Is Your Business Prepared for a Challenging Insurance Market?
The Insurance Marketplace is under a lot of stress
There is a lot that contributes to this right now, the economy, COVID 19 pandemic, and natural catastrophes. This situation is a double whammy for business owners while attempting to overcome the pandemic’s effects; they now have to deal with a more difficult Insurance purchasing process. The usual just bid your insurance program out to various companies may or may not work, not if the broker you are working with isn’t seeking the correct solutions. Now is the time to partner with an advisor, someone who is willing to take the time to learn about your business and be able to present it to underwriters in the best light.
What proactive approach have you developed to keep your insurance cost as competitive as possible? Do you have a plan? Does your broker have a plan? It is essential during times like these to take the necessary steps operating your business to stay as efficient as possible. The insurance marketplace is going to be different for each class of business, and the different coverage, Liability, Property Auto, and Professional Liability will also have different stress points. For example, if you are a contractor with a large fleet of vehicles and loss history, your automobile liability policy may pose to be more difficult to place than in the past. If you are a Residential Condominium Association the property will see an increase, but the Directors and Officers Insurance may increase more this year than in the past.
What can you do?
While you cannot control the Insurance Marketplace, you can control how the insurance underwriters view your account. Be sure to document any measures you have in place to reduce the likelihood of having a loss. Review the loss history and determine if there is an underlying issue that is creating the claims. For example, if there are Workers Compensation claims associated with lifting heavy weight purchase back braces, develop team lifting procedures to reduce the exposure. Be sure to share this with the insurance companies, so they know you are taking proactive measures to reduce claims and encourage workplace safety.
Unfortunately, there is no “Silver Bullet” to prevent higher insurance costs; it takes hard work, time, and a collaborative approach. Make sure you are working closely with your Risk Advisor to develop these techniques, and if you aren’t, be sure to start.