Insurance Purchasing 101

Over the last 5 years security, investigation and electronic security agency insurance costs have been in a soft or down market cycle. This soft market differs from past soft markets in that costs insurers are providing to security agency businesses appears to be market capacity driven not claim experience or profit driven. Unless insurers plan on denying or disclaiming claims it may be hard for the current pool insurers to make any kind of underwriting profit at current market pricing levels.

To prepare your business for the next hard market (market when insurance costs go up) we have learned over the last 20+ years that professionally completing an insurance application can and usually does lead to a favorable result when the market for insurance is trending cost upward.

Underwriters want to see fully completed applications, claim reports with summaries, supplemental information relating to quality control, training and pre-employment screening and the background owners have in the security industry. Taking the time to fully complete an application for insurance will help you protect your business and your bottom line by giving your broker or agent the information they need to evaluate your exposures to loss and match up insurance coverage to your exposures. It also tells insurance company underwriters that you are serious about your business and protecting it from lawsuits, employee injuries, auto accidents and employment related grievances.

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