Insurance That Works For You: Turning Expenses Into Partners • Risk Resources – August 2024
Insurance That Works For You: Turning Expenses Into Partners
The expense of purchasing insurance often feels like the burden of taxes- a requirement of doing business.
What would happen if we were able to convert that burden into an asset?
The conventional method of paying premiums, "hoping" that you avoid insurance claims does not take full advantage of the resources at your disposal. Instead of that approach, how about partnering with your insurance providers? Together work towards improving your entire enterprise. Suddenly you have experts that work as teammates, instead of just paying another item in the cost of doing business category.
Quality Partnerships
Strive to have your insurance partner become part of your team. When the insurance team and insured operation become partners, the dynamic can significantly change for the better. All parties have the incentive to work together towards a safer environment for employees, residents/elders, and families. Everyone benefits from better outcomes, increased quality, and lower rates.
Your insurance agency partner can be utilized as an advisor and strategic teammate in improving and maintaining quality in your organization. Some examples of what this teammate contributes include advising you on assessing risk, working with you on taking advantage of the insurance carrier’s resources, and including safety education programs and risk prevention training.
Underwriting Risk and Rates
An operation that strives to reduce risk and promotes a culture of risk reduction can potentially lead to favorable underwriting outcomes.
Risk profiles used by underwriters may be enhanced when specific risk prevention programs are implemented and effectively utilized. For instance, the implementation and effective usage of fall prevention programs can help reduce insurance costs. Ask your agent to advocate for your interests with underwriters in such cases, it may be beneficial.
Underwriters value quality indicators such as favorable claims, strong financials, leadership engagement, and cultures that prioritize safety and trust. These initiatives and partnerships, in conjunction with specific formulas, can contribute to lowering your costs. It is important to note that the ultimate underwriting decision and resulting insurance costs are determined by the underwriter, and cannot be guaranteed. However, if we actively work towards a culture of safety, loss prevention, and quality of care, we will improve our probability of realizing long-term insurance cost control and savings.
How do I keep my rates as low as possible?
The conventional approach to keeping rates as low as possible, would be to “take all bids” on an operation’s insurance policies. Some of the factors within the insurance marketplace are outside of our control. This method sometimes falls short in that there are many levels to the price of an insurance policy. With the right partners, a more strategic approach can be implemented, which provides a path towards safer operations and long term insurance cost control.
Working in partnership with your insurance team (Carrier & Agent) ensures the essential process of educating and training our organization’s stakeholders regarding safety and risk prevention. Your organizational leaders, staff, 3rd party vendors, and other stakeholders are all integral participants in the overall risk improvement of our organizations.
Take advantage of the resources available from your insurance partners. Insurance is not a commodity. The policy premium “price” and basic coverage limits are just the tip of the iceberg. With the right partner your insurance coverage expenses can be transformed into tools used to improve the quality of your entire operation.
A long-term insurance strategy that is built around trust, communication, and teamwork initiatives can result in cost improvement and stability. Working together as partners while striving to reduce risk and improve quality provides the best outcomes for both. Work smarter not harder and put your agent to work for you.
Justin Jackson
Agency Manager
Cell: (601) 519-7692
Direct: (601) 499-5401
justin@hrsins.com