Editor's Note: This column originally ran as a March 5, 2014 post on John Allin's blog. Follow John's blog by clicking HERE<<<<
Insurance – it’s getting tougher for companies that plow snow to obtain. I’m hearing about premiums skyrocketing and contractors with no claims whatsoever being cancelled for no obvious reason, other than the fact that they move snow. It’s reaching crisis proportions – in my opinion.
One contractor recently told me she had been given a non-renewal notice on her coverage and that her agent was diligently seeking alternatives so she could stay in business. The very first question out of the Agents mouth was – “Do you do any Walmarts?” Isn’t that revealing……
Contractors who think “well, my insurance company will take care of that” are fooling themselves. Cancellation is just around the corner if you’re not becoming “insurance savvy.” Insurance is for covering catastrophic loss, not for minor fender benders.
It’s also for liability, and those snow contractors who think it is a never ending well of money to cover such losses are also fooling themselves. It’s time to wake up gang. You must begin to alter your mindset if you are not doing everything possible to protect the insurance carrier from having to participate in claims that arise.
I’m not saying you don’t turn in claims – but, what I am saying is that you need to practice good management principles as well as good risk management practices. Documenting what you do, documenting changes in scope – like when the property manager calls you saying “we are running out of money, cut back on the salting”….. you can do that – but you must document (in writing) that you were instructed to do this, who instructed you and that the property manager now is accepting liability exposures that come with such decisions. Those who don’t will find themselves out of the snow business when they cannot obtain coverage at anything near an affordable rate.
Although, come to think of it – would that be so bad for those of us who actually follow risk management principles, or the written industry standards? Force all the yahoo’s and trunk slammers out of business – and then we can charge what is necessary to do the work in a proper fashion.
And, for the most part, I’m preaching to the choir here – because those who listen to this broadcast generally are paying attention – do the work as they should be, protecting themselves, documenting their work in a proper fashion, and keeping themselves as an “insurable risk”…..
My mistake – those who are not paying attention – keep it up so the real plowers operating real business operations can get all the work and charge accordingly.
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