Archive for the ‘Business’ Category

Do you know your Risk Definitions?

If you want to manage risk within your firm, you need to familiarize yourself with riskmanagement language. Here are some basic definitions, provided by the National Alliance for Insurance Education & Research, which you can use to build your knowledge base:

  • Exposure: A situation, practice or condition that might lead to a loss; an activity
    or resource (assets, people).
  • Peril: A “cause” of loss; an event that might cause a loss.
  • Hazard: A condition within an exposure that might lead to an incident; “a peril
    about to happen.”
  • Incident: An event that disrupts normal activities and might become a loss or
    claim; “a near miss.” Lifecycle of an incident: Preincident,incident, immediate
    postincident,post incident, rehabilitation (repair, recovery).
  • Accident: An incident resulting in injury or damage to person or property which has, or will become, a loss or
    claim; “an unplanned event definite as to time and place that causes bodily injury or property damage.”
  • Occurrence: An accident with the limitation of time removed.
  • Loss: A reduction in value.
  • Claim: A demand or obligation for payment as a result of a loss.
  • Frequency: The number of times an incident occurs.
  • Severity: The monetary impact of a loss.
  • Expected losses: Loss projections (“loss pics”) based on probability distributions and statistics; frequently
    developed using actuarial techniques.

For a complimentary review of the risks your business faces, please feel free to contact us at any time.

888.697.6542

www.FittsInsurance.com

A business insurance “don’t do” list

Here’s a “don’t do” list for commercial insurance:

  1. Never hide unique or unusual risks or exposures from your agent in hopes of receiving a lower premium. A loss related to one of these hidden exposures could result in the insurance company claiming misrepresentation, a word no one—especially the policyholder—wants to hear.
  2. Never assume that your homeowners insurance policy will cover busness-related exposures.
    Any coverage that may be included is minimal—not a worthy substitute for a suitable business policy.
  3. Never underinsure your property to get a lower premium. Underinsurance will result in a lower payment from the insurance company when you need the money most—after a claim. It could also lead to costly penalties that will further reduce the amount paid.
  4. Never purchase any policy, even supplemental coverage, from an insurance company without learning that company’s financial rating. A financial rating is an indicator of that company’s solvency. You don’t want to be stuck depending on an insurance company that is on the verge of bankruptcy.

Our insurance team can help you find ways to save on your business insurance without cutting corners or creating coverage gaps. Give us a call to review your coverage or discuss savings options.

Understanding the claim payment process

An insurance adjuster is responsible for inspecting damage to a home following a claim. These individuals are also responsible for offering a specific sum of money that is to be used by the policyholder for necessary repairs. As a general rule, the first check received from the insurance company is meant as an advance toward the total amount of the settlement. It’s important to remember that it’s not the final payment. Separate checks are issued for each category of damage. Checks to cover living expenses are usually also sent separately. More

Do you read your insurance policy?

Do you read your insurance policy? While we suggest to our customers that they read their policy, fact is most people don’t. When competing for a prospective new customer we answer questions and compare and contrast different policies, however it’s nearly impossible to address every detail of the policy within the short window of opportunity we have with our prospect. An insurance policy is about as entertaining a read as the back of a shampoo bottle, so it’s not surprising that very few people read them. If you’re dead set against reading the policy, we suggest that you at least review the exclusions. Eliminated surprises. It’s far better to have exclusion related questions addressed now than at the time of a loss.

One state has gone so far as to legislate law requiring that an insured is charged with the knowledge of the terms of the policy upon which he/she relies on for protection. – See Atlas Roofing Mfg. Co. vs. Robinson & Julienne, Inc. (Miss. 1973) – Under Mississippi Law, the “knowledge of an insurance policy is imputed to an insured regardless of whether they read the policy” Oaks vs. Sellers (Miss 2007).