Utilizing Risk Management Services to Reduce your Business’ Premium
Armed with a little insurance and risk management know-how, your business can realize significant savings. These risk management tips are a great start for any business owner who is curious about starting the risk management planning process.
- Budget for Insurance Price Fluctuations
A key goal of any good risk management plan is to be aware that the insurance market is cyclical. If prices have been flat or dropping for a few years, they will go up again. Plan for it by budgeting at the top end of the market.
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- Keep your Company’s Loss Ratio Low
A loss ratio is the premium paid divided by the cost of claims incurred. A low loss ratio will make your company attractive to insurers, resulting in them competing for your business. This competition leads to your business being offered lower premiums.
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- Become a Coveted Account to Insurers
Insurance companies will choose to cover the businesses they feel would be the least risky to insure. It is important to prove to them you are one of the safer choices. Hence the need to manage your risk. Hayes, Utley & Hedgspeth can help with this by supplying a customized risk management plan, which can show our carriers exactly how you avoid & minimize risk.
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- Choose Deductibles that Result in the Optimal Cost of Risk
The general principle is: the higher the deductible, the lower the premium. By analyzing past losses in conjunction with insurance premium quotes for different deductible options, it becomes clear which deductible is best.
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- Make Sure your Property Values & Policy Limits are Accurate & Up to Date
Get a professional appraisal of your property values. Accurate values and limits mean you are adequately covered, and ensure that you aren’t paying an excessive amount.
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- Annually Review your Coverages
Work with your insurance broker/agent to make sure you have all the coverages you need without paying for bells and whistles you don’t want.
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- Make Payments on Time
You don’t want a cancellation due to “nonpayment of premium” on your record.
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- Utilize your Insurance Broker/Agent’s Services
Most businesses do not fully utilize the services of their broker or agent. Ask them what services they can provide in addition to the ones you already receive. At Hayes, Utley & Hedgspeth, we offer multiple levels of risk management planning & services. Are you aware of what your broker/agent offers?
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- Report All Claims to your Broker or Agent Promptly
They will advise you of your rights and obligations. Failing to give prompt notice may result in denial of the claim.
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- Just Ask!
Simply ask what you can do to lower your premium. Things like installing a burglar alarm or sprinkler system could reduce your premium. Often if you ask, the insurance broker/agent will be happy to tell you what is used to develop the premium, therefore helping you control your insurance costs.
Insurance and claims represent a large percentage of a business’ expenses but it is an area most business people know very little about. With some simple risk management planning many businesses can realize significant savings.
If you have any questions about this topic, feel free to contact Glen Hedgspeth, one of our Risk Management experts.
From time to time, you may have noticed the Keystone Insurers Group logo alongside Hayes, Utley & Hedgspeth’s logo. If you are wondering to yourself who in the world is Keystone, then wonder no more.
Who/What is Keystone?
Keystone Insurance Group has provided an opportunity for highly successful agencies all across the nation to join forces and become part of one larger elite network with greater resources, more bargaining power and significantly more clout in the Insurance world. The standards required to become a partner are difficult to obtain. So we were honored when Hayes, Utley & Hedgspeth was chosen to become a member of Keystone early last year.
How Does Keystone Benefit our Customers?
Being part of the Keystone Network benefits all of our customers but especially our Business Insurance customers. Here’s just a few ways:
- We’ve got more companies willing to insure your business than any other agency. Simply put, competition drives down price.
- We have access to full time risk managers to help you properly handle any situation regardless of how difficult or unique it is.
- If you have concerns about employee safety, absenteeism, or problems with OSHA, we have people who can help.
- We have a full time employee benefits staff just waiting to work with you.
- If you have a large or difficult claim, we have a claims specialist that works for me and you, not the insurance company.
- We have access to experts in all sorts of areas including executive benefits, complex life insurance needs, key person insurance, & buy-sell agreements just to name a few.
- Lastly, we have over 200 of the best partners/agencies in the country. You can’t have a business problem one of our partners hasn’t already figured out how to solve.
Becoming a member of Keystone now makes us a partner of the 6th largest agency in the country. We are able to acquire the many benefits and resources of a larger agency, yet we are still able to remain completely independent and continue giving the personal service we have been known for since 1954. Contact us for more information.
A quick poll around our office shows that over half our staff has seen at least one deer while driving in the past month. So, we thought it was time to post a few tips to help you avoid a costly animal-related accident.
Defensive Driving Tips to Avoid Hitting a Deer
- Be on high alert from sunset to midnight & during the hours shortly before and after sunrise. These are the highest risk times for deer-vehicle collisions.
- Deer seldom run alone. If you see one deer, be on the lookout for others nearby.
- Use your high beams at night when there is no oncoming traffic. High beams will illuminate the eyes of any deer on or near the road.
- If you see a deer, slow down & blow your horn with one long blast to frighten the deer away.
- Brake firmly when you notice a deer in or near your path, but stay in your lane. Many serious crashes occur when drivers swerve to avoid a deer & hit another vehicle or lose control of their cars.
- Always wear your seat belt. Most people injured in car/deer crashes were not wearing their seat belt.
- Do not rely on devices such as deer whistles, deer fences or relectors to deter deer. These devices have not been proven to reduce deer-vehicle collisions.
If your car does strike a deer, do not touch the animal. A frightened & wounded deer can hurt you & further injure itself. The best procedure is to get your car off the road, if possible, and call the police.
Contact your insurance agent or company to report any damage to your vehicle. The good news is collision with an animal is covered under the comprehensive portion of your auto insurance policy.
If you have a plane, there may be a few ways you can reduce your rates that you may not know about. Of course, it depends on which company you are insured under but a few methods are:
- Obtaining an instrument rating
- Keeping your aircraft in an enclosed hangar
- Participating in a pilot proficiency program (for example, the FAA’s Wings program)
- Increasing your flight time
- Maintaining a claim-free status for a certain period of time
- Tweak your coverage during the month(s) you know you won’t be flying (for example, if you don’t plan on flying all winter call us to see if your coverage can be reduced to storage only)
Want to find out if any of the above methods would help your rates? Contact our aviation advisor Mike Sherrard.
New Year, New Law
The law actually went into effect back in July of 2010, but as of January 1st, 2011, police will stop giving out warnings and start writing tickets.
Here are the details:
- The fine is $25 for the first offense.
- $50 for additional offenses.
- If you are under the age of 18, it’s not just texting you will need to stop. It’s now illegal for minors to talk on the phone while driving as well.
As of last Saturday, police are out patrolling and enforcing the law in areas all across the Commonwealth of Kentucky. But don’t fall prey to the mindset that if they don’t see you, you won’t get caught. Drivers should keep in mind that for certain circumstances phone records can be pulled – say for a major wreck.
From all of us at Hayes, Utley & Hedgspeth – drive safe and happy 2011!
Need to update your policy or get a quote for car insurance? Contact us today or get a quote now.
