As a business owner, you know that having adequate insurance in place to protect your business is important. But do you know what coverages you need – which are standard and which may need to be added? While insurance is simple in concept –a means to transfer risk you do not want to assume on your own – the execution requires a close attention to detail and a deep understanding of risk and coverage. This is where an insurance expert, or more specifically, an independent insurance agent comes in handy.
Insurance agents examine the possible risks that each business may face to determine the exposures present to then identify the coverages that may be needed. If no two businesses are exactly the same, the insurance coverage should not be cookie cutter either. Particularly, in the lumber dealer industry, there are unique risks and coverage needs associated with your business that should be contemplated.
“The lumber industry has unique risks and coverage needs such as stock moving while on your site or in transit to a customer and wild swings in market prices” says Tom Donovan, SVP- Lumber Division at Eastern Insurance Group (EIG). “The equipment used to load and deliver and off-load product needs to be properly insured. Many lumber yards now offer installed sales, which also needs to be addressed. Ideally your agent has lumber specific experience to fully understand the Lumber niche so he/she can combine Lumber industry knowledge with Insurance knowledge in designing a coverage plan which is custom tailored to the needs of each Lumber Dealer.”
Agents also carefully review insurance to ensure that adequate property and liability limits are in place to meet the needs of your business. Even if your business has not experienced rapid growth or added new property or equipment, a limits review is important to ensure they are in line with market trends in material cost or potential exposure severity.
To mitigate the risks or exposures that may exist at your business, insurance agents can recommend certain improvements or best practices that can help reduce the likelihood of a loss or mitigate a loss should one occur, such as mitigating fire risk or prevention strategies to reduce slip and fall accidents. These recommendations and best practices can help improve your business’ performance and reduce insurance costs. Insurance agents can also bring in insurance carrier specialists who can offer a more detailed review of property, premises, or auto exposures to offer additional recommendations and resources to mitigate risk, including training materials and safety checklists.
Insurance agents also play an important role for their clients in the unfortunate event that there is a loss. They can provide services and information to help guide clients through the claim process and facilitate communications between their client and the insurance carrier to work toward a resolution of the claim. “EIG assesses each new loss with the client’s insurance program to ensure the proper policies are applied, especially where more than one policy may provide coverage to a given sustained loss”, said Roy Grafton, SVP- Director of Claims at Eastern Insurance Group. “This is especially applicable to Cyber loss exposures, where a Property policy, Crime and/or Cyber policy could each apply to the loss. This is also true for lawsuits clients may be named as defendants, where the contained specific pleadings made against clients could involve their General Liability policy as well as professional/Management liability policies.” They can also suggest ways to mitigate further loss or damage to your business in the event of a property damage claim. While every claim is unique, having a guide who has expertise in the claims process and who can explain what you can expect as part of the progression of the claim can help speed resolution and minimize disruption to your business.
Whether you are looking for insurance; purchasing insurance; looking for advice on coverage, loss prevention, or claims handling, it is important to have an insurance agent in your corner. Their insurance knowledge, experience, and expertise can help you through the entire insurance process and will help ensure that the right coverage is in place to protect your business in the unfortunate event of a loss. In the end, it pays to have an expert in your corner working to help ensure the long-term success and health of your business.
Acadia Insurance is pleased to share this material with its customers. Please note, however, that nothing herein should be construed as legal advice or the provision of professional consulting services. This material is for general informational purposes only, and while reasonable care has been utilized in compiling this information, no warranty or representation is made as to accuracy or completeness.
