When it comes time for renewal of your insurance policy, you can use the fact that you are pro active in creating a workplace that goes beyond what the federal government mandates with regard to occupational safety to create a better, more cost effective risk management program.
One thing an insurer looks at when underwriting a risk is the history of losses. Because being pro active in the area of workplace safety reduces the loss frequency and severity for the individual risk, an underwriter will be more willing to take the risk on. In addition, evidence that a workplace is pro active in managing the risk of loss by developing and implementing a safety plan, will entice more insurers in taking on the risk.
This means that your broker will be able to give you more options when it comes time to renew your insurance program that will provide you with a combination of
- Lower premiums,
- Lower dedcutibles,
- Higher limits, and
- Broader coverage
An example of this would be a risk that was initially offered coverage with a Five Thousand Dollar Deductible. Because they can produce a written safety plan as well as demonstrate that it is actually implemented, the deductible was lowered to $1,000. In addition, the amount of coverage desired was split into a primary and excess layer which reduced costs and gave them additional coverages in the excess layer that they did not have before.
This is the final part of our six part series on preparing for OSHA being ahead for the automotive industry in Colorado. Previously we discussed
- How OSHA has made it a priority to inspect automotive risks in Colorado,
- Violations found,
- The need for a safety plan,
- The do it yourself approach to a safety plan, and
- Resources to help you keep your workplace safe that are free.
For the previous articles in this series, click here.
The AutoRisk team has over 40 years of combined experience in providing risk management and consulting services to not only help you in achieving OSHA compliance, but also negotiate the optimum terms and conditions for insuring your garage business. We can show you how to make your workplace safer and use our expertise to improve the quality of your risk management program.
