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Cdn Publication Mail Registration 40018149February - March 2014

Dragon Power

Building Business withConstruction Clients

More Clients NeedB&M Than You Think

Arlene Dickinson—Keynote atIBAA’s “Prairie Power” Convention

Publisher and Editor Annette HubickPrinting McCallum Printing GroupDesign and Layout Ron LeckeltAdvertising Michele Schuldhaus 780.448.2890 [email protected]

The Alberta Broker welcomes articles about the insurance industry and its people. Letters to the Editor are welcome.The opinions and viewpoints expressed in The Alberta Broker may not necessarily be those of the association and its members.

Material in The Alberta Broker may be reproduced with the credit to the author and the following: “Reprinted from the Insurance Brokers Association of Alberta’s magazine - The Alberta Broker (date).”Please send a copy to the publisher.

Published six times annually by:

9249-48 Street Edmonton, Alberta T6B 2R9T: 780.448.0936 • F: 780.465.6201E: [email protected]

The Alberta Broker is the official publication of the

President Gord EndersChief Executive Officer George Hodgson

3010 Calgary Trail, Edmonton, AB T6J 6V4T: 780.424.3320 •1.800.318.0197F: 780.424.7418 • www.ibaa.ca

February - March 2014 IN THIS ISSUE

The Alberta Broker February - March 2014 3

3 Message from the Editor

4 Message from the President

6 Dragon Power Arlene Dickinson— Keynote at IBAA’s Convention

10 Northern Exposure

12 PYIB Perspective Convention 101

14 Building Business Attracting and Servicing Construction Clients

18 Legal-Ease Absentee Homeowner vs. Wawanesa: Round Two

20 Commercial Break Having a Breakdown—More Clients Need Boiler & Machinery Coverage Than You Think

22 WICC Update Tough Year for Fundraisers

24 The Advocate Top 10 Reasons to Attend the IBAA Convention

26 Chinook Country Report

28 Professional Development Got “Edutainment”?

30 IBAA Course Listing

examines the result of an appealed court decision first reported in August 2012 on the case of the absentee homeowner vs. Wawanesa (page 18).• DidyouknowthatbrokerscanincreasetheirE&Oriskexposurebynotofferingequipmentbreakdowncoverage(boiler&machinery)to more of their commercial clients?Findoutwhyin“CommercialBreak” (page 20). And, still on the fence about whether toregisterfortheIBAAconvention?PYIBmemberScottRomans’spersonalaccount of his inaugural convention experiencelastyeardeliversanexcellentbroker-centricanswertothequestion,“What’sreallyinitforme?”(page 12).Asalways,Iwelcomeyourcommentson the magazine and suggestions for futurearticles.Dropmealine:[email protected].

interviewing her for an article to whet yourappetiteforwhatissuretobeaninspiring and insightful presentation (page 6).Confessiontime:Iwasmorethan a little intimidated and in awe of Arleneinanticipationofourtalk.Postinterview? Not as intimidated, as she speaksinavery“real”manner,butjustas in awe. LiketheIBAAconvention,thismagazine strives to deliver content to appealtoavarietyofreaderinterests.Forexample:• Wantideasonhowtoattractandserviceconstructionindustryclients?ReadKarenRutherford’s“BuildingBusiness”(page 14).• Provingtheoldadagethat“Itain’toveruntil…”our“Legal-Ease”article

Annette Hubick

Message from the EditorDoesanyonebesidesmethinkit’sironicthatthe“PrairiePower”conventionisbeingheldintheRockyMountains?Ok,I’mwritingthisafewhoursbeforeIboardaplaneformyvacationafteracoupleweeksofburningthemidnightoil,soI’malittlepunchy.The“thisisGod’scountry”JaspersceneryisonlyonereasonwhytheIBAAconventionhas so much to offer; for the other nine, turntoIBAACEOGeorgeHodgson’stop ten list on page 24. Ofcourse,there’snosuspenseontherevealofGeorge’snumberonereason;everyone’stalkingaboutit:ArleneDickinson,sheofbusinessandDragon’s Denfame,isheadliningtheIBAAconvention. I had the good fortune of

differenttimes,whatare“dutyofcare”andresponsibilityinremarketingclientsorbooksof business?•Whataretheadditionalcostsfortheextrawork involved? •Howwillthesecostsberecouped?•Whatimpactwillthishaveonclientretention?•Howwillprofitshareprogramsbeimpacted?Thesearejustafewquestionsweneedtobereviewingandanswering.Eachbrokerageneedsaplan—the potential impact to our businesses could bedevastatingwithoutastrongapproachtoriskmanagement.Theupsidetoallofthis?Thebrokervaluepropositionisstrongerthanever.Clientsneedour

professional advice to pro-tect themselves and theirassets,andtheyneedustoadvocate to insurancecompanies and regulatorstoensuretheyaretreatedfairlyandequitably.IBAAadvocacyeffortsonpropertyinsurance continue with insurers and other stakeholders. In discussions with

insurers,wecontinuetofocusonmulti-facetedsolutionsthatwouldseesharedresponsibilityforchanges amongst insurers, clients, claims operations andclaimsproviders.Theendresultcannotsimplybe increase premiums, reduced coverage and higher deductibles. Your individual efforts and messages backtocompanyrepresentativesareeffective—keepupthegreatwork!TheotherareaonwhichIBAAisworkingdiligentlyistelematicsandautoinsurance.IBAAhaspresentedthetypeofsolutionwebelievewillbestserveAlberta

Gord Enders

Message from the President

Wow!2013candefinitelybedescribedastheyearofextremeweather,and2014seemstobestartingoffthesameway—floods,hail, wind, ice storms and extreme cold.Fortunately,weCanadiansareaheartybunch. As I was watching one of the national newsprograms’year-endwrapup,Iwasencouragedtohearthenewscastertalkabouthowthe“ever-resilient”Albertansrecoveredfromthesummerfloods.Wealwaysenvisionourselvesthisway,butit’salwaysnicetoseethatourfellowCanadiansviewusin the same light. Our industry is based on resiliency.Wehelp en-sureourclients,industriesandmarketplaceareabletocomebackfromtragedy,rebuilding lives,businesses and theeconomy.Asbrokers,wearealso resilient, strengthenedbythebackboneofentrepreneurial spirit—andit’sagoodthingweare as 2014 will hold somechallengesforus.Weknowpropertyinsuranceischang-ing, and that means we have to prepare our businesses for it.IBAAcontinuestoworkwithinsurersformoderationinapproaches,butbrokersdohavetoprepare.Someoftheitemsbrokerswillneedtothinkabout:•Informingclientsofchanginglimits•Documentingchanginglimitsanddiscussionswith clients•E&Oexposures: – At what point does a client with changing limits need to be moved?–Withcompaniespotentiallychanginglimitsat4 The Alberta Broker February - March 2014

It’s an important initiative thatwe need to focus on to ensurethe broker remains integralto the sharing, distributionand protection of client data.

consumerstothesuperintendent’soffice.ThemodelpresentedisbasedontheInsuranceBrokersAssociationofOntario(IBAO)solution.Thismodeloffersabroker-providedsolutionthatensurestheprivacyof the data for the individual cli-ent.Thedatawouldbeportableandownedbytheclient(similarto the informationcontainedinanMVRorAutoplus).Thepresentationwaswellreceived and was for information purposesonly,asonlyinsurancecompaniescanseekapprovaloninsurance rating models. With thisareadevelopingsorapidly,our next steps include duediligence on the programscurrentlyavailableaswellasresearch on telematics as a whole. It’sanimportantinitiativethatwe need to focus on to ensure the brokerremainsintegraltothe

sharing, distribution and protection ofclient data.That’sitfornow…backtoansweringthosepropertyquestionsaboveformyownoffice.


6 The Alberta Broker February - March 2014

ByAnnetteHubick

Arlene Dickinson—Keynote atIBAA’s “Prairie Power” Convention

Dragon Power


er rags-to-riches story is the stuff of business legend.ArleneDickinson—broke,unemployed, singlemomwithnopost-secondaryeducation—parlayedherkeenpeopleandobservationalskills,relentlessdriveand an entrepreneurial spirit inherited from her father into a business empire. Dickinsonmarriedatage19andisthe mother of four children (and grand-motheroffive),whowerethedrivingforce behind her fierce determination to succeed. When she became divorced at age31,ajudgewouldnotawardherfullcustodyofherchildrenbecauseshewasunemployedandcouldnotprovideforthemfinancially.Thedesiretohaveherchildren with her full time and never risklosingthemagainmotivatedhertoworktirelesslytoachievefinancialindependence. HerpathtosuccessbeganwhenshelandedajobsellingadvertisingforaCalgary-basedTVstation.OneofhercolleaguesleftthecompanytojoinVentureCommunicationsandin1998,he and his partner invited Arlene to jointhefledglingmarketingconsultingfirm.Approximatelytenyearsin,shebecamethesoleownerCEOofwhatisnowrecognizedasoneofCanada’stopindependentmarketingagencies,withofficesinCalgaryandToronto. Although long recognized in business circles,itwasDickinson’sroleonCBC’stop-ratedtelevisionprogramDragon’s Den that catapulted her into thenational public spotlight and made her a household name.Tomanyviewers,sheisknownas“thesoftdragon”(perhaps because she is seated next tothetough,abruptdragon,KevinO’Leary?)butmakenomistake,sheisa shrewd business person and investor, knownforherkeenabilitytorecognizeemerging trends. In 2012, she founded ArleneDickinsonEnterprises,acompanydedicated to promoting the advancementof entrepreneurs. It does that through funding investments in entrepreneurial businessesandbycreating entertainingand educational media aimed at

entrepreneurs.Themanifestationofthelatteristherecentlylaunchedwebsite,YouInc.com,self-describedasanonlinecommunityforentrepreneursto connect, share their stories and find resources and support.Dickinsonisasuccessful,much-sought-afterpublicspeakerandwillbedeliveringthekeynoteaddressatthe2014IBAAConventioninJasperonMay5.Sheistheauthoroftwobooks:Persuasion, a best seller published in 2011 (also the name of a line of her productsincludingwine)andAll In, whichwasreleasedonDecember9,2013—thedayweengagedinourtelephone interview.

I understand that your Calgary office was hit by the floods in June and that you’ve just re-located and re-opened your office. What was the experience like for you and your staff? Horrible.We’restilldealingwithit.Thebrokerandthecompanyhavebeen fantastic but the experience was awful and overwhelming. I also felt a lot of gratitude that I had an insurance brokerwhocraftedapolicythatworked wellforourbusiness.It’scomplex—mypolicyisasthickasabinder.I’mgrate-fulwehadfloodinsurancebutthehardpart came with the process of proving theloss,especiallywhenwehadlostso continued on page 8

manyrecords.Boththebrokerandthecompanyrepresentativeshaveworkedwith us to help us through thisexperience.

Your keynote topic at the IBAA convention will be “Leadership and Strategic Marketing.” The topic outline states: “… why marketing must be a top concern of leadership, and why cre-ativity and accountability must go hand in hand.” How do you defineaccountability?It’saboutmorethanjustfinancialaccountability.Infact,itoftendoesn’tworkwelltomeasuremarketingagainstsolelyfinancialmetricslikeROI.Instead,marketingshouldbeevaluatedagainstwhatIliketocallVOI—valueoninvestment.It’saboutbeing accountable to what the business caresaboutwhetherthat’sbrandaware-ness, customer retention, etc. It all starts with having a plan in place.

How do you ensure that creativityand accountability go hand in hand when marketing your own businesses? CreativityandaccountabilityaretheveryDNAofourbusiness;theyareattherootofVenture’sphilosophyof“marketingdrivenbybusinessminds.”

KEYNOTE ADDRESS

Arlene Dickinson will be the keynote speaker at the 2014 IBAA convention in Jasper. Her topic is titled: Leadershipand Strategic Marketing.

“Like laying bricks to build a house, each dollar you spend on marketing should measurably build your business.” Marketing plays a fundamental role in all businesses—yet it is seldom held accountable the way other departments are. A superstarmarketer driven by corporate objectives, Arlene Dickinson shows us why marketing must be a top concern of leadership, and why creativity and accountability must go hand in hand. Otherwise, why bother with marketing at all? Dickinson, as she does weekly on Dragons’ Den, will help decision-makers grasp the essential strategic function of marketing in an insightful, accessible and frank talk, anchored squarely to the bottom line.

–David Lavin Agency

H


Have you ever had clients in the insurance industry? If yes, what did you learn about the industry, and marketing’s role in it?Yes.Ilearnedthatit’sveryoperationsandsalesdriven,moresothanmarket-ingdriven.Butwithonlineplatforms,regulatorychangesrequiringplainlanguage usage, commoditization, etc., withallthesechanges,marketingwillbe more important than ever.

A marketing challenge for insurancebrokers is that they are selling theintangible role of the advisor (to apublic that generally views insurance as a commodity) on a typically smallbusiness budget. What are some tips you could share? You need to define what it is thatyouofferbeforeyoucandifferentiateyourselffromothers.Thefactthatmanyinsurancebrokeragesdon’t[investinmarketing]isanopportunityforthosewho do.

The large majority of brokerage owners are insurance brokers, not marketers, by profession—how do they address that challenge? All business owners are in factmarketersasowningabusinessisinherentlyabouttakingaproductorservicetothemarketplace.Forsmallbusinessowners,it’sespeciallyimportantthattheyownthebrandthemselves. Theyhavetobethevoiceofthebrandand not delegate the definition of their brandtosomeoneelse.Theyhavetoensuretheirstaffismakingdecisionsthataretruetothebrand.Now,theymaynotbemarketingexperts,andthat’sokay.Therearepeoplewhomtheycanhire,ortheycanworkthroughtheprocesswiththeirteam.What’simportantis to have a plan.

How much should a brokerageexpect to spend on marketing? Thisishardtoanswerwithoutknow-ingaparticularbrokerage’sgoalsandoperationsbut,likemostbusinesses,ifyou’renotspending5–10%ofrevenueonmarketing,youcouldbeintrouble.

The best businesscomes from referrals;any referral marketingtips to share? Leverage social mediaplatforms.Peoplelooktheretogetrecommendations on where to do business.Usedwell,itcanbeaveryeffectivetoolespeciallyforbusinessesonabudget.Theyshouldalsoconsiderhowtheyrewardexistingclients.Newclientsareoftenoffereddealsandperksthatexistingclientsaren’t.

In today’s labour market, how do you attract people to your organization?Bybuildingyourbrandandensuringit’snotjustbeingsaidproperlybutbe-inglivedproperly.It’saboutbeingthekindofplacethatpeoplewouldwanttoworkin.It’sasmuchofapullasapushstrategy.

What’s the biggest marketing mistake that business owners make?Nothavingaplan.Nottakingthetimetothinkaboutstrategy—forbigthinking.WhatIoftenseeisalotoftacticalactivitywithoutthecontextofstrategy—whatIcall“randomactsofhope.”

How did your role on Dragon’s Den come about?

Theycalledme out of the blueto audition.Myresponsewas“Areyoukidding?”ButIdidit,andtheyaskedmetobeontheshow.

What do you like best aboutdoing the Dragon’s Den show? SeeingtheverybestpartsofwhatCanadahastoofferandwhatit’sallabout. I get to deal with entrepreneurs acrossCanadawhoareareflectionofthisgreatcountry.

There’s Venture, Dragon’s Den, books, investments and speaking engagements… what’s next for Arlene Dickinson? YouInc.It’sauniquecombinationofcontentandcommunitydesignedtoelevate the entrepreneurial experience globally,notjustinCanada.

continued from page 7POWER PLAYER

Arlene was chosen as a keynote because she isinnovative, entrepreneurial, extremely successfuland from Alberta. She embodies our theme of

Prairie Power—Blazing New Trails andshould be able to offer some excellentinsight into leadership and marketing

that will provide some takeawaylessons for our members to

utilize in their ownbusinesses.

—Rikki McBride,IBAA directorof operations


Theresponsehasbeengreatandwe’rereallyexcitedaboutit.

How do you find the balancebetween your family and work? Ithink“balance”isnotagoodtermbecauseitimplies50-50,whichisn’trealityandit’sdifferentforeverybody.I believe that entrepreneurship is a lifestylechoice,wherethepersonaland professional become intertwined. Youcan’tseparatethetwo,sothesecret is finding fulfilment in whatever

momentyou’rein.Idon’twakeupinthemorningandfeelguiltyifthefirstthoughtinmyheadisaboutwork,andthesamegoesifI’mdoingsomethingwithmyfamilyinsteadofworking.I’vebeenblessedwithalotofenergyandtheabilitytocompartmentalize.

What’s tops on your bucket list?LaunchingYouInc.wasonmybucketlist.Butreally,Idon’tfeellikethere’ssomethingouttherethatIneedtodobecauseIgetupeveryday,

Some of Arlene Dickinson’s accomplishments include:

lookingforwardtowhat’sinstore,nomatterwhatthatis.Continuingtoenjoylifeandbehealthyiswhat’smost important to me.

ANNETTE HUBICKEditor,

The Alberta [email protected]

ArleneDickinsonHonour

Roll

• Ad Rodeo’s Lifetime Achievement Award• Canada’s Most Powerful Women Top 100 Hall of Fame • Global Television Woman of Vision• Honorary Captain of the Royal Canadian Navy• McGill University’s Management Achievement Award • National spokesperson for Breakfast Clubs of Canada• Pinnacle Award for Entrepreneurial Excellence• PROFIT and Chatelaine Magazine’s TOP 100 Business Owners

• Recipient of honorary degrees from Mount Saint Vincent University, Saint Mary’s University and the Northern Alberta Institute of Technology• Recipient of the Queen Elizabeth II Diamond Jubilee Medal • Seat on the Leadership Council of the Perimeter Institute for Theoretical Physics • Venture has been recognized by the National Post as one of Canada’s 50 Best Managed Companies three times.


attheShawConferenceCentre.Thiseventalwaysseemstohaveahugecontingentofinsuranceindustrycompanies.AbigthankyoutoPeaceHillsandIntactInsuranceforbeingtwomajorsponsorsofthisevent.ThanksalsotoDougMorrow(ExcelInsurance)whoplaysamajorroleinensuring this event is a huge success.

Who? What ? Where ? When?

•AhugecongratulationsmustgotoDianeBrickneronbeingnamedthe Alberta VentureBusinessPersonoftheYear.Forthosewhodon’tknowDiane(whichwouldbeamazing,asIthinkDianeknowseveryone),sheiscurrentlythepresidentandCEOofPeaceHillsInsurance.Now,asI’msureyouarethinkingthatIamsuckinguptomybossinhopesof getting a big raise or promotion, IthinkeveryonewouldagreewithmethatDianeisoneofthemostinspirationalandwell-respectedpeople—notonlyintheinsuranceindustrybutintheprovince.MostofyouknowthestoryoflittlePeaceHillsInsurance—howitstartedbackin1982withnotonepolicyinhandandDianewasabletobuildthisAlberta-basedcompanyintoa$200millionorganizationthatemploys200 people. While her successes withPeaceHillsnumerous,youwouldneedtowriteabooktolisther generosities to various charities and

nonprofitorganizations.Sheservesasadirectoronseveralhigh-profileboards—NAITandtheEdmontonEskimostonamejusttwo.Ifyouhaveamoment,IhighlyrecommendreadingtheDecember1,2013,article at www.albertaventure.com.• PrattLambertsolditsofficeto Johnsons.• Everyone’sfavouriteMichaelJackson dancer,RogerMarcelloleft Economical Insurance and headed backtoRSA.• VeronicaHipkissleftBoulevard InsuranceandjoinedPeaceHillsInsuranceintheROCBranch.•AsikAlijoinedLundgren&Young in its Edmonton office.•ClarkeInsuranceopenedupofficesinSwanHills,EagleshamandManning. •MattBerginmovedfromthe Edmonton to the Whitehorse officeofHUBInternational.• CathyMundtleftRobertsMcClure Insurancetotryherhandatsomethingoutsidetheindustry.• AmandaPrattjoinedPeaceHillsInsuranceasacommercialunder- writer.• BillDoigleftEconomicalInsurance.• RyanFowlerjoinedAccessInsurance.

Retirement

Enjoyingthegoodlifeare:• RosalieCederstand,retiredfrom HUBInternational(Hinton).• LaureenBida,retiredfromHUB

HopefullyeveryonehashadsometimetoworkofftheChristmasturkeyandisstillontracktofulfillthoseNewYear’sresolutions.ItisprettyamazinghowtimefliesasmostpeoplearealreadystartingtolookaheadtotheIBAAconventionandtheplanningiswellunderway.Thisyear’seventhasArleneDickinsonasaguestspeaker,and from personal experience I can tellyouthatshetrulyisanamazingspeaker.PleasemakesuretoregisteryourselffortheconventionthatwillbeheldthisyearinJasper(May4–7).

What’s new?

TheBlueGoosecharitylunchwasheldonMonday,December9.Asalways,thiseventwasanotherselloutandahugesuccess.TheeventwasheldattheRoyalGlenora,andthepatronswereluckyenoughtobeserenadedbytheNikamosisakChoirfromPrinceCharlesSchool.ThecharityofchoicewastheE4CEdmontonschoollunchprogram.TheBlueGoosealsohosteditsannualpokertournamentonNovember6.Thirty-fourcompetitorsbattledtoseewhowasgoingtowinthebigbucksand be crowned the champion of the BlueGoose.CongratulationstoAndrew HapperofSintraEngineeringforwinningthisyear’spokertournament.TheannualFaceOffAgainstHungerluncheoninsupportoftheChristmasBureautookplaceonDecember13,

Who? What? Where? Chris Lewis

Northern


CHRIS LEWIS

Business Dev. Advisor,Peace Hills Insurance clewis@Phgic .com

International(DraytonValley).•BrendaLindsay,retiredfromAvivaCanada.

On a Sad Note

I’msadtoreportthepassingofRossStevenson.Rosswasaroundtheinsuranceindustryforalongtimeandcertainlylefthisstamp.WeextendcondolencestotheStevensonfamilyduring this difficult time.Inothersadnews,MonikaVogelofBrokerlinkalsopassedaway.WewishtheVogelfamilyallthebestduringthisverydifficulttime.


Understandingtoday’srisksandexposuresisgreat,butthebestwaystoinsurethemisnotalwaysclear.Inthisrespect,Ifoundtheconvention’stradeshowtobeparticularlyhelpful.Ihadatleastafewrisksinmindwhilevisit-ingthevariousspecialtyunderwriters

and even managed to place one or twoofthem.Someofthecontractorshadgood“hands-on”demonstrationsof their newest materials, tools and services, which gave me a better ideaof how consumers are being indemnifiedfollowingaloss.And,justtouchingbasewithafewregularmarketsandexchangingfeedbackisneverabadidea.

PYIB Perspective Scott Romans

Convention101

“I felt that the longevityof the event and the blend of activities were far more

effective in developingrapport among colleagues compared to a series of chance encounters at

different functionsthroughout the year.”

Afterabouttenyearsintheinsuranceindustry,IfinallyhadtheopportunitytoattendtheIBAAconventioninBanfflastyear.TheoccasioncamewithmynewpositionontheIBAAboardofdirectors(chairofthecentrallocalcouncil),andIhavetosaythatIdidn’tknowwhatIwasmissing. It was a fantastic experience with muchtobegainedinjustafewdays.WhereelsecanyouearnCEcredits,browseatradeshow,seecelebritykeynotespeakers,attendtheannualgeneralmeetingandnetworkwithother insurance professionals—all in onegathering?ThestringofvenuesforfutureconventionsinBanff,JasperandLakeLouisearequiteimpressiveas well. As far as the education sessions wereconcerned,Ilikedhowtheconvention program offered a series ofshortlecturestocoveravarietyof topics, instead of much longer versionsoflesssubjectsandfewerspeakers.Itkeptthingsinterestinganddynamic.Therewerenicebreaksinbetweensessionsandthespeakerswereabletogiveusthe“meatandpotatoes”ofcurrentandimpendingissueswithinourindustry.

IwaspleasantlysurprisedlastyearwhenIlearnedthatthekeynotespeakerwasMikeHolmesfromHolmes on Homes,andnowthisyearwehaveArleneDickinsonfromDragon’s Den! While I was aware that theconventionisafairlylargeeventwithinourindustry,Iwasnotexpecting internationalcelebritiestobemakingan appearance. With that appeal aside, Ithinkit’sinterestinghowthesespeakers,whoarethetopprofessionalsin their fields, might relate their knowledgeandexperiencetotheinsuranceindustry.Itgivesauniqueperspectivethatcanonlybegleanedatthe convention. Differentspeakersmayhavedif-ferent viewpoints and I can appreci-atethatkindofdiversityingivingus a broader view of the issues being discussed.MikeHolmes,forexample,gaveagreattalklastyearand,givenhisparticularskillset,opinedthatthesolutiontoourchallengesinpropertyinsuranceissimplytobuildbetterhomes. I remember leaving the room thinking,“He’sright,whydon’twejustbeef up our building codes to mitigate futurelosses?”However,JimRivait(fromtheCanadianHomeBuildersAssociation)soonfollowedwitha

presentation that raised some interesting counter-pointsonhowsuchmeasurescouldadverselyaffectconsumersandtheeconomy.Thesolutionisundoubtedly complexandprobablyliessomewherein the middle, but the additional perspectivemayhavesavedsomeofusfromwalkingawaywithanoverlysimplified view of the issue.We,asbrokers,eachhaveauniquebusiness aspect based on our experience, business models and ideals. I found the annual general meeting to be an effectiveforumformemberbrokers to voice their individual thoughts and opinionsontheissuesoftheday,whileotherscouldsimplyobserveandabsorb the various discussions. With lastyearbeingmyfirstAGMitwasinteresting to see how the meeting was formatted, meet some of the board members and learn how their initiatives are shaping certain elements of our business.And,ofcourse,weallenjoyedafairbitofnetworking.Theconventionoffered no shortage of social events for ustomakeconnections,“talkshop”andgettoknowoneanother.Ifeltthatthelongevityoftheeventandthe blend of activities were far more effective in developing rapport among colleagues compared to a series of chance encounters at different functions throughouttheyear.Ibelieveyoucanonlygetfromtheeventwhatyouputintoit—bytheend, I was somewhat exhausted. After all,threedaysofnetworkingwithotherinsuranceprofessionalsandindustry

partners,jam-packedwitheducationsessions,tradebooths,guestspeakers,meetings, dinners and socials—all with our business of insurance at the fore-front—theIBAAconventionprovedtobeatrulyimmersiveandproductiveexperience.Ifyou’renotabletocatchthisyear’sconvention,oryouwanttore-immerseyourselfinanewline-upofeducationsessions,speakersandsocials,don’t

hesitatetocheckouttheIBAA Fall Conference—hostedbyPYIB,whichwelcomesbrokersandindustrypartnersofallages!

SCOTT ROMANSPYIB Director

[email protected]



WiththeNewYearunderway,manyofyouwillbelookingatgrowingyourbookof

business.Tohelpyoursalespeoplegettheclientsyouwant,considerspendinga little time with them to ensure the right names are on their target list.

CONSTRUCTION CLIENTS ARE SOME OFMY FAVOURITES.Ifyoupickcarefully,youcangetclients thatwillgrowwithyouandhaveabroad spectrum of needs. A client that needsallthebasics,aswellaswrap-upliability,courseofconstructioncoverage, bonding and/or default insurance will beaclientthatprovidesyoursales-people with a great commission plus be aninterestingclienttoworkwithwhowillconnectyouintotheconstructionindustryinameaningfulway.Let’sconsiderthebestwaytofindtheconstructionclientsinyourcommunity.JOINthelocalconstructionassociation! Once there, volunteer to be on acommittee.Helpthemwiththeirissues;theyarealwayslookingforhelpwithawidevarietyoftopics.Ifyouhavealreadybeenamemberforawhile,thentrytobecomeamemberoftheboardofdirectors.Brokerswhoareknowninconstructionassociations

have a certain amount of instantcredibilitythatbrokersontheoutsidejustdonothave.Forthepriceofanassociate membership, in a short period oftimeyoucanreallyhelpyoursales-peoplebecomerecognized—sosignup!Ifyoudonothavealocalconstructionassociation,thencreatealistofallyourclientsthatarealreadyintheconstruction business and use them to help establishyourcredibilitywithotherclients.Forexample,approachyourconcretecontractor to find out the names of the othercontractorshenormallyworkswith and for, pair that with a testimonial fromyourexistingclientandnowyourstaff have a warm door opener.Beforeyousendyoursalesforcetoapproachnewclients,makesuretheyhaveanunderstandingoftheclient’sbusiness.IworkwithcontractorsonaregularbasisandIcansaywithafairdegreeofcertainty,thatacoldcallonaclientwhereyoudonotunderstandhisbusiness is an absolute waste of time— bothyoursandtheirs.Whattypesofthingsdoyouneedtoknow?Startwiththebasicsoftheindustryyouareapproaching.Ifyouare going after a mechanical contractor, thenyouneedtounderstandtheprosandconsofaclientwhoworksinnewconstructionversesaclientwhoworks

BUILDING BUSINESSin maintenance and repair. Your sales-peopleshouldknowthebusinessdownsideofacontractorwhoworksinnewconstruction. Forthosecontractors,theymaystrugglewithaccountsreceivableissuesastheycaneasilybehelduponajobsitebyothercontractorswhoneedto come before and after them, which canseriouslyimpactprogresspayments.Aknowledgeablesalespersonwillunderstand that and be in a position to offer support to the contractor. Offeringcreditinsuranceshowsthatyouarewellinformedoftheclient’srisks.Akeybenefitofcreditinsuranceisthatitallowsyourconstructionclienttoleverage accountsreceivablewithhisbankertokeephislineofcreditavailablewhenheneedsitmost.Irecentlyspentsometime with a contractor who did not have credit insurance, had extended credittoaclientbydoing$500,000dollars’worthofwork,washavingserious trouble collecting and was into 180daysofextendedcredit.Thiswasimpacting his line of credit and hisannual bonding review was coming up. YouandIknowthataccountsreceivablesdatedover30daysaregoingtoaffecthisbondingcapacity.Thelastissue that the credit crunch will impact isthecontractor’sbottomlineandthe$500,000outstandingwillinfluencethecontractor’sabilitytotakesomeprofitoutofhisbusinessthisyear.All of these could have been avoided either theproperriskmanagement or an actualcreditinsurancepolicy.Abrokertalkingtoacontractorthatunderstandstheflowofbusiness,offering a solution to a real pain point has a much better chance of getting a newclientthanasalesguythatoffersthe same old insurance program at a better price.Howcanyoursalesforcegetabetterunderstandingofthedifferenttypesofconstructionbusinesses?Spendingtime

continued on page 16

Attracting and Servicing Construction Clients

ByKarenRutherford


withexistingclientsisoneway.Ifyoucanspendafewhourstalkingabouttheirbusiness,andnotuseanyofthattimetotalkaboutinsurance,youcanlearnalotthatyoucanusewithotherprospects.Whattopicswouldyouwanttocover?HereareafewthatIwouldfindhelpful:•Whataretheprosandconsoffocusing on new construction?•Whoarekeycompetitorsandwheredotheycomefrom?•Aretheworkersskilledorunskilled and what is the turnover?•Doestheworkforcestabilityorlackofstabilityimpactthebusiness?•Wheredoestheclient’sequipment come from?•Aretherelotsofalternatesourcesof suppliers?•Doestheclienthaveequipmentthat must be custom built?•Wheredoesyourclient’sclientgetfundingforthework?•Howdoesthebankingcommunityviewtheindustry?•Whatistheclient’spointofviewonoccupationalhealthandsafetyissues?IfIwereaworkingbrokertoday,Iwouldtrytohavethistypeofconversa-tionwhiledrivingmyclienttoajobsite or a meeting and not while he was busyathisoffice.Withthosepointsexplored, I would be in a position to have a good conversation with other contractors in the same or similar sectors.Thereare12,000associationsinCanada.Virtuallyeverysectoroftheconstructionindustryhasanassociationto represent its interests. Your salespeople canlearnalotbyreviewingthoseweb-sites, reading newsletters and following links.Areconstructionclientsloyaltotheirexistingbrokers?Sortofbutnotreally.Inmydiscussionswithcontractors,theyallsaysimilarthingsaboutchangingbrokers.Ifanewbrokeroffersabetterprice,thatisnotveryinterestingtomostsuccessfulcontractors.Theyalldespisethetimeittakestomakeachange,andknowthattheirstaffwill

have to spend hours getting theinformationuptodate,checkingvalues,details of coverage, etc. A savings inpremiumsisoftennotenoughtopayfortheclient’stimetomakethechange.Brokershavetooffersomethingthatwilltakecareofapainproblemtheclientishavingandfindawaytomakethe change using the minimum amount ofyourclient’sstafftime.Now,sometimesyoujustgetluckyandfindaclientwhohasrecentlyhadabadclaimsexperienceorbadbrokerexperienceandisreadytomakeachange. Unfortunately,thatistheslowestwaytogrowyourbookofbusiness.Therefore,tocapturetheprospect’sattention,youneedtofindhelpfulvalueaddedservices,riskmanagementandcoveragestrategies.Riskmanagementstrategiescancomeinmanyforms,butIencouragebrokerstousewhathasbeendesignedbyyourinsurancecompanies.Theseaddressrealissuesandyourclientswill

continued from page 14 recognizethetruthinyouroffer.Mostoftheprogramscanbebrandedtoyourbrokerageandmakeyoulooksmartinyourprospect’seyes.Theprogramscover a broad spectrum of businesses andIrecommendyoupickonlyoneortwothatspeakdirectlytoyourprospect’sissuesandnotoverwhelmthemwitheverythingthatisavailable.Forcontractors,Iparticularlylikethecreditriskmanagementstrategy.Everycontractor has been stung at one time and,asaresult,willlistentoyouroffer.Ialsolikethefleetmanagementpro-grams.EverysinglebusinessownerIhave ever interviewed admits toworryingaboutemployeeswhoareinthecompany’svehicles.Havingaprogramthatreinforcesgoodriskmanagement for drivers is welcomed. Thereareotherriskmanagementprogramsandyoushouldevaluatethemforeachsectortoseewhatyouwouldliketooffer.


A value added service that resonateswith contractors is supporting them with all of the various onlinepre-qualificationservicessuchasISNetworldorPICS,orPre-Qual.Contractorshavetomeetawidevarietyoftheirclients’requirementsandagoodbrokercanmakeafewoftheseproblemsgoaway.Anothervalueaddedserviceyoucanprovideissupportfortheirmandatorysafetyprograms.Contractorsareobligatedtoholdregulartailgatesafetymeetings.Agoodbrokercanleadanumberofthesesafetymeetings,usingtheinformationfromtheriskmanage-menttoolsprovidedbyinsurancecompanies.Thistakesalittlepressureoffthecontractorandmakesyouanasset.Sowillcontractorsbeloyaltotheirexistingbroker?Notifyousounddifferent, solve problems and maintain acompetitiveprice.Ifyouonlyofferabetterprice,thenIamsuretheywillkeeptheirloyaltywiththeincumbent!

KAREN RUTHERFORDInternational Accelerated

[email protected]

Contractorsareagreatclassofbusiness. With a little preparation, yourbrokeragecangrowitsbusinessinthissector.Goodluck!


Legal-Ease Shelley L. Miller and Terry J. Williams

In an article published in the August 2012 issue of The Alberta Broker, we wrote about a case in which the trial judgehadtoconsiderwhetheradwelling was“vacant”whentheinsuredshadkeptasupplyofbeerintherefrigeratorbuthadnothunganypicturesonthewalls.TheBritishColumbiaCourtofAppealrecentlyheardtheappealbythetwoyoungmenwhoweretheinsuredsinthatcase.Thisisthelatestchapter. ThebasicfactswerethatTorQuinn(“Quinn”)wasayoungmanlivinginEdmonton when his mother, living on VancouverIsland,wasdiagnosedwithcancer.QuinndecidedtobuyahouseinVancouvertobeclosertoher.Hisfriend, Peebles, agreed to invest in the propertywithhim.QuinnandPeeblespurchasedahouseinSurreyandobtainedahomeowner’spolicyfrom WawanesaMutualInsuranceCompany(“Wawanesa”).TheWawanesapolicywaseffectiveasofJune29,2006,andwas renewed for a second term from June29,2007,toJune29,2008.OnApril26,2008,thehouseinSurreywascompletelydestroyedbyanexplosionand fire. TheWawanesapolicywaswrittenona“Homeowner’sSpecialForm”that

guaranteed replacement cost coverage forthehouseandpersonalpropertytherein.TheSection1Conditionsexcludedvariouslosses,including:

(2) Loss or damage occurring after your dwelling has, to your knowledge been vacant for more than 30 consecutive days;

Theterm“Vacant”wasdefinedinthePolicyasfollows:

“Vacant” refers to the circumstance where, regardless of the presence of furnishings:all occupants have moved out with nointention of returning and no newoccupant has taken up residence …

Inaddition,StatutoryCondition4,prescribedbytheInsuranceAct,R.S.B.C.1996,c.226,provided:

Material change Any change material to the risk and within the control and knowledge of the insured avoids the contract as to the part affected by the change, unless the change is promptly notified in writing to the insurer or its local agent …

Following the explosion, Wawanesa denied coverage on the twin bases that

thepropertyhadbeen“vacant”andthatPeeblesandQuinnhadfailedtoadviseitofachangeinthedwelling’soccupation and use, which was material totheriskinsured.QuinnandPeebleswerebusyyoungmenwithvariousvocationaland personal pressures. Peebles lived elsewhere,butcamebytocheckthehouseoften.Quinnhadmovedintothe house with his possessions in order to be closer to his ailing mother.However,Quinnhadagirlfriend,Ms.Barlas, who had her own residence in thearea.SincesheresentedPeeblesdroppingbytheSurreyhouseunexpectedly, she and Quinntendedtospendtheirleisuretimeatherplace.Sometimelatein2007,QuinnandPeeblesdecidedtoselltheproperty,althoughtheywereinnorushtodoso.Bythespringof2008,QuinnhadtakenajobintheNorthwestTerritories,workingthreeweeksoutofeveryfour,andwasmaintainingan“on-and-off”relationshipwithMs.Barlas.Whenthetwoof them argued—which happened frequently—hereturnedtotheSurreyhouse, where there were some minimal furnishings and what he referred to as “survivalfood,”beingMr.Noodleandbeer.Infact,duringthe30daysbefore

Absentee Homeownervs. Wawanesa: Round Two


[email protected]

SHELLEY L. MILLER, Q.C. and TERRY J. WILLIAMSare lawyers with

Dentons Canada LLP and practice in theprofessional liability insurance area.

[email protected]

theexplosion,QuinnhadsleptonenightattheSurreyhouseinhissleeping bagfollowinganargumentwithMs.Barlas. When the case came to trial, the judgeobservedthatQuinnhadleftsome possessions and some furnishingsin the house; the house had been maintained and not left to deteriorate; theutilitieswerehookedup;andtherewas some food in the house, including beerinthefridge.Quinnhadnootherhome, he owned no furnishings at his girlfriend’shouse,andhispersonalpossessionswereinahockeybag.QuinnintendedtoreturntotheSurreyhousetosleepoccasionallyifandwhenhe fought with his girlfriend, and toreside there if the house did not sell. ThetrialjudgefoundthatQuinnhadnotpermanentlyremovedhimselffromandabandonedtheSurreyhouseasaplaceofresidencemorethan30daysbeforetheloss.Therefore,Wawanesacouldnotrelyonthevacancyexclusion.However,thetrialjudgereachedadifferentandadmittedlyharshresultwith respect to the issue of a material changetotherisk.Withrespecttothisissue,RickyGrass,oneofWawanesa’sunderwriting managers, testified that if Wawanesa had been advised of the stateofaffairsexistinginearlyFebruary2008,itwouldhavecontinuedthepolicyonlytothenextrenewaldatewith changes to coverage, additional exclusionsandahigherpremium.ThetrialjudgeobservedthatthehouseinSurreyhadbeeninsuredasaprincipalresidence.Whenthepolicywasfirstobtained, and again at the time of renewal,Quinnwaslivinginthehouseand slept there most of the time.However,bythetimeoftheexplosionthenatureofhisoccupancyhadchangeddramatically.Thefactthathewasabsent for long periods gave rise to riskswhichwerereasonablyregardedbyWawanesaasmaterial.Thetrialjudgeheldthatthepolicywasthereforevoid with respect to the coverage at issue.

PeeblesandQuinnarguedontheirappealtotheBritishColumbiaCourtofAppealthatthetrialjudgehaderredinfailingtoapplythe1931decisionoftheSupremeCourtofCanadainthecase of Laurentian Insurance Co. v.Davidson (“Laurentian”). In Laurentian, afarmhousewasdestroyedbyfirethenightofMarch20–21,1930.Theowner had moved most of his furniture outofthehouseonFebruary20andthereafter tried to rent or sell the farm, butwithoutsuccess.Theinsurertookthepositionthatthepolicybecamevoid once the premises were vacant becausethevacancywasmaterialtotherisk.However,theSupremeCourtofCanadaruledthataconditionofinsurance protecting an insurer from liabilitywhenabuildingwasvacantorunoccupiedformorethan30consecutivedaysmeantthatvacancy

foraperiodof30daysorlesswasariskcontemplatedbythepolicy.Therefore,a second condition that required the insuredtogivenoticeofanychangematerialtotheinsurer’sriskdidnotapplyinrespectofavacancyduringthe30-dayperiod.TheBritishColumbiaCourtofAppealagreedwithPeeblesandQuinnthatthereasoningoftheSupremeCourtofCanadainLaurentian applied totheircase.Wawanesahadimpliedlyacceptedtheriskofvacancyornon-occupancyforupto30days.Therefore,thefailuretonotifyWawanesaofthereducedoccupancywasnotfataltotheir claim since the explosion occurred withinthe30-dayperiod.Intheresult,theBritishColumbiaCourtofAppealallowedtheappealandgrantedPeeblesandQuinnjudgmentagainstWawanesa.


BackintheoldendayswhenIwasanunderwriter, we provided coverage for “boilersandmachinery.”Becausetheworld has become more sophisticated andwerelyupontechnologytocontrolmostindustrialmachinery,theinsur-anceindustrynowrefersto“equipmentbreakdown”coverage. I still recall, with a combination of amusementandterror,thethickGlaswegian brogues of underwritersand steam engineers who became highlyenervatedaboutpressurevessels,accidentsandobjects.Theyknewtheirstuff.Someofyoumaywanttoignorethistopicentirely,thinkingthatyoumainlysell personal lines and small commercial coverage,sowhytheheckwouldthisberelevant? Becauseit’simportant.Becausemanybrokersdon’tsellitandsuffererrorsandomissionslossesaftertheirclients’claims.Becauseequipmentbreakdowncoverageisunderutilized,andit’spartof a sound insurance program.Afewyearsago,Ipersonallycametothe rescue of some brand new cheese

Coverageistriggeredbyan“accident,” whichmeans the sudden andaccidentalbreakdownofanobjectorpartthereof,while in use or connectedandreadyforuse.

Helpful Hintsand Suggestions

1Anythingbiggerthanadomestichotwatertankmayrequirecoverage.Haveyourclients

describe,orbetteryet,SHOWYOU,theirHVACsystem(that’sheating,ventilation and air conditioning for thoseofyounotuponyouracronyms).I found it helpful to have an engineer from an insurer show me examples of eachofthetypesofobjectsthataretypicallycovered,soIhadavisualconceptofwhatweweretalkingabout.

2Mostpolicyformshavethreesections:directdamage,conse-quential damage and business

interruption.Consequentialdamageis the commercial equivalent of food freezercoveragefoundonhomeowner’sforms.Directdamageandbusinessinterruptionoperateexactlythesameas propertyforms;theyjustinsuredifferenttypesofpropertyandtriggeringevents.

3Smallstoresoftenneedthecoverage for refrigeration units onthepremises.Anybusiness

thatsellssoftdrinkshasacoolerwithacompressorthatcanaccidentallyfail.Farmsmayneedthecoverageforconveyorsystems,processcontrolequipment, or heating/coolingequipment in barns.

merchants,whosecoolingunitsconkedoutduringtheirfirstweekinbusiness.Theirbrokerhadsoldthempropertyinsurance,thinkingaboutfiresandthefts,butdidn’teventhinkaboutacatastrophiccoolerfailuredestroyingtheirpreciousinventory.

SomeVERYlargewheelsofcheesewereinmyfridgefortheweekend.Ihadtoexplaintomypartner,acheeseneophyte,thatbluemoldoncheeseisagoodsign,notanindicationthatit’sgone bad.Theequipmentbreakdownpolicycovers“objects,”whichbroadlyincludesboilers and pressure vessels, refrigerating or cooling equipment, and mechanicalor electrical machines or apparatus generating, transmitting or utilizing mechanical or electrical power.

“Anything bigger than a domestic hot water

tank may requirecoverage.”

Commercial Break Karen MacWilliam

Having a BREAKDMore Clients Need Boiler & Machinery Coverage Than You Think 0

WN

[email protected]

KAREN MacWILLIAMis an insurance and risk management consultant


4 Likepropertyforms,businessinterruption coverage is available on a gross earnings or profits

basis, with options for extra expense and expediting expense.

5Thestandardindemnityperiodis12months.Thebiggertheobject,thelongeritmaytaketoreplace.

Duringmystintintheforestproductsindustry,someofourobjectswere10stories high, with replacement times of 18months.Discussreplacementtimeswith clients.

6Heatingsystemsareevolving.Discussgreenalternativeslikewind power, geothermal heat and

borrowed steam with the underwriter to understand how the coverage applies. Bladesshearingofffromawaywardnew-agewindmillwon’tbecoveredbyacommercialpropertypolicy.

7Theequipmentbreakdownpolicyexcludesfire,smokeandcombus-tion explosions external to the

object,sincethesearepropertyperils.In fact, all of the named perils found inacommercialpropertypolicyareexcludedtominimizethelikelihoodofcoverage duplications. Propertyandequipmentbreakdowncoveragesmaybebestplacedwiththesameinsurerhowever,ifthey’renot,theinsuranceindustryhasa“JointLossAgreement,”specifyingtherulesofthegame for losses covered under both propertyandequipmentbreakdownpolicies.BeawarethattherulesapplytocoverageANDdeductibles,soitmaynot be the lowest deductible thatapplies after a loss.

8Mostwordingsgiveinsurerstheright to suspend or cancel cover-ageoncertainobjectsifadanger-

ousconditionexists.Accordingly,manyinsurers insist on annual inspections, meaning preventative maintenance and riskcontrolprogramsareessentialforclients.

9Thepremiumsformostrisksarequite affordable and significant capacityisavailableinCanada.

Thispolicyisnotgenerallyabudgetbuster.

10 Ifyouhaven’tinteractedwithanequipmentbreak-down insurance underwriter

before,don’tbefrightened.Mostfolkswhospecializearehighlyknowledgeableandcanansweranyquestionsthatyou

oryourclientmayhave.Mostpropertyunderwriters can provide a quote themselvesorcanreferyouquicklytosomeone who can.Feelfreetohaveabreakdownnow.


WICC Update Amy Foggin

AMY FOGGIN, B.F.A., B.Ed.Quality Initiative Program

Manager, CKR Global

[email protected]

Ithasbeenatoughyearforfund-raisersinAlberta.Thefloodsthathit our southern Alberta communitieswereunprecedented.Thesheerimmediate need drew a great deal of theavailablefundraisingdollarsawayfromgroupslikeWICCaseveryonepitchedintohelpAlbertarecover.Theinsurancecommunitywasimpactedinwaysthatwereunimaginableasitfaced the overwhelming onslaught ofpropertyinsuranceclaims.Wearepleasedtosaythat,despitetheodds,we were still able to uphold our com-mitmenttoprovideanother$100,000insupporttotheCanadianCancerSocietyin2013.Thankstoyou,oursupporters,wecontinuetofightcancerbyfundingselectAlbertaresearchprojects.Aswedoeveryyear,wecametogetheronJanuary23,2014,tocelebratesomeofthe groups who have chosen to send theirfundraisingdollarstoWICC.Atyetanotherelegantandengagingluncheon,theWICCAlbertaexecutivewaspleasedtocelebratethisyear’sGold Flame Award Winners: IntactEdmonton,IntactCalgary,TheSinclairGolfTournamentCommittee,theInsuranceBrokersAssociationof

Alberta,JohnsonInsuranceandMarshCanada.TheDavidC.SmithVolunteeroftheYearAwardwas awarded to FranSchmuckofFKSAdjustersfor2013.Asaformerboardmember, Fran comes out toallkindsofeventstoofferher time and effort—sellingraffletickets,greetingsupporters at the door andjustaboutanythingyouaskher to do. Without our volunteers, WICCAlbertasimplywouldn’texist,soweliketoshowourgratitude.

Wecan’trecognizeeveryoneeveryyearandwesureappreciatethesupport of other organizations such as

Silvercrestthatcontinuesto dedicate the funds from its annual golf tournament yearafteryear.Pictured aboveareDianeJones,VPmarketingandsales,andAnnaVailancourt,presidentofSilvercrest.

Tough Yearfor Fundraisers

WhetheritisadressdowndayliketheydoatCJCampbell,oraraffleintheoffice,everylittlebitcounts.ThingsaregettingoffthegroundforWICCtoformalizeapresenceinNorthernAlbertawithRogerLestusofCrystalGlassCanadaandJulieLewisofIntact.Ifyouwouldliketovolunteer,pleasecontactSusie.nagy@rsagroup.caandshewillputyouintouchwithaWICCrepresentativeinyourregion.Inothernews,SherreNewellofAvivaisanewWICCboardmemberand, along with her boundless enthusiasm, she has brought with her Agents of Change,anorganizationthatusesrealestate referral fees to generate charitablemonies. Watch for more information onthisexcitingnewwaytodirectyoursupporttoWICCinAlberta!

All Industry Stampede Party

CJ Campbell Dressdown Day


Rakeinuptoeightcontinuingeducationcredits—that’sonlytwoshortforwhatyouneedfor theshortened2014year!OnTuesday, May6,therearemorningseminarscoveringmanyhottopics.

Networkwithfellowbrokers. Great ideas and loads of funcomefromyourpeers!

Networkwithinsurancecompanyprofessionalsandindustryvendors.Visitwiththepeopleyoudealwithonaregularbasis!Thisisyourbestopportunitytoseeindustryleadersupcloseandpersonal.

Golf.OnMay4,ifthereisno blizzard, we are hosting theassociation’spremiergolftournament with some of the best golfers.OK,maybethat’sstretchingitalittle,butyourresidentnon-golferwillbeonagolfholeagaintryingtounderstand how people can find this sportinteresting!

EnjoybreathtakingJasper!Jasperhaseverything—golfing,hiking,trailriding,whitewaterrafting,enjoyingthefacilitiesoftheJasperParkLodgeandsimplysomeofthemostgorgeousmountainsceneryintheworld.

NeedIsaymore?

MeettheIBAAstaff.IBAAhas new faces, old faces(wellOK—onlytheCEO,yourstruly,fitsthiscategory!)andfamiliarfaces.Thisisyouropportunitytomatch a face to the voice and thename.WanttotalkaboutE&O,PD,memberbenefits,government relations, or simplyshareajoke?Wecan’twait!

ThePresident’sGala.It’s“Welcome”toGordand“ThankYou”toGord!Confusingenoughforyou?OK,letmeexplain. Welcome our new president, GordCowan,andabigthankyoutoour past president, Gord Enders. Gord Enders’yearaspresidenthasbeenoneofthemostevent-filledyearsinrecenttimeandhisstrongleadershipnotonlygotusthroughitbutalsosawustakeonanumberofnewinitiatives.Thepresident’sgalafeaturesafinediningexperienceinFairmontstylealongwithsomeexcitingentertainment.Thisistheinsurancebrokersocialeventoftheyear—don’tmissit!

TOP 10reasons toATTENDIBAA Convention

As you read this column, the Christmas tree has long been put away or thrown out, the house returned to normal, children back to school and the stores all decorated for Valentine’s Day. Below is this year’s entry for my top tenreasons why the IBAA convention is a “can’t miss” event (May 4–7, 2014 in Jasper). Once again, I have to give credit to David Letterman for the concept. In any case, here goes:

The Advocate George Hodgson

10

9

8

7

6

5

4


Thetitlealone,“PrairiePower:BlazingNewTrails,”shouldbeenoughtoexciteanyone.Hint:Thetitleandthethemeofournewpresidentmayrequireyoutodustoffyourcowboyhat!

Elect, meet, greet and get toknowandelectyournewexecutive.Whethertheyarefreshfacesorreturningfolks,theAGMisthebestopportunitytomeettheseindustryleaders.

(cue drum roll and loud music):ArleneDickinson.TheIBAAconventionalwaysfeaturesadynamicandtopicalkeynotespeaker.Onemightthinklastconvention’skeynotespeakerwouldbehardtomatch;butitlookslikewehavejustfoundone.ArleneDickinson,entrepreneurandDragon’s Denco-star,istherecipientofmanyprestigiousawardsincludingCalgaryBusinessOwneroftheYearandCanada’sMostPowerfulWomenTop100.ThistrulyisaMUSTSEEevent.

Thesearemytoptenreasons;yoursmaybedifferent.ButIcanguaranteethatitwillbeabusyandfun-filledfew

days.Intheend,youwillbringalotofknowledgebacktoyourbusinessandyouwilllearnmoreaboutwhatIBAAdoesforyouandfortheinsuranceconsumer in Alberta. See you in Jasper in May!

GEORGE HODGSONCEO, IBAA

[email protected]

3

2

1


Who? What? Where? Darrell Verbonac

BROKER NEWSNewtotheCalgarybrokersceneisGougeonInsuranceBrokersWestLtd.,openedbyalongtimeSudbury,Ontariobasedbroker.HeadinguptheoperationhereisAngelaDunlopMcKenzie,workingoutofherofficeinthenorthwestpartofCalgary. Palliser Insurance moved to new premisesjustsouthofitsexistingoffice.ThenewdigsareintheDeerfootMeadowsareaat792911StreetSE.RossBucsiswasappointedastheAlbertamanagerbyPalliser’sparentcompany,WestlandInsurance,whichisbasedoutofBC.DwayneBellm,whowaslookingafterPalliser’spersonal lines in Alberta, returned to CranbrookfulltimeandisoverseeingWestland’soperationsinsoutheasternB.C.AtWestland’sSunValleyMcKenzieInsuranceoffice,HeidiAlbertojoinedthestaff,comingoverfromVanHeldenAgencies.SharpInsurancealsomovedlocations, leaving its highrise office building space near the airport for oneonthemainfloorat10th Avenue andCentreStreetNorthinthesamebuildingasRogersInsurance,whichhasanownershipstakeinSharp.NewstaffmembersatSharpareNicholasWong,whowaswithTDInsurance,SamEbrahimandMichaelMcLamon.Rogerswasbusyontheacquisitionfront,purchasingCalgaryWestInsurancefromRichardBussewhoisretiring.Richard’stwodaughters,MarlaBondyandDanielleDrescherwillbejoiningRogers’staffaspartofthedeal.NewtothestaffatRogersisTracyStewart,whowaspreviouslywithTheInsurancePlace.

HUBInternationalhasanewCalgarybranchmanagerasCarlaSpaethhastakenoverinthatrole.Carlawasthebranch manager for Western FinancialGroupoutinVulcanforthepastseveralyears.AlsoleavingWesternFinancialGroupwasBruceBarton,whoisnowwithMHKInsurance.ThecombinedoperationofHEHuntandBKIRiskManagementhasaddedtoitsstaffwithTammyLesnakandAmandaPatzerjoiningfromToolePeet,alongwithJessicaFreake,whowasatCollisInsurance,andTammyVanDyk,whohasmovedto AlbertafromOntario.MoRademacherleftBKIandstartedwithLloydSaddandSuePlandenalsoleftBKItojoinVanHeldenAgencies.RenfrewInsurancehashadnewstaffcomeonboard:ShellyBaran,previouslywithRogersInsurance,andChrisSharpisreturningafterbeingwith Zurich Insurance.

A couple of people have moved fromthecompanytothebrokerranks.CraigSipila,whowaswithDominionofCanada,joinedToolePeetasacommercialmarketer.LauraBesenyileft Northbridge Insurance to become thenewmanagingdirectoratThistleUnderwritingServices,anMGAforJardineLloydThompson.AtJardineLloydThompson,BryanPitchkojoineditsranks,havingmovedbacktoCalgaryfromEdmontonwherehehadbeenwithRenfrewInsurance.NewstaffatAonareShawna-SeahMcDonald,whowaswithLloydSaddandSylviaHeiduk.Acoupleofotherstaff additions around town include CarolRinneardatLanesInsuranceandLesleyDonaldson,whowaswithManitobaPublicInsuranceinWinnipeg,atCRS/MerrillInsurance.DowninMedicineHat,JeremyRattaileftWesternFinancialGroup’s(WFG)southofficeandtookoveras

[email protected]

DARRELL VERBONAC,FCIP, CRM

Regional BusinessDevelopment Manager

Intact Insurance Company

presidentofCypressInsurance,whileinRedDeer,BryceBownessjoinedAllServiceInsurance,comingoverfromClarkeInsurance.BradenBosch,whowasWFG’smanagerinbothDrumhellerandHanna,isthenewAlbertageneralmanagerofBC-basedSussexinsurance,whichislookingtoputbrokeragesintoWal-Martstores.

COMPANY NEWSInnewsonthecompanyside,IntactInsurancesuretyunderwriterJenniferLovetransferredhometoHalifax,NovaScotia,MelanieHansonmovedfromTravellerstoLibertyInternationalandJanetKenneymovedfromRSAtoSovereignGeneral.Congratulationstotwo Intact underwriters on newadditionstotheirfamilies:ReginaLeutywelcomeddaughterPeytonandKarenSellarwelcomedsonJacob.

RETIREMENTSCongratulationsandbestwishesalsogotoIntact’sLynneFawcett,whoretired after a long career as a commercialunderwriter.Lynneiswellknownintheindustryandwasatirelessvolunteermemberofseveralindustryorganizations.I had the pleasure of her friendship and workingwithherforalmost15years.Iwillmissheraroundtheoffice.IknowthatLynnewillbemissedbymanythroughouttheindustryastherewerefew,ifany,whodidn’tenjoybeingaround her. Another retirement is that of longtimeadjusterHarryAssen,whoownedHBAAdjustersLtd.CongratsandbestwishesgotoHarryaswell.

KUDOSTheInsuranceInstituteofSouthernAlberta(IISA)heldits36thannualconvocationandawardsceremonyattheBMOcentreonNovember20.IISA’sgeneralmanager,CarolineLogan, and her staff put on another great event.Therewereatotalof73charteredinsurance professional and 14 fellowchartered insurance professionalgraduates receiving their diplomas.

Thereweretwonationalawardwinners:EchoYanoftheCo-Operatorswasthe topFCIPgraduateinthemanagementmajorandQuincyNgofIntactInsurancereceived the award for being the first runnerupforthemostdeservingCIPgraduate.BothEchoandQuincyalsoreceived two local awards. A special highlightwasIntact’sGinnyBannermanreceivingaCanada-widerecognitionfor her dedication and service to the


industrywhenshewaspresentedwithaCIPSocietynationalleadershipawardintheestablishedleadercategory.


Professional Development Diana Dai

As a huge fan of CBC TV’s Dragon’s Den,IamlookingforwardtomeetingArleneDickinson,oneofthe dragons, at our spring convention. HaveyouwatchedDragon’s Den? It has made aspiring entrepreneurs pitchingtheir business ideas to a panel of venturecapitalists(dragons)funandentertaining.With more than a million viewerseveryweek,theshowhasstruckachord withCanadians,inspiteofKevinO’Leary’ssometimessnippyandoffensivecomments.Ihavewatchedeverysingleepisodeinall eight seasons. Iwillneverforgettheblow-upoftheJobLoftdeal.JobLoft,aToronto-basedjob-sitecompanyfoundedbyfourfriendsfromRyersonUniversity,got all five dragons on board to invest $40,000eachfor50%ofthecompany.Whenthedealwasjustbeingsigned,thestudents’mentortookissuewiththedragons’plantomarketandstartedtobelittle the price the dragons werepaying.Ashewastalking,thenormallycheerfuldragonRobertHerjavecreachedoutandrippedupthe$200,000cheque.Thecamerazoomedinontheshockedlooksofthestudents:Whatjusthappened? I love the drama—the personalities,thetriumph,theheartbreak,thepassion,thesweat,theshockandthefun!Moreimportantly,Ilovelearningthrough

entertainment.Ioncecaughtmyselfusing the same line of questioning as thedragonswhenworkingonabusinessproposalforaclientseekinginvestors.Thatisthe power ofedutainment! Learning is fun when it is entertaining, even learning about insurance and manage-ment.Don’ttakemywordsforit.Takealookat the picture here.Thisisn’ta screen shot fromBacktothe Future; it is fromtheBulletProofManagerclass held at the IBAALearningCentreonNovember13–14.Areyoureadyforsomeedutainment? Wanttoimproveyourbrokerage’stoplineandbottomline,expandingyourmarketandimprovingefficiency?LetGlennWhitetakeyouonthedynamiclearningjourneyoftheIBAC’sBestPracticesprogram.Hispaststudentsraveabouthisteachingstyle:

“Glenn White is a dynamic speaker who makes the course a lot of fun yet informa-tive at the same time!”—TaraBuchanan

“Glenn’s easy-going nature and way of keeping his students’ interest makes this course not only interesting and practical but fun as well!”—DonnaPayne

“You … did an excellent job conveying the material, offering insight, and making the subject material fun.”—MatthewCalvin

HaveyouthoughtabouttakingtheCanadianAccreditedInsuranceBroker(CAIB)program?AlongwiththeprestigiousindustrydesignationandgazillionCEcredits,CAIBoffersdiversemethodsofinstruction.DawnMickle(RogersInsurance)triedmostofthemandfoundthemextremelybeneficial.Shetookthecoursesthroughdiscussion group, immersion, and fast trackandwasabletopasseachCAIBlevelthefirsttime.Still,somelikeonemethod more than others. Lareese Graf (ExcelInsuranceGroup)is“ahugefanoftheCAIBimmersionprogram”whileTysonKlassen(FosterParkBasketInsurance)tookallofhisCAIBexamsthroughtheself-studyprocess.

The Keys to OurCAIB Class Success: The incredible cast: the wonderful andknowledgeableinstructors,whoseexampleswereveryhelpfulandwhomade learning insurance interesting (DawnMickle)andtheclassmateswhoenableddiscussion(CalebMaksymchuk, RavenhillAgencies). The drama: the debates andconversation with other insuranceprofessionals(LareeseGraf ). The story:TysonKlassen,whohasbeenintheinsuranceindustryforlessthanayear,said,“IfeelthatCAIBhashelpedmycareerbyfocusingonconceptsthatIwasfamiliarwithyetwould feel uncomfortable having to explain to a client, and after each exam I felt much more confident with the material.”

continued on page 30


DIANA DAIDirector of Professional

Development, [email protected]

The ending:theCAIBdesignationmaximizesyourpotentialforpromotionand management positions, and gives youadvancedstandingfortheLaurentianUniversityonlineHBComandMBA.Socomeandjointhefunoflearn-ing.Areyousuretheacronym“CAIB”means“CanadianAccreditedInsur-anceBroker”?Maybeitstandsfor“CoolAchievement,IncredibleBlast.”Yes,youwillhaveFUNwhilelearning.Butshh…It’soursecret.Youarestillonyourcompany’sdime.IwillleaveyouwiththeadviceSteveJobsgaveathisStanfordUniversitycommencement address...“StayHungry.StayFoolish.”

continued from page 28

CLASSROOM COURSES EDMONTON CALGARY

LICENSINGLevel 1 Immersion Mar 3–7 Apr 7–11Level 2 Immersion Apr 8-10 Mar 4–6

DESIGNATION — CANADIAN ACCREDITED INSURANCE BROKER (CAIB)CAIB 1–4 Discussion Groups Feb–AprCAIB 2 Fast Track Apr 5, 12, 26 & May 3CAIB 4 Immersion Mar 24–29 Mar 24–29

SEMINARSDirectors’ & Officers’ Liability Mar 18Fraud Mar 18Errors & Omissions Apr 1 Apr 22

CERTIFICATE — BULLET-PROOF MANAGERHow To Improve Workplace Performance/Increase Accountability and Responsibility Mar 25 Mar 26

CERTIFICATE — BEST PRACTICEIntroduction: Setting the Framework for Change Feb 25Sales & Marketing Feb 26Human Resources Feb 27

WEBINARS

Feb 18 Introduction to Surety

Feb 20 How To Complete the Commercial Lines Application Part 2

Mar 11 Personal Umbrella Liability

Mar 12 E&O Webinar

Mar 13 Insurance Solutions for Residential Condo Unit Owners

Mar 20 An Introduction to Insurance

Mar 27 Brokers’ Duty of Care

Apr 3 Liability In the Electronic Age

Apr 8 E&O Webinar

Apr 24 Bad Faith Issues in Insurance

IBAA COURSE LISTING (February 15 – April 30)—MORE COURSES AT IBAA.CA

2014 EXAM DATES FOR CAIB, CPIB & IRM: FEB 12, MAY 14, JUL 9, SEP 10, DEC 3

The 4-part CAIB program includes in-depth review of technical coverages and business management strategies in the Canadian insurance marketplace. It covers three major subjects: Personal Lines, Commercial Lines and Brokerage Management. Choose from year-round Self-Study, weekly evening Discussion Groups, Fast-Track (four Saturdays) or week-long Immersion classes.

What Past Students Have to Say About CAIB“To get my designation I tried the Discussion Group, Immersion and Fast Track and found all of them to be extremely beneficial and was able to pass each CAIB level the first time. The instructors’ examples were very helpful and they made learning insurance interesting.” — Dawn Mickle

CANADIAN ACCREDITED INSURANCE BROKER (CAIB)

BEST PRACTICES SERIES

Do you want to improve your brokerage's bottom line, expand your market, and/or improve efficiency? Offered as a series of five interactive seminars, the Best Practices certificate program leads brokers through a diagnosis of their brokerage involving benchmarking, strategic planning, sales and marketing, human resources, operations and financial management.

What Past Students Have to SayAbout Facilitator Glenn White "Glenn's easy-going nature and way of keeping his students' interest makes this course not only interesting and practical but fun as well!” — Donna Payne

CLASSROOM COURSES EDMONTON CALGARY

LICENSINGLevel 1 Immersion Mar 3–7 Apr 7–11Level 2 Immersion Apr 8-10 Mar 4–6

DESIGNATION — CANADIAN ACCREDITED INSURANCE BROKER (CAIB)CAIB 1–4 Discussion Groups Feb–AprCAIB 2 Fast Track Apr 5, 12, 26 & May 3CAIB 4 Immersion Mar 24–29 Mar 24–29

SEMINARSDirectors’ & Officers’ Liability Mar 18Fraud Mar 18Errors & Omissions Apr 1 Apr 22

CERTIFICATE — BULLET-PROOF MANAGERHow To Improve Workplace Performance/Increase Accountability and Responsibility Mar 25 Mar 26

CERTIFICATE — BEST PRACTICEIntroduction: Setting the Framework for Change Feb 25Sales & Marketing Feb 26Human Resources Feb 27

WEBINARS

Feb 18 Introduction to Surety

Feb 20 How To Complete the Commercial Lines Application Part 2

Mar 11 Personal Umbrella Liability

Mar 12 E&O Webinar

Mar 13 Insurance Solutions for Residential Condo Unit Owners

Mar 20 An Introduction to Insurance

Mar 27 Brokers’ Duty of Care

Apr 3 Liability In the Electronic Age

Apr 8 E&O Webinar

Apr 24 Bad Faith Issues in Insurance

IBAA COURSE LISTING (February 15 – April 30)—MORE COURSES AT IBAA.CA

2014 EXAM DATES FOR CAIB, CPIB & IRM: FEB 12, MAY 14, JUL 9, SEP 10, DEC 3

The 4-part CAIB program includes in-depth review of technical coverages and business management strategies in the Canadian insurance marketplace. It covers three major subjects: Personal Lines, Commercial Lines and Brokerage Management. Choose from year-round Self-Study, weekly evening Discussion Groups, Fast-Track (four Saturdays) or week-long Immersion classes.

What Past Students Have to Say About CAIB“To get my designation I tried the Discussion Group, Immersion and Fast Track and found all of them to be extremely beneficial and was able to pass each CAIB level the first time. The instructors’ examples were very helpful and they made learning insurance interesting.” — Dawn Mickle

CANADIAN ACCREDITED INSURANCE BROKER (CAIB)

BEST PRACTICES SERIES

Do you want to improve your brokerage's bottom line, expand your market, and/or improve efficiency? Offered as a series of five interactive seminars, the Best Practices certificate program leads brokers through a diagnosis of their brokerage involving benchmarking, strategic planning, sales and marketing, human resources, operations and financial management.

What Past Students Have to SayAbout Facilitator Glenn White "Glenn's easy-going nature and way of keeping his students' interest makes this course not only interesting and practical but fun as well!” — Donna Payne

dragon power · 2018-04-04 · 3010 calgary trail, edmonton, ab t6j 6v4 t: 780.424.3320...

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