Each year Bill Dougherty teaches business owners how to Avoid the 10 Critical Business Insurance Mistakes. He motivates them to “take charge of their insurance program” to Reduce Costs and Maximize Value.
Talk To An Agent
Call: (908) 232-0760
How to Avoid the 10 Critical Business Mistakes
For the past five years I have had the unique opportunity to meet with the contracting community on three different continents to help them design business insurance programs that both protects their assets and controls their costs.
One of the basic building blocks of this design has been helping them avoid making insurance mistakes that can cost significant dollars in terms of uninsured assets or unacceptable insurance premium costs.
I am now offering an executive summary of this program to you in a series of ten monthly email communications that will provide you with ten specific actions that you can begin implementing today to properly protect your business assets and control the cost of your insurance program.
Bill Dougherty, EVP
True & Associates
I’m going to talk about insurance agents. I’m going to interpret insurance counters and how they relate to the construction industry. Some of this is controversial and some they don’t want you to know but I’m going to tell you anyway. And during our conversation this morning, I want you to remember that I was in the locker room, I was on the playing field and I had a playbook of both the insurance agents and the insurance counters. I want to provide you this information because I think if you have more information, you’ll be able to take charge of your insurance program and start managing the process rather than the process managing you. And I think you’ll be in an improved position at the end of this presentation to really take charge of the insurance program, better protect your assets and control your insurance cost. The person on your left is probably paying too much for their business insurance. The person on your right is probably jeopardizing the assets of their company by having an inadequate insurance program and you might be presented with both problems. If I can give you a 10 step action plan, a blueprint that you could take home and Monday morning implement in your office, there could better control the cost of your insurance and better protect your assets, would you be interested? Of course, you would. So what we’re going to do in the next few minutes we’re going to help you identify the 10 critical business insurance mistakes. We can tell you how to resolve them and avoid them and we’re going to give you some ideas of the 10 steps to better protect your business and control your insurance cost. So let’s get started with the first mistake we want you to avoid and that’s partnering with the wrong agency. One of the things that should happen is your agency should have specialization in your industry. But here’s the point guys, you’re probably never going to hit a situation where your carrier goes out of business. But what will happen as your carrier’s financial performance declines? Their appetite for your business and their pricing is going to change. So what do you do? We want you to meet with your agent on a regular basis and if you’re not getting that service, he’s not earning his commission. What we’re talking about here is a planning session outside of that cycle where that insurance comes into your business and sits down and the two of you talk about your exposures. You know the agent’s job when he gets paid for is to help you avoid retainer transfer risk. Now the claims management process is not very complicated but no one does it. No one does it. Very few insurance companies and very few agents do it. Demand this, you’re paying for it. It will help you save money in the long run. We all know that quality safety programs reduce losses and in essence then reduce the cost of your insurance. We also have an obligation to be sure that the folks we send out to our projects everyday return home safely to their families every night. So there’s a lot of reason to have a safety program. Actually critical this year because workers compensation insurance for the insurance industries are in a tailspin. So what do we do? You need to do a complete and regular review of your workers compensation program in a couple of different areas. Mistake number 9. I want you to avoid is the failure to tune up your insurance program. What do we mean here? Well, we see many coverage gaps when we go out particularly in the construction industry and they really fall on the four different categories. Last item, going to market every year. How many people take their insurance program to market every year? The insurance business is not massive aircraft carrier size business. The bottom is pit of money, it’s nice. Money in money out. And the underlying community in each state is very small. If you only do a couple of this, I guarantee if just two of these, you better protect your business and control the cost of your insurance.