Greetings from your agents at Chesterfield Insurers! We all hope you are having a safe and enjoyable summer. Time spent with family at this time of year is important and we want you to make the most of it.
I wanted to take a moment to talk about losses and the impact they have on insurance premiums. When you purchase an insurance policy it is rated based on the nature of your business, how busy you are and the likelihood of losses. Policy holders that have no losses generally see increases only based on changes to the policy. A simple loss or two that are not large generally do not have an impact on your future premiums.
It is usually only when the carrier sees a problem with claims being filed frequently or if you have multiple large claims do you see negative impacts on your premiums. True, insurance is there to cover the “what ifs,” but when underwriters generate premiums, they are done based on the market norms. So, the goal is always to be within what is normal for your particular risk.
What can you do to avoid these negative impacts? The best way to avoid issues is through loss control efforts within your organization. Make sure your SOPs are up to date and on point. Make sure your drivers are qualified to operate your apparatus. Assure that all members are aware of the policies in place and always follow them. When I served on the local school board years ago, an attorney always told us “1. Have a policy; 2. Know your policy & 3. Follow your policy.” This does not mean you can always avoid negative situations, but it puts you in the best position to avoid those situations.
The ESIP.Com web site has many suggestions on helping with loss control. You will also find a library of sample polices to help with most situations. If you do not see a sample policy that addresses your concern, let us know and we will help you draft one. The online learning library is also an invaluable resource for addressing situations that may help avoid claims. You can also use the classes for remediation if someone is responsible for a claim you encounter.
Rest assured; we are all here to help you carry out your mission to your community. And we always want you to be able to do that with the assurance you have the most comprehensive coverage for your agency and members. We also want to make sure that coverage has the most minimal impact on your budget.
Thans for all you do. Stays safe!