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Getting the Best Insurance Pricing

Thursday, October 28, 2021
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Insurance carriers get inundated with submissions from more welding & gas companies than they can handle.  The key is getting your submission to the top of the stack to standout, which means better pricing, more timely proposals (not at the last minute) and better coverage.

“Help Me, Help You!”

Jerry Maguire made that phrase famous and it’s very applicable when attempting to secure a competitive proposal from an insurance company. Nothing puts your submission in the trash can quicker than incomplete or unexplained information.  In the welding & gas industry, there are only a select number of legitimate insurance carriers. Every time a submission is sent to those carriers, they form an opinion on your company, either positive or negative.  That opinion alone could significantly cost your company thousands of dollars over the years. 

Finding the right broker partner is key in obtaining the best pricing without sacrificing coverage. You want a broker with access to all the available carriers. It is also important to partner with a broker that knows the complexity of the industry and the specific coverages a welding and gas distributor needs. Help your agent tell your story to the underwriter, ask yourself, “How is my broker selling my business to the underwriters?”

Submission Tips

The two most important things underwriters look for is insight into your operation and complete information.  Here are the most commonly overlooked items in submissions sent to insurance carriers.  If you have all or even just some of these items in your submission you will be well on your way to getting your submission to the top of the stack.

Story

  • Narrative – This is where you get to show off and share insights about your company.  Tell the underwriters what makes you a good risk and why you’re better than your competition.  Talk about your culture, what makes your business unique, describe your business mix, the awards you’ve won, the clients you are proud to have and highlight the key people in your organization. Share the key initiatives in your business. (Where you’ve been/Where you’re going) Also, spell out why you’re shopping and what you’re looking for from your next insurance carrier. 
  • Loss Summary or Loss Ratio – Summarizing what your last 5 years of loss history looks like by line of coverage.  Know if you are making the insurance carrier money or not, so that you know where you stand in negotiating leverage.  If you’re not profitable to a carrier, there’s no leverage, if you are profitable, they’ll be willing to negotiate.   If there have been losses in the past, address it.  Explain why they happened and what you’re doing to prevent it from happening again.
  • Large Loss Explanation – Explain in detail any loss with a total incurred value over $25K. State how it happened, whether or not the involved employee is still with the company, what could have been done to prevent it, what you’ve done in response and where the claim stands now (i.e.  worker on light duty, set to be fully released soon)

Complete Information

  • Loss Runs – For all lines of coverage for the last 5 years that is currently valued (run within 90 days of the coverage effective date).
  • Fleet List –In addition to the basic information, include Gross Vehicle Weights, Cost News, Garaging Location and Full VINs.  Summarize the count by category, such as Tractors, Trucks, Trailers and Private Passengers. 
  • Driver List – Including License # and the State of Residence and if possible MVR’s on all drivers.  Understand the carriers driver qualification standards.  Pre-check the MVR’s and have stories prepared for borderline drivers and take care of the drivers with poor records before submitting them to the carriers.
  • Statement of Values – The schedule showing your complete list of locations, property limits, construction, building use, square footage, year built (updates if older than 20 years), protection items installed (sprinklers, alarms, cameras, fencing, etc.)
  • Loss Control / Claims Management Efforts– Describe current programs in place such as frequency of safety meetings, driver training/qualification standards, modified duty/return to work programs, accident & claim review processes, employee screening, etc.
  • Timely – Get all of the above information to your agent 75 to 90 days before your renewal.

In closing, limit the frequency of marketing and shop your insurance for specific reasons.  Insurance underwriters put a lot of time and effort into putting a proposal together, if they feel there isn’t a good opportunity or chance for success, they might not even quote.  Save your power for when you really need it.

If you are a client already, thank you.  We invite you to participate in your submission to the carriers.  If you aren’t already a client, we invite you to give us a call to discuss how we can help build your story.

Horton’s mission is to drive down cost, work and risk for our clients.  We specialize in working with companies that have complex needs, yet limited resources, to take them to a higher level of performance.

Summary:Story

  • Narrative
  • Loss Summary
  • Large Loss Explanation

Send Complete Info Early

  • Loss Runs
  • Fleet List
  • Driver List
  • Statement of Values
  • Financials
  • Loss Control / Claims Management Efforts

Material posted on this website is for informational purposes only and does not constitute a legal opinion or medical advice. Contact your legal representative or medical professional for information specific to your legal or medical needs.

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