Insurance Consulting

Scott Simmonds, CPCU, ARM

Insurance from an Unbiased Point of View

November, 2006 -- www.ScottSimmonds.com

Be a Smart Insurance Buyer - Buying insurance requires taking time to understand what you need and what your policies cover. Follow the advice I received from an early mentor in my career: "The most important part of the insurance transaction is the relationship between the insurance agent and the client."

Do you feel comfortable with the information and advice your agent gives you? Is your business appreciated? Do you feel well served when there's a problem? Follow your gut. If you don't have a good relationship with your insurer or agent, the results will be less than acceptable for you.

Your relationship with your agent is similar to that of your accountant and your lawyer. You must have faith that the agent has your best interests in mind. You must be confident that your agent is taking a proactive approach to your account. If you feel uncomfortable with the relationship, consider carefully if he or she is the best agent for you.

Be an Exceptional Risk - Obtaining good insurance rates, in part, is dependant on you. Maintain your buildings. Insist on safe work habits by your employees. Train your employees to manage emergencies.

Put your best face forward to your insurance company (current or potential) when inspectors show up. Housekeeping is important when insurers are evaluating your operation. Go on a pre-inspection walk-through looking at your operations as an insurance company will. Make sure fire extinguishers are up to date and properly located. Electric panels and appliances should be installed correctly. Extension cords should be removed, or replaced by hardwired outlets. Pick up trash and clean up storage rooms.

Show insurers that you're a quality risk by having policies and procedures in place to control losses and manage claims.

Loss Prevention Is Always Your Best Tactic - Consider what you can do to prevent accidents and losses. How can you make your operation safer? It is always less expensive to prevent a loss than to have one. Inspect your properties regularly looking for problems. How would an insurance company inspector view your operations? What can be done to make the property safer and less prone to an accident or loss?

Consider ways to control the losses that do occur. Sprinkler systems minimize the damage caused by a fire. Alarm systems cut down the time a burglar has inside your property before being caught. Expand your video surveillance system to show your parking lots. Having a clean desk policy in your office can limit the losses if the sprinkler or plumbing system fails. Exceptional data backup procedures limit downtime.

Look for practical ways to limit and prevent losses.

Life In Maine And Other Stuff - Several readers were concerned with the implication in my last newsletter that I was going to "eliminate" the chipmunk that had taken up residence in my garage. The rodent had caused about $100 of damage at the time of discovery. Let's say I wasn't feeling particularly benevolent to my new tenant.

There was an episode of the tv show Friends where Ross talked about their childhood pet going to Wisconsin. to live with a nice farm family. His sister informed him that the dog really didn't go live on a farm. I believe she made a slicing motion across her throat. Ross was horrified.

I hope the chipmunk enjoys his time on the farm in Wisconsin.

Biggest Insurance Mistakes White Papers - Get my white papers covering the biggest business and personal insurance mistakes. Send a blank email to bizmistakes@ScottSimmonds.com for a copy of the business mistakes paper. Email to personal@ScottSimmonds.com for the personal insurance version. No cost.

Your Privacy - I will never sell or distribute your email address to any other person or organization.

Do You Have The Right Insurance? Contact me to discuss an unbiased review of your insurance program. Do you have the right coverage? Can your policies be fine-tuned to improve the protection? Can changes be made to ease the administrative burden insurance causes? Are you getting the service you should from your broker? I can help. Call 207.284.0085 or email me at Scott@ScottSimmonds.com. Remember, I don't sell insurance so I'm unbiased.

Need A Speaker? I'm pleased to speak to trade, business, or service associations about insurance topics. Call 207-284-0085 or email me at Scott@ScottSimmonds.com. See my speaker's page at www.ScottSimmonds.com/ispeaker.html.

Forward This Newsletter To Your Friends - Feel free to pass this newsletter on to others whom you think would be interested.

Scott Simmonds, CPCU, ARM
Insurance Consulting
Phone 207-284-0085
Scott@ScottSimmonds.com
ScottSimmonds.com

Comments regarding insurance policies or products in this newsletter do not constitute an endorsement. I accept no fees or payments of any kind from any company mentioned in this newsletter.