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... 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...

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

... many classes of business. For the most part, a program offers multiple-line coverages to their prospective clients. Exceptions include Professional Liability, Pollution Liability, Errors & Omissions, Directors & Officers, and Products Liability policies. PAs have even progressed to the point of employing loss-control representatives who have the expertise to specialize in the underwritten class. My firm underwrites the outdoor recreation industry, including such business as resorts, dude ranches, outfitters and guides, trap and skeet clubs, hunting and fishing lodges, hunting leases, snowmobile tours, RV parks, and campgrounds. The program offers a full compliment of package policy forms: Auto, Workers Compensation, Marine, and Umbrella Liability. The program is admitted in the United States; we have a separate division that underwrites Canada. Our insurer is Gulf ... In a genuine specialty program, only a limited number of insurance companies have: The understanding or desire to compete for the class of business The rates or forms necessary to rate or insure the exposures properly Individual reinsurance treaties in place to give the primary carrier the flexibility and capacity necessary to insure the underwritten class Keep in mind that standard reinsurance treaties, like standard ISO forms, exclude certain Liability and Property exposures, which in turn restrict the underwriter's ability to compete for many classes of business. For the most part, a program offers multiple-line coverages to their prospective clients. Exceptions include Professional Liability, Pollution Liability, Errors & Omissions, Directors & Officers, and Products Liability policies. PAs have even progressed to the point of employing loss-control representatives who have the expertise to specialize in the underwritten class ...

... 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 ...