In the world of insurance, understanding the true risks and exposures of a business is paramount. A thorough risk discovery process not only ensures that your business is adequately protected but also helps in crafting a tailored insurance program that truly meets your needs.
Understanding Our Risk Discovery Process
Our Risk Discovery Process is risk-led, not policy-led. It is the first step in our Be Ready Process. This means we prioritize a deep understanding of your operations and exposures before jumping into policy details. By identifying assumptions and validating them through a structured framework, our agents can ensure that your insurance placement strategy is based on verified insights rather than guesswork.
A Guide to Effective Risk Discovery
The purpose of our Risk Discovery Process is to support meaningful risk discovery, enabling us to develop a comprehensive understanding of our client’s operations, exposures, insurance program, and risk management practices. Here are some key steps:
Prospect & Operations Overview
-
Review Operations: Summarize the business operations, key exposures, locations, and ownership structure.
-
Public Information: Utilize resources like the company website, SAFER, and OSHA to gather relevant data.
-
Visual Documentation: Obtain photos of locations, facilities, and equipment to better understand the operational environment.
-
Unique Attributes: Identify what makes the account attractive or different from similar risks.
Current Insurance Program & Coverage Review
-
Policy Analysis: Obtain and review current policies, forms, endorsements, limitations, and exclusions.
-
Loss History: Review five years of loss runs and discuss significant losses to identify patterns or recurring issues.
-
Coverage Gaps: Document any open claims, coverage concerns, or renewal challenges to identify potential gaps or restrictions.
Asset Verification & Financial Assessment
-
Asset Schedules: Verify vehicle, equipment, and property schedules with the insured.
-
Financial Review: Obtain financial statements and review financial information when appropriate.
Operational Exposures & Contract Review
-
Project Lists: Review ongoing and upcoming work to understand the scope and largest exposures.
-
Contractual Obligations: Discuss subcontractor use and review agreements with customers, upstream parties, landlords, and tenants.
Risk Management Program Assessment
-
Safety Programs: Obtain and review safety programs, manuals, and loss control practices.
-
Industry-Specific Procedures: Review procedures such as Product Recall Plans, Abuse Prevention Plans, and Business Continuity Plans.
Key Insights for Effective Insurance Placement
Understanding what you do and identifying your primary exposures are crucial. It is equally important to know what makes you attractive to carriers and how your management team controls risk. This information is invaluable in presenting you clearly to potential insurance carriers.
For more information on how to conduct a comprehensive risk discovery process tailored to your business needs, reach out to our agency today at 609-586-7474. Our team is here to help you uncover hidden risks and ensure your business is protected with the right coverage.
Image by Sasun Bughdarya on Unsplash.
About the Author:
Brendan Stenson has over 20 years of experience in the insurance industry, with a dedicated focus on commercial lines marketing, placement, and carrier relations. He joined the agency in 2015 and is now Director of Commercial Lines Placement and Carrier Relations. His expertise and leadership have played a key role in driving placement strategies and strengthening carrier relationships to support long-term client success. Brendan is a licensed producer in multiple states. He also holds several industry designations, including Certified Insurance Counselor (CIC), Construction Risk and Insurance Specialist (CRIS), and Management Liability Insurance Specialist (MLIS).
