INSURANCE RENEWAL ‘CHECKLIST’ HELPS BUSINESSES MANAGE DRAMATIC CHANGES IN COVERAGE

NEW YORK, Aug. 13 / PRNewswire / -Insurance is suddenly a hot topic.  Dramatic rate increases for all forms of business insurance have owners hunting high and low for the best values and most complete coverage. Damian Testa, president of Kaye Insurance Associates, Inc., a member of HUB International Limited, says that now is the time for clients to rely on a trusted broker tuned into the latest products and programs and group buying power with a large number of markets to obtain the best coverages.

"Rate increases of anywhere from 50 to 200 percent are common," said Testa.  "Business leaders must assess their insurance needs and be proactive in order to manage the current insurance environment. Brokers who are current with the daily changes in the markets are going to play an increasing role in strategic risk management."

According to Testa, there are specific steps that clients should take to deal with the current rate increases.

Start early. A week before a renewal is not the time to get the news that your rates are doubling. Policy parameters are changing, some coverages previously included will now be excluded, and there is a tremendous underwriting crunch. Call your broker early and start asking questions.

Call on someone truly versed in the market. Find a broker who specializes in insurance programs designed for firms just like yours. Not only will that broker have insight into the full range of coverages you'll need, but he'll also have access to more market options that are constantly changing.

Do your homework. Work with your broker to develop a complete picture of all the risks your company potentially faces. Your broker should act as a consultant, helping you to identify risks and compile all the information needed for rapid underwriting. Working with your broker to put together a complete, accurate overview is key to getting a faster, more appropriate quote. Underwriting departments are feeling the crunch with all the increased activity. Making it easier for them in turn makes the process easier for you.

Make sure you have specialty coverages for all types of potential exposures. Environmental, terrorism, cyber exposures -- all represent potential losses that your broker needs to address. If your broker doesn't have access to specialized knowledge in these areas, then you may not be getting the right coverage.

Get creative. Ask your broker about creative options. Can you structure the coverage in different ways? Tap into a number of different carriers?  Adjust deductibles? A new ballgame means new rules. It's time to rethink and get creative.

"The goal is not to get the cheapest rate," said Testa. "Clients need to get the best rate, the right coverage, and, most importantly, solid advice on risk management. Tapping into expertise through the right broker is a first step in the right direction."