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Miller’s

Serving the Tri-state area & Central Pa. since 1975.

Miller’s Insurance AgencySpring, 2012

You Posted What!?Teens, Social Media & Parent Liability Miller’s

IntroducesPersonal & Commercial

Equine & Ag Insurance

Case Study:Employee

Dishonesty Insurance

Messenger

4 Things Seasonal EmployersNEED to Know!

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The Miller’s Messenger is the quarterly publication distributed by Miller’s Insurance Agency. All content is credited to the author and may not be reproduced or transmitted in any form without the publisher’s written consent.

For feedback on the publication and article suggestions please email info@miainc.com.

610.269.4500255 West Uwchlan Ave.

Downingtown, Pa. 19335

Monday ‒

Friday8am to 8pm

Saturday9am to 5pm

www.miainc.com

Thank you to Miller’s employee Cheryl Eckenroth for the beautiful photography

featured in this issue.

Take a closer look at

Miller’s Insurance Agency.Since our home-based start by Art Miller in 1975, Miller’s Insurance Agency has grown around the business practices of professional sales and dedicated service.

Partnering with over 20 insurance carriers, Miller’s is a full-service consultative agency who takes a proactive approach in managing the insurance and financial needs of families and businesses in the Tri-State Area and Central Pennsylvania.

Why choose Miller’s?

As an independent insurance agency we look at client’s risk factors, lifestyle and goals to pair them with risk management solutions which best suit their needs.

Our clients appreciate the familiarity they have with their Consultant/Account Manager team, who proactively monitors their accounts – ensuring coverage, planning and pricing all flow seamlessly with the client’s needs and goals.

Our goal is to provide clients with a familiar faceto explain the small print and

serve as an advocate in times of need.

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trusted LIFE planning.

tailor-made PERSONAL insurance consulting.

proactive COMMERCIAL account management.

innovative EMPLOYEE BENEFITS plans.

Stay Tuned! Next Quarter’s Special Feature:

Introducing Miller’s Financial Services, Co.

& Robert Winkelman

4 Message from Our CEO

5 Call for Referrals & Recommendations

5 Miller’s Car Seat Safety Event

6 The “In & Outs” of Equine Insurance

8 You Posted What! Teens, Social Media & a Parent’s Liability

10 Motorcycle, Boat & RV Coverage

11 Health Care Industry: How to Bullet-Proof Your Business

12 Case Study: Employee Dishonesty Insurance

14 4 Things Seasonal Employers Need to Know About Insurance

16 E&Uh-Oh! Errors & Omissions

18 Lowering Workers Compensation Premiums: Experience Modification Review & Audit

Page

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Miller’s has gone through a year of growth – we have welcomed many new faces into the double doors of Miller’s Insurance Agency. As a new generation comes in, I can’t help but think to the past. It was 32 years ago that I was given the chance to begin my career, although I did not know it at the time.

I was hired by Miller’s to do filing, and now serve as CEO and part owner – it has been a wonderful experience.

Just as I have been given, my goal is to provide our talented new team members the opportunity to grow and develop their career. As I schedule employee development seminars, training sessions and new product demos, I imagine you are scheduling and planning opportunities for someone in your life.

In the age of the internet it is easy to promote yourself to the world in 10+ widespread forums, but to be given an exceptional opportunity to advance remains a rarity.

Last fall Miller’s was saddened to lose Tom Thieroff, Vice-President of Commercial Lines, after a year long battle with cancer. In the spirit of providing opportunities, Miller’s and the Thieroff family have developed an annual scholarship allowing three local high schoolers attendance at Pennsylvania Free Enterprise Week, a hands-on experience revolving around the American free enterprise system. In memoriam of Tom, we are proud to offer this opportunity to cultivate an entrepreneurial courage in future leaders.

As Miller’s is doing for our new team members and for local high school students, I encourage you to give someone an opportunity. An interview, sound advice, your time and energy, a helping hand to get ahead in this ever changing world… just as I was given 32 years ago.

As always, I thank the friends, family and community for their unfaltering support of Miller’s Insurance Agency,

Fran ShawChief Executive Officerfran.shaw@miainc.com

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Miller’s is looking for recommendations and referrals. Had a great experience with us?

Our greatest compliment is you speaking up!

Miller’s makesit easy:

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Personal Insurance

The "In & Outs" ofPersonal Equine Insurance:

Why Miller’s Insurance Agency jumps the Competition.

Contributed by Tricia CichonExecutive Vice-President of Commercial Insurance Operations Spring 2012

As horse owners we are, by nature, worriers. We think about colic, intestinal issues, the theft of horses and pricey tack, puzzling lameness, a navicular and about 800,000 other things we hear or are witness to.

As I did for myself, I encourage you to take a step to lower your own blood pressure - investigate insuring your equine family with a low premium, broad coverage insurance policy from Miller’s Insurance Agency.

Our equine Mortality Liability Coverage has a liability limit based on your horse’s value, which is determined through a current bill of sale or industry standards. Miller’s Insurance Agency’s Mortality Liability Coverage has NO deductible, and is defined as the death, or humane destruction, as a result of an accident, injury, illness or disease that occurs during the policy period.

As an avid equestrian, I developed Miller’s Equine Insurance Program around realistic needs. My research and experience proves that realistically, Mortality Coverage is not enough. If you are going to protect the risks associated with your horse through insurance - it is important to look at a Major Medical/Surgical Endorsement.

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A Major Medical Endorsement will cover your horse for up to $15,000 of medical treatment (accidents, injuries, illness, disease, respiratory/breathing treatments, shockwave therapy to $1,200., Navicular, Arthritis, DJD, and IRAP to $1,200.) with a deductible of only $250 for each claim.

Major Medical Endorsement: Carrier pays “reasonable and customary veterinary fees” incurred for “surgical or medical treatment” or diagnostic testing provided to your “horse” by a “qualified veterinarian.” Provided that the “surgical or medical treatment” or diagnostic testing is necessary for that “horse” because of:

•any accident, injury, lameness condition or lameness injury, or physical disability, that is first sustained, first occurs or first manifest itself from the effective date of the endorsement to the end of the “policy period”; or•any illness or disease that is first contracted, first occurs or first manifest itself from the effective date of this endorsement to the end of the “policy period.”

What makes Miller’s Insurance Agency’s Equine Insurance Program stand apart from others is our ability to purchase you limits up to $15,000, when other provider’s maximum is $12,500.

As a Chester County-based equestrian, I was concerned about coverage for treatments pertaining to local diseases when I developed the Miller’s Equine Insurance Program. I am proud and confident to say that as long as your horse has been inoculated; all medical expenses pertaining to viruses such as West Nile are covered through Miller’s Insurance’s equine policies.

Regardless of exceptional coverage, at the end of the day AFFORDABILITY has to be a deciding factor when insuring your horse. My goal was to make Miller’s Equine Insurance Program one which “made sense” as an option for most equestrians. For example – consider a $7,000 horse between the ages of 2 and 14 years-old, who is primarily involved in hunter/jumpers or combined training. A Full Mortality Liability Policy, Colic Coverage and a Major Medical/Surgical Endorsement costs LESS then $500 per year! It is important to take note that an animal competing predominately in Foxhunting, Racing, Flat-work only; and/or are a yearling; or over the age of 15 have a different rating scale. For an estimated rating on your horse, please reach out to me, as I am happy to run the numbers on what a “breath-easy” equine insurance policy would cost for your four-legged family.

Visit www.miainc.com/equineinsurancefor more information on Personal & Commercial

Equine Insurance contact

Tricia CichonTricia.cichon@miainc.com610.514.0214

Equine Insurance Continued.

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Jealousy. Passion. Betrayal. No, not the latest television drama, but high school. For many the high school experience comes with social pressures and obligations to fit in and belong, and sadly this can lead to exclusion and isolation of some students. At some point we all probably said something in our teen years in the heat of the moment that we wish we could take back, but today’s teens face the added burden that if they convey those statements on social media sites like Facebook and Twitter, their words could be around for a lot longer than just the heat of the moment.

It doesn’t take much searching of the news to see stories of teens using social media sites like Facebook to transfer the cruelty of high school hallways into the online world. Teens that tease or make fun of a peer may be responsible for more then hurt feelings. If they’re publishing bullying or teasing posts online or revealing private information about another teen in a public forum, they may be exposing you and your insurance policy to a claim.

Are my kids covered under my insurance?

Generally speaking, any coverage you have through your homeowners or renters insurance policy also provides coverage to other residents of the household, including your teenage children. Standard homeowners and renters policies include liability protection for bodily injury or property damage, which would pay for the costs to cover medical bills or repair/replacement costs. Examples include your child injuring a friend in a pick-up basketball game or accidentally spilling soda on a friend’s $13,000 oriental rug.

But what if your son or daughter were to post rumors about other teens online that implied drug use, promiscuity, or other information that could damage that person’s reputation? With college admissions offices and employers beginning to look up applicants on social networking sites, rumors and gossip have the very serious potential to damage someone’s ability to get into the college of their choice, or find a job. Or if your son or daughter “outs” another teen’s sexual orientation, as in the case of Rutgers University student Tyler Clementi, there’s the potential that someone could pursue legal action under a type of defamation known as publication of private facts. Interestingly, a standard homeowners or

renters policy would NOT COVER these instances. So what can you do?!

Teens, Social Media & a Parent’s Liability

Personal Insurance

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H - O

1. Talk to your kids about the repercussions of their actions. 2. Get a Personal Injury Endorsement.

In order to cover claims from that kind of situation, homeowners and renters policies must have what is called a personal injury endorsement. You may be surprised to find that this expanded coverage may not cost you much additional premium. A personal injury endorsement will pay the costs up to the limits of your policy to defend you, pay a judgment or settle a case when legal action is brought against you or your children for defamation.

Make sure that if you’re a parent, you talk to your children about social media, how they use it and what’s expected of them. It’s critical that they understand how their use of social media could impact your insurance. Some parents choose to actively monitor their children’s use of social media, and there are various software programs available to assist those who want to closely monitor what their children do in social spaces for parents who want access to their children’s profiles. No matter what you choose to do, we should all encourage each other to treat others with respect.

“You Posted What” Continued.

Article contributed by Miller’s partner, Trusted Choice®, Spring of 2012.

Trusted Choice® is an organization who partners with elite insurance agencies whose access to multiple companies and commitment to quality service enable clients competitive pricing, a broad choice of products and unparalleled advocacy.

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Boat.

Before you get back on the water, take charge of your boat insurance

with coverage that will keep you safe, no matter the size of the wave.

Save money:Annual policies are as low as $100. You can save even more when you pay in full or have multiple policies with Miller's.

Keep you pets protected:Buy Collision coverage and you may be eligible for $1,000 to pay vet bills if your pet is hurt in a boat accident.

Simplify your life:Choose a variety of payment options and access your policy online or over the phone at anytime!

Visit our blog:Tips and Tricks from the

experts in getting your boat ready for the water.

GET A QUOTE

Recreational Vehicles.

Whether you are commanding the highway

or relaxing in camp, enjoy the view knowing your fun

is protected.

Save money for safe driving: You can choose to have your deductible drop 25% each year you're claim free.

Keep you pets protected:Buy Collision coverage and you may be eligible for $1,000 to pay vet bills if your pet is hurt in an RV accident.

Travel with confidence:Choose Emergency Expense Coverage for up to $7,500 worth of hotel and transportation expenses if your RV is damaged during a trip.

Simplify your life:Pick from a variety of payment options and access your policy online or over the phone at any time!

Visit our blog:Pre-season checklist:

Prepare your RV for the road ahead.

Motorcycle.

Wherever andwhatever you ride –

take control of your insurance.

Save money:Annual policies start as low as $95. Save even more by paying in full or by having multiple policies with Miller's.

Tailor your policy:Physical damage coverage includes $3,000 worth of coverage for your accessories. You can buy additional Accessories coverage up to $30,000.

Ride with confidence: Choose Emergency Expense Coverage for up to $7,500 worth of hotel and transportation expenses if your ride is damaged during a trip.

Simplify your life: Pick from a variety of payment options and access your policy online or over the phone at any time!

Visit our blog:Insure your ride, including your accessories.

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Commercial Insurance

Did you know!? Miller’s specializes in Commercial Insurance for Long Term Care & Skilled Nursing Facilities!

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Published by Miller’s Insurance Agency, December, 2011.

An increasing common issue, which is often overlooked, Miller’s provides an analysis through the case study of a local business.

In addition to the bad economy, businesses are increasingly victimized by Employee Dishonesty and theft as the economic crunch spreads from the CEO’s portfolio to the receptionist’s pocketbook.

Case Study:

Employee Dishonesty Insurance.

Commercial Insurance

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Unfortunately, cases like this are NOT UNCOMMON.

The Lancaster Sunday News reported (on 12/11/11) that Secret Sneaker, an innovative small business in Lancaster, Pa, is closing it doors after 16 years. More interestingly is the case reported by the store's owner a year ago: his trusted employee stealing $115,000 from the store. While business is down, that $115,000 might have kept their doors open long enough for sales to recover. $115,000 is roughly 3 full time retail employees’ salaries for a year!

The article made mention that a second Lancaster, Pa. business, Penn Cinema, filed charges against their, now former, General Manager who stole over $100,000 from the theater. In the article, Lancaster Newspapers reports on the 21 cases of employee theft for over $100,000 since 2008.

That's right, Lancaster County businesses have lost over $2.1 million in the last 4 years to Employee Dishonesty!

…And that's just what ended up in the news!

How can a company protect itself from wolves in sheep’s clothing- who they trust with their bank accounts, corporate credit cards and livelihoods? Many times, in order for a business to grow significantly, accounting and financial management must be delegated to these trusted employees because executives are busy with business development. Good policies, procedures and occasional financial audits can certainly be a first line of defense, but may not always prevent a loss.

Employee Dishonesty is specifically excluded on commercial property insurance forms, though many have prepackaged endorsements that contain10, 25 or 50 thousand dollars of coverage - but what if the theft is over six figures? Is your company prepared to Self Insure a $60,000 - $80,000 loss?Higher amounts to protect against business-crippling employee theft can be added to a business insurance policy, and may not cost as much as you think. Has your insurance broker ever done a comprehensive-needs analysis to determine if this coverage makes sense for your business?

Employee Dishonesty Continued.

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Things Seasonal Employers

Need to Know About InsuranceGrange Insurance offers advice to small business owners

preparing for busy spring and summer months.

COLUMBUS, Ohio – If you’re making final preparations before your company’s busy time of year this spring or summer, it’s the perfect time to evaluate your current insurance coverage. Columbus, Ohio-based Grange Insurance offers four important considerations for seasonal employers to address before business starts to peak.

1. Am I planning to hire any seasonal employees?

Landscaping companies, construction companies and several others hire millions of seasonal workers each spring and summer. If you’re planning to hire any seasonal employees, including teens, be sure to minimize your risk and properly train all of them on necessary safety procedures. These procedures may include steps to avoid injury and damage to company property.

2. Have I purchased any new equipment within the last year?

This may seem like a simple question, but often when people purchase new equipment at the end of a season, they forget to secure the appropriate insurance coverage for these items. After you’ve confirmed these new pieces of equipment are insured, also check to make sure the coverage you do have has relevant limits. “If you’re ever unsure as to what your current policy covers, schedule an appointment with your independent agent. He or she will be able to let you know whether or not you do require additional coverage,” said Elizabeth Dinnin, president of commercial lines for Grange Insurance.

3. Am I planning to bring a vehicle or other piece of equipment out of storage?

If so, consider taking these vehicles or other pieces heavy equipment to be serviced before you put them back out on the road. Proper service and maintenance can significantly reduce accidents and other safety hazards. And, if any of these vehicles and the tasks they perform are more specialized, you should also double-check with your agent to make sure you’re completely covered. “If you’re planning to use any non-traditional equipment like tow trucks or gravel hauling equipment, you may not be covered under your traditional policy,” said Dinnin.

Commercial Insurance.

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Voted "Best of the Main Line" for "Best Breakfast" for the past 12 years, Nudy’s has expanded to bring award-winning breakfasts

and their signature lunches into your office!

Nudy’s catering menu features signature items, lunch boxes, new themed lunches and healthy choices. Nudy's Corporate Catering is sure to make any meeting or occasion a success.

For questions, requests or to place an order:Verena KapplerCatering Manager610-883-3141 vkappler@nudyscafes.com

Download our catering menu now or simply order through our online ordering system at: www.nudyscafes.com/catering.php

Please note that we require 24 hours to prepare your order and each order must be for a minimum of 10 people in order

to be delivered for FREE.

Miller’s Insurance Agency recommends…

“However, your independent agent can point you in the direction of the best products on the market to meet your needs and budget. For example, Grange offers an AutoAccel® product specifically designed to address coverage limits as they relate to these more non-traditional vehicles.”

4. Have I checked my buildings and various properties for winter damage?

Early spring is the best time to check any buildings or other structures for winter damage. Consider taking a walk around all your properties in an attempt to locate any roof damage, gutter blockages or any other potentially dangerous situations. If you identify any potential issues, address them with your insurance agent immediately.

Miller’s thanks Grange Insurance for their contribution to our newsletter.

Seasonal Employees Continued.

Locations in:Devon, Pa. Exton, Pa. Eagleview, Pa. Frazer, Pa. Phoenixville, Pa. Downingtown, Pa. West Chester, Pa.

16Commercial Insurance.

E&Uh-

oh!Errors & Omissions

Contributed by Jeff Cox,Commercial Insurance Consultant,joined the Miller’s Team in January 2012. Jeff has a range of industry exposure which has allowed him to work with a range of clients from one- man businesses to multi-national corporations. His consultative approach is crafted around a client- centric philosophy, with attention to detail and a passion for success. Jeff is an active member of the Chester County community and has been involved in youth athletics in Downingtown for 15 years.

Jeff.cox@miainc.com

Direct Line: 610.514.0204

Professional liability policies are designed for a specific risk - the risk of loss caused by the negligent performance of professional services.

Some of the most common occupations that would be in need of Professional Liability Insurance include:

Medical Professionals,

Lawyers,

Architects,

Engineers,

Construction Managers,

Real Estate

Professionals,

Public Officials,

Public Entity,

Technology Consultants

…just to name a few.

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CAN NOT Be Covered:• Bodily injury or property damage

• Fraudulent acts

• Employment matters

• False advertising

• Patents and trade secrets

• Personally identificable information

E&O Insurance Continued.

Optional

Coverages:• Alleged or actual negligence

• Defense costs

• Personal injury (libel or slander)

• Copyright infringement

• Worldwide coverage

• Temporary staff and subcontractors

• Claims arising from service provided in the past

• Claims and damages

Professional liability insurance gives your business protection from the risks

you face in delivering your professional services. It insures your business’ against the alleged failure to perform, or due to financial loss, caused by your error or omission. These are potential causes for legal action that would not be covered by a general liability insurance policy which addresses more direct forms of harm. Professional liability coverage can provide for the defense costs, including costs incurred when legal action is deemed groundless.

Professional Liability Insurance is required by law in some areas, for certain professional practices (especially medical and legal), and can also be required under contract by other businesses that are the beneficiaries of the advice or service.

Don’t be fooled…Professional Liability coverage is NOT provided by a Commercial General Liability policy. Commercial General Liability does NOT provide coverage for error, contract performance disputes or any other Professional Liability issues.

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If your company uses a guaranteed cost program, it is vital to review your experience modification worksheet to ensure claims are coded correctly and correct payrolls were used. While this doesn’t affect companies with loss-rating plans and retro plans, it does affect those companies with “mod-rated” plans.

The modification rating affects more than just the rate you are paying and can be used by potential clients and government agencies for bidding purposes. Certain industries, like construction, may be precluded from even bidding on a project if their experience modification factor is too high.

How do I check my experience modifier for accuracy?

1. Experience Rating Period (ERP)

This is a primary area where many mistakes are discovered. (Especially when policies have been cancelled before the normal expiration date.) The ERP is 36 consecutive months during which the policies that cover an employer are included in the mod calculation. Typically, the ERP begins forty-eight months before the effective date and ends twelve months before a mod becomes effective- but there are exceptions.

2. Payrolls

Are the payrolls in the experience modifier correct (they are from past audits)?

EXPERIENCE MODIFICATION REVIEW & AUDITcould generate lower Workers Compensation premiums.

Commercial Insurance.

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3. Losses

Do all the losses in the ex-mod belong to your organization? Be sure to check loss runs against the experience modifier.

4. Preliminary or Contingent

This is a sign of potential trouble. Is the experience modifier on the policy labeled as preliminary or contingent?

5. Claims

When was the last claim review conducted? Were losses closed before the ex-mod’s unit date? Is that reflected in the mod worksheet?

6. Large Losses

Are they capped at the state maximum? Do you know your state’s maximum loss? It is $42,500 in Pennsylvania.

7. Last Mod Calculated

Typically rating bureaus and the NCCI update ex mods as they receive new data. Your policy should contain the last experience modification that was calculated. Sometimes the paperwork slips through unchecked and the policy reflects an out-of-date experience modification.

Reviews and Audits Insurance.

Contributed by Robert Peiffer, Commercial Insurance Consultant: Central Penn Region,who joined the Miller’s Team in December 2011. Robert draws from his experience as an Underwriting Manager at Fireman’s Fund: Central Texas to ensure proper pricing for his clients, and has been recognized by Wausau and Nationwide for his expertise and success with insurance coverage.

Contact Robert:

Robert.peiffer@miainc.com

Direct Line: 610.518.3569