You trust your broker or agent to place you with proper coverage for your business activities. Then the next time you hear from them is at time of renewal. They are professionals at selecting and binding coverage for you, but you may not know that what they’re not doing for you is costing you. Big.
If you have work comp, property damage, injury/accident, or auto claims you need to know that it is NOT the broker or agent’s job to help manage the claims within the policy. It’s yours.
Many business owners assume wrongly that when they hand a claim off to the insurer’s “claims department” it will be handled expeditiously and to the policyholder’s benefit. This simply is not true. Abdicating this part of your business, the administration of your claims within your policies, will rapidly eclipse the cost of your premiums and bloat the ultimate cost of your losses.
Having spent years on the insurance side of the industry I feel confident when I say letting an insurance company handle your claims for you is like opening the door of your walk-in to a monkey wearing a badge that says “Food Inspector.” It’s going to cost you!
Particularly with your workers, it makes no sense to hand off your injured employees and assume the insurance company will handle their claim well.
Consider this example: H.C. was managing the equestrian operations at an event center which conducted hayrides during barbeque events. When the horse spooked and bolted, nine passengers went to the ride of their life while H.C. was dragged by the reins and thrown into a tree; her hospitalization and subsequent surgeries topped the $300,000 mark in just days and her recovery took nearly a year. In the meantime, the company wrestled with the fallout of a traumatic customer experience. Handling this is not the job of your broker. It isn’t the job of your insurance company to handle these situations either.
Employers and businesses who fail to vigilantly oversee and ensure the quality administration of their claims risk inadequate handling by an insurance company who is not only not monitored by the broker, but who stands to benefit in the form of future, larger premiums from you. Like you need more on your to-do plate, right?
Holly Powers-Verbeck runs MakeYourBusinessCook!, She holds insurance degrees, credentials and licenses in Risk Management, Insurance administration and OSHA. As a consultant she works to help you bring injured workers back to the job; reduce the cost of, and close outstanding claims caused by injuries and accidents in the business and workplace.