AFC Insurance

Archive for the ‘Blogging & Binding’ Category

Social Media – A Powerful Promotional Tool
Whether an insurance agent sells commercial insurance or protection for consumers, using social media as a tool will undoubtedly enable him or her to realize success. Planning a marketing campaign on such social platforms as Facebook or Twitter will, indeed, raise client awareness as well as involvement in the type of products you are selling.

Some Tips for Marketing
Of course, if you are an agent, you should use prudence when you are presenting your products online. Otherwise, you’ll convey your message with more hype than what is acceptable, making it hard to reasonably explain the benefits of your insurance line to fans or followers. Therefore, convey your message by providing credible information, and do so personably.

Post on a Regular Basis
Write a regular post one to three times each week, preferably more often, and ask for your audience’s feedback to keep them engaged. For example, post a news story that is related to your product and pose a question at the end of the article. Be sure to follow up by positively responding to comments as regular posting will drive traffic to your site.

Frequently Use Video to Promote your Business
Some of the social media platforms you’ll want to make use of include the previously mentioned Facebook and Twitter as well as LinkedIn, Pinterest, Google+ and YouTube. YouTube is a particularly good social media site to use as videos are the fastest way to draw customers to your business. Creating a video can establish you as an expert in a short matter of time and swiftly raise your ranking in the search engines too.

You Just Can’t Ignore the Benefits of Social Media Marketing
Needless to say, if you are an independent insurance agent, you can’t overlook the benefits of using a marketing tool like social media.

References:
(1) Insurance Journal: 50 Awesome Social Media Ideas for Insurance Agencies
(2) Seeking Alpha: Will Social Media Change the Insurance Industry?

AFC’s Health & Human Services Program includes insurance designed for Homeless Shelters – those hard to place risks, which service the immediate needs of others by supplying food, shelter, clothing and safety. As the cold air encroaches and the holiday season approaches, it is a wonderful time to contemplate our own blessings and how we can help others in our communities.

Homelessness is a worldwide epidemic. According to the National Alliance to End Homelessness, the nation’s homeless population increased from 2008 to 2009 by approximately 20,000 people. The Children’s Defense Fund reported that 15.5 million children are living in poverty. That’s one in every five children. There is an obvious need for homeless shelters to continue providing for the community, and there are steps the organization can take to ensure safety for their occupants. As part of our insurance program, we offer coverages specifically designed to protect the operations of those who protect others.

A homeless shelter has a supply of donated canned goods and food that are provided by the community. In the event of a power outage or on-premises breakdown, the goods may get contaminated due to the shelter’s refrigerating, cooling or humidity control equipment. By adding the Food Spoilage/Contamination Endorsement to their insurance policy, they will be ensuring coverage.

Homeless shelters also have the probability to experience a bed bug infestation. Bed Bugs can be found anywhere — even in a five-star hotel. They are often found in areas where people sleep, generally in the creases of mattresses, box springs and bed frames. Bed bugs can easily spread on suitcases, boxes or items moved from residence to residence. Homeless Shelters can reduce their chances by managing what people bring into the shelter, such as book bags, carts, pillows and blankets. It has also been proven that sleeping with the lights on can be an effective deterrent.

When it comes to insuring homeless shelters, there is much more to consider than the physical building and the obvious slip and fall exposure. To find out more about our program, and insuring those risks that help others, contact AFC for more information. We have over 200 years of combined underwriting experience with social service organizations, and we are here to help you.

If you are interested in reaching out in your own community, visit the homeless shelter directory now so you can learn more about volunteer opportunities in your area!

References:
Children’s Defense Fund; “The State of America’s Children”; 2011
National Alliance to End Homelessness; “The State of Homelessness in America”; 2011

Throughout the holiday season most of us will be attending holiday parties, visiting friends and relatives, shopping and traveling. To keep this holiday season a joyous one, it is important to keep safe while driving. 

For those that plan to visit friends and relatives and attend holiday parties that may include the consumption of alcohol, please remember the following:

-         Try to designate a driver. If you plan to attend the party solo, limit your alcohol intake to one drink per hour.
-         If you see others that you may feel have had too much to drink, try to find that person an alternate means of transportation in order to get home safely.
-         If you are hosting a party, remember that each person attending the event is your responsibility. This requires extra attention to your guests and taking measures to prevent them from driving while intoxicated.

Another hazard that shows itself with the presence of colder weather is snow or ice on the roads. Try the following to minimize the chance of an accident:

-         Stay up to date with local traffic and weather reports as well as winter/storm advisories.
-         If you are traveling out of the area, read these same reports for your end destination. And if your travels are taking you a great distance, don’t forget to monitor those reports for the in-between areas.
-         Also, if you are making a long trip it may be advisable to stay overnight at a hotel and limit driving to daylight hours. 

Many of us will spend a good deal of time shopping for gifts and returning presents throughout the holidays. A few tips to help keep you safe:

-         Talking and texting on cell phones can create a major distraction.  Try and wait to talk or message when you are not behind the wheel.
-         Parking lots will be extra crowded.  Try and use patience when parking and leaving the lot. Many people will be in a hurry and will not pay attention to their surroundings. One must be aware of not only other vehicles, but also pedestrians.

These are just some tips to remember as you are enjoying the holidays.  But keep in mind, that even though you may be using extra caution, others may not be so mindful;  therefore, requiring each of us to pay a little more attention while we are on the roads this holiday season. 

Have a safe and happy holiday

Nobody likes change, right? Well, the insurance industry is constantly changing. We’re used to it! But in a perfect world, insurance policies would be issued correctly the first time around and there wouldn’t be a need for change. There wouldn’t be any endorsements to a policy during the course of the year. One can only wish! But the truth is that endorsements are necessary in order to accurately maintain the policy for an insured. 

An endorsement is a written document that modifies an insurance policy by changing the coverage or information written under a policy. This may include additional coverages that were not included in the original policy or merely amending a mailing address. And believe it or not, there are ways to simplify this endorsement process.

Here are five ways to cut down on the amount of endorsement requests:

1. Use an Acord Change Request Form. (It includes all the questions for the answers we’ll be looking for in your request.)
2. Submit accurate and complete information.
3. Pay attention to detail. Even the smallest piece of information can be important.
4. Read and review your request for any errors before submitting the change. 
5. Specific to AFC Insurance, submit the request to endorsement@afcins.com for the fastest turnaround response.

Here are reasons why this may benefit both the broker and your insured:

1. Accurate rating and issuance of endorsement (accuracy assures correctness of the changes being requested).
2. Limits mistakes and miscommunication.
3. Faster issuance and turnaround of endorsement.
4. Use of time is more effective and efficient.
5. Limits correspondence regarding questionable endorsement requests.

As long as there is a need for insurance, there will be a need for endorsements. Information is constantly changing and your insureds won’t stand still in time! If you have any questions when submitting an endorsement request, please don’t hesitate to contact us.

Large or small, any business that suffers a payment card data breach and is found to be out of compliance with Payment Card Industry (PCI) Data Security Standards can face everything from steep contract penalties to negative publicity. While virtually every retailer, merchant and service provider is aware of the risks of credit and debit card fraud, the fact is that many don’t realize the cost and extent of the penalties and other expenses they can face from a breach in their payment systems. “Mainstreet” businesses are particularly vulnerable because they don’t often have the resources needed to properly manage their risk.

Examples of non-compliance include:

• Improperly storing cardholder date on point-of-sale systems connected to the Internet or wireless networks.
• Using system default passwords instead of customized passwords.
• Exposing unsecured networks to the Internet.

AFC Insurance manages a program for Pizza Restaurants and Delicatessens. One of the features of our program is an optional coverage that can be provided for this risk. Payment Card Security coverage is the only one of its kind in the industry. It is designed to protect a restaurant from the impact of non-compliance issues following a data breach.

The endorsement provides coverage for:
• Penalties, charge backs and payment card reissuing expenses outlined in the merchant service agreement.
• Upgrades to software and hardware systems (including installation and re-scanning services) that will bring the restaurant into compliance following a data breach.
• Extra expenses incurred, such as late payment fees and other bank service charges. If the credit providers freeze cash flow and hold penalties and expenses from receivable accounts.
• Extra expenses incurred to protect or restore the risk’s reputation.
• Extra expenses incurred to promote the business to the affected individuals after a breach, such as a restaurant gift certificate or service coupon.

This is just one of the many special coverages offered in AFC’s program for Pizza Restaurants and Delicatessens. For more information, visit www.afcpizza.com.

Information provided by Fireman’s Fund Insurance Company.

You work very hard trying to get your foot in the door on an important account. The last thing you want to hear is that it has been declined. Let’s face it, we’re in a soft market and that just makes things that much tougher. 

All carriers have specific “applications” they prefer to use, which makes it more difficult to have all the information completed when you are submitting it to several carriers. So what are you to do?  In order to improve your chances as to writing the account, you have to answer one basic question… Why?  Why should Carrier “X” write this account? You should try to gather as much information about the account as you can to either make your case or alert the carrier as to pending items. 

If the account has loss issues, provide as much claim detail as possible.  If there are open losses– why are they open?  If there is a frequency issue– what is the account doing to minimize these occurrences?   

The more information in your submission, the better your chances will be. If you are submitting Acord applications, they should be completed fully. There are also additional items that would be helpful. For example, when you are submitting auto, find out who will be driving the vehicles and provide a drivers list with the drivers’ license information. Also, does anyone drive a personal vehicle on company business and why?

Does the insured have a website? 

Unfortunately, most of the time, carriers will still come back with questions no matter how much information you provide them. But, with a complete submission, you are still ahead of the game if not for the current submission, but on a future one. 

The paratransit services are a great asset to the elderly, handicapped or incapacitated, but can also be a great risk if the insured does not have a safety program.  Not only should the drivers be responsible, but management as well. By incorporating a safety program, drivers are trained, driver reports are checked and a vehicle maintenance schedule is kept. This greatly increases the safety of passengers and reduces the risk of loss. In terms of loss, it can mean loss or damage to the vehicle, to another’s property, injury to the passenger, possibly loss of life and potential lawsuits.

MVR- Motor Vehicle Reports should be done at hire and annually. The reports should then be reviewed by management or safety director with immediate action taken for serious violations or if there is a consistency of less severe incidents. Would you want someone with a DUI/DWI or several accidents on his or her record to be transporting your loved ones?

Drivers should also have experience with the wheelchair accessible vans and know the proper handling and securing of passengers. Some training in basic first aid would be helpful as well.

Vehicle Maintenance- Properly maintained vehicles are a huge safety measure.  State inspections, as we all know, are required. As-needed maintenance is okay, but pre-trip and post-trip inspections can save on costly repairs and have added safety for your clients. Keeping a vehicle maintenance schedule could be an asset for such a daunting task.

Allowing employees to use company vehicles for personal use can put the insured at even greater risk of loss. Is the vehicle locked? Parked in a less desirable part of town or in a high traffic area? These are just some things to think about before allowing company vehicles for personal use.

Management- Insured is ultimately responsible for the safety of their employees and clients. Driver education is highly recommended. Some options are classroom training, online education and on-the-road training.  Driver training courses can be taken as an extra measure and usually inexpensive compared to what it can cost in losses due to carelessness or inexperience. Use of electronic devices such as cell phones and computers should be discouraged.

Vehicles can be equipped with tracking devices to help manage routes, scheduling, assess operational safety and for assessing speed. Anti-theft devices are also a plus.

AFC Insurance places our paratransit accounts with Travelers Insurance. When an account is written, risk control is provided by Travelers. Inspectors will visit the insured to review and assist with ways to improve the safety for the business. The Travelers risk control inspector can set you up with access to Travelers online tools to guide the insured along so they can reduce risk and prevent loss. All this is provided at no additional cost to the insured!

This information is just a sampling of the many ways the insured can maintain the safety of their drivers and passengers. When driver management is exercised correctly, a company’s reputation will uphold against its competition. Remember: Reputation can mean the difference of choosing you over other businesses.

Marketing is a very important aspect to any company’s success, and that’s an understatement. You may have the best product for the consumer to purchase, but if the product is not marketed correctly, your success will be limited.

Think about this — How often have you seen a horrible product sell and wonder why?  It’s because the seller managed a successful marketing campaign. In addition, each industry is different, even the insurance industry. So my question is — what methods are best to market an insurance product successfully?

First step would be to learn the product thoroughly. Understanding the industry in which you are selling the product is very important. You need to know what the insured is doing and what they are facing regarding losses or liability within their industry. By learning this you will be able to speak on the same level as the insured and this will enable you to close more deals.

Secondly, understand what makes the policy you are offering different from the competitors. This will give you a strategic point of entry to discuss the differences between your policy and the policies of your competitors. It may be an additional coverage or an additional service that you offer. Knowing the differences will make you more informative to the insured regarding your product, which is exactly what a consumer looks for in a creditable business.  

Finally listen to the industry and be ahead of the curve. Be proactive in making suggestions regarding changes to your carrier to make the policies more attractive. The insured knows where the policies can be improved and by listening to their constructive criticism you will be able to make suggestions to get the policies improved.    

There are many additional ways to market your business, but the above describes the foundation on which you can develop a successful marketing program.

Last week we discussed COPE—what it is and what it means to the underwriting and rating of property exposures. COPE stands for Construction, Occupancy, Protection and Exposures, which we explained are the basic attributes that contribute to the likelihood and severity of a loss to property. So why is this information important to those of us that work in the insurance industry?

Having a full picture of the condition and attributes of a property give the underwriter a better understanding of the risk associated with insuring that property. This supporting information could mean the difference between the acceptance and declination of a marginal submission. The COPE information helps us sell the risk to company referral underwriters. It could also be the warning flag that helps the company and agent avoid writing coverage on a property that is likely to experience large losses.

Full COPE information also contributes to the underwriters correctly pricing coverage for the submission. Pricing that is both competitive and adequate helps the agents obtain the business and provide the premium income that is necessary for the continued solvency of the insurance company. The more information we have about the subject property will also aid us in our negotiations when pricing considerations are being requested.

Yet another benefit of a full review of the risk exposure is that loss control issues can be addressed and corrected. This investment of resources may reduce the overall risk of the property and make it a better opportunity for both the agent and insurance company.

As you can see, COPE is one of the most important parts of property underwriting and could be the difference between a profitable and unprofitable book of business.

COPE is quickly becoming a basic staple in property underwriting and rating. Every time we turn around we are asked to prepare a summary of the “COPE” for our property exposures. But what is this acronym and why are we being asked to gather and provide information beyond the format of an Acord 140?

COPE stands for Construction, Occupancy, Protection and Exposures – The basic attributes that contribute to the likelihood and severity of a loss to property.

Construction

Various construction features contribute to or prevent the spread of fire and other perils. Categories 1 through 6 are assigned by ISO based on the materials used for the load bearing exterior walls, materials used for the roof and floors, and the fire resistive rating of materials used in the general construction.

The loss costs from which property premiums are derived are adjusted to reflect the construction of the building under consideration.

Special consideration must be given to building with high stories, large horizontal areas without fire divisions, and vertical openings that allow fire to spread across floors. These attributes make a building more susceptible to greater damage from fire.

Occupancy

ISO class codes and their loss costs are based on an occupancy rating system that considers a basic occupancy charge reflective of the activities being performed by the insured, the combustibility or likelihood that the property held inside the building will catch fire and the susceptibility of that property to become damaged if a fire or other loss occurs.

Additional factors that could conceivably contribute to loss such as heat generation from cooking equipment, fire accelerants used in the course of business, and housekeeping issues that result from excessive dust and dirt must also be considered at evaluating the occupancy risks.

Protection

Public fire protection services vary greatly based on whether the municipality where the property is located supports a paid fire and rescue force or if it relies on volunteers to perform these services. Ratings for the public fire protection of a community are assigned by ISO on a scale from 1 (most desirable) to 10 (least desirable). In the calculation of property premium, a factor is applied to the loss costs, which increases or decreases the final rates to reflect the level of public fire protection available to the property.

Private fire protection services are the various alarm and fire suppression systems, which are installed by the property owner. Investment in these systems can greatly decrease the chance and extent of loss to the property. Pricing discounts are usually applied for private fire protection systems through the assignment of superior construction classifications and application of schedule credits.

Exposure

The exposure is any condition or situation from an external source that may cause or contribute to a loss at the insured property. The activities performed within and the proximity of a neighboring property may have the potential to impact the occurrence and severity of loss to the property.

While there are not ISO supported classes or factors that address the exposures of a property, underwriters may discount or surcharge premium through the application of schedule credits and debits.

Please join us next week to see why COPE is so important…