Search CompleteMarkets

... is by owning a second home in a resort town and renting it out for additiona...

... rated yet. MANAGING RISK: A GUIDE FOR YOUR BUSINESS CLIENT Part 4 of 4 INSURANCE AND RISK MANAGEMENT This is the generally accepted sequence of risk management activities: The risk of loss is identified and measured. It's reduced as much as feasible by loss-prevention techniques. The loss is accepted as a budgeted cost to the extent that it can be fitted in to the financial picture. As a last resort, the losses that can't otherwise be treated are transferred. Insurance is the usual means. Insurance is so important as a risk-management tool and its cost so visible that other aspects have received relatively little attention. Nevertheless, they all tie together into the overall risk-management picture. Risk Identification It almost goes without saying that risks must be identified before they can be treated. This is one of the ... of a good risk manager. Here are just some risks that occasionally elude the public agency risk manager: Loss of revenue from shutdown of an income-producing activity: utility, toll road or bridge, auditorium, and so forth Loss of taxes because of destruction of a principal taxpayer's property Extra expenses from administrative dislocations following any catastrophe Extra expenses from hand processing data after loss of data-processing facilities Unusual types of liability, such as liquor liability, that are not perceived as important until an unforeseen situation Loss Prevention Safety programs affect insurance costs indirectly by reducing losses (which in turn indirectly affect premiums), but few safety measures are recognized in liability rating. To find out exactly what measures are important, ask your insurance agent for a breakdown of your rating factors. Larger Workers Compensation programs will also have ...

...financial picture. As a last resort, the losses that can't otherwise be t...

...ustry, including such business as resorts, dude ranches, outfitters and guides...

... to understand your situation and become your advocate. After that, you'll be ready to tackle your defense and proceed in earnest with the discovery process. Your next step is to decide whether to take your chances in court or settle the case. Keep your options open and follow the direction of your attorney and your E&O carrier. In our legal system, a trial should be the last resort. The odds aren't good that you'll get an informed, objective jury. They're often made up of people who don't like insurance companies and don't differentiate between companies and agents. Even a trivial error in handling a client could balloon out of proportion during a trial. MEDIATION: THE PROS A trial is expensive and time consuming. Mediation, on the other hand, is a relatively risk-free way ... stigma of a judgment, and the client gets some satisfaction. The incentive to mediate is greater when plaintiffs allege unfair trade practices and other Insurance Code violations. The client's attorney might be making these allegations only to force mediation. But that might not be a risk you want to take. If you lose in court, your E&O carrier could enforce a probable exclusion of coverage in the Property/Casualty contract because of violations of the Insurance Code and illegal acts, including unfair trade practices. MEDIATION: THE CONS For one thing, it's almost a foregone conclusion that you'll pay something. During mediation, you might find that the plaintiff has a far better case than you originally thought. Once they have a general understanding of your case, they might want to settle on terms that ...

...ystem, a trial should be the last resort. The odds aren’t good that you’ll get...

... of someone hanging you on an E&O claim arising out of binding is remote. 15. Maintain a binder log and use a sequential number on all binders. Most agency-integrated automation systems make this an easy process to control. If you don't have this capability, you can still set up a log using software programs through MS Access, Word, Excel or other software. As a last resort, use a handwritten log. Almost every agency uses ACORD forms, which include a log with the binder packet. Just as important, follow up on binders that have been issued. Never issue a one-year binder. Few, if any, carriers permit them. Issue a 30-day binder in every case unless specifically authorized to issue a longer one; but in no event issue a binder longer ... a Commercial account without inspecting the risk. This applies to both new business and renewals. If the account is too small to inspect, you would be better off not writing it. If an insured does something you don't know about, or if the building has features not considered, you might fail to advise the insured properly. Take photos of the front, rear, and sides of the property; if possible, take some inside. Diagram the premises and highlight any special processing. Have the insured walk you through and show you what the business does. Ask questions, and ask the carrier how they want to handle anything that seems unusual. If you just renew accounts "as is" by sending them back to the carrier, you're inviting a problem. It's not a matter ...

... or other software. As a last resort, use a handwritten log. Almost every ...