Tag: "Insurance Carriers"
Cheap Church Insurance
With the economy still very weak and consumer confidence low as of September, 2010, many not for profit organizations are feeling the pinch. Usually in a tough economical climate folks will look to cut back their expenses and quite often the first hit is in charitable giving. Thus, a number of organizations are looking at how to reduce costs and overhead which spurs the search for cheap church insurance.
One insurance option that churches and other non-profits reconsider is in the area of their property and casualty insurance. With a soft market currently due to the economy many church insurance programs sold by different insurance carriers and brokers have seen reduced rates. This in turn obviously can lead to lower premiums.
Shopping the existing insurance can be extremely beneficial if the current insurance program has not been changed in more than three years. Often times carriers and or brokers can become complacent if there is not an active relationship with the church or the non-profit group.
By re-shopping and looking for cheaper church insurance things like deductibles and values can be assessed and considered for budgeting. Although looking for cheap church insurance can have it’s up sides it can also have it’s downsides if churches don’t carefully consider the coverage being offered in comparison to what they may currently have.
When working with a local insurance agent they can explain to you if the coverage they are proposing is “better” or “less” than the existing coverage. By determining this churches can then truly realize any savings to be had from a premium perspective and be confident that their coverage is correct.
Remember when looking for cheap church insurance there are direct writers such as Guide One and then there are non-direct writers like Philadelphia, Hanover, Bunker Hill and a number of others. By obtaining multiple quotes through a broker or shopping for cheap church insurance yourself, you can be assured that you will find the best price and be more familiar with the coverage your getting.
What are “Loss Runs”?
Every insurance carrier guards their bottom line by attempting to insure only the best risks by understanding the exposure in detail. When a prospect applies for insurance the obvious reasoning is that there is some sort of risk of loss that the prospect doesn’t want to be on the hook for. Therefore, the insurance carrier assumes risk for their insureds in turn for premium. By doing this they share the cost of risk over many.
For this reason “Loss Runs” are tracked. In essence “Loss Runs” is an insured’s insurance history at a glance. This report talks about past losses as well as open case losses. This report will state the time and the carrier along with other pertinent information. By having loss runs available an insurance company can then analyze the chance of risk with the prospective client.
Typically prospective insurance carriers will require anywhere from three to five years of Loss Runs before deciding to issue a proposal for business. Because all insurance carriers require loss runs all insurance carriers will provide loss runs as an industry standard of practice. Obviously the least amount of losses the better the insurance rates and the greater the amount of losses the higher the rates.
What this means for individuals and/or businesses alike is that it is always best to avoid or reduce risk as much as possible as a means of keeping insurance costs down. This is a direct strategy that has a direct impact on your bottom line.
