LICENSE RECORDS:

Check the license records on any agent or broker you utilize. Your state insurance department may make pending or past disciplinary activity available, along with records of the companies he or she is authorized to represent. Many states now make this available online.  Go to the NAIC listings to find yours.

FINANCIAL RATINGS:

Check the financial ratings and state of domicile for any surplus lines carrier utilized and ask specifically why the carrier was used.  Best's, a leading industry financial source, now
makes ratings and data available online.


GUARANTEED COST POLICIES:

 Avoid auditable insurance policies whenever possible.


TRADE GROUP & PROFESSIONAL EMPLOYER ORGANIZATION PURCHASING PLANS:

The larger trade associations very often have the leverage to obtain business insurance products at sharply reduced rates, and some with much better insurance terms.  Many can save you enough money to more than offset the costs of membership.  "PEO's" (Professional employer organizations) are still to some extent in infancy, but represent a promising means of outsourcing the purchase and management of business insurance.


SUBROGATION WAIVERS
:

If you lease your building, the owner can provide a waiver of subrogation which prevents your being sued by his/her fire insurance company to recover payments to repair damage to the building. (When you are thought to have had responsibility.)  This is normally available at no cost and is common practice.


LARGE DEDUCTIBLES:

They can sometimes save premium dollars, but not always.  Check potential loss costs & loss frequency against dollar savings before you jump at this.

Home

Site Index