54
ACT
AUGUST 2013
RISK MANAGEMENT
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Driving under the influence
of alcohol/drugs
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Speeding
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Distraction by iPod, GPS,
cell phone, etc.
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Fatigue
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Following too closely
■
Illegal passing maneuver
■
Poor visibility
■
Truck equipment failure/
defect
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Cargo overloading
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Improper braking/
jackknifing
TOP 10
CAUSES OF
TRANSPORTATION LOSS
Your bes
Brent Moody
reports
that claims associated
with specialized
transportation can
impact your policy in a
big way.
S
o how does a superior
approach to claims
management benefit an insured
beyond the scope of claim payments and
pro-active defense measures? Incurred
losses ultimately impact insurance costs
right?
It is important to examine the standard
claims/underwriting department
relationship that exists within many
“big box” insurance carriers. Much of
the claims process is contracted out to
third-party administrators (TPA). The
performance of these organizations is
typically tied to closing out as many open
claim files as possible in any given month.
To be fair, this approach is oftentimes a
good one to take. The quicker a check is
cut the lower the likelihood a small claim
turns into a much larger one.
The drawback to this model lies in the
relationship between this unit and the big-
box carrier’s underwriting unit.
With the TPA setup, these two are rarely
located in the same state, much less the
same building. If an insured experienced
a significant loss during the policy term,
there is little communication between
claims and underwriting concerning the
particulars of any claim event. It becomes
a classic case of pure numbers analysis. A
$100,000 claim was paid, and the renewal
policy premium increases. Expect very
little dialogue between the underwriter
pricing the policy renewal and the adjuster
who paid the claim. No distinction is
made as to the extent of the insured’s
negligence or the readiness of the TPA
to cut a check in order to get a claim file
closed out.
This highlights a key aspect of the NBIS
difference, which has both legal and risk
management personnel with expertise in
identifying and managing precisely these
types of scenarios. The NBIS underwriting
department is adjacent to the in-house
claims department, and claims,
underwriting, legal and risk management
units all work as a cohesive group to
ensure clients receive the full arsenal of
services and expertise available to them.
Many companies can fall victim of the
old adage, “Bad things can happen to
good people.” Recognizing this reality, it is
important to do business with a company
that strives to be a market leader for its
insureds and brokers when a claim is
presented.
Potential claimants are barraged by
advertisements from plaintiff attorneys
that specifically target the crane and
rigging and specialized transportation
industry. These advertisements, often
heavily distorted as to legal realities, can
trigger claims that, at best, are void of any
factual basis. It is the claim department’s
responsibility to recognize and distinguish
between legitimate, valid claims against
the companies it insures and those claims
which have no legitimacy, either in fact or
by law.
From the moment a claim is presented,
a claims department should work in
concert with the insured and brokers to
conduct a complete claims investigation.
Your provider should utilize the services
of professional, experienced and industry-
knowledgeable adjusters, appraisers,
experts and attorneys to the fullest extent
necessary to conduct investigations.
The complete investigation process is
conducted under the direct guidance of
claim professionals who have specific
claims experience with respect to the
crane and transportation industry.
Throughout the claims process, regardless
of the nature and extent of the claim, your
claim professionals should work closely
with the insured and brokers to make
certain that claim resolution efforts are
transparent and explained.
‘Shockloss’ investigations
For those claims that present significant
financial exposures, whether as to
property damage or bodily injury
liability, NBIS has adopted an escalated
investigative process that involves all levels
of management. We refer to this process
as a “Shockloss” investigation. In these
cases, all of the professional, technical
and management experience at NBIS is
brought to bear on the claim or claims
being presented against our insured.
Here again, the insured and the broker
represent key NBIS business partners as a
“Shockloss” investigation is commenced.
As our investigation proceeds, the
realities of the accident facts and the
legal issues presented in relation to those
