Confidence Found in Insurance

As the economy has suffered over the past several years, so too has the image of insurance coverage and protection. As with any expense associated with a business, insurance costs can have a significant impact on the bottom line if left unchecked. Fortunately, the rates for commercial insurance programs have been on the decline for over seven years, resulting in some of the lowest premium levels ever recorded. However fortunate we have been, the tide may be turning…As a result, it may be better to consider insurance as a means of greater business confidence!

Insurance transactions, such as obtaining a quote or securing a general liability policy, are routine at best. It is when a loss occurs that this simple “transaction” actually becomes a means of security and a realization of business confidence. As rates stabilize and potentially increase over the next 12 months, it may be time to consider how to best use your insurance program and its purchase as an opportunity to increase your business confidence. I have listed several suggestions any business owner or insurance buyer may consider when renewing or purchasing a commercial insurance program.

1. Consider your ability to retain some portion of the loss through a deductible.
2. Review your exclusions and ask for any available enhancements to the program being offered by your agent or broker that may broaden your coverage.
3. Obtain a Drug Free Workplace certification in your state. Many chamber of commerce offer assistance in securing this program, which may lead to a discount on your workers’ compensation program.
4. Shop your coverage every few years. Use this opportunity to keep your company apprised of any changing market conditions and premium decreases.
5. Ask to meet your underwriter. In larger companies, it always surprises me on how few buyers have actually met their underwriter…shame on the agent or broker. This development of a true understanding of your business in the eyes of any underwriter is potentially huge to any buyer.
6. Ask for your claims to be analyzed by your agent or broker to minimize claims and identify claim trends that may be plaguing your operations.

Many more suggestions can easily be made, but start with the ones listed above. It will give you and your team a chance to turn a premium into a business confidence booster by getting a real grip on risk.