NEWS
ACT
OCTOBER 2013
52
As your insurance policy
renewal looms, it pays
to take it by the reins.
Mike Chalmers
reports
for
ACT
.
I
nsuring your company and its
operations year after year can become
as complicated as many of the jobs
you undertake. As you contemplate your
upcoming insurance renewals, it never
hurts to consider some practical tips from
some of the top brokers in the industry.
Fortunately, we’ve gathered three of the
best here for you in an effort to untangle
some of the more notorious snags, and
keep you focused on getting the most out
of your business.
I sat down with Jeff Haynes (USI),
Dave Wittwer (Hays Companies) and
Rick Emery (Emery & Karrigan, Inc.)
to address renewals and the often tricky
process of putting your company’s
insurance in the hands of an agent who
knows how to navigate risk management,
while also representing the best interests
of your enterprise.
Start early
When it comes to renewal dates, all three
brokers recognize the benefits of getting
an early start.
“Assuming the company is going
to continue on with the same broker
(agent), then the general rule of thumb
would be 90 to 120 days,” says Haynes.
“But by starting 120 days out, it will allow
the company to work with the agent to
understand all the claims issues and give
some time to mitigate the impact they
might have in the bidding process.”
Haynes suggests allotting a little more
time if you plan on shopping around.
“If the company is going to go through
a broker selection process, then they
should get started at the 180-day mark,”
he says.
Wittwer agrees. “Depending on the
complexity of the insurance and risk
management program, it could be six to
nine months prior to the expiration date,”
he says. “However, for most companies,
120 days in advance of the expiration date
is a fair general guideline. Underwriters
receive hundreds of submissions; it is
critical that your account be positioned in
a manner that leverages the opportunity
for the best terms available.”
Emery points out that the history of
your account is especially important if
and when you find yourself shopping
around.
“Each account has a ‘loss history’ that is
displayed for each company the account
has been insured with for the last five
years,” he says. “All insurance companies
working on an account want the loss
history to be within three months of
the effective date of the coverage being
quoted. Because of this, it does
not make a lot of sense to begin the
renewal process sooner than three
months prior to the effective date of the
policy. The early start allows enough time
to gather underwriting information that
is required by each insurance company
approached.”
Specific documentation
A common question the three experts
receive: How specific do my documents
need to be?
“Very,” says Wittwer, while echoing
Emery’s assertion about loss history. “Five
years of loss history by line of coverage
is ideal. A detailed narrative of any large
losses (over $25,000) is incredibly helpful.”
Wittwer also emphasizes that details on
safety, risk management and training are
critical.
“For example, does the company have
Renewal
THE AUTHOR
MIKE CHALMERS
serves as
editor-in-chief for Thrive
Creative Services LLC,
a creative copywriting
agency based in Chicago.
ABOUT THE PANELISTS
JEFF HAYNES
is USI’s
National Construction
Practice Leader, focusing
on Heavy Equipment
Contractors (HEC). For
more than 30 years,
Haynes has concentrated
on knowing the HEC business from a
“ground up” operational perspective and
building effective risk management and
insurance solutions, allowing his clients to
achieve a competitive edge.
DAVE WITTWER
is Vice
President of Business
Development and a
P&C Practice Leader
at Hays Companies
(Salt Lake City office).
Wittwer’s experience
includes insurance program formation and
development, alternative risk structures
and specialized risk management products.
Over the last 25 years, he has founded or
co-founded two insurance agencies and
brokerages, and has served in senior level
executive positions, management advisory
roles and direct sales positions.
RICK EMERY
left public
accounting in 1991
and joined insurance
specialists Emery &
Karrigan, Inc. In 1995,
he became a partner, and
has retained the role of
President since 1996. That same year,
Emery & Karrigan transitioned away from
all other industry groups, and specialized in
Crane & Rigging – writing accounts across
the entire company.
‘‘
”
Depending on the
complexity of the insurance
and risk management
program, it could be six to
nine months prior to the
expiration date. However,
for most companies, 120
days in advance of the
expiration date is a fair
general guideline.
DAVE WITTWER
Vice President of Business Development
P&C Practice Leader, Hays Companies
