While some insurance premium increases may be inevitable, in many cases there are steps that you can take to help control cost and reduce risk. Read on for a few simple tips that can assist you and your insurance agent in receiving the best price for the coverage your organization requires.
Know what you need: Review your coverage needs and any changes that should be addressed in your next policy. You may want to add or remove some coverage depending on changes in your organization over the past year. Make note of contract provisions that your bank, landlord or operation relationships require.
Start early: 90 to 120 days prior to renewal, gather five years of claims history, 12 months of payroll and sales figures and the most recent year-end financial report. Review claims information for accuracy; if claims have been settled, make sure that information is updated on loss reports. Be sure to document any loss control methods put in place to reduce incidents in the future. Develop a system to collect certificates of insurance from all contractors, vendors, suppliers and business associates and have them available.
Work with a professional: Contact an experienced, licensed insurance professional in your area who can explain various options available to you. Together you can analyze your retention capabilities and consider higher deductibles to help reduce premium costs. Your agent can help you determine your minimum liability limits if you choose to reduce limits or if you are unable to find limits in amounts previously offered.
Be thorough: With your agent, prepare a detailed underwriting submission using the data you have collected. A well-documented submission will help the underwriting process proceed without delays. Taking the time to analyze and compare both price and coverage is to your advantage.
Know what you’re getting: Ask about the financial stability of the insurance company and review several years of A.M. Best and Standard & Poor’s ratings. You may want to ask if installment payments are offered, which can free up capital for your organization.
Review your options: After you have chosen an insurance carrier and received your policies, make sure to review and confirm that the options and premium you requested are accurately listed on your declarations page and in your policy. If there are errors, be sure to notify your agent immediately.
Keep communication lines open: As changes occur in your business throughout the year, discuss them with your agent and request coverage adjustments, preventing disputes down the road.
Make sure that you take the time to put your fitness facility in its best light and you’ll get an accurate quote designed specifically for your organization.
Cheryl Meyers is a Senior Underwriter for K&K Insurance Group, Inc. She can be reached at 877-355-0315 or Cheryl.Meyers@kandkinsurance.com.