RISK EDUCATION—Every business owner knows they need insurance. But many business owners don’t realize the importance of utilizing a Risk Manager to help navigate the insurance marketplace for the best coverages, individualized programs and competitive prices.

One of the most frequently asked questions about Risk Managers is “How are you any different than my insurance agent?”

I’ve asked American Risk Managers Vice President Jessica Spears to answer that question for our readers.

Here are some of the many ways that Risk Managers differ from insurance agents:

• Insurance agents receive compensation from insurance companies. As Independent Risk Managers, we receive no compensation from insurance companies.
  
• An insurance agent’s compensation is based off of a percentage of your company’s premium. Our compensation is a straight fee that is always covered by your savings.
  
• Our only loyalty is to our client. We have no preference as to who you choose as your agent or insurance company.
  
• We draw up Bid Specifications specific to your company from which all insurance bids are based. This way, you have a true apples-to-apples comparison on all of the bids.
  
• An agents’ responsibility is to their company and the insurance companies. Our only point of loyalty is to our clients.

We believe that everyone knows the business they are in better than anyone else. If you are in the retail business, you know retail. If you are in the manufacturing business, you know manufacturing.

We are in the Risk Management business and we know insurance.

That is why we believe it is important to have someone like us — someone who sits on your side of the desk — to help you understand your exposures and the coverages you need.

We also know how to read the insurance policies to ensure all your risks and exposures are covered.

Talk To Ms. Jessica About More Risk Management Benefits By Calling (800) 548-0117.

 American Risk Managers
Risk Management That Pays for Itself in Lower Premiums
www.Amerisk.org  1 (800) 548-0117  Advisor@Amerisk.org
Serving Alabama, Mississippi, Tennessee, Louisiana & Arkansas

(Photo Credit: Christina Morillo/Pexels.)

RISK EDUCATION—American Risk Managers is proud to offer FREE Cost Benefit Surveys to prospective clients.

These no-obligation free surveys provide an opportunity for you to see the value in Independent Risk Management Consulting, as well as the insurance savings you can expect.

Want to know what happens after you click that “FREE Cost Benefit Survey” button?

I asked one of our Risk Managers, Mr. Walter Haney, Sr., to walk us through the process.

Gathering & Examining Information

For the first step, American Risk Managers will contact your company’s management (or you) to arrange a look at your company’s current insurance file.

“And if you have a loss run file (claims), we’ll also look at that and review any losses you might have,” Mr. Walter said.

One or two of our Risk Managers will also make a brief on-site visit and meet with management.

“We’ll discuss any future plans you may have and if there’s going to be an increase in activity or in buying of equipment or material,” he said.

After determining exactly what you have insured, our Risk Managers will look at the insurance rates you are paying, as well as the other assets that make up the financial charges for your insurance policies.

“We will then establish the rates you should be paying and the amount of coverage needed,” he said. “We’ll also check to see if your current coverage is sufficient from what we’ve seen in person or according to the materials you’ve provided.”

When these tasks are completed, our Risk Managers will know:

• What you should be paying;
• What you are paying; and
• What limits you should have.

You’ll also learn what saving you can expect, if you choose to move ahead.

“And we’ll explain how we can create a unique program to fully conform your insurance policies with the loss potential your business is operating with,” he noted.

Reviewing Your Survey & Savings

Besides learning about your savings potential, you’ll also be provided with the amount of fees you can expect from American Risk Managers.

“If there’s anything else that would involve any extra expenditures on your part, we’ll let you know that then, too,” Mr. Walter said. “Although there normally isn’t.

“That’s the Cost Benefit Survey for you.”

With your survey in hand, you’ll have an opportunity to review the findings and your possible next moves.

“You and your management team are then able to make up your mind,” he said. “You can discuss, ‘Okay, are the savings enough or are the coverage corrections needed important enough for us to go through this?’

“If it’s not, then don’t do it.”

In rare instances after the survey process, Mr. Walter said he’s found that a company’s current rates are good and its current limits are good.

“If that’s true for your company, we’ll tell you that, too,” he said. “We’re not going into a situation where there’s no potential for savings or beneficial and needed coverage improvements.”

What If We Still Need Help?

Upon finding their rates and limits are good, some companies still choose to take advantage of Risk Management expertise in other areas.

“If you want us to come and set up your insurance program for you and bid out your insurance for you, we’ll do that,” he said.

Our Risk Managers can also help your company set up its Workers’ Compensation program to streamline processes and obtain more savings.

Mr. Walter stressed that helping companies, and offering advice and advocacy, has always been American Risk Managers’ core mission.

“Anytime that you’re buying insurance or dealing with us in relation to your insurance program,” he said, “we want you to fully understand what you’re doing and any potential gains or losses that are involved.

“That’s it. It’s rather simple. But it’s awfully important to you.”

What About Savings?

If your company has not used a Risk Management Service before, you can normally expect to save anywhere from 25-35% of your present premium.

(See some sample savings here.)

How Long Is The Process?

The FREE Cost Benefit Survey is not a very long process.

“It depends on how much information you have,” he said. “But we’re usually able to turn it around for you within a couple of weeks.”

Tell Me More About This Information You Need

The data needed for your FREE Cost Benefit Survey includes your current insurance policies and your loss files.

“From your insurance file, we’ll be able to determine what vehicles you have, the types of buildings that you’re insuring and the contents of those buildings,” Mr. Walter said.

“We get a considerable amount of information out of those insurance policies. More than just a rate. More than just a premium.”

He added that the loss run files also provide significant information.

‘If you have losses, we’ll be able to determine the type of losses that you’re having,” he said.

“And if you’re having a whole series of medium-level losses, it will tell us whether or not you should consider some sort of a deductible program, where you can receive credit on your premium.”

If your company has a chance of receiving valuable credits, our Risk Managers will suggest a program involving that option.

“But we want to be sure that you’re not going to get into anything that’s going to cost you extra money,” he said. “We won’t let you go into a trap situation.”

Please Explain A Trap Situation

Mr. Walter said one circumstance that could turn into a possible trap-like scenario involves deductibles, where clients agree to pay for a certain portion of claims.

“If the potential deductibles are not high enough for a meaningful credit on your premium,” he said, “or even if they’re high enough, but our research shows a tendency to have claims where you would have to pay out significant dollars in the claim area, then we’re going to advise you against that.”

What About The On-Site Visit?

As part of the survey process, our Risk Managers usually pay a brief visit to your company.

“But we don’t have to do that,” Mr. Walter noted. “We can do the free survey with a mailing of all this information to our office.

“Or, if you’re agreeable, we could come to your office, do a light walk around and look at any property you have readily available.

“Obviously, we’re not going to get into an in-depth review of your exposures until you sign a contract.”

How Long Does The Site Visit Take?

The length of time for the site visit will depend on the size of your company’s operations.

“It could take 15 to 30 minutes,” he said. “Or maybe, it might take an hour. The walk around time depends on how big your facility is.”

What About Presenting Your Findings?

After the Risk Managers have examined all the data on your company and performed their brief site visit, they’ll meet with management to deliver their survey report.

“Our presentation won’t be lengthy, it’ll take approximately 30 minutes,” he said. “We’ll discuss the coverage you have now and what you need. We’ll present our findings in a little booklet that usually runs four or five pages.

“We’ll tell you what you have, what you should have and what it’ll cost you to obtain our services.”

Follow-up Questions

Mr. Walter was asked to share some of the follow-up questions he’s received from clients in the past.

“Sometimes, prospective clients want to know who we’ve worked for,” he said. “And we’re always glad to share that with them.”

(Note: Click here for client reviews and videos.)

“Some prospects also want to know how long we’ve been doing this. We’re proud to say we’ve been helping to protect companies and find them savings for more than 40 years.”

Most Companies Have A Problem

Mr. Walter is clear about the reason most companies reach out to American Risk Managers.

“Obviously, most people who call us have a problem,” he said. “Or they’ve perceived that they have a problem.

“And usually, clients we sign on do have real problems or areas they’re feeling unsure about.”

Asked to elaborate, he provided an example.

“Well, they could think their agent is just not paying enough attention,” he said.

“A lot of times, when you have a long-term relationship with your agent — the agent is like anybody else — they’re not going to do any more work that they have to.

“Your agent may very well only look at your file when he prepares the invoice to you.”

He also said companies sometimes have claims that “have suddenly jumped out” at them.

Or they’ve been cancelled by their insurance company.

Some clients have received high insurance audit bills.

Or experienced huge increases in premiums.

“There’s just any number of things,” he noted.

(See Common Risk Management Issues here.)

Can You Do Anything About My Insurance Costs Going Up?

Yes. American Risk Managers has a track record of obtaining 25-35% savings for their clients. For companies without Risk Managers, those figures might seem surprising.

“Anytime you’re with an insurance company or an insurance agent, and you don’t bid out the account every three-to-four years, you can know this,” he said. “That price will go up. It’s not going to come down.

“Not unless you get a professional involved to bid out those policies. There has to be competition or they just won’t drop the cost.”

From Insecurity To Certainty

Mr. Walter said there are many instances where clients have had “a kind of a feeling of insecurity” in dealing with their insurance program.

“We take people from a feeling of insecurity — until they have a full range of understanding of their insurance program and how it works,” he said.

“And that’s a big thing. That’s what we’ve been doing for 40 years.

“There’s nothing magic to this. There’s a lot of hard work, but there’s nothing magic.

A Win-Win Situation

Mr. Walter emphasized that American Risk Managers’ Cost Benefit Survey does not cost companies anything — it’s a truly free service.

“If you look at it from that standpoint, it’s a win-win situation,” he said.

“You get an expert-eyed look at your insurance and risk programs. And if you don’t want to follow through, you don’t have to.

“But if you do decide to move ahead, you most likely have a reason. And it’s not going to cost you anything to find out.”

A Built-In Guarantee

American Risk Managers has always offered its clients an unbeatable guarantee.

“In our contract with you, we give you an assurance that if we don’t save you the amount of money we charge you in our fee, we have to adjust our fee downward,” he said.

“So you’re going to save more than our fee, or we’ll adjust our fee to the savings that you have.”

That’s A Lot Of Work For Free. Why?

Mr. Walter explained that FREE Cost Benefit Surveys often act as sales vehicles.

“To us, it’s an opportunity to explain to you why you need us,” he said.

“Or, in case we find out you don’t need us — if you don’t need Risk Management help — we’ll tell you that.

“But normally, it’s a way for us to explain to you what your problem is and the assistance we can offer.

“And when you finish that, if you want to buy – you buy.

“And if you don’t – you don’t.”

He said most companies, after examining their surveys, decide to sign up with our consulting services.

“We have enough people who make that decision to purchase, that we can do this,” he said. “We can offer this particular service for free.”

What’s The Dollar Value Of This FREE Survey?

Since every company and every insurance program is unique, so is every Cost Benefit Survey.

“We really can’t put a price on it,” he said. “They’re all different.

“But we encourage you to take advantage of this. And it’s only after you look at the survey, that you decide whether or not you want to buy.

“There is absolutely no cost involved or obligation on your part until you look at it and tell us, ‘Okay, let’s do it.’

“The clock doesn’t start until we sign the contract. Anything we do for you up until then is absolutely free — gratis.”

It’s A Rather Simple Thing

If you’re thinking about signing up for a free insurance and risk survey, Mr. Walter emphasized that the process is simple.

“The simpler you keep it, the better,” he said. “And people like the word ‘free.’ Everybody does.”

He noted that prospective clients can call (800) 548-0117 for more information on the free surveys or Risk Management Services.

“If you have any interest, either I, or someone else here at the office, will be glad to discuss this further with you,” he said.

Why Not Schedule YOUR Free Survey Today?

 American Risk Managers
Risk Management That Pays for Itself in Lower Premiums
www.Amerisk.org  1 (800) 548-0117  Advisor@Amerisk.org
Serving Alabama, Mississippi, Tennessee, Louisiana & Arkansas

 

(Photo Credit: Artwork – Canva; Flag – Pexels)

RISK EDUCATION—It’s October and if you have children, they’re probably getting excited about Halloween.

They’re deciding on what costume to wear. Or as it’s sometimes phrased, “Who are you going to BE for Halloween?

“Besides all the fun, there’s also a goal in mind. Candy.

Children take a risk that they’ll get some candy when they knock on that door.

Some risks are worth taking.

 

Adults who skydive take a risk every time they jump out of a plane.

But they enjoy the ride, the epic view and the rush of adrenalin.

To them, skydiving is a risk worth taking.

 

Business owners work hard developing a product or service and then do their best to market it, so they can stay in business and make a living.

A major expense for businesses is insurance. And insurance is expensive. Insurance costs are usually among the top three expenses — right up there with payroll and supplies.

Not having insurance is not a risk worth taking.

 

You have to have insurance — and there’s not anything business owners can do about it.

OR is there?

What if I told you there was a way to “have your cake and eat it, too.”

To have insurance coverage, but not pay as much as you’re paying right now.

And to actually IMPROVE your coverage in the process.

Is that a risk worth taking?

 

A Movement To Know More

About half a century ago, a few business owners began to feel differently about paying all those insurance costs.

They wanted to have more knowledge about specific coverages and some of the other ins-and-outs of the insurance business.

They didn’t want to “just” renew every year and sign on the dotted line.

They didn’t want to hear that costs had “just” gone up and there was nothing that could be done about it.

They wanted more.

They wanted answers.

They wanted to know why…

• WHY they needed a specific amount of umbrella coverage.

• WHY their automobile policies needed to include certain limits.

• WHY deductibles of a certain amount were a good idea for one type of policy, but never another type of policy.

So, a few of these business owners studied deeply on the subject of insurance and became experts themselves.

They began to serve as specialists who could figure out exactly what they were getting with an insurance policy and what they weren’t getting.

And instead of having a business owner sit across from his insurance agent and just sign papers and hand over a check, these experts SAT BESIDE THE BUSINESS OWNER.

These experts explained the coverages in detail.

• They helped the business owner identify risks and exposures and then matched policies to their needs.

• They promoted the idea that coverages could/would/should be customized.

• And they made it clear they were no longer interested in paying for “one size fits all” insurance policies.

These Risk Experts helped to reduce risks.

 

And then another type of magic happened.

These experts began demanding lower prices and lower rates for the businesses they were assisting. And they had the gall (gasp) to shop around and even switch agents, if necessary.

Remarkably, as agents started to have to compete against each other, some insurance companies were able to find some “wiggle-room” and dropped their costs considerably.

These Risk Experts changed how the insurance game was played.

 

Unfortunately, some businesses still remain unaware of these extraordinary “middle-men.” Some owners/managers continue:

• To JUST renew.

• To JUST sign on the dotted line.

• To JUST hand over a sizeable check without further consideration.

Okay… enough mystery and drama (even if it’s spell-binding October). WHO are these Risk Experts and Specialists?

Today, they’re known as Risk Managers.

But… since nobody seems to like talking about insurance, Risk Managers remain one of the industry’s best-kept secrets.

We’re here to spread the word.

Hiring a Risk Manager is definitely a risk worth taking.

 

Besides the actions already mentioned, Risk Managers perform a multitude of services for their clients. (You can read about common issues here.)

Most importantly, Risk Managers:

• Make sure your business is fully covered;

• Make sure you are personally protected; and

• Make sure you’re getting the best insurance pricing available.
  
  

Switching Sides

Our founder, Walter Haney, Sr., was among the first pioneers of the field of Risk Management.

Mr. Walter was once an insurance agent himself. But he felt so strongly about becoming an advocate for businesses, he moved from the selling side of the table to the owners/managers’ side to offer his advice and expertise.

Forty-three years later, he continues to thrive on helping businesses obtain the best coverages to match their exposures — while saving them money on insurance costs.

Mr. Walter averages 25-35% savings for his clients, although some companies have seen remarkably higher savings amounts.

 

No Tricks. Only Treats — And A Lot Of Hard Work, Dedication And Experience.

 

Why not call today to set up a FREE Cost Benefit Survey to see what type of savings your company can expect?

You can click here and fill out a form to be contacted via email or call us now at (800) 548-0117 to learn more about the no-obligation survey process.

A No-Obligation FREE Cost Benefit Survey Is Certainly A Risk Worth Taking.

American Risk Managers
Risk Management That Pays for Itself in Lower Premiums
www.Amerisk.org  1 (800) 548-0117  Advisor@Amerisk.org
Serving Alabama, Mississippi, Tennessee, Louisiana & Arkansas

 

(Photo Credits: Jack O Lantern – Ylanite Koppens/Pexels; Trick R Treater/Pixabay.)

RISK EDUCATION—If you have workers out in the field, your company is now responsible for posting location information in case of emergencies.

Effective today (Monday, July 15, 2019), an update of Occupational Safety and Health Administration (OSHA) regulations requires companies operating in areas without Enhanced 911 to post location-identifying information in a readily-available spot.

Construction sites and other areas where workers would be calling for assistance from cell phones, instead of landlines, should post the location’s  latitude and longitude or other easily-identifiable and precise information.

Most construction sites have bulletin boards for posting information and this location would comply with the OSHA update.

An additional safety consideration could be providing employees with the required information ahead of time as an email or text message that could be easily accessible at any time and then changed as worksites are moved.

Your company’s safety programs should be updated to include compliance with this new regulation. Your Safety Director may also have other ideas to ensure that injured employees are not delayed treatment by 911 services.

A local 911 Director applauded OSHA’s safety efforts on behalf of off-site workers and noted, “Anything that will help emergency services locate you is most welcome. I hope it becomes standard for all industry to increase awareness of location and surroundings.”

Remote Construction Sites May Not Yet Have A 911 Address. Make Sure Your Employees Know Their Exact Location In Case Of Emergency.

What’s Enhanced 911?

Although there are still a few places (mostly very rural) in the United States without 911 services, other areas fall into two categories.

Areas with Basic 911 depend upon the caller to provide an address or location.

Areas with Enhanced 911 display exact geographical locations from landlines and wireless phones.

The ability to dial 911 from your home or office phone and be connected immediately to a dispatcher and have your address show up on a computer screen has helped to save countless lives.

But the wireless community is still catching up. Not all carriers have yet improved their technology enough to allow for automatic location listings.

This will change.

The Federal Communications Commission (FCC) is requiring all wireless carriers to implement Enhanced 911.

And although participation is still not 100 percent, OSHA’s new regulation will help to fill the safety gap until the FCC’s plan becomes a reality.

VoIP Considerations

Please note that businesses using VoIP (Portable interconnected Voice over Internet Protocol) services should address the location issues that are possible with these types of devices. The FCC offers detailed instructions at VoIP and 911 Service.

Old Regulation Has Been Updated

OSHA’s Medical Services And First Aid regulations have long required businesses to provide communications systems and/or transportation for employees in emergencies. Initially, businesses were required to post phone numbers for physicians, hospitals and ambulances in areas where 911 was not available.

OSHA is not discontinuing any of the above requirements, but is adding to them with the new regulation for employers to post or provide site locations for those working in remote areas without Enhanced 911.

Avoid Delaying Assistance & Violations

Accidents in the workplace create enough turmoil on their own without frantic co-workers being unable to call for help in a hurry.

Make sure you post exact location information in a central position. And why not consider other ways to provide it for employees, so it’s always readily available?

Hopefully, your work crews won’t need it. But if they do, they’ll get help faster and you’ll protect your company from an OSHA violation.

More Safety Tips For Your Business Can Be Found Here.

 American Risk Managers
Risk Management That Pays for Itself in Lower Premiums
www.Amerisk.org  1 (800) 548-0117  Advisor@Amerisk.org
Serving Alabama, Mississippi, Tennessee, Louisiana & Arkansas

(News Credits: Reported In Advisen Digest Front Page News On Friday, July 12, 2019; Reported In EHS Today’s “OSHA Issues Standards Improvement Final Rule” By David Sparkman On July 11, 2019; And Published In The Federal Register’s “Standards Improvement Project-Phase IV” On May 14, 2019.)

(Photo Credits: Pixabay)

Risk Education—If you do a Google search for “Myth,” several of the definitions that pop up include gentle phrases, such as “a widely held, but false belief or idea,” “fallacy,” “fabrication,” and “untruth.”

You probably won’t be surprised to see stronger terms like “lie” and “fake news.”

You might possibly disagree with the characterization of “alternative fact.” (I know I did.)

But no matter how you define “Myth,” when you’re talking about the protection of your business, and the thousands of dollars (or hundreds of thousands) you pay out each year for insurance coverage—there’s no room for mistaken beliefs of any kind. You deserve to know the truth.

Here are several “all-too-common” Commercial Insurance Myths—BUSTED by Risk Managers from American Risk Managers, Inc.

1) If You Have Commercial Insurance, Your Business Is Covered For Any Type Of Loss.

Unfortunately, this is not correct. You could have dangerous gaps in your coverage and not be aware of this until you have a denied claim.

You are most certainly an expert in your business field. But you probably don’t have enough knowledge of insurance terms and terminology to ensure that you’ve obtained the correct coverages and set sufficient limits.

And what about conditions, limitations and exclusions? Don’t let the fine print undermine your attempts to safeguard your company from risk.

Have an Independent Risk Management Consultant design an insurance program to fit your company’s specific needs. That’s the best way to protect your business and its assets. (And save money at the same time.)

2) You Can’t Do Anything About Your Workers’ Compensation Insurance Costs.

Untrue. Yes, you are required to have Workers’ Compensation Insurance according to your state’s guidelines.

But there are still several things you can do to help keep your Workers’ Compensation costs as low as possible.

These include:

• Promote safety and keep your losses (claims) down. Your premiums are set according to a formula that compares your business and its losses to similar types of businesses and their losses.
  
• Double-check your payroll amounts and ensure that all figures are reported accurately.
  
• Double-check the classification codes for your employees. You shouldn’t be paying the same amount for office employees as you do for truck drivers.

3) The Workers’ Compensation Premium Amount You Are Paying Is Not Subject To Change.

Woe unto the company that is surprised by an insurance audit and has their Workers’ Compensation premium costs doubled.

Unfortunately, this happens too often. Sometimes, there are errors made by the company. But in other instances, errors can be made by the auditors.

You are paying an “estimated” amount based on payroll, classification codes and a mysterious Modification Factor.

Get a Risk Manager involved to make sure your audit has no mistakes and your reporting was done correctly. Far too frequently, our staff finds numerous Workers’ Compensation inaccuracies. (And sometimes, a premium audit increase can even be turned into a refund.)

4) You Need To Buy Insurance To Cover The Complete Cost Of Replacing Expensive Assembly-Line Machinery.

Yes, you do need insurance. But no, you don’t need excessive coverages…

For example, if you have five $1 million machines on your production lines, you may think you need $5 million worth of insurance coverage. (This writer did… until her boss set her straight.)

In reality, you could obtain a type of Blanket Policy to cover these machines at a much lower rate than the one you’d pay for regular Property Coverages.

This is another area where a Risk Management Professional can help you save MORE than enough money to cover their fees.

And if your company is big enough to have million dollar machines, your policies probably run in the hundreds-of-thousands-of-dollars-range.

Our Risk Managers usually find at least 25-35% savings for clients of this size. (I’ll let you do the math on that.)

5) I Can Use Higher Deductibles To Help Buy More Insurance Coverage.

Not necessarily. You’ve heard the saying, “Don’t bite off more than you can chew.” That’s certainly an appropriate phrase to describe the dangers of setting deductibles too high.

There are many factors that need to be taken into account when determining appropriate levels of deductibles.

These include:

• The services or products you produce;
  
• The number of employees; and
  
• Overall company size (and sales).

You also need to consider:

• The size of your insurance premiums. (Small deductible changes won’t make much of a difference if you have huge premiums.)
  
• The number of losses you’ve had in the last several years. (If your losses are low, then your deductible amount is a type of “self-insurance.”)
  
• Can you afford to pay out if/when a claim occurs? (Deductible funds must be readily available without putting a strain on your company’s regular cash flow.)

Deductibles are a “mixed bag” when it comes to best policies. Again, here’s a situation where your Independent Risk Management Consultant can help save you a bundle of money OR help save you from a huge and painful blow to your bottom line.

You have multiple policies covering your company—General Liability, Business Interruption, Fleet Coverage, Directors’ & Officers’ Liability, Umbrella Policies, and many more.

Some of your policies should not have deductibles at all.

On the other hand, if you have very low losses and very high premiums, you may be able to save a lot of money on certain deductibles.

But how do you know if these are the same policies that you shouldn’t apply deductibles to?

You need to get an expert opinion. Risk Managers can work with your Insurance Company to negotiate deductibles (and rates and premiums).

And if you do save some money, buying more of the same type of insurance with your deductible savings may not be the best bet.

If you’re already adequately covered, those funds might be better used in another area of your business or to obtain coverages you don’t have yet.

A Risk Manager will check the exposures present in your business and advise you on coverages needed to fill-out your current insurance program.

6) The Company That Is Doing Some Sub-Contracting For Our Business Is Covered By Their Own Insurance, So Our Company Is Safe.

Not good enough. You still need to protect your company against loss EVEN IF the third-party or outside contractor working on your company’s behalf has insurance.

Any outside parties doing work anywhere for your company—on your premises or elsewhere—should first sign a contract absolving your company of any responsibility for negligence or accidents.

These types of contracts should be carefully worded (get your Risk Manager to check the language) and then signed and dated before any work begins.

Other protective steps include:

• Alert the subcontractor to the amount of insurance needed to do business with your company. (For example, $1 million. If they only have $500,000, they’ll have to obtain more insurance.)
  
• Have the subcontractor provide you with the Certificate of Insurance proving they have the adequate coverage limits.
  
• Have the subcontractor add your company as an “Additional Insured” on their insurance program.

7) The Big Print Gives It To You And The Little Print Takes It Away.

False. Insurance Policies are contracts—no matter the print size—designed to meet future obligations on your behalf.

These types of contracts must also be drawn up so as to pass rigorous reviews from various regulatory departments.

Insurance Contracts are also based on actuarial tables. These tables tell underwriters not only the likely number of claims that will occur, but also the severity per occurrence and the overall total severity.

Pricing is then established to meet company expenses, distribution costs and funds to pay anticipated losses. The pricing of competitors is also taken into account.

When making decisions on your options, you need the help of someone who understands the Insurance Marketplace and who is trustworthy.

Risk Managers can walk you through the maze of contract legalese so that you can understand your options and pick the most fitting policy.

8) I’ve Been With The Same Insurance Company For Years. I Even Play Golf With My Agent. So, I Am Sure That They Are Getting Me The Best Prices.

Regardless of how dear you feel your friendship is, business is business. Would you expect your friend to lose money by doing business with you?

Plus, no matter how good your friendly agent may be at finding you the lowest cost for insurance from THEIR company, a Risk Manager is going to bid out your account to SEVERAL different insurance agents and brokers.

Your agent can certainly be included in this bid process. Original agents seem to compete well against others. In our experience, they retain the accounts 50% of the time.

These original agents are usually able to obtain some extra savings through their brokers and companies to help them quote lower rates and premiums.

And the other half of the time—lower rates and more savings were found through different companies, brokers and agents.

Either way, you and your company benefit.

Fairytales, Fables and Myths all have their places—just not in your Commercial Insurance program and budget.

More Myth-Busting Advice Is Just A Phone Call Away!

American Risk Managers
Risk Management That Pays for Itself in Lower Premiums
www.Amerisk.org  1 (800) 548-0117  Advisor@Amerisk.org
Serving Alabama, Mississippi, Tennessee, Louisiana & Arkansas

 

(Photo Credit: Vladislav Reshetnyak/Pexels.)