As a business owner or manager, you have many important tasks, one of which is to manage the business's insurance and risk management program. We can help you by offering a few ideas on how to manage your commercial insurance program.
Select deductibles that result in the lowest possible risk cost.
In general, the greater the deductible, the lower the premiums. By comparing historical losses to insurance premium quotes for various deductible options, it is possible to determine which deductible is the best. Do not insure losses that you cannot predict or afford to pay is a risk management maxim.
Waivers and hold harmless agreements have been used to transfer risk.
The legal effect varies, and there are no guarantees, but these can deflect and transfer liability if properly worded. A properly drafted and executed hold harmless and indemnifying agreement can provide adequate defense against a claim or suit.
Time and money should be invested in safety and loss prevention.
Insurance companies place a high premium on loss prevention. Numerous businesses conduct loss control inspections with the assistance of staff and independent experts. Whether or not your insurer employs loss prevention measures, you should. Numerous studies have demonstrated that for every dollar spent on prevention, many more dollars are saved.
Make your insurance renewal submission as detailed as possible.
Spend the time necessary to prepare a professional renewal submission. You want to ensure that the underwriters have all of the information they need to make an informed decision. The submission should be simple to read and comprehend. Don't suffocate them with unnecessary information.
Utilize your broker's assistance with the claims process.
Your broker can advise you on the claims process, represent you in negotiations with your insurance company, and assist you in compiling claim documentation. If you run into a roadblock or want to confirm that everything is proceeding as planned, contact your broker.
Maintain a low loss ratio in your business.
A loss ratio is calculated by dividing the premium paid by the cost of claims incurred. When it comes time to renew a policy or shop for a new insurer, an insurer will consider your loss ratio. A low loss ratio will make your company more appealing to insurers, resulting in increased competition for your business and lower premiums.