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Insurance Tips “101”


With today’s Insurance market being as “tough” as it is, “Extra Care” is advisable and in some cases required. There was a day when a client that had a “bad run” of claims, could always find another insurance company to take on the renewal or the existing company would just surcharge the policy. Today I have had a few situations where only one insurance company has even offered a policy. I have even gone as far as to Lloyd’s to write business, when that becomes necessary you know you are talking “big bucks”. Even then they do not write everything!

Did You Know:

1. Poor housekeeping adds to the probability of a serious fire loss by (1) providing more places for a fire to start, (2) it makes it easier to develop and spread by providing additional fuel for the initial fire to feed on and (3) it increases the potential for spontaneous ignition.

2. Impairments to your buildings alarm system, planned or unplanned, affect the ability of the system to detect a fire, temperature change or notify you of a power outage.

3. Regular self-property inspections are essential to identify potential hazards. What should be checked and maintained are the alarm system, Generators and Rodent bait stations. A checklist or logbook should be used to identify these hazards and what corrective action needs to be taken. Note: Some insurance companies now require monthly checks with a log report.

4. Remember to obtain certificates of insurance from contractors performing work on your site. This simple verification process can save money & time when trying to settle a loss caused by the contractor.

5. To reduce trip and fall hazards, low hanging chains on posts should be identified with a colourful plastic cover tube or ribbons. Also, look for trip and fall hazards located in grassy areas.
6. Check sump pumps to ensure they are operational and a good idea is to have it hooked up to your alarm system.

7. Lighting is an effective feature to enhance property and is a cost effective security feature. All outdoor lights should be checked regularly to ensure they are operational.

8. Ensure fire doors are kept in the closed position or equipped with automatic self-closing devices. Note: When building a new barn check with your insurance broker to see if there is any benefit to installing fire doors with firewalls.

9. Electrical rooms should not be used as storage facilities. These rooms should be checked periodically as part of a self-inspection program to ensure they are free of any storage. You could note it on the new checklist that you now have.

Today’s farmers should purchase insurance from people who know farming. Farming should be viewed as a business, and you should seek advice from people who understand your business.