Happy New Year or "HNY" if you are an avid acronym as my 14-year-old. Joking aside, it seems like acronyms have become part of our daily lives. Some of us drive SUVs, most of us use ATMs, and in the insurance world, we use ISO to help determine a fair premium insurance.
ISO, or Bureau of insurance services, provides insurance companies with information, products and services that help us determine your risk of property focusing on fire rate for your building and business personal property. Your insurance company may request an ISO representative to visit your business and gather information such as building construction, occupancy, operations and systems of protection against fire.
We encourage you to embrace the process as it can have an impact on your insurance premium! Let me use the story of the three little pigs to explain. Remember the fairy tale characters curly tail? They each occupied a building in different building materials: straw, sticks and bricks. And who could forget the big bad wolf, determined to destroy their buildings, contents, and even poor little occupants! While all three face the same risk, the pig in the brick house is much better than its sticks or straw neighbors
Now try to apply this story to the ISO standard. you can see how a masonry building will likely have an ISO rating different than one made of wood. Consider if the buildings were equipped with protection systems against fire, such as sprinklers, alarms, fire extinguishers, and exit markings illuminated. And operations within buildings? You can imagine a welding business poses more risk than the lease of office space. These are just some examples of items that are considered by ISO and then used by the insurance company to determine your insurance premium.
On a side note, these visits often seem to be the same object to a visit by a loss control consultant. This can be confusing until you understand the difference. Both visits are very beneficial for you, the goal of ISO is to provide insurance carriers with a rating system to help determine a fair premium for your business. The control department of the loss of a insurance company to visit a place of business, or business, identify risks or hazards that can affect the well-being of the company and its activities. In short, ISO is a universal rating system's insurance companies use to determine insurance premiums while the loss of control is a benefit to policyholders to help prevent and minimize losses .
For a better understanding of ISO, please click on the image at top of this article to watch a short video. And do not forget to contact your independent insurance agent for more information on how to prepare for a visit of ISO.
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