PENNSYLVANIA

INTHISISSUE:____________

Earthquake insurance shakes up sales

How one coastal agency weathered Hurricane Irene

IA&B offers businesscontinuity tool

Valley Forge Service Branch: 800.333.3622 | Home Office: Des Moines, IA www.emcins.com

© Copyright Employers Mutual Casualty Company 2011 All rights reserved

I’m celebrating our 100th year by planning for our next 100 years.

Jason Bogart, CPCU, ARM, Vice President of Branch Operations

Our future will be marked by the relationships we forge with you—the independent insurance agents who represent us. You’re the reason we’ll continue to investigate new market opportunities. Why we’ll develop competitive products. Why we’ll maximize the use of new technologies. Why we’ll emphasize ongoing professional development for our staff. By helping you profitably and efficiently grow your agency, EMC Insurance Companies will continue to serve you and your customers today and well into the future.

Shaking up sales with earthquake insurance

It was Aug. 23, 2011 when many of us on the East Coast, for the first time, felt theearth move under our feet. But more than the physical, this earthquake impactedthe psychological.

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How one coastal agency weathered Hurricane Irene

When disasters strike, clients look to their insurance agency for assistance andreassurance … which makes an agency’s own disaster preparation paramount.This article chronicles an independent agency’s experience with — and lessonslearned from — Hurricane Irene.

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Hope for the best, prepare for the worst

Members should think about the unthinkable — and prepare with IA&B’sEmergency and Business Continuity Planning Manual.

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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 EditorMechanicsburg, PA 17055-0763Phone 800-998-9644 or 717-795-9100 Fax 717-795-8347

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

Postmaster: Send address changes to above address.Primary Agent (ISSN 1543-3110), Permit # 638-620, Issue # 2012-2) 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 Events17 IA&B Partners26 Technology Update28 Advertisers Index28 Classified Ads28 Last & Least

In every issueMission Statement

Primary 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.

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.

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

A recipe for disaster preparation

What may (finally!) turn the market hard may first test thestrength of independent agencies: natural disasters.

2011 broke records across the board — and across the globe —for Mother Nature’s wrath. Don’t believe me? Then turn to page 8 and peruse the “highlights” of the past year in Mr. Milton’s column.

Record-breaking wildfires? Check.

Costliest tornado in U.S. history? Check.

Historic flooding along the Mississippi River? Check.

And certainly our home states of Pennsylvania, Maryland andDelaware didn’t come through unscathed. We survived anearthquake, hurricane, tropical storm and “freak” Halloweensnowstorm, to name just a few.

So here we are, already teetering on the cusp of springtime andthe severe storms, snowmelts and flooding it typically brings.

I encourage you to seize the calm before the storm and utilizeIA&B’s Emergency and Business Continuity Planning Manual. It’sfree to members. And it, alone, is worth the cost of membership.After all, what value do you offer customers if your agencyflounders when they need you the most?

My best to you — no matter what tomorrow brings.

Bob

Editor’s note: Learn more about the emergency planningmanual at www.iabgroup.com/epm.

Member FAQ

ANSWER:The National Flood Insurance Program (NFIP) policy

The issue of “two or more properties” has beendiscussed on numerous occasions, and the answer hasbeen that in this case, property refers to land, meaningthe flood water from any source has spread over twoparcels of land (properties). Consequently, it does notrequire that two buildings be affected, but only that thewater involve two separate parcels of land. With thatinterpretation, the damage by water from the neighbor’spool would most likely affect the pool owner’s and theneighbor’s property (land) and therefore be considereda general condition of flooding, even if only one buildingwas actually affected.

Let’s refer back to the language: Under the NationalFlood Insurance Program, the definition of flood is:

“(1) a general and temporary condition of partial orcomplete inundation of (a) two or more acres ofnormally dry land area, or (b) two or more properties(one of which is your (the policyholder’s parcel of landthat is the location of the insured building and/orcontents) property) from:

i) overflow of inland or tidal waters;

ii) unusual and rapid accumulation or runoff ofsurface waters from any source, or

iii) mudflow.”

If your insured has a flood policy, coverage would likelybe triggered by the accumulation or runoff of water onboth properties.

The Homeowners’ policy

You are correct: To trigger the neighbor’s HO policy,negligence must be proven. If your insured does nothave a flood policy, he will have to prove negligence tobe indemnified by the pool owner’s HO policy.

IA&B’s flood expert, M. Rita Hollada, who contributed theanswer to this FAQ, commented that she has seen thistype of claim on three occasions, and only once was theflooded neighbor able to find relief from the poolowner’s HO Section II – Liability.

DO YOU HAVE A QUESTION? Email it to us at iab@iabgroup.com. 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: One of our insureds is wondering if he would be covered if hisneighbor’s above-ground pool leaked and flooded his property. My homeowners’ (HO)carriers state that the loss would be excluded under “runoff of water” and the neighbor’spolicy would not respond under liability unless negligence was shown. The NFIP advisedme that unless two or more properties are affected, a flood policy also would not respond.Any thoughts?

State NewsPrimary Agent | February 2012

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Plan your trip to D.C.for this year’s NLCIt’s hard to walk through the Capitol inWashington without bumping into alawyer. But what about an insurance agent?There are nearly three dozen formermayors, two dozen health careprofessionals, two former pro-athletes,three ranchers … and exactly zeroindependent insurance agents.

Your voice is needed on Capitol Hill morethan ever as issues that affect you – suchas health care reform and the creation of

the Federal Insurance Office – arebeing considered by legislators whocan’t easily relate to your job as anagent. Join IA&B at the IIABA NationalLegislative Conference, April 25-26 inWashington, D.C.

You’ll be briefed on the issues by theIA&B and IIABA government affairsteams and then mingle with some locallegislators on Wednesday, before

heading out the next day for your visits.

What’s in it for you? Besides the intrinsic value of being moreinvolved in our democratic legislativeprocess, IA&B picks up the tab for yourregistration, one night’s hotel stay anddinner on April 25. Your only costs aretravel expenses getting to and fromWashington and any extra meals orhotel accommodations.

Space is limited and spots are filled ona first come, first served basis. Reserveyours today!

Register: http://www.iabgroup.com/pdfs/pol_act_ctr/pac/NLC2012.pdf

The tax mancomethIf you received a letter from the InsuranceDepartment about non-compliance withstate taxes, take heed. Since most licensinglaws contain provisions allowing theregulator to withdraw someone’s licensefor “failure to pay state income tax” or notdisplaying proper “financial responsibility,”any error could turn ugly fast. TheDepartment of Revenue has asked all stateagencies, including the InsuranceDepartment, to facilitate collection of taxesby using an incentive: the threat of losingthe license if the matter is not resolved.

Approximately 20,000 letters were sent bythe Department of Revenue to all types oflicensees (including insurance licensees)based on information contained in – ormissing from – their databases.

What to do?� If the letter is addressed to anindividual producer, it is likely a stateincome tax issue, sometimes simplycaused by a failure to update anindividual’s marital status.

� If the letter is addressed to the agency,it could stem from any other type oftax, including sales and use.

Members are advised to contact the officereferenced in the letter and clear the issue.Any questions should be directed to theDepartment of Revenue and not theInsurance Department.

Pa. Supreme Court:WC exclusion inviolation of publicpolicyThe Pennsylvania Supreme Court in arecent opinion ruled that it is notpermissible for an insurer to rely on aworkers’ compensation (WC) exclusion in an employer-sponsored auto policy toavoid covering an underinsured motorist(UIM) claim. The court held that theexclusion renders the UIM coverageillusory, as the insurer was receiving awindfall by charging a premium forcoverage which would almost neverattach, because virtually all UIM claims under the policy would be madeby borough employees eligible forworkers’ compensation.

Access IA&B’s legal brief on the case:www.iabgroup.com/heller_penn_prime

Disaster preparationtips for clientsShow your value as an independent agentby helping customers prepare for andprevent disasters. IA&B members haveaccess to consumer-safety articles viaTrusted Choice®, the IIABA nationalbranding campaign.

Run them in your agency newsletter,tweet them or post them to Facebook. The info is yours for the sharing.

Access articles:www.trustedchoice.com/agents (log in with your IIABA username and password and choose “Public Relations Articles”)

Small businessestargets for cybercrime, prospects forspecialty coverageOff-the-shelf anti-virus and data-encryption software are far fromfoolproof, and computer hackers know it. Citing a Verizon study of cyberattacks, The Washington Post recentlyreported that cyber criminals areincreasingly looking for softer targets like small- and medium-sized businessesthat may be less protected.

The data risk management experts cited in the Post’s report recommend thatsmall-business owners consider cyberliability coverage in addition to beefed-upsecurity. Members can better understandthe risks and related coverages of thisrapidly developing market by attendingIA&B’s upcoming seminar, Cyber LiabilityExposures and Solutions.

Learn more or register:www.iabgroup.com/cyberliability

New MembersW E L C O M E

Weaver Insurance Group of Elizabethtown

Elizabethtown, Pa.

Orange Star Insurance Agency LLC

Reading, Pa.

Boushell Insurance FinancialServices New Tripoli, Pa.

R D Farrah Insurance & Consulting

Punxsatawney, Pa.

York Independents IncWrightsville, Pa.

Sorella Insurance ServicesBlue Bell, Pa.

[ 5 ]

In memoriamMike Mayers, former owner of

Mayers Insurance Agency in Portage, Pa.,

passed away Dec. 31.Chairman of the PIA of

Pennsylvania, Maryland andDelaware from 1993-1994,Mike will be rememberedfor his contributionsto the association — and to the industry.

[ 6 ]

CURTIS M. PEARSALLCPCU, AIAF, CPIA

Curtis M. Pearsall, CPCU, AIAF,

CPIA, president of Pearsall

Associates Inc. and special

consultant to the Utica

National Errors & Omissions

Program, supplied this article.

Primary Agent | February 2012

While social media hasbecome a way of life on apersonal level, businesses arenow turning to this approachto get their message out andto tell their story. In manyrespects, it is redefining howbusinesses can marketthemselves. Whether youragency currently is usingsocial media or is toying withthe idea, there are somethings to consider:

Define your socialmedia goalsThere is tremendous power

in social media and manydifferent approaches to take.If you are considering socialmedia for a significant part ofyour marketing strategy, firstsecure useful resources fromthe Web or your favoritebook store. Look forresources that go into thedetails and benefits of eachof the possible approaches.

A solid first step is to writedown what you hope to gainfrom using social media andwhat you are trying toaccomplish. It is probably

best to start with a cautious,conservative approach.Jumping in with both feetmight sound exciting but maynot be as effective as youhope. Proper thought andplanning also could help youto avoid potential legal issues.

As you strategize, includethoughts and plans on youruse of the social Web. Yourpresence should not be static,looking today like it did 6months ago. While it shoulddemonstrate your agency’spersonality, you also want toprovide content that isvaluable to your differenttarget audiences. Education isoften one of the main goalsbusinesses strive for whenusing social media.

Let the guide be your guideDevelop a social mediaguide to ensure you have theproper procedures/controlsin place. This guide shouldinclude all media your staffmay use (email, face-to-face,online forums, chat rooms,blogs, etc.) and should be

CONSIDERATIONS FOR AGENCY SOCIAL MEDIA USE

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

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developed with input from humanresources, marketing and otherdepartments. Employees should beadvised of what they can and cannotdo – on behalf of the agency and ontheir own time. Make certain thatthey can’t – and don’t – reveal secretsor speak ill of the competition. Plus,make sure they realize they cannotpost private consumer information.Strongly communicate this to all employees and monitor it to thegreatest degree possible.

Education – a greatobjective Social media provides a trulypowerful means of deliveringcompelling content and providingideas and advice on a wide variety of topics. This will stronglybrand your agency as a reliableresource in that industry. Thisapproach can drive clients andprospects to some type of action:buying, subscribing, applying, etc.

This educational information needs to be constructed carefully and proofed for content, accuracy,professionalism and legality. Identifya focal person in your agency andrequire that all content be run by himor her for approval. This will helpensure that incorrect advice orincorrect statements are notinadvertently published.

Avoid posting inappropriate ordefamatory comments involvingspecific people or specificorganizations, as these could beexceptionally damaging to youragency’s reputation. It is important to understand that like email,correspondence via social media exists forever.

Advise your customers of social media’s role in the agencyNotify potential customers upfront inyour dialogue with them about thedo’s and don’ts of using social mediato communicate with the agency.Among the items to address:

� Customers should not make anypolicy-change requests orprovide key information viasocial media. Oftentimes, thisinformation is very sensitive andextremely private. Data breachand privacy laws need to beadhered to.

� Customers should be advisedthat they cannot bind, modify ordelete coverage via social mediaand must speak with anauthorized agencyrepresentative to do so.

Posting articles from otherson your siteIf you post or share articles on theInternet, make sure the material isfrom reputable sources. Whether youare viewed as an informationprovider or a content provider coulddetermine any potential liability.

Determine when to bring theconversation to the officeYou will have some potentialcustomers that want to do businesswith you because of your educationand expertise. Develop a procedurein your agency that identifies thepoint where the interaction betweenthe prospect and the agency shouldbe moved in-house and become partof the normal agency process.

Issues with the varioussocial media approaches

� Blog – Many organizations blogto market themselves andcommunicate their knowledge.

Blogging can be a great way toreach your target audience …but proceed cautiously to start.Strongly consider it if you havesomething to say and are goodat saying it. There also arenumerous forums available ifyou are looking for a moreinteractive approach. Again,proceed cautiously. Advise youremployees not to blog aboutsomething disclosed to them.Plus, while stretching the truthmay make for good content,don’t even consider it. Onceagain, comments made on the blog need to be accurate and proofread before they are posted.

� Facebook/Twitter/LinkedIn –Which one(s) works for you?Understand who the audience isand how they use the socialmedium. Furthermore, does itmeet with your organizationalgoals? With most of them, thekey is to make valuableinformation available.

There is tremendous power to social media. This can be of greatbenefit to your agency and to yourcustomers. But improper use canmake it your biggest headache. Yet through a well thought outstrategy and guide, it will be the tool that results in solid growth and a professional reputation for your agency.

CoverageC O R N E R

[ 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.

Primary Agent | February 2012

2011 will go down as arecord-breaking year fordisasters – both in the UnitedStates and worldwide. TheFederal EmergencyManagement Agency (FEMA)issued 99 major disasterdeclarations in 2011 forlosses incurred due totornadoes, floods, tropicalstorms and Hurricane Irene.The 99 declarations arenearly triple the average of34 per year dating back to1953. A major disasterdeclaration makes federalfunding available toindividuals and businesses inthe affected area.

In addition, FEMA issuedanother 29 emergencydeclarations for these naturaldisasters as well as 114 firemanagement assistancedeclarations for the forestfires that occurredthroughout the country,primarily in Texas andOklahoma.

Six of the FEMA majordisaster declarations affectedPennsylvania, Maryland and

Delaware. Five of the sixdeclarations were for thedamages caused byHurricane Irene and TropicalStorm Lee. The sixthdeclaration was for theflooding that occurred in the Pennsylvania counties of Bradford, Lycoming,Sullivan, Tioga and Wyomingin April 2011.

In January the NationalOceanic and AtmosphericAdministration (NOAA)announced that 12 separateweather/climate disastersoccurred in the United Statesin 2011, each of which causedat least $1 billion in damagesamounting to a total of $52billion in both insured anduninsured losses.

Some of these naturaldisasters were:

� An unseasonably early(Oct. 29-31) nor’easterthat caused 3 millionresidents to lose power

� 343 tornadoes thatstruck between

Alabama and Virginia inlate April, causing 321 fatalities (240 inAlabama)

� 199 tornadoes thatstruck the Southeast onApril 27, a record for asingle day

� Texas wildfires thatburned a record-breaking 1 million acres in Texas

� 19 tropical storms thatformed in the Atlantic,the third busiest seasonon record

� The costliest tornado inU.S. history that struckJoplin, Mo. on May 22,killing 158 and causing$3 billion in damages

� Triple the normalprecipitation plusmelting snow in theOhio Valley that causedhistoric flooding alongthe Mississippi River

� Hurricane Irene thatmade landfall in North

2011: A YEAR OF DISASTERS FOR INSURERS

[ 9 ]

Carolina and moved up the Mid-Atlantic Coast, causing 45fatalities and more than $7 billionin damages

According to an estimate by theInsurance Information Institute (III),direct insured losses could exceed $35 billion for the damages caused by the natural disasters of 2011.Obviously these disasters have had an impact on our insurancecompanies’ bottom lines.

Data from the III shows that the U.S. property and casualty insuranceindustry recorded $10.4 billion inunderwriting losses in 2010. Availabledata shows that for the first ninemonths of 2011 underwriting losseswere $34.9 billion, more than fivetimes the losses incurred during thesame time period in 2010.

Moreover, for the first nine months of 2011, the combined ratio – a keymeasure of losses and otherunderwriting expenses per dollar ofpremium – deteriorated to 109.9percent from 101.2 percent for thesame period in 2010.

The losses experienced in 2011 haveleft many insurers with lower capitallevels. Policyholders’ surplus totaled$538.6 billion as of Sept. 30, 2011,down 4 percent from $564.7 billion as of March 31, 2011. This creates anenvironment that possibly could affect rate increases.

Recent data from the Council ofInsurance Agents and Brokers showsthat commercial property and casualtypricing increased 1 percent on averagein the third quarter of 2011, versus flatprices in the second quarter of 2011and a 3 percent reduction in the firstquarter of 2011. The Risk ManagementSociety reported that prices for mostlines of commercial insurance in the

United States have begun to rise forthe first time since 2003.

The stage is set for further increases inpricing as low investment yields,increased property reinsurance costsand stabilizing capital positions willmake it difficult for the insurers tocontinue pricing their business belowcost. It appears that firming up their

pricing will be the only way for themto support their bottom line.

Will the market stay “soft,” or are welooking at the beginning of a “hard”market? Only time will tell.

Y’all take care!

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Tools Y O U C A N U S E

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FREE HOME INVENTORY APP

Insurance agents and carrierslong have sung the praises ofhome inventories. But nearly

half of consumers don’tinventory their possessions.

Welcome to 2012, where there’san iPhone — and Android — appfor that: myHOME Scr.APP.bk,developed by the NationalAssociation of InsuranceCommissioners (NAIC).

Give it a try and consider sharingit with your clients. Truly, it’snever been easier to create an inventory.

Find the free app in theiTunes App Store and

Android Market.

Select a room, then takephotos of items andscan bar codes.

Email or create an iBook backup. Learn more at

www.InsureUonline.org.

Still living smart phone free? The NAIC also offers a home inventory checklist as a PDF — for “old school” downloading and printing.

Type in purchase datesand prices to correspond

with items.

[ 11 ]

Date Topic Location

FEBRUARY 2012

1 CISR—William T. Hold Seminar Salisbury, Md.

2 Understanding Cyber Liability Exposures and Solutions Seminar Pittsburgh, Pa.

7 CISR—Personal Auto Course Philadelphia, Pa.

7-9 P&C Licensing Study Course Mechanicsburg, Pa.

14 CISR—William T. Hold Seminar Allentown, Pa.

CISR—Personal Auto Course Mechanicsburg, Pa.

15 CISR—William T. Hold Seminar York, Pa.

CISR—Personal Auto Course Reading, Pa.

16 CISR—Personal Auto Course Wilkes-Barre, Pa.

20-23 CIC—Personal Lines Institute Harrisburg, Pa.

21-23 L&H Licensing Study Course Philadelphia, Pa.

21 Understanding Cyber Liability Exposures and Solutions Seminar Mechanicsburg, Pa.

21 CISR—Personal Auto Course Allentown, Pa.

22 Understanding Cyber Liability Exposures and Solutions Seminar Allentown, Pa.

CISR—Personal Auto Course York, Pa.

28 CISR—Personal Auto Course Frederick, Md.

29 CISR—Personal Auto Course Wilmington, Del.

CISR—William T. Hold Seminar Pittsburgh, Pa.

Glance at EventsF E B R U A R Y C A L E N D A R

IFebruary is perfect for some TLC—Truly Local CoursesIA&B’s On-Demand CE options give you a quality learning experience without leaving youroffice, home, or wherever you can cozy up to a Web connection. It will be love at first loginwhen you register for any of these courses:� Understanding NFIP with Rita Hollada, CIC, CPCU, CPIA, AAI, CPIW� Ethical Behavior and E&O with Jerry Milton, CIC� Compliance Pitfalls and Ethical Responsibilities with Jason Ernest, Esq. and

Claire Pantaloni, CIC, CISR—Md.-specific (Pa. edition coming soon)

Start your on-demand relationship at iabgroup.com/on-demand.

COVERAGES

Shaking up sales withearthquake insurance

It was Aug. 23, 2011when many of us onthe East Coast, for thefirst time, felt the earthmove under our feet.But more than thephysical, thisearthquake impactedthe psychological.

[ 13 ]

Primary Agent | February 2012

The 5.8 magnitude earthquake branched out from itsrural Virginia epicenter and shook the ground as faraway as Georgia, Illinois and even Quebec. Damagewas minimal, particularly compared to recent

disasters in Japan and Haiti, but widespread — even affectingbuildings in New York City.

But more than the physical, this earthquake impacted thepsychological. Mid-Atlantic residents who often consideredthemselves immune from the West Coast concerns of faultlines and aftershocks suddenly had a brush with a naturaldisaster that, literally, could turn their world upside down.

____________________________________________________________

Mid-Atlantic residents who often considered themselves immune

from the West Coast concerns of fault lines and aftershocks suddenly had a brush with a natural disaster that, literally, could turn their world upside down.

____________________________________________________________

Crash course in earthquake insuranceEven in California, where the U.S. risk remains the highest,only about 12 percent of residents hold earthquakeinsurance. Along the East Coast, of course, policyholders aresignificantly less common, with many making the incorrectassumption that coverage is included in their standardhomeowners’, renters’ or business owners’ policies.

There’s no time like the present — especially with the fall2011 East Coast earthquake top of mind — to remind clientsthat an endorsement or separate policy is necessary to insurecoverage. And perhaps most importantly, offering coveragecan prevent future errors and omissions claims fromuneducated clients.

Understanding policiesEarthquake endorsement and policy premiums vary by thebuilding’s construction type, as various materials (brickversus wood, for example) react differently to earth

T Sinkholes raiseconcernsGround movement beyond ‘quakes

An emerging concern among thepublic, regulators and, apparently,legislators is sinkholes. Whichtranslates into an emerging market for producers.

Thanks in part to last year’s recordrainfall, a rash of sinkholes formedacross the Mid-Atlantic Region –swallowing cars, collapsing homes and raising the public’sconsciousness. And, as commonlyoccurs with uncommon perils,many affected insurancepolicyholders incorrectly assumedthat their standard homeowners’and business owners’ policieswould cover the damage.

Word of coverage confusionspread. In December 2011 U.S. Sen. Bob Casey (D-Penn.)even penned an open letter(which received extensive mediacoverage, of course) toPennsylvania InsuranceCommissioner Michael Consedine,imploring the InsuranceDepartment to educate consumerson the risk and the necessity ofsecuring coverage outside of astandard homeowners’ orbusiness owners’ policy.

Look for more on this topic in thecoming months — from clients,state regulators and IA&B.

TIP!Include a quote when offering

earthquake coverage to increase yoursales odds and your E&O protection.

Continued on page 15

COVERAGES

[ 14 ]

Disaster Central in actionDuring the months followingHurricane Irene and TropicalStorm Lee, IA&B members visited Disaster Central for NFIP claim-handling instructions,the latest FEMA disasterdeclarations and InsuranceDepartment notices, among other vital documents. Resources to assist membersduring future catastrophes will be added as needed.

Access to Disaster Central is anexclusive, complimentary amember benefit. View theresources online:www.iabgroup.com/disaster.

2011 was a catastrophe … natural-disaster wise. In response, IA&Bcombined its related member resources in one online repository:

Disaster Central. From one Web page, members can accessa proprietary emergency planning guide, client

communication tips, FEMA links and peril-specific resources.

TIP!Share this fact, fresh from a

University of Miami study: Hurricanescan help to trigger earthquakes.

Disaster Central

movement. Deductibles arepercentages, rather than a setdollar amount, and typicallyrange from 5 to 40 percent for commercial risks and 2 to 20 percent for residential.

Assessing riskThe U.S. Geological Surveyprovides state-specific seismichazard maps, most recentlyupdated in 2008. A visual canhelp clients determine their risk tolerance … and serve asdocumentation in the event of a lawsuit against the agency.

Access seismic hazard maps online:

www.iabgroup.com/de/earthquake

www.iabgroup.com/md/earthquake

www.iabgroup.com/pa/earthquake

Offering coverageEducation is crucial to sales —and errors and omissionsprotection. Client conversationsshould include:

� Explanation of covered perils under standardhomeowners’, renters’ orbusiness owners’ policies

� Quote for an endorsementor separate policy forearthquake and aftershockcoverage

� Reminder that once anearthquake hits, a 168-hourmoratorium begins during which coverage cannot be bound

Along with a quote, it neverhurts to leave behind a brochureor flyer explaining earthquakeexposures.

[ 15 ]

From the friendly voices of our customer service staff to the personal visits by our territory managers and underwriters to the promptness of our claims adjusters, we are told time and again …

Our people set us apart.That’s why our agents trust our experience, strength and service. Visit our website to find out about becoming an agent with us.

www.PennNationalInsurance.com

Business Surety Auto Home

Regional historic ‘quakesTake a stroll down memory lane: Where were you (or your clients) whenthe ground shook?

DATE EPICENTER MAGNITUDE

April 23, 1984 Lancaster, Pa. 4.4Jan. 16, 1994 Reading, Pa. 4.6Sept. 25, 1998 15 miles SW of Meadville, Pa. 5.2

Primary Agent | February 2012Continued from page 13

Platinum Profile

Harleysville Insurance is a leading regional provider of insurance products and services

for small and mid-sized businesses, aswell as for individuals — rankingamong the top 60 U.S. property/ casualty insurance groups with $1.1 billion in annual net written premiums. Harleysville also is rankednationally as one of the 20 largestcommercial multi-peril insurers and asone of the top 10 “Write Your Own”flood insurance carriers.

Commercial lines generate 75 percentof the company’s property and casualty risk portfolio, while personallines sales account for the remaining25 percent. In addition, Harleysville’sagents have the unique capability ofrounding out customer accountsthrough a full line of life and flood insurance products.

At the heart of Harleysville’s successare the lasting partnerships the company has developed with its more

than 1,300 independent agencies.Harleysville distributes its products exclusively through independent insurance agencies and reflects thatcommitment to its agency force bybeing a Trusted Choice® companypartner. To perpetuate its long-standing agency relationships,Harleysville provides decision-makersclose to the point of sale — field underwriters dedicated to specificbusiness segments and customer service representatives licensed to assist agents with their account management responsibilities.

Having “Good people to know” at all levels of the organization serves to define Harleysville in themarketplace by delivering on its brand promise every day — making it easy for agents and policyholders to do business with the companythrough advanced technology andcustomer-friendly services.

FEATURED PARTNERHarleysville Insurance

CHIEF EXECUTIVE OFFICERMichael L. BrownePresident and CEO

COMPANY LOCATIONSHome office in Harleysville, Pa.,

with four regional and16 branch offices

A.M. BEST RATINGA (Excellent) Stable outlook

WEBSITEwww.harleysvillegroup.com

Insurance Agents & Brokers proudly recognizesHarleysville Insurance as one of its Platinum Partners.IA&B Platinum Partners dedicate the highest level of

sponsorship to our organization.

“Our independent insurance

agents are trusted advisors

who offer their customers

freedom of choice through

the companies they represent.

As a Platinum-level supporter

of the IA&B Partners Program,

Harleysville is investing in the

futures of both our company

and our sole distribution

outlet — the independent

agency system.”

—Michael L. Browne,President and CEO

BUSINESS | HUMAN SERVICES | INLAND MARINE | PERSONAL | LIFE/EMPLOYEE BENEFITS | FLOOD

WHAT IS IA&BPARTNERS?The IA&B Partners

program gives company

and allied businesses

the opportunity to

demonstrate their

commitment of support

to independent agents

and receive maximum

market exposure. As an

IA&B Partner, you will

also realize the benefits

of IA&B membership to

help you succeed in

the insurance industry.

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

choose the sponsorship

package that matches your

commitment of support.

Contact the Member Sales

Center at 800-998-9644,

717-795-9100 or visit us

online at www.iabgroup.com

to get started.

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

Thank you for your continued sponsorship.

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

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

GOLD LEVELProgressive

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

BRONZE LEVELAegis Security Insurance Co

Agency Insurance Company

AmWINS Program Underwriters Inc

Auto-Owners Insurance Company

Briar Creek Mutual Insurance Company

Builders Insurance Group

Chubb Group of Insurance Companies

Countryway Insurance Company

Encompass Insurance

First General Services

Foremost Insurance Group

Goodville Mutual Casualty Company

Guard Insurance Group

Harford Mutual Insurance Co

Hanover Fire & Casualty Insurance Company

Insurance Alliance of Central PA Inc

Insurance Placement Facility of PA

Keystone Insurers Group Inc

Lebanon Valley Insurance Company

Mercer Insurance Group

Merchants Insurance Group

Mercury Casualty

Penn PRIME Municipal Insurance

Reamstown Mutual Insurance Company

Rockwood Casualty Insurance

State Auto Mutual Insurance Company

TAPCO Underwriters Inc

The Brethren Mutual Insurance Company

The Motorists Insurance Group

The Mutual Service Office Inc

Travelers

Tuscarora Wayne Insurance Company

Zenith Insurance

Primary Agent February 2012

AGENCY MANAGEMENT

Weathering the stormOne Jersey agency’s experience in the wakeof Hurricane Irene

When disasters strike,clients look to theirinsurance agency forassistance and reassurance… which makes an agency’sown disaster preparationparamount. The followingpages chronicle anindependent agency’sexperience with – andlessons learned from –Hurricane Irene.

[ 19 ]

Primary Agent | February 2012

At some point in either our personal lives or businesslives we have had to ride out a storm.

Countless articles have documented how an individual,family, business, government entity, city or town has had tostep up and handle a crisis.

Luckily, assistance is available to help you in weatheringyour storm, whether it be a minister, counselor, accountant,attorney, Red Cross, FEMA or, in the case of a specificweather-related storm, your insurance agent. Most peoplewould not necessarily place an insurance agent in thiscategory until they experience the aftermath of a tornado,earthquake, hailstorm, lightning storm, flood or hurricane.Unfortunately for all of us and for the loss ratios of mostinsurance companies, these type of events occurred all toooften in 2011.

The storm many of us along the East Coast and in NewJersey had to weather was Hurricane Irene, which decided topay us a visit on the weekend before Labor Day in the heightof the summer season. The actual time frame Irene took to“check into” the Jersey Shore was Aug. 27 and 28.

I thought I would share with you the chain of events thatoccurred before, during and after these dates within ouragency — Van Dyk Group — and the challenges we faced asa multi-faceted insurance and real estate agency.

The probability that Irene was going to directly affect theJersey Shore and Long Beach Island (a barrier island), whereone of our offices is located, became reality on Tuesday, Aug.23 and Wednesday, Aug. 24.

Our real estate division handles several thousand renters in asummer season, and we insure most of the properties theyoccupy. We had to prepare all of the tenants already here,the tenants checking in on Saturday, and all of the landlords

Having a disaster plan in

place to help your insurance

customers when they need

you most is critical…. This is

the main message we put out

to all of our fellow agents:

Without these plans in place,

we could not have assisted

so many people.

TIP!Take heed of the author’s advice andprepare your agency with IA&B’s

Emergency and Business ContinuityPlanning Manual. Learn how on page 22.

to start making plans toevacuate the island andsecure their properties.Likewise, we had to set inmotion a plan to secure ouroffice and set up thecontingency plan in place toservice our customers whenthey need us most.

Fortunately, we have twoother offices in thesurrounding mainlandcommunities with computeraccess to our customer base,so communication did nothave to be interrupted. Wealso had the peace of mind ofhaving disaster planning inplace with Agility RecoverySolutions in case we lost ourfacilities, power or both. Ourcomputer system can also beaccessed from any PC withcoded access.

Our insurance staff spentTuesday, Wednesday andThursday calling, emailingand fielding phone calls fromour insurance customers,landlords and businessowners about securing theirproperties and verifyingcoverage. We averaged 100to 200 calls a day fromcustomers looking to raiselimits on their policies, lowerdeductibles and buy floodinsurance. It is still surprisinghow many homeowners andbusiness owners do not carryflood insurance for theirproperties located on abarrier island, despite thenotices and disclaimers theyreceive. But in this case, it

was too late to get floodcoverage with the mandatory30-day waiting period inplace for NFIP policies.

Because most of ourhomeowners’ policies arewritten through excess andsurplus lines markets, theyare all agency billed. We tookspecial care to call eachcustomer who had not yetsubmitted payments for theirrenewals and ensure thatmoney was received and apolicy bound before Irene hit.

_____________________________

Just by having the staff available to answer

the calls and give some reassurance goes a

long way to allayingpeople’s concern.

_____________________________

Our real estate divisionvisited the propertiesoccupied by summer tenantsand prepared them forpossible evacuation of theisland – something that isnever well received whenpeople are on vacation. Wehad to discuss plans aboutleaving the premises,returning when permitted,and what amount of rentwould be reimbursed.

The evacuation was indeedmandated on Friday, Aug. 26,and everyone, including us,had to leave by early

AGENCY MANAGEMENT

[ 20 ]

HURRICANE IRENEby the numbers

40 people died

26 rivers’ flood-records broken

10,000 flights canceled

2.3 million peopleevacuated (315,000 in

Maryland, 100,000 in Delaware)

9 million people lost power

$7 billion losses

Sources: National Oceanic and Atmospheric Administration;

Associated Press

afternoon. We spent the rest of Thursday andFriday helping tenants evacuate and helping ourhomeowners secure their properties. It is veryhelpful to have an up-to-date list of contractorsand handyman services to perform these tasks.We had contacted several during the week tomake sure we could help the homeowners.

Irene did not actually come ashore untilSaturday evening, but our insureds did not stopcalling us to help them weather the storm.Having a disaster plan in place to help yourinsurance customers when they need you mostis critical.

This is the main message we put out to all ofour fellow agents: Without these plans in place,we could not have assisted so many people in atwo- to three-day period. Unlike the tornados

[ 21 ]

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Continued on page 24

Hope for the best,prepare for the worstIA&B’s Emergency and Business Continuity Planning Manual

AGENCY MANAGEMENT

From frozen pipes to fires,hazmat incidents tohurricanes, commonaccidents and naturaldisasters cause thousands ofbusinesses to close each year.And at least 25 percent neverreopen. An insurance agency,in particular, cannot afford tobe out of commission. Thepun is intended becauseinsureds — and an agency’sviability — depend onaccessibility.

Members should think about the unthinkable — and prepare with IA&B’s Emergency and BusinessContinuity Planning Manual.

How it worksThe manual contains two sections: an input, where memberscatalogue their business relationships, inventory theirequipment and identify back-up locations; and an output,which incorporates members’ information from the input andserves as a finalized plan of action.

The personalized output outlines the various scenarios thatcan disrupt an agency’s operation and then delves into theimplementation of the plan, which is broken down intotimeframes – the first 12-24 hours, day one through end ofthe emergency, and termination of the plan and restorationof normal operations.

What makes it uniqueThe planning manual is Web-based. The input process iscompleted online, and the output (a.k.a. finalized plan) isavailable online or as a Microsoft Word document.

Besides ease of personalizing the plan, the benefit of housingit online is availability. Members are encouraged to storetheir plan in multiple locations (onsite and offsite) and invarious formats (in print and on an electronic storagedevice), but thanks to the Web-based structure of IA&B’splanning manual, members’ plan is available anywhere atany time via the Internet.

How to access itThe manual is an exclusive, complimentary member benefit.Access it online: www.iabgroup.com/epm.

“[The manual] is organized and wellthought out. This is another example ofIA&B bringing value to its membership.”

~ Tod Aronson, E.R. Munro and Company

Primary Agent | February 2012

[ 23 ]

How one memberagency coped with disasterIt was Friday, Sept. 17, 2004, andHurricane Ivan had dumped inchesupon inches of rain in downtownPittsburgh. Tod Aronson’s agency, E.R. Munro and Company, washoused on the ninth and tenth floorsof an office building located alongthe Monongahela River. Eight feet ofwater flooded the basement, whereAronson rented storage space andwhere controls for the building’sphone lines, electrical circuits andelevators were kept.

The office building was closed for 10 days, six of them workdays. During that time, Aronson funneledphone calls and e-mails into hishome, where he operated anexhausting temporary operation.It was a spur-of-the-moment plan of action — one that kept him afloat but required him to scramble.

Aronson vowed to be betterprepared for a future disruption of his agency’s operations. Hesecured alternate office space, hired a recovery-management firm and, most recently, utilizedIA&B’s planning manual to formulate a strategy.

TIP!Divvy up the input work, such ascataloging business relationships,inventorying office equipment and

identifying back-up locations.

and earthquakes that so manyexperienced over the summerwhere there is not any warningto prepare, we had a plan inplace and the time needed toexecute the plan.

Of course, the numbers ofphone calls and issues to behandled do not end when thestorm passes. This is when thereal fun begins and is thecritical time for an agency to be ready. Communication is the key, and having open phone lines and Internet accessis paramount.

The first wave of requests onSunday and Monday were alongthe lines of, “Did the islandsurvive?,” “Please check myproperty,” “Call me back ASAP,”and “Can we gain access to theisland?” Just by having the staffavailable to answer the callsand give some reassurancegoes a long way to allayingpeople’s concern.

As soon as the authoritiesallowed us to re-enter theisland, some of the staff moved to check properties for damage while others fieldedcalls, or updated homeowners.We emphasized to our staff to be empathetic with all callersas they feel helpless notknowing what happened totheir properties.

While we did have hundreds ofclaims reported over a three- tofour-day span, there were notany catastrophic losses in our

immediate area. Because thearea impacted by Irene didcover a five-state area and a lot of the claims ended upbeing flood related, there wasand continues to be a shortageof FEMA-certified inspectors.Whether an insured’s claim is large or small, he or shewants an immediate responseand a timely settlement of his or her loss.

Here is where a briefing to allavailable personnel plays amajor role. We try to give thesame message across the boardto all of our homeowner andbusiness owner clients:

1. Secure your property.

2. Clean up what you can.

3. Document all action taken.

4. Take as many pictures as possible.

5. Contact repair/ restorationcontractors.

6. Get estimates from two orthree contractors.

Overall, the response from all ofour insurance companies hasbeen outstanding. There alwayswill be outstanding claimslingering when a storm affectssuch a large area, but it goes along way to communicate oftenwith all claimants to keep themup to date. It’s better that you’recalling them rather than themcalling you. We have an agencypolicy to contact every claimantweekly to give them an update

even if there is nothing new toreport. The customer reallyappreciates this.

Most problems and unusualsituations we have faced sinceIrene have to do with loss ofrent/loss of business income,not from damage of propertyfrom a covered peril, but as aresult of civil action – themandatory evacuation of thearea. A lot of these problemsstill remain unresolved.

A lot of this may seem likeInsurance 101, but we can alllearn from every storm we haveto weather.

From our point of view, it is thepreparation for these types ofevents before they occur andthe amount of communicationyou give that will help you andyour customers in weathering a storm.

Editor’s note: This article wasreprinted, with permission, fromthe December 2011 issue ofAmerican Agent & Broker.

________________________________

Jeffrey R. Wyrsch wrote this article.He has been employed with theVan Dyk Group since 1996.Starting with an IT background, hemoved into personal insurance in2000 and became manager ofthe personal insurancedepartment in 2005.

[ 24 ]

AGENCY MANAGEMENT

Continued from page 21

TIP!Prepare your agency now for

spring storms, snowmelts and floods.Learn how on page 22.

[ 25 ]

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Primary Agent | February 2012 TechnologyU P D A T E

For agencies that have spentyears, decades, evengenerations building a localfootprint with traditionalmarketing tools, it can beunderstandably daunting tohear so many in the mediaassert that success in today’smarketplace now requiresextensive e-marketingexpertise and a dynamiconline presence. The goodnews: Many of the techniquesagents have long used tothrive in their communitiesare still relevant. They alsohave clear parallels in thedigital space and, in manycases, their onlinecounterparts are easy toimplement and measure.

Understand the connection,and you can use what youalready know to master thesenew online tactics.

This article outlines someimportant strategies you canemploy to add powerfuldigital marketing componentsto your traditional marketingplan and navigate easily fromwhat you already know tothese digital tools.

Yellow Pages and local searchThe Yellow Pages Associationreports that there are 900million Yellow Page printreferences every month. Theonline equivalent? Local

search. ComScore estimatesthat in March 2011 there werenearly 17 billion searches onall major search engines. WithGoogle having releasedestimates that local searchrepresents 20 percent of theirsearch volume and Bingreporting 53 percent of itsmobile searches have localintent, the opportunity forsmall businesses is immense.

When a consumer searchesonline for insurance, howyour agency ranks in the local results makes all thedifference. According toChikita research, if you makethe top three listings, youragency shares 63 percent ofthe traffic. Land in the bottomseven and that number dropsto 32 percent (and only 5percent of searchers continueto the second page of results).Yet only a fraction ofindependent agents havetaken the first step tobenefiting from this free service.

That first and most importantstep is proactively claimingand verifying your online

EXPAND YOUR MARKETING STRATEGY ONLINEThree digital parallels to traditional tactics

MATTHEW MARKO

Matthew Marko is marketing

manager for Progressive

Insurance. He works to provide

local marketing strategies, tools

and co-branded collateral to

help independent agencies grow

their businesses. Email him at

matthew_marko@progressive.c

om. Matt prepared this article

for ACT. For more information

about ACT, contact Jeff Yates,

ACT Executive Director at

jeff.yates@iiaba.net. This article

reflects the views of the author

and should not be construed as

an official statement by ACT.

[ 26 ]

listings. Progressive offers a listingmanagement program, called ListAgent, to help claim and keep yourlistings relevant, maintained andoptimized for less than $100/year.There are also free do-it-yourselfoptions like getlisted.org that audit howeffectively your agency has claimed itslocal search listings and allow you tocreate listings with each of the primarysearch engines from one website.

Just as a variety of factors (ad size,color, content) influence the success ofyour Yellow Page print ad, severalelements affect your local searchranking. Keep your listings consistentacross search engines by using yourofficial business name and avoidingabbreviations, generate as manyconsistent citations (online referencesto your business) as you can amongsearch engines, eliminate duplicatelistings, and be sure to include as muchrelevant content as possible, includingyour agency address, phone number,email, website, photos and businessdetails. Finally, create a strategy forgetting your customers to review yourbusiness online.

Word-of-mouth and online reviewIt’s no secret that a leading driver ofnew business is a happy customer. For agencies that have nurtured word-of-mouth referrals from theircustomers (and for agencies that simplysee the results walking through thedoor), encouraging your customers toshare their feedback online is an easyway to amplify their voice. AskingFacebook fans and LinkedInconnections to recommend youragency to their social networks is theclearest bridge between traditional anddigital referral tactics, but onlinereviews on sites like Google Places,Citysearch, Yelp and Insider Pages haveadditional advantages – not only canthey boost your local search visibility,they can sway strangers as well.

In fact, according to BrightLocal, 70percent of consumers trust onlinereviews as much as personalrecommendations. This is especiallytrue in the insurance industry, where 57percent of consumers said theirinsurance purchase was influenced byreviews – more than websites, TV orradio advertising. Search engines likeGoogle and Yahoo prominently displayreviews in their query results, yetProgressive’s research on onlinereferrals found that our independentagents have, on average, just .3 reviewson their online listings.

If you’re not currently soliciting onlinereviews from your customers, tryadding requests to your customercommunications. Develop emailtemplates that you can easily customizeand send with links to review sites.Again, your carriers may be able tohelp you here by having emailtemplates for you to use, as Progressivehas done. You can also add links toyour website and customer newsletters.

Don’t worry if a couple of negativereviews turn up with the positive. A2011 Lightspeed Research study foundthat only four percent of shopperschange their mind about a service afterreading one bad review, and only 25percent of consumers change theirmind after reading two. Plus, you canfrequently turn bad reviews around bysimply responding. A January 2011Harris survey discovered that 33percent of customers who received aresponse from a company after postinga negative review followed it up with apositive review, and 34 percent deletedtheir original post.

Print ad and tile adFinally, as newspaper readershipdeclines and more consumers get theirnews from the Web and social media,online advertising may offer youragency additional bang for themarketing buck. While banner ads onyour local paper’s website are an

alternative worth exploring, sites likeFacebook give you pinpoint targetingoptions that print and onlinepublications cannot. Using Facebook,you can create and publish an adyourself in minutes, and unliketraditional media, you can hand-selectan audience most likely to respond toyour message using the informationFacebook users list about themselves,including zip code, age, gender, maritalstatus, even hobbies, interests, andassociations. A hyper-targeted admeans less waste, and Facebookprovides detailed metrics that enableyou to quickly test executions andadjust as needed during the campaign.Best of all, you can pay per click orimpression, and set budgets by day orcampaign. To make the process eveneasier, your carriers may provide youwith resources to help you with onlineadvertising. Progressive, for example,offers illustrated how-to guides oncreating Facebook ads and contests onits agent marketing website.

It’s true that the market and thecustomer are evolving, but there are easy ways to apply what youalready know to succeed in onlinemarketing. You don’t need special skills or an expensive consultant to take the first steps forward; just a basic understanding of what’s out there, a willingness to explore, and afew trusted resources to help you along the way.

Editor’s note: For more on socialmedia and online marketing, visit www.iabgroup.com, select“Technology” from the left-hand menu bar and then choose “Other Resources.”

[ 27 ]

Brokers Surplus Agency . . . . . . . . . . . . . . .21, 25

EMC Insurance Companies . . . . . . . . . . . . . . .IFC

Guard Insurance Group . . . . . . . . . . . . . . . . . .21

Hanover Fire & Casualty . . . . . . . . . . . . . . . . .IBC

IA&B Partners Program . . . . . . . . . . . . . . . . . . .17

Insurance Club of Pittsburgh . . . . . . . . . . . . . .25

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

Mutual Benefit Group . . . . . . . . . . . . . . . . . . . .14

Penn National Insurance . . . . . . . . . . . . . . . . .15

PennPRIME . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

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

TAPCO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

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[ 28 ]

Reality-television shows may challenge the insuranceindustry like no other genre, but it’s good-old game showsthat still cause the most claims.

From the self-destructive antics on Jackass (think: Steve-O stapling his private parts to his leg), to the gut-wrenching stunts on Fear Factor (think: contestantsclimbing around a car that helicopters elevate 100 feet),entertainment insurance brokers find plenty of risks tokeep them in business.

But, according to broker Lorrie McNaught, simply walkingup and down a staircase — as contestants and televisionpersonalities often do on game shows — results in the mostentertainment-industry claims.

Source: “Insuring reality show risks from stapling body parts tostaircases,” NU Online News Service, Dec. 21, 2011

----------------------------------------------------------------———————-------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 iab@iabgroup.com, subject line: Last & Least. The editor will happily protect sources’ anonymity upon request.

Watchyour stepwheninsuring television shows

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