Primary Agent - July 2012 - DE Edition

INTHISISSUE:____________

Q&A with a recruiter

How hiring affects culture

Employee classification tips

Benefits of HR Solution©

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How to make the right hiring decisionHiring can be a nerve-wracking — and expensive — proposition. Here, staff fromMosteller & Associates, IA&B’s contracted human resources consulting firm, offer expert answers to 10 common recruiting questions. The end goal? Efficient,cost-effective and successful hiring.

Page 12

Building a culture through recruiting and retentionPrioritizing and understanding your agency’s culture can pay dividends — think:smarter hiring and a satisfied workforce. In this article, Dave Coons looks at therole of culture in recruitment and retention.

Page 20

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

Copyright 2012. All rights reserved. No material may be reproduced in whole or in part without written consent of the publisher. The information in this publication is general in nature and is not intended to serve as legal, accounting, financial,insurance, investment advisory or other professional advice as to any reader’s particular situation. Users are encouraged to consult withcompetent legal, financial, insurance, investment advisory and or other professional advisors concerning specific matters before makingany decisions and we disclaim any responsibility for any decisions or actions by readers. Statements of fact and opinion in PrimaryAgent are the responsibility of the authors alone and do not imply an opinion on the part of the officers or the members of the IA&B.Participation in IA&B events, activities and/or publications is available on a non-discriminatory basis and does not reflect IA&Bendorsement of the products and/or services.

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

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

Address inquiries to:Primary Agent Editor5050 Ritter RoadMechanicsburg, PA 17055-0763Phone (800) 998-9644 or (717) 795-9100 Fax (717) 795-8347

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

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-7 is published monthly by IA&B Service Group Inc., a subsidiary of IA&B.

2 Chair of the Board’s Message3 Member FAQ4 State News6 Preventing E&O8 Coverage Corner10 Tools You Can Use

11 Glance at Events19 IA&B Partners24 Technology Update28 Advertisers Index28 Classified Ads28 Last & Least

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

Get social with IA&B

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

Chair of the BoardWest Chester, Pa.

Norman F. Basso, CPCUVice Chair of the BoardYork, Pa.

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

MembersJoyce M. Bailey, CIC, CRM, CPIW

Newark, Del.

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

Timothy P. BurrisMifflintown, Pa.

N. Lee Dotson, CIC, AAIWilmington, Del.

Michael P. ErtelIColumbia, Md.

John L. FrankenfieldTelford, Pa.

G. Greg Gunn, CICLemoyne, Pa.

John B. HollisterMilford, Pa.

Diana M. Hornung Hanby, ACSRWilmington, Del.

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

Robert S. Klinger, LUTCF, CPIA+

Germantown, Md.

Douglas A. Loesel, CPCUErie, Pa.

Michael F. McGroarty Sr.Pittsburgh, Pa.

Craig S. Mader Gambrills, Md.

Ann Gallen Moll, CICReading, Pa.

April E. Ressler, CICAltoona, Pa.

Scott C. Rogers, CPIA*York, Pa.

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

Lawrence A. Wilson, CIC, CPIA, CPCU, ARM**New Castle, Del.

* Pa. IIABA National Director** Del. IIABA National Director+ Md. PIA National Director

Board of Directors

[ 2 ]

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

Chair of the Board’sM E S S A G E

Driving members to distinction.

Working hard to make it easier

Tired of hearing about the firming market? Then let’s take amoment and focus on the repercussions. If you’ve been inthe business for a while, you know that market changes, forone reason or another, often bring employment changes.

Enter your agents’ association — poised to serve as anextension of your staff, even when (or maybe, especiallywhen) your own staff is undergoing changes.

Take IA&B’s employee management tools, for example.There’s HR Solution (read more on page 10), the countlessresources stored on www.iabgroup.com (including theProducer Agreement Toolkit), and even the articles in thismonth’s Primary Agent magazine.

I encourage you to take advantage of the resourcesavailable to you through your IA&B membership. It’s nevergoing to be easy to run an agency, but your association isworking hard to make it easier.

Best,

Robert B Hall, ChFC, CLU, CPCU, ARM, ARM-PChairman of the Board

[ 3 ]

ANSWER:An experience modification factor, “a mod,” is notmodifiable at will. However, it is becoming more andmore common for insurance outfits with a specialty inWorkers’ Compensation insurance to claim that they willimprove the client’s experience modifier. As misleading asit may sound, after discussion with the client and access totheir information, those outfits scrutinize the worksheetand often find either errors or, more likely, simply a delayin closing claims or adjusting reserves, having a directimpact on the experience mod.

Of course, the ability to change the mod immediately orhave to wait until the next renewal depends on when the“error” is discovered, but even if the mod cannot becorrected immediately, the client’s trust in your agencycould be shaken, and you could end up losing theaccount. More often than not, the issue stems from thevaluation date.

The valuation date is the date at which time the losshistory (including claim reserves) is “frozen” for purposesof calculating the mod. Past the valuation date, anyreduction in the reserve will have no effect on the mod.An agency’s lack of diligence in reviewing the loss history

with the carrier prior to the valuation date could becomean Achilles’ heel when your competition comes knockingon your client’s door.

It is essential to make sure that there are no over-reserved claims and that all claims that shouldbe closed are in fact closed before the valuation date. This should be done for all policy yearsexamined for the mod.

It is also a good idea to ensure that staff is familiar withworksheets and how the mod is calculated (as obscure asthe formula may appear).

If you make it a habit to review the claims in advance ofthe valuation date and to discuss with the carrier anyquestionable open claims, you will provide better serviceto your clients and be less vulnerable to your competition.

DO YOU HAVE A QUESTION? Email it to us at [email protected]. Please use “Primary Agent FAQ” in the subject line of your message. You can also fax your question to 717-795-8347. We look forward to answering your questions!

QUESTION:My insured is telling me that someone called him and told him that they could save him money by improving his experience mod. How can theyclaim that?

Member FAQ

State News

Networking opportunities, CE seminarsand an insurance commissionercandidates’ forum drew over 200independent agents, CSRs and companypersonnel to Rehoboth Beach June 6-7.The 55th annual DAIAB AnnualConvention was a resounding success.

Fun in the sunAttendees began June 6 on thenetworking event of their choice — a golftournament at Kings Creek Country Clubor one of three bicycle tours. The dayconcluded with a vendor-sponsoredwelcome reception, followed by thesecond annual seaside social.

Day two kicked off with a legislativeupdate from DAIAB’s government affairsteam and an insurance commissionercandidates’ panel discussion. Attendeesalso chose among four CE-approvedcourses, taught by nationally recognizedfaculty members Jerry Milton and Bettye Buffington. In addition, Thursday included the annual awardsluncheon, where DAIAB recognized CSRs and presented the followingawards and scholarships.

Association awardsJim Watkins, of Pfister Insurance Inc. inDover, received the Wharton-RanalliLeadership Award for his contributionsto the association and industry. Jim recently ended his term on theDAIAB Board of Directors and asDelaware’s IIABA (the Big “I”) NationalDirector. The William H. Lehnert Jr.Award went to Joanna “Joey” Ryder, ofSelective Insurance Group, for her effortsto forge strong agency-companyrelationships. And former director of the DAIAB Board Denise Kozel, ofBramhall + Hitchen Insurance in Newark, received the Francis B. GebhartMemorial Award for her continuedassistance to the association.

Joann Scott MemorialScholarshipsDAIAB’s annual Joann Scott MemorialScholarships went to MatthewArmistead, of Newark, and DanielleMarshall, of Middletown. Both received$1,500 to continue their education at theUniversity of Delaware.

A sincere thank you to all who attendedand sponsored the convention.

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Primary Agent | July 2012

Annualconventionin review

Court opines: Cert did not modifyterms of policyAnother court decision highlightsindependent agents' need for cautionwhen completing certificates ofinsurance. The U.S. District Court for theDistrict of Delaware was asked toconsider whether or not a certificate ofinsurance (COI), which was preparedand issued by an independentinsurance agent, modified the terms ofan underlying insurance contract, inrelation to an additional insured.

The additional insured argued thattypewritten language added to the COIby the independent insurance agentmodified the terms of the policy andthat the modified coverage wouldrequire the insurer to tender a defenseand indemnify the additional insured.The insurer countered the disclaimer onthe COI expressly stating the COI wasbeing issued for informational purposesonly, and thus could not be relied uponas a basis for modified coverage.

The court ruled that the independentinsurance agent was not authorized bythe insurer to change the terms of theunderlying insurance policy, and, as aresult, his delivery of the COI did notaffect the additional insured's coverageas provided for under the policy. Inspite of this positive decision,certificates continue to plague theindustry and are a rising source of E&O claims.

DAIAB’s legal brief:www.iabgroup.com/de/premcor_national_fire

DAIAB’s certificates resources:www.iabgroup.com/de/certificates

Track trends in Del. independentagents' marketshareLearn how independent agents stack upto their competition. DAIAB's customarysummary of the latest IIABA (Big “I”)market share report now is available viathe link below. The document providesan in-depth comparison of variousdistribution channels and various linesof insurance and Delaware-specificmarket share data for 2010.

www.iabgroup.com/de/marketing_branding (scroll to“P&C market share” heading)

Neighboring news:Md. court bitesback at pit bullownersThe issue of liability for owners of pitbulls and mixed breed pit bulls, andtheir landlords, has taken center stagein the Old Line State thanks to therecent Maryland Court of Appealsdecision in Tracey v. Solesky. The courtremoved the former common lawstandard for dog bite negligence cases,whereby it was necessary to prove (a)that the dog was known to bedangerous and (b) that the ownerand/or landlord was negligent, andreplaced it with a strict liabilitystandard, which establishes that, at first bite:

w Owners are liable if the plaintiffcan provide proof that the doginvolved in the attack was a pitbull or mixed breed pit bull.

w Landlords also can be held liable ifthe plaintiff can provide proof thatthe dog involved in the attack wasa pit bull or mixed breed pit bulland that the landlord hadknowledge the tenant owned a pitbull or mixed breed pit bull.

While not specifically addressed, thecourt's opinion has the potential toopen the door for increased liabilityissues for those who exercisetemporary custody over pit bulls ormixed breed pit bulls, includingveterinarians, pet stores, groomers,kennels, pet sitters, animal shelters andrescue groups.

Maryland state legislators’ offices havebeen flooded with calls decrying thecourt's opinion. In response to thepublic outcry and the ruling, fiveseparate pieces of legislation designedto overturn the court’s specific-breedprohibition were introduced during theGeneral Assembly’s late-spring specialsession. While none of the legislationwas passed, it is anticipated it may be re-introduced during the nextregular session.

Review IA&B of Maryland’slegal brief:www.iabgroup.com/md/tracey_solesky

[ 5 ]

[ 6 ]

PAUL E. WALTERS

Paul E. Walters, E&O

department claims manager

for the Utica Mutual Insurance

Co., supplied this article.

Insurance Agents & Brokers

Service Group Inc. is the

exclusive agent for the Utica

E&O program in Delaware,

Maryland and Pennsylvania.

For questions regarding this

article or your E&O coverage,

contact IA&B at 800-998-9644

or [email protected].


An agency relies on itsrenewal book as a largecomponent of its income.The book is maintainedthrough the good service theagency provides for itscustomers. Some of the bookmay be distressed because ofpremium issues. As a result,some agencies help walk anaccount through billingissues, even on direct-billedmatters, to keep the client onthe books. Rather thanhaving a policy cancelled andpossibly losing the account,agencies sometimes takesteps beyond duties normallyassociated with an agent’srole in the billing process.

From a legal perspective,when one acts outside ofnormal duties, the actionstaken may create a duty thatwould not normally exist.This is where agencies can bevulnerable to claims made bya client – when an issueregarding policy status exists.While helping an insured tokeep them as a client might

appear to make good sense,agencies must be carefulabout which accounts tohelp, and howcommunications during theprocess are documented.

If a client continually hasproblems making paymentsto a carrier or a premiumfinance company, the agencymay be best served to let theclient’s policy cancel insteadof trying to keep that clienton the books.

A cancelled policy, a claim, a court caseThe following exampleillustrates how an agency can be implicated when

claims arise from a lack ofinsurance coverage resultingfrom a cancellation for non-payment.

The agency had a client — abar — that was habitually latein making premiumpayments for liquor liabilitycoverage. The client wentthrough premium financing.In the past, when the agencywas notified of a pendingcancellation from thepremium finance companyfor the bar, the agency wouldintervene with the financecompany to buy the clientsome time to make itspremium payment and staveoff cancellation. Thisoccurred several times.Finally, the client was sent acancellation notice from thefinance company, a copy ofwhich the agent claims wasnever received at the agency — although it hadreceived past ones. Thepolicy cancelled.

BILLING MATTERS AND ASSOCIATED PITFALLSDon’t create a duty where none previously existed

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

While helping an

insured to keep them

as a client might

appear to make

good sense, agencies

must be careful ...

[ 7 ]

After the cancellation date, anintoxicated customer of the bar had aserious accident. Because theintoxicated customer’s insurancelimits were not enough to pay for theinjury caused by his actions, the barwas sued by the injured party, whoclaimed the bar should not haveserved any additional liquor to theperson who caused the accident.Since the policy for the bar had beencancelled, the bar had no coverage.The bar owner consented to a seven-figure judgment and, in exchange fora release, granted the injured partyan assignment of rights to sue theagency for the lack of coverage, theprior limit of $1,000,000.

Except for the fact that the

agency had assumed aduty in the past to help

get its client’s policy

reinstated, the agency would

not have been liable for

the bar’s lack of coverage.

The case against the agency wastried to conclusion. The jury foundfor the injured party who had theassignment from the bar. The jurystated they believed the agency knewof the impending cancellation, and,because the agency helped the barget the policy reinstated in the past,the agency owed the client a duty totake steps to get the policy reinstatedbefore the cancellation was final.

Surprisingly, the jury found theagency 60 percent at fault for thecancellation and the bar 40 percentat fault for not paying the premium.

The verdict entered was $600,000 —60 percent of the intended coverage— plus more than $200,000 inprejudgment interest, for a totalverdict in excess of $800,000. Exceptfor the fact that the agency hadassumed a duty in the past to helpget its client’s policy reinstated, theagency would not have been liablefor the bar’s lack of coverage.

Be carefulWhen a client’s business is injeopardy because of a cancelledpolicy, the client will do and saywhatever is necessary to keep thebusiness viable. This includesblaming an agent for its inability topay premiums. If an agency decidesto interject itself into the billingprocess, all communicationsconcerning the agent’s role in theprocess must be clearly documented.

It is not normally an agent’s duty toget involved. Agents should becareful when interjecting themselvesinto the billing process. Thepreceding example illustrates thepitfalls associated with helping aclient with a billing issue. Inhindsight, taking no action wouldhave been better than taking actionand creating a duty where nonepreviously existed.

the “A” way — Attitude, Assistance, Adaptability

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[ 8 ]

JERRY M. MILTON, CIC

Jerry M. Milton, CIC teaches

and consults on industry

issues. The legal profession

recognizes him as an

expert on insurance

coverages. He is also the

education consultant for

IA&B, working with CISR,

CIC and continuing

education programs.


I just hired someone to do ajob. I want to call thatperson an “independentcontractor.” But, is thatperson an “independentcontractor” or an“employee”? If that person isan employee, I must paysocial security tax, state andfederal unemployment taxand workers’ compensationpremiums. And don’t forget:That employee is entitled toall employee benefits (groupinsurance, retirement,vacation, sick leave, etc.).The latest estimates are thatI will pay an additional 48¢for every $1 of payroll.That’s why I want to classifythis new hire as anindependent contractor.

What makes an individual anindependent contractor isusually determined bycommon law, the decisionsof the courts and the FairLabor Standards Act. Inaddition, several states,including Pennsylvania andMaryland, have passedlegislation to clarify who isan “independent contractor.”

On Feb. 10, 2011, Act 72 took effect in Pennsylvania.Act 72 has a narrowdefinition of “independentcontractor.” No individualmay be classified as anindependent contractorunless the individual:

1. Has a written contractto perform constructionservices with thebusiness or person;

2. Is free from control ordirection over theperformance of theseservices; and

3. Is customarily engagedin an independentlyestablished trade,occupation, professionor business.

An individual is “customarilyengaged in anindependently establishedtrade, occupation, professionor business” only if:

1. The individualpossesses the essentialtools to perform theservices independent of

the business for whichthe services areperformed.

2. The individual mustrealize a profit or suffera loss for the project.

3. The individual musthave a proprietaryinterest in the business.

4. The individual musthave a businesslocation separate fromthe business or personfor whom the servicesare being performed.

5. The individualindependentlyperformed the sameservices for anotherperson, or wasavailable and able toindependently performthese services foranother person andrepresented that theseservices could beindependentlyperformed for another person.

EMPLOYEE OR INDEPENDENT CONTRACTOR?

In Maryland, the Workplace Fraud Act of 2009 took effect on Oct. 1, 2009. ThisAct, also known as HB 819, defines an“independent contractor” as an individual who:

1. Performs services free fromdirection and control over themeans and manner of providingthe services, subject only to theright of the person or entity forwhom services are provided tospecify the desired result;

2. Furnishes the tools and equipmentnecessary to provide the service;

3. Operates a business that isconsidered inseparable from theindividual for purposes of taxes,profits and liabilities:

a. In which the individual:

(1) Owns all of the assets andprofits of the business; and

(2) Has sole, unlimited personalliability for all of the debtsand liabilities of thebusiness, unless thebusiness is organized as asingle-owned corporateentity, to which sole,unlimited personal liabilitydoes not apply; and

b. For which:

(1) The individual does not paytaxes for the businessseparately but reportsbusiness income and losseson the individual’s personaltax return; and

(2) If the business is organizedas a corporate entity andthe individual otherwisequalifies as an exemptperson under thissubsection, the individualfiles a separate federalinformational tax return for the entity as required by law;

4. Exercises complete control overthe management and operationsof the business; and

5. Exercises the right and opportunityon a continuing basis to performthe services of the business formultiple entities at the individual’ssole choice and discretion.

Delaware Code – Section 2311 discussescontractors, subcontractors andindependent contractors, but does notstipulate who is or is not anindependent contractor. A recentDelaware court decision was based on a “time, manner and method” rule.If the owner maintains control over thetime, manner and method ofperforming the work, then anemployer-employee relationship exists.

If I and the new hire can satisfy the Pennsylvania or Maryland statute, or I don’t exercisecontrol of time, manner andmethod in Delaware, then thatindividual is an “independentcontractor.” Now I don’t have to worry about workers’ compensation, and I’m not liable fortheir actions, right? Not necessarily.

Did I have the independent contractorsign an indemnification agreement andagree to save and hold me harmless forcertain losses? Did I require thatindependent contractor to purchaseand maintain workers’ compensationand liability insurance?

If that independent contractor doesn’thave workers’ compensation insurance,I’m on the hook – premiums andclaims. If I don’t require theindependent contractor to hold meharmless, purchase liability insuranceand add me as an additional insured, Ivery likely will be held vicariously liablefor the contractor’s actions.

Have I really gained anything by usingan independent contractor instead of anemployee? Not much, if the contractoris uninsured or underinsured.

Y’all take care!

Read moreMembers have access to theIA&B Producer AgreementToolkit, which includes asection on employeeclassification. The state-specificresource provides guidelines fordifferentiating between anemployee and an independentcontractor, as well as a warningabout recent challenges to theindependent contractor status.

Access is free but limited tothose members designated asagency administrator in theIA&B database.

www.iabgroup.com/PAtoolkit

Insure theemployeerelationship

Decided to use the “employee,”rather than “independent contractor,”classification? Then let Jerry Miltonwalk you through the obligations and liabilities of hiring an employeein his fall 2012 “Employment

Relationships: Are Both SidesCovered?” seminar. He willreview exposures and discussthe necessary policies toaddress each during his

tri-state tour.

Registration is open.

www.iabgroup.com/Milton

[ 9 ]

Tools Y O U C A N U S E

[ 10 ]

HR SOLUTION©

In a small yet bustling independent agency, management often pushes HR to the back burner. Andthat’s a sure-fire way to land an agency in hot water. IA&B members have access to a simplifiedsolution — HR Solution. The compilation of products and services easily allows members to build

or improve their HR program.

Launched in 2008, the resource has been updated and refined as laws and regulations took affect,and as members and the association’s contracted HR consulting firm provided feedback.

www.iabgroup.com/HR

HR Solution is a free member benefit, but access is limited to those listed as agency administrators in the IA&Bdatabase. To add administrators, contact IA&B’s Member Service Center at 800-998-9644, option 0.

State-specific audit Administrative guide

Associate handbooktemplate

Discountedprofessional services

Administrative tools Consultation services

Date Topic Location

10 CISR—Commercial Casualty Course Lancaster, Pa.

Consequences of a Property Loss Seminar Baltimore, Md.

11 Consequences of a Property Loss Seminar Newark, Del.

17 CISR—Commercial Casualty Course Altoona, Pa.

17-19 P&C Licensing Study Course Pittsburgh, Pa.

18 William T. Hold Seminar Frederick, Md.

18-19 James K. Ruble Graduate Seminar Allentown, Pa.

19 William T. Hold Seminar Newark, Del.

24 CISR—Commercial Casualty Course Salisbury, Md.

CISR—Agency Operations Course Wilkes-Barre, Pa.

25 CISR—Commercial Casualty Course Baltimore, Md.

CISR—Agency Operations Course Reading, Pa.

31 CISR—Commercial Casualty Course Pittsburgh, Pa.

Glance at EventsJ U L Y C A L E N D A R

[ 11 ]

Jerry Milton Seminar SeriesThe Consequences of a Property Loss

The “consequential” losses in a covered property claim come in avariety of forms and may or may not be covered by policyendorsements. In this seminar, Jerry sorts it all out through his vastknowledge of coverages and his unique ability to offer anecdotes thatmake it more meaningful for the class.

Dates/LocationsJuly 10 Baltimore, Md. July 11 Newark, Del.

August 1 Allentown, Pa. August 15 Philadelphia, Pa. August 21 Pittsburgh, Pa.

Read more atiabgroup.com/Milton

AGENCY MANAGEMENT

How to make the righthiring decisionQ&A with a recruiter

Hiring can be a nerve-wracking — andexpensive — proposition.Here, staff from Mosteller & Associates,IA&B’s contracted humanresources consulting firm,offer expert answers to10 common recruitingquestions. The end goal?Efficient, cost-effective andsuccessful hires.


Hiring a new member to join your agency can be astressful experience. Will I find someone that has theskills I need? Will the new employee fit in with theothers in the office? Have I learned enough about the

candidate to make a sound choice?

The recruiting and hiring process is similar to any developingrelationship. The goal is finding someone that brings theright mix of skills, abilities and friendliness to your agency tomake the work relationship prosperous and worthwhile.

I had the opportunity to interview one of our associates atMosteller & Associates, Ron Bolam, who specializes inrecruiting for senior management and executive positions.Ron shared the techniques, challenges and changes inrecruiting over his 20-year career.

Jeff Gerhart: How do you know what you’re lookingfor in a candidate?Ron Bolam: It’s important to identify the essential functionsof the position, whether or not you have a job description.You should articulate the primary functions to clarify the roleand to define the qualities of the candidate, includingeducation and skill set, needed for the job.

The hard part is defining for the candidate what would be agood fit for the culture of your agency. You should build yourinterview questions around the profile of the job and vary thequestions based on the position.

You should decide how much or what type of informationabout the agency will be shared with the candidate. Will youreveal any financial data, future plans for growth,opportunities for advancement or history of the agency?

JG: What sources do you access to find candidates?What’s one of the best resources, or does it dependon the position being recruited?RB: Recruiting needs to target specific markets for different positions. Some jobs are best advertised in localnewspapers; other positions produce more candidates ifposted on CareerBuilder or Monster. However, LinkedInseems to provide great access to potential candidate pools, especially among professional-level candidates. By building accurate search criteria and sending your need,you can gain access to groups of employees that sharesimilar traits or work experiences.

Of course, face-to-face networking still provides valuableaccess to qualified applicants. While one method may workbetter in certain circumstances, sound recruiting requiresthat all access methods be used and engaged.

H U.S. News Best Jobs 2012#27: insurance agent

“The Bureau of Labor Statisticsprojects insurance agent employmentgrowth of 21.9 percent between 2010and 2020. That’s an addition of90,200 new jobs and 94,200replacement jobs. There were 411,500insurance agent jobs in 2010.Demand for these positions is directlylinked with population and economicgrowth. As the commercial andconsumer markets continuerecovering from the recession,expanded opportunities for insuranceagents will appear.”

Source: money.usnews.com/careers/best-jobs/insurance-agent

Are you LinkedIn?Join IA&B’s LinkedIn group

to expand your network online.

www.iabgroup.com/soc_media

[ 13 ]

JG: What steps can betaken to narrow thenumber of candidates?RB: Utilizing soundbehavioral testing … [seesidebar for IA&B-memberdiscounts on employeeassessment services] canenhance the recruitingprocess. Other tests areavailable in the market aswell, but the tests usedshould focus on the type ofposition being recruited.Generally, the higher the levelof responsibility, the morebenefit behavioral testingwould provide. As well,background and creditchecks can contribute toimproving your selection.

[Note: Federal law (VCCLEA)prevents those convicted of acertain felonies from workingin the industry withoutwritten permission from thestate Insurance Department.This necessitates backgroundchecks. Members can readmore on the requirement andhow to comply by visitingwww.iabgroup.com andselecting Agency Operationsand then EmployeeManagement. From there,resources are available byclicking the BackgroundChecks quick link.]

JG: Are there key types ofquestions to ask?RB: Much of your applicantscreening can occur over thephone if you prefer. This iswhere a standardized list ofquestions can help youdecide whether to move the

candidate to the next level ofinterviews. You should verifythe candidate’s work history,account for any gaps inemployment, examine thereasons why the candidateleft previous jobs and gaugetheir educationalbackground, degrees andacquired skills. Someorganizations use aproprietary interviewquestionnaire that helpsidentify value and ethicalcharacteristics of candidatesat this stage.

The next level of interviewshould be in person andfocus on behaviors. Askingopen-ended questionsaround ethics, personalchallenges on the job andhow they were overcome,management style andconflict resolution can revealimportant information aboutthe candidate’s fit into youragency. Key to this iswatching body language, eyecontact and how questionsmay be rephrased that cangive insight into thecandidate. You shouldexplore the candidate’sstrengths as well asdevelopmental areas that areimportant to him or her andto your agency. Avoidaccepting yes or no answers;take the time to dig deeper.

JG: Are there certainpeople I should contactfor a reference check?RB: Talk to prior managers,peers and subordinates to theextent that you can. You

AGENCY MANAGEMENT

[ 14 ]

Employeeassessment servicesProfiling services can prove useful with new hires, internalpromotions, teambuilding and even agency perpetuation.IA&B members enjoy discounted access to assessment services.

www.iabgroup.com/pa/hiring_managing/profiling

www.iabgroup.com/md/hiring_managing/profiling

www.iabgroup.com/de/hiring_managing/profiling


want to hear perspectives fromdiffering viewpoints in order toget a more complete picture ofthe candidate. It will helpvalidate the information youhave learned from the candidate.Personal references should beavoided, unless the candidatehas no significant workexperience in his or herbackground.

JG: What do you recommendemployers do to improvetheir recruiting and hiring?RB: Train interviewers inbehavioral-based interviewtechniques. It is an investmentthat can pay great dividends inimproving your hiring decisions.It can also be beneficial to havetwo agency members participatein a face-to-face interview; oneto ask questions and engage thecandidate, the other to recordinformation and observe thecandidate’s response. This dualmethod of interviewing helpsothers in your agency to learn orimprove interviewing skills.

Plan who will ask whichquestions if two or moreemployees or managers are tointerview the candidate. Withoutplanning, multiple interviewersmay ask similar questions, andthe candidate may walk awayfrom the interview wonderingwhat value was gained. Priorplanning helps you decide whowill focus on what questions,and the experience will revealmore information about thecandidate, and the candidate willbenefit by learning more aboutyour agency.

Conduct de-briefing sessionswith the other interviewers. Ithelps to consolidate information,to determine whether thecandidate remains viable, and to

identify information gaps thatmay require follow-up with thecandidate.

Treat candidates as though theyare potential customers.Returning their phone calls ifthey check on their status keepsthem engaged, even if youdecide not to offer the positionto them. After all, they may walkinto your agency later and askfor insurance coverage or refersomeone to you. It can helpdifferentiate you from yourcompetitors if former candidatesspeak positively about theirexperience with you.

[ 15 ]

At Harford Mutual, we’re committed to being here for our independentagents and policyholders. Accessible. Experienced. Accountable. Responsive. That’s Harford Mutual. That’s what mutual success is all about. Learn more about opportunities for mutual success with Harford Mutualat harfordmutual.com.

“Treat candidates as

though they are potential

customers. Returning their

phone calls if they check

on their status keeps

them engaged, even if you

decide not to offer the

position to them.”

Maintain a robust website thatfacilitates recruiting. Is informationabout your company easy to view?Do you have a career section thatallows for direct submission of an application? You should designa process that makes it easy andfluid for a candidate to apply.

JG: What should I do after thejob offer is accepted? Are thereany risks?RB: The recruiting process does notstop after an offer is made. There area number of challenges that maythwart your hiring efforts if you stopbeing engaged with your candidate.If the candidate is currentlyemployed, the employer may exertpressure to entice him or her to stay:offering better pay or a promotionthat was stalled, a different reportingrelationship or more flexibility ofschedule, or addressing a personalneed. You should consider whetheryou have the ability to counter alater rejection of your offer by thecandidate, or if you have sufficienttalent in your candidate pool thatyou can move to your next choice.

JG: Are there any talentedcandidates in the workforce I may overlook?RB: Yes, those who are out of workthrough no fault of their own. Withunemployment reaching some of thehighest levels in recent years, there are many experienced, high-performing individuals who hadno control over their employer’sfinancial position. Yet, there may beperceptions among hiring managersthat these candidates were somehowresponsible for their job loss. This iswhere utilizing sound interview

[ 16 ]

Get reacquainted with HR Solution©

HR Solution is a comprehensive collection of humanresources products and services, designed exclusively for IA&Bmembers. The tools help agencies to establish or improvetheir human resources program.

Components include:

w A state-specific audit to determine current complianceand future priorities

w A customizable employee handbook

w An administrative guide and tools to help agencymanagement implement policies

w Access to services and discounts from Mosteller &Associates, IA&B’s contracted HR consulting firm

Access to HR Solution is free but available only to memberslisted as agency administrators in IA&B’s database. (Additionaladministrators can by added by contacting IA&B’s MemberService Center at 800-998-9644, option 0.)

www.iabgroup.com/HR

AGENCY MANAGEMENT

[ 17 ]


techniques and background checks can vet potentialcandidates and remove unintended hiring biasesfrom your agency.

JG: What has changed in recruiting over thepast 10 to 15 years?RB: Recruiting has become more competitive.Candidates are better prepared for interviewing, and managers need to do a better job of screeningfor talent. It has become harder to find goodcandidates. There must be incentive or a valueproposition for candidates to change jobs. Saiddifferently, employers must answer: How willworking for the new agency improve my standingover my current employer?

Social media is becoming a bigger part of therecruiting process. As mentioned earlier, LinkedInprovides a valuable resource for recruiting, as doFacebook and Twitter. Generally, those candidateswho are more adept at accessing social media aremore willing to and can respond more quickly to job openings in those media than via moretraditional methods.

And candidates appear to no longer have as strong of a loyalty to employers and are willingto consider employment opportunities as theybecome aware of them.

JG: How can HR Solution© help?RB: Resources are available through IA&B’s HRSolution to help facilitate your hiring process. Inaddition to employment assessments discountedthrough your IA&B membership, you can access theHR Solution Administrative Guide which containsguidelines, forms and suggestions for conductinginterviews, screening and reference checks, and for writing offer letters of employment.

_________________________________________________

Jeffrey W. Gerhart, CEBS, MBA, provided this article onbehalf of Mosteller & Associates, IA&B’s contracted humanresources consulting firm.

IA&B members have access to HR Solution©, a compilationof products and services to help them establish or improvetheir human resources program. Included are base-levelconsultation services and discounted professional servicesfrom Mosteller & Associates. Learn more atwww.iabgroup.com/hr.

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Just before noon on Sept. 29, 2010,flames shot through the roof of thehistoric Gage Mansion in Huntingdon,

Pa. The property houses two businessesowned and operated by Ann Marie“Annie” Wishard, and both are insured byMutual Benefit.

Mutual Benefit Group’s assistant vicepresident of commercial lines, BeverlySkopic, was on her way to lunch at thetime the fire broke out. “I was walkingby when I felt a wave of extreme heatand saw the windows explode from thebuilding’s third-story turret.” Beverly,who for 30 years has helped managethe very department that currentlyprovides insurance coverage for theGage Mansion, found herself in aposition to help her customer in a wayshe had never imagined...she was one ofthe first to call 9-1-1 to report the fire.

Minutes later, Mike Snare, a multilineclaims supervisor with Mutual Benefit,left his desk a block away and hurried tothe site. As Annie put it, “Mike stoodbeside me from the moment wewatched the building burn to themoment we opened our doors to thecommunity for a tour of the 16-roomrestoration. Through it all, Mutual

Benefit and my insurance agent (CentralInsurers Group, State College, Pa.)treated me like family.”

Annie’s story illustrates the powerfulbenefit that comes from dealing with astrong, caring regional insurancecompany and an experiencedneighborhood independent insuranceagent. Mutual insurance companies likeMutual Benefit and the independentagents who represent them have beenpart of many communities forgenerations. Such companies and agentsreally are friends and neighbors andoften are indeed literally just around thecorner when crisis strikes.

Agents who have qualified for MutualBenefit’s Inner Circle agency recognitionover the years maintain that insurance isa relationship business, and that theyowe their success to solid relationshipswith their clients and carriers.Commented one agent, such success ismade easier with an “excellent”company like Mutual Benefit: “MutualBenefit is a company you can still talk to.Unlike many national and regionalcarriers, Mutual Benefit still underwritesby looking at the features of theindividual risk, rather than seeing it

merely as part of a generic class. And it’s a company that makes it veryeasy to do business while providing topservice.” Remarked another: “Werepresent eight carriers in our office,and right now, MBG is a leadingcompany. That’s largely due torelationship. We appreciate our localrepresentative, Patrick Bangs, and haveworked with many of the sameunderwriters year after year. MBG is acompany where I can speak directly withtop management.”

Bangs, who has served as MutualBenefit Group’s vice president of fieldoperations since 2001, remarks, “Inthese ever-changing times, MutualBenefit Group remains committed to theindependent agency system. To that end,the independent agent is our soledistribution source. Our field staff liveand work in the territories served,enabling in-depth knowledge and a highlevel of service to agents on a consistentbasis. At MBG, nothing happens until asale is made — those sales are made byour agents. For now and in the future,the entire MBG staff is dedicated tomaking production for our company apositive and profitable experience.”

FEATURED PARTNERMutual Benefit Group

CHIEF EXECUTIVE OFFICERSteven C. Sliver, President and CEO

COMPANY LOCATIONHuntingdon, Pennsylvania

A.M. BEST RATING “A-” (Excellent)

WEB SITEwww.mutualbenefitgroup.com

Insurance Agents & Brokers proudly recognizesMutual Benefit Group as one of its Platinum Partners.IA&B Platinum Partners dedicate the highest level ofsponsorship to our organization.

Mutual Benefit’s Senior Marketing Representatives Larry Kiser (left) and Todd Heisey live and work inthe territories they serve, bringing a high level of knowledge and service to the agents they support.

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

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

Thank you for your continued sponsorship.

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

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

GOLD LEVELProgressive Westfield Insurance

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

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance House

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent July 2012

AGENCY MANAGEMENT

Building a culturethrough recruiting and retention

Prioritizing and understanding your agency’s culture can pay dividends — think: smarter hiring and a satisfied workforce. On the following pages, Dave Coons looks at the role of culture in recruitment and retention.

[ 21 ]


The estimated cost of disengaged workers is astartling $300 billion in lost productivity annually¹.Fierce competition necessitates a motivated,engaged workforce; and savvy organizations know

that the difference lies in a strong, positive company culture.

Company culture can dramatically influence anorganization’s success or lack thereof. In fact, studies haveshown that organizations with adaptive cultures that arealigned with their business goals outperform theircompetitors by up to 200 percent. Moreover, companies thatfoster an environment in line with their cultural goals boastturn-over rates up to 30 percent lower than their peers.

While company culture is undoubtedly crucial to anorganization’s success, it is often not given the attention itdeserves. Employer and employee interactions at all stages— from recruitment and on boarding through retention —play critical roles in the development and evolution of acompany’s culture.

Define company cultureCompany culture provides a foundation for the values thatemployees are expected to emulate and helps define thenorms for accepted behavior within an organization. Perhapsthe best indicators of company culture are its currentworkforce and team dynamics. This includes all of theunspoken rules regarding how people interact and howbusiness gets done. Company culture does not meaneveryone acts the same. Diverse opinions, communicationstyles and personalities collaborating to achieve onecommon goal are what contribute to an effective andsuccessful business environment. Employees learn andevolve by working together. The outcome of which is anorganization’s unique company culture.

To inspire change to the existing culture, a good place tostart is by revisiting the organization’s core values andmission and vision statements. Core values should serve asguidelines for proper office etiquette and work ethic. A clearmission statement should set forth a common goal, while thevision lays out a means for achieving that goal. Theorganization’s mission, vision and values must be woveninto the strategic decision-making process, and itsmanagement team must lead by example.

Other factors that contribute to company culture includemanagement styles, compensation and benefit packages,and reward and motivation programs.

T

While a candidate’s

knowledge, experienceand abilities are

important, the culturalcompatibility should also

be a focus during the

recruitment process….

¹ Gallup Management Journal. (2003) Study on Engagement

Recruit for culture fitAccording to a study by theSaratoga Institute, nearly onein three newly hired employeesleaves voluntarily orinvoluntarily before the end of his/her first year. These ill-conceived matches costcompanies an estimated 50 percent to 150 percent ofthe positions’ annual salaries.

While a candidate’s knowledge,experience and abilities areimportant, the culturalcompatibility should also be afocus during the recruitmentprocess from the initialattraction of applicants throughthe interview process andeventually the job offer.Employers must look for abalance between the skillsnecessary for the position andhow that person will fit in withthe existing team.

Culture fit is equally importantto potential candidates.According to Monster.com,college students would acceptan average of seven percentless starting pay to work forcompanies with cultures theyvalue and appreciate.

Re-evaluate job ads andposition descriptions. Do theydescribe company culture,including working environmentand company values? Aneffective description of acompany’s culture will helpattract ideal candidates, whiledeterring candidates whomight not be a good fit.

The interview stage is crucialin determining whether or not

a potential employee is theright fit for the organization.The behavioral interviewmethod is a good tool foruncovering past behavior andpredicting future behavior.

Many employers haveestablished structuredinterview procedures to helpdetermine if candidatespossess core competencies.Core values should beintegrated into each position’s“must haves.” Composeinterview questions that drawout values and characteristicsthat are important to theorganization.

Companies must place a strong focus on

retention, and tacticsshould reflect the company’s

values and the type ofwork environment it

wishes to create.

The interview setting is also anopportunity to get a sense forcandidates’ demeanors,including how they interactwith co-workers. Peerinterviews are an excellentopportunity to assess culturefit. Often candidates feel lessstress during peer interviewsand their personalities aremore easily discernible.Employees that are invited toparticipate in this processshould be company role

models. While the peerinterview should not be thedeciding factor, it offers keyinsights that the hiringmanager should consider andthat may play an important rolein the team’s dynamic.

Reinforce values through trainingMany factors play into thedevelopment of a desirablecompany culture, but asuccessful on-boarding processis one of the most influential.More than 75 percent of top-performing companieshave a formal on-boardingprocess in place for new hires.

Implementing a formal processensures that information isshared consistently throughoutthe company. All employeesshould have a clearunderstanding of thecompany’s mission, goals andexpectations from day one.Engage current employees inthe process. This will help newhires feel more connected withthe organization, while alsoreinforcing important culturalvalues with existing staff.

It is also important tounderstand each employee’scareer goals and createindividual development plans.By giving employees ownershipof the process, they will have agreater sense of their purpose.As they continue to advance,they will develop a deeperunderstanding of the role corevalues play in theorganization’s success.

[ 22 ]

AGENCY MANAGEMENT


Strengthen culture through retentionA good gauge of companyculture is how proudemployees are to be part of theorganization they belong to!

The management of employeesatisfaction speaks volumesand contributes to retention,employee engagement andproduction, as well as overalloffice morale. Companies mustplace a strong focus onretention, and tactics shouldreflect the company’s values and the type of workenvironment it wishes to create.

For example, if teamwork isimportant, then instituteweekly lunches or other team-building activities. If continuallearning is fundamental, thenhost lunch and learns or offertuition reimbursements. If thecompany wants to build aculture of promoting fromwithin, then sponsormentorship programs and jobshadow initiatives. Theultimate goal is to create anatmosphere where employeescollaborate with each other,are challenged to work hard,are accountable to themselvesand the team on a daily basis,and enjoy coming to work.

Employee recognition shouldnot be overlooked whenbuilding a retention strategy.An employee’s perceived valuehas a positive impact on workethic. According to a recentGloboforce Workforce survey,only 24 percent of U.S. workers

are satisfied with the level ofrecognition they receive, yet 69 percent believed they wouldwork harder if their effortswere better recognized!

Recognition does not have tobe monetary in nature.However, generationaldifferences may play a role inwhat recognition and rewardmean to the workforce.Recognition can be as simpleas a mention in the companynewsletter. Shortened summerhours, extra paid-days-off ortelecommuting opportunitiesare also great ways to provideincentives that promotework/life balance.

Company culture isevolutionary, and there willinevitably be natural variancesas an organization changesand grows. The key is tounderstand what contributes toa successful environment andto weave those characteristicsand values into the fabric ofthe organization.

_______________________________

Dave Coons is Senior VicePresident of The Jacobson Group,the nation’s leading provider oftalent to the insurance industry.He can be reached at (800) 466-1578 [email protected].

[ 23 ]

Samplecultural fitinterviewquestions

Describe a time when youdisagreed with a superior. Howdid you handle the situation?

What do you expect from apotential employer?

Tell me about an ineffectiveteam situation in which youwere involved? How did youaddress the problems?

Give me some examples of howyou might demonstrate respectfor your organization,managers, co-workers?

Describe a time when you hadto effectively assess and workthrough the politics of asituation in order to get your job done.

What did you do in your last job to improve your skills and performance?

Give me an example of a time when you had to make a quick decision with limitedinformation. What was the outcome?

?

?

?

?

?

?

?

Primary Agent | July 2012 TechnologyU P D A T E

LinkedIn (linkedin.com)needs to be a part of everyproducer's sales toolkit. Thissocial platform provides aneasy way to learn about,and reach out to, millions ofbusinesspeople (also calledprospects). In addition, allagency staff should create aprofile. Unfortunately, manyproducers, as well as staff,don't take full advantage ofthe site's capabilities eventhough most are free.

On the following pagesI'll share my toprecommendations — in fivesteps — for maximizingLinkedIn for networkingand, ultimately, makingsales.

Step 1: Creating aprofile — basicThe first step, if you haven'tdone so already, is to createyour LinkedIn profile andmake it an effective tool.

Your name: Use your“known as” name. My givenname is Stephen but I havegone by Steve for manyyears, so that is what I usein my profile and on mybusiness card.

Headline: Also known asTitle, this area provides youwith a great brandingopportunity. When anotheruser searches the LinkedInuser database, your name

FIVE STEPS TO MAXIMIZE LINKEDIN

STEVE ANDERSON

Steve Anderson provides

information to insurance agents

about how they can use

technology to increase revenue

and/or reduce expenses. He speaks

professionally to hundreds of

agents each year at National

Alliance events and at many state

association conventions and

technology forums on the future of

technology, the social Web and

how insurance agencies can

establish their internet presence.

He has authored many articles that

have appeared in virtually every

insurance industry publication. He

has over 30 years experience in the

insurance community. Learn more

at steveanderson.com.

[ 24 ]

and headline are the only thingsthey'll see before deciding whether toclick on your full profile. Make thisstatement count. “CommercialProducer” isn't much of a brandingstatement, but “Specialist in Protectingthe Financial Future of BusinessOwners” provides more focusedinformation.

Photo: Make sure you add a photo!Upload any decent-looking, digitalhead-and-shoulders photo. You don’tneed business attire for this shot. Justuse a photo that sends the message,“This is a professional person,”meaning (as you may have guessed)last year's beach vacation shots mightnot be your best pick.

Custom URL: Make sure yourLinkedIn profile bears your ownstamp in the form of a personalizedURL, like http://www.linkedin.com/in/TAAReport, if it is available. Youshould add this customized URL toyour email signature, on yourbusiness card and anywhere else youhave your information.

Summary: Here’s where you can tellyour own story. People buy frompeople, so use this freeform section toshow your personality. It’s OK to havefun with your LinkedIn summary. It'swhere you can speak to the reader(the person viewing your profile) in ahuman voice.

Employment history: It takes only afew seconds to upload your textresume to LinkedIn, and it will saveyou time creating the Work Historysection of your profile. You canamplify this field with your proudestaccomplishments or particularresponsibilities you want readers to

know about. It’s important to includethe dates (and employer names) foreach past assignment so LinkedIn canmatch you up with colleagues whohave worked alongside you.

Education: Including accurate dates inthe Education section of your profilewill make it easy for the LinkedIndatabase elves to match you up withclassmates who may be on LinkedInnow, waiting for you to reach out andrefresh the connection.

Contact: The “Contact [Person X] for”section toward the bottom of yourprofile is another great field because itforces you to think about what youwant from LinkedIn and from yournetworking in general. This is whereyou get to decide which types ofcontacts you want and don't want.Which conversations are you willingto have, and which ones are a wasteof your time?

Step 2: Creating a userprofile — advancedStep two will maximize your visibilityand networking prowess through yourLinkedIn profile.

Additional information: Your profile’sAdditional information field lets youround out the “Story of You” with the URL for your website and/or blog, your Twitter account, honorsand awards you’ve won, and yourinterests (the books you read, thesports you play or follow, or anythingelse you want to share). Remember,people buy from people they like.Sharing information about yourselfmakes you more human and provides additional networking pointsof contact.

Specialties: The Specialties section ofyour LinkedIn profile is another greatfield. You can use terms like“Commercial Insurance Sales” and“Risk Management,” but you can alsotalk about your Irish wolfhounds andsalsa dancing in this field. Prospectiveclients and employers want real, live,entangled, interesting people on theirteams. Business is personal thesedays, and your outside-of-workinterests (the ones you care to share, anyway) are part of yourprofessional persona.

Add sections: A powerful newLinkedIn feature is Add Sections,which lets you amplify your profilewith additional information about pastjobs, projects, organizationmemberships and more. Click on theAdd Sections link to preview thevarious enhancements you can maketo your profile just by providing a bitmore background.

Personal information: You can list as little or as much personalinformation as you want on yourprofile. It’s your choice.

Applications: This is a very powerfulfeature that allows you to addexternal information to your profileand have it updated automatically. Forexample, if you have a WordPresswebsite you can link the LinkedInWordPress application to your siteand have new content addedautomatically to your profile. Thereare several applications, and I couldwrite multiple articles about them, butfor now I’ll just say check them all out.


[ 25 ]

[ 26 ]

Step 3: Building a network — basicNow you need to begin the process ofactually building your network. Hereare five tips for connecting with thepeople you already know and are partof your existing networking group.Many of your existing contacts mayalready have a LinkedIn profile.

Connections: Look for the green AddConnections bar on nearly every pageof LinkedIn. Use this link to invitepeople you know to join your first-degree (people with whom you aredirectly connected) network. In mostcases you’ll need their emailaddresses. If LinkedIn gives you theopportunity (some invitation channelsdo, and some inexplicably don’t),change the standard boilerplateinvitation language to sound morelike your own voice. And you mightremind the person you are requestinga connection in the invitation how youknow them and/or where you meetthem. Be careful of sending invitationsto people who aren't expecting them— you could lose your invitationprivileges that way.

Colleagues: The Colleagues featurelets you quickly see which LinkedInmembers have worked with youduring your career. That’s incrediblyhandy because it can be easy toforget people, and you probably don’thave current email addresses forlong-ago colleagues.

Current clients: At a minimum youshould send a request to connect withcurrent clients. If it is a largerorganization, then you will want tosend a request to connect to everycontact at the organization.

Address book: If you have an addressbook on Gmail, Hotmail, Outlook oranother popular email application,you can download your entire contactlist into LinkedIn. Don’t panic —LinkedIn won’t send spam; it will justtell you which of these contactsalready have a LinkedIn profile.

Classmates: Just as the Colleaguesfeature does, Classmates lets youreconnect with people from your past.Invite people to join your network viathe Classmates channel with caution,because this is where LinkedIninvitation spam tends to congregate.As suggested above, a helpfulreminder in the body of yourinvitation can help refresh thememory of classmates you haven'tbeen in touch with for a while.

Step 4: Building a network — advancedThe tips in step four will help youbegin to use LinkedIn effectively byshowing you how to actively use thesite rather than sitting around waitingfor people to reach out to you. Tryone a day and build up your LinkedInchops from “novice” to “expert” statusin a short period of time.

People search: Use the People Searchlink in the upper right hand corner ofnearly every LinkedIn page. Using thequick-search feature may not be aseffective as the Advanced PeopleSearch. You can search the LinkedIn

database on every imaginable field,from a person’s name or industry tohis or her virtual proximity to you.Searching LinkedIn is a free and easyway to build up your prospectbusiness-intelligence and gatherinformation about them.

Companies: LinkedIn’s Companiesdatabase is another treasure trove ofuseful information for insuranceproducers. When you find a companythat interests you, click once to“Follow” that company and receiveupdates on its hires and other news.

Connections: Browse your first-degree connections’ connections(2nd Degree Connections) to findsomeone you’d like to talk to. Makesure you appeal to the recipient andaren’t just asking a favor. You canmake contact with the one-hop-awaynetworker using the “Get IntroducedThrough” function.

Answers: LinkedIn Answers is afeature that lets you ask and answerquestions among the massiveLinkedIn user community. You shouldbegin to explore using Answers toinquire about questions people haveregarding insurance. You should alsorespond to queries posted by otherson insurance related topics.Answering and posting your ownLinkedIn questions adds to yourunderstanding of various topics andincreases your networking visibilityand credibility.

Groups: LinkedIn Groups aremagnificent idea-sharing andnetworking tools because they bringtogether subsets of the overallLinkedIn population, making it easy toconverse and view one another’sprofiles. Some Groups requireapproval from the moderator to join.

Join IA&B’s LinkedIn group,accessible from

www.iabgroup.com/soc_media,to discuss trends and

network with colleagues.

TECHNOLOGY UPDATE

Updates: Just like other social platformslike Twitter and Facebook, LinkedInupdates keep your network current onwhat's new in your life and work.Remember, your audience is otherbusiness professionals. Your updatesshould not sell! They should providegood information.

Recommendations: LinkedInrecommendations are an essentialpiece of the online networking-and-branding puzzle, but they require a bitmore thought and care. It’s possible toask people to recommend you onLinkedIn, but I recommend endorsingothers first and letting them return thefavor for you (LinkedIn prompts themto endorse you once you’ve completeda Recommendation for them).

You must have a first-degreeconnection with someone in order toendorse them. Make sure yourendorsements are pithy and specific.The presence of Recommendations onyour LinkedIn profile improves yourresults in database searches ... andLinkedIn endorsements have their ownpower, especially if they're well-written.

Step 5: Claiming your agency pageWhether you work in a large multi-location agency with a well-knownname or in a small agency on MainStreet, a LinkedIn company page isanother way to show up on LinkedIn,and it's an opportunity for freeadvertising that you shouldn’t pass up.

To get started, you must have aLinkedIn account. Don’t worry aboutupgrading to a paid account at thispoint; a free account is all you need tostart a company page, or even to domost things an agency should do onthis social platform.

Choose a password that you’recomfortable handing out to employeesor contractors if they maintain yourcompany page, or change it if youalready have a profile.

If there are more than two agencyemployees who have listed the agencyin their profile, LinkedIn willautomatically create a basic page.Search for the agency name in“Companies.” Once you are on theagency page you can click the “AdminTools” button on the right side of thepage to edit the information. In the editmode you will be able to upload yourlogo, add a description of the agency,your blog’s RSS feed and, mostimportant, your company specialties.

Cutting and pasting your entire “AboutUs” section from your website isn'trecommended if it’s wordy. OnLinkedIn, you should whittle thedescription down to one paragraph soit will be easy to read.

To post jobs in the Careers section ofyour agency page, you must have apaid LinkedIn subscription, and thenpay for a Gold or Silver career page.Paid subscription fees start at $26 amonth. This feature is likely of benefitonly to a larger agency; a smalleragency can get by with listing open jobson its own site and posting a statusupdate to its LinkedIn page when a newposition becomes available.

Next, you can add products andservices to your agency page under the“Products & Services” tab, but youshould add only major lines of businessyour agency writes. You can sendvisitors to your website for moredetails. However, don’t ignore this tab entirely (as many companies on LinkedIn do), since it helpsprospective clients find and understandyour agency.

LinkedIn also lets you add videos, namean agency contact, and insert lots ofother details. For example, you couldcall your service “Producer inNashville,” and assign the responsiblesalesperson. The contact needs to havea LinkedIn profile to participate, soencourage your employees to sign up ifthey haven't already.

Once you’ve entered a product orservice, “Recommend” and “Share”links appear beneath it. Ask loyalcustomers on LinkedIn if they won’tmind making a recommendation foryour agency, which will appear along with a link to their profile in the right-hand sidebar of your productor services page.

Now that you have edited your agencypage, ask employees to go back andedit their own profiles so that the newagency page appears. They can do soby clicking “Edit Profile” and thenclicking “Edit” beside their position atyour agency; once they start typing thename of the company, they can choosethe agency page. The benefit for you isthat visitors to their profile will be ableto click over to your agency’s page.

Finally, you can and should post statusupdates on your agency page. This is inaddition to the update you post on yourown LinkedIn profile page. Onlydesignated administrators can post onan agency page from within LinkedIn.

Wishing you much success using LinkedIn!

Reprinted with permission of Steve Anderson. Subscribe to Steve’s weekly TechTips athttp://www.SteveAnderson.com.


[ 27 ]

Atlantic Specialty Lines Inc. . . . . . . . . . . . . . . . .7

Brokers Surplus Agency . . . . . . . . . . . . . .17, IBC

Guard Insurance Group . . . . . . . . . . . . . . . . .IBC

Harford Mutual Insurance Co . . . . . . . . . . . . . .15

IA&B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .IBC

IA&B Partners Program . . . . . . . . . . . . . . . . . . .19

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

Preferred Property Program . . . . . . . . . . . . . .IFC

PennPRIME Insurance . . . . . . . . . . . . . . . . . . .IFC

Ad Index

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[ 28 ]

Many in the industry are quick to quip that they landed in insurance by accident — but stayed by choice. The same can’t be said for these celebrities, who left the business as soon as the opportunity presented itself.

Mark BurnettThe producer of “Survivor” and creator of “The Apprentice”worked in an insurance firm for two years before leaving to sellT-shirts (and, later, become a TV mogul).

Tom Clancy The novelist owned the O.F. Bowen Agency and later bought hiswife’s grandmother’s insurance agency before turning his focusto military thriller novels in the ‘80s.

Colonel SandersThe founder of Kentucky Fried Chicken worked as an insurancesalesman — as well as a “steamboat pilot, railroad fireman andfarmer” — before focusing on fried chicken sales.

Anne RiceThe author of “Interview with the Vampire” spent her pre-novelist days as an insurance claims processor in San Francisco.

Bruce JennerThe decathlete sold insurance to support himself while trainingfor the 1976 Summer Olympics.

Source: PropertyCasualty360.com

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

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Documents

Primary Agent - July 2012 - DE Edition