Page 20 - Tennessee 811 Magazine 2022 Issue 1

Saving Money on Insurance Premiums
Yes, it’s a new year; yes, we are all looking at taxes and other money we have to spend... All. Over. Again.
saves
By Virginia Reames The Policy Center
There has to be a real good reason.
We had a customer in a related field; their safety measures had them in the .82 Experience Mod for the Workers Comp! That translates to a 20% discount on their premiums – never mind their valuable employees weren’t off the job and kept making $$ for the company.
On the flip side – that business was sold and new management took over. They retained most of the employees, but new management had a different mindset – it became evident when
the claims started to roll in. They lost their Workers Comp discount within
2 years – and it had taken close to 10 years to earn it. It wasn’t long before the equipment damages began – within another year or two, their company non-renewed and their premiums REALLY skyrocketed! All because of a lack of safety protocols – imagine what happens out in the field! Sorry to say that we liked them – but we don’t miss them.
Worse – when they went to get insurance from a new company, the first thing the new agent had to do is request something called Loss Runs. This tells the new company how much the old company had to pay out. And there goes the price. Remember, there is always someone that will sell you insurance - IF you got the money, they got the time.
Safety is a state of mind, and it will cost you a lot of money if you don’t have that mindset; if you don’t manage for safety, your guys won’t have safety on their minds, either. Next thing you know, your insurance rates will go through the roof.
Most accidents can usually be prevented. It is well worth your time to see that you and your guys “think safety” and apply that to everything they do.
It’s money in your pocket!
Inflation is running wild in all sectors, and insurance prices are climbing, too. We can’t make it cheaper, but there are ways to keep it from getting out of hand.
How?... Safety!
Safety reduces claims, and claims drive premium increases! There is nothing you can do to reduce the reinsurance premiums due to all the worldwide catastrophes – BUT, if you haven’t had losses, you can request that the renewal premiums get re-figured, and you will often win yourself a reduction. It might not be as low (or lower) than last year but won’t be as high as it started out to be.
The underwriting process takes in
your company’s mandated increases as well as whether or not you have added equipment, new jobs, newer vehicles (they have a higher value and cost
more to repair if damaged) – maybe
you expanded your operations?... all these factors are considered whenever renewal premiums are being calculated. Most are done by computer – as long as there are no extenuating circumstances (size or frequency of claims). These computer-generated increases are the ones that, in some cases/companies, can be requested to be refigured – given you have had, say, no losses for 4-5 years. That in itself makes you a desirable customer! Companies want to retain desirable customers...of course.
Safety is the #1 money saver for your insurance premiums.
Having Safety meetings pays off! Know of anyone in the oil field? They have safety meetings every day! Every single day. The oil & gas folks know the value of a dollar. Yet they spend how many hours in safety meetings in a week?
18 • Tennessee811
2022, Issue 1
safety