Family Ties

Now in its fourth generation of continuous family ownership, the Mahowald Insurance Agency treats their complex family ties with both pride and diffidence.

By Gail Ivers

John Mahowald, managing partner of Mahowald Insurance Agency, works with his brother, two brothers-in-law, a nephew, and a second cousin.

Robert L. Mahowald works with his son, two brothers-in-law, and two distant cousins.

Robert W. Mahowald works with his father and two uncles.

Now in its fourth generation of continuous family ownership, the seven partners in the Mahowald Insurance Agency treat these complex family ties with both pride and diffidence. “You always know who’s got your back,” says John Mahowald. “There’s a lot of satisfaction in running a successful business. There’s an additional layer of satisfaction because it’s a family business.”

1930s
Anthony Mahowald started the Mahowald Insurance Agency in 1930. He was what was known at the time as a “home service agent,” going door to door every week collecting premiums for life insurance policies he sold. In the late 1930s and 1940s, Anthony, known as Tony, branched into boiler insurance. Insurance companies didn’t write homeowners’ or business owners’ policies at that time – individuals had to buy each line of insurance separately.

In 1956 Tony’s son, Robert A. Mahowald joined the business. Together they started expanding the company, even while Robert A. was serving in the National Guard and the Minnesota Legislature. One of the things Robert A. is remembered for is expanding the agency beyond personal insurance coverage. His first big step, according to John, was helping the St. Cloud School District consolidate their multiple insurance policies into one policy. “That was kind of our emergence into commercial property/casualty insurance,” according to John.

1970s
“In the 1960s,” John explained, “physicians bought medical malpractice insurance as part of their home owners’ policies. In the 1970s the evolution of insurance moved it off the home owner’s policy and lots of insurance companies wouldn’t write malpractice – or medical/professional liability as it’s called now.” As this evolution was occurring, the Mahowald Agency had not only been writing policies for physicians, but also for the St. Cloud Hospital.

“When the medical/professional liability insurance came out it was a more complicated line of insurance,” according to agency partner Greg Murray. “We understood it. So while other companies were moving away from writing it, we were able to write more and more.”

Other agents chose not to write the policies, according to John, because “an error in a policy would be very costly for an agent, both in terms of money and reputation.”

Their expertise in this line of insurance served them well in 2008 when St. Paul Travelers Insurance, the primary provider of medical/professional liability insurance, announced that they would no longer provide coverage.

For the complete story visit the St. Cloud Area Chamber of Commerce for this issue of Business Central Magazine or subscribe by calling Cindy at 320-251-2940, ext. 100.

Business Profile
Mahowald Insurance Agency
916 W Saint Germain St
PO Box 129
St. Cloud MN 56302-0129
Phone: (320) 251-3751
Fax: (320) 251-2373
www.mahowald.net

Owners: Seven partners – John Mahowald, David M. Mahowald, Marty Mahowald, Robert L. Mahowald, Robert W. Mahowald, Greg Murray, Tom St. Hilaire

Employees: 34

Service area: St. Cloud and the Twin Cities, with about 80 percent of the business coming from within a 30 mile radius of St. Cloud

Business Divisions: Personal insurance lines: 7-8%; Benefits: 25% (group products such as health, life, disability insurances); Financial Services: 25%; Commercial property casualty and medical/professional liability insurance make up the remainder

Awards: 2009 Business Central Mark of Excellence-Family Owned Business; Two-time winner of the Minn. Federation of Business & Professional Women Employer of the Year

Corporate goal: To double in size by 2017

Community Contributions: The staff and owners at the agency volunteer or contribute to many different organizations, including: United Way, Girl Scouts, Cathedral High School and their foundation, College of St. Benedict/St. John’s University, Catholic Charities, and CentraCare, as well as many others.

Fun Fact: The partners and staff at Mahowald Insurance Agency have over 435 total years of insurance industry experience and more than 57 degrees or industry designations.

Another Fun Fact: A look at the company ledger shows on-going ties with other family businesses in the St. Cloud area. For instance, Mahowald has been writing insurance for the Daniel Funeral Home since the 1940s. “That’s as far back as our records go,” says John Mahowald.