Dan Marzouk is launching a K2 Insurance unit to handle the nuanced coverage needs of vehicle service garages and dealers. “We are focused on a better way to do things,” he says. “K2 Specialty insurance provides exceptional service and excellent technical assistance. The company has significant infrastructure and several units have implemented ePayPolicy into their platforms. We are implementing ePayPolicy into our garage and dealer unit from the get-go.”
How the Relationship Started
A carrier approached K2 Insurance in early 2021 to discuss setting up a niche MGA for vehicle dealers and garages.
Filings were sent to states in May and the technology integration wrapped up as of July. Dan always planned on using ePayPolicy. He says, “ePayPolicy was one of the easiest integrations. They have a partnership with MGA Systems, so it plugged right into our accounting system.”
Benefits to Retail Agents
With ePayPolicy, K2 provides agents and their accounting teams with a full view of their payables.
“ePayPolicy allows our customers to accept payments directly through our system. They choose which policies they want to pay. Their accounting team can know if there’s money they owe K2 that they may not have billed. Everyone can log in and see all their invoices and all their credits,” Dan explains.
Plus, if an agent happens to have ePayPolicy on their end, that makes it even easier. It’s also a bonus for K2. “When they get paid, we get paid.”
The response during beta testing has been “ecstatic.”
Benefits to the MGA
K2 appreciates ePayPolicy for saving time and streamlining the receivables process. As an example, Dan talks about receiving a wire for $52K with no backup. “We could spend a week going back and forth trying to figure out which account(s) that payment is meant for. Our ‘mega’ agencies have a single accounting team. We may be working with five different offices, but they will send one payment! ePayPolicy makes clear how each payment gets allocated.”
Dan especially likes that ePayPolicy:
- fully integrates with K2’s accounting system
- enables K2 to invoice multiple accounts simultaneously
- minimizes energy drain and confusion of chasing down payments
- saves K2 from having to send out cancellation notices
- can process both direct bill and agency bill payments
He also talks about collaborating with ePayPolicy to achieve special, nonstandard customization his team needs. “We hopped on a call with the programmers. Everyone looked at the code together and we quickly got it done.”
ePayPolicy Helps with K2 Clients Large and Small
Small to medium-sized agencies without accounting departments can use it for direct pay. Medium-sized to large clients are agency bill. K2 can send all their agencies links so their insureds can pay conveniently online.
“I want to keep it very easy. I don’t have to worry about keeping bank account or credit card info on file. It’s all secure and the system has fail safes,” Dan notes.
K2 Specialty Dealer Insurance shares an accounting team of three people with other K2 units. Dan comments: “We had one unit that was hesitant about ePayPolicy, but our accounting team convinced them to reconsider. K2 has a large network of agents across the country. We want to do everything we can to make their lives easier.”
He concludes: ‘People buy based on product, price and relationships. We help our agents build relationships. Individual quotes may come in a little higher or lower. Our value is that they don’t have to worry about billing.”
Advice to Other MGAs
Dan suggests: “If you haven’t thought about it, think about it. If you polled your top agents, likely many of them are using ePayPolicy already. With COVID, your offices may not be staffed. No one is there to accept checks. You don’t always know that a wire came through. You always have proof of payment from ePayPolicy.”
About K2 Insurance
K2 Specialty Dealer Insurance is part of K2 Insurance Services, LLC, a leading underwriting and distribution franchise in the program insurance market. K2 Insurance is the parent company for 22 — and growing — MGAs focused on individual niches across the U.S. and world, including energy, golf and country clubs, attorney malpractice, wineries, municipalities … and now, garages and dealers.