The Insurance Process

By Debbie George, CPCU, CIC

Once a year, the dreaded task of renewing your property and casualty insurance coverage returns. By following these simple guidelines, you can obtain the most comprehensive and competitive insurance coverage available.

• Allow yourself 60-90 days for the quoting process.
Most insurance companies require a minimum of 30 days after an application is received in their office to provide a quotation. By beginning to work on the insurance process 60 to 90 days in advance, you will allow ample time for the agent to gather the necessary information, the company to loss control your operations and the agent to negotiate with the company for coverage and price. You can request that you receive all quotations a minimum of two weeks prior to your effective date to give you the necessary time to review all quotations, ask
questions, make changes, compare and make a good decision.

• Select an agent that is familiar with your industry.
Insurance agents must negotiate with their insurance companies to obtain the best coverage and most competitive price for their clients. An agent that is familiar with your industry can present information to their underwriter to raise their comfort level with your account. An underwriter that feels more comfortable about a risk is usually more willing to allow credits to reduce your premiums.

• Have updated loss information available.
When evaluating a risk, all insurance companies want to see the loss history of the company for the last four to five years. Currently, valued loss runs are available from all insurance companies and are very easy to obtain. You can request company loss runs from your current agent or, if you have changed agents, directly from the insurance company that wrote your business that year. By keeping these loss runs on file, you never have to guess when an accident occurred. Loss runs should be obtained every year at the expiration of your policies and become a part of your permanent records. Even if you have not had any losses, the loss runs should be obtained as documentation.

• Have current driver information available.
Due to the inherent nature of a concrete pumper’s operations, all insurance companies will want to review the driving records of the drivers/operators. The company will require the name, date of birth, driver’s license number and state of licensing for each driver/operator.

• Review coverages, forms and exclusions with your agent.
The coverages, forms and exclusions offered may vary among insurance companies. Make sure that the program presented to you includes the necessary endorsements to meet the requirements of the many contracts your company is involved with. Ask your agent if there are any additional exclusions other than those included in the standard forms, as some companies will add exclusions for residential work. Concrete pump trucks are specialized equipment; work with an agent familiar with the industry to be sure the proper coverages are provided.

• Know the A.M. Best rating of the insurance carrier.
A.M. Best Company is a full service credit rating organization dedicated to serving the insurance industry. A. M. Best’s products, reports and ratings are the industry standard for reliable, accurate and comprehensive information about insurance organizations operating in the U.S. A.M. Best monitors and updates the ratings by regularly analyzing the insurance company’s creditworthiness. They continually monitor current developments (i.e., financial statements, public documents, news events) to evaluate the potential impact on a company’s rating. Significant developments can result in a modification of the rating or outlook. Discuss the A.M. Best rating of the insurance company with your agent and ask to be advised immediately of any developments that may affect the company’s rating. Most general contractors require that the A.M. Best rating of the insurance companies providing coverage for their subcontractors be a minimum of A- VIII or better. A downgrade, which results in the rating of an insurance company falling below the acceptable standard, can negatively affect your business. General contractors will no longer accept your certificates of insurance, which will prevent you from pumping concrete. In addition, if an insurance company is downgraded, you may be forced to obtain insurance quickly, which may result in more restrictive coverage and higher premiums.

At your next renewal, why not obtain a quotation from Pumpro, the ACPA endorsed insurance program, through Norman-Spencer Agency. For more information call or email Debbie George at (937) 432-3505 or debbiegeorge[at]norman-spencer[dot]com or visit our website at www.norman-spencer.com.