Frequently asked questions
Did you know there are specialty insurance carriers that have put together package policies that will include all of your necessary coverages, including general liability, property insurance, and even auto coverage under one policy? Did you know that by doing so, you can save significantly on your premium?
Tip: Find an agent who specializes in restoration contractors so you can be certain you are aware of new insurance programs that may be available to your company.
Written Policies and Procedures
Written policies and procedures can help you reduce your premiums as well. Knowing how your company will respond to various situations with written documentation is a vital, often over-looked aspect that will lower your premiums.
Also, documented training procedures will help the underwriter feel comfortable with what employees are doing on the job and how they are being trained.
Tip: Provide a copy to your agent so that it can be properly discussed with an underwriter.
Providing written resumes of the owners and key employees is another way to save money. Your employees have the know-how and experience; however, your underwriter isn’t aware of their expertise. The ability to show management experience within the company will make insurance companies more comfortable with the risk that your company presents.
Even for a well-established company, providing employee experience is still a great tool because of employee turnover. Consistently showing an underwriter that you have qualified individuals in your top positions will quickly translate into premium savings.
Tip: Provide written resumes showing employee experience to your agent.
Providing a claims history showing that you have been without claims will greatly assist in decreasing your premiums. Especially for companies that have been in business for more than 5 years.
Here is the part that is often over-looked, though: most companies are going to have claims, and your ability to provide a written explanation of the claim along with your company’s response to avoid future claims is just as important.
Tip: Provide a claims history and written explanation of any prior claims.
Every company takes steps to avoid claims; however, very few of them document their procedures to demonstrate what they are specifically doing to prevent them.
The trick is to make sure those procedures are recorded in a clear, concise fashion that will help put your company in a better light. Your agent can help you discover additional areas where you and your company have taken steps to avoid risk and didn’t even realize it.
Tip: Find an agent that has a specialty and expertise in your industry that can point out the potential risks your company faces and the proper way to avoid them.
Know Your Property Values
Properly insuring your property is of vital importance; however, many companies will often just guess on the limits they need to cover their property.
Taking a full inventory of your property will assist you in two ways: 1. It will help you avoid overinsuring the property and overpaying on your premiums. 2. It will also help you avoid underinsuring your property, which would result in a penalty from the insurance company in the event of a claim (known as a coinsurance provision).
Tip: Take an inventory of the property owned by the company and provide it to your agent.
Keeping a log of when equipment is repaired can also help save money on your premium. Most claims involving property involve the failure of equipment that is in some type of disrepair. Showing a maintenance log to your agent will prove you are providing the necessary upkeep to your property, which can result in discounts to your company.
Tip: Provide a copy of your maintenance logs to your agent.
Understand Your Premium Basis
Knowing how your premium is calculated can help you save on premium dollars as well. Typical liability premiums are based upon 1 of 4 things: Gross Revenue, Gross Payroll, Number of Employees, or Square Footage.
Within each one of those areas, however, there are often portions that do not need to be included within the premium calculation. As you may suspect, though, the insurance company will seldom disclose where those savings can be found. So, unless you are using an agent that specializes in your type of risk, it can be very difficult to find out where you may have some hidden savings.
Tip: Use an agent that specializes in restoration contractors.
Installation and maintenance of protective safeguards such as sprinkler systems, fire alarms, and burglar alarms will also decrease your premiums, especially in buildings with high values or high occupancy.
In fact, the installation of a burglar alarm and fire suppression system can help decrease your property premiums.
Tip: Work with a qualified loss control representative and/or agent that will help guide you in the purchase of the right type of safeguard for your building.