While it’s never welcome news to hear that a risk needs a serious investment of time and money to improve its insurability, it’s even less welcome news to receive a month before an insurance renewal is due, says Steadfast Risk Services senior risk consultant, Josh Giansiracusa.
But, unfortunately, this is all too often the case, as arranging a risk assessment is often a task that businesses put off until just prior to renewal, Mr Giansiracusa says. It’s a situation that does not usually result in the best outcome for either the business, the broker or the insurer.
Mr Giansiracusa says aside from creating stress for business owners, a last-minute risk assessment with recommendations that cannot be acted upon before renewal could also result in unfavorable insurance terms. This situation is likely to be more pronounced in a hard insurance market such as the current one, where underwriters are being increasingly selective about the risks they choose to insure.
Risk management is a continual process
Mr Giansiracusa says that rather than moving onto the next client after securing a renewal, it’s important for to address risks that presented a challenge soon after renewal, to help ensure a similar issue is avoided the following year.
“Clients are a lot more welcoming if they’ve got nine or ten months to plan for the next renewal. They may not be able to address all risk concerns immediately, whether they be procedural or require capital expenditure, but with time they can schedule improvements and commit to them within a timeframe that works for their business. Risk management works best when it’s a continual process.”
Mr Giansiracusa say that rather than disappearing, unaddressed risks are only likely to worsen over time.
“If left unaddressed they’ll become a liability in the future,” he explains.
“It’s important for business to address risks that presented a challenge”
Being proactive pays off
The other advantage of taking a proactive approach to risk management and employing industry experts to conduct a risk assessment is that the validity of any insurer risk requirements can be properly considered.
“For example, an insurer may require a change that would be relevant to most businesses in a particular industry, but isn’t relevant to an individual business due to differing circumstances. An industry trained expert can assess insurer recommendations and provide a factual basis for amending them where necessary, ensuring you are fully armed at renewal,” Mr Giansiracusa explains. “This can potentially save a business time and money.”
Steadfast Risk Services partners with Steadfast brokers and underwriters to help them understand, manage and control risks. Get in contact with your broker to see how they can make your insurance renewal easier through a thorough risk assessment.
Steadfast Risk Services Pty Ltd
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