As a business owner, you buy insurance each year to provide protection against financial loss. However, trade policy should not be considered as a maintenance policy. The most important feature of the policy is to provide protection against serious or catastrophic claims that could jeopardize the future of your business.
Business owners should partner with their agent independence to systematically analyze their applications with emphasis on the frequency. There is an old saying among commercial insurers that "the frequency leads to gravity." Thus, if a commercial underwriter observed frequency of claims of the same type, it sends a red flag. What exactly is a subscriber looking at the loss of frequency analysis?
- is there a frequency of small losses? Please deduct many subscribers it is just a matter of time before that 'there is a great loss. This is especially true with slip and fall claims in places where heavy public traffic such as grocery stores or shopping centers.
- insurance experience indicates that the frequency is a much better predictor of the future that is gravity. Thus, an underwriter will often assume a wrong trend will continue and be reluctant to write or maintain coverage.
- are there models for losses? Same cause, same driver (s), same product, etc.
Assuming you observe loss trends, these are actions you can take to improve your experience and reduce your premiums?
- loss control . Be proactive and take common sense steps to prevent claims from occurring in the first place. This means correcting physical deficiencies on your property, such as lower running surfaces, leaking roof or buildings that need alarm systems or fences due to target content. Make sure your employees are properly trained. Make sure the products you make are properly tested. Working with the loss of your operator control department. Do not look at carrier loss control recommendations as a burden, but rather as a way to ultimately reduce your insurance premiums.
- high Franchises . There credits on your home, car, and premiums for general liability for higher deductibles. The insurer will also look at your most favorable business, as it indicates that you are now a partner with the carrier in risk management because you put more of your assets on the line.
- Work with your agent. your agent has the experience to help companies like yours deal with exposures that can jeopardize your operation. Press this expertise and let them help you improve your operation from a point of view of risk management.
Sometimes the experience is really the best teaching and learning of your losses can help you turn those bad experiences into opportunities for improvement. Talk to your agent this week on how you can improve your experience of loss and start saving money.
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