IMPROVE YOUR INSURABILITY!

One of the things I try to do for each of my clients is to build a positive insurance profile and summary before submitting the account to an Underwriter.  Underwriters LOVE information.  They like to see details, descriptions, brochures, contracts, updates, etc.  Most importantly, they like to see an ongoing Risk Management program.  This shows the insurance company that the owner is doing everything in their power to prevent claims.  These are the companies that get the credits and have access to more insurance carriers. 

Often times, insurance carriers will offer quotes in certain industries based on their definition of “Best in Class.”  For example, they may not typically write a Waste Hauler but if they receive a detailed submission showing the things they want to see, then they will likely consider offering a very competitive quote.  Why? Because the truth is that most businesses purchase insurance in lieu of implementing proper risk management.  The ones that do implement a quality risk management program will reap insurance rewards.  Many insurance companies will request an inspection by an outside agency or send their own before deciding whether to provide a quote on something.  So, what are they looking for?

Things to make a building look better to an insurance company include:

• Hard-wired smoke detectors
• Proper handrails and fire escapes
• Child-safe window hardware
• Sidewalks free of major cracks
• Closed fire doors with proper panic hardware
• Well-lit hallways and walkways
• Following regulations for elevators and laundry rooms
• Control of all maintenance issues: Practice good maintenance–no wet floors
• Do routine repairs
• Mold eradication

Make sure your risk profile includes all safety-related improvements in the property such as any alarm systems, security cameras, addition of a doorman, improved lighting, and anything else that makes your building more appealing to an insurance underwriter who can then apply credits for the safety measures taken.

Advise your insurance broker of upgrades and repairs to your building. Upgrades to major systems such as heating, electric, and plumbing greatly improve your risk profile and can present your property better to the insurance company. This may lead to better pricing and broader terms when the insurance companies offer you quotes.  Insurance companies show their appreciation to those risks that have improved profiles and ongoing risk management by offering them lower rates and policies with broader terms.

Similar risk management principles apply to Auto Insurance, Workers Compensation, and General Liability.  Continued maintenance, proper safety restraints and trainings, quality PR and documentation, etc. will greatly improve your insurability.