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Commercial Property and Casualty Broker Responsibilities
As a business owner, you never really want to see the benefits of your commercial property and casualty insurance, right? If you do, it means you have disruption in your daily business routine due to a claim or unfortunate incident.
If you have claims, premiums may go up, or you’ll have to deal with the consequences of a claim, which means it will cost you in time, effort and disruption. Maybe we should ask, is the money in the policy or could there be more? Where is the money?
The obvious answers are the basics; transfer when you need it due to a loss, policy issuance, verification of coverage, claims reporting etc. The money/benefit is in the entire design of your overall insurance program and various relationships.
Your insurance broker should be the quarterback – involved in all aspects – of your entire insurance program, or should we say “game?” Let's take a look at the four important areas a broker can, and should, enhance the process that aligns directly with your insurance and placement of that program. They should:
- Maintain solid market relationships. Brokers procure high-level relationships with insurance carrier management teams, especially claims and underwriting management teams. Maintaining these high-level relationships comes in handy when a large or complex claim occurs.
- Analyze the past. To keep costs down, the broker must analyze past claims to identify trends. The past is always reflective of the future. Insights from the broker can be communicated to high-level decision makers and the insurance carrier.
- Organize the claims system. The broker and his team lead the charge in organizing a claims system that includes a claims advocate (strictly representing the insured, carrier adjusters and client personnel). If issues arise, the relationships cultivated earlier come into play to benefit the client.
- Monitor the entire group. As mentioned earlier, claims involve many people with varying degrees of agendas; the broker becomes the gatekeeper to keep the focus on what’s always best for the client. Brokers and their teams, often participate in claims and safety meetings with clients to be sure all of the agendas from the clients are heard and acted upon.
The broker can’t achieve all of this on his/her own, but should have good knowledge of all of the efforts from the client, carrier and his/her internal team. Insurance carriers should have been selected due to their effectiveness, analysis, as well as plans in place, and then be monitored on a continual basis. If this important piece of an insurance program strategy isn’t in place, then it should be cultivated as soon as possible. We’re here to help.
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