67
RISK MANAGEMENT
FEBRUARY 2014
ACT
BIO:
Brent Moody
is assistant
vice president,
underwriting, for
NBIS.
Brent Moody
contends that
insurance is not a
necessary evil, rather
a necessary cost of
doing business.
M
aybe insurance is a dirty
word to you. Something
you have to deal with once
a year. Something you look forward to
about as much as an afternoon car wreck.
Right up there with heading to the DMV
to have your driver’s license renewed.
Insurance for the crane and rigging
industry is complex. It can be expensive.
But ultimately, it is a very necessary cost of
doing business. Due to its complexity, the
majority of your friendly neighborhood
state governments, in conjunction with
a multitude of insurance companies,
have mandated that you as a prospective
insured hire someone to represent your
interests when it comes to purchasing an
insurance policy. Why?
Your liaison
Think about it. Do you want to spend
countless hours analyzing coverage forms?
Do you have time to sift through a 90-page
policy to try and figure out if property of
others in your care, custody, or control
is covered? Consider premiums. Let’s say
you get a quote for $50,000. Is that good?
Terrible? Illegal? How would you know?
After all, we’re not talking personal
auto insurance or a term-life policy here.
Insurance coverage for the specialized
transportation and crane and rigging
industries is as complex as it can be costly
and construction contracts are becoming
more and more populated with legal
jargon impacting indemnity and ability to
transfer risks.
Without a knowledgeable liaison, you’d
be left to navigate this maze of words and
procedures on your own and if we can
be honest, you’ve got better things to do.
Michelle Luna from Brennan & Stuart,
Inc., insurance and risk management
professionals in Illinois, reminds us:
“Insurance isn’t black and white. It is
important to have a trusted advisor to
assist in the navigation of coverage and
retention options. Every situation is
different, every client is unique.” She asks,
“Can your agent work for you as a trusted
advisor to navigate coverage options and
make informed decisions by illustrating
the impact to their business?”
Dennis Ianovale and Kevin Forbes from
ECBM Insurance Brokers & Consultants
in Pennsylvania advise buyers to beware.
“We continue to be surprised by the
coverage limitations and exclusions many
crane and rigging companies have in their
existing policies when we review them,”
says Ianovale. Forgetting the impact
of claims handling to the next years’
premium, he tells us, “Far too often, it
becomes clear they have been working
with an agent who provided a low cost
premium with limited coverage, leaving
the insured with excessive cost when they
have a claim and an exponential increase
in premium that could have been avoided.”
Forbes and the team at ECBM focus on
understanding the business operations
and exposures first, then define the
coverage necessary to protect the insureds.
“Having the experience we do within the
specialized transportation and crane and
rigging industries, we know what coverage
terms are needed to make sure the policy
you paid for will back you up when it is
needed.”
Someone who knows you
That’s exactly the type of understanding
you want to see in the agency representing
you and your company in the insurance
marketplace. You want an agent that
knows insurance better than insurance
companies. You want an agent that
works with other organizations like
yours. You want an agent that can
translate contractual language so that you
understand exactly the kind of agreement
you are entering into. That agent should
be able to look over the insurance
requirements of your biggest clients and
know precisely what coverages you need
as well as the best places to purchase them.
Michelle Luna reinforces, “It is important
to our clients that they are working with
someone who understands their industry.
Our clients are confident that they can
hand over the responsibility of making
sure that they are properly insured.” Your
agent is the face of your organization
when dealing with insurance companies.
Company underwriters, especially in the
crane and rigging industry, want to work
with knowledgeable agents. That guy
sitting in an office 2,000 miles away from
your address has no idea what kind of
company you are running. It’s your agent’s
job to “paint the picture.” The better the
relationship between your agent and the
THREE SIMPLE QUESTIONS
When you choose an insurance agent/
broker, ask three simple questions:
1
EXPERIENCE:
How long has (fill in the blank) been
in their particular industry?
2
CREDIBLE:
Has (fill in the blank) successfully
worked with others in my own
industry?
3
EXPERTISE IN YOUR INDUSTRY:
Do you have projects on or near
the water and has your agent
checked your policy for waterborne
exclusions? (Scenario situational)
Necessary cost
of business
>68
