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Shopping for insurance?

David McNamara
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CKCA by Caroline Castrucci
Caroline Castrucci is CP/Owner of Laurysen Kitchens Ltd. & President of Canadian Kitchen Cabinet Association. For more info email ccastrucci@laurysenkitchens.com

SOME ADVICE TO CONSIDER

Whether you are shopping for alternative propositions for your commercial insurance program or simply going through a renewal process with your broker, the process can often be daunting.

But you can get through this! There are four critical components to this initiative beginning with your choice of broker, the individual and office that will be your connection with the insurance community.

Your broker must know your industry and have the ability to quickly gain a profound knowledge of your organization and understand the specific challenges, which affect your business. ‘The chosen one’ must be your trusted advisor, who will represent your company with competency, credibility and accuracy. Your broker must display the passion and persistence necessary to properly represent your interests and understand the importance of sound risk management principles as purchasing insurance is not always the answer. Look for creativity and most importantly, great listening skills as your broker must keep up with changes and growth affecting your organization.

Look for someone with a service plan. View with skepticism brokers who lead with premium driven overtures.

Next is your insurance program. I challenge you to consider premium last! Prioritize the survival of your organization in the event of a claim and don’t underestimate the impact of additional expenses, which accompany most losses as the cumulative effect can be devastating. The key is to take the time to discuss these issues thoroughly with your broker who has the tools and resources to systematically cover these scenarios with you. Do this with each line of insurance. Consider the importance of a “business continuity plan,” a post loss road map to recovery, which will also serve you well when negotiating with claims professionals. Your broker will have access to experts to help you with this plan. The result will be a program specifically designed for your business as well as an ‘after loss strategy’ which together will allow you to conduct business with confidence and most importantly, sleep well at night!

You should review the submission document before it is presented to insurers. Ensure accuracy and take the opportunity to improve the effective- ness of the document by sharing your thoughts or ideas with your broker.

The third element is your choice of insurer. Your broker can facilitate insurer selection by performing a thorough insurance market review usually every three years. Insist upon options. Do not test the market yearly; insurers have little appetite for short-term business opportunities.

Concentrate upon financial solvency ratings, reputation for claims handling; flexibility and service response times. Consult your broker, other members of your industry for the right kind of feedback. Enquire about the insurers’ involvement in your industry and their ability to follow your companies’ growth and direction. Ask about inspection habits and keep an eye on in- imposed requirements or conditions before choosing. Finally request a marketing report from your broker, this will allow you to see which insurers were approached and how they responded.

The last element is - you guessed it: the cost effectiveness of the options provided. Seriously consider the well designed insurance program supported by an A (or better) rated insurer, with a reputation for good service, fair and conscientious claims handling as well as the ability to grow with you and be part of your future success. A poorly chosen carrier is guaranteed to minimize the benefit of a lower premium! Don’t hesitate to create a point system to help evaluate proposals offered. To summarize – take advantage of this process to not only secure an effective insurance program but leverage relationships with professionals who will contribute to the success of your organization. By adhering to and following these guidelines, a company can ensure a satisfactory insurance buying experience and be secure in the knowledge that they have appropriate coverage to deal with the unforeseen.

 

David McNamara, CRM, AIIC Man- ager, Ottawa Branch PBL Insurance Limited/Assurance PBL Limitée. PBL is a member of the Canada Broker Network, represented throughout Canada. The Canadian Kitchen Cabi- net Association (CKCA) is currently considering a partnership with PBL to provide insurance program benefits to members of the Association.

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