ClarkInsurance has 77 employees. It also has 77 owners.

Clark hasn't always been employee-owned. The Clough family ofPortland, Maine, started the B. M. Clough Insurance Agency in 1931.Paul Woodworth purchased the agency and added Richard W. Clark as aco-owner, changing the agency's name to Woodworth & Clark. In1988, the agency changed its name to Clark Assocs. to recognize theexpanding number of employee-owners, and again in 2009 to ClarkInsurance.

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In addition to its headquarters in Portland, Maine, Clark hasopened branches in Saco and Windham, Maine, as well as an office inManchester, N. H. “In order to grow an agency organically, oneneeds to invest in people, training and technology,” said KennethA. Ross, president. “There are no shortcuts.” This philosophy hasproved successful, as retention rates are more than 90 percent.

Clark chose to remain a generalist agency focused on offeringinsurance products and services. “We have explored expanding ourservices,” Ross said, “and every time we circle back to anunderstanding that we are insurance agents.” Employees know andunderstand insurance, so Clark believes its limited resources oftime and capital are best spent where it can obtain the bestreturn.

Over the years, Clark Insurance has developed severalspecialties, including an exclusive relationship with XL America'sprofessional liability program for design professionals. The FurInformation Council of America (FICA) selected Clark as itssponsored agency. Employees are trained to understand the needs ofcontractors, not-for profits, schools, restaurants and more.

“It is important to understand the difference between aninvestment and an expense. Though we have been cutting expensesduring the past 3 to 4 years, we have continued to invest in ourlong-term future,” Ross said. Looking ahead is one of Clark'sstrengths.

Superstar Staff

Nothing motivates staff like having a real stake in thecompany's profits. Principals own one-third of the agency's stockdirectly, but the other two- thirds is owned by employees via anemployee stock ownership plan (ESOP).

The ESOP also acts as a built-in succession plan. Employeesthink and behave as owners, and many will become principals. Clarkteaches employees how to network, use referral-based sellingstrategies, and cross-sell to current policyholders. Employeesreceive a referral bonus when they refer a prospect to anothersector of the company.

Specializing members of the Clark staff include the losscontrol/safety consultant, the marketing director and the trainingdirector. Positions like these offer necessary support to the staffand unique services to clients.

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Having a dedicated training director allows Clark to select newhires with little to no insurance experience without sacrificingquality, and also keeps current employees up to date on their­responsibilities. Training begins with identifying an individual'sneeds relative to the position they aspire to. Computer systems,Maine Insurance Agent Assn. coverage programs, online webinars,books, mentoring with other employees, field exposure, and spendingtime with management and sales professionals all play a role.Employees train for 2 to 4 years before moving on to salespositions.

The loss control and safety consultant assists clients withspecial projects and devises custom, on-site risk management plans.One insured asked the safety consultant to ride along with a driverto observe workplace conditions and practices at a private highschool. The consultant identified and documented unsafe actions andconditions with photographs and developed a presentation focused onthe best, safest delivery practices to show all of the insured'sstaff members. The presentation is now used by the insured in everynew employee orientation.

Growth on the Horizon

Hiring a competent, motivated workforce combined with thetraining and support Clark provides led the company to its bestbusiness year ever in 2010, and second best in 2009—successes madeeven more impressive by the current soft market and difficulteconomic time. Clark fell less than 5 percent short of meeting its2010 business goal in 2012, but did exceed the agency's 2012 newbusiness goal by 16 percent.

Four years ago, Clark committed to growing its employee benefits­department with the addition of a five employees and a soleproprietor. The department has seen growth in the double digitsevery year since.

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Technology is a growing part of the insurance industry, andkeeping up with new tools and systems is important to stay ahead.Clark moved its agency management system to the cloud in 2011. Thecloud also offered the best disaster recovery option. Clarkcurrently operates with Applied Systems' Epic product.

“We are committed to being where consumers search for insurancesolutions,” Ross said. The company's website and mobile websiteallow users to report a claim, receive a quote or contact Clark.Clark's blog updates regularly. Posts offer information aboutcurrent market news and general claims guidelines with intriguingtitles like “Holy Accident, Batman!” and “Marriage, Marijuana &Maine.” Clark also has a social media presence on Facebook, Twitterand LinkedIn.

Alongside organic growth, Clark acquired a smallproperty-casualty agency in New Hampshire in late 2011, whichbrought in $1.3 million of premium revenue to Clark. The company iscurrently looking for a new acquisition in Maine and plans tocontinue expanding its New Hampshire presence.

Giving Back

One of Clark's values is to serve the needs of the community.“We look for opportunities that provide mutual benefit between usand our not-for-profit customers,” Ross said. In practice, thismeans supporting golf tournaments and other fundraising events.

Other ways the company gives back include a “wear jeans to workday” one Friday of each month. Employees pay $3 for the privilege,and the company votes on which charities to donate the money toeach December. Clark has previously delivered meals to families inneed on Thanksgiving, formed groups to ring bells for the SalvationArmy during the holiday season, and served a monthly dinner to thehomeless in conjunction with Portland's Preble Resource Center.Next up: a Habitat for Humanity home site.

Ross has a wealth of advice for those looking to increaseprofitability and build a strong business: “Perpetuating an agencyis hard work, and can be expensive. Whether the plan is toperpetuate internally, or look outside, the strategies for growthand profitability ought to be similar.” For Clark, the ESOP is theheart of the agency: “I can't overemphasize how significantly thiscontributes to our success!”