The benefits of a Master Policy

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We have all heard the phrase “Cheaper by the Dozen." This means that things are handled more efficiently as a group than individually. This same principle can be applied to insurance as well. More specifically, property owner’s insurance and whether that be rental properties, apartments, or other commercial buildings, there are many benefits to an insurance consumer that can be achieved by combining multiple insurance policies into one master policy. 


The first benefit, and probably the one that consumer’s value the most, would be the premium saved by combining policies. Using the “Cheaper by the Dozen” example, say you own 12 rental properties and currently insure them all on their own separate policies, each costing you $1,000 for the year ($12,000 total). If you could combine them into one policy, the larger premium amount will allow you to gain a “bulk discount” of say, 10%. Your annual insurance premium would then drop from $12,000 to $10,800, saving you $1,200 per year. Over an extended period of time this kind of savings could really add up. With the larger premium for the portfolio you may be able to better absorb a loss vs. a single location premium.


In addition to saving you money, combining your insurance policies will make your life easier. Imagine reducing 12 separate renewal dates into just one common effective date. Handling everything once a year instead of 12 different times will make the task of managing your insurance portfolio much simpler and give you more time to focus on growing your business. 


To find out more about the many other benefits of combing your insurance policies into one master policy, I can be reached at 405-507-2734 or nbritten@pi-ins.com
 

Percentage deductible? What is that?

What is a “percentage deductible?”

A percentage deductible is a calculated deductible based off of the total insured value on your property policy.  For example: you have your hotel or apartment insured for $3,000,000; the contents insured for $250,000; and, your annual receipts/business income insured for $250,000. Your total insured value would be $3,500,000.  With a 1% wind/hail deductible, your deductible would be $35,000.  

I know this topic may seem elementary, but I’ve spoken with several clients and learned they had been misinformed on how a percentage deductible works. 

As your agent, I will always strive to get a flat deductible. Questions? Let’s talk. 

Sean

Costs to consider when bidding for jobs

These days everyone wants to know the upfront cost of a project.


When you bid jobs, the General Contractors (GC) look at cost along with what you will do and what material you will use. Let’s look at some costs to consider when bidding for jobs.


Auto Coverage

For ease, let’s assume all your drivers have clean motor vehicle records (MVR). For a one-ton truck, you are roughly looking at a $1,000 annual premium with $1,000,000 liability and a $500 deductible for comp and collision. A variable would be if you have a fleet of ½-ton trucks. 

Now, are you having the employees who drive your trucks provide their MVR’s? Many factors play into you having their records. One example would be the cost of having a driver who has 2 DUI’s vs. a driver with a traffic ticket for rolling a stop sign. But hey, that’s what insurance is for……right? The easy answer is “yes” but you could end up spending your valuable time away from a job site with dealing with these issues. 


Workers Comp Coverage

Again for ease, let’s assume you keep perfect books and split all of your payroll between landscape maintenance and landscaping. As you know, landscape maintenance has a much less expensive rate than landscaping. There is a lot that goes into calculating the workers comp premium, but let’s say your maintenance rate is $4.50 per $100 in payroll and the landscaping rate is $9.00 per $100 or $4,500 per $100,000 and $9,000 per $100,000 in payroll. These figures are based on no workers comp claims within the past 5 years.

What is your protocol when an employee is injured? Do you have a doctor you trust or are you relying on an unknown doctor who keeps your employee in the workers comp system for an unknown length of time, ballooning your claim? Also, do you stay in touch with the injured employee? Do you keep an open line of communication to prevent them from getting bad advice?


Equipment Coverage

Let’s say you have $140,000 worth of equipment and it’s insured for a premium of $1,000 and a $500 deductible. Damage? Destruction? If you have provided the equipment year, make model and serial numbers, we can get you replacement cost as opposed to actual cash value. What is actual cash value? In essence, it’s depreciation. Kind of like a used car value. We have the only company our there that will give replacement cost on equipment. They don’t just write you a check, they’ll find you the equipment just like the one you lost.


General Liability

What types of contracts are you getting yourself into? Are you doing large jobs for larger contractors or sticking with smaller residential companies? Do you hire sub-contractors? If so, is there a written contract? There are certain coverages in an insurance policy that kick in as long as there is an actual contract in place. NO HAND SHAKE DEALS. Friendship goes out the window when large sums of money are involved. Make sure you are protected. Have contacts in place with sub-contractors and let us look at the contracts you are signing.


Did these topics bring more questions to mind? If so, let’s talk. This is what we do. These are the questions we ask. 
 

How A Wellness Plan can save you on Workers Comp premiums

wellness workers compensation plan

Many companies are now considering wellness plans and how they can help reduce health insurance costs. With health insurance costs on the rise every year, I can see how this becomes a topic for health insurance brokers and TPA’s (Third Party Administrators) to explore. What is seldom talked about, however, is how a wellness plan can reduce your Workers’ Compensation costs.

When we are looking at ways to cut costs, the addition of a wellness plan is an expense that just might pay for itself. Consider that a Duke University Medical Center analysis found that obese workers filed twice the number of Workers’ Compensation claims, had seven times higher medical costs from those claims, and lost 13 times more days of work from work injury or work illness than non-obese workers did. Further, smokers were absent from work 50% more and took longer to recover from injuries. With Workers’ Compensation costs continuing to rise, a wellness plan can promote the balance between treating injured workers and returning them to work with cost containment strategies.


By implementing a wellness plan and incorporating it into your workplace accident procedures, the ROI (Return on Investment) for Workers’ Compensation alone is estimated at 4:1. Knowing this, some companies are starting to involve the risk management department in the development and implementation of wellness plans and then offering it to injured workers as a way to get them back to work quicker.

Because the best, and easiest way to educate employees and get them engaged in wellness is through their health insurance, many companies are now offering incentives to encourage participation in wellness programs such as lower deductibles, additional employer contributions to HSA accounts, lower coinsurance, etc. On the flip side, others are introducing the “stick” approach whereby deductibles and co-payments are higher, etc. for not participating in wellness initiatives such as smoking cessation plans or health risks assessments.

The real savings derived from a wellness plan that is often overlooked is the cumulative savings when it is incorporated into a company’s benefit package. For example, add all the savings that the health insurance community describes with the Workers’ Compensation facts I just explained and the savings from both sides are exponential. If you are under a fully insured (standard) group health plan and a Workers’ Compensation fully insured plan, this could be a good savings. If you are self insured or insured in a captive or large deductible, the savings could be even more and would start immediately in this case as the cash flow is more rewarding early on with this type of plan.

Would all industries benefit from this approach? Since Construction, Oil and Gas, Service, and Manufacturing pay much higher Workers’ Compensation rates than industries primarily with office workers, they stand to benefit the most from implementing a wellness plan. If I were a CFO at one of these companies I would consider this immediately.

Chris Moxley, CIC

Real Cost of Your Property Insurance

What is your TCOR (Total Cost of Risk) for your Property Insurance?

Property Insurance Real Cost

Many Businesses look at their Insurance Premiums as their cost of risks from year to year and do not take into account what their real costs associated with their property exposures are.  You hear a lot of discussions about Workers Comp and Liability when talking about Total Cost of Risk but very little is said about your property exposures. 

The Total Cost of Risk (TCOR) is defined as the overall costs associated with running corporate risk management program.  These include such items as:

  • Insurance Premiums
  • Deductibles
  • Uninsured Losses or Losses exceeding Insurance Limits
  • Risk Control or Safety Expenses
  • Management's time in dealing with issues (claims, contractors, moving tenants)
  • Reputation with Insurance Companies (future premium increases)
  • Loss of Reputation in Community
  • Fines (City, State, Federal)
  • City or State Mandates (ordinances) that force upgrades after a loss

When looking at these issues, most would have to agree that avoiding the loss is by far the best way to lower your TCOR and a key component of risk management.  Even though many say that there is not much they can do to lower their risk cost or, “it is just luck” that could not be further from the truth. 

Here are some items that can lower your TCOR for your property exposures:

  • Inspections of Property to identify problems to prevent losses
  • Fire safety equipment such as extinguishers, alarms, & sprinklers
  • Properly Value Properties before loss
  • Contractor Hiring & Risk Management Transfer
  • Proactive improvements to property such as electric, roofs, plumbing, etc.
  • Disaster Recovery Plan
  • Tenant Screening where applicable

We will explore these in future articles.

Chris Moxley, CIC, CRIS

Do you have a Disaster Plan?

disaster plan oklahoma tornado

As we approach weather season, let's talk about your disaster plan. I have discussed in the past that a good Disaster Plan is critical to reduce your total cost of risk. When we ask clients about their disaster plan, I usually hear, “no we need to work on that” or, “yes our computer guy has us taken care of”.  The problem with the first response is obvious but when I dive into the latter scenario,  I often find many holes in their program.  As we know, having your computers backed up is very important and most of us think and expect that that is being done properly.  Even though you may find that the backup is not being done as good as it can be done, a bigger problem is what are you going to do with that data if your building is a total loss due to a fire, tornado, or ice storm?  Even if your data survives, most businesses never recover from a total loss at their property.  Below are some important elements of a complete Disaster Plan:

  • Data Backup and Recovery – This includes software and not just data.
  • Written plan with procedures,  and contacts.  Copies of relevant data for each key employee  should be kept at their houses.
  • Facilities & Power - If you are shut down, for many types of disasters, so is your power.  Who will provide power, computers, office space, warehouse space, and internet or phone connectivity if these are out.  A disaster can include a major cut in your internet service without any type of natural disaster being the cause.  We partner with firms that provide these services to our clients.
  • Testing – If you plan has not been tested, it will probably fail or not obtain it’s desired result.  Everyone we know that has tested their plan has found huge problems they had to fix after the test. When you test, you should simulate a complete loss and restore just like you would have to do in a disaster.
  • Funding – Now that you have the plan to take care of all of this, who will pay for it?  It’s important that your Risk Advisor structures your insurance to properly fund your plan.

Managing your Risk when you sign Sign Contracts

Risk management in Oklahoma and signed contracts.

 What you sign can impact your Total Cost of Risk as much as anything else you do.  Yes that signature you sign in haste just to get that invoice paid, or obtain that lease before anyone else, can be a huge risk to your business.  Many business owners do not have anyone review their contracts before they sign them.  Below are just some of the contracts business owners sign that should be reviewed by an attorney and insurance broker or risk consultant:

  • Leases (property)
  • Automobile or Equipment Leases
  • Construction or Service Contracts – This includes subcontract agreements with any subcontractors or service providers or contracts where you may be the owner of the property for work being performed.  An example of this might be you hiring a General Contractor to do a roofing project for you and he hires a subcontractor to do the work.  You should review this contract as well.
  • Distributor Contracts – whether you are the one selling the product or the buyer

What are we looking for?  An attorney should be looking at the entire contract including how you will be paid and when or how you can get out of the contract.  Your Risk Consultant or insurance broker should be looking at:

  • Indemnity Clauses or Hold Harmless agreements – are they fair? Are they insurable?
  • Does your insurance cover as many of the exposures that you are assuming as possible – (many are uninsurable)
  • Does the contract use modern Insurance Language -  Many are still patterned after policies first introduced in 1973.  Those were modernized in 1986 and much of the wording could be out of date if not modernized
  • What can be taken out or changed that benefits you – If we can suggest changes in language that reduces your exposures, many times that can be negotiated before you sign the contract(s)
  • What endorsements need to be added to your insurance to meet the requirements and how much will it cost you?

Using Multiple Entities to Limit Risk Exposure

Question:  Why should a business owner use different LLC’s (or corporations) to help manage their risk and exposure?

Forming multiple companies, holding companies and Oklahoma business Insurance programs.

Answer:  First of all, legally speaking, it’s important to understand that LLC’s (or S-Corps or C-Corps, whichever one you use) are actually their own, separate, “legal persons.”  This means that, just like you or me, the LLC (or corporation) can actually sue and/or be sued as a separate, legal entity (Note: the only difference between you being your own, legal person and the LLC being its own, legal person is that you, as a human being, in addition to being a separate, legal person, are also what’s called a “natural person” who is, medically speaking, an entity that is alive and breathing!).    

Second of all, as a business owner, it’s important to understand the incredible importance of having your various interests owned by various LLC’s (or corporations) because doing this, in and of itself, is actually a great way to perform the critical function of risk management.  How does it work?  Read below.

For example, let’s say you’re a business owner who owns a plumbing company with 50 plumbers, 50 trucks and you own a 5 acre tract of land which contains your warehouse building and your administrative offices.  You own all the land, the offices, the trucks and the warehouse building.  Accordingly, you’d likely want to separate out your ownership of these various assets in the following manner:

 A)     You’d want to change the ownership of the trucks from your personal name (or from the one, single LLC or corporation that currently owns everything associated with your entire business) to a different, separate LLC - let’s call it “Truck, LLC.”  By putting your equipment into Truck, LLC, you’ve separated it from the other assets you own (i.e., the 5 acre tract of land, your warehouse and your administrative offices) so that, if an accident was ever caused by one of your 50 trucks, the other assets won’t be exposed or made vulnerable to any claims arising from such truck accident;

B)     You’d then do the same thing with your warehouse (i.e., Warehouse, LLC), your administrative offices (i.e., Administrative Office, LLC) and perhaps even certain pieces of plumbing related equipment (i.e., Related Equipment, LLC) which have their own unique, high liability risk factors such as: high voltage generators, tractors, backhoes, lift equipment, etc…).

This way, if any of these different categories of assets ever cause an accident (or are ever involved in an accident), all the other assets in the other LLCs will be neatly protected within their own separate, legal entity.  Is this method completely fail safe?  No.  But it’s a great way to begin doing some risk management for your company.  

Chris Griswold is an attorney in Oklahoma City. He specializes in Commercial Real Estate Law, Business Transactions, and Estate Planning. You can find him on the web at  www.chrisgriswoldpc.com


What You Don't Know About Work Comp

Oklahoma workers compensation insurance found at Professional Insurors Business Insurance in OKC.

Work Comp is a very complex policy.  Most people think they have no control over the costs of work comp costs.  However, work comp is very controllable if you are proactive and get involved.  Most importantly, hire an agent that specializes in work comp.  I want to cover just a few topics of work comp that most don't think about.

The Claims process.  When your employee got injured what did you do?  Did you send them to the Doctor who prescribed pain medication for a strained back and recommended they stay off work for a week?  Did you know that if your employee can be back at work, even light duty work, within 72 hours of his claim, you save 70% of the cost of that claim.  It's important to know the doctor you are using.  In case of a strained back, the employee could have probably been ok going home for the day, taking ibuprofen and coming back the next day for light duty. 

Did you know that when a claim occurs the insurance carrier sets a reserve amount for how much they think the claim will be?  That reserve amount counts the same as actual claim dollars spent.  It's important to always request your loss runs 5 months after the anniversary of your work comp.  After the 6th month the claims or reserve dollars shown will then effect your experience mod for the next year.  However if you get the loss runs and notice a claim should be closed, or you dispute the reserve amount, you could save money.

The longer your injured employee is out of work the worse your experience mod will be affected.  It's important that you or your agent are in constant contact with the:  Employee, Doctor, and Case Manager.  Believe it or not, sometimes work comp claims go unnoticed and you have an employee with a sprained ankle supposed to be out for a week, and he is still in the Work Comp system 4 weeks later. 

Transferring Risk.  If you use subcontractors you will always want to make sure they have their own work comp policies.  If they do not, you will be hit for their costs come audit time.   Not only do you want to collect certificates from them, you want to have them sign a contract which makes certain their insurance pays first.  In most policies, waiver of subrogation, primary non-contributory and indemnity clause are only enforced if there is a contract in place between you and your subcontractor. We have a method of protecting our clients in this area.

Hiring Practices.  You are probably thinking, how could my hiring practices affect my work comp?  First of all, are you hiring a criminal?  Are you hiring somebody that has figured out the work comp system?  You want to make sure you are at least doing background checks and drug tests.  These employees you hire are the face of your company, you want to make sure they are keeping the reputation you worked so hard for.

With regards to the recommendations I made above, we can help with all of these items.  We are setup to give access to our clients to run their own background checks for their employees.  We brought in an attorney to develop a contract for us to give to our clients who use subcontractors.  We would still advise our clients to have their attorney look over.  And relating to your claims process, we make sure we cover every angle when a claim occurs. 

If you have any Work Comp questions or would like us to take a look at your policy, please give us a call.  Sean Leigh

What Makes up your Total Cost of Risk

The Total Cost of Risk, Risk Management,and Commercial Insurance solutions can be planned at Professional Insurors Business Insurance in OKC.

Your TCOR (Total Cost of Risk) includes 3 major categories of Expenses:  Preventative Cost, Direct Cost, and Indirect Cost.  Together these equal your Total Cost of Risk.  Many people just think of their insurance cost alone but this is far from your total cost.  What is interesting is the cost you spend in one area can effect the amount you spend in another.  It is a proven fact that money spent in preventing claims or losses reduces your direct costs by several times the amount you spend.  Indirect costs are usually several times what the direct cost of a claim are so if you have some basic math skills, it doesn't take long to realize you should be spending more money in prevention of claims.  Here are some costs associated with each category that make up your Total Cost of Risk (TCOR):

  • Preventative - Safety & Risk Management, Pre-Employee Screening, Safety Equipment, Culture Management, Wellness, New Hire Training, salary of safety personnel & expenses, Personal Protective Equipment, Safety Meetings.
  • Direct- Insurance, Managed Care, OSHA Fines, Deductibles, Legal Expenses, Loss of Productivity post accident, Management time to administer Injury or attend hearings, Staff time to administer injury.
  • Indirect - Reputation with insurance carrier(s), reputation with vendors, loss of morale, loss of reputation, employee gossip, etc.

Considering all of these expenses why would anyone not want to spend more money on Preventative costs? 

Using Loss Data to Reduce your Workers Comp Cost

This is claims data on Workers Compensation in Oklahoma provided by Professional Insurors Business Insurance in Oklahoma City.

Using claims and loss data can be a helpful tool in reducing your future workers compensation losses.  Two types of forms that are readily available are your OSHA logs and your Loss Runs or Claims Reports from your Insurance Carrier.  
If you maintain your OSHA log year round, as required, it’s a great tool to provide you with information on where your claims are coming from.  It will give you dates, job titles, types of injuries, and days away from work.   The OSHA 301 will contain even more detailed information.  You can combine this with the Insurance company loss runs to obtain a good amount of information to track and trend.  I recommend an accident investigation form be used that contains all the needed information to complete all of your forms after an injury.   There are also several online OSHA tracking programs such as OSHATrac.com  and OSHA300Online.com  that will track your injuries and give various reports. 
If you have more than a few small claims, Insurance Carrier loss runs should be provided to you either quarterly or monthly.  The loss runs can be very basic so I would recommend asking the broker or carrier what reports are available.  Some will have very detailed reports available if you ask.  They will show many types of graphs and trends.  If your broker makes it hard for you to obtain this information, you could have the wrong broker.   In addition to trending, the loss runs will give you good information on what’s going on with the claim since the last loss run.  Look for changes in numbers such as paid (amounts already paid on a claim) and reserved (estimates of amounts expected to be paid on the claim) on all open claims.  We will discuss this in detail in another article.  
This information should be reviewed regularly by the CEO, HR Department, Safety Department, and Safety Committee.  They should all be looking at ways to improve your safety and prevent losses in the future by noticing trends.  An example might be that all claims in the certain department were from employees there under 1 year.  This would mean that they lack proper training and supervision and the training program could be altered to improve this situation.    
In addition to looking at past claims to identify a possible future claim, the claims information can be used for actuarial analysis to predict future losses.  This is very important if you are under a partially self funded plan or in a captive because it will allow you to predict your claims numbers in the future.  The more data that is available, the better the analysis will be.  Some auditors may request or require this information when performing your annual audit. 

 

Cyber Nightmare

Emerging Risks 

Cyber Liability Insurance - Professional Insurors Business Insurance OKC.

Data Breach or “Cyber Crime”

 As a Commercial Risk Advisor, I am seeing numerous stories and articles related to a new Emerging Risk that is affecting thousands of businesses and millions of people across the world.  What could a risk of this magnitude be you might be wondering?  The answer is Data Breach or Cyber Crime.  This has become such a problem that the cost of loss is the highest in history at around $5.5 million and climbing.  This type of risk comes in many forms such as viruses, internet fraud or identity theft, to name a few.  The hackers are becoming more deviant and savvy about how they attack organizations sensitive information.  One article indicated that a company overseas did not even know their system had been breached for nearly 7 months!  That is a long time for unwanted criminals to be inside a large organizations database collecting personal information.  A growing concern now is the amount of employees inside the organizations that are helping these criminals breach databases and assisting in their crime.  According to DataBreach Today.com, in 2011 the FBI charged 22 individuals in California for stealing $8 million from three large banks.  The individuals charged were either inside prison orchestrating the crime or worked for the banking institutions themselves.  That type of risk is very hard to catch even with the best security measures in place simply because employees will know their way around the system.  On October 3, 2012, Nationwide Insurance Company of Columbus, OH and Allied Insurance experienced a data breach and it affected 534 Oklahomans.  The compromised information included social security numbers, driver’s license numbers, birthdates and even their marital status.

In Germany, crime statistics compiled by the police indicate that about 60,000 cases of cybercrime were recorded in 2011.”  These are alarming statistics being released and as business owners and citizens we should be very concerned with the safety of our personal information and how it could affect the business itself due to such a loss.  If a person experiences identity theft they only have 90 days to dispute the charges, file police reports and resolve the crime.  If the theft goes unnoticed by an individual for more than 90 days, the debt becomes theirs to pay off.  Now let’s think about this for just a moment.  If a major organization doesn’t even notice they have been breached for 7 months, how would one individual know they are a victim within 90 days?  That means it is time to start being vigilant about this risk and protecting yourself, your business and your clients.   


Risk Management of Data Breach

What You Can Do

 An article posted on Entrepreneur.com in April 2010 reports the Federal Trade Commission posted these 5 steps you can take to help prevent a data breach.

 1.  Take Stock- know what information you’re keeping, how far back it goes and which records qualify as sensitive.

 2.  Scale Down- Only collect those pieces of data that you really need to make your business more efficient.  Do not store credit card numbers you don’t need or make the clients give their social security number as an identifier unless absolutely necessary. 

 3.  Lock it- Keep physical records in locked boxes and secure locations and digital records must have safeguards. 

 4.  Pitch it- Information such as paycheck stubs, bills and investment records etc. should only be kept for one full year.  After a year, get a shredder and shred the information.

 5.  Plan ahead- Prepare for the worst.  Put an action plan in place for how you will handle a data breach. 

 A risk such as this does not discriminate on the size of the business.  No business is too small or too large to be a victim.  Criminals don’t care where they get the information or how much they do get, as long as they achieve their goal.  As a Commercial Risk Advisor, I strive to advise you on these types of risks and how they could impact your business.  There is a financial risk due to these types of crimes.

With that information now being known, take the appropriate steps to minimize your exposure. First, I would consider is purchasing a Crime Policy and a Cyber Liability policy.  These polices can be called numerous other names such as Technology Liability, Data Breach Liability or Computer Fraud, to name a few.  It is very important that you are covered for your financial loss as well as the third party’s financial loss.  These policies are very inexpensive especially if you compare the numbers to what an actual loss could cost a company.

Insurance is about bringing you back to whole after a loss.  Risk Management is about being proactive, minimizing your risks and having strategies in place to make you more prepared to handle risks as they surface.  Make sure that you can recover from this widespread and now worldwide threat.  Educating yourself is crucial in protecting yourself.  The more you know, the better you will be protected.  There are other numerous ways that we can help you discover your risks and implement the best plan of action for you and your growing business.        

My Property Insurance Deductible

Risk Management for Oklahoma business insurance clients provided by Professional Insurors Business Insurance OKC.

What does your deductible mean to you?

We are all familiar with our insurance policies having deductibles whether it’s for health insurance, auto and home insurance or commercial insurance.  In the past our standard deductibles (what we are most familiar to selecting) would range anywhere from $0-$2,500 for auto and home insurance, $250-$1,000 for health insurance and $1,000-$5,000 for commercial insurance.  Have you looked at your deductible in the last year?  Did you notice any changes to the deductible?

Right now in Oklahoma our deductibles vary greatly due to the catastrophic wind and hail losses we have sustained.  The loss amounts are in the billions of dollars for our state alone.  You might still see the above mentioned deductibles in your policy listed under “All Other Perils except Wind and Hail” and then you will see another deductible listed that states 1%-5% W/H (Wind and Hail) deductible.  What does that mean exactly?  That means that for a loss that is classified as a Wind and Hail loss, your deductible amount will be 1%-5% of the dwelling or building value listed on your declarations page.  For example, if the dwelling (house) is insured for $150,000 with a Wind/Hail deductible of 2% and you suffer a hail loss to your roof, your out of pocket portion for the claim would be $3,000.00.  Imagine what that figure would look like if your business was insured for $1.5 million and you had a deductible of 3% on wind and hail.  That’s a $45,000.00 deductible that you would be responsible for!  If you are a business owner that owns multiple locations, that deductible could apply to each location as well.  That is an amount that none of us would be happy about in the event of a loss.

As we get closer to 2013, we are seeing insurance rates and deductibles rise because of the catastrophic weather we have suffered across the nation and especially in Oklahoma.  Now is the time to really inform yourself on your coverage’s and deductibles and what they mean to your bottom line.  Taking a proactive role in risk management for your business and/or home insurance is imperative now more than ever.  There are many ways you can help reduce your hazards, and control your own premiums and coverage’s.  Talk to your agent and reach out to companies such as TCOR, Total Cost of Risk, for advice and direction for your upcoming renewal.  Even though we cannot prevent Mother Nature and across the board rate increases within the insurance companies, does not mean you can’t help control your own risks, coverage’s and deductibles.  Stay proactive and informed about your policy!