Archive for the ‘Account Executive Matters’ Category

The Renewal Process

November 16th, 2020 by admin

Each policy typically has a one-year policy term. Every insurance company (carrier) will request certain required documents to either be completed or updated from last year. At the end of each policy term, your account executive (AE) will send you the required applications to start the renewal process.

Your Account Executive will email you the required applications for each policy renewing, about 90 days prior to your renewal. Sometimes this may be an entire new application, or it could be an update of the prior year’s completed application, along with what we call “the workbook” for any updates.

If your account qualifies for an automatic renewal (AR), your AE will send you the AR letter. Within the AR letter you will have the option to either go ahead and bind coverage for your renewal policy or request a quote to review before you bind coverage. You may also see options to bind coverage for one, two or even three years with an annual pay option or a prepaid option. The AE may request the updated information to be back by a certain date. This will allow us time to review and clarify any questions you/we may have and still have time to give the underwriting team a couple weeks to prepare a quote.

The quote is then sent to your account manager (AM) for review, for addition of any specialty policies such as the Directors & Officers and/or Cyber quotes, and to prepare a proposal. The proposal then gets sent to your AE, who will send it to you for review and set up a time to review together. Your AE may like to present the proposal via conference bridge or, now that we are unable to present in person, we are happy to present virtually.

The review of the proposal is a great way for us the AE to answer any questions or concerns you may have and educate you on coverages so you can make a confident and educated decision for your company. The renewal process is a great opportunity for us to make sure we are insuring you properly and to give you peace of mind that you have the coverage you need.

What Is a Named Insured?

August 3rd, 2020 by admin

A “First Named Insured” is, by definition, exactly as it sounds — that is, the first named insured is the person or business who is explicitly named on the insurance contract/policy. If you are the first named insured, your name usually appears on the first page of the contract/policy, often within the first few lines. You are also the one to sign the insurance application/workbook.

By the way, there can be more than one named insured on a policy. If that’s the case, usually the person listed first holds the primary responsibility. In terms of benefits, the first named insured is 100% entitled to all the coverage and payouts of the policy. In addition, the first named insured can add people to the policy as desired.

In our workbook/applications that we work from, we request this name as the very first question on the Insureds tab. We need the name to be accurate, as this is the responsible entity for any billing or claims. Directly below the insured’s information, we have a place to list “Other Named Insureds.” These are usually your subsidiaries or affiliated companies (this could also include parties with financial interests, such as a trust). We need to be sure these are listed, as a claim could come through under a different name as the Named Insured. This will save a lot of time and research for an adjuster called in to handle a claim of a subsidiary company with a completely different name.

This Insureds tab is the first place we look when trying to identify a company submitting a claim. Make it a point to review and revise the names listed in your workbook/application so they are accurate. It is very helpful to have the type of entity, FEIN, interest, what coverage it applies to and the location/description of the operations.

If you need assistance with this, your Telcom Insurance Group account executive will be more than happy to help with a review of this information. Give us a call or shoot us an email.

Your business income and extra expense (BI/EE) limit is very important when it comes to your property coverage. This limit comes into play when you have direct physical damage or loss to property.

This could be through a natural disaster such as a hurricane coming through your area and causing flooding to your main office, for example. As a result, you most likely will need to close your office. With that, you not only would have damage to the office and anything in it but could very likely need to relocate to another office you own or incur the added cost of renting a substitute building. That can become costly quickly, because let’s face it, who knows how long you will actually be displaced to correct the issue. It’s likely others in your community have damages, too, and you’re all sharing resources to get back up and running.

While you are down you may also lose potential revenue, whether it be from your network being down or customers unable to come in to pay their bill. Are outside workers needing to work overtime to get lines put back up or fix any damages to the network. Do you need to rush ship equipment in to replace the damaged equipment? Everything above is an example of what could fall under the BI/EE limit.

So how do you know if your limit is high enough? There are many methodologies used to calculate the business income limit that you need: You can calculate three to six months’ worth of revenue (if you think you could be down that long); you can calculate your revenue from the previous 12 months and account for projected growth and/or new operations and then estimate your worst-case scenario of how long you could be totally down and use that number; or you can use the worksheet in your workbook on the Property Inquiry tab. It is important for you to take some time to calculate this exposure and be sure you’re insured properly to the right limits should you ever need it.

With the start of the new decade and with our new family of insureds that have joined us, I would like to take a minute and share the importance of the Telcom Excel “workbook.”

During the renewal process, many times you are asked to update the workbook with changes that you have made throughout the year or changes that maybe you have not had the chance to turn in. We ask these questions for the mere purpose of making sure we are providing you the service you hired us to do: insure your company.

The workbook we ask you to update contains your property schedule, auto schedule, drivers list, workers compensation information and a host of questions. Having the most updated information provides us the opportunity to evaluate the policies you currently have in place and make sure they are adequately providing the coverage you need.

Many carriers still require completion of an ACORD Form, which is a common insurance form but is somewhat more cumbersome than the Excel workbook Telcom Insurance Group uses. We hope by simplifying and using the Excel workbook instead of the ACORD Form, the process of keeping us updated will be easier for you, the insured.

In addition to more convenience for you, our goal is to make sure your claims are covered properly. When you provide us the updated schedules through this Excel workbook, we can better help you manage your risk. We want to make things as easy as possible for you, and please know, we are here to help! We are your partner in business, and we want to help make sure you are covered at a time of loss.