Seven Insurance Traps that Could Snare Your Store

Transcription

1 Seven Insurance Traps that Could Snare Your Store Roger Beery President Austin Consulting Group, Inc. Greenwood Village, CO

2 Trap # 1 Don t Worry About Your Renewal, Your Agent Will Take Care of You 2

3 Trap # 1 Don t Worry About Your Renewal, Your Agent Will Take Care of You Buying insurance is just like buying a car An insurance buyer s market? The insurance market is in constant flux Is one-stop insurance a thing of the past? 3

4 Trap # 2 My Renewal Will Stay the Same 4

5 Trap # 2 My Renewal Will Stay the Same The only thing that stays the same is change If you wait it s too late Premiums and rates Crime/errors and omissions limits 5

6 Trap # 2 My Renewal Will Stay the Same Coverage Forms Property and Business Interruption Cosmetic Roof Damage Deductibles Especially EPLI 6

7 Trap # 3 Loyalty is a Two-Way Street 7

8 Trap # 3 Loyalty is a Two-Way Street There is loyalty then there is blind loyalty Insurers always act in their own best interest Claims are adjusted based on policy language Not relationships or loyalty 8

9 Trap #4 - All Policies are Basically the Same 9

10 Trap #4 - All Policies are Basically the Same Basic policies are similar but there are big differences in small print - Are repair and replacement percentages the same for wind and hail as other damage? - Does business income include sale of autos? - Is identity theft covered at all? - Umbrella occurrence or aggregate? 10

11 Trap #4 - All EPLI Policies are the Same 11

12 Trap #4 - All EPLI Policies are the Same EPLI policies can have big differences - Caught in the claims-made handcuffs? - Do you have choice of counsel? - Are class action suits and suits brought by third parties covered? 12

13 Trap #4 - All EPLI Policies are the Same EPLI Policies can have big differences - Defense costs inside or outside the limit? - Class action suits and punitive damages? - Is defense for wage and hour offered? 13

14 Trap #5 Large Deductible = Large Savings 14

15 Trap #5 Large Deductible = Large Savings Are you being compensated for the risk you are assuming? Consider your loss trends - realistically Different insurers value deductibles differently Last year s best option may not be the best now 15

16 Trap #6 Loss Runs Speak for Themselves 16

17 Trap #6 Loss Runs Speak for Themselves Your premium is largely based on losses Frequent losses are worse than a large loss Check for accuracy Loss runs alone may not tell your story Explain large losses or loss trends and steps taken to improve or reduce future losses 17

18 Trap # 7 Quotes Create Competition 18

19 Trap # 7 Quotes Create Competition Only bidding creates competition Every year brings change take a look Multiple quotes give you negotiation power Cast a wide net to include many insurers 19

20 Trap # 7 Getting Free 20

21 Trap # 7 Getting Free Insurers respond to an organized bid process Bidding every year doesn t mean change Start early 90 days before expiration Commit to the process 21

22 Trap # 7 Getting Free Create your own bid specs - Using current policies can be problematic - Provide accurate underwriting data - Employee lists - Auto inventory values - Building, contents, and business interruption values 22

23 Trap # 7 Getting Free - Provide accurate underwriting data - Currently valued loss runs (90 days) - Manufacturer operating statements Agreement to use your underwriting data Make timeframes clear 23

24 Trap # 7 Getting Free Market assignments are crucial Loss control may be the key to success Allow sales reps to make presentations Create an internal bid analysis spreadsheet 24

25 Trap # 7 Getting Free Negotiate Negotiate Negotiate! 25

26 Questions? 26

27 Please visit the NADA University Online booth in the Expo Hall for information on accessing electronic versions of this slide presentation and the accompanying handout material, and to order the workshop video-recording. Seven Insurance Traps that Could Snare Your Store Roger Beery President Austin Consulting Group, Inc. Greenwood Village, CO