If a Review of Your Insurance Program Isn’t On Your To Do List, It Should Be!!
If you are like most people, you are asking yourself where in the world did the past twelve months go?!! 2017 has come and gone, and we are already into January 2018.
As with most companies, you have put together your business plan for the next twelve months, so let me ask you a question, have you thoroughly reviewed your entire insurance program? If that answer is no, then my advice would be to start the review process as soon as possible.
The first insurance policies that need to be reviewed are your company’s:
General Liability Insurance:
Look at your GL limits. Are they at least one million per occurrence and two million aggregate? Have you reviewed the exclusions and endorsements in the GL policy?
Are there any exclusions that may affect your particular company’s needs? Most premiums on GL policies are based on some combination of sales and/or payroll, so make sure the figures the GL was priced on has the correct figures.
If you have had no claims during the past year, you may want to have your broker shop your Las Vegas General Liability Insurance to see if there is a better premium out there providing the coverage is equivalent to what you currently have and, hopefully, even better coverage.
Workers’ Compensation Insurance:
With the way worker’s compensation rates are these days, this is an area upon which companies are really paying very close attention. We understand that should your company have employees, having workers’ comp is a must and, in some cases, this can be a very huge part of your expenses. We suggest that you do a complete review of your workers’ comp insurance, starting with looking at what class codes your premium is based on to make certain they are the correct codes and you are not being charged for a class code or codes that do not apply to your particular company’s work activities.
Also, with some class codes being at the high end of the premium scale, it might make sense to sub that particular area of work out. More and more companies are using independent contractors to better control their comp costs.
Also, when was the last time you put your workers’ compensation out for review and possibly for a more competitive premium? If your company has been very diligent in making sure your employees adhere to strict guidelines designed to keep them safe on the job, resulting in either no claims or very few claims over the years, your company could be very attractive to several workers’ comp insurance carriers which may result in your company receiving a lower rate and premium than you are currently paying.
Many times, clients overlook reviewing their property insurance limits annually. If your company owns your building, does your company’s building property insurance policy limit match the current replacement value of the building? Construction costs have soared over the past four to five years, and if you haven’t increased your policy limits, your building may be severely undervalued.
In addition, take an inventory of your office equipment, tools, machinery, inventory, improvements, and betterments. Have they increased or decreased this past year? Make sure the amounts you have match what is on your current business property insurance policy.
Commercial Auto Insurance:
Here we are talking about commercial auto coverage. On numerous occasions, in talking with potential clients when we discuss this coverage, we are told they already have an auto policy and they are sure they are covered through their personal auto policy. This may or may not be true depending on your insurance carrier, and if you are not sure, you should call your agent as soon as possible to find out.
If you do have commercial auto coverage, it’s a good idea to review your policy. Is the vehicle info listed on the policy correct? Also, are there drivers listed on the policy that are no longer employed, or if you have new drivers, has their info been forwarded to the carrier?
We suggest that you review your commercial auto coverage at least once a year, and, in some cases, it would be prudent to review the info every six months or as needed.
As we know, no two companies are alike, and, in many cases, there will be additional coverages that are needed and, therefore, should be reviewed at least once a year. Here are a few examples:
- Umbrella Insurance Coverage
- Pollution Liability Insurance
- Professional Liability Insurance
- Director’s & Officer’s Insurance
- Employment Practices Liability Insurance
- Cyber Liability Insurance
These are just a few of the many insurance coverages that are available for companies. We highly suggest that at least once a year you perform a thorough review of all of your current insurance coverages as well as consider additional coverages to better protect your company’s interests. If PJO Insurance Brokerage can be of assistance in these areas, we would welcome the opportunity to work with your company on its insurance needs in Nevada.
PJO Insurance Brokerage – Patrick O’ Neill
9850 S Maryland Parkway Suite A-5-262
Las Vegas, NV 89183
Office: 702-370-4799 / 877-234-5759