Petrogram - Fall 2011 - (Page 28)
Controlling Insurance Costs:
What Can Businesses Do?
ll things being equal, two businesses with virtually the same operation may pay the same premium for property, liability and workers compensation insurance—until one makes an insurance claim. That claim could result in higher insurance premiums. Seven Ways to Keep Insurance Costs Under Control These guidelines can help you keep your insurance costs under control: 1. Find a trusted insurance advisor. Select an insurance advisor who really understands your industry and your business and takes the time to properly design an insurance program. 2. Align yourself with an insurance company that specializes in your industry. Insurance carriers may enter into a market for short-term financial gain. What happens if their venture falters and they pull out? Can you easily find another carrier? At what cost? Insurance companies with a history of commitment to your industry and your association typically are in it for the long haul. Loyalty to your industry does matter. 3. Get serious about safety! Implement appropriate risk management policies and practices. Introduce an effective safety program to help prevent losses. Look for an insurance provider that makes safety and loss prevention resources available and is able to help with implementation.
Bo Orr, Federated Insurance
4. Review claims. Review your claims at least annually. Confirm accuracy and discuss any open claims or reserves. Implement practices that help prevent those claims from reoccurring. 5. Be prepared. Review coverages and services with your insurance representative at least two to three months before renewal to see if they still meet your needs. 6. Don’t buy on price alone! While price is a component, other features—coverages, safety assistance, claims services—can help contribute to significant savings over time. Lower “front-end” premiums may result in more “back-end” costs with claims that are either not covered or have limitations. 7. Consider self-insuring or partially self-insuring some risks. There are various options available to save on insurance costs and improve your loss record. Some common examples include: increasing deductibles on your policies, selecting a well-designed self-insurance program, or implementing a Workers’ Compensation Retrospective plan. ❍
This publication is intended to provide general recommendations regarding risk prevention. It is not intended to include all steps or processes necessary to adequately protect you, your business or your customers. You should always consult your personal attorney and insurance advisor for advice unique to you and your business. © 2009 Federated Mutual Insurance Company. All rights reserved.
Alpha Analytics, Inc.
An Environmental Laboratory 9645 E. Colonial Dr., Suite 114 Orlando, Florida 32817
Petroleum-related analytical specialists since 1993. www.alphaanalyticsorlando.com (407) 382-5742 NELAP Certiﬁcation #E83806
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Table of Contents for the Digital Edition of Petrogram - Fall 2011
Welcome, New Board Members
FPMA 2011 Convention and Sunshine Food & Fuel Expo!
FPMA Featured Advertiser Marketplace
Lien On Who?!
Out and About the Industry
Conference of Committees
Index of Advertisers/Advertiser.com
Petrogram - Fall 2011