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Why It's Crucial to Review Your Property & Casualty Insurance Policy Now

Whether mandated by agreement or state law, Property & Casualty (P&C) Insurance coverage is purchased as a safety net to protect and reduce exposure “in the event of an unforeseen incident.”


Property and casualty (P&C) insurance provides coverage for physical assets and liabilities and provides:

1.       Property Insurance: This aspect of P&C insurance covers physical property, including buildings, equipment, inventory, and other tangible assets, protecting against losses or damages caused by perils such as fire, theft, vandalism, natural disasters (e.g., hurricanes, earthquakes), and accidents.

2.       Casualty Insurance: Casualty insurance, on the other hand, covers liability-related risks, providing financial protection against claims or lawsuits arising from third-party bodily injury or property damage caused by the policyholder's actions or negligence (e.g., general liability insurance, professional liability insurance (errors and omissions), product liability insurance, and auto liability insurance).

Insurance policy document with magnifying glass and 100 dollar bill
What's in your policy?

While Life & Health Insurance coverage is expected to be utilized, P&C Insurance is something we all purchase and never want to use.  Statistically, 75% of insurance companies retain between 80% and 88% of their business annually, which means it’s coverage is often bought and forgotten. This outstanding renewal rate combined with an instinctive intention to defer and minimize risks, creates a very palpable reason to reexamine this core component of your business operating expenses.


 

Challenge: Review your Property & Casualty Insurance Policy

Take a look at your premium for the last 3 years and the probability that your premiums are way up (like 20% or higher regardless of no recent claims’ history) is almost a guarantee. As a business owner or just someone who requires P&C insurance, you should take the time to re-examine and review your property & casualty insurance policy.


Three compelling reasons to act now:

1. Evolving P&C Regional Markets

The P&C industry has been extremely active in reassessing the regional markets due to the favorability (and subsequent hostility) to state business practices. It’s possible that major P&C companies have entered or exited your state and resulted in a void or expansion of access to a line of service for writing insurance policies. This could directly impact the options and premiums of the insurances available. Depending on recent claim data, your state may be less or more financially enticing to insurance carriers. 


2. Election Year Uncertainties

Presidential election years are ripe for uncertainty and reducing risk is a strategy that this industry has literally defined through risk mitigation. The dichotomy of the political parties right now is so palpable, one would need to avoid civilization in order to stay clear of politics. The likelihood of one party winning in November over another will directly impact the regulatory forecast for P&C Insurance Companies. 


3. Profit Driven Insurance Practices

Insurance claims, cash reserves, reinsurance, inflation, and the increase in overall operating costs have all contributed to skyrocketing premium rates. However, publicly traded P&C insurers aim to maximize profits, often through premium hikes. Examining profit trends helps gauge potential rate increases and ensures your coverage aligns with fair premiums. Profits are good, but they need to come from somewhere. The easiest way for insurance providers to control these outstanding margins is by raising premium rates, especially if you have a “goldmine” sitting on your shelf and renewing 80-88% of the time. Do you typically just click renew and move on with your day?


What you can do to save money and ensure proper coverage:

Regardless of your renewal date, proactively engage with your insurance agent to explore better options (i.e, have them shop your policy). If you don’t have an insurance agent, search for a top-rated insurance company who writes policies for your specific business in your region and obtain a quote. Business liability insurance quotes can be provided in as little as 5 minutes. CM&F Group is a professional liability insurance company in the healthcare arena that’s been in business for over 100 years.


Compare quotes meticulously.

Some policy quotes may look too good to be true, so take a close look at the individual line items. The amount of coverage per claim/aggregate, deductibles, ratings, endorsements, etc. are all important because when you need coverage for a claim, adjusters love quoting the fine print during an incident to avoid paying on a claim. You must be knowledgeable about what you’re purchasing. For example, HIPAA coverage is not the same as cyber coverage and legal fees may not be covered altogether for cyber exposure.  


Look for discounts!

As an example, being a member of the APTA allows individuals (not businesses) to access a premium discount for professional liability coverage.


Don’t let complacency leave your business vulnerable. Stay ahead of evolving insurance landscapes and ensure your P&C coverage reflects your current risks. With a proactive approach, you can secure peace of mind and protect your hard-earned assets.


Have a chat with our experts to ensure your coverage makes sense for your business or property. Your services must align with policy coverage in order to transfer risk, which is the entire purpose of P&C insurance. At Risk & Compliance Analytics, we specialize in quickly identifying, interpreting, and solving your therapy risks and exposure. In only a few minutes, we can determine if your business insurance coverage is adequate or leaving you open to future denied claims. No one expects to use this type of insurance coverage so why not sleep better knowing your hard-earned business is properly covered.    


Contact us today for a complimentary P&C insurance review for any therapy practice owner!



Daniel Hirsch PT, DPT, CHA, OHCC, COCA is a physical therapist licensed in Connecticut, New Jersey, and New York with over 15 years of risk management and compliance experience. He is CEO of Risk & Compliance Analytics LLC, a comprehensive compliance solution for outpatient therapy practices. He has experience in both Property & Casualty and Life & Health Insurance, has served as the Chief Compliance Officer for large multi-state Physical Therapy practices, is an educator on Therapy Ethics and the Profession, and has numerous compliance and ethics certifications.


You can find Daniel on Linkedin: https://www.linkedin.com/in/daniel-hirsch-dpt/ 

   

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