presentor patrick d. kennedy, vice president kraus-anderson insurance

PRESENTOR

Patrick D. Kennedy, Vice PresidentKraus-Anderson Insurance

| [email protected] | O: 952.707.8236| http://www.linkedin.com/in/patrickdkennedy

Presentation available at www.kainsurance.com

http://www.linkedin.com/in/patrickdkennedy



http://www.kainsurance.com/

REDUCE YOUR COST OF RISKREDUCE YOUR COST OF RISKSTRATEGIES FOR SHORT & LONG TERM SAVINGS STRATEGIES FOR SHORT & LONG TERM SAVINGS

ON CORPORATE INSURANCE.ON CORPORATE INSURANCE.

PROPERTY & CASUALTY - MARKET TREND.

INSURANCE - - A CORPORATE ASSET?

COST OF RISK VS. COST OF INSURANCE.

CONTRUCTION RISK MANAGEMENT - BEST PRACTICE SUGGESTIONS FOR 2012

PROPERTY & CASUALTY INDUSTRYPROPERTY & CASUALTY INDUSTRYCarnac the Magnificent says . . . . . Carnac the Magnificent says . . . . .

- - Ratings company A.M. Best put the pre-tax tally from catastrophes through the first nine months of 2011 at $38.6 billion in the U.S. alone. That figure doesn't include still mounting losses from the record- breaking earthquake in Japan and massive flooding in Thailand.

12/06/2011; Dow Jones News Service

First Half 2011 US CAT Losses Already Exceed Losses from All of 2010. First Half 2011 US CAT Losses Already Exceed Losses from All of 2010. Even Modest Hurricane Losses Will Make 2011 Among the Most Even Modest Hurricane Losses Will Make 2011 Among the Most Expensive Ever for CATsExpensive Ever for CATs

Insurance Information InstituteInsurance Information InstituteAugust, 2011August, 2011

Number of Federal Disaster Declarations, Number of Federal Disaster Declarations, 1953-2011*1953-2011*

1317 18 16 16

7 712 12

22 2025 25

11 1119

2917 17

48 46 4638

3022

2542

2315

2421

3427 28

2311

3138

4532

3632

7544

6550

45 4549

5669

4852

6375

5981

90

43

0

10

20

30

40

50

60

70

80

90

100

53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11*

*Through October 31, 2011.Source: Federal Emergency Management Administration: http://www.fema.gov/news/disaster_totals_annual.fema ; Insurance Information Institute.

A new record set in 2011 with 86 declarations through Sept. 30.

It is no wonder that FEMA is broke!The average number of declarations per year is 34 from 1953-2010,

though that few haven’t been recorded

since 1995.

http://www.fema.gov/news/disaster_totals_annual.fema

5

Top 12 Most Costly DisastersTop 12 Most Costly Disastersin U.S. Historyin U.S. History

(Insured Losses, 2010 Dollars, $ Billions)

*Losses will actually be broken down into several “events” as determined by PCS.Sources: PCS; Insurance Information Institute inflation adjustments.

$11.5 $12.8 $14.0$17.5

$22.6 $23.1

$45.8

$8.6$8.2$6.7$6.3$5.3$4.3

$0$5

$10$15$20$25$30$35$40$45$50

Jeanne(2004)

Frances(2004)

Rita (2005)

Hugo (1989)

Ivan (2004)

Charley(2004)

Wilma(2005)

Ike (2008)

SpringTornadoes*

(2011)

Northridge(1994)

Andrew(1992)

9/11 Attack(2001)

Katrina(2005)

Taken as a single event, the 2011 Spring tornado season would

become the 5th costliest event in US insurance history


- - Travelers Chief Executive Jay Fishman, “said his company had increased prices for business-insurance clients by 5.2% in October and 5.8% in November, the largest rates increase in several years.”

12/06/2011; Dow Jones News Service

- - S&P also called the workers comp industry’s track record of underwriting results “dismal,” with only three years of underwriting profits being earned during the past two decades. “Although many property/casualty insurers, especially those writing workers compensation, rely on investment incomes to offset underwriting losses, current historically low investment yields could also hinder such dependence going forward,” S&P said.

1/23/2012; Standard & Poor’s Corporation Report.


William R Berkley, CEO Berkley Companies

. . . . “Two and a half years ago, I thought the cycle was going to change because I expected AIG not to get the degree of help from the government that it did. I was incorrect. The government, as we all know, effectively bailed out AIG, which delayed the inevitable.”“Berkley says the assistance allowed AIG to cut prices, and it ‘held the market in check,’ preventing widespread rate increases.”

NU Online News Service, December 7th 2011

PROPERTY & CASUALTY INDUSTRYPROPERTY & CASUALTY INDUSTRYCarnac . . . Please Translate!Carnac . . . Please Translate!

What does all of this mean to me?Industry-wide Rate increases for first time in 7 years.Building/Property Rates are leading the way.Market trend will last 2 Years - minimum.Standard Market buyers: revise your composite

rate / unit cost pricing renewal expectations.Standard Market buyers: conduct early pre-renewal

meetings, discuss what renewal strategy changes should take place because of this market change.

PROPERTY & CASUALTY INDUSTRYPROPERTY & CASUALTY INDUSTRYCarnac . . . Please Translate!Carnac . . . Please Translate!What does all of this mean to me?

Consider Risk Financing Alternatives- Higher Deductibles / Retentions.- Loss Sensitive Plans.- Self-Insurance.- Captives

ADDITIONAL STRATEGIES:- Negotiate to extend current policies at current rates in order to accomplish a Renewal Date change.- Consider changing your Anniversary Date to a less popular time (ie., 3/31, 6/30, 9/30).- Identify a Risk Control Action that you can specifically ‘monetize’ as a direct savings in your upcoming renewal.

INSURANCE IS AN ASSET, INSURANCE IS AN ASSET, NOT A CERTIFICATE OF ACHIEVEMENT!NOT A CERTIFICATE OF ACHIEVEMENT!

Insurance Policies - - acquired and then put away.

However, when Loss occurs, recovery of the ‘Insurance Asset’ immediately becomes all too real.

FUNDEMENTALS OF INSURANCE AS AN ASSET• Document Retention Policy• Track / Retain “Additional Insured” Endorsements.

Why? Because they are one of your Insurance Assets.• INSURANCE TEAM - Important to Work Together as Allies.• Communicate, Communicate, Communicate . . . . .

INSURANCE TEAMFocus on Insurance Program FundamentalsFocus on Insurance Program Fundamentals

- Catastrophe Protection.- Catastrophe Protection.- Loss Prevention.- Loss Prevention.- Claims Management.- Claims Management.- Benchmarking & Record Keeping.- Benchmarking & Record Keeping.- Contract Compliance.- Contract Compliance.- Bottom-line Price.- Bottom-line Price.

andandCommunicate, Communicate, Communicate . . . .Communicate, Communicate, Communicate . . . .



TOTAL COST OF RISKTOTAL COST OF RISK

CAN YOUR CAN YOUR INSURANCE TEAM INSURANCE TEAM ANSWER ANSWER THE FOLLOWIG RISK COST QUESTIONS?THE FOLLOWIG RISK COST QUESTIONS?

What are our significant risk cost drivers?What are our significant risk cost drivers?

What is our organization’s Annual Cost of Risk?What is our organization’s Annual Cost of Risk?

What direction is it headed?What direction is it headed?


TOTAL COST OF RISKTOTAL COST OF RISKWhat are significant risk cost drivers?What are significant risk cost drivers?

Common categories are:Common categories are:

1.1.Retained (Uninsured) LossesRetained (Uninsured) Losses

2.2.Transfer (Insurance) CostsTransfer (Insurance) Costs

3.3.Administrative (Labor) CostsAdministrative (Labor) Costs

4.4.Risk Control CostsRisk Control Costs



Driver #1) RETAINED (UNINSURED) LOSSESDriver #1) RETAINED (UNINSURED) LOSSES“Cost of accidental losses not reimbursed by insurance or other outside

sources”.

1.1. ACTIVE RETENTION; such as Deductibles, Self-ACTIVE RETENTION; such as Deductibles, Self-Insured Retentions or conscious noninsurance.Insured Retentions or conscious noninsurance.

2.2. PASSIVE RETENTION; unplanned acceptance of PASSIVE RETENTION; unplanned acceptance of losses because of failure to act, forgetting to act or losses because of failure to act, forgetting to act or failure to identify loss exposure.failure to identify loss exposure.



Driver #2) TRANSFER COSTSDriver #2) TRANSFER COSTS1.1. Insurance PremiumsInsurance Premiums

2.2. Noninsurance Indemnity or outside sources to fund losses. Noninsurance Indemnity or outside sources to fund losses.

3.3. Loss Funding.Loss Funding.

4.4. Agent/Broker Remuneration, if outside premiums.Agent/Broker Remuneration, if outside premiums.

5.5. Broker Fees for (a) safety services, (b) claims Broker Fees for (a) safety services, (b) claims administration, (c) consulting/trainingadministration, (c) consulting/training



Driver #3) CLAIMS ADMINISTRATION EXPENSESDriver #3) CLAIMS ADMINISTRATION EXPENSESClaim expenses for losses not included in the Insurance Premiums.

1.1.Third Party claims administrator .Third Party claims administrator .

2.2.Public Adjuster or Claim Consultant.Public Adjuster or Claim Consultant.

3.3.Salary burden of in-house claims administration.Salary burden of in-house claims administration.



Driver #4) RISK CONTROL COSTSDriver #4) RISK CONTROL COSTS“The costs associated with the prevention or reduction of

accidental losses.”

Money spent on Risk Control can greatly influence the ultimate cost of

(a) Retained Losses, (b) Transfer Costs, and

(c) Claims Administration.



CALCULATING THE COST OF RISKCALCULATING THE COST OF RISK

WC Liability Property Professional TotalRetained Losses $14.3 $1.6 $0.1 $0.3 $16.3Transfer Costs $1.8 $3.9 $1.1 $0.6 $7.4Admin Costs $0.9 $0.3 $0.0 $0.0 $1.2Risk Control $0.6 $0.1 $0.2 $0.0 $0.9

Totals $17.6 $5.9 $1.4 $0.9 $25.8

CONSTRUCTION RISK MANAGEMENTCONSTRUCTION RISK MANAGEMENTBEST PRACTICE SUGGESTIONS FOR 2012BEST PRACTICE SUGGESTIONS FOR 2012

Treat your Insurance / Risk Management Program Treat your Insurance / Risk Management Program as an Corporate Asset.as an Corporate Asset.

Create a Risk Management TEAM.

Have the TEAM Set Goals & Benchmark results.

The TEAM should include Owner/Sr. Mgmt, Accounting, Safety, Legal and Insurance Personnel.

Include your Agent/Broker or Consultant. If not able or willing, get a new one.


COST OF RISKCOST OF RISK

IDENTIFY ITIDENTIFY ITDOCUMENT ITDOCUMENT ITBENCHMARK IT BENCHMARK IT COMMUNICATE ITCOMMUNICATE IT


CONTRACT ALERT: Fix Your Out-of-Date CONTRACT ALERT: Fix Your Out-of-Date Insurance Requirements!Insurance Requirements!

Insurance Terms and Demands that use out dated language / terms / Forms.

“Indemnification” Demand that does not match up with the ‘Additional Insured’ Demand; and Visa Versa . . . .


CONTRACT ALERT: Fix Your Out-of-Date CONTRACT ALERT: Fix Your Out-of-Date Insurance Requirements!Insurance Requirements!

Stop treating “Certificates of Insurance” like Insurance Contracts - they are not! Changes to a Certificate do not change the Insurance Policy.Stop asking for out-of-date ACORD Certificate forms.Stop asking for ‘Notification’ by Insurers that is different and/or greater than provided for to the ‘Named Insured’. ‘Notification’; try asking for the same notification rights granted to the “first Named Insured”. Simply / Clear.


Build a ‘BEST PRACTICE’ WC System - Really!Build a ‘BEST PRACTICE’ WC System - Really!

Most Contractors still employ a ‘reactive’ non-integrated WC Management System.

A WC Best Practice System that is detailed, disciplined, reactive and accountable is a very realistic objective.

Start with this: Ask your Team- What is our lowest possible Experience Modifier? Ok, now, how are we going to get there?


UPDATE YOUR HIRING PROCESSUPDATE YOUR HIRING PROCESSNow is the time after Economic slowdown.Now is the time after Economic slowdown.““Hire Slow & Fire Fast”. Most do the opposite.Hire Slow & Fire Fast”. Most do the opposite.Subject to your CBA - Make Employment offers Subject to your CBA - Make Employment offers

in writing and make them ‘Conditional’ upon:in writing and make them ‘Conditional’ upon:Physical Assessment (yes expensive but significant ROI).Physical Assessment (yes expensive but significant ROI).Drug TestingDrug TestingBackground Check / MVR ReviewBackground Check / MVR Review

Update your Employment Application.Update your Employment Application.


TECHNOLOGY E&O COVERAGE - CONSIDER ITTECHNOLOGY E&O COVERAGE - CONSIDER ITVery Underestimated Risk.Very Underestimated Risk.All Companies today have Internet & Technology-All Companies today have Internet & Technology-

related exposures.related exposures.Tech exposure rises as digital wireless networks Tech exposure rises as digital wireless networks

create nearly limitless access to information.create nearly limitless access to information.Liability associated with being breached by an Liability associated with being breached by an outsider; Data Loss & Business Interruption.outsider; Data Loss & Business Interruption.Liability associated with malicious code (viruses) Liability associated with malicious code (viruses) transmitted to a third-party.transmitted to a third-party.


EMPLOYMENT PRACTICES LIABILITY (EPL)EMPLOYMENT PRACTICES LIABILITY (EPL)You don’t have this? You're kidding, right?You don’t have this? You're kidding, right?

Could this happen to you?Could this happen to you?Employee sues for wrongful termination, age Employee sues for wrongful termination, age and/or disability discrimination, sexual harassment, and/or disability discrimination, sexual harassment, failure to promote, discipline, or hiring (or failure to failure to promote, discipline, or hiring (or failure to hire) practices.hire) practices.Lawsuit brought by customers, vendors, and service Lawsuit brought by customers, vendors, and service providers because your employee harassed themproviders because your employee harassed them{Optional third-party coverage{Optional third-party coverage}.}.


CONSIDER FLOOD INSURANCECONSIDER FLOOD INSURANCEDuring a 30Yr Mortgage, 10.5% chance of Fire During a 30Yr Mortgage, 10.5% chance of Fire

damage; 26% of experiencing flood damage damage; 26% of experiencing flood damage (3X greater chance).(3X greater chance).

Eff 1/1/09 (post Katrina) new mandatory ISO End. Eff 1/1/09 (post Katrina) new mandatory ISO End. with broader ‘water’ exclusionary language.with broader ‘water’ exclusionary language.

Flood Coverage (including BI/EE) is available from Flood Coverage (including BI/EE) is available from private markets and NFIP. private markets and NFIP.

Ask about ISO Flood End. CP6510.Ask about ISO Flood End. CP6510.Ask Broker to Flood Map and present Coverage Ask Broker to Flood Map and present Coverage

Options for all Owned Property. Options for all Owned Property.


HARD MARKET COMING?HARD MARKET COMING?Concerned about -Concerned about -

Rising premiums?Rising premiums?Reduced or more expense Specialty Coverages? Reduced or more expense Specialty Coverages? Need to strengthen Loss Prevention Program but not Need to strengthen Loss Prevention Program but not

sure you will see positive effect on your Cost of Risk?sure you will see positive effect on your Cost of Risk?Budgeting your Cost of Risk on Projects that are 2 to 4 Budgeting your Cost of Risk on Projects that are 2 to 4

years to complete and collect?years to complete and collect?

Explore Alternative Risk Financing Options; Explore Alternative Risk Financing Options; Now vs Later!Now vs Later!


ARE YOU A CANDIDATE FOR A CAPTIVE PROGRAM?ARE YOU A CANDIDATE FOR A CAPTIVE PROGRAM?

Ask Yourself & Your Team:Ask Yourself & Your Team:Are there sufficient premiums to justify the Are there sufficient premiums to justify the

Captive option? Captive option? Are you prepared to assume more risk?Are you prepared to assume more risk?Do you have accurately documented loss Do you have accurately documented loss

experience experience andand do you believe in that history? do you believe in that history? [ Look to your Cost of Risk benchmarked data ][ Look to your Cost of Risk benchmarked data ]


WHAT ARE THE BENEFITS OF A CAPTIVE PROGRAM?WHAT ARE THE BENEFITS OF A CAPTIVE PROGRAM?

Because ‘Funding’ is linked to your actual Loss Experience, the Because ‘Funding’ is linked to your actual Loss Experience, the immediate savings can be significant.immediate savings can be significant.

Joining a large financially sound Captive can provide more Joining a large financially sound Captive can provide more predictable short and long term pricing.predictable short and long term pricing.

Possible Tax burden relief .Possible Tax burden relief .Investment Income on your ‘Funding’ and all Reserves.Investment Income on your ‘Funding’ and all Reserves.More direct connection between enhanced Loss Control & More direct connection between enhanced Loss Control &

Prevention program and your actual costs.Prevention program and your actual costs.

MORE CONTROL OVER YOUR ‘COST OF RISK’!MORE CONTROL OVER YOUR ‘COST OF RISK’!


CRM for 2012 - REVIEWCRM for 2012 - REVIEW1.1.Treat Your Corp Risk Mgmt Program more Treat Your Corp Risk Mgmt Program more like the Corporate Asset that it is.like the Corporate Asset that it is.2.2.Cost of Risk; Figure it / Benchmark it / Cost of Risk; Figure it / Benchmark it / Communicate it.Communicate it.3.3.Update your Sub/Vendor Contracts; Update your Sub/Vendor Contracts; specifically update / coordinate your specifically update / coordinate your ‘Insurance’ & ‘Indemnity’ Sections.‘Insurance’ & ‘Indemnity’ Sections.


CRM for 2012 - REVIEWCRM for 2012 - REVIEW4.4.WC Best Practice Program; if you're not WC Best Practice Program; if you're not sure what this is, then you don’t have it.sure what this is, then you don’t have it.5.5.Update Your Hiring Process today to realize Update Your Hiring Process today to realize some long-term ROI.some long-term ROI.6.6.Technology E&O Coverage; currently a very Technology E&O Coverage; currently a very undervalued and underutilized Risk Transfer undervalued and underutilized Risk Transfer tool.tool.


CRM for 2012 - REVIEWCRM for 2012 - REVIEW7.7.EPL; a mature coverage that should be EPL; a mature coverage that should be considered part of a standard Insurance Program.considered part of a standard Insurance Program.8.8.Flood Insurance; consider it on all owned Flood Insurance; consider it on all owned Property.Property.9.9.Hard Market Strategy; seriously consider an Hard Market Strategy; seriously consider an Alternative Risk Finance Option such as Large Alternative Risk Finance Option such as Large Deductible, Loss Sensitive or Captive Program.Deductible, Loss Sensitive or Captive Program.

CONSTRUCTION RISK MANAGEMENTCONSTRUCTION RISK MANAGEMENTSPECIFIC INSURANCE STRATIGIESSPECIFIC INSURANCE STRATIGIES

AUTOMOBILE INSURANCEAUTOMOBILE INSURANCE

REVIEW ‘GARAGING TERRITORY’ OF ALL VEHICLES.

IF YOUR FLEET CONSISTS OF 35 OR MORE PRIVIATE PASSENGER VEHICLES, CONSIDER SELF-INSURING THE COLLISION EXPOSURE. MAINTAIN COLLISION COVERAGE ON HIGHLY VALUED VEHICLES.

REVIEW IDEA OF DROPPING (A) MEDICAL PAYMENTS, (B) PIP, (C) UNINSURED COVERAGES. WHY? THE MAJORITY OF PERSONS DRIVING OR RIDING IN A COMPANY VEHICLE HAVE MEDICAL / LOST WAGE COVERAGE UNDER WC AND/OR AN EMPLOYEE BENEFIT PROGRAM.

DELETE VEHICLES THAT QAUALIFY AS “MOBILE EQUIPMENT” FROM YOUR AUTO POLICY SCHEDULE [WARNING; REVIEW & UNDERSTAND THE DEFINITION OF “MOBILE EQUIPMENT” IN YOUR CGL POLLICY].

LIABILITY INSURANCELIABILITY INSURANCE

AUDIT AND UNDERSTAND YOUR CLASSIFICATION CODES. MAKE SURE THE LOWEST-RATED CLASSIFICATION CODES THAT APPLY TO YOUR OPERATIONS ARE BEING USED – BY ALL BROKERS.

TRUCK DRIVER PAYROLL; EXCLUDE FROM YOUR CGL OPERATIONAL PREMIUM BASIS. WHY? NEGLIGENCE ARISING OUT OF THE OPERATION OF A VEHICLE IS COVERED UNDER YOUR AUTOMOBILE POLICY.

‘OVERTIME’ SURCHARGES PAID TO EMPLOYEES – EXCLUDE IN PREMIUM COMPUTATION.


WORKERS COMPENSATION INSURANCEWORKERS COMPENSATION INSURANCE

LOSS SENSITIVE PLANS; CONSIDER THEM. WHY? DEPENDING ON YOUR PREMIUM SIZE, YOUR ACTUAL LOSS HISTORY, AND IF YOU ACTUALLY BELIEVE IN YOUR OWN HISTORICAL DATA; A LARGE DEDUCTIBLE, RETROSPECTIVE OR SELF-INSURED PROGRAM CAN HELP COVERT YOUR WC PROGRAM INTO A PROFIT CENTER.

CLASSIFICATIN CODES; CONDUCT YOUR OWN AUDIT. WHY? IN GENERAL, PROPER CLASS CODES IS A “BEST GUESS” UNDERTAKING. INTELLIGENT USE OF THE SCOPES MANAUL CAN WILL EFFECT THE COST OF YOUR CURRENT & PRIOR YEARS COVERAGE.

PAYROLL LIMITATIONS; UNDERSTAND THEM. WH7Y? IN MOST STATES, THERE ARE LIMITATIONS ON OWNER/OFFICER PAYROLL - NO MATTER WHAT CLASSIFICATION YOU ARE IN.


WC EXPERIENCE RATING WC EXPERIENCE RATING

CALCULATE A ‘TEST’ MODIFIER WITH DATA YOU BELIEVE TO BE ACCURATE THEN COMPARE TO BUREAU ISSUED MODIFIER.OPEN CLAIMS; REVIEW & NEGOTIATE 7 MONTHS FROM YOUR RENEWAL DATE. LARGE LOSSES; VERIFY THAT THYE HAVE BEEN PROPERLY LIMITED.AUDIT RESULTS; VERIFY THAT CORRECT ‘FINAL’ AUDIT DATA IS BEING USED IN YOUR CALCULATION.


CONSTRUCTION RISK MANAGEMENT ACTION PLANCONSTRUCTION RISK MANAGEMENT ACTION PLAN

PROPERTY INSURANCEPROPERTY INSURANCE

BLANKET LIMITS; DO WHAT YOU HAVE TO DO - BUT GET THEM.DEBRIS REMOVAL INCLUDING ‘POLLUTION CLEAN-UP COVERAGE; REVIEW / INCREASE IT. THIS CLAIM SCOPE HAS THE POTENTIAL TO COST MORE THAN REPAIR OR REPLACING THE DAMAGED PROPERTY.LAW & ORDINANCE COVERAGE; MISUNDERSTOOD AND UNDERVALUED. THE LACK OF THIS COVERAGE (OR ENOUGH LIMITS) IS A MAJOR REASON BUSINESS DO NOT REBUILD AFTER A SIGNIFICANT LOSS.BUSINESS INCOME & EXTRA EXPENSE COVERAGE; VERY MISUNDERSTOOD AND UNDERVALUED. FOCUS ON THE ‘EXTRA EXPENSE’ COVERAGE!


CLAIMS ADMINISTRATION CLAIMS ADMINISTRATION

LOSS DATA; MAINTAIN YOUR OWN RECORDS. LOSS RUNS ARE YOUR PROPERTY - - DEMAND THAT YOU AUTOMATICALLY RECEIVE PERIODIC REPORTS.HAVE PERIODIC CLAIMS MEETINGS DIRECTLY WITH KEY STAFF MEMBERS OF YOUR INSURER. PROPERTY / BUILDERS RISK CLAIMS; REQUEST ADVANCE PAYMENTS. LARGE PROPERTY LOSS THAT INCLUDES LOSS REVENUE AND/OR SIGNIFICANT EXTRA EXPENSES; CONSIDER HIRING A PUBLIC ADJUSTER. THE COST/BENEFIT RATIO CAN QUICKLY MAKE THIS AN EASY DECISION.


MISCELLANEOUSMISCELLANEOUS

PREPARE FOR AND DEMAND EARLY DATE TO REVIEW HARD RENEWAL OFFERS. PREPARE AND MANAGE PRECISE SPECIFICATIONS.PRECISE SPECIFICATIONS INCLUDE SIMPLE BUT ACCURATE DESCRIPTION OF OPERATIONS, SUMMARY OF RISK(S), AND OUTLINE OF MINIMUM COVERAGE SCOPE.CONSOLIDATE EFFECTIVE / RENEWAL DATES.REVIEW ALL CONTRACTS CAREFULLY. CONTRACTUAL RISK TRANSFER IS APPROPRIATE AND COMMON IN CONSTRUCTION; BUT BEWARE OF UNUSUALLY BROAD HOLD HARMLESS AND INDEMNIFICATION AGREEMENTS.


ACKNOWLEDGEMENTS

INSURANCE INFORMATION INSTITUTEGregory L. Peters, Seaton, Peters & Revnew, P.A.IRMI / Practical Risk ManagementIRMI / Construction Risk ManagementMark Garbowski, Anderson Kill & Olick, P.C.Aaron A. Dean, Fabyanske, Westra, Hart & Thomas, P.A.Staff & Risk Management Team of Kraus-Anderson

Insurance.National Underwriter Property & Casualty News

presentor patrick d. kennedy, vice president kraus-anderson insurance

Documents

underwriting losses

market change

cost of insurance

historyinsured losses

standard market buyers

half years

us cat losses

current rates