02 Sep What YOU Can Do to Lower your Insurance Costs through Loss Control
By Laura Bianchini Pritchett, CISR, CIC, CAWC
There are many elements driving your insurance costs over which you have no control and which you cannot directly impact. Market changes, industry-wide insurance rate fluctuations, natural disasters, and changes in insurance company appetites for the kind of business they want to write are all examples of reasons insurance rates and markets change. One thing you can do to positively affect the premiums you pay is to maintain a good loss ratio, which is calculated by dividing your total losses by the premiums paid.
An excellent loss ratio can be a major factor in keeping your insurance premiums low.
Running a business in today’s demanding market is tough. As the owner of a business you are faced with daily challenges such as competition, profit margins, labor costs, and government regulations, all while trying to keep qualified employees and satisfied customers. The last thing you need are your insurance and other business costs going up due to accidents, injuries, and legal complications that might have been prevented.
Losses happen. That’s the major reason you buy insurance. Implementing safety and loss control procedures which prevent or minimize losses makes a huge difference.
Effective loss control starts with a commitment from management that safety is important and that loss results will be monitored. Your hiring procedures, stressing safety, offering education on safety, as well as taking advantage of the loss control services of your insurance company all can be effective in reducing or minimizing losses. Your loss record is a major element in how premiums are calculated by the insurance companies. We can’t emphasize enough the proven difference it makes when management is a strong proponent of safety and loss control.
Some business owners view loss control visits as an interruption in their day.
In fact, taking advantage of what the insurance company has to offer is an extra value
that is included in what you pay for insurance.
Moody Insurance has been insuring professional cleaning companies for almost two decades, and we are familiar with the claims most common to your industry. Rather than run through the common list of “Loss Control 101” – lighted stairways, fire safety, and the like – we will address here those specific measures that we have seen make a difference in the loss results of our professional cleaning services clients:
Who You Hire & How You Hire
- Prior employment reference checks – This is obvious, but worth mentioning.
- Criminal background searches – With employees in customers’ homes, this is a must.
- Driving records – Whether you provide a company car or the employee drives his own, his actions while driving for your business can come back to your policy.
How You Handle Claims
- Policies and procedures – Have a written in-house loss reporting procedure known to all employees and supervisors. Depending on your structure, give supervisors responsibility for safety and losses, so that they have a vested interest in the results. Report all claims in a timely manner.
- Handling an injured employee – It’s important that the employee knows that you want to help him. Setting the right tone from the start can dispel “Us vs. Them” negativity.
- Keeping in touch – Let the employee know that you care and are awaiting his return to work.
- Back-to-work plan – Have an established procedure to get employees back on the job, even if on light duty.
Safety Meetings
- Setting the right tone – These meetings are an opportunity for management to demonstrate that safety is important and that loss control is being monitored.
- Address hazards common to your industry – Driving, lifting, slip & fall, awkward positions.
- Incentives for injury-free / accident-free workplace – Friendly team competition, bonuses, and other such incentives not only increase safety but can improve staff morale.
How Moody’s Professional Cleaning Services Program Helps
- Moody’s cleaning services program is underwritten by top national insurers with state of the industry loss control departments. Their goal is to help you succeed by making suggestions to prevent and minimize your losses. A loss can impact your insurance premiums, your equipment costs, having a full contingency of employees, and your profitability.
- Stability of your insurance program – Moody, in conjunction with top national insurance companies, has provided a stable competitive market to companies in the cleaning industry for over 15 years. This stability keeps your costs predictable and competitive.
- Strength in numbers – By writing such a large volume of business in one program, a bad year by one company should not jeopardize the coverage for any one member or the group as a whole. When the insurance company sees overall profitability in a program, lower rates and flexible pricing follow. The loss ratio of the Moody’s residential cleaning program is excellent.
- Program account selection – Keeping the overall program loss ratio low is largely a result of careful account selection. Moody works hard at screening the businesses participating in our program so that we can keep the program stable with competitive premiums. Those professional cleaning companies demonstrating a commitment to safety and loss control will enjoy the premium savings the program has to offer.
- Low loss ratio = lower rates. This is true for the overall program and the individual rates for each participant.
An effective loss control program is dynamic, constantly evolving and responding as safety issues come to light. The most successful programs have the strong support of management and are tailored to meet the real-world needs of the individual business.
Moody Insurance is a long-time partner and friend to ARCSI. To find out what Moody Insurance can do for you, contact Laura today.
Laura Bianchini, CISR, CIC, CAWC, Account Executive
Moody Insurance Worldwide
(301) 417-0001 x0009 | Main Office
(301) 919-8010 | Cell
[email protected]