Insurance Partnership

Everyone knows insurance is an essential part of risk management.  It is not typically associated with security, but when there is a loss, the insurance company is one of the first calls made.  Of course, the insurance company is very interested in the security involvement of its clients to help reduce their risk.   Effective security measures should help reduce premiums for the client. 

I am seeing more insurance companies offer services to help their clients assess and deal with potential risks.  This is really a great approach as it is in the best interest of both parties to deal with the shared risks.  The insurance company can help the client understand potential risks from their experiences with other similar companies.  The client may be able to gain some direction from the insurance company or seek assistance from an outside consultant to help mitigate those risks.

One aspect of insurance that companies must understand is that they need adequate coverage to avoid a “co-insurance” situation.   This is where a particular asset or property is insured for a lesser value than its actual value or replacement cost.  It is obvious that a full loss will only be covered to the level insured, but if there is a partial loss, the insurance company will only cover a percentage of the loss equal to the percentage of coverage to the value.  Insured and insurer must work together to substantiate adequate coverage. 

A good relationship with your insurance agent should result in reduced risks, effective coverage and managed premiums.

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