If you are renewing your insurance policy soon, you should prepare to avoid shocking increases in premiums and deductibles. Let me start with the caveat that I am not an insurance professional. Rather, I am writing this through the lens of someone who empowers recycling industry managers to reduce risk on site and therefore insurance costs.
Fire has swept through the recycling industry like the pandemic that has affected virtually every facet of life. Not everyone has had a significant fire, but our industry as a whole has been affected. As a result, recyclers have reported to ISRI a 20% to 2000% increase in insurance premiums this year. (Yes, you read that right.)
Not to mention, you can expect higher deductibles and more layered policies in an attempt to spread the risk among multiple insurers. There are also fewer insurance companies willing to insure accounts in the recycling industry. A few years back, there were dozens, and now it seems there are only a handful willing to shoulder the risk.
In other words, the commercial insurance landscape is more complicated now than ever, and the onus rests on recyclers to do their due diligence to prepare for such outcomes. First off, they need to start the renewal process as early as possible to give underwriters more time to assess the situation.
The timing is an important variable. That’s because, if underwriters are rushed, they could default to the worst-case scenario. This could result in an unnecessary increased rate, because they’re relying on estimated data. By starting the process earlier, safety managers can leave more time for back and forth negotiation. They should also keep an open line of communication with underwriters to ensure all parties feel like they’re on the same page.
Quoting Adriano Lanzilotto, vice president and client service manager at FM Global, in a January 2021 article from Insurance Business Canada: “Risk management has become the buzzword of the day to make sure that your business can sail through the crisis. If you improve your risk management, it also becomes easier to find capacity … If underwriters see the commitment to risk management … they will be keener to quote for certain capacity at a better price.”
You read it here. Risk management is king. As the majority of losses are preventable, safety managers worth their salt will heed this advice. Managing risk could be the key to making YOU the KING of your industry.
On that note, never forget that incident prevention is everyone’s job. Our program challenges workers and managers to look at their workplace “through the eyes of a fire chief.” The result is that people better understand the potential outcomes triggered by risky behavior and unsafe conditions and will be motivated to keep their work and home environments fire safe. As always, let me know how I might help in any way.