Category: Insurance

More Workers’ Compensation Claims Made As the Result of Work-Related Traffic Accidents

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According to the Network of Employers for Traffic Safety, both on- and off-the-job motor vehicle crashes cost employers $60 billion annually from 1998 through 2000. The problem is so widespread, that in a recent study, the National Council on Compensation Insurance Inc (NCCI) noted that traffic accidents are the leading cause of accidental deaths in the United States. The study also said that workers’ compensation claims resulting from motor vehicle accidents are more severe than the average claim. Although they make up approximately 2 percent of all claims, they account for more than 5.5 percent of all losses because they cover a disproportionate share of the most severe claim types.

While workers’ compensation claims from motor vehicle accidents are growing, their frequency is declining but at a slower pace than for workers’ compensation claims in general. There are some other important characteristics about these claims that the NCCI noted in its study:

·   They almost always involve time lost from work.

·   Neck injuries are the most frequent diagnoses in these claims.

·   The average duration for a motor vehicle claim is 70 percent longer than for other types of claims.

·   They are three times as likely to involve a claimant attorney as compared to other types of claims.

The leading cause of these claims is a traffic accident that happened because the driver became distracted. The study revealed that almost 80 percent of the crashes and 65 percent of the near crashes resulted from the driver becoming distracted within three seconds of the event. The chief causes of the distraction were drowsiness and cell phone use.

The researchers had some specific suggestions regarding the steps employers can take to reduce the frequency and severity of these claims:

·  Encourage your employees to use seat belts – Failure to use seat belts cost employers roughly $2.1 billion yearly from work-related crashes between 1998-2000.

·  Be sure your employees never drive under the influence of alcohol – During 1998-2000, work-related crashes that resulted from drivers being intoxicated cost employers $3.1 billion annually.

·  Encourage employees to take defensive driving courses – These courses teach drivers how to react during an emergency so as to lessen the severity of the accident or avoid it all together.

·  Provide internal driver’s education courses – Teach employees good driving practices like pre-planning the trip route, realistically estimating how long the trip will take, being sure the vehicle is in good condition before hitting the road, and informing colleagues about travel plans.

There Are Good Reasons Why Your Insurance Doesn’t Cover That Loss

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Every insurance policy has a section popularly known as “the fine print,” though its actual title is “Exclusions.” Exclusions are provisions in an insurance policy describing losses that the policy will not cover. For example, a homeowner’s policy does not cover losses caused by the use of cars, and a business auto policy does not cover injuries caused by a bulldozer on a construction site. While it may appear at first glance that the insurance company includes these provisions to get out of paying claims, the reasons are more complex and less insidious than that. There are very sensible reasons why no insurance policy covers everything.

First, not every person or business has the same exposures to loss. Most homeowners do not own a dump truck used in a business; the owner of the dump truck might not have employees to insure for jobsite injuries; the employer with a dozen employees might not own the building it occupies. Imagine if there were one insurance policy that covered all of these exposures — it would be hundreds of pages long and very complex. Therefore, over time insurance companies have developed different policies for different exposures — auto, home, business liability, and so on. The homeowner’s policy excludes losses that the auto policy should cover, personal policies exclude losses that business policies should cover, and vice versa.

Related to this are the issues of cost and choice. Standard insurance policies contain coverages that apply to large groups of households and businesses, but they do not cover every possibility. Those with additional needs have coverage options to choose from. For example, homeowner’s policies do not cover damage caused by water backing up from an overflowing sump or drain, but households that have basements with sumps or drains have the option of buying this coverage. Households without a basement do not have to buy it. This affords the buyer choices but does not force coverage on those who do not need or want it.

Furthermore, exclusions reduce the cost of the insurance policy. Every coverage comes with an associated cost — the company must factor in the costs of potential claims, expenses and profit for that coverage. The more coverages a policy provides, the higher its premium will be. Without exclusions, people and businesses would be forced to pay for coverages they do not need. Exclusions help keep the premium affordable.

Finally, certain types of losses are uninsurable. Insurance companies cannot accurately predict when certain types of losses will happen, and the potential loss amounts are too large for them to absorb. For example, almost all policies exclude losses suffered as the result of a war or a nuclear accident. These events would cause massive losses beyond the abilities of insurance companies to pay. Other losses are not insurable as a matter of common sense. Because the purpose of insurance is to pay for losses from accidents, it will not cover most losses that a person intentionally causes.

Because every household or business’s circumstances are different, standard policies might not provide all the coverage necessary for proper protection. Properties in flood-prone areas, businesses that have a lot of contracts with other businesses, and individuals who post to online message boards may all lack important coverage. Consultation with a professional insurance agent will help determine whether more coverage is needed, whether it is available, and how much it will cost. The time to find out the availability and cost of coverage is before the loss occurs.

Four Rules of Thumb to Follow When Purchasing an Auto Insurance Policy

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There probably aren’t very many, if any, drivers that look forward to buying auto insurance. If you’re like most people, you feel that you have an overwhelming task when it comes to sifting through dozens of companies and agents to find the ideal insurer for your vehicle and unique financial situation. The process can leave you feeling unrewarded and irritated as you think about writing a check for a policy that you hope you’ll never need to use.

On the other hand, you know that having auto insurance is a necessity that can be the difference between a financial catastrophe and enduring a minor inconvenience if you were to have an auto accident.  Furthermore, there are steps you can take that make the act of buying insurance less painful and complicated.

The following four rules of thumb can help you drastically simplify the process, while still getting the best auto insurance policy for your needs:

1. Don’t forget to consider the size and type of vehicle you drive when you choose your limits.

Insurers will not sell you a policy that is less than the minimum requirements for your state. However, that doesn’t mean that you should mistakenly opt for auto insurance limits based on the minimum amount required. Depending on the size and type of vehicle you drive, the bare minimum may not be enough to fully cover you if you should have an auto accident. For example, let’s say that you’ve selected the $10,000 minimum property damage amount set by your state, you drive an SUV or large truck, and you hit and cause $22,000 in damage to a brand new Mercedes. Since you’re only covered for $10,000, you will pay the remaining $12,000 out of your pocket.

2. Be forthcoming and honest with insurers.

Even if you think it won’t be favorable on your premiums, it’s extremely important for you to just tell it like it is when you’re asked about your driving history. You can choose to be less than truthful regarding your moving violations and auto accidents, but you won’t be given an accurate quote. This wastes both your time and the insurers, as all insurers will check your driving record themselves and make adjustments to the quote based on your actual driving record. Be honest from the start and you will save time by getting accurate quotes that you’ll be able to compare side-by-side.

3. Look at the whole picture.

It’s tempting to opt for the insurer offering the lowest rate, but cheapest isn’t always the best deal. Know exactly what you’re getting for your insurance dollars and pay careful attention to the fine print in the contract. Unusually low rates have a catch. Would you rather pay low rates with an insurer offering substandard service, or slightly higher rates with an insurer offering an attractive package and reliable 24/7 customer service? Are options on repairs and parts an important option to have? Is it price or convenience that’s at the top of your priorities? These are questions only you can answer in choosing your insurer.

4. Don’t waste insurance dollars on duplicate coverage.

Look at all your auto coverages and ensure options aren’t being paid for twice. For example, AAA members most likely have their towing costs already covered and wouldn’t need a policy with roadside assistance.

Finding the best auto insurance policy isn’t always fun or easy. However, by following a few rules of thumb during the selection process, you can certainly save yourself a lot of money, frustration, time, and regret.

Where is Your Coverage When the Lights Go Out?

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In the aftermath of a blackout that left some 50 million American and Canadians powerless and, others stranded, many people are asking how and why the August 2003 Northeast Blackout occurred.    While most were merely inconvenienced by the effects of the blackout, some significant property losses undoubtedly were suffered.  What property loss might occur as a result of a blackout?  What factors might come in to play to limit coverage availability or applicability? What types of coverage are typically available?

First and foremost, it is advisable that you look into whether your insurer offers any kind of coverage for food spoilage or other loss caused by failure of power that originates outside of the insured premises.  In lieu of such an endorsement to the policy, most property policies exclude claims arising out of loss resulting directly or indirectly from power failure that does not emanate from the covered property.  In other words, if the power loss occurs somewhere within the vast and complex grid that powers your home or business, it is not covered.  The London Financial Times noted that companies most likely to hold such coverage “are those with perishable goods they need to protect, such as supermarkets, other grocery stores, florists and restaurants. Theatres, hotels and restaurants suffering perhaps from loss of business in cities last night were unlikely to have any chance to make a claim.”* 

It is important to note that there are many different potential causes of blackouts.  A power crisis in California in 2001 was caused by a confluence of factors which were foreseen long before the rolling blackouts occurred, making them very different from the August 2003 Northeast Blackout, which occurred despite largely adequate power supply and with no advanced warning.   These differences may impact upon the coverage afforded for any given claim as the California scenario may be argued by your carrier to be a “known” hazard, which was foreseeable and preventable, thus excluded.

In addition to the limited types of coverage available under homeowners and commercial property policies, “Power Plant Insurance” may be available under a Boiler & Machinery or SMP (Special Multi-Peril) policy.  If you have or need such a policy to cover your business, check with your agent as to whether or not this endorsement is available and if so, for what additional premium.  Note, however, that such coverage often comes with time constraints for the blackout duration.  For example, a blackout that lasts for less than 24 hours may not be a qualifying trigger for coverage, despite whatever losses have been incurred.

Last but not least, what about the disruptions at airports that left travelers stranded during the Northeast Blackout?  Coverage may be available on your travel insurance policy – if you purchased one.  If you are planning a trip in the near future look into this valuable coverage, but be prepared – some companies offer a dizzying array of products for just about every type of travel possibility.  It can be confusing even to the well informed.  Check the fine print before you purchase as there is a great deal of variability in coverage.  Certainly, if a blackout caused you to miss a flight connecting you to a cruise, it would be reasonable to expect that travel insurance would reimburse you for the lost money spent on the cruise, but again, check the fine print for any power failure exclusions. Some policies will reimburse you a set amount per day for having to make alternate travel arrangements due to an unforeseen delay.   On the other hand, if you are unable to find a hotel room and you find yourself lying in a cot in the airline terminal as many hapless travelers did during the Northeast Blackout, you may just have to grin and bear it. 

What Coverage Do You Get under a Contractor’s Equipment Policy?

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Contractor’s equipment insurance is an essential part of any construction firm’s insurance program. Commercial property insurance covers a business’s personal property while it is at a location listed on the policy, but it does not cover property that moves among different locations. Business automobile insurance does insure property that moves around, but it does not cover “mobile equipment” — property such as bulldozers, loaders, digging equipment, and power tools that the business uses off its own premises. Power tools may cost only a few hundred dollars, but large pieces like backhoes and excavators may be worth tens of thousands of dollars. To properly insure such property, the firm needs contractor’s equipment insurance.

A typical contractor’s equipment policy will cover the insured’s owned pieces of equipment listed on its declarations page or a separate schedule. It will also cover equipment that someone else owns and that is in the insured’s care, custody or control. For example, the policy will cover a loader that the insured borrows from another contractor on a job site or that it rents from an equipment dealer. It may also provide one amount of insurance to cover a group of less expensive items, such as power hand tools. For example, it might provide $10,000 coverage on tools but no more than $500 for any one item. It will not cover automobiles, trucks, aircraft, watercraft, contraband, and it may not cover equipment the insured uses in underground mining operations or equipment rented or loaned to others.

The policy will cover equipment for a variety of losses, including fire, explosion, vandalism, theft, collision with other equipment or objects, and overturning. Unlike standard property insurance policies, contractor’s equipment insurance often covers losses caused by floods and earthquakes.

Insurance companies usually offer several coverage options, such as:

  • Rental reimbursement coverage, which covers the cost of renting a temporary substitute when a covered cause of loss damages an insured item.
  • Reimbursement of income the insured loses when it cannot complete a project because a covered cause of loss has damaged an insured item.
  • Blanket coverage, which insures all covered equipment under one large amount of insurance instead of insuring each item under its own individual amount.

To purchase the proper amount of insurance, the firm must determine the values of each piece of equipment. A typical policy covers equipment for its “actual cash value,” which is the difference between the cost of replacing the equipment and the amount by which it has depreciated. Published equipment pricing guides, advertisements in trade magazines, and local equipment dealers are good sources of information on equipment values.

In addition to the other options available, an insured must consider factors such as:

  • Whether to pay extra to insure the equipment for its replacement cost without depreciation. This may depend on both the firm’s budget and the ease with which the firm can obtain used equipment should it need to.
  • Whether the policy has a coinsurance clause, which penalizes the insured if coverage on the damaged item is less than its value at the time of the loss. Some companies may offer “agreed value” coverage, which eliminates the coinsurance clause and requires coverage up to some agreed amount.
  • Whether to buy a higher deductible to decrease the premium.

Contractor’s equipment insurance is not just for contractors; municipal governments and any other organization that uses this type of equipment need it as well. A consultation with a professional insurance agent will reveal the organization’s coverage needs and the appropriate insurance companies to meet them. Because the equipment is so expensive, the buying decision should be based on coverage and a company’s reputation, not just the premium.

What is the Difference Between Occurrence vs. Claims Made Forms?

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All the property and casualty insurance policies you buy fall into one of two categories – “occurrence” or “claims-made.”   This distinction may impact drastically on:

1.      Whether or not your policy will respond to a claim;

2.      What your responsibilities will be in the event of a claim;

3.      How much your policy will cost up front and in subsequent years, and;

4.      How much it will cost to keep the coverage in effect, in the event of cancellation.

With all this riding on the type of coverage form you purchase; it helps to understand the pros and cons of each so that you can make an informed decision if options are available.

“Occurrence” form coverage is the simpler of the two.  Most property and casualty insurance policies fall into this category.  Quite simply, “occurrence” form coverage means that the policy responds to events that occur during the policy period regardless of when the claim is made.  Once the policy period is over, the policy will respond to covered claims, even if the claim is made many years after the triggering event (accident, wrongful act, injury, etc.). 

The far more complex “claims-made” coverage form responds only to claims that are made during the policy period, though the triggering event may occur prior to the policy period if there is a “retroactive date” on the policy.   The key to “claims-made” policies is maintaining continuous coverage.  Without “continuity,” insurers will not give you that all important retroactive coverage.

“Claims-made” coverage came into vogue in the sixties and seventies as professional liability policies gained a foothold and underwriters sought to contain the volatile nature of the “tail.”  In property and casualty insurance lingo the “tail” refers both to the optional coverage that may be purchased to extend the policy for reporting purposes, and to the typical length of time between the triggering event and the claim.   Asbestosis, which often takes years to develop, is considered a “long tail” exposure.  Libel and slander lawsuits, on the other hand, usually occur right after the triggering event, i.e., libelous newspaper article or news broadcast.

“Claims-made” policies are becoming more popular in commercial lines because soon after the policy year is over, actuaries will have a pretty good idea of how many more claims might be reported.  Subsequent claims, even if the triggering event occurred during that earlier policy period, will be charged to the later policy period when the claim is made.  The ability to “close out” policy years quickly, is a palpable benefit to insurers of the “claims-made” form.

How do you identify “claims-made” or “occurrence” policies?  “Claims-made” policies are easier to identify because they will typically advise you in the declarations or the first page of the policy:  “THIS IS A CLAIMS-MADE POLICY.”  Additionally, you can search for Extended Reporting Period, aka “tail” option, provisions in the form.  A space for “retroactive date” on the declarations page is another telltale sign of “claims-made.”

“Occurrence” policies are more difficult to spot.  While some policies might herald the occurrence nature of the form, in other cases it will be the lack of “claims-made” language and provisions that will provide the clues.

While “claims-made” might seem more onerous than “occurrence,” for the buyer there are some benefits that warrant mentioning.  First and foremost, there is the pricing issue.  The first year of “claims-made” coverage should typically cost somewhere between 40 and 85% of an “occurrence” policy.  The price automatically increases in subsequent years as the “claims-made” exposure increases.  Usually, after three to five years, a “claims-made” policy is thought to be roughly equivalent to an “occurrence” policy and should cost about the same.  In addition to the cost savings enjoyed early in the early years of coverage, in a competitive marketplace insureds can benefit as underwriters discount the step factors that bring up the price.  Also, although Extended Reporting Period options can be quite costly, it is rare that an insured will need to exercise such an option unless they retire or are unable to find retroactive coverage from another carrier.  Still, it’s a good idea to compare Extended Reporting Period options if you are presented with quotes from different carriers.  How long are the “tail” options and how expensive? 

While “claims-made” coverage can be confusing, it’s clear this coverage form is here to stay as the preferred choice for insurers across an increasingly broad array of product lines.  So get used to the concept now and be prepared to explore all the options carefully.

Third Party Coverage Is a Key Coverage of Employment Practices Liability Insurance

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The purpose of third-party coverage in an Employment Practices Liability (EPLI) policy is to protect an organization and its employees from accusations of wrongful acts committed against customers, clients, vendors, and suppliers. Some EPLI policies also cover wrongful acts committed by third parties against the insured’s employees.

Harassment and all forms of discrimination are covered under wrongful acts. Discrimination claims include discriminatory practices against a person based on their race, religion, age, sex, national origin, disability, pregnancy or sexual orientation. Harassment involves unwanted sexual advances or requests for sexual favors. Both verbal and physical conduct, as well as other forms of harassment that create a hostile or offensive work environment, are covered. Some policies also cover accusations of mental anguish, emotional distress, humiliation and assault.

If your organization has a lot of interaction with the public, it is especially vulnerable to third-party claims like those described above. In some cases, EPLI carriers may not provide third-party coverage to firms with a high potential for claims. What they might offer instead is limited coverage, such as covering accusations of discrimination, but not harassment claims.

To protect your organization from third-party claims, you need to go beyond just purchasing coverage. You must implement policies and procedures that address discrimination and harassment issues, both from the standpoint of an employee’s actions and the actions of third parties. EPLI insurers are increasingly requiring employers to implement these practices before they will issue a policy.

Having policies in place will offer little help to stop third-party claims if employees aren’t adequately trained. New employee orientation programs should include a presentation outlining the organization’s harassment/discrimination policies. The training must also include how to report and handle a third-party claim. However, hearing the information once is not enough to insure compliance. Employees must be periodically retrained through departmental meetings. To maintain the effectiveness of departmental training sessions, be sure that supervisors are provided with copies of all policy updates and procedural changes.

One important caveat to keep in mind is that most EPLI policies don’t provide third-party coverage for accusations involving the violation of the Americans with Disabilities Act. Nevertheless, you should review your EPLI policy’s definition of a claim to determine the policy’s interpretation. Many policies define a claim as a “demand for monetary damages.” This definition can present a problem in an ADA claim, because many of these claims are asking for reasonable accommodations, not monetary awards. That’s why it is important to ensure that your policy’s definition of a claim includes claims for non-monetary damages. A policy with this expanded definition will cover defense costs and indemnity connected with an ADA claim, but will not provide the funds to bring your organization into compliance with the provisions of the law.

Fire Insurance Coverage: Know What You Have and Understand How it Works

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The extensive and costly damage caused by California wildfires over the last couple of years should serve as a reminder on why it’s vital to both know how you should proceed after finding yourself victim to a large-scale fire, and fully understand your fire insurance coverage before you need to call upon it.

Once the immediate danger of a fire is over, you will need to assess the situation and the resulting ramifications. If you find that the disaster has created large-scale destruction, then just the number of people impacted and the vastness of the destruction itself will most likely impact the cost and tempo of your rebuild. For example, available building materials will be depleted quickly and additional materials will be in high demand. Likewise, contractors will be available in limited numbers and be in high demand. The result – premium prices for supplies and contractors.

Given the above circumstances, it’s necessary for you to insist your insurance adjuster and contractor work together and reach an agreed price for your reconstruction. You might ask both parties to meet with you simultaneously at your home during the cost estimate of the reconstruction.

In addition to knowing how to proceed after a disaster, you also need to fully understand your insurance coverage. Do you know how much of the damage your insurance would cover?

If you opted to insure your home for 100% of its estimated replacement cost when you purchased your policy, then it should pay the cost to rebuild up to that estimated replacement cost. You can add at least an additional 25% if you opted for an extended replacement cost endorsement in your policy. Furthermore, a supplemental building ordinance endorsement in your policy will cover between 10% and 100% of the cost to bring your home up to code if there have been any new or changed construction codes since it was first constructed.

You will need to make an inventory of your home’s contents that were destroyed in the fire to receive compensation from your insurer. To make the settlement process go quickly and smoothly, make sure to provide the description; total cost of replacement, including sales tax; life expectancy; and age of each item. Don’t forget to verify the replacement cost by including the retailer’s name and phone number and salesperson’s name -or- the web addresses for any prices you obtained online. The average percentage of depreciation can be figured by dividing the age of the item by its average life expectancy. You will be paid the withheld depreciation difference on your destroyed items when you replace them with comparables if your policy only covers replacement value.

Additional living expenses, such as rent or a comparable furnished living area, may also be paid under your policy. Of course, this will be minus those expenses, such as mortgage payments and utilities, not directly resulting from your home having been destroyed. Coverage is usually a maximum of 20% of your home’s insurance limit and will generally continue for 12 months or less. Even if your home isn’t damaged, your living expenses may still be covered if your home is uninhabitable by government order. This coverage will end when the government allows you to return to your home.

The right coverage can ease some of the trauma a fire disaster causes to your life. However, you must know what you have and how it works to determine if you have the right insurance coverage in place to met your needs.

Do You Really Need Full Replacement Insurance on Your Current Building?

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The owners of a new company found a building on the market for an affordable price, so they bought it. Built in the 1940’s to manufacture aircraft for the war effort, the metal structure had a large open space. The company occupying this space was in the software development business and the building was much larger than it needed, but the price made it seem like a sensible move. However, the owners got a surprise from their insurance agent about property coverage. Insurance companies base limits of insurance on the cost of replacing a building exactly as it was before the loss. The cost of reconstructing this old building was much higher than both its purchase price and that of other suitable properties. The company did not need that much insurance, and paying the higher premium for it would have been wasteful, so the owners asked the agent for alternatives. What if, they asked, we don’t rebuild our building as it was?

After a fire or some other catastrophe destroys a building, its owners may decide not to rebuild or replace with a similar structure for a number of reasons.

  • As was the case with the software company, the current building’s design may be impractical. The company bought the building because of a good price, not because of its large open space. A software developer ordinarily does not need that much space; if it were to rebuild, it would almost certainly choose a smaller building with a different layout. Also, very old buildings often include materials that builders do not commonly use today, such as plaster and lathe. Reconstruction with these materials is expensive and often unnecessary for the continued operation of the business.
  • The company may decide to consolidate the operations of two locations into one. The second location may have the capacity to absorb the first one’s operations, and management may feel that it will gain efficiencies by consolidating.
  • Depending on the building’s age, it may not meet current building codes. The local government may require any new buildings to meet expensive new codes.

The standard business property insurance policy states that the insurance company will pay “actual cash value” — the cost of replacing the property minus an amount for depreciation. However, it offers the option of valuing a loss at replacement cost without deduction for depreciation. A business that chooses this option will need to purchase the amount of insurance equal to the cost of replacing the building “as is.” The company will pay the difference between the actual cash value and the replacement cost only if the property owner actually rebuilds or replaces the property, and then only if he does so as soon as reasonably possible after the loss. The policy also provides a small amount of additional insurance (typically the lesser of five percent of the insurance on the building or $10,000) to cover the increased cost of construction resulting from changes in building codes.

Businesses like the software company, who do not need an exact replacement of their current buildings, should ask their agent about adding a “functional building valuation” endorsement to their policies. It establishes a limit of insurance somewhere between actual cash value and full replacement cost and allows the property owner to replace the building with one that fulfills the same function as the old one at a lesser cost. The discussion with the agent should also include increased “ordinance or law” coverage to provide additional insurance for increased costs from new building codes. With the right attention to detail, a business can get the property insurance it needs without having to waste money on unnecessary coverage.

Buying Insurance with Minimal Stress

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Some might call it an understatement, but most people do not thoroughly enjoy the insurance buying experience.  As your agent, we try our best to instill the peace of mind that should come from the sometimes cumbersome process of insuring your home, auto or business.   These tips should help make your insurance buying experience less stressful:

·Work toward common anniversary dates for your coverages.

Although most people buy insurance when they need the coverage, it is a good idea to shoot for common anniversary dates for all your policies.  Here are three reasons:

  1. You kill several birds with one stone (apologies to ornithologists and the ASPCA).  That leaves the rest of the year to enjoy your freedom from the mundane aspects of applications and check writing (unless you finance your premium). 
  2. You have a designated time of the year to think about insurance, decreasing the likelihood that something will fall between the cracks.  If February 13th is the common anniversary for all your coverages, it becomes less likely that you will forget to renew your policies on time.
  3. Just as it becomes more compartmentalized for you, the same goes for us.  While we are always thinking about your needs, it is easier for us to evaluate your entire portfolio and make suggestions if you are renewing your coverages all at once. 

·Avoid common industry crunch times, like mid-year or year-end anniversary dates that strain the resources of workers in the industry. 

Think about it, from Thanksgiving to New Year’s more people take vacations than just about any other time of the year, no matter what the industry.  The insurance industry is no exception.  You can usually work on changing your expiration date, either by elongation, i.e., exceeding an annual policy term (not all insurers allow this) or by what is called a “cancel/rewrite” whereby your old policy is cancelled midterm and a new policy is issued.

·Reduce the number of payments as much as possible. 

While financing business coverages may have tax benefits that offset some of the interest you will pay, in most cases, both personal and business, it’s beneficial to reduce the number of payments you have to make.  This reduces the likelihood of forgetting to make a payment, or if your payments are made via credit card or check, it reduces the likelihood that there will be a disruption in coverage due to a change on the withdrawal account, i.e., inadvertent cancellation or suspension of the account.

·Renew early.

Do not wait until the last minute to renew your policy.  Depending on your degree of involvement in the process, it is usually best to tackle renewals early.  Often, underwriters request that all information is in their office at least 30 or 60 days in advance of the renewal of the policy.  This ensures that there will be no surprises for you (or for the underwriter).

Generally speaking, it is best if you think ahead, both in the initial purchase and in the renewal of your policy.   While your primary concerns should be purchasing the broadest possible coverage at the most affordable price, consider these tips the next time you are in the market for an insurance policy.