Friday, March 1, 2013
6 Tips For Sales Goals That Stick
Here is a GREAT article with helpful tips that will help you achieve your sales goals. It's geared for year end, but can be applied to any time of the year. If you're in a rut, and want to talk to someone about increasing your opportunities by having access to more carriers, contact Tague Alliance (SIAA Master Agency) at 760-729-1143, or email at info@taguealliance.com
Written by: Phil Beakes, CEO
Peregrine Insight Group, LLC
It's near year-end, and it's time to meet with your individual sales teammates to set goals and expectations for the new sales year ahead. I get feedback on this process that ranges from "We don't set goals at all", to "We dictate goals and hope for the best," and everything in between. Many avoid this completely, at their peril.
Unfortunately this process, many times, follows along two typical paths. The first one is where management looks over the cash needs of the company, which get's divided up into regions and districts, and down to the individual sales person. These "quotas" are handed to the sales person, like it or not, without their buy-in or even their input.
The second difficult scenario is where sales management sits with a sales person and a negotiation ensues to get to a goal everyone "can live with". Both parties gear up for the encounter with the manager coming in with twice what they need, and the sales person entering the conversation with half what they can accomplish and they "settle" in the middle somewhere. The entire process is to gain agreement so that accountability and consequences can be brought to bare. But where is the plan? Where is the discussion and plan around the individual behaviors needed to make this goal happen? And, is it even the right sales number for the organization in the first place?
Does this ring a bell? Isn't it time for a change? Remember, "We manage what we measure", and "Every journey of 1,000 miles begins with the first step." The following is a solid system to set sales goals with your teammates that leaves you with a solid goal. One that is endorsed and supported by your team member, and provides you with behaviors to measure (remembering that we can't manage numbers in sales...only behaviors that lead to those numbers.)
1. Vision: Re-visit "What's in it for them?" Why are they in sales? What do they want for themselves and their families? What income do they need to support this, translated to sales levels needed to provide this. This creates the critically important emotional drive needed to see them through and drive them towards the goal. (Write this number down.)
2. Last Year: Produce their list of clients and the sales or income these represented this year. Notice the large ones, the small ones, the forgotten ones in the middle that are so easy to do business with. (Write this number down.)
3. Evaluate: Here we need to do two calculations.
A.) What accounts will be going away, either through competition, acquisition, the economy, or other reasons that would result in them not providing you the income they did the prior year.
B.) What is available to expand from the remaining clients, either from new products sold or the clients account grew and will lead to more sales (Add this to #2 above.)
4. New Business: Evaluate your market. What accounts you did not get but might this year. Look at new markets, new approaches and activities. From all of this, add up the opportunities and add the sum total of the new revenue to #2 above.
5. Compare: Now, compare this total to several areas:
A.) The visionary income needs of the sales person. Is this going surpass it?
B.) Incremental sales contribution to the top line needed by the company. Does this match or exceed what the budget needs are? Is it enough? Is it a fair request?
Once this is done, determine what adjustments need to be made, like support needs or pricing? Get agreement on the final number be PRODUCED.
6. "Doable Doses": Break down all aspects of the successful sales goal called KPI's (Key Performance Indicators), like average transaction size, hit ratio, number of appointments and calls needed to produce that revenue, and you are done!
You now have the annual goal, how it's made up, and the behaviors you need to manage the sales person who is now a voluntary participant in the process.
If you use this process, or something close to it that conforms to your business process, you are ready to start the new year with a plan of action you can track and manage to the success of the whole team.
Peregrine Insight Group, LLC
P.O. Box 5046 ~ Ventura , CA 93005
Toll Free: (888) 868-5055 ~ Office: (805) 382-4500 ~ Cell: (805) 284-2626
Effective immediately, please use my new email address: phil@insurancesalesleadership.com
Learn more at:
http://www.insurancesalesleadership.com/api
Wednesday, February 6, 2013
Referrals... Referrals... Referrals
Your best source of leads for new business will be your current book! They're a warm market for you. They know who you are, and already love your service. So whynot ask if they know someone who could also benefit from relationship with you and your agency??
Written by: Jerry Nisker
Target Marketing Training
This is the nineteenth article in a series of Target Marketing ideas that I hope will help you to think differently and set yourself apart from your competition. In this article I will deal with one item that most agents do very poorly; asking for referrals!
Referrals are the lifeblood of sales…any kind of sales! Whenever you call someone and are able to say “I was asked to call you by____________” it increases your chances of an appointment and later the sale. The real question is why so many agents fail to ask for referrals. My theory is that they don’t want the rejection that they believe comes with asking for a referral.
Early in my career I began trading Laker tickets for five referrals. There was little or no rejection and I found that I expanded my book of business without making “cold calls.” I have also learned that if someone believes that you have done a good job for them they are happy to refer you to others. You simply need to ASK.
The renewal appointment is the perfect way to accomplish three goals. (1) To be certain that you have properly covered your client. (2) It give you the opportunity to speak with them about other lines of insurance (3) It gives you the opportunity to ask for referrals.
Asking for referrals should be part of the renewal process. I recently did a seminar for an agency in southern California. The next morning I received an e-mail from a producer telling me that he had a renewal appointment at 2 p.m. that day. He received three referrals from his client; and one of those referrals was made by the client directly to a friend of his during the renewal appointment.
All of this is especially true when Target Marketing. The reason is that your client knows others in the same industry; the industry that you are specializing in; the industry that you are considered the expert. All you have to do is ASK.
I welcome your comments, and if you are interested in taking my complete Target Marketing Seminar, please give me a call at 714 813-3221. Four hours could change your entire career. (4 CE credits available in California)
Written by: Jerry Nisker
Target Marketing Training
This is the nineteenth article in a series of Target Marketing ideas that I hope will help you to think differently and set yourself apart from your competition. In this article I will deal with one item that most agents do very poorly; asking for referrals!
Referrals are the lifeblood of sales…any kind of sales! Whenever you call someone and are able to say “I was asked to call you by____________” it increases your chances of an appointment and later the sale. The real question is why so many agents fail to ask for referrals. My theory is that they don’t want the rejection that they believe comes with asking for a referral.
Early in my career I began trading Laker tickets for five referrals. There was little or no rejection and I found that I expanded my book of business without making “cold calls.” I have also learned that if someone believes that you have done a good job for them they are happy to refer you to others. You simply need to ASK.
The renewal appointment is the perfect way to accomplish three goals. (1) To be certain that you have properly covered your client. (2) It give you the opportunity to speak with them about other lines of insurance (3) It gives you the opportunity to ask for referrals.
Asking for referrals should be part of the renewal process. I recently did a seminar for an agency in southern California. The next morning I received an e-mail from a producer telling me that he had a renewal appointment at 2 p.m. that day. He received three referrals from his client; and one of those referrals was made by the client directly to a friend of his during the renewal appointment.
All of this is especially true when Target Marketing. The reason is that your client knows others in the same industry; the industry that you are specializing in; the industry that you are considered the expert. All you have to do is ASK.
I welcome your comments, and if you are interested in taking my complete Target Marketing Seminar, please give me a call at 714 813-3221. Four hours could change your entire career. (4 CE credits available in California)
Thursday, January 3, 2013
10 Ways to Attract and Retain Great Employees - Parts 1 & 2
At Tague Alliance, we always get questions from agents wanting to know about hiring employees. Here is a great article from The Insurance Community University on how to obtain and keep great employees!
The "human factor" has always been paramount for the insurance industry. In today's business environment, clearly the long-term winners will be companies that provide a flexible and challenging work environment, along with employee recognition and rewards. Organizations have to be willing to share their successes. If employees are asked to share the risks, then they have to share the rewards.
The "human factor" has always been paramount for the insurance industry. In today's business environment, clearly the long-term winners will be companies that provide a flexible and challenging work environment, along with employee recognition and rewards. Organizations have to be willing to share their successes. If employees are asked to share the risks, then they have to share the rewards.
WHAT DO EMPLOYEES REALLY WANT?
In our work as consultants we often discuss what owners and employees think are the key motivating factors. Most business owners initially think money is the key issue. However, many employees state that they are looking for challenges, recognition, and empowerment.
Despite the current softness in the economy and the rise in the unemployment rate, the shortage of skilled insurance workers is still restraining growth for many agencies. Given this environment, what can a firm do to retain and attract the best and brightest employees, while challenging them to achieve the business' goals?
First, recognize that money, by itself, will not do it. High performing employees are searching for something more than just a high salary. The typical employee compensation plan should include a total package of rewards, recognition and environment. Some of the elements are "satisfiers" that allow a firm to attract and retain employees such as benefits, flex-time and training. Other elements of compensation are "motivators" such as bonuses, incentives, challenge, and opportunity. A well designed plan will have long term and short term compensation components.
The key to attracting and retaining the best people to the firm is the use of a "total compensation" approach. It is also a critical component in improving employee performance. A firm that takes the time to carefully customize a "total compensation" package will transform individual employees into high performing, and committed employees.
There are three basic ingredients to the total compensation package that every agency must have:
1. Challenging Work
The old system of directing and monitoring every task that an employee performs is out. Employees with multiple skills and authority are in. For example, a major retailer has a one-paragraph employee handbook that states: "Rule #1: Use your judgment in all situations. There will be no additional rules." To truly perform at this level requires enormous trust in the employees. However, if a business is able to perform at this level it will reach incredible heights.
Provide additional opportunities for learning and skill development to spice work up. Encourage the staff to take classes to get licensed and for courses to earn the necessary CEUs. But, an expansion of training could provide more flexibility through a higher skilled workforce. Send the employees to Dale Carnegie, Microsoft software training, business skills seminars, team building sessions or a sales class (such as Dynamics of Sales sponsored by CIC).
2. Work Environment
Today's workforce is looking for flexibility on the job and balance in their life. Management needs to evaluate ways to realistically provide this sought after flexibility in work. For example, tradition has it that the employees work in an office with established work hours. Could the firm allow for variations, such as 4-day workweeks, working at home two days a week or job sharing? Flexible work hours are becoming a common tool to attract and retain good employees.
3. Recognition and Rewards
Non-cash recognition awards are a very effective way to reinforce the agency's values. They can be a low-cost, high-impact element of the total compensation package. For example, employees who provide outstanding or innovative customer service receive special awards. One way is for employees to be nominated by customers or their peers.
Management needs to think about the types of awards that make sense for employees. Here are some examples:
¯Provide a day off with pay
¯Provide tickets to sports, music or cultural events
¯Take out an advertisement in the local newspaper thanking your employees for their contributions
¯Provide a donation in an employee's name to the charity of his or her choice
¯Pay for tutoring for the winner's child
¯Have the winner's car detailed during work
¯Pay for the winner's house to be cleaned
¯Pay for an evening out for the winner and their spouse - dinner and babysitting
Once the basic ingredients are established, the firm can then look into advanced tools to attract and retain employees. The following are some of the approaches that owners should also consider:
4. Profit Sharing
Although money is not always king, it still has a lot of clout. Firms that establish a bonus plan based on the business profitability will have employees that strive to increase sales and cut expenses. Profit sharing can be based on the profitability of the overall business or by profit centers such as commercial lines versus personal lines versus life and health. The pool of bonus money can then be distributed to the staff based on management's discretion.
A variation of profit sharing is to reduce the employees' base compensation while providing quarterly bonuses based on a department's performance. A plan that tracks employee performance will then allow them to see a direct correlation between their effort and their compensation.
Even in this economy, great employees are hard to find. You need to work hard and smart in order to find those star performers. Below are six more ideas for your agency to find and keep those high performers.
One of the key steps to take is to do your homework before you even begin the process of hiring a new employee. First, you need to identify what you are looking for. This includes the responsibilities for the position, skills required and your basic expectations for the type of person you want to hire.
We are very excited to offer to you our new employee hiring service through our partner, Insurance Hiring Systems. This is a great resource to help you do your homework before you hire and then have access to many tools that make sure you hire the right person. WWW.OakHiringSystem.com
10 Ways to Attract and Retain
Great Employees - Part 2
5 and 6 Phantom Stock and Stock Appreciation Rights
Stock appreciation rights (SARs) and phantom stock are both specialized deferred compensation techniques designed to provide an employee with the economic benefits of stock ownership without the employee actually owning any company stock. When an owner cannot or will not change the existing ownership structure, SARs and phantom stock are often used, to provide an employee with some sort of incentive compensation based on the actual business performance.
A SAR is simply a grant to an employee which gives that person a right, at some specific time in the future, to receive a cash award equal to the appreciation in value of a certain number of shares of company stock. In concept, SARs are similar to stock options, but different in several points. Stock options require the employee to purchase the company's stock at the grant price. However, SARs do not require a cash outlay from the employee. The employee only receives the appreciation in value of the stock.
Phantom stock on the other hand can be viewed as units of value, which directly correspond to an equivalent number of shares of company stock. These phantom stock units are then granted to an employee for a specific period of time. When the maturity period is reached, the employee is then compensated directly in cash, based on the value of the phantom stock. Unlike SARs, the amount of compensation with phantom stock usually includes the underlying value of the stock as well as any appreciation above the grant price. Another difference is that SARs are typically paid out when the employee chooses to exercise the SAR, while phantom stock typically has a fixed award date.
7. Deferred Compensation
Deferred compensation is a method for producers to build long term value for their efforts directly related to their books of business. We recommend using deferred compensation instead of ownership in the producer's book of business. The plan is often phased in over time until the producer is fully vested in the plan.
The agency benefits by having a system that encourages the producers to build their books as well as remain with the firm. It must be noted that a deferred compensation plan (as well as SARs and phantom stock) creates a contingent liability for the firm, which does negatively affect agency value. However, deferred comp is also "consideration," which helps uphold the covenant not-to-compete in a producer contract. This is another good reason to include deferred compensation as part of a producer agreement.
8. Split Dollar Life Policies
A split-dollar plan is a way to provide life insurance for an employee or their spouse at a reduced cost to that individual. The premium for the insurance is shared by the employee and his or her employer (thus the name "split dollar").
It is an effective way to retain key employees while the business is reimbursed for every dollar it advances. From the employer's perspective, split-dollar is an inexpensive method of buying life insurance for any personal or business needs of select employees. It enhances employee loyalty by providing substantial insurance benefits. Some split dollar policies can provide funds, which may be used for additional employee benefits in the future (deferred compensation, salary continuation, stock redemption, or retirement income).
From the employee's perspective, split-dollar can help replace needed family income that would be lost at the employee's death or help pay any estate taxes. If the employee owns the policy and collaterally assigns the policy to the employer, the employer can borrow against the cash value to the extent allowed by the collateral assignment form.
9. ESOPs
Employee Stock Ownership Plans (ESOPs) are a way for business owners to sell shares in the company or to provide an additional benefit to all qualified company employees. These plans were initially created as a win-win for business owners and employees. ESOP contributions are tax deductible as are dividends if they are paid to employees directly, on their behalf to the ESOP or applied to the loan payments of a leveraged plan. Because the ESOP is funded with pretax dollars, the company's tax savings may increase even further.
The selling shareholder can also defer the capital gains on stock sold to an ESOP as long as the ESOP owns 30% or more of the company's stock and the seller rolls over the sale proceeds into qualified replacement property (stocks or bonds of domestic companies). Employees pay no tax on the contributions until they are entitled to receive the stock when they leave the company or retire. At this point, the company generally buys back the stock through a buyback provision in the ESOP.
ESOPs are expensive to set up and maintain. Businesses need to be a certain size before it makes financial sense. We recommend that agency owners do their homework before seriously considering this option.
10. Stock Equity
Stock ownership usually conjures up visions of importance and respect. Producers and employees feel that having the word "Owner" on their business card will improve sales and stature. Often the employees only understand the benefits of stock ownership and the drawbacks are ignored or not understood.
Agency owners are often unclear themselves whether or not they should offer stock to an employee. They usually first think about it either when a current employee is about to walk out the door and may not come back. Owners might often feel that they are forced to offer stock in order to entice a new producer to join the firm or to retain the currently employee, such as a producer with a book of business.
We recommend that owners think long and hard before offering stock to an employee. The decision whether or not to make an employee an owner needs to be based on a review of many factors. The right decision can propel the agency forward for many years to come. The wrong decision can mire the firm in unimportant muck.
A Final Thought
A good principle to follow is that if you want outstanding results, you need to be prepared to pay outstanding rewards. Implementation of a "total compensation" plan will motivate employees to improve not only their own performance but the performance of the firm as well.
Questions about joining Tague Alliance? Call the office to get the answers to what you are looking for! 760-729-1143 or info@taguealliance.com
Tuesday, December 4, 2012
Valuation - Thinking Outside of the Box
By Robb Greenspan, SPPA When a loss occurs to commercial property,the losses don’t end when the flames or shaking stop or when things dry out.
* This is a great article by Robb Greenspan, discussing the process of the commercial property loss, and what steps your client would need to take should they have to file a claim. For more information on commercial policies, or becoming an Independent Insurance Agent in commercial lines, please contact Tague Alliance at (760) 729 - 1143, or info@taguealliance.com *
In commercial enterprises, the ramification of losses extends out to employees, their families and customers as well. The Insureds first duty is to maintain the welfare of the business and its employees. The next concern is the continuance of the business. Their last concern should be the insurance claim itself but unfortunately,this can’t be!
The Policy of Insurance demands many steps be taken immediately after the loss occurs. The first step is to notify the broker/agent and carrier. The undamaged property must then be protected from further destruction, separating damaged from undamaged goods in preparation of taking an inventory. This inventory is then followed by pricing the goods, accounting work-ups and documentation of claims through the books and records. After it is all compiled, it must be submitted to the insurance company’s adjuster and accountants for review and the negotiations will then start. If a building loss is involved, protecting it from further damage is the first step prior to determining loss, after that, a Scope of Repairs is developed and then the bidding process starts. The Policy of Insurance demands many steps be taken immediately after the loss occurs. While the Insured is fulfilling the duties and obligations of the contract of insurance, his/her business is usually being ignored. Many businesses fail after a loss because the policyholders neglect to immediately focus on the business continuity rather than dealing with the insurance companies needs. What a claimant really should be doing is to deal with their customers and vendors, their employees and staff to insure the continuity of the business.
• Who Does The Insured Call?
After the fire department, the broker usually receives the first call. The Insured may look to the agent/broker for help. Usually in small losses, the broker’s office can assist in reviewing the policy and give some claims advice. In larger losses this may present a problem. The E&O exposure to the gent/broker is ever present in normal situations, and in a claims situation the ramifications can be financially disastrous. The least of the problem is the unhappy client who questions the broker’s ability to properly write insurance after having to deal with a plague riddled claim. When something goes wrong in the settlement, it can manifest itself in an E&O suit. When a large or problematic claim arises, the broker, many times, will be best advised to stay out of the claims process completely and allow the insurance company to assume the burdens of advising the client in the claims process. However, this has problems too.
• Why Not Rely On The Insurance Adjuster?
The Insurer has strong incentives to keep claims costs down. The heavy claims backlog that plagues most companies restricts the amount of time the adjuster can spend with the claimant. If the adjuster is not available to answer the claimant’s questions, who is? Asking an insurance company adjuster for help or advice is analogous to going to the IRS Auditor for tax advice. One hires an expert to represent them in tax preparation rather than rely on the Internal Revenue Service whose motivation is to collect taxes. The same can be said about the insurance company whose motivation is profit. They, the carrier, are going to do “what’s fair” to them, however, “what’s fair” to an insurance company many not be fair to the Insured, as is the case many times.
• What Help Can An Insured Get?
There is an industry known as Public Adjusters or Claims Consultants for the Policyholder who can help. As claims experts who handle hundreds of claims a year, Claims Consultants know the ins and outs of the claims process. We understand the mentality of the insurance company and how to prepare a claim that they will readily accept. We can give specific advice to claimants based upon our experience with their specific industry and their individual needs. Claims Consultants for the policyholder handle all of the required tasks of claims submission keeping the insured best interest in the forefront of the process, thus allowing the Insured to concentrate on re-establishing their business and their lives. We also reduce the time spent in the adjustment of the claim by the Insured as well as the broker. Our goal is to produce a better recovery for the Insured and quicker than they can on their own with less time spent on the claim and more time spent keeping their business viable. Not all losses require the help of a public adjuster. We usually do not get involved in small cases and most times you can be of help to them in this type of loss. If the claims are over 75K or have problems manifesting themselves at the onset on smaller ones then we are needed.
• What Help To The Broker Is The Claims Consultant?
The Claims Consultant and broker can work as a team, thus making the broker/agent part of the claims process, yet reducing or eliminating, completely, any liability associated with advising clients in claims situations. By assuring the successful settlement of claims, the broker is credited with this success and can expect the continued business from his or her Insured.
Without the professional help of a Public Adjuster/claims consultant, claims can go wrong! If due to circumstances an Insured receives what they perceive as an unsatisfactory answer (over expectation of what their claim is worth), the agent/broker can be blamed for writing bad insurance and will probably lose the account. The professional Claims Consultant can help to assure that this does not happen by accepting the burden and responsibility of the claims process. We steer the client in the right direction and focus the client’s vision as to what their losses truly are (real expectations). Of course if there are real issues such as underinsurance penalties (co-Insurance) we can many times reduce the effects of this by using techniques developed over the many years of experience we have. Most times your client will never know there was a problem if handled properly.
• What Services Can A Claims Consultant Provide That An Agent/Broker Cannot?
The better claims consulting offices are staffed with licensed Adjusters; Inventory Specialists; Accountants and CPA’s; Building Experts and Estimators who are all available to advise the Insured and to help document the claim. Once the claims are properly prepared and submitted, the Claims Consultant will follow through with negotiations so the claims are paid and the property is re-built or replaced quickly. As mentioned above, the Claims Consultant’s task is to fulfill all of the requirements stated in the contract of Insurance after a claim arises. The Claims Consultant can also find the extensions of coverage’s within a policy, thus taking fair advantage of the insurance bought and paid for by the claimant.
• How Is The Claim Prepared?
The first step in a typical claim would be a review of the insurance policy. If problems are noticed at this initial review, a meeting is held privately with the Agent/Broker to discuss any insurance problems that we foresee arising and work out a methodology to avoid or reduce these problems so as not to become issues in the future. Next, a detailed inventory of stock and equipment is undertaken by our Inventory Specialist. At the same time, if Real Property is involved, Building Estimators and Construction Experts are brought in to prepare a detailed Scope of Loss and Damage, detailing all of the necessary costs to rebuild or repair that structure. Once these steps have been completed, the Accountants are called in to prepare any accounting schedules necessary to support values of inventory, stock, etc., as well as to determine the extent of income loss suffered by the Insured. After all of this is completed, it is packaged and reviewed with the client and then submitted to the insurance company. This is where the experienced Professional Adjusters begins the negotiation process. We work until a mutually satisfactory answer is arrived at, thus, closing the claim and leaving both Insured and Insurer satisfied with the outcome. While this tedious process is going on, your client is free to re-establish his business or her customer base and deal with their employees, thus insuring the continuity of the business.
• What Other Services Are Provided?
Although the service provided by each company vary, the better firms will work with you to establish insurance needs and make recommendations on Forms & Endorsements for future insurance purchases with your client . We also can;
Help establish the value of personal property, real property and business income needs for underwriting purposes.
Claims Consultants are available to the Agent/Broker for consultation for underwriting questions.
Provide qualified courses on claims and property insurance for state CE credit.
Of the above list, not all Claims Consulting firms can fulfill all of these duties. One should look for a firm that has the full staff of in-house adjusters, accountants and inventory specialists and other expertise to perform all of the duties above.
• How Does One Choose A Professional Claims Consultant?
Many policyholders feel the need to retain the services of a Claims Consultant mainly because of the time constraints they feel after a loss occurs. A second reason is because they realize that a professional, with experience, can do better than a novice handling their own claim, thus avoiding the learning curve. You can help your client choose the proper Public Adjuster by looking at the criteria listed below:
First and most important, check references of past clients. Not just by looking at the name but by making the phone call. All reputable firms should provide a list of past clients including names and phone numbers for contact.
Check current licensing status of the Claims Consultant. Look at the DOI’s web site to insure that the consultant or Public adjuster is current in their licensing.
Does the firm have membership in both professional organizations such as the National Association of Public Adjusters (NAPIA) or the California Association of Public Insurance Adjusters (CAPIA) Are they affiliated with any other insurance groups such as IIABA, PIA, IBA-West.
Is the professional staff accredited through the National Association of Public Insurance Adjusters? NAPIA issues two accredations. One is the S.P.P.A. (Senior Professional Public Adjuster) and the other is the C.P.P.A. (Certified Professional Public Adjuster). In order to earn a designation, one must go through lengthy education courses and real-time experience in the practice and then pass rigorous tests, similar to the CPCU designation
Does the firm have full support personnel?
Do they have Inventory Specialists on staff? (not contracted out)
Do they have Accountants and CPAs on staff? (not contracted out)
Do they have Claims Adjusters, Building Experts and Estimators to fulfill your client’s needs? Do they have the expertise on equipment and machinery analysis? These are important tools that the public adjuster uses!
Checking with the Better Business Bureau, the local Chamber of Commerce can also lead you to the right Professional Claims Consultant.
In conclusion, by calling in the Claims Consultant at the onset of a claim, Public Adjusters can advise and assist your client on your behalf to steer them in the right direction, thus avoiding the many traps and pitfalls that the Insureds usually find themselves in when handling large claims. If and when problems of value and loss, coinsurance or missing or inadequate endorsements arise, we are there to minimize or avoid completely the effects of these problems thus reducing the exposure to the agent for E&O suits. When the handling of the claim produces an acceptable answer to your client and one that the insurance company finds acceptable as well, the Insured is left with a positive perception of the claims experience and your carriers are happy. The net effect of this is that the client feels the agent/broker did a good job on his or her behalf in placing the insurance with the carrier and this can lead to a long relationship between you and your client.
About the Author: Robb Greenspan, SPPA is a senior partner and second generation owner of The Greenspan Company/ Adjusters International, a public adjusting firm was established in Los Angeles 1946. Greenspan is dedicated to representing the policyholders interest in property claims only. He has written numerous articles and papers on insurance and teaches continuing education for agents and brokers as well as other professionals for over 20 years. Greenspan is currently a member of the Curriculum Board for the California Department of Insurance and past member of the Insurance Commissioners Consumer Complaint and Unfair Claims Practices task force. He holds the Senior Professional Public Adjusters accreditation issued by the National Association of Public Adjusters.
* This is a great article by Robb Greenspan, discussing the process of the commercial property loss, and what steps your client would need to take should they have to file a claim. For more information on commercial policies, or becoming an Independent Insurance Agent in commercial lines, please contact Tague Alliance at (760) 729 - 1143, or info@taguealliance.com *
In commercial enterprises, the ramification of losses extends out to employees, their families and customers as well. The Insureds first duty is to maintain the welfare of the business and its employees. The next concern is the continuance of the business. Their last concern should be the insurance claim itself but unfortunately,this can’t be!
The Policy of Insurance demands many steps be taken immediately after the loss occurs. The first step is to notify the broker/agent and carrier. The undamaged property must then be protected from further destruction, separating damaged from undamaged goods in preparation of taking an inventory. This inventory is then followed by pricing the goods, accounting work-ups and documentation of claims through the books and records. After it is all compiled, it must be submitted to the insurance company’s adjuster and accountants for review and the negotiations will then start. If a building loss is involved, protecting it from further damage is the first step prior to determining loss, after that, a Scope of Repairs is developed and then the bidding process starts. The Policy of Insurance demands many steps be taken immediately after the loss occurs. While the Insured is fulfilling the duties and obligations of the contract of insurance, his/her business is usually being ignored. Many businesses fail after a loss because the policyholders neglect to immediately focus on the business continuity rather than dealing with the insurance companies needs. What a claimant really should be doing is to deal with their customers and vendors, their employees and staff to insure the continuity of the business.
• Who Does The Insured Call?
After the fire department, the broker usually receives the first call. The Insured may look to the agent/broker for help. Usually in small losses, the broker’s office can assist in reviewing the policy and give some claims advice. In larger losses this may present a problem. The E&O exposure to the gent/broker is ever present in normal situations, and in a claims situation the ramifications can be financially disastrous. The least of the problem is the unhappy client who questions the broker’s ability to properly write insurance after having to deal with a plague riddled claim. When something goes wrong in the settlement, it can manifest itself in an E&O suit. When a large or problematic claim arises, the broker, many times, will be best advised to stay out of the claims process completely and allow the insurance company to assume the burdens of advising the client in the claims process. However, this has problems too.
• Why Not Rely On The Insurance Adjuster?
The Insurer has strong incentives to keep claims costs down. The heavy claims backlog that plagues most companies restricts the amount of time the adjuster can spend with the claimant. If the adjuster is not available to answer the claimant’s questions, who is? Asking an insurance company adjuster for help or advice is analogous to going to the IRS Auditor for tax advice. One hires an expert to represent them in tax preparation rather than rely on the Internal Revenue Service whose motivation is to collect taxes. The same can be said about the insurance company whose motivation is profit. They, the carrier, are going to do “what’s fair” to them, however, “what’s fair” to an insurance company many not be fair to the Insured, as is the case many times.
• What Help Can An Insured Get?
There is an industry known as Public Adjusters or Claims Consultants for the Policyholder who can help. As claims experts who handle hundreds of claims a year, Claims Consultants know the ins and outs of the claims process. We understand the mentality of the insurance company and how to prepare a claim that they will readily accept. We can give specific advice to claimants based upon our experience with their specific industry and their individual needs. Claims Consultants for the policyholder handle all of the required tasks of claims submission keeping the insured best interest in the forefront of the process, thus allowing the Insured to concentrate on re-establishing their business and their lives. We also reduce the time spent in the adjustment of the claim by the Insured as well as the broker. Our goal is to produce a better recovery for the Insured and quicker than they can on their own with less time spent on the claim and more time spent keeping their business viable. Not all losses require the help of a public adjuster. We usually do not get involved in small cases and most times you can be of help to them in this type of loss. If the claims are over 75K or have problems manifesting themselves at the onset on smaller ones then we are needed.
• What Help To The Broker Is The Claims Consultant?
The Claims Consultant and broker can work as a team, thus making the broker/agent part of the claims process, yet reducing or eliminating, completely, any liability associated with advising clients in claims situations. By assuring the successful settlement of claims, the broker is credited with this success and can expect the continued business from his or her Insured.
Without the professional help of a Public Adjuster/claims consultant, claims can go wrong! If due to circumstances an Insured receives what they perceive as an unsatisfactory answer (over expectation of what their claim is worth), the agent/broker can be blamed for writing bad insurance and will probably lose the account. The professional Claims Consultant can help to assure that this does not happen by accepting the burden and responsibility of the claims process. We steer the client in the right direction and focus the client’s vision as to what their losses truly are (real expectations). Of course if there are real issues such as underinsurance penalties (co-Insurance) we can many times reduce the effects of this by using techniques developed over the many years of experience we have. Most times your client will never know there was a problem if handled properly.
• What Services Can A Claims Consultant Provide That An Agent/Broker Cannot?
The better claims consulting offices are staffed with licensed Adjusters; Inventory Specialists; Accountants and CPA’s; Building Experts and Estimators who are all available to advise the Insured and to help document the claim. Once the claims are properly prepared and submitted, the Claims Consultant will follow through with negotiations so the claims are paid and the property is re-built or replaced quickly. As mentioned above, the Claims Consultant’s task is to fulfill all of the requirements stated in the contract of Insurance after a claim arises. The Claims Consultant can also find the extensions of coverage’s within a policy, thus taking fair advantage of the insurance bought and paid for by the claimant.
• How Is The Claim Prepared?
The first step in a typical claim would be a review of the insurance policy. If problems are noticed at this initial review, a meeting is held privately with the Agent/Broker to discuss any insurance problems that we foresee arising and work out a methodology to avoid or reduce these problems so as not to become issues in the future. Next, a detailed inventory of stock and equipment is undertaken by our Inventory Specialist. At the same time, if Real Property is involved, Building Estimators and Construction Experts are brought in to prepare a detailed Scope of Loss and Damage, detailing all of the necessary costs to rebuild or repair that structure. Once these steps have been completed, the Accountants are called in to prepare any accounting schedules necessary to support values of inventory, stock, etc., as well as to determine the extent of income loss suffered by the Insured. After all of this is completed, it is packaged and reviewed with the client and then submitted to the insurance company. This is where the experienced Professional Adjusters begins the negotiation process. We work until a mutually satisfactory answer is arrived at, thus, closing the claim and leaving both Insured and Insurer satisfied with the outcome. While this tedious process is going on, your client is free to re-establish his business or her customer base and deal with their employees, thus insuring the continuity of the business.
• What Other Services Are Provided?
Although the service provided by each company vary, the better firms will work with you to establish insurance needs and make recommendations on Forms & Endorsements for future insurance purchases with your client . We also can;
Help establish the value of personal property, real property and business income needs for underwriting purposes.
Claims Consultants are available to the Agent/Broker for consultation for underwriting questions.
Provide qualified courses on claims and property insurance for state CE credit.
Of the above list, not all Claims Consulting firms can fulfill all of these duties. One should look for a firm that has the full staff of in-house adjusters, accountants and inventory specialists and other expertise to perform all of the duties above.
• How Does One Choose A Professional Claims Consultant?
Many policyholders feel the need to retain the services of a Claims Consultant mainly because of the time constraints they feel after a loss occurs. A second reason is because they realize that a professional, with experience, can do better than a novice handling their own claim, thus avoiding the learning curve. You can help your client choose the proper Public Adjuster by looking at the criteria listed below:
First and most important, check references of past clients. Not just by looking at the name but by making the phone call. All reputable firms should provide a list of past clients including names and phone numbers for contact.
Check current licensing status of the Claims Consultant. Look at the DOI’s web site to insure that the consultant or Public adjuster is current in their licensing.
Does the firm have membership in both professional organizations such as the National Association of Public Adjusters (NAPIA) or the California Association of Public Insurance Adjusters (CAPIA) Are they affiliated with any other insurance groups such as IIABA, PIA, IBA-West.
Is the professional staff accredited through the National Association of Public Insurance Adjusters? NAPIA issues two accredations. One is the S.P.P.A. (Senior Professional Public Adjuster) and the other is the C.P.P.A. (Certified Professional Public Adjuster). In order to earn a designation, one must go through lengthy education courses and real-time experience in the practice and then pass rigorous tests, similar to the CPCU designation
Does the firm have full support personnel?
Do they have Inventory Specialists on staff? (not contracted out)
Do they have Accountants and CPAs on staff? (not contracted out)
Do they have Claims Adjusters, Building Experts and Estimators to fulfill your client’s needs? Do they have the expertise on equipment and machinery analysis? These are important tools that the public adjuster uses!
Checking with the Better Business Bureau, the local Chamber of Commerce can also lead you to the right Professional Claims Consultant.
In conclusion, by calling in the Claims Consultant at the onset of a claim, Public Adjusters can advise and assist your client on your behalf to steer them in the right direction, thus avoiding the many traps and pitfalls that the Insureds usually find themselves in when handling large claims. If and when problems of value and loss, coinsurance or missing or inadequate endorsements arise, we are there to minimize or avoid completely the effects of these problems thus reducing the exposure to the agent for E&O suits. When the handling of the claim produces an acceptable answer to your client and one that the insurance company finds acceptable as well, the Insured is left with a positive perception of the claims experience and your carriers are happy. The net effect of this is that the client feels the agent/broker did a good job on his or her behalf in placing the insurance with the carrier and this can lead to a long relationship between you and your client.
About the Author: Robb Greenspan, SPPA is a senior partner and second generation owner of The Greenspan Company/ Adjusters International, a public adjusting firm was established in Los Angeles 1946. Greenspan is dedicated to representing the policyholders interest in property claims only. He has written numerous articles and papers on insurance and teaches continuing education for agents and brokers as well as other professionals for over 20 years. Greenspan is currently a member of the Curriculum Board for the California Department of Insurance and past member of the Insurance Commissioners Consumer Complaint and Unfair Claims Practices task force. He holds the Senior Professional Public Adjusters accreditation issued by the National Association of Public Adjusters.
Wednesday, November 7, 2012
Frozen Turkey Thrown by Teenager Causes Severe Damage to Passenger and Vehicle
Thanksgiving is just around the corner! Although this isn't a happy holiday type story, it definately ties insurance and Thanksgiving together. Check out this article by Laurie Infantino about property damage and bodily injury caused by a Thankgiving turkey.
Written By:
Laurie Infantino, AFIS, CISC, CIC, ACSR, CISR, CRIS
President of Insurance Community Center
I saw the story on TV recently and my first thought was thank goodness this was not my son who threw the turkey. It is only because he had other mischievous plots in mind. The incident occurred on Long Island in Lake Ronkonkoma on November 13, 2004. The injured woman has just published a book on the accident titled, No Room for Vengeance, and has been featured on several talk shows. FOX News said the release of Ruvolo’s book comes just after a similar shocking story made news around the country, in which Manhattan mother Marion Hedges was severely injured after kids pushed a shopping cart off of a fourth floor walkway onto the ground below. It landed on Hedges.
The accident that injured Victoria Ruvolo occurred when a 20 pound turkey was thrown out of a moving car and smashed into her windshield. The driver was struck and immediately lost consciousness. Were it not for her friend, in the passenger seat, leaning over and grabbing the steering wheel, who knows how many people might have been killed. Ruvolo sustained serious injuries and required hospitalization for three months.
Police say they had pictures of the assailants, five teenagers caught on store surveillance tape buying the turkey at a supermarket. They bought the turkey with a stolen credit card. This was a somewhat unique set of circumstances. The driver was 19 years old. Too often these crimes go un-solved as people throw items from freeway overpasses, shot paint bombs or spray paint from guns blinding passengers and other such mischief.
This case was different, the five teenagers were arrested. The driver was arrested on charges of first-degree assault, reckless endangerment, forgery, criminal mischief and criminal possession of stolen property. The four other teenagers were charged with criminal possession of stolen property. A wonderful side note to this story is that Victoria received the Most Inspiring Person of 2005 from BeliefNet because of her appealing to the judge to NOT send the assailant away to serve a 20 year sentence. She insisted on offering him a plea deal. Cushing could serve six months in the county jail and be on probation for five years if he pleaded guilty to second-degree assault.
Now to the question of the hour—is this covered by insurance. We might try looking at the Homeowners Policy first but will not find coverage there for a loss that occurs from the ownership of usage of a vehicle. So now we look at the Personal Auto Policy and surprise—surprise. The policy states:
We do not provide Liability Coverage for any "insured":
1. Who intentionally causes "bodily injury" or "property damage".
The question will be did they “intend” to hurt someone by throwing the turkey or did they just throw the turkey as a prank. Courts will look very strongly at the “intent” of the act and in most cases will determine that it was not an “intentional” bodily injury. Clearly if the PAP responds in the manner we will look to our umbrella for excess limits. What is interesting is that the PAP appears to have a much broader response then the most current edition dates on the Homeowners Policy. Here is an example of the language the ISO 2000 edition contains:
E.1. Expected or Intended Injury “Bodily injury” or “property damage” which is expected or intended by an “insured” even if the resulting “bodily injury” or “property damage”:
a. Is of a different kind, quality or degree than initially expected or intended; or
b. Is sustained by a different person, entity, real or personal property, than initially expected or intended.
Questions about points discussed in this article? Tague Alliance can help answer any questions you may have, about this article, or about becoming an Independent Agent with SIAA. Call the office at (760) 729-1143, or email at info@taguealliance.com
Written By:
Laurie Infantino, AFIS, CISC, CIC, ACSR, CISR, CRIS
President of Insurance Community Center
I saw the story on TV recently and my first thought was thank goodness this was not my son who threw the turkey. It is only because he had other mischievous plots in mind. The incident occurred on Long Island in Lake Ronkonkoma on November 13, 2004. The injured woman has just published a book on the accident titled, No Room for Vengeance, and has been featured on several talk shows. FOX News said the release of Ruvolo’s book comes just after a similar shocking story made news around the country, in which Manhattan mother Marion Hedges was severely injured after kids pushed a shopping cart off of a fourth floor walkway onto the ground below. It landed on Hedges.
The accident that injured Victoria Ruvolo occurred when a 20 pound turkey was thrown out of a moving car and smashed into her windshield. The driver was struck and immediately lost consciousness. Were it not for her friend, in the passenger seat, leaning over and grabbing the steering wheel, who knows how many people might have been killed. Ruvolo sustained serious injuries and required hospitalization for three months.
Police say they had pictures of the assailants, five teenagers caught on store surveillance tape buying the turkey at a supermarket. They bought the turkey with a stolen credit card. This was a somewhat unique set of circumstances. The driver was 19 years old. Too often these crimes go un-solved as people throw items from freeway overpasses, shot paint bombs or spray paint from guns blinding passengers and other such mischief.
This case was different, the five teenagers were arrested. The driver was arrested on charges of first-degree assault, reckless endangerment, forgery, criminal mischief and criminal possession of stolen property. The four other teenagers were charged with criminal possession of stolen property. A wonderful side note to this story is that Victoria received the Most Inspiring Person of 2005 from BeliefNet because of her appealing to the judge to NOT send the assailant away to serve a 20 year sentence. She insisted on offering him a plea deal. Cushing could serve six months in the county jail and be on probation for five years if he pleaded guilty to second-degree assault.
Now to the question of the hour—is this covered by insurance. We might try looking at the Homeowners Policy first but will not find coverage there for a loss that occurs from the ownership of usage of a vehicle. So now we look at the Personal Auto Policy and surprise—surprise. The policy states:
We do not provide Liability Coverage for any "insured":
1. Who intentionally causes "bodily injury" or "property damage".
The question will be did they “intend” to hurt someone by throwing the turkey or did they just throw the turkey as a prank. Courts will look very strongly at the “intent” of the act and in most cases will determine that it was not an “intentional” bodily injury. Clearly if the PAP responds in the manner we will look to our umbrella for excess limits. What is interesting is that the PAP appears to have a much broader response then the most current edition dates on the Homeowners Policy. Here is an example of the language the ISO 2000 edition contains:
E.1. Expected or Intended Injury “Bodily injury” or “property damage” which is expected or intended by an “insured” even if the resulting “bodily injury” or “property damage”:
a. Is of a different kind, quality or degree than initially expected or intended; or
b. Is sustained by a different person, entity, real or personal property, than initially expected or intended.
Questions about points discussed in this article? Tague Alliance can help answer any questions you may have, about this article, or about becoming an Independent Agent with SIAA. Call the office at (760) 729-1143, or email at info@taguealliance.com
Tuesday, October 30, 2012
Workers’ Compensation Five Simple but Critical Tips
As a business owner and employer, do you want to know how five simple but critical tips can help you impact your workers’ compensation costs?
Impacting your workers’ compensation bottom line.
1. Timely reporting. Whether compensable or questionable, timely reporting mitigates total claim cost. Providing adequate and accurate information assists the claims handler in adjusting the claim and providing appropriate benefits. Questionable claims need immediate attention so that the investigation activities are completed within the 90-day window for making a compensability decision. The trigger for the 90-day clock to begin is the date you knew about the claim, not the day you report it to your insurance carrier.
2. Take control. Reforms included in SB899 provided an alternative mechanism for managing medical utilization and costs through the use of Medical Provider Networks (MPNs). Consult with your carrier regarding the MPN implementation process. Ensure that you display the requisite informational posters and distribute required notices and pamphlets. Your insurance carrier or claims administrator should be able to provide these documents to you. Just remember, absent the requisite poster and pamphlet, even the most basic form of medical control is lost.
3. Return to work. Incentives are available for providing permanent return to work opportunities. Additionally, productivity, morale and the overall cost can be positively impacted. Effective with injuries on or after January 1, 2005, if you employ more than 50 full time employees, the cost of a claim can be impacted either negatively or positively depending upon the ability to offer a return-to-work opportunity for an injured worker. This is done via a 15% reduction or a 15% increase for each payment of permanent disability indemnity. The reduction is applied if return to work is offered even if the injured employee does not accept the offer. Conversely, the increase is applied if return to work is unavailable and/or NOT offered.
4. Stay engaged and connected. Maintain and insist on high levels of communication with your injured worker and claims handler. Continually monitor and review the status of every open claim. Provide requested information expeditiously.
5. Use experts. If you lack the expertise, do not hesitate to consult with experts to assist in managing this bottom line expense. It is well worth the investment.
Diana B. Henderson The founder and president of The Henderson Group, a workers’ compensation and disability management consulting and training firm in Newport Beach, California. With more than twenty-five years of hands-on experience, she has worked in both the corporate and service provider communities. She has worked at Aon Risk Services in a consulting role and Hunt-Wesson Foods as their National Workers’ Compensation Manager responsible for their in-house California workers’ compensation claims handling operation.
Diana consults to both public and private sector employers on a wide range of issues. She assists in developing cost-effective approaches consistent with the client’s overall operating philosophy and employee relations objectives. Diana is often utilized as a litigation consultant and expert. She also develops and conducts highly interactive and comprehensive workshops.
| Created by: Diana B. Henderson The founder and president of The Henderson Group, a workers’ compensation and disability management consulting and training firm in Newport Beach, California. With more than twenty-five years of hands-on experience, she has worked in both the corporate and service provider communities. She has worked at Aon Risk Services in a consulting role and Hunt-Wesson Foods as their National Workers’ Compensation Manager responsible for their in-house California workers’ compensation claims handling operation. |
Questions about joining SIAA? Contact Tague Alliance at (760) 729 - 1143, or info@taguealliance.com. Website: http://www.Taguealliance.com
Tuesday, March 27, 2012
Tague Alliance - New Office
Hello Everyone....
We have moved our Tague Alliance office to a more functional space and are very excited about the new digs. Our physical address is now: 380 S Melrose Drive, Suite 414 in Vista, CA 92081.
The Tague Team
We have moved our Tague Alliance office to a more functional space and are very excited about the new digs. Our physical address is now: 380 S Melrose Drive, Suite 414 in Vista, CA 92081.
The Tague Team
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