Karin A Fleischhaker, CPCU
In my nearly forty years in the insurance profession, I have noticed those insureds who are given a basic knowledge of the options which are being offered to them, as well as explanations of their existing coverage, are the clients which an agency will retain for a number of years.
This Guide does not provide each and every coverage issue nor is it to be utilized as a replacement in reviewing your own policies. Instead it is hoped that the information contained herein will assist you when reviewing the insurance programs which may be offered to you by your agent or insurance company. The insurance industry changes yearly, but by being provided the basics and a firm coverage understanding, you may be not only protect your business by being assured your business is insured appropriately but the benefit may be fundamental in providing changes which may be required by members of the public.
I have been very fortunate in my career to have worked for numerous agencies and two insurers, managing the difficulties associated with soft and hard markets and the ability to have mastered solutions for unique territorial problems associated with the East and West coasts as well as those of the Midwest. In my passion to continually educate myself in an industry I love, I have had the opportunity to extend my knowledge to not only a few segments of the insurance industry but to all areas of property and casualty insurance. I began my career at a time where one had opportunities to learn if one was willing and able to extend themselves by self-study and experience.
With the lack of college level insurance education and the fact that even with education through the many programs offered through the American Institute for Property and Liability Underwriters, Inc. and other insurance schools, a graduate must still work their way up the ladder. This does not usually entice a graduate to enter into the insurance industry when many other vocations offer higher scales of remuneration than the insurance industry does for a beginner.
Not only are their fewer experts as the baby boomers begin to retire (These baby boomers began their careers prior to the many changes brought forth to the industry, and managed to stay ahead of any changes which may be implemented) but many agencies and companies now train their employees to know only a certain segment of each form of insurance. Instead, form letters and proposals are designed for use by all concerned without thought of the coverage issues and terms surrounding them.
Raters no longer are trained in underwriting; Account managers and technical assistants likewise may handle only one segment of a business and be unable to recognize other areas where an exposure may exist. For a greater part, these changes have been instituted due to the litigious state of the industry of insurance. Today agents and companies are fearful of even providing insureds with summaries of insurance by reason that in the event of a typographical error, they will be taken to court. Yet without attorneys the industry would not be able to protect itself, nor would you.
The author was a Midwestern farmer’s daughter who began her career in the insurance industry as a policy typist while attending night school at the University of Minnesota. Within six months, after studying underwriting manuals, she was promoted to a Rater-Underwriter for a then small company Minnesota Mutual Fire & Casualty Company in Minneapolis, Minnesota.
After moving to a suburb in St. Paul, she was hired by the St. Paul Companies’ loss control department. There, she not only assisted in the preparation of the company’s defensive driving manual, but also utilized her art talents for monthly loss control letters and cover design for books written in the department.
Then, one of the most knowledgeable insurance men in the industry, Richard G. Poore of Alexander & Alexander, St. Paul, solicited the author to move from the company side to the agency side of insurance. Within a year, Karin was promoted to a Personal Lines Management position. Having worked in mainly commercial insurance products up to this time, she quickly adapted to her new position to enhance her insurance knowledge.
Karin then had the opportunity to join Lee F. Murphy, Inc., an independent agency formulated by Lee F. Murphy and his son Robert B. Murphy. She began her position in commercial marketing, increasing the book of business substantially by a 90% acquisition success ratio besides formulating easy to read proposals. Thereafter, she was promoted to Vice President. She not only assisted producers and the service staff to be successful, but also acted as a closer on difficult risks which required a great deal of insurance expertise. She acted as a liaison between insurers, producers and clients by handling complex coverage and sales issues as well as warding off legal issues before they became paramount and requiring an attorney.
Desiring to increase her knowledge base, Karin was accepted a position with Corroon and Black, now known as Willis Corroon, working as an Account Executive with multi-million dollar Multi-National Accounts. One of her referrals was the first company to manufacture injections under pressure which was ultimately written in spite of the fact that there were products issues in the 1980’s as well as a decreased capacity due to increased insurance premiums.
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Later, moving to Reno Nevada, she had the pleasure of working with a renowned insurance expert Dick L. Rottman, former Nevada Insurance Commissioner and founder of A and H Insurance and Western Insurance Company, along with his son, R. Scott Rottman. This placed the author in Construction Defect claims, an arena which required great product review and knowledge.
Karin received her Chartered Property Casualty Underwriter (CPCU) designation in 1987 and has continually educated herself in all areas of insurance so that she would readily be able to assist those clients she served in an altruistic manner. She has served through the industry’s changes relative to products and construction as well as the problems associated with Windstorm in Florida, holding steadfast to the very principals which served the public best.
Contracts are entered into on a daily basis. There are employment contracts, construction contracts, public carriers contracts to transport your goods, sales contracts, purchase orders, non-compete contracts and sales agreements, to name a few. You also may have consulted an attorney to draft one or more of these contracts to protect one or more of your business activities.
Insurance policies are also contracts and most policies are standardized, providing industry-wide specific terms and conditions, which have withstood court interpretation. Usually an offer is made by an insurer to write your insurance. By paying the required premium, you will be indemnified by the insurer for unforeseeable losses. The insurance contract is not intended to provide coverage for intentional acts. Only those which are not expected may be covered.
It is my intent to provide you with sufficient policy and contract information so that you will readily recognize any restrictive endorsement to your policy, as well as inquiring of your insurance agent as to whether certain specific coverage is provided.
