I hope you will learn with me!

Assurance! (Insert full eyeball rollover here.)

An October 2021 survey by Embroker said only 22% fully read their insurance policy, 56% admit not knowing the cost of their insurance program, 34% have a cyber policy, 20% admitted not know how their insurance is managed. , and 30% allow their policies to renew without making changes.

Let’s change that now!

If you don’t understand your insurance, contact a consultant or your insurance broker and request a full review of your coverage. Understand what insurance you have, what the limits are, and most importantly, what policies you don’t have. Here is a thumbnail:

Garage policy

This is your primary policy that you would turn to for dealership coverage. Vehicle liability, premises liability, product liability/completed operations, customer cars. The type of coverage and limits are important.

Goods

This covers your buildings and business interruption, if you have one.

Worker’s compensation

This policy manages worker injuries on the job.

Dealer Open Lot

Your vehicles are covered separately under this policy. This may be covered and included in the garage policy, except in high risk/disaster areas.

Internet

If you have a breach of your data or the bad guys ransom you.

Pollution

Covers your waste (used oil, antifreeze, tires, batteries etc.) and their disposal. If your waste is not handled properly, you may be personally responsible for these issues.

Directors and Officers (D&O)

Would intervene for allegations of fraud and wrongdoing that protect owners, officers and employees. Directors & Officers (D&O) liability insurance protects the personal assets of company directors and officers, and their spouses, in the event that they are personally sued by employees, suppliers, competitors, investors , customers, regulators or other parties, for real or suspected reasons. errors committed in the management of a company.

criminality

Employee dishonesty. Theft of company assets by a company employee.

Responsibility for Employment Practices

This policy addresses issues that arise with employees, such as discrimination, harassment, unfair dismissal, etc.

Unusual options

You can protect yourself from most problems. Here are some more unusual options:

  • Product recall
  • Kidnapping and ransom
  • Active aggressor/violence at work
  • Loss of deductible
  • Communicable Disease Liability
  • Failure of computer systems
  • Risk of injunction
  • Loss of a key employee
  • Loss of key customer

Chances are if you can think of it, you can insure it.

I try to learn every day and here is one thing I learned this week: parametric insurance. So let’s learn and reflect together.

According to the National Association of Insurance Commissioners (NAIC), “the term parametric insurance describes a type of insurance contract that insures an insured against the occurrence of a specific event by paying a fixed amount based on the magnitude of the event. , as opposed to the magnitude of losses in a traditional indemnity policy. An example is a policy that pays $100,000 if an earthquake of magnitude 5.0 or greater occurs. The payment amount, the parameter, and a third party responsible for verifying that the parameter was triggered must all be specified in the contract. The third party will usually be a government agency, for example the magnitude of an earthquake could be determined by the measurement issued by the National Earthquake Information Center.

Dealerships with significant weather-related concerns could benefit from this type of coverage. One of the benefits of parametric insurance is that claims are paid faster because once the outside entity verifies the event, the insurance company pays so that the funds are deployed and in the hands of the insurer. business faster.

My hope for this article is to get you to consider the importance of your insurance program. I say ‘programme’ because there should be a strategy involved and a monitoring and auditing component.

Please contact me if I can answer your questions.

Comments are closed.