As we get our feet under us here in 2015, I want to review some of the topics I wrote about in 2014 and offer some insight into more commercial policies you should consider for protecting your business. In my new role as a commercial insurance producer, I am now working with risks and coverages I had not concentrated on in the past being solely focused on aviation.
First, let’s review what I wrote about last year for a moment. In May I wrote about choosing the right broker. Having the right representative still remains one of the key pieces to the puzzle when it comes to your insurance coverage. Finding a broker who understands what you do and is able to communicate that to the insurance companies will provide you with the best coverage and premiums. By understanding exactly what you do they broker can suggest coverages a less sophisticated broker may omit.
In July I moved on to contracts and insurance. The big issue with contracts is to be sure that you submit all contracts to your insurance company so they can be reviewed and cleared for coverage. Failure to send contracts to the insurance company within the time frame outlined in your policy could result in loss of coverage if you should have a claim involving that contract. It is always good to review the insurance portion of your contract with your broker to see how it affects your coverage.
In August I wrote about how to strengthen your supply chain. This again involves contracts and setting vendor requirements. Just like you ensure your vendors and subcontractors have a proper quality system in place you must ensure your vendors, suppliers and subcontractors have the proper insurance coverage in place. You are only as strong as your weakest link.
In September I wrote about the aviation insurance market being separate from the commercial insurance market and the benefits of working with aviation insurance brokers. Having a broker that understands your business is key to making sure all of your specific risks are covered. Your broker is also your advocate with the insurance companies. They have to understand your risk in order to properly represent it to the insurers and that means getting involved as a business partner.
My last article in 2014 was advice on what to do at renewal. The highlight of this article is to ensure that your broker provides you with options at renewal. They should be asking you what has changed for your business over that insurance period. Did you enter into any new contracts? Did your business grow or shrink over that period. They should also ask what your goals are over the next renewal period so you can come up with a strategy and be sure you’re with a carrier that will fit those plans.
For 2015 I will write about the many different commercial policies available. In the next issue of AMT I will go into detail about cyber liability, what you can do to mitigate your risks and what coverage is available. Every day in the news we hear stories of companies' files being hacked and customer information or company secrets being stolen. The overall feeling is that things are going to get worse before they are going to get better. This is an area of your business you really need to keep an eye on.
Jamie Benthusen is a commercial insurance producer for FGMK Insurance based in Bannockburn, IL. He draws on his 16 years in the aviation industry to tailor insurance programs for the aviation industry. FGMK insurance combines the personal service of a boutique insurance broker with the experience and resources of a national insurance broker. For more information on commercial and aviation insurance coverages you can contact me anytime at [email protected].
