Agency of the Month

We are so excited to be chosen as Acuity's Insurance Agency of the Month! Below is the article featured in September 2013 issue of InFocus.

Mid-State Insurance Agency of the Month

As he sat in a diner over 25 years ago waiting for a client, Joe LaBarbera sketched out a plan for his fledgling agency on a yellow legal pad. He's long since lost that sheet of paper, but he’s never lost the vision for what he wanted Mid-State Insurance to be.

"When I reflect back on the history of this agency, it looks a lot like the way I drew it up on paper,” says Joe, President of the agency headquartered in Mequon, where he resides with his wife of 25 years, Christine, and their three daughters.

Today the agency has a staff of I6 and writes a mix of P&C, life/health, and employee benefits coverages.

Mid-State Insurance has a significant book of commercial business in automotive, contractors, manufacturing, habitational, and distributor classes.

Growing Pains

Of course, having a vision for the future of a business doesn’t make it happen. When Joe founded the agency in 1986—fresh out of college and equipped only with, in his words, “a pen and paper and an IBM computer”—he faced a host of challenges.

“The biggest was credibility,” Joe recalls. “It was very difficult to get a contract with a carrier and to convince prospective customers that a 23-year-old agent could service their business and personal insurance needs.”

It took hard work, 16-hour days, and encouragement from both his father, Peter, and his then-girlfriend Christine to get the business off the ground. Mid-State Insurance's first P&C contract was with ACUITY. “ACUITY took a chance on me, and we’ve grown together ever since—one policy at a

time,” Joe says.

In 1989, Joe’s sister, Lucy Kolb, joined the firm. She's been with the agency ever since, managing personal lines as a Customer Service Representative and is a prime example of the longevity of the agency’s staff.

“It takes a staff of very good people to grow an agency, and that’s what we have,” Joe says.

Success Story

With the exception of one agency acquisition in the

90s, Mid-State Insurance has grown by maintaining a high customer retention rate and writing 95 percent of new clients through referrals.

“Our customers are hardworking people at small to medium sized businesses, just like we are,” says Joe, who has always believed in being involved with people and organizations outside of the office. As a past President of the local Chamber of Commerce, School Athletic Association, and Homeowners Association, as well as being a soccer and softball coach in the community, Joe has met many individuals and business owners with similar interests.

“Now that my children have grown, I am focusing more on involvement with non-profit charitable organizations to stay involved in the community while giving back to those who need us most,” he says.

Building a new headquarters in 2006 has propelled the agency’s growth in personal lines. “Previously, we were located in an office park, which limited our visibility. Being in an area now where people drive by every day has paid dividends," Joe explains.

Mid-State Insurance is also capitalizing on social media.

When Joe’s daughter, Alyssa LaBarbera, interned at the agency during college, she helped create the agency’s presence on Facebook and other social networking venues.

Although the agency’s trajectory has followed the path Joe envisioned, there has been one development he did not foresee.

"I didn't expect all the positive collateral rewards that came with growth,” Joe says. “I didn’t anticipate

how rewarding this career would be and, most importantly, the friendships I would make with customers, staff, and carrier employees.”

Small Employers! Don't Drop your Group Health Plan Yet. READ THIS FIRST!!

Under the "pay or play" federal health care reform rules, an "applicable large employer" will be subject to penalties starting in 2014 if it does not provide satisfactory health insurance coverage to full-time employees.  Generally, an applicable large employer is one that had 50 or more full-time employee equivalents during the preceding year.

In some instances, the penalties payable by applicable large employers will be smaller than the amount the employer would pay for its employees' health insurance coverage.  Consequently, there is speculation that some applicable large employers will choose to pay the penalties instead of continuing to offer group health insurance to employees.

Contrast this with the decision employers are facing in the small group market, i.e., employers with fewer than 50 FTEs.  They may see premium increases in 2014 and thereafter due to other health care reform mandates.  As a result (and because these employers generally will not be subject to the same penalties as applicable large employers), some employers in the small group market are considering whether to drop their group health insurance coverage and, if so whether to compensate former participants in the plan to help pay for insurance in the open market.

Be aware--there is more to the equation than simple arithmetic.  If you are a small employer for PPACA purposes and considering dropping your group health plan and replacing it with additional financial support for your employees, here are some issues you need to consider.

Financial and Legal Considerations:

--Income and Payroll Tax Impact.  If you drop group health insurance and choose to increase the pay of applicable employees to make up for the loss of the employer contribution for their health plan coverage.  The increased pay will be subject to federal and state income taxes.  Plus, those extra wages will be subject to Social Security taxes (both the employer and employee shares) up to the Social Security wage base and Medicare taxes (both the employer and employee shares).

--Retirement Plan Contributions.  Another important consideration is that increased pay will likely constitute "compensation" for retirement plan purposes.  Thus, if your company contributes to a retirement plan for employees—such as a matching contribution or profit sharing contribution—your contribution likely will be larger than it would have been without the increases in pay.

--Workers Compensation.  If an employee’s taxable gross earnings increase, the potential disability benefit  the employee could receive in the event of a worker’s compensation injury will increase.  Your worker’s compensation carrier will likely pass these additional risks on to you through premium increases.

Discrimination Claims.  If you offer pay--in the form of increased wages—as a complete substitute for employer-provided health insurance coverage, you could create risks of discrimination claims from employees.  In order to abate this, you may consider calculating the overall savings obtained by not offering employer-sponsored health insurance, divide that savings by the number of employees in the company, and provide this average amount as a pay increase to all employees (or just employees who participated in the discontinued plan) employed at the time of the increase.  This option would seemingly reduce the potential arguments of discrimination with regard to the wage increase, but it may lead to discontent6 in the workforce.

Intangibles—Beyond the Price Tag:

Recruiting and Retention.  Many employers view health insurance as a recruiting tool.  Will elimination of health insurance coverage make it more difficult to recruit employees?  Are your competitors keeping their coverage?

Improving Health & Reducing Absenteeism.  Elimination of health insurance may reduce your ability to affect the health of your employees.  Your ability to combine wellness programs with health benefits will be lost, and the potential for absenteeism resulting from health problems may increase.

More questions about Health Care Reform?  Contact us to attend a free informational seminar.

Lower Premium = Higher Savings

With summer in full swing there are so many fun activities planned! It would be helpful to have a little extra cash, no?

 Mid-State Insurance has a few helpful hints to keeping your premium down:

1. Choose a higher deductible
2. Buy a package policy
3. Work side-by-side with your Mid-State agent
4. Ask about specific actions you can take to prevent losses
5. Avoid losses

At Mid-State, we are here to make your life a little easier. So talk to any of our agents to find out how to save money and spare stress, hopefully making your summer a little brighter. 

As always if you have any questions a Mid-State agent would be happy to answer them! Comment here or on Facebook! 

Press Release - Erica Borden Completes Insurance Sales Program

PRESS RELEASE

Contact Mary Ellen O’Connor 
Marketing Communications Manager

West Bend Mutual Insurance Company 262-334-6442 moconnor@wbmi.com

Erica Borden completes insurance sales program

WEST BEND, WI 14 June 2013 – Erica Borden of Mid-State Insurance recently completed the Producer Development Program offered by West Bend Mutual Insurance Company. The five- month program is designed to teach disciplines and behaviors that will help participants adjust to and benefit from the dramatic changes in the ever-changing insurance industry.

Training consists of classroom development and technical training, group discussions and assignments, independent course study, and one-on-one coaching sessions. The program concludes when each participant prepares and presents a business plan. West Bend agents who complete the program also receive continued coaching throughout their careers.

Twenty-three independent insurance agents who represent West Bend completed the program. They are from Wisconsin, Illinois, Iowa, Minnesota, and Kentucky.

Mid-State Insurance helps companies protect capital and financial assets with flexible insurance and financial planning programs that meets consumers’ specific needs. Since 1986, Mid-State provides clients with business and commercial insurance, employee benefits, home insurance, life insurance, health insurance and auto insurance.

West Bend Mutual Insurance Company, headquartered in West Bend, Wisconsin, provides property/casualty insurance products throughout the Midwest. Approximately 1,200 independent insurance agencies throughout Wisconsin, Illinois, Iowa, Minnesota, Indiana, Ohio, Michigan, Missouri, Kansas, and Kentucky represent West Bend. The company has been rated A (Excellent) or better by A.M. Best since 1971 and is consistently ranked at the top of a nationwide ease-of-doing business survey.

West Bend partners with Polestar Performance Program, Inc., a leader in the insurance training industry, to provide the program to independent insurance agents who represent the company.

###

How to be a Wise Insurance Customer

So you have an insurance policy.. now what?

Here are some tips from Mid-State Insurance for a wise insurance consumer:

1. Read your policy. - Auto insurance policies are legal contracts. It is written so that your rights and responsibilities, as well as those of the insurer, are clearly stated.
2. Know what your needs are and find an insurer that meets your needs. - Often times insurers insure more than just your car or home. Buy adequate coverage that services all of your insurance needs. 
3. Be safe. - In the long run, being a safe driver or homeowner is the best advice to keep your premiums low. Lower rates are generally paid by those who maintain a good driving record.

Spring Showers bring May Flowers...and Flooding...and Water Backup. Are you covered??

Many consumers have purchased Water Backup coverage on their homeowner policy, and assume that they don't have to worry about the heavy rainfall- which at times causes water to overflow into their home.  The fact of the matter is, there is still cause for worry.

Water Backup coverage is limited to just that; water which backs up through sewer drains, or sump pump failure/overflow. 

Any time water seeps in through cracks in your home's foundation, coverage is questionable.  Seepage is typically excluded from homeowner policies and coverage is usually not available for purchase.  It is the homeowner's responsibility to ensure that the foundation of the home is free from cracks and has been sealed to prevent water from coming in through the foundation walls.

If surface water floods over from outside into the home through window sills, doorways etc. your homeowner policy will not respond to water damage due to flooding.  Flood insurance needs to be purchased separately to cover these types of losses.

Your best bet is to ask your agent what coverage you currently carry, and what if any limitations exist on your current policy.  

One Text or Call Could Wreck it All...

Distracted driving is a dangerous epidemic on America's roadways. In 2010 alone, over 3,000 people were killed in distracted driving crashes.

The U.S. Department of Transportation is leading the effort to stop texting and cell phone use behind the wheel. Since 2009, we have held two national distracted driving summits, banned texting and cell phone use for commercial drivers, encouraged states to adopt tough laws, and launched several campaigns to raise public awareness about the issue.

Distraction.gov is your resource for learning more about distracted driving. Get the facts, get involved, and help us keep America's roadways safe.

Do you have a newly licensed driver in your household?  It is quite possible that the new driver has taken your lead in many choices they have made so far in life.  Distraction.gov is an informative website that offers statistics on the epidemic before us and resources to get involved.  Check it out along with your new driver, and take the pledge along with them.

http://www.distraction.gov/content/get-involved/take-the-pledge.html

BOOST YOUR CREDIT SCORE AND LOWER YOUR CAR

Credit scores are an important measure of your financial health. It should be no surprise, then, that they are used to determine risk in everything from obtaining a mortgage to buying auto insurance.  In fact, improving your credit score is one of the best things you can do to lower your car insurance rate.  Following are some ways to improve your credit scores:

Tread Carefully

Some credit cards routinely scan the items you buy and where you shop as part of their risk algorithms, with special attention to items that indicate future problems.  For example, you might want to think twice before buying retread tires, because it's likely to cost more in the long run and your credit card rates might go up and take those insurance fees with them.

Due Dates

Ever wonder what the number one cause of high credit card fees and car insurance increases have in common?  Late fees. Watch out for those due dates.  Better yet, sign up for automatic payments to keep rates low and credit scores high.

Check Your Score

Verify the accuracy of information in your credit report at least once per year. 

Visit www.annualcreditreport.com, or call 877.322.8228. These are the only

authorized sources under federal law.

Independent Agents Call for Consumer Protection

It's inevitable.  Spring showers bring may flowers; or so they say.  In the insurance world, spring showers bring "storm chasing" contractors too.  These are contractors who target neighborhoods and communities in the aftermath of a violent storm.  Many of them come from out of state, immediately following a natural disaster using high pressure tactics to pursuade homeowners into signing repair contracts before they have even had a chance to speak with their agent.  As with any claim, one should always wait until the insurance adjuster has an opportunity to assess the damage before proceeding with signing a repair contract unless advised otherwise by the adjuster.

Rely on your agent to obtain the name of a reputable contractor rather than one who is scouring the area immediately following a storm.

Legislation is being introduced to establish some basic consumer protections from the practices of fraudulent contractors.  The legislation would require that homeowners receive disclosure notices and contract termination rights from a contractor.  This bill would also prohibit rebating or other compensation of a property insurance deductible to induce consumers to enter into a contract.

Liability Awareness Lacking

Two-thirds of small business owners are worried employees might bring a discrimination claim or other employment-related charge against them, yet only 1.2 percent of small businesses recently surveyed by Hartford Steam Boiler actually purchase employment practicies liability insurance.  Not having such coverage could be trouble for the six million or so small commercial businesses, defined as having 100 or fewer employees.