Bob's Rules of Insurance – Rule 7 – Good Agents Manage Risk

Insurance Rule 7 – Many insurance agents are transaction based – the good ones are focused on managing your risk

There are lots and lots of insurance agents out there. Most are focused on transactions – sell a policy, help with a claim, answer a question, get a payment… The good ones are looking at ways to manage overall risk. They see their own value as providing knowledge and tools that help their clients minimize the impact of negative events.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

Bob's Rules of Insurance – Rule 6 – Your Relationship With Your Agent Is Key

The most important part of the insurance transaction is an insurance buyer’s relationship with his insurance agent.  It must be based on mutual trust and respect.  You should view your agent as a professional, an advisor, a confidant.  If trust and respect are at all missing, it’s time to start looking for a new agent.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

Bob's Rules of Insurance – Rule 5 – To Get Great Rates You Must Be Attractive To Insurers

Getting good rates, in part, depends on you. Put your best face forward to your insurance company (current and potential). Show them you are a quality risk by having policies and procedures in place to control losses and manage claims.

Ask your agent what issues are worrisome to insurers? Find out what you can do to minimize those concerns.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

Bob's Rules of Insurance – Rule 4 – Insurance Is A Process, Not An Event

Rule 4 –  Insurance is a process, not an event.

Managing your insurance is not just about your policy renewals.  As your business changes, your insurance must change.

Your insurance is determined by your exposures.

Certainly the renewal process is important.  However, there needs to be a regular chance to review and update coverage during the policy year.

You buy insurance as a part of a plan to manage risks – insurance does not create risk – insurance is a tool to mitigate the impact of risk.  For example, you have the exposure of employees causing an accident while driving their personal car on company business.  You transfer that risk to your insurer when you buy non-owned auto insurance.

As your exposures evolve, your insurance should evolve.

Open claims should be reviewed at least quarterly.  Halfway through your workers’ comp year, you need to push adjusters to reduce open claim reserves.

Monthly walk-throughs help to identify hazards that have developed.

If nothing else, talk with your insurance advisor a few times a year to update him on changes you have made to your operation.  You’ll also hear of emerging insurance issues – if your advisor is any good.  You can get help with budgeting for the future.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

Bob's Rules of Insurance – Rule 3 – Preventing A Loss Is Better Than Being Insured

Rule 3 – Preventing a loss is better than being insured. Limiting a loss is the next best thing to preventing it.

I consider any loss as a failure in some system. Build operations and procedures to prevent and limit loss. Place backups. Create stop-gaps and fail-safes.

Inspect your electrical systems annually. Install water-usage alarms to notify you of a burst pipe. Test your evacuation plan. Install a security system. Build a video surveillance system. Perform regular inspections of your facilities. Look for unsafe conditions, hazards, maintenance issues.

In a heavy rain, inspect for water flow around your property. Where is water collecting? What could prevent water from draining away from your buildings?

Consider “what if” scenarios. What if our computer crashed? What if our main supplier shut down? What if we lost power for 5 days? What if our best customer cancelled?

Redundancy is an often overlooked tool. I have a home phone, cell phone, and Skype subscription so I am sure to be able to get and make calls. I backup my computers on-line to a server. I also backup my computers on a separate harddrive.  Much of my work is online so I can work from almost anywhere.

Build a communications plan. Have an accessible, updated list of customers, employees, suppliers, and service providers.

Any disruption is expensive. Plan to prevent disruptions and to limit them.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

Bob's Rules of Insurance – Rule 2 – Insurance Is For The Big Stuff

Rule 2 – Insurance is for the big stuff – you take care of small stuff.

Stuff happens. Life and commerce include ups and downs. Bumps in the road should be paid for out of your own pocket. Catastrophes is where insurance comes in.

Use deductibles to limit the involvement of the insurance company in minor losses.

Look to the other side of a loss – the total amount. Use deductibles to decrease premium and put that premium towards higher limits of coverage and broader perils. Consider adding coverage for events that are normally excluded, like flood and earthquake, that could be catastrophic.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964

Bob's Rules of Insurance – Rule 1 – Insurance Is All Fine Print

Rule 1 – Insurance is all fine print – work to understand it.

Insurance policies are written by insurance companies to cover specific risks and exposures.  Every word is carefully placed to clarify, expand, and restrict coverage.  There are no hidden meanings.  There is no subterfuge.  Ambiguity in insurance contracts can be disastrous for the insurance company as courts always read confusing language in favor of the insured.

Courts, too, help define insurance contract language.  Precedent moves insurers to further clarify language.

A basic understanding of insurance is not a Herculean task.  For over 50 years, I have been explaining insurance concepts and issues to insurance buyers. Heck, helping insurance buyers is why I’m in business.  All you have to do is call.

Contact us for all your Insurance needs! (321)725-1620 

Bob Lancaster Insurance

Serving Florida since 1964