Services | Diagnostic Insurance Coverage Review

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Diagnostic Insurance Coverage Review

This service is designed to be conducted within as little time as five business days, so that risk managers and business owners can have a "just in time" strategy to prepare them for their renewals.  It also has proven to be a popular set up study for putting customers' insurance out for competitive bidding.

You should consider this service if you:

  • Don't have qualified staff to carefully review your policies each year.
  • Are thinking about making a change in brokers or insurance companies.
  • Haven't had your program reviewed by an independent consultant in the past three years.
  • Experienced an unexpected change in insurance premiums on last year's renewal.
  • Had a claim denied by the insurance carrier - a claim you thought should have been covered.
  • Expanded your business or changed your operations and need to re-think your insurance strategy.
  • Think you may have been victimized by over-pricing and unethical business practices.

Key Benefits

  • Correction of errors & omissions in the placement of your coverage
  • Avoidance of uninsured or under-insured claims
  • Finding out how your cost of insurance, retained losses and other risk management expenditures compares to other organizations
  • Identifying targets of opportunity for risk management improvement and cost savings

The scope includes five steps:

  1. Gaining an understanding of your exposures, starting with a discussion in your office, and continuing with a review of available information about your people, products/services and facilities.
  2. Reading every line of each insurance policy to determine whether your insurance agent has inadvertently failed to properly cover insurable exposures – and to determine whether you have accepted any undesirable insurance policy provisions.
  3. Analyzing your workers compensation and liability loss runs and conferring with you concerning any serious insurance claims.
  4. Preparing an Insurance Benchmarking Analysis that compares what you are paying for insurance and retained losses to other organizations in your industry and size category and also benchmarking your limits, deductibles and kinds of coverage purchased.
  5. Reporting our findings and recommendations for improvement – and recommending a strategy for your next renewals.

We have performed this service for most of our customers for a fixed fee of $4,500.

 

Analysis, Strategy and Advice = Solution

Problem » An owner/developer of industrial parks had never had its insurance reviewed by an independent consultant. Also, the CEO had become displeased with their insurance broker whose renewal quotes the previous year were delivered the day before expiration.

Solution » Though we did not uncover any serious omissions in their coverage, we were able to formulate a renewal stategy, which they successfully implemented with our direction nine months later.

Problem » A distributor of plumbing supplies whom we first advised twenty years ago asked us to review their program in preparation for their renewals. They had for many years bought most of their coverage from a "direct writer," i.e. negotiated directly with the company without the intermediation of an insurance broker. They wanted to be sure they were not missing anything by not having a broker.

Solution » We discovered a number of technical errors and got them corrected right away. More importantly, we made effective use of the RIMS Benchmarking Survey to illustrate to them how their insurance policy limits and deductibles compared to their peers. They learned that they did not have to forego some of the coverages that, in the past, they had found too expensive to buy. Nor did they have to self-insure as much they did.