By Tim Maudsley
As Alaskans, we have witnessed one of the more difficult economies this state has endured since the 1980’s oil crisis. While it is well documented that Alaska’s economy is much more diverse today than it was thirty years ago, when the demand for oil stutters our whole economy feels the effects. That’s why it’s important to strategize managing your insurance program during difficult economies, so that you’re prepared for worst while offering the best benefits possible.
Manage Your Exposures:
Perform bi-annual updates with your insurance professional to go over anticipated sales revenue and payroll amounts. These exposures have direct premium impact on multiple lines of coverage. Many insurance companies will allow for midterm adjustments in exposure, thereby more accurately calculating your premium.
If you are comfortable in managing your exposure with a higher deductible, many lines of insurance including general liability, automobile, and workers compensation can be amended to include a deductible. In many instances, business owners only consider deductibles to be an underwriting tool or a punitive function due to past losses. However, adding a deductible could significantly impact premiums on multiple lines of insurance.
Manage Self-Funded Exposures:
Have you considered adding cyber liability to protect you from losses associated with electronic hacking, loss of use, or computer-related fraud? Are you covered by an Employment-Related Practices Liability policy to cover issues such as sexual harassment in the workplace, failure to promote, or discrimination? Are you protected in the event a pollutant is found in the ground at your business location? These type of exposures are prevalent in nearly every work environment, and, if you do not transfer your risk, you are likely self-insuring and not realizing a claims potential impact to your bottom line