Issue link: http://palletcentral.uberflip.com/i/1498036
PalletCentral • March-April 2023 29 Another common inquiry is related to cyber insurance. More specifi cally, "what is it and why would I need it?" In a nutshell, the goal of a cyber policy is protection from data breach and cyber liability related events. e most common events we see are phishing- related scams and cyber extortion situations. e targeted businesses are most often those that would be classifi ed in the lower middle market category (sales under $25 million). Most commercial carriers have added cyber coverage options with robust cyber response teams to combat these types of claims. Premium Projections e odds of premiums lowering in the property market are not likely anytime soon. Depending on values and geographic location, look for overall rates to continue to be in excess of a dollar rate (Example: $1,000,000 in coverage costs $10,000 in premium) for pallet operations. To combat this, sprinkler and fi re suppression systems, documented maintenance programs and hot work programs, as well as prompt compliance with loss control recommendations can result in increases being below market average. With regards to the auto market, rates will likely continue to climb. However, depending on the location of a risk this may not be as big of an uptick as the property market is seeing. Due to unfavorable legal climates and higher numbers of uninsured/ underinsured drivers, look for rates in states such as Texas, Louisiana, Florida, California, and Ohio to continue to increase considerably. Also, depending on the carrier, the cost of physical damage coverage will be a much larger percentage of the overall unit cost than it has been historically (this is due to high auto replacement and auto repair costs). at means that moving to liability only options on older or lesser used vehicles can help lower overall expenses. General liability coverage will continue to be on the lower end of pain points, with rates continuing to hover between $0.40-$0.90/$1,000 gross sales depending on volume. Workers' compensation rates are actually trending down in most states. It is important to have the proper safety protocols in place, however if losses are good, you should actually be seeing decreases on this line. e umbrella market is another area of concern. is policy covers over your auto, GL, and workers' compensation. is market has gone up substantially over the last three years. An umbrella essentially covers losses that exceed $1,000,000. e problem is that with the prevalence of large auto claims and nuclear verdicts there are a lot more claims that exceed the $1,000,000 fi gure than there used to be. Some of this is just due to infl ation as well, $1,000,000 just does not go as far as it used to. Top Five Things to Ask Your Broker 1. Make sure the values you are insuring your property for are accurate: With the cost of construction at an all-time high, the cost to rebuild has grown exponentially, and, in turn, the need to review the company's property statement of values (SOV ) has never been more important. Due to coinsurance stipulations, a company could be left covering a sizeable portion of a partial loss due to not meeting minimum insurable values via a lack of updates to follow current market costs. Most brokers and carriers will be able to give you a replacement cost estimator (RCE) report that will give you some indications of the correct valuations you need to have on your buildings. With regards to the specialized equipment in the buildings, it is important owners are giving input on the values, so they are refl ected accurately. 2. Discuss fl eet telematics and dash cameras: e trial lawyer craze has brought increasing scrutiny on commercial vehicle fl eets, and the pallet niche is not spared from this. In turn, a robust fl eet program including documented training and driver fi les are a necessity. However, vehicle telematics and dash cameras can be a great tool that any fl eet can utilize to assist their insurance program. Camera systems can absolve a vehicle from fault in the event of a claim, and if a company vehicle is at fault, the claim process can close quicker, resulting in lower reserves that can help the renewal process. 3. Review multiple deductible options: Seeing that property rates are not going down any time soon, high deductible plans and self-insured-retention (S.I.R.) programs can assist in getting better bottom line costs. Make sure the renewal process includes several diff erent deductible and self- insured options and pick the one that best fi ts your risk appetite. 4. Revisit your business income/extra expense coverages: Business income/extra expense is a property coverage that's meant to pay costs of non-tangible losses; rent, payroll, lost income and others are all covered here outside of the basic property coverage forms. Due to advances in milling and manufacturing equipment coupled The current state of the market means that it is more important than ever to be doing everything you can from a loss control standpoint.