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Policy Examinations

Coverage gaps discovered when a claim is denied can be costly.

Transferring risk is the primary purpose of buying insurance. While some polices may be mandatory to carry as a business owner based on requirements from a lender, landlord, or state government regulation, simply having a policy does not guarantee risk has been properly transferred.

If risk is not transferred appropriately a coverage gap can form, which is when there is an exposure to risk that is not protected entirely or not protected at all. Most coverage gaps that exist are unknown to the policy holder and often, knowledge or awareness of the gap only form after a problem occurs which is often too late. This is why having a skilled and knowledgeable agent is critical to protecting your business.

What is a policy examination?

A policy examination is a detailed review of an existing insurance policy or policies. The focus is on eliminating coverage gaps by maximizing the transfer of risk, obtaining the highest level of coverage performance, and obtaining cost reduction where available.

When examining a policy many factors are considered such as:

  • Industry: Are coverages provided that address unique risk factors inherent to your services or industry? In other words, are any coverage elements of the policy intuitive to vetmed.
  • Coverage Forms: A coverage may appear the same on paper when comparing one carrier to another, but how each carrier interprets their coverage form can dictate how the claim may go. Does the carrier you have assist you in transferring risk or impede it in some areas?
  • Carrier Expertise: Does the carrier have a long history of insuring veterinary hospitals or are they relatively new to it? While new carriers entering vetmed or others carriers wanting to have a larger market share can be a great thing, a fundamental lack of historical performance insuring vetmed can cause problems. This is where the right agent can become invaluable.
  • Carrier Rating: The quality of a carrier's financial rating is graded. AM Best Company ratings are the benchmark used for the insurance industry. Only consider those carriers that are financially strong and have a stable or good outlook.

What is involved in a policy examination?

We start the process by obtaining copies of any and all insurance policies you have for your business. This can include everything from business insurance and workers' compensation to your veterinary professional liability. We may also ask you for additional information such as:

  • Prior claim history
  • Age of your building and any updates in the past 20 years to the roof, HVAC, electrical and plumbing
  • Square footage of all buildings
  • Gross annual revenue
  • Gross annual payroll
  • Number of employees (FT/PT)

Utilizing updated business metrics such as those listed above, we can quickly determine if the coverage in your policies is tailored to your business and also highlight coverage gaps, agent mistakes or inflated rates costing you money. After the exam is completed, we will review alternative solutions through a marketplace of insurers with the intent of building a coverage portfolio designed specifically for your assets.

What are key considerations from an exam?

There are several key considerations or questions you should ask yourself when thinking about protecting your business:

  • Do coverage gaps exist in my current policies?
  • Does my agent understand the veterinary industry?
  • Do I have a relationship with my agent?
  • Can I contact my agent directly or easily schedule an appointment with them?
  • Am I paying too much for my policies?

 

Let's talk policy exams for your business

Talk to our team