Special Section sponsored by TMPAA

VGM Insurance

Key programs administered include: liability for home medical equipment dealers; liability for orthotic and prosthetic practitioners; liability for home medical equipment distributors; and liability for small manufacturers of home medical equipment

Van Miller formed VGM Insurance in 1990 to offer affordable, targeted liability insurance for medical equipment firms. Miller, who already offered other services to this market, brought John Spragle on to lead the insurance unit.

As president, Spragle still heads the Waterloo, Iowa-based MGA, which focuses predominantly on home medical equipment distributors and providers, manufacturers of durable medical equipment, and orthotic and prosthetic practitioners. It is one of more than a dozen operating units within VGM Group, a member service organization providing services designed to help home medical equipment firms compete with national chains.

“That’s our niche,” Spragle says. “We operate one of the largest and longest running programs insuring specialty medical equipment.”

Service and customer responsiveness are key to VGM’s success. These traits were put into action in June, when Iowa experienced unprecedented flooding—just as some 800 medical equipment professionals had come together for VGM’s annual Heartland Conference.

“Each year, our education department hosts an event for members,” Spragle relates. More than 100 instructors cover a broad range of topics designed to help members run more profitable businesses. As floodwaters rose, portions of downtown Waterloo were shut down. VGM had to act. “We had 800 people in town,” he notes. “Some went to our homes. Others went to hotels outside the affected areas. Everyone was astounded at how we were able to handle it.”

Education classes were put online so attendees could view them remotely or at a later date. After the conference, VGM sent all attendees t-shirts that read, “I survived Heartland Conference 2008. Come hell or high water, I’ll be back in 2009.” And they probably will.

This customer focus is a 365/24/7 feature, Spragle says. “First and foremost, we are a service organization,” he explains. “Calls are answered by humans and we’re known for speedy response.” For instance, the time it takes from receiving an application to binding a policy is usually just a few hours. This contributes to VGM Insurance’s strong retention rate.

The organization encourages local service, too. “We really enjoy teaming up with local agents,” Spragle explains. “In fact, if we start working with an individual directly, we encourage them to affiliate us with their own agent. It makes them feel better because they can keep business in their local area. Most agents can’t find a market that wants the whole risk. We take the liability, and let them write the comp, auto and property.” Agents get business they might not if they weren’t able to write it without the liability.

Claims is another service focus area. “Our claims professional works closely with manufacturers,” Spragle notes. At the Heartland Conference, she presented and a manufacturer presented a session on claims and how they’re handled—what to do and not to do. “The better relationship you have with manufacturers,” Spragle adds, “the less expensive claims will be. It makes a big difference in litigation costs.”

Spragle values his Target Markets Program Administrators Association (TMPAA) involvement. “It provides a great opportunity to network and learn what works and doesn’t work in other companies,” he says. In addition, he comes away from each meeting with practical ideas. “At the last meeting, folks were talking about dual monitors for computers,” he recalls. “They said, ‘If you ever get them, your people will love you for it.’ They do. If I took them away, they’d hate me.”

He’s developed relationships that he says will help him grow his business, as well. “It’s an excellent association,” Spragle concludes, “and the people who run it do a great job.” *