Hint: Premium Is A Factor, But Not Always The Most Important

Russ Davies, CPIA, CyBr – Insurance Professional – Managing Partner, Andres O’Neil & Lowe Agency

Eyes glazed over? Nervous fidgeting? Sudden interest in some document laying on their desk? All tell-tale signs that you’re losing your boss in the minutiae of insurance. Sure, the details are important, and you should be prepared to talk about them if he or she asks, but what they really want to know is:

  • Cost: Naturally an important component of the program. What had an impact on premium? Did the rate itself increase, or did the business grow?
  • Broker/Carrier Relationships: Who is underwriting and accepting your company’s risk? What is their reputation in your industry? Do they look for ways to cover claims or deny them? Why did you choose this broker to represent you in the marketplace?
  • Are You Taking Advantage of All Your Broker and Carrier Have To Offer: Brokers and carriers today offer a wide array of value added services including proactive Loss Control analysis, OSHA compliance, and Safety Culture support that are included in your annual premium.
  • Market Conditions: How is the insurance marketplace responding to current conditions? Are overall premiums being impacted by situations beyond our control?
  • What Is Our Total Cost of Risk: Consider additional cost factors outside of pure premium such as reputational damage, overtime, loss of market share, increased training, safety budgets, fines/penalties, and losses within deductibles when analyzing your total annual risk spend.
  • How Are You Controlling Cost: What methods are you using to control premiums? Does your broker have a strategy to best represent and reward you in the marketplace?
  • Uninsured Risks: Are there areas of the insurance program that have gone un-addressed? Have our operations or services/products offered changed? How is the company tackling emerging risks such as cyber or the use of drones? What risk, if left uninsured, would have a significant impact on the short and long term future of our company?

The ideal end result:

Boss: “How do you know all this?”
You: “It was our insurance broker, they shared all this information – they even offered to bring the underwriters to our office for a one-on-one, and offered all sorts of free services.”

If you’re a client at Andres O’Neil & Lowe, our goals are not just saving you money, but sharing the information you need to properly protect your business.