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The Benefits of Loss Prevention


With the costs of insurance claims rising, we are starting to see insurers working to reduce their claims costs.  There are a variety of ways that this is done; working to maximize efficiency with clean up and rebuilding costs in claims.

One common sense way to reduce the expense of insurance claims is prevention.  Several insurance companies are very proactive with providing loss prevention resources.  The best in the industry employ trained loss prevention experts who perform on-site surveys of your location(s) as well as provide businesses and farms with suggestions and resources to reduce liability risks. 

In this process, there should be mutual benefit for both the insurance company and the insured, as the premise behind loss prevention is to stop claims before they happen.  When this is done well, it is a consultative approach between the loss prevention consultant and the client. 

From a broker’s perspective, we have been on many loss prevention visits with our clients and insurers, and have seen both very positive and some challenging situations.  Here are a few things we recommend to ensure your loss prevention visit goes as well as possible:

  1. Dedicate time to the loss prevention process.  This is your chance to learn from someone very experienced in loss prevention.  This is also your opportunity to make a great impression on your insurance company, which ultimately gets passed on to the underwriter who will be rating and determining the coverage available for your operation.  Dedicating time to the process is a small investment in protecting your business, stabilizing your insurance rates, and hopefully learning something new as well.
  2. Prepare in advance.  Spend a few minutes sweeping the floor, clean off your desk and put your best foot forward with showing off your operation.  If your business involves advanced liability risks such as manufacturing or selling goods worldwide, have a sample of your standard contracts, standard manufacturing processes, and safety plans available for the consultant.  As we mentioned, this is your chance to make a good impression on your insurance company, so spend the time to make this process the most beneficial for your business. 
  3. Invite your broker to participate in the process.  Your insurance broker should be doing more than simply getting paid to pass mail between your insurer and your post office.  Having your broker as part of the loss prevention process keeps the guess work out of the process if there are recommendations you will be implementing after the survey.  Your broker is also negotiating coverage and rating on your behalf each year, so having them in the loop allows them to answer questions that an underwriter may have when reviewing the survey summary.
  4. Ask for next steps, before the consultant leaves ask questions.  Is there anything else that you would recommend to make our operation safer?  Is there anything you have seen from our colleagues that would improve our processes?  How are the recommendations that you have going to be communicated to us?  What is the timeline for these recommendations to be completed?  How soon can we start implementing what we have learned from you today? 

Still worried?  Consider making Rempel Insurance Brokers your insurance broker of choice and we will represent you, review your risk, and provide you with loss prevention resources.  We work hard to make sure you are prepared for the loss prevention survey, and walk alongside our clients to ensure they have the resources required to prevent losses before they happen.Be sure to seek advice and purchase insurance from those who understand your business!