZE 

Sponsorship & Exhibitor 

Opportunities are Available 

Contact the Event Manager, Tami Guthrie, 

at acinfo@iiav.com 

We are the unrelenting advocates of independent 

insurance agents in Virginia—quality education, 

information, resources, legislative advocacy, and 

agency protection. 

Independent Insurance Agents of Virginia 

8600 Mayland Drive, Richmond, VA 23294 

(804) 747-9300 or (800) 288-4428 | iiav.com

ATTENDEE INFORMATION (please print) 

Licensed agents must register as such in order to receive available CE credits. 

Name 

Designation(s) 

Badge Name St. License # or NP # 

Position in Agency (check one) m Principal m Producer m Office Manager m Account Manager 

Agency/Company Name 

Business Address 

City/State/Zip 

Office Phone 

Email 

Spouse/Guest Badge Name (Not a licensed agent) 

Child’s Badge Name (under 18) 

Emergency Contact 

Leading 


2019 IIAV ConVENTION & Exposition 

June 23–25, 2019 | Hilton Virginia Beach Oceanfront 

FULL REGISTRATION 

Register online at iiav.com/acINFO or complete this form and email, fax, or mail to IIAV (see bottom of form). 

Cell Phone 

*Meal options below 

PAYMENT 

REGISTRATION (please check where appropriate) Member Member Non-Member Non-Member 

by 5/1 after 5/1 by 5/1 after 5/1 Quantity 

Full Registration (Agent, Company or Exhibitor) m $295 m $370 m $395 m $470 _______ 

Spouse/Guest (Not a Licensed Agent) m $150 m $225 m $175 m $250 _______ 

Young Agent (Under age 41) m $195 m $270 m $210 m $300 _______ 

First Time Agent Attendee m $195 m $270 m $210 m $300 _______ 

Additional Attendees with same Agency/Company/Exhibitor m $195 m $270 m $210 m $300 _______ 

*CHILDREN (under 18) additional each for meals m $60 Adult Meals Qty _______ m $40 Child Meals Qty _______ _______ 

Sunday, 8:00 pm ...............................................Welcome/Network Reception .............................................................................................................................................................How many attending? _______ 

Monday, 8:00 am ..............................................Breakfast & First Time Attendee Reception/Orientation ..............................................................................................How many attending? _______ 

Monday, 9:00 am ..............................................KEYNOTE: Creating Cultures of Excellence ..............................................................................................................................How many attending? _______ 

Monday, 10:15 am ..............................................Session: Creating a Millennial-Friendly Agency— 

..........................................................................................Tips for Attracting and Retaining Generation Y Agents ...............................................................................................How many attending? _______ 

Monday, 11:30 am ..............................................Session: Leadership 360 ............................................................................................................................................................................How many attending? _______ 

Monday, 3:00 pm..............................................Tradeshow: Your Resource & Solution Center ........................................................................................................................How many attending? _______ 

Tuesday, 9:00 am ............................................Session: The Five Secrets to An Unstoppable Memory ..................................................................................................How many attending? _______ 

Tuesday, 10:15 am ............................................Session: An Introduction to Sales Training ...............................................................................................................................How many attending? _______ 

Tuesday, 11:30 am ..............................................Session: When Mitigating Risk Meets A Disaster— 

..........................................................................................What are the Unintended Consequences? .............................................................................................................................How many attending? _______ 

Tuesday, 12:45 am.............................................Breakout Sessions (choose one) 

..........................................................................................Session: A Deeper Dive: When Mitigating Risk Meets Disaster— 

..........................................................................................A Case Study of Unintended Consequences .........................................................................................................................How many attending? _______ 

..........................................................................................Session: Cyber Exposure & Risk Mitigation ...............................................................................................................................How many attending? _______ 

Tuesday, 2:00 pm .............................................Fun on the Beach ...........................................................................................................................................................................................How many attending? _______ 

Tuesday, 7:00 pm .............................................Dinner / Awards / Entertainment / VAIA Silent Auction ................................................................................................How many attending? _______ 

Mail registration form with payment to IIAV, 8600 Mayland Drive, Richmond, VA 23294 

Email registration to TChester@iiav.com or fax to (804) 747-6557. 

Cancellation Policy: No refunds made after Friday, May 17, however, substitutions are accepted at any time. 

Refunds for cancellations made prior to May 17 will be charged a $25 processing fee. No refunds issued for no-shows. 

q Check payable to IIAV 

q MC q VISA q Discover q AmEx 

CC# 

Exp. Date 

Total $ 

Sec. Code 

Billing Address 

City, State, Zip 

Name on Card 

Signature

Leading 


2019 IIAV ConVENTION & Exposition 

June 23–25, 2019 | Hilton Virginia Beach Oceanfront 

A LA CARTE REGISTRATION 

Register online at iiav.com/acINFO or complete this form and email, fax, or mail to IIAV (see bottom of form). 

ATTENDEE INFORMATION (please print) 

Name 

Designation(s) 

Badge Name St. License # or NP # 

Position in Agency (check one) q Principal q Producer q Office Manager q CSR 

Agency/Company Name 

Business Address 

City/State/Zip 

Office Phone 

Cell Phone 

Email 

Spouse/Guest Badge Name (Not a licensed agent) 

Emergency Contact 

PAYMENT 

q Check payable to IIAV 

q MC q VISA q Discover q AmEx 

CC# 

Exp. Date Sec. Code 

Total $ 

Billing Address 

City, State, Zip 

Name on Card 

Signature 

REGISTRATION (please check where appropriate) Member Member Non-Member Non-Member 

by 5/1 after 5/1 by 5/1 after 5/1 Quantity 

Sunday, 8:00 pm Welcome/Network Reception....................................................... q $55 q $65 q $65 q $75 _______ 

Monday, 8:00 am Breakfast & First Time Attendee Reception/Orientation ............... q $30 q $40 q $40 q $50 _______ 

Monday, 9:00 am KEYNOTE: Creating Cultures of Excellence ................................... q $50 q $60 q $60 q $70 _______ 

Monday, 10:15 am Session: Creating a Millennial-Friendly Agency— 

Tips for Attracting and Retaining Generation Y Agents ................ q $50 q $60 q $60 q $70 _______ 

Monday, 11:30 am Session: Leadership 360 ................................................................ q $50 q $60 q $60 q $70 _______ 

Monday, 12:15 pm Fun on the Beach ......................................................................... q $0 q $0 q $0 q $0 _______ 

Monday, 3:00 pm Tradeshow: Your Resource & Solution Center................................ q $50 q $60 q $60 q $70 _______ 

Tuesday, 8:00 am Breakfast....................................................................................... q $30 q $40 q $40 q $50 _______ 

Tuesday, 9:00 am Session: The Five Secrets to An Unstoppable Memory .................. q $50 q $60 q $60 q $70 _______ 

Tuesday, 10:15 am Session: An Introduction to Sales Training .................................... q $50 q $60 q $60 q $70 _______ 

Tuesday, 11:30 am Session: When Mitigating Risk Meets A Disaster— 

What are the Unintended Consequences? ................................... q $50 q $60 q $60 q $70 _______ 

Tuesday, 12:45 pm Breakout Sessions (choose one) 

Session: A Deeper Dive: When Mitigating Risk Meets Disaster— 

A Case Study of Unintended Consequences ................................. q $50 q $60 q $60 q $70 _______ 

Session: Cyber Exposure & Risk Mitigation .................................... q $50 q $60 q $60 q $70 _______ 

Tuesday, 2:00 pm Fun on the Beach ......................................................................... q $0 q $0 q $0 q $0 _______ 

Tuesday, 7:00 pm Dinner / Awards / Entertainment / VAIA Silent Auction ................. q $80 q $90 q $90 q $100 _______ 

Mail registration form with payment to IIAV, 8600 Mayland Drive, Richmond, VA 23294 

Email registration to TChester@iiav.com or fax to (804) 747-6557. 

Cancellation Policy: No refunds made after Friday, May 17, however, substitutions are accepted at any time. 

Refunds for cancellations made prior to May 17 will be charged a $25 processing fee. No refunds issued for no-shows.

Prime Ins. 

1. 

Insurance House 

2. 

Titan Web Marketing 

3. 

Watney Insights Network 

4. 

Donegal Group 

5. 

Hanover Excess & Surplus 

6. 

Xpress-Pay 

7. 

Trusted Flood Brokerage 

8. 

Johnson & Johnson 

9. 

AFCO Credit Corp. 

10. 

Midwestern Ins. Alliance 

11. 

Zenith Insurance Co. 

12. 

Safeco/Liberty Mutual 

13. 

Applied Underwriters 

14. 

First Atlantic Restoration 

15. 

Leavitt Group 

16. 

Nationwide 

17. 

SolePro 

18. 

Iroquois Mid-Atlantic 

19. 

Harford Mutual Ins. 

20. 

Penn Lumbermens Mutual 

21. 

Selective Insurance Co. 

22. 

FFVA Mutual 

23. 

Sagesure 

24. 

Goodville Mutual 

25. 

Motorist Insurance Grp. 

26. 

Philadelphia Ins. Co. 

27. 

Mercury Insurance Grp. 

28. 

Updated 5/15/19 

Houston Int. Insurance Grp. 

29. 

Jackson Sumner & Assoc. 

30. 

Xanatek, Inc. 

31. 

Continental Underwriters 

32. 

Big "I" National Programs 

33. 

Orchid Insurance 

34. 

Employers Insurance Grp 

35. 

Landin, Inc. 

36. 

Narragansett Bay Ins Co. 

37. 

Northern Neck Insurance 

38. 

ICW Group 

39. 

TAPCO Underwriters 

40. 

EZ Lynx 

41. 

Berkshire Hathaway Guard 

42. 

BIIA 44. 

ServPro 

45. 

MAY 15 TO SAVE $50. 

FOR 2019 & 2020. 

(See contract for details.) 

Commonwealth Undwrt 

46. 

Utica First Ins. Company 

47. 

Mountain Empire Agency 

49. 

Stonewood Insurance 

50. 

Amerisafe 

51. 

Main St America Group 

52. 

Belfor Restoration 

53. 

Markel 54. 

Genesee General 

55. 

EVOLVE MGA 

56. 

Risk Placement Services 

58. 

Rider Insurance 

59. 

Imperial PFS* 

60. 

Rockingham In Co 

T1. 

Elite 

Commercial 

Assurant Flood Solutions 

T2. 

ePay Policy* 

T4. 

Hagerty 

T5. 

Acquity Insurance 

T6. 

Universal Property & Cas. 

T7. 

UGI T8. 

DRIVESMART Virginia 

T9. 

T10. 

T11. 

Booths: 6’Dx10’W Tables: 6’x2’ foyer table 

Exhibit space Includes: 

One (1) sign with the name of organization and booth ID number 

One (1) wastebasket 

Two (2) chairs 

One (1) 6’x2’ custom draped table 

The entire exhibit area is carpeted 

2 0 1 9 R e s o u r c e & S o l u t i o n s C e n t e r , J u n e 2 4 t h 

Any additional equipment, special lighting or decorations should be arranged through Exhibits, Inc., the official R&S Center decorator. 

RESERVE SPACE PRIOR TO 

SAVE $300 SIGN-UP FOR A BOOTH 

43. SE Personnel Leasing 

48. Triumph Com. Finance 

T3. VFSC/SwissRe 

57. Grange Insurance 

10 

X = Sold 

*IIAV Endorsed Vendor

WHY YOU NEED TO OFFER EXCESS 

UM/UIM TO EVERY CLIENT 

By April Shrewsbury, Big “I” Umbrella Program Manager 

We’ve all heard the stories. A family of ve is burdened with 

horric medical bills because of an accident caused by a drunk 

driver who couldn’t afford insurance due to his bad driving 

record. A child walking to school faces a lifeme of difculty 

aer being struck by a texng driver—a struggling college 

student with state minimum auto limits. A pair of rered 

sweethearts fall vicm to a hit-and-run driver. 

As an insurance agent, you can’t physically protect your clients 

from heartbreaking situaons like these…but they do rely on 

you to protect them nancially when tragedy strikes. This is 

where excess Uninsured/Underinsured Motorist Coverage 

enters the picture. 

MOST PEOPLE WOULD BUY IT IF THEY 

UNDERSTOOD IT 

How effecvely can you explain UM/UIM coverage to a client 

who doesn’t know much about insurance? In layman’s terms, 

UM/UIM coverage is insurance that pays for the client’s 

injuries from an accident caused by the owner or operator of 

an uninsured or underinsured vehicle. Excess UM/UIM from a 

personal umbrella policy pays aer the auto policy’s UM/UIM 

limits have been exhausted. 

It’s important for a client to understand that UM/UIM coverage 

comes into play when an insured is involved in an accident and 

the person who caused it either doesn’t have any insurance or 

doesn’t have enough insurance to pay for your client’s injuries. 

It would also come into play if they were the vicm of a 

hit-and-run (in a vehicle, on a bike, or as a pedestrian), leaving 

them with nobody’s insurance policy to collect against...making 

it an “uninsured” motorist claim. 

THE PREVALENCE OF UNINSURED AND UNDER- 

INSURED DRIVERS 

According to recent esmates by the Insurance Research 

Council (IRC), roughly 1 on 7 drivers is uninsured. Add to that 

the number of drivers who carry state minimum auto limits, 

and it’s enough to make a person want to stay home for good. 

Unfortunately, this should come as no surprise, given the type 

of TV commercials we see these days from some auto insurance 

companies. Too oen, the emphasis is on geng a cheap 

rate, and drivers are besieged with ads about that encourage 

them to buy “state minimum” auto limits in order to save 

money. There’s no denying that it can be a temptaon in a 

struggling economy. 

All the more reason to make sure your clients are protected 

from the drivers around them, with UM/UIM coverage on both 

their auto and personal umbrella policies. 

IT’S ABOUT THE COVERAGE, NOT THE COST 

There’s no way around adming that UM/UIM coverage can 

be expensive, and a tough sell if a client is trying to keep their 

premium down. One wise agent explains it to his personal 

umbrella clients this way. If you’re buying an umbrella so that 

you can cover the injuries of strangers, wouldn’t you want to 

do the same for your own family, instead of blindly relying on 

someone else to cover your injuries...someone who might not 

. 


have insurance at all, let alone enough insurance if you or your family 

members have serious injuries or need hospitalizaon? It certainly 

makes a lot of sense. 

When working up an auto or umbrella quote, do you merely ask “Do 

you want to add Uninsured/Underinsured Motorist Coverage”, and 

then wait for the simple “Yes” or a “No”? If so, try explaining what 

the coverage is rst, and THEN ask if they want it. That way, the focus 

is on the value of the coverage, as opposed to its cost. 

PROTECT YOURSELF FROM ‘FAILURE TO OFFER’ E&O 

CLAIMS 

If your client is injured by an uninsured or underinsured driver and 

doesn’t have basic or excess UM/UIM limits of their own, you can bet 

that they’ll be asking (quite possibly through an aorney) why you 

didn’t offer them this coverage. Protect your client…and protect 

yourself and your agency from a ‘failure to offer’ E&O claim by always 

explaining and offering UM/UIM coverage. Consider documenng a 

client’s refusal of this coverage as well. 

This applies not only to auto policies, but also to personal umbrella 

policies. Just as a client needs excess liability above their auto policy 

limits, they need excess UM/UIM coverage above their auto policy 

UM/UIM limits. While many home and auto carriers offer a personal 

umbrella, they may but not offer excess UM/UIM coverage. Always 

offer an umbrella that includes that coverage. 

Hopefully this arcle will be a help to you as you quote and discuss 

excess UM/UIM with your clients. Keep in mind that the Big “I” offers 

your agency access to two umbrella carriers, including our endorsed 

market through RLI. Below are some of the disncons between 

those two markets: 

Preferred Market with RLI 

A+ rated and admied naonwide 

Limits up to $5 million available 

Excess UM/UIM available naonwide 

Stand-alone coverage - no need to switch home or auto carriers 

New drivers accepted and no age limit on older drivers 

DUI/DWI permied 

Low maintenance – No need to report new exposures mid-term 

if required underlying limits are maintained. 

Simple, self-underwring applicaon 

E-signature and credit card payment opons 

Real Life Claim Scenario 

Mrs. Policyholder was on her way to work 

when she was rear-ended on the highway, 

causing her to run off the road and into a 

concrete barrier. She sustained mulple 

internal injuries, including a severely fractured 

ankle, which led to months of treatment and 

an infecon that required addional hospitalizaon 

and more surgery. Unable to work 

during her recovery, she lost over $100,000 in 

income while racking up medical bills of over 

$120,000. She was no longer able to walk long 

distances or enjoy many of her favorite 

acvies, impacng her life signicantly. 

It was soon discovered that the driver of the 

other vehicle had state minimum limits of only 

$10,000 per person/$20,000 per accident. 

Mrs. Policyholder was paid the full $10,000 

available, but the other driver had no other 

insurance and no assets. 

Mrs. Policyholder had UM/UIM limits of 

$250,000 per person/$500,000 per accident 

under her own auto policy, as well as $1M of 

UM/UIM coverage under her personal 

umbrella policy. She was able to recover the 

amount from her own insurors that she would 

have been entled to recover from the other 

driver, had he carried enough insurance. If she 

hadn’t purchased UM/UIM coverage, her 

payment would have been only the $10,000 

policy limit of the other driver. 

Marketing Tip 

If you nd claim scenarios to be an effecve 

markeng tool. visit www.iiaba.net/RLI to 

download a yer you can show your clients. 

Alternave Market with Anderson & Murison 

Wrien on A rated Scosdale paper 

Limits up to $10 million available 

Will consider high-prole personalies, such as athletes and 

entertainers 

Will consider risks with prior liability losses exceeding $25,000. 

Driver exclusion endorsement available 

To learn more about these products, visit www.iiaba.net/umbrella or 

www.bigimarkets.com. 

. 


MESSING UP 

ON THE JOB 

WITHOUT EVEN 

KNOWING IT 

19 WAYS TO DO IT 

By John Graham 

THERE’S EVERYTHING RIGHT ABOUT 

LOOKING OUT FOR YOURSELF 

AND YOUR CAREER. RIGHT NOW, 

WITH MORE JOBS THAN PEOPLE 

TO FILL THEM, IT’S EASIER 

THAN EVER. 

One month in mid-2018, job postings exceeded 

the number of unemployed by an eye-popping 

659,000. With this happening, it’s no surprise 

that 3.6 million workers voluntarily quit their 

jobs in the first seven months of 2018. This 2.4% quit rate 

was the highest since April 2001. 

No one can miss the message: more vacancies and not 

enough takers to fill them equals better opportunities and 

higher pay. 

But not so fast. All this may be true in some situations but 

not everywhere – and not forever. If you believe jobs are 

“temporary” and the best is yet to be, you can create an 

easy-to-spot trail of behaviors that can put a cap on your 

career. In this environment, here are some of the ways to 

mess up on the job without even knowing it: 

1. Take advantage of your team. To do this, make it 

clear from the get-go that you’re a “team player.” This 

is what everyone wants to hear today, so keep repeating 

it. Now that you’ve set the stage, make sure everyone 

knows you have too much on your plate to support the 

team. 

2. Cover up your mistakes. To make this work, act totally 

innocent. Rehearse your story so you can act shocked 

if someone calls you on an error. Never crack; never 

confess. Once you get it down pat, you’re ready for the 

next time – and the next. 

3. Always agree but don’t perform. When asked to do 

something, act interested and even excited, but never 

get around to it. After you’ve done this several times, 

the word will get around and you’ll be left alone. 

4. Position yourself as the exception. You’ve figured it 

out and thought it through. There are good reasons why 

what applies to everyone in your group doesn’t apply 

to you. Don’t bother telling others about it. They’ve 

figured it out on their own. 

5. Do only so much and nothing more. You’re not going 

to be around long; you’re already looking for your next 

gig. So, why knock yourself out? Just ignore the pressure 

to do more. Act busy, but take it easy on yourself. 

6. Make it known that you’re meant for better things. 

Sure, you do your work, but you also talk about how 

great it was at your last job or how good your friends 

have it where they work. 

7. Disappear when there’s a crisis. Coming in early or 

staying late when it’s needed doesn’t work for you. 

Always have a reason ready why you can’t alter your 

regular schedule time or, better yet, even come in late 

or leave early. 

8. Pass the blame around. The directions were incorrect. 

Someone gave you inaccurate information, misled you, 

waited to the last minute to notify you, or had it in for you 

– on and on it goes. There’s plenty of blame to go around. 

9. See yourself as a silo of one. You’re an island, entire 

of yourself, to paraphrase John Donne. “It’s blindness, 

which causes people to do stupid things,” states Gillian 

Tett in The Silo Effect. 

10. Behave inconsistently. This is the most useful on-thejob 

strategy for hiding in plain sight. One time you’re 

up and the next time you’re down. Friendly, and then 

aloof. You’re unpredictable; no one knows how you’re 

going to react. It doesn’t take long before they stop 

counting on you. 


We cover one person... or an Alliance Group! 

Your agency E&O coverage needs to match your type of operation. Swiss Re Corporate Solutions and the 

Big "I" have a program that will fit! 

Are you a staff of 1? Or 100? 

Our Big "I" endorsed E&O program offers broad protection from "one-man" shops up to those with over 

100 staff. We are stable, established, competitive, and have the top claims team available. 

Part of an Alliance/Cluster group? Our program offers: 

• Construction that allows for group pricing and underwriting, yet provides each affiliated agency 

certificate holder the ability to choose individual limits and deductibles (no sharing of limits). 

• Uniformity of coverage. The master agency and each affiliated agency is covered by broad 

coverage form, underwritten by a long-standing E&O carrier with unmatched credentials. 

• All parties are represented by claim counsel with long-standing experience in handling E&O claims. 

No finger-pointing at claim time or arguments among carriers about circumstances or which policy 

should pay. 

Let us find an E&O program that gives you peace of mind! Contact Linda Loving at LLoving@iiav.com to 

learn more or call 800-288-4428 / 804-747-9300. 

Coverage is subject to the terms, conditions, and exclusions of the actual policy, which forms the contract between the 

insured and the insurance company. Available coverages, credits, and options may vary by state. Insurance products 

underwritten by Westport Insurance Corporation, Overland Park, Kansas, a member of Swiss Re Corporate Solutions.

VACANT 

PROPERTY? 

Full pocket with 

17.5% commission. 

Fill your clients’ vacant dwelling and commercial 

property needs while filling your pockets, too. 

Contact Agents Insurance Markets for coverage 

options, and get 17.5% commission on your 

clients’ new policy. No matter the type of vacant 

property your client owns, call today and let us help 

find the right coverage they need. 

• Optional carriers available to review with 

at least an AM Best rating of A XV or higher 

• 3, 6, or 12-month policies available 

• GL rating based on square footage 

of structure(s) 

• Higher deductible options available 

with applicable credits 

WE AIM TO GET YOU COVERED. 

aim-ins.com 

Contact us (804) 285-4930 • (800) 627-0505 • f (804) 285-4945 

Send submissions to: submissions@aim-ins.com 

11. They can’t do without you. You’ve been in the job for 

a while and you know the ropes, so you’re feeling good 

about yourself. You talk more openly about coworkers 

and play a little loose with the rules. While you believe 

your job is secure, others see a train wreck coming. 

12. Get upset if you’re not getting a regular dose of 

praise. In fact, you’ve come to expect it. It’s almost 

an addiction. When you don’t it, you’re quick to 

complain that you’re not appreciated. 

13. Ask for help but never offer it. You can’t understand 

why your coworkers are reluctant to help you. It isn’t 

because they don’t like you. With you, helping is a 

one-way street. 

14. Make it a point to play it safe. Whether it’s because 

you want to avoid criticism or you just can’t be 

bothered, never take a chance and step outside of 

your comfort zone. Everyone can see what you do, 

but not what you’re capable of doing. 

15. The rules don’t apply to you. When the rules benefit 

you, you make sure everyone knows about it. When 

they don’t, you come up with way to make it clear that 

you are the exception. 

16. Overestimate your capabilities. Hey, you’re not 

alone on this one. Most of us tend to exaggerate our 

skills, capabilities, and our performance, but some 

do it more than others and they’re surprised when 

they’re no longer needed. 

17. Always be ready to come up with a complaint. 

It’s one thing after another. We can count on you to 

make a big deal out of almost anything. Then, when 

something comes along that may be worthy of a 

complaint, we ignore you. 

18. Don’t learn new skills or expand your knowledge 

base. You don’t seem to recognize that no one arrives 

on a job perfectly prepared. It takes time to learn the 

ropes and then continue learning to become and 

remain highly productive. 

19. Bluff your way. If you haven’t found a way to 

successfully mess up on the job, there’s always the 

other option: faking it. Claim to know something, you 

don’t. Make up a story about an accomplishment or 

even awards or commendations. In other words, bluff 

your way. It will work – until it doesn’t. 

There may be other ways to mess up on the job that will 

jeopardize your future, but these are a good start. 

John Graham of GrahamComm is a marketing and 

sales strategy consultant and business writer. He is the 

creator of “Magnet Marketing,” and publishes a free 

monthly eBulletin, “No Nonsense Marketing & Sales 

Ideas.” Contact him at jgraham@grahamcomm.com or 

johnrgraham.com. 


3 ways to increase sales 

while decreasing E&O claims 

By Caryn Mahoney 

HOW OFTEN DO YOU HEAR ABOUT A 

CUSTOMER SUING THEIR CAR SALESMAN 

FOR NOT SELLING THEM A NEW CAR, OR 

FOR SELLING THEM A CAR THAT LACKED 

ALL THE BELLS AND WHISTLES? 

Selling and servicing insurance is not like selling and 

servicing other products. Here are three ways to avoid 

errors & omissions claims through smart sales practices: 

1) Offer all coverages that would commonly apply to 

the exposure, and that your agency normally handles. 

Do this even if you know the client won’t buy all the 

recommended coverages, and even if you think you won’t 

be able to offer a price your client will find attractive. 

Why? After a loss, it is not unusual for a policyholder to 

testify that they don’t recall being offered the coverage 

in question—and they’re being honest! They really don’t 

remember that conversation years ago. What they know 

for certain, though, is that they would have purchased that 

coverage if only it had been offered. 

Consider using exposure checklists and questionnaires. 

You can find sample checklists by logging in to the E&O 

Happens website (iiaba.net/eohappens) with your Big “I” 

credentials. 

Always have your client initial or sign off on offered 

coverages, and then make a note in your agency system. 

Or, better yet, send a letter con-firming the client’s rejection 

of any important coverages. And if you don’t normally 

handle a certain type of coverage, suggest your client go 

to another agency for that coverage and document that in 

writing. 

2) Offer higher limits, but don’t take on the responsibility 

of evaluating the sufficiency of those limits. Make it 

clear to your client that you are not choosing the limits, 

because they are in the best position to know the value of 

their property and exposures. If you’re still uncertain about 

the quality of your information, offer several limit options, 

erring on the high side with at least one. 

If applicable, tell your client that a co-insurance penalty 

could apply if they do not have sufficient limits, and always 

inform your client that they have the option to purchase 

higher limits. 

3) Review the application, quote, proposal and policy to 

find discrepancies. It is best to have your client complete 

the entire application. If that is not practical, your standard 

procedure should involve asking every question in the 

application and having your client initial each page and/or 

important items, then sign and date it. 

If you have your client’s prior policy, identify and address 

any differences. Make sure the coverages requested in the 

application match the coverages quoted in the proposal 

and issued in the policy. If you find any differences, address 

them immediately with the carrier, any upstream broker 

and your client. 

These practices will all require extra effort on your part— 

but so do E&O claims. 

Caryn Mahoney is an assistant vice president, claims 

specialist with Swiss Re Corporate Solutions and works out 

of the Chicago office. Insurance products underwritten by 

Westport Insurance Corporation, Overland Park, Kansas, a 

member of Swiss Re. 

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. 





permission or further information, contact Agency E&O 

Risk Manager, 127 South Peyton Street, Alexandria, VA 

22314 or email at info@iiaba.net. 


HIGH ROLLERS 

SERVING THE HIGH NET WORTH INSURANCE CUSTOMER 

Dealing with high net worth customers 

is not the same as dealing with your 

other customers. If your agency is 

fortunate enough to have such a client, 

you will have to pay special attention to 

them. 

While it may seem counterintuitive, 

affluent customers are often frugal 

when purchasing insurance. Often 

these insureds will have high auto 

limits coupled with umbrella coverage 

to protect their substantial assets from 

claimants anxious to share in that 

wealth; but because it costs extra, they 

won’t necessarily want the umbrella 

coverage to include UM/UIM coverage 

... until they are badly injured in an 

accident, at which time they will argue 

that they would have gladly paid the 

premium had it been offered to them. 

Some high net worth customers are 

asset rich through inheritance, but cash 

poor. When you have such a customer, 

insist on appraisals and document that 

the customer refuses to insure to value. 

Consider the case of an affluent client 

who owns a family mansion built in 

the 1850s, or more recent construction 

with “high end finishes.” The customer 

directs his obliging agent to insure the 

home based on what it would cost to 

build a new, ‘generic’ 10,000 square 

foot home. During a thunderstorm 

a large tree is blown over onto the 

home, damaging the roof, 3rd story 

framing and causing water 

damage through all three floors. 

The carrier will pay the loss, but 

will not replace the roof with the 

original hand-hewn slates. Nor will the 

150 year-old hard wood floors or 12 

inch crown moldings be restored to 

their original condition. Your client’s 

inevitable response? Unacceptable! 

The problem is, simply putting the 

square footage of an old or otherwise 

unique structure into a calculator will 

not give you an adequate assessment 

of coverage needed. Go on record 

explaining why an appraisal is required 

to put an accurate value on the 

coverage needed not just to ‘replace,’ 

but to restore the home to its former 

glory. 

Affluent customers can also be very 

hard to reach. An agent will usually 

be dealing with an assistant, and 

will sometimes be told to sign the 

customer’s name on applications 

for him. Cutting corners due to the 

customer’s inaccessibility may seem 

like a practical necessity during the 

application process, but what if there 

is a loss? It will insulate the client, 

setting you up for an E&O claim. For 

that reason, be sure to deal directly 

with your client or, at the very least, 

obtain documentation from the client 

expressly authorizing a third person to 

make these decisions. And whether he 

is rich, poor or somewhere in between, 

never sign an application for your 

customer. 

As part of their mobile lifestyle, a great 

many affluent clients own multiple 

homes. They can only be in one place at 

a time, so their various residences often 

sit empty for weeks or months. Regular 

homeowner policies exclude coverage 

for certain exposures, e.g., water, 

freezing or mold damage, if the home 

sits vacant for a specified period of 

time, which is something the customer 

needs to understand. If you are placing 

multiple homeowner’s policies for a 

high net worth client there are carriers 

who have policies well-suited to these 

well-to-do insureds. 

Finally, moneyed clients often have 

extravagant toys and exotic pets. 

Insist on visiting the home and any 

other properties they own. Look for 

things like a commercial water slide at 

the residence, pet tigers, yachts and 

planes. We have seen claims on all of 

these items, which were overlooked by 

the agent when placing coverage for 

his wealthy insured. 

To avoid these problems with affluent 

clients you should review their 

coverages annually, because they have 

the ability to make major changes to 

their insurance needs – purchases, 

sales and renovations -- more often 

than other customers. You are also 

likely to place coverage for a well-off 

customer that you have never placed 

before. Be prepared to consult with 

an expert or enlist the help of a broker 

when you first place the coverage to 

make sure you get it right. 

Wealthy customers can be a terrific 

source of business, but you need to 

pay special attention to them 

for their sake and yours. Their 

losses are going to be outsized, 

so your E&O exposure will be, too. 

It’s even more important than usual 

to document everything you offer to 

your high net worth client because, in 

the event of an un- or under-insured 

loss, they can afford the best lawyers 

money can buy. To make matters 

worse, knowing that they can afford to 

lose, affluent litigants are more likely 


to ignore the cost of litigation and roll the dice simply to 

make a point. 

For such unconventional clients, you would do well to 

heed unconventional wisdom: the bigger they are, the 

harder you fall. 

Did you know Big “I” Markets has partnered with Chubb & 

AIG to place affluent coverage exposures? Please contact 

Nancy Doherty (703-706-5389), Aysha Jordan (703-706-5382) 

or Chrystal Washington (703-706-5368) for more information. 

Jim Redeker is vice president and claims manager at Swiss 

Re Corporate Solutions and works out of the office in 

Kansas City, Missouri. Insurance products underwritten by 

Westport Insurance Corporation, Kansas City, Missouri, a 

member of Swiss Re Corporate Solutions. 

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. 

More than 

an account. 

A relationship. 

More than a policy. A promise. 

At FCCI, we’ve been working with select 

independent agents to insure businesses for 

more than 60 years. Your clients are more 

than an account to us. We’ll work with you 

so they can face the future with confidence. 

Insurance 

Premium 

Finance 

We are here for you, 

like you are for your clients. 

a division of TBK Bank, SSB 

www.triumphcf.com 

Paul Mezzina 

Sales Executive 

844-292-9090 

special program offered for IIAV members 

www.fcci-group.com 800-226-3224 

PROPERTY I CASUALTY I SURETY I RISK MANAGEMENT I SECTOR EXPERTISE 


2019 IIAV EDUCATION 

WEBINARS 

June 12 How to Manage Risk in Affluent Homes | $30/$65 9:00AM - 11:00AM 2 P&C 

June 17 Commercial Auto - The Hired, Borrowed Auto Coverage Confusion | $15/$45 9:00AM - 10:00AM 1 P&C 

June 18 Rental Car Coverage & the PAP - So Much Exposure So Little Coverage | $15/$45 9:00AM - 10:00AM 1 P&C 

June 23-24 E&O Risk Management: Commercial Liability Coverage Gaps 9:00AM - 12:00PM 6 OGI 

and to Fill Them, Part 1 & 2 | $105/$150 

July 31 Knock It Out: More Than Politics: Your Agency & The 2019 VA General Assembly | $30/$65 9:00AM - 11:00AM 2 Ethics 

July 31 Knock It Out: 9 Commandments of Outstanding Carrier Relationships | $30/$65 11:15AM - 1:15PM 2 OGI 

August 1 Knock It Out: The Sharing Economy: Opportunity or Threat? | $15/$45 12:15PM - 1:15PM 1 Ethics 

August 6-7 ACSR Mod 1: Homeowners Insurance Part 1 & 2 $105/$150 9:00AM - 12:00PM 6 P&C 

August 14 Blanket Insurance Coverage vs. Specific Coverage | $15/$45 9:00AM - 10:00AM 1 OGI 

September 4 Ethics - Not What You Think and More Than You Thought! | $15/$45 9:00AM - 10:00AM 1 Ethics 

September 18-19 E&O Risk Management: Meeting the Challenge of Change, Part 1 & 2 | $105/$150 9:00AM - 12:00PM 

6 OGI 

IN-PERSON 

June 11 AAI 82B: Other Commercial Insurance $175/$240 8:30AM - 5:00PM IIAV* 8 P&C 

June 11 CRIS: Workers Compensation for Contractors | $150/$210 8:30AM - 5:00PM IIAV 8 P&C 

June 12 E&O Risk Management: Meeting the Challenge of Change | $105/$150 9:00AM - 4:00PM IIAV 6 OGI 

July 8-11 Pre-Licensing - Property & Casualty | $300 8:30AM - 4:30PM IIAV Non-CE 

July 25 The Honorable Thing To Do | $45/$75 9:00AM - 12:00PM IIAV 3 Ethics 

August 5-8 Pre-Licensing - Property & Casualty | $300 8:30AM - 4:30PM IIAV Non-CE 

August 14 E&O Risk Management: Roadmap to Homeowners Insurance | $125/$175 8:30AM - 4:30PM IIAV 7 OGI 

August 20 ACSR Mod 6: Commercial Property | $105/150 9:00AM - 4:00PM IIAV 6 P&C 

August 28 How Green is My Risk? | $45/$75 9:00AM - 12:00PM IIAV 3 P&C 

September 9-12 Pre-Licensing - Property & Casualty | $300 8:30AM - 4:30PM IIAV Non-CE 

September 10 Flood Insurance Basics - FEMA Approved | $45/$75 9:00AM - 12:00PM IIAV 3 Flood 

September 18 AAI 82C - Specialized Insurance & Bonds | $175/$240 8:30AM - 5:00PM IIAV 8 OGI 

September 24 CRIS: Property Risk for Contractors | $150/$210 5:00AM - 8:30AM IIAV 8 P&C 

September 24 ACSR Mod 2: Personal Automobile Insurance | $105/$150 9:00AM - 4:00PM IIAV 6 P&C 

September 25 Knock It Out: The Sharing Economy: Opportunity or Threat? | $15/$45 1:00AM - 2:00PM IIAV 1 Ethics 

September 25 Knock It Out: More Than Politics: Your Agency & The 2019 VA General Assembly | $30/$65 8:30AM - 10:30AM IIAV 2 Ethics 

September 25 Knock It Out: 9 Commandments of Outstanding Carrier Relationships | $30/$65 10:30AM - 12:30PM IIAV 2 OGI 

* 8600 Maryland Drive, Richmond, VA 23294 


There Is No 

Comparison 

We provide MORE of 

what it takes to succeed as an 

independent agency, delivering 

MORE revenue and value. 

ACCESS TO 

COMPANIES 

LOCAL & 

NATIONAL 

INCENTIVES 

BUSINESS 

INSURANCE 

RESOURCES 

AGENCY 

DEVELOPMENT 

MARKETING 

ASSISTANCE 

In Western VA 

888.371.6879 

www.msaanetwork.com 

In Central & Southeast VA 

910.478.3311 

www.siaofva.com 

In Northern VA / DC 

443.692.4000 

www.pinsiaa.com 

In North Central VA 

423.782.2428 

www.meaa4u.com

Expect big things in workers’ compensation. Most classes approved, nationwide. It pays to get a quote from Applied. ® 

For information call (877) 234-4450 or visit auw.com/us. Follow us at bigdoghq.com. 

©2019 Applied Underwriters, Inc., a Berkshire Hathaway company. Rated A+ (Superior) by A.M. Best. 

Insurance plans protected U.S. Patent No. 7,908,157.

The Big I Virginia Summer 2019

Create successful ePaper yourself

Delete template?

Save as template?