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3 Reasons Your Business Risks May Be “Hard To Place”

3 Reasons Your Business Risks May Be “Hard To Place”

As the economy, technology and politics change, so does the world. There are goods and services offered now that were unheard of even ten years ago.  With new business ventures come new challenges to the insurance industry, and the terms “hard to place”, “high risk” or “difficult to insure” are being used more often. It is a question you may need to ask yourself: How do I know if my business is hard to place?  Here are three reasons why you might hear these terms applied to your business.   1. You Have Lots of Claims or Large Claims Claims are one of the biggest reasons insurance carriers nonrenew insurance coverage. Claims can also make insurance coverage hard to place/replace after nonrenewal. If your business has many claims over a period of time (frequency) or a small number of claims with large payouts (severity) your business may become hard to place.  Why? An insurer will look at high frequency or severity as indications of: Inadequate or nonexistent safety procedures Failure to implement safety features after a loss Poor employment practices Unprofitable premium account   If your business has inadequate safety procedures in place or fails to implement more stringent safety procedures after an accident, an insurer is less likely to want to write your policies.  Employees with little or no experience or improper training, or employees who shirk safety responsibilities can also cause large numbers of claims.  Any or all of these can result in an unprofitable account that few insurers will be willing to touch. To combat this problem, talk with your broker about having a safety inspection...