The Big I Virginia Summer 2020

SUMMER 2020
THE BIG
V I R G I N I A
CYBER SECURITY
a publication of the Independent Insurance Agents of VIRGINIA

Whether it’s the voice in your head
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SUMMER 2020
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 – Dennis Winfree
8 Message from the State National Director – Michael Funkhouser
10 Message from the President and CEO – Robert N. Bradshaw Jr.
12 We Are Here for You – IIAV Resources
14 A Question of Value: What Would You Want to Know about the
Impact of the COVID-19 Pandemic on Your Agency?
16 Staff Profile: Getting to Know Bonnie Warren, ACSR, CPIW, DAE,
RPLU, Senior Insurance Account Executive
18 Industry Profile: Jackson, Sumner & Associates
19 Thank You 2020 Partners
21 5 Self-Deceptions that Hold Us Back
23 New Date: IIAV Convention and Expo Oct. 11-14, 2020
26 Cyber: It’s Not Just for the Big Guys
28 IIAV Cyber Courses
29 The New Normal: 4 Perennial Cyber Threats
30 Top 5 Cyber Liability Insurance Concerns for Agents
32 What Your Employees Do While Not at Work
34 Pics & Posts
THANK YOU ADVERTISERS
11 Allstar Financial Group
AllstarFG.com
15 Amerisafe
amerisafe.com
36 Applied Underwriters
auw.com/us
13 Berkshire Hathaway GUARD Ins
guard.com
27 Bloss & Dillard Insurance
Managers
bloss-dillard.com
3 Builders Mutual Insurance
BuildersMutual.com
6 Genesee Insurance
geneseeins.com
7 Harford Mutual
HarfordMutual.com
5 Iroquois Group
iroquoisgroup.com
2 Jackson Sumner &
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
17 JGS Insurance/Preferred
Property Program
ppp-quotes.com
9 Penn National
PennNationalInsurance.com
35 SIAA
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
Rebecca Arnold
Member Services Assistant
rarnold@iiav.com
Donald W. Bragg,
CPCU, CIC, CPIA, MBA
Director of Membership
& Marketing
dbragg@iiav.com
Melanie DeCola
Insurance Account Executive
mdecola@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 2020

Chairman of the Board
Dennis Winfree
dennis.winfree@verizon.net
RESET YOUR CALENDARS:
IIAV CONVENTION POSTPONED UNTIL OCTOBER
Dear IIAV Member Family,
First and foremost, we hope
that you and those close to
you are healthy and safe. We know
this has been a very challenging time
for you in all aspects of life and the
IIAV team and leadership are here to
support you in any way that we can.
You may have heard about the IIAV
Convention dates changing, since
the Executive Order extending the
stay-at-home guidelines through
June 10. When we selected our
Convention theme, we had no
idea how appropriate it was. We
are all certainly Navigating the
Future in unprecedented ways.
Given this information, we feel that
postponing the convention is the
right thing to do. While nothing
may sound more appealing than
a few glorious days at the beach,
we feel that asking you to leave
your team and your clients for
even a short time is not the right
answer, nor is it helpful to you.
None the least of which is the
question of when and how to make
the decision to attend in the first
place.
However, we want you to know
that those glorious days at the
beach are coming and we plan to
celebrate the end of a trying time
with you as soon as we can. Please
mark your calendars for October
11-14, 2020. We are indeed
fortunate that the new Virginia
Beach Marriott Oceanfront
has these dates available to
accommodate us. The IIAV team
6 THE BIG VIRGINIA SUMMER 2020
is working closely with the hotel,
our speakers, and our vendors and
we assure you that all parties are
committed to bringing you the best
possible experience. While it won’t
be as soon as we would like, we have
an amazing event planned with the
opportunities to connect that we’re
all missing so dearly right now.
In the meantime, please stay safe
and healthy and know that the IIAV
team remains an extension of your
own. I am proud to be a part of this
family of professionals who are so
committed to the critical work that
we all do.
Sincerely,
Dennis Winfree
IIAV Chairman of the Board
PS … Don’t forget to utilize the
COVID-19 Resource Center on
the IIAV website. We’ve tried to
respond to your questions with the
information directly related to you
and your agency.

INSURING OPPORTUNITY THROUGH
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

STATE NATIONAL DIRECTOR
MICHAEL F.
FUNKHOUSER
mikehm@shentel.net
IIAV AND EVOLVE: YOUR SOLUTION FOR CYBER LIABILITY
One can hardly turn on the television or pick up a
newspaper without seeing another major story
about the latest data breach. While headlines are
grabbed by large corporate brand names, it is reported
that more than half of all data breaches involve companies
with less than 500 employees.
• 60% of small to medium-sized businesses go out of
business within 6 months of having a cyber attack,
according to the National Cyber Security Alliance.
• In the retail sector, the estimated cost of loss PER
RECORD is $148. For the Healthcare sector, $408 PER
RECORD.
• One of the worst parts of data breach is the loss of
reputation. 78% of consumers would take their business
elsewhere if directly affected by a data breach, according
to the International Data Corporation. Businesses lose
customers directly involved, and prospects are scared
away.
• Sometimes it’s a lost or stolen smart phone or laptop,
other times it is phishing or hacking. The most common
is accidental, usually through a misdirected email or fax.
In early 2018, a hacker stole the login credentials of an
employee of a title company. Over the next two days,
the hacker convinced a client of the title company to
wire transfer $350,000.
• Phishing and hacking are usually far more costly. If
you have customer information stored on any kind of
computer medium – whether it be locally stored or in the
cloud – you are at risk for, and liable for, a data breach. If
your business takes credit cards, you are also at risk.
Fortunately, IIAV is here to help. IIAV has partnered with
EVOLVE Cyber Insurance Services to offer you and your
clients affordable data breach protection.
The product itself is second to none. IIAV extensively
reviewed the cyber marketplace before endorsing EVOLVE.
The policy contains 1st and 3rd party coverage.
1st party coverages include Cyber Incident Response
Costs, Cyber Crime, and System Damage and Business
Interruption. 1st Party Coverages are provided for each
and every claim. The insured will not be restricted by a
policy aggregate, even if the insured experiences multiple
incidents in the same policy period.
3rd party coverages include Network Security & Privacy
Liability, and Media Liability. 3rd party claims are subject to
an aggregate limit of liability.
The quoting process is a simple one page application.
Other than typical business information (business name,
address, contact name, phone, etc), the only questions
are “Description of Business Activities” and “Last Year’s
Revenue.” Turnaround for the quote is generally under 24
hours.
EVOLVE’s underwriters are very accessible, extremely
enthusiastic, and eager to help you navigate Cyber’s
complexities. They are able to explain the concepts and
coverage in layman’s terms, in a way that will help you
illustrate the many complex risks and appropriate coverage
to your client.
For more information on the EVOLVE product, please contact
Bonnie Warren ( bwarren@IIAV.com) at the IIAV office.
8 THE BIG VIRGINIA SUMMER 2020

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.

PRESIDENT & CEO
ROBERT N.
BRADSHAW, JR., MAM
rbradshaw@iiav.com
IIAV’S COVID-19 WEBSITE DESIGNED TO
ANSWER YOUR QUESTIONS
It’s a brave new world
As I write this column, the IIAV staff has been working
from our homes for almost a month now. It’s certainly
a new learning experience for all of us and I trust that we
have been able to respond to your needs and questions.
I have to admit, I wasn’t exactly sure how this was all
going to work out and what the time working would be
like while being at home. My wife – who generally works
from home – complains sometimes that while she’s home,
some people think there is no problem just calling to talk
and catch up.
I will say that has not been my experience and I would say
that from my perspective it has been like drinking from a
firehose turned on at full blast. A real awakening was on a
Friday when the governor was holding a press conference
talking about Executive Order 55 and before the press
conference was even over, members were calling asking
if we were still classified as essential businesses.
I believe that has been the experience of all of our staff
and likely as a result of our delineating who was going to
cover what calls from our membership. Functionally every
staff member had/has a critical responsibility to ensure
that our members receive the support and assistance
they need … and quickly.
Each day brings on almost a different topic as the
COVID-19 crisis progresses: Are we an essential business,
what about coverage for employees who deliver food,
how is Work Comp going to be handled, how do I
handle BI claims, how do we organize our work-fromhome
policies/technology, commercial property vacancy
concerns, how are companies responding to decline
in risk, what about proposed legislation in New Jersey
(Massachusetts, Louisiana, etc.)? And that’s precisely
how we built out our COVID-19 website. We figured if
someone asked the question, others probably want to
know as well. So, we have categorized the questions/
answers to be subject specific:
10 THE BIG VIRGINIA SUMMER 2020

• Insurance/Specific Issues
• Legislation/Government – Federal, State and BOI
• Agency Operations/HR
• Trusted Sources (you have to admit … there’s a lot
of garbage out on the web)
• SBA Loans
• IIAV Staff Listing – for easy contact with us
We’ve received calls from large agencies and small
agencies and representatives from top to bottom.
We’ve been able to assist members from what’s true
and what’s not. Even today I received a distressed call
from an agent concerned about legislation reported as
passed with significant implications….only to ally his
fears that the legislation only resulted in a study and not
an actual proposal with significant implications.
I’ve looked at a fair number of websites and feel pretty
comfortable that the IIAV website provides the very
best of information you need to get through this storm
that’s specific to Virginia agents. And if it doesn’t, your
most valuable resource of your membership in the
Independent Insurance Agents of Virginia is only a
phone call or email away ... and that’s your professional
IIAV staff. #IIAVHELPSAGENTS
Bob Bradshaw, President & CEO
“I cannot say
enough good things
about the IIAV and
the benefits it
has provided our
agency.”
During the COVID-19 shutdown, our commercial auto clients that
were placed through the state assigned risk program were in a
difficult situation. The assigning carrier required that in order for
vehicles to be removed from an active policy, tags needed to be
turned in to the DMV. However, with the DMV being closed, it put
the clients in the difficult situation with very little recourse. Their
businesses were experiencing substantial decreases in trips and
revenue, but their insurance premiums remained constant.
After discussing this with Bob and Joe at the IIAV, they were able
to work with the BOI, who in turn worked with the assigning carrier
to put a premium relief program into place. This undoubtedly will
help keep these business afloat during this difficult time and it
would not have happened without the help of the IIAV.”
Stewart Felvey
Sr. Producer
Hilb Group of VA
SUMMER 2020 THE BIG VIRGINIA 11

WE
ARE
HERE
FOR
YOU
You are in the business of helping clients find
the right insurance coverage for their needs.
We are in the business of helping you. The
current environment for a lot of businesses has
been leveled but we have stepped up to help
YOU: Run your businesses, assist your clients,
and take care of your employees. We must
continue to rely on each other to support the
insurance industry and your insureds. IIAV will
continue doing the following to support and be
a resource to you.
1IIAV.com – COVID-19 Resource Page Where
you will find up-to-date information pertaining
directly to you, independent agents, your business,
clients, and employees. This page has information that you
will not find on the six o’clock news. There are insurancespecific
resources, legislative/regulatory resources,
Agency Operations/HR resources, and a dedicated tab
to SBA Loans and the PPP. Updated almost hourly, we are
adding webinars, fact sheets, company announcements,
tips, and government notices.
2IIAV Connects A conversation series featuring
people, ideas, and solutions. These conversations
are taking place virtually, via Zoom. We are
connecting agents, their peers, and experts to discuss
ideas and help find solutions as we are all experiencing the
12 THE BIG VIRGINIA SUMMER 2020

same challenges, questions, uncertainties, and changes
in this global health crisis. We want you to remember that
you are not alone. During these sessions, we hope that
you will take the opportunity to talk with other agents.
Our first conversation was with Dave Tralka, President
& CEO of InsurBanc. Other topics included: “How to
Manage Remote Teams,” “A Conversation With the
Commissioner,” “Awkward but Essential – How to sell in
a Highly Complex Time,” and “Reopening Your Doors –
What You Need to Know Before Taking This Step.”
If you haven’t joined us yet, don’t miss the next
conversation, happening every Wednesday. Click on the
IIAV Connects tab on the COVID-19 Resource page to
watch past broadcasts and register for the next one!
3Your Direct Resource – the IIAV staff
You have questions and we are here to answer
them. You have sent us many, many emails and
called us many times over the past several weeks asking
questions related to your business, your clients, and your
employees. We are here to research those questions
that you just simply need answers to – and quickly. As
an extension of your team, we can provide answers to
technical questions, answers to recent executive orders
and regulations and how they will affect you, and so much
more. Please reach out with any questions you may have
and we will find the right people to answer them.
With the help of national The Big “I” office, we are
making sure you are kept in mind as Congress makes
policies and proposals that will best help you maintain
liquidity and, ultimately, solvency during these turbulent
economic times.
During a recent press conference, President Trump stated
that business interruption insurance should be used for
business claims associated to the COVID-19 pandemic.
The Big “I” contacted the administration and made a
coordinated response with the heads of government
affairs for insurance company trade associations. IIAV
has drafted an Op-Ed: Business interruption insurance
claim gives Virginia’s small businesses false hope to be
sent to the Virginian-Pilot and other media across the
state. All that said, we are working for you and sending
out messaging to alleviate the stress of this issue in the
Commonwealth.
We thank you for being a part of the IIAV family and for
your continued support of our organization as we work
together to support this great industry and our clients.
Dennis Winfree
IIAV Chairman of the Board
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SUMMER 2020 THE BIG VIRGINIA 13

A QUESTION OF VALUE
A NEW
CHAPTER
David J. Dillon
John Horace could not believe how quickly his
business focus had changed. Sixty days ago, he
had been prompted by an open house event
in his neighborhood to think of his agency business as
a prospective buyer would. Now, with the economic
uncertainty related to the global COVID-19 pandemic,
John was required to write a new chapter in his agency’s
success and value story.
John understood that the value of his agency would
ultimately be a function of cash flow and risk. The qualitative
impact of the pandemic would be well documented, but
years from now, the quantitative details would likely be
more difficult to remember. These details will be important
to prospective buyers as they evaluate the risk involved in
investing in the agency in the future.
John had never kept a journal, but to tell the story of
the pandemic’s impact, he knew he needed to start
documenting the quantitative details of how the economic
challenges related to the pandemic impacted the agency.
So that he could tell the success and value story of the
agency later, John started his diary of 2020 – before, during
and after the pandemic.
New questions to consider
1. Think like a potential buyer: What would you want to know
about the impact of the COVID-19 pandemic on the agency?
What would you want
to know about the
impact of the COVID-19
pandemic on YOUR
agency?
2. How will your success and value story in 2020 compare to
the industry and to best practices agencies?
3. What information do you need to adequately answer the
question: How did the agency fare during the COVID-19
economic crisis?
4. How will the 2020 chapter of your agency success and value
story affect due diligence and the agency transition process?
5. How will agency operations change when the “all clear”
is given and we enter the new normal?
Action items
1. Keep a log of the dates and details of the impacts
related to the COVID-19 pandemic on agency financials.
Your numbers will tell part of the story. The details and
records you maintain now will position you to tell the
story behind the numbers.
2. Continue to log the financial impacts after the “all clear”
is given, including revenue, expenses, partners, clients
and prospects, partnerships and others.
David Dillon is a licensed P&C agent in 25 states and an IIAV
associate member as owner of Watney Insights Network,
Inc. His “why” is to collaborate with successful agency
professionals to solve big, meaty challenges, so that together
they “raise their game” to accomplish meaningful results for
success and fulfillment. His contact information is ddillon@
WatneyInsights.com, 703.648.0584 (O) and 703.785.9440 (M).
14 THE BIG VIRGINIA SUMMER 2020

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POLICYHOLDER RETENTION RATE
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© 2020 AMERISAFE, Inc. AMERISAFE and the AMERISAFE LOGO is a registered trademark of AMERISAFE, Inc. SAFE ABOVE ALL is a
trademark of AMERISAFE, Inc. All rights reserved.

Staff Profile
GETTING TO KNOW BONNIE WARREN
ACSR, CPIW, DAE, RPLU, SENIOR INSURANCE ACCOUNT EXECUTIVE
Time at IIAV:
6 years
What does your job entail?
To find the best product that fits the client’s
needs at the best price possible. To be there
to listen and respond to agents’ concerns
and give directions when possible.
What do you like most about your
position?
The ability to help my clients, to protect
their financial future and to work with great
employees at IIAV.
have worked over the years to get my ACSR, CPIW, DAE
AND RPLU. I think it is very important to stay current in
your profession.
What was the first job you ever had?
I was a waitress when I was in college. That is an education
in itself. Great way to get to know the human race good
and bad.
Tell us about yourself.
I grew up in West Virginia, such a beautiful place. The
oldest of 7. Still very close to all my siblings. Both
parents have passed and so I am kind of the glue that
holds the family together at this point (so I am told).
Education Background
I went to Marshall University in Huntington, West
Virginia. I believe in continuing your education and
16 THE BIG VIRGINIA SUMMER 2020

What are you most proud of,
personally and professionally?
Personally: my son; he is a wonderful
person. Professionally: earning my CPIW
and RPLU and working in this wonderful
profession.
Name something people would be
surprised to know about you.
I am a 3rd degree black belt, taught
Karate for several years, and used to
do tournament fighting.
Name one thing on your bucket list.
To travel every state in the U.S.
Favorite Food
Ice cream – that is a food, right … ?
Movie
The Shack
Band/Artist
I love most all music, but older country
is my favorite.
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AURA
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SUMMER 2020 THE BIG VIRGINIA 17

Industry Profile
Learn More About Jackson
Sumner & Associates
Jackson Sumner & Associates (JSA) is more than cool
ads, water bottles, and filming at convention. They
have some of the best people in the industry – that
along with the insane amount of technology they use, sets
them apart from others. They are huge supporters of IIAV
and we are so grateful for them. Continue reading to learn
more about what makes Jackson Sumner & Associates,
J S A with some insights from Brantley Saunders, JSA
Director of Marketing, and Danielle Wade, CPCU, CIC,
JSA President and CEO.
How long has your company been in business?
We were founded in 1981 and recently celebrated our 39th
anniversary.
When someone is “in the zone,” what are they
normally doing?
When we’re “in the zone” our underwriters are being
creative with how to provide the best coverage for the
most affordable price. It’s coming up with a solution to an
agent’s (or insured’s) problem quickly.
How do employees measure the impact of their work?
Based on if they were able to find a good solution for a risk
they have been presented with. And by good solution, I
mean a policy that would cover the insured’s exposure and
be able to set them back whole if they had a loss.
Where does the company expect to be in the next
three to five years?
In 3-5 years, JSA will be fundamentally the same as today:
an independent E&S Broker focused on superior customer
service, strong underwriting and ease of doing business.
We will have expanded markets and additional product
offerings so we can be a one-stop shop for all agents in
VA for any E&S needs. Our investments in technology will
only enhance the experience agents have when working
with JSA.
Are there any company-sponsored
activities to facilitate strong culture
among employees?
The JSA team really is like a family and
we love to celebrate and have fun as
evidenced by our annual Halloween
costume contest, Christmas party, and
charity work throughout the year.
We know you have an impressive office, what is
your favorite part?
My favorite part is our people! Our office is just a building,
but it’s the people that make it a great place to be! We
like to joke that our staff is as diverse and unique as the
risks we write, but that’s what makes working us with so
much fun. Everyone’s differences make us a fun, energetic
group. There’s never a dull day in our office.
How do you uphold your mission statement in the
work you do?
In everything we do, we’re guided by our mission to respect and
care for all human connections we make: company or agent,
friend or stranger. That means always doing things the right
way: strong underwriting, treating our employees like family and
providing superior customer service to our valued agent partners.
Why is JSA different?
In the words of our founder, Wayne Sumner: It is as important
to have “the right attitude” as it is to have the right products.
We strive to make it a pleasure to do business with us and
we hope our efforts are succeeding. We truly believe that
“we are in business because of you,” and we shall never
forget that.
18 THE BIG VIRGINIA SUMMER 2020

T H A N K Y O U 2 0 2 0 P A R T N E R S
C H A I R M A N L E V E L
P R E S I D E N T L E V E L
V I C E P R E S I D E N T L E V E L
D I R E C T O R L E V E L
Amerisafe
Aspera Insurance Services
Berkshire Hathaway GUARD
Central Insurance
EMPLOYERS
First Benefits Insurance Mutual
Hanover Excess & Surplus Inc
Goodville Mutual Casualty Co.
Landin Inc
Leavitt Group
Loudoun Mutual Insurance Group
MMG Insurance
Mutual Assurance Society of VA
Penn National
SageSure Insurance Managers
State Auto Insurance Co.
Stonewood Insurance
The Main Street America Group
Triumph Commercial Finance
SUMMER 2020 THE BIG VIRGINIA 19

5SELF-
DECEPTIONS
THAT HOLD
US BACK
By John Graham
As human beings, we’re experts at deceiving ourselves,
all because it’s so easy for us to think we know more
than we do. As a result, we do less than our best work,
miss out on opportunities, and mess up our decisions.
To be sure, self-deception is one way we
keep ourselves safe. We use it to fend off
enemies that would expose us to troublesome
situations. No one escapes; we all do it. With
self-deception it’s easy to believe the little
voice inside us is right.
Although we may picture ourselves as rational
human beings who process information
objectively, psychologists Karen Reivich,
PH.D. and Andrew Shattè, Ph.D. tell us “we
are downright shoddy scientists. We collect
incomplete data, we use shortcuts to process
it that lead to biased appraisals, and we make
errors in interpretation that often support
our favored hypothesis.” In other words, we
construe facts until we feel good. In short, we
screw up!
Here are five self-deceptions that hold us back:
Self-Deception #1
“Others are better equipped to
handle challenges than I am.”
It doesn’t take much thought for most of us
to conclude that others are better prepared
to face personal or work life issues. Yet, the
chances are they see us the same way we view
them!
As it turns out, what we’re doing is measuring
ourselves against the wrong standard. It’s not
us versus them (except in our mind) since the
actual competition is with ourselves. We spend
time building “this is why I can’t” cases against
SUMMER 2020 THE BIG VIRGINIA 21

ourselves, rather than realistically assessing our capabilities
against our past performance. Simply put, we don’t give
ourselves enough credit.
Self-Deception #2
“I need a little space
to get everything all set.”
There are those who view themselves as perfectionists. But
wait a minute, it could be something else. “I don’t want to
pull the trigger too soon. I would rather wait a little longer.”
Some of the seemingly most competent people suffer from
this self-deception.
It’s easy to set the bar so high we never get ready. If we
get close, we keep raising it higher. It’s easy to convince
ourselves that anything less than flawless is failure. “I need
to go over the proposal one more time to be sure it’s right.
I’ll have it to you by tomorrow.” As we all know, tomorrow
never comes.
Self-Deception #3
“I’m afraid something
will go wrong and I will fail.”
Few of us escape the fear of failure’s grip at one time
or another. Which is why there is so much advice
available on how to loosen fear’s hold on us. But
when it comes right down to it, trying to get over
the fear of failure isn’t the point.
When I was 11, three of us hiked up to a police
shooting range. The goal was to dig out the
lead buried in the hillside behind the targets.
Hauling our bounty home, we lit a Coleman
gasoline camp stove in our garage and
melted the lead in a Hills Bros coffee can.
To see what might happen, one boy
poured gasoline in the can. Instantly
flames shot up, along with hot, liquid
lead. Although we were scared stiff,
miraculously none of us was hurt!
Fear can be an effective survival
technique is the point of the
story. Ignore it and you can get
hurt. But you can also use fear
to your advantage by asking,
“What could possibly
happen if I move forward
with this project?” Lay it all
out on the table, evaluate
it thoroughly, and then
make your decision.
Self-Deception #4
“I may not meet the requirements,
but I know I can do it.”
As a taxi driver said about Mexico City traffic, “If you
don’t try, you’ll never make it.” Such daring describes the
“go get‘em attitude” of many successful people. But the
results don’t always come out that way. We can also wind
up in trouble.
Perhaps this may be why Nobel Laurette Daniel Kahneman
ended a Ted Talk this way: “Don’t trust yourself too much.
Don’t trust in ideas and beliefs just because you can’t
imagine another alternative to them. Overconfidence is
really the enemy of good thinking, and I wish that humility
about our beliefs could spread.”
Self-Deception #5
“I’m good at what I do
so I’m not worried.”
I’ve wondered why Hewlett-Packard runs endless ads
for its printers at near giveaway prices. Declining printer
supply sales may be the answer. As a recent Bloomberg
Businessweek article points out, HP’s 1989 annual report
stated, “New products are the lifeblood of our company.”
But, as the BB reporters note, “Today old products are
arguably the lifeblood of the company.” Marketing
printers results in a continuing stream of printer supply
sales. Yet, the article notes, sales of supplies declined for
the last three quarters. Companies, as well as individuals,
can suffer from self-deception.
No one lives or works in a “Self-Delusion-Free Zone”. We
are all victims of self-delusions. We’re the prisoners of
our own self-serving thoughts, which can be deceptively
calming and protecting us from danger. We’re eager to
believe the little voice, “Everything’s going to be OK.”
For example, “Others may come down with the Covid-19,
but I’ll escape it.” Or, “Others may be laid off, but I’m
needed.” We are suckers for selfies of our own reality.
There’s one self-deception that ties all five together,
one that can get us in deep trouble. professionally and
personally. It’s this: there’s so much we think we know
that we don’t know. The future may well depend on
admitting there are glaring gaps in our knowledge, when
being tough on ourselves can make a difference.
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, 617-774-
9759 or johnrgraham.com.

O c t o b e r
1 1 - 1 4 ,
2 0 2 0
Marriott Virginia
Beach Oceanfront
N A V I G A T I N G
T H E
F U T U R E
IIAV CONVENTION & EXPOSITION
For more information & to register visit: www.iiav.com/acinfo
SUMMER 2020 THE BIG VIRGINIA 23

2020 Resource & Solution Center
Monday, October 12th
9
Booths: 6’Dx10’W Tables: 6’x2’ foyer table
Exhibit space Includes:
Important Times:
One (1) 6’x2’ custom draped table
Two (2) chairs
One (1) sign
One (1) wastebasket
The entire exhibit area is carpeted
Hall Set-up: 12:30pm-2:30pm
Exhibitor Meeting: 2:30pm-2:45pm
Exhibitor Prize Drawings: 5:30pm
Exhibitor Breakdown: 6:00pm
Any additional equipment, special lighting or decorations should be arranged through Exhibits, Inc.,
the official Resource & Solution Center decorator.
Denotes corner booth pricing
Denotes filled booth
Updated 2/18/2020
ENTRANCESOLD OUT
1.Grange Insurance
17. Assurant Flood Solutions
2. Commonwealth Underwriters18. Harford Mutual Ins
3. Utica First
19. Progressive Ins.
4. Advisor Evolved
20. Acuity Ins.
5. Pie Insurance
21. TAPCO Underwriters, Inc.
6. Philadelphia Ins Companies 22. APCO Credit Corp
7. Gennesee Ins.
23. Falls Lake Insurance Co
8. SERVPRO
24. Pennsylvania Lumbermans
9. Employers
25. Big I Hires
10. Insurance House 26. SouthEast Personal Leasing
11. Amerisafe
27. Rockingham Ins. Group
12. Leavitt Group
28. ICW Group
13. Main Street America Group
14. Iroquois Mid-Atlantic
15. Jackson Sumner & Assoc.
16. Xpress-Pay
x = Sold
29. SageSure Ins. Managers
30. Johnson & Johnson
31. Trusted Flood Brokerage
32. AmWINS Group, Inc.
* IIAV Endorsed Vendor
33. HomeTech
34. Brethren Mutual Ins.
35. Orchid Insurance
36. Donegal Ins Group
37. First Benefits Ins. Mutual
38. Imperial PFS*
39. Watney Insights Network
40. Selective Ins. Flood-PL
41. State Auto Ins. Companies
42. Liberty Mutual/Safeco
43. Narragansett Bay Ins.
44. Prime Ins Company
45. MEMIC
46. MEMIC
47. ePayPolicy
48. Shenandoah Mutual Fire Ins.
49. Liberty Mutual/Safeco
50. Kite Technology Group
51. Homeowners of America Ins
52. Zenith Ins Company
53. Berkshire Hathaway Guard
54. Applied Underwriters
55. Berkley Mid-Atlantic Group
56. Belfor Property Restoration
57. Victor Ins.
58. Nationwide Ins.
59. Triumph Commercial Finance
60. Goodville
61. Titan Web Mktg Solutions
62. Markel Specialty
63. Xanatek
64. Landin, Inc.
65. Midwestern Ins Alliance
66. Houston International Ins.
67. Mercury Ins Company
68. RPS
69. Hanover Excess & Surplus
70. EZLynx
71. Benefinder
72. Little Dog Social Media
73. Aspera Ins. Services
74. West Bend Mutual Ins.
75. Smart Choice
76. UIG
T1. EVOLVE MGA
T2. Bureau of Insurance
T3. VFSC/SwissRE
24 THE BIG VIRGINIA SUMMER 2020

THANK YOU TO OUR 2020 SPONSORS!
As of 2/18/2020
PLATINUM LEVEL
GOLD LEVEL
SILVER LEVEL
BRONZE LEVEL
Amerisafe
AmWINS Group
Aspera Insurance Services
Berkshire Hathaway GUARD
Central Insurance Co
EMPLOYERS
First Benefits Mutual
Goodville
Landin, Inc.
Leavitt Group
The Main Street America Group
MMG Insurance Company
Mutual Assurance Society of VA
Penn National
Prime Insurance Company
Rockingham Group
SageSure Insurance Managers
State Auto Insurance Companies
Stonewood Insurance
SwissRe
Triumph Commercial Finance
COPPER LEVEL
Markel Specialty
Philadelphia Insurance Companies
SUMMER 2020 THE BIG VIRGINIA 25

CYBER: IT’S NOT JUST FOR THE BIG GUYS
Sponsored by CNA
Despite high-profile stories of
companies getting hacked, many
still make the mistake of thinking it
won’t happen to them. Here are a
few common cyber myths – and how
you can combat them when offering
cyber coverage to your commercial
clients.
MYTH: Cyber coverage is
just about hackers.
“Cyber” is one of the biggest
misnomers in the insurance world
because it implies that this type
of coverage only pertains to your
network and the data on it. Not true.
26 THE BIG VIRGINIA SUMMER 2020
“The forms we sell address any
type of confidential information
in your possession, regardless of
format,” says Katie Wilson, CNA vice
president, underwriting. “It could
be paper documents, a lost laptop
or an employee sending an email to
the wrong place—none of which has
anything to do with someone hacking
into your network.”
MYTH: As long as your
network is protected,
you’re safe.
It’s not just about protecting the
data – it’s also about educating
your employees. In the cyber age,
everyone is a risk manager. Nick Graf,
director of risk control at CNA, notes
that one of the carrier’s differentiators
is the guidance clients receive on
information security policies.
“Employees can be the strongest
asset or the weakest link,” Graf says.
“The majority of these attacks usually
start with some sort of employee
mistake – opening an attachment,
sending a file unencrypted.”
That means training employees about
cyber risks is critical.

MYTH: Technology and health care
companies are the prime purchasers of
cyber coverage.
The insurance industry needs to broaden its perception
of which commercial clients need cyber coverage.
“In the last year, professional services – accounting firms,
law firms, architects and engineers – have definitely
increased the level at which they are purchasing
coverage,” Wilson says. “We’re starting to see some
manufacturers purchasing coverage as their network
drives a significant part of what they do these days.”
Graf agrees, pointing out that manufacturing and
construction are two fields which will see increased cyber
exposure within the next five years.
MYTH: If you’re following privacy
notification laws, you’re doing enough.
With the exception of HIPAA information, notification
after a breach is regulated at the state level. But if a
breach occurs and the law requires no action, can a
business survive the reputational harm?
“The No. 1 thing that differentiates CNA’s coverage is that
if you have personal information hacked, we give you the
option to notify whether or not there is a legal obligation
to notify,” Wilson says. “You don’t get that option with
some carriers. And we also don’t tie in our definition of
personally identifiable information to privacy laws. We
certainly will respond as a privacy law requires. But if you
have confidential information that has been breached
and it doesn’t fall within the parameters of a notification
law, a CNA policy allows for voluntary notification.”
MYTH: Only big companies are at risk of a
cyber breach.
Ransomware continues to grow exponentially year
over year, and it’s hitting all organizations – from those
in government to the private industry to one- or twoperson
doctor’s offices.
“The bad guys really don’t care how big or small you
are,” Graf says. “It’s very likely that they can extract
some sort of financial compensation for their activity.
Regardless of the size of your company, I can promise
that you will be the target of one of these attacks soon.
And a single event without coverage could very easily be
a business-ending event.”
Note: Only the relevant insurance policy can provide the
actual terms, coverages, amounts and conditions for an
insured. All products and services may not be available
in all states and may be
subject to change without
notice. CNA is a registered
trademark of CNA Financial
Corporation.
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SUMMER 2020 THE BIG VIRGINIA 27

THE NEW NORMAL: 4 PERENNIAL CYBER THREATS
By Will Jones
In 2019, ransomware and business email compromise emerged
as some of the biggest cyber threats around. As ransomware
attacks paralyzed public entities, such as the attack that
crippled the Baltimore’s government computer systems, and
business email compromise and social engineering efforts
targeted businesses from Main Street to Wall Street, the
insurance industry has reacted with a host of new products and
coverages.
However, by the very nature of the risk, yesterday’s cyber
threat will not be tomorrow’s biggest danger. Here are four
other cyber risks in the cyber liability space that will threaten
businesses in 2020:
1) Vendors. In 2017, retail giant Target was ordered to
pay an $18.5 million multistate settlement to resolve state
investigations of the 2013 cyberattack that affected more than
41 million of the company’s customer payment card accounts.
An investigation determined that cybercriminals gained access
to Target’s system through credentials stolen from a third-party
vendor. Using the credentials, the attackers gained access to
a customer service database, installed malware on the system
and captured a host of sensitive data.
“When you look at the Target situation, the hackers got in
through the vendor associated with the HVAC system,” says
Ken Heebner, senior account executive, TrustStar Insurance
Services, Inc. in Universal City, Texas. “Agents and insured
don’t take into account the vendors, the risk exposure they
bring to the table.”
“If something like that happens, that could fall on you or your
client and it becomes a huge battle,” Heebner adds. “That
vendor can be your best friend or your worst enemy. Agents
have to have those tough discussions with their clients so that
they understand the seriousness.”
2) Regulation. The California Consumer Privacy Act (CCPA)
took effect on Jan. 1 and was seen as a victory for consumers to
provide them certain rights over the data that companies like
Facebook, Google and data brokers collect from them.
Most of the CCPA is based on the European Union’s General
Data Protection Regulation (GDPR), except for one important
issue. While GDPR requires individuals to provide consent
before their data can be collected, CCPA instead assumes
consent and requires it to be revoked if an individual wishes to
opt-out. Either way, the regulations are something that could
be somewhat of a back-door risk to commercial insureds.
“Data breach obviously still mainly affects industries that
process or store sensitive information, such as retail, healthcare,
hospitality and technology, but even in this area there is change
underway,” says Jacob Ingerslev, Head of Global Cyber Risk,
The Hartford.
“New regulations, such as GDPR in Europe and the CCPA in
California, expand privacy regulation from traditionally being
mostly a data breach issue to becoming a data collection and
processing issue, with the potential for enormous fines and
elevated litigation costs relating to non-compliance with those
practices,” he says.
3) Manufacturers. Manufacturers are increasingly being
targeted not just by traditional malicious actors, such as hackers
and cybercriminals, but by competing companies and nations
engaged in corporate espionage, according to Deloitte, where
motivations range from money and revenge to competitive
advantage and strategic disruption.
In today’s business environment of increased automation,
connectivity and globalization, even the most powerful
organizations in the world are vulnerable, which leaves the
question: What happens to a manufacturing business when
its production operations suddenly grind to a halt due to a
cyberattack?
“Cyber insurance continues to be a dynamic area that requires
all of us—carriers and agents alike—to work to keep up,” says
Timothy Zeilman, HSB vice president, Global Cyber Products.
“My suggestion would be to focus the continuing shift towards
increased awareness of the cyber exposure of businesses that
don’t necessarily have high personal information exposure but
do have a significant business interruption exposure.”
“Businesses like manufacturers that have a lower personal
information exposure, but a significant business interruption
exposure may just now, with the rise of risks like ransomware be
becoming aware of their need for cyber insurance,” he adds.
4) The digitally connected world. The average
American household has six devices connected to the internet
such as a security camera, smart home assistant, smart TV or
baby monitor, according to a recent study by Grange. Any device
connected to the internet is at risk of being hacked, which puts
every type of business at risk. The example that Heebner utilizes
a lot is “elevators that are connected through the internet.”
“If something happened on that elevator that was caused due
to somebody hacking into the system, you now have removed
the general liability coverage because it’s not a covered peril on
that policy,” Heebner says.
“Agents need to have discussions with their clients about risk
management and what their exposures are so that you can get
down to helping them identify a pain point with their cyber risk
and exposure they might have missed,” he adds. “Claims due
to first-party and third-party bodily injury, property damage and
pollution could all be caused by a hacker controlling systems
through the internet.”
Will Jones is IA managing editor.
SUMMER 2020 THE BIG VIRGINIA 29

TOP 5 CYBER
LIABILITY
INSURANCE
CONCERNS
FOR AGENTS
Sponsored by Risk Placement Services
Servicing clients and their exposures
is difficult enough. But throw in
trying to keep up on the cyber
evolving liability exposures and
associated coverage forms, and it’s a
complicated situation that may leave
agents exposed themselves.
Here are five things to consider in
designing the right cyber liability
coverage for your clients:
1) Cybercrime complications.
Cybercrime, such as phishing
schemes and social engineering, is
complicated. Insureds expect that if
they have both a crime and a cyber
policy, they should be covered.
Unfortunately, this isn’t the case.
Some crime policies specifically
state social engineering and cyber
theft is included, while others may
not. It’s important to design a crime
policy that covers certain cybercrime
exposures and complements the
cyber policy.
2) Add-on cyber coverage.
Cyber may be an added “throwin”
as part of a commercial general
liability policy, business owners policy
or professional liability policy, but in
most cases, the insured will not have
the coverage they need.
These policies may include low
limits, sub-limits or even exclusions
for cyber losses, which leave clients
underinsured. Or, the policy may
have aggregate limits shared among
coverage grants, leaving the insured
further exposed.
3) Business Interruption
triggers.
A strong cyber policy will include
business interruption coverage to
pick up the exclusion on a property
policy for a network security event.
Most cyber policies will respond in the
event of a security breach that causes
network failure and loss of revenue.
Recently, this has been expanded to
include business interruption caused
as a result of an insured’s system
failure or network disruption, which is
a much broader trigger.
The type and extent of business
interruption coverage in a cyber
policy becomes extremely important
depending on the client’s industry.
For example, a manufacturer would
be greatly impacted if a supplier’s
system failed, upending their ability
to deliver.
4) Pre-breach resources.
There is a big push to prevent claims
with pre-breach resources, but how
engaged are insureds in using these
services?
It’s important not to sell solely based
on what an insured can get for free,
where the take-up rate for services
has been traditionally low, particularly
in the small to mid-size market. While
we should offer risk management
resources, add-on services shouldn’t
be at the expense of the policy
language itself.
5) Risk management terms
and procedures.
It’s important for agents and brokers
to familiarize themselves with the
terms and procedures to help prevent
losses. This includes:
• Multi-factor authentication
• Checks and balances for wire
transfers and invoicing
• Segregated, regular critical data
backups
• Ongoing employee training
Cyber insurance solutions for diverse
industries are available. But you need
to know what to look for, when it’s
important and for which industries.
Collaborating with a wholesale
partner with broad market reach
gives you access to the wide range
of coverage, but also experts who
specialize in handling cyber risk. With
online platforms that make quoting
cyber simple and fast, a wholesale
partner may be the right path to
providing cyber coverage for your
clients.
By Steve Robinson, area president,
technology & cyber, Risk Placement Services.
30 THE BIG VIRGINIA SUMMER 2020

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Phishing
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03/2020
SUMMER 2020 THE BIG VIRGINIA 31

WHAT YOUR EMPLOYEES
DO WHILE NOT AT WORK
By Paige McAllister, SPHR, SHRM-SCP, Vice President HR Compliance – Affinity HR Group, Inc.
Handling employees’ unacceptable behavior during work time and
on-site is hard enough. But sometimes we have employees whose
behavior and actions after hours or off-site impact the company
or other employees. What can you do then?
It is a myth that you cannot take action
based on an employee’s off-hours
behavior. While nearly 30 states have
some level of protection restricting
actions you can take against
employees for legal off-duty behavior,
if it impacts your business, clients,
and/or other employees, you may
have the ability, and sometimes the
obligation, to discipline accordingly.
While most of your employment
policies only cover working time,
there are several critical policies that
also cover off-hours behavior, most
importantly:
• Non-Harassment/Non-Sexual
Harassment/Non-Discrimination/
Non-Retaliation
• Substance Use and Abuse
• Confidentiality/Non-Disclosure
• Workplace Violence
While circumstances are always
different, some situations we have seen
are:
An employee makes unacceptable
advances and/or comments to
another employee during an afterhours
gathering for “happy hour.”
Even though this is a voluntary event
not sponsored or organized by the
company, the victim has protections
under the sexual harassment policy. If the
harassed party makes a complaint or if a
third party mentions the unacceptable
behavior, management must investigate
and take action so the harassed person
feels safe. The discipline may not be
as harsh as if it happened onsite but a
warning at least may be warranted. If the
accused is a manager, investigating and
taking action is even more necessary
as that liability will fall on the company
regardless of if it is work time or not.
32 THE BIG VIRGINIA SUMMER 2020

An employee uses marijuana legally
over the weekend but then fails a
random drug test on Monday. The
legalization of marijuana has created
issues when it comes to drafting and
implementing employment policies.
Since marijuana shows up as a
positive result for much longer than
the employee is under the influence,
it is hard to know when and how to
discipline. In some situations, you
may need to witness several side
effects of the employee being under
the influence regardless of the drug
test result. In others, any positive
result is ground for termination, such
as in states where the substance
is illegal or you are controlled by a
zero-tolerance policy based on a
federal contract.
An employee acts inappropriately
during a conference in front of
co-workers, vendors, clients,
and prospects, becoming loud
and “un-PC.” The employee is
representing the company so this
unacceptable behavior could cost
the company money, reputation, and
clients. More serious actions such
as revealing classified information,
harassing/sexually harassing an
employee, client, or vendor, telling
inappropriate jokes, or using
unacceptable language should
result in serious discipline. Note: The
employee cannot use “being drunk”
as an acceptable defense. They are
still responsible for their actions and
possibly restricting alcohol in future
events may be appropriate.
An employee complains about
their low wages (posting how
much they make) and how awful
their supervisor is. Some speech
like this is protected under the
National Labor Relations Act (NLRA).
Under the NLRA, all employees have
the right to exercise “protected
concerted activity” which is speech
or actions with the purpose of
improving working conditions for
themselves and others. Employees
talking about their own work
conditions is protected; talking
about others without permission
is not. It is also not protected to
violate confidentiality such as the
company’s pricing structure or client
information.
An employee is arrested for their
part in a barroom brawl involving
their friends and some strangers.
In most situations, you cannot
take action on an arrest alone.
However, if the charge is serious
enough that the employee will be
missing significant time (i.e., they
cannot report to work because they
are in jail) then you may have the
option to terminate for unexcused
absences. If the charge involves
violence, you may have options
for discipline if there is legitimate
concern it could migrate into the
workplace. If other employees were
involved, you may need to evaluate
the workplace situation since there
may be harassment or workplace
violence implications evolving from
an unaddressed situation.
An employee uses their personal
social media accounts to post
derogatory messages which
customers have complained about.
Somehow people have connected
this employee and their opinions to
your company so you may be “guilty
by association.” Even though the
employee is using their personal
accounts, presumably on their own
time, their actions are now impacting
your business. This behavior could
impact your company’s reputation,
make customers take their business
elsewhere, and make your other
employees feel uncomfortable. You
cannot make a knee-jerk decision
but should evaluate all the factors,
including the employee’s work
performance, tenure, etc., and
determine the best course of action
including perhaps disciplinary action
or even termination.
An employee who works in
purchasing comes to the office
Monday talking about the great
time they had with a potential
vendor at a sporting event
including luxury box seats, a full
bar, and a meet-and-greet with
the team. While on the surface
there seems to be nothing wrong
here, you need to consider all the
potential outcomes arising from this
situation. An employee accepting
such a valuable gift could create a
spoken or unspoken expectation
to steer your company’s business
to their company. If they have
any power over the decision, the
impartiality of their decision-making
could come into question, possibly
committing your company to a costly
relationship that does not work for
you. Having a Conflicts of Interest
policy outlining what is and is not
acceptable can help you ensure that
employees are making decisions for
the right reasons.
Please note that all situations
differ based on factors such as
the employee’s circumstances, the
company’s past precedent, state
and local laws, employment-at-will
status, and/or collective bargaining
agreements. Therefore, before you
discipline or fire an employee for offduty
conduct, you want to assess:
• Is the employee an at-will
employee?
• Did the employee engage in
protected activity, such as that
protected by the NLRA?
• Are there any federal, state, or
local laws that may apply?
And before you take action, it is best
to do a full investigation, listen to all
sides involved and, when in doubt,
check with your legal counsel or call
us at Affinity HR Group to help walk
you through it.
Paige McAllister is a contributor for
Affinity HR Group, Inc., IIAV’s affiliated
human resources partner. Affinity
HR Group specializes in providing
human resources assistance to
associations such as IIAV and their
member companies. To learn more,
visit www.affinityHRgroup.com.
SUMMER 2020 THE BIG VIRGINIA 33

34 THE BIG VIRGINIA SUMMER 2020

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