HOW TO TALK TO YOUR CLIENTS ABOUT COMMERCIAL LOSS CONTROL

As the frequency and ferocity of severe weather events continue to soar, so also must insurance conversations between underwriters, brokers and their clients increasingly become about risk mitigation – shifting the focus towards preventing and minimizing potential loss, say experts from loss adjusting firm CRU GROUP.

“Whether it’s preparing for a natural catastrophe or daily mishap, clients need to be made aware of the importance of risk mitigation and proper loss control as a hedge against the traditional weather dependent nature of loss adjusting,” says CRU GROUP CEO David Repinski.

For the past two decades, Canada’s property casualty insurers have trusted CRU GROUP to help them deliver on their promise of insurance and be there for Canadians in the times they need it the most.

Founded in 2004 by father-and-son team Gary and Kyle Winston, CRU GROUP has strategically evolved beyond a CAT-only loss adjusting firm to one that today services both CAT and daily claims, operates in both Canada and the U.S., trains and develops loss adjusters, offers loss control services and – with the exception of its sole acquisition of its high end specialty liability and TPA firm, Maltman International – boasts significant organic growth through quality leaders on both sides of the border.

When it comes to helping Canadian insurance customers restore their lives, CRU GROUP understands their service needs to be fast, accurate and delivered with empathy. They do this by sending the right number of qualified adjusters to the right places, with the right support, to provide efficient service that makes things easier for insurers and gets people back to normal as quickly as possible, Repinski says.

LOSS CONTROL IMPORTANCE

Because maintaining exceptional service is especially critical in turbulent times, Repinski says.

And these have indeed been turbulent times, he adds.

Last year, Canada experienced $3.1 billion in insured severe weather losses – the country’s third worst year on record. This included two of the top 10 most costly disasters in Canadian history – Hurricane Fiona and Ontario’s derecho.

In addition, reinsurance rates are rising in an already hard market, while policyholders continue to bear the brunt of increased premiums, higher deductibles and tougher prevailing economic uncertainty.

“In this perfect storm of economic pressure and weather pressure, claims service has never been more important for insureds, who are not only more desperate for claim payouts but have increased customer service expectations as they pay more for coverage,” Repinski explains.

“That is why practicing proper loss control to prevent or mitigate risk in the first place – has become more critical than ever for insurance customers,” Repinski says.

Through its expert Loss Control Services (LCS) division, CRU GROUP offers commercial risk underwriting guidance and assistance to underwriters and brokers at policy inception or renewal.

The LCS division specializes in habitational risks, like apartments, condos, student housing, senior centres and is also experienced in unique risks including mines, wastewater treatment facilities and ski resorts.

“It’s essential for clients to be made aware of what all they can do to control loss, as soon as they buy coverage, or ahead of their policy renewal,” Repinski says.

TALKING TO YOUR CLIENTS

CRU GROUP’s LCS offers the following five tips to help brokers and underwriters talk to their clients about loss control:

Client Selection – Properly vet potential clients and monitor your interactions with them for any red flags: dissatisfied (and possibly litigious) clients, late payments, disputes with a contractor, or a breakdown in communication.
Contracts – Utilize a Scope of Services document for each project —this gives your attorney something to work with in case a problem arises. Review your boilerplate agreement with a risk management consultant and attorney. Your attorney can also advise you on client-imposed contracts which place onus upon you – you may not be covered under your Professional Liability coverage.
Professional Liability Insurance – Obtain this policy to shift risk away from your business. Ensure you use a specialist broker who will tailor your policy for your unique needs. Your broker will also review your standard client contract to identify any coverage gaps.
Certificates of Insurance – Only use insured consultants who’ll issue you a Certificate of Insurance each year naming you as the Certificate Holder. This will show your liability limits, dates of coverage and cancellation details (usually 30 days’ notice).
Assumption of Responsibility – Be clear on your project responsibility. If your contract doesn’t stipulate site safety responsibility, don’t instruct workers on avoiding potential hazards, as this may leave you open to litigation or financial loss. Review your marketing material accordingly – it can be viewed as part of a contract.

For more information visit CRU GROUP’s website or email info@cruadjusters.com with general enquiries.