2023 Captive Insurance Annual Meeting

This “newsletter” is a quick recap of the EMAXX Risk Summit which took place at the Boca Raton Hotel in Boca Raton, FL this week. Construction, Crane & Rigging, Heavy HaulSpecialized Transport & Energy Policy Holders across the country gathered for their annual convention. We’re sending this to you because we think you could benefit from this “choose your insurance pool” idea of insurance purchasing.

The items below were presented to the group by Business owners in the Energy & Crane / Rigging sector, attorneys, as well as Loss Control & Loss prevention representatives.

Driver Monitoring:

• After an incident – A plaintiff attorney is going to look at what a company DID & DIDN’T DO

• Did the driver have a history of repeated accidents?

• Negligent entrustment – no CDL or no license

• *On Excel (Embark software system), make sure you know everyone’s expiration date on their license. Speaker asked who in the audience knows their expiration date of their license, 4 people of out 200+ raised their hand

• Company policy – Federal requirements for a CDL driver

Preventative Vehicle Maintenance:

• “We have a shop manager who inputs / keeps track of all our repairs”

• Have it documented – every 40K miles the tires are rotated / replaced, 10K for oil changes, etc.

When an Auto Accident Occurs:

• TAKE PHOTOS, TAKE PHOTOS, TAKE PHOTOS

• The driver should cooperate with the police, check with the other driver – but do not assume fault

• Take picture of the other cars license plate

Importance of Light Duty:

• Termination of benefits when light duty is available… Minimizes claims payouts

• Have LIGHT DUTY WORK AVAILABLE – the lower the “indemnity” aka insurance company paying wages, the better the turnout for the employee & employer

• 2-4 week progression steps in light duty (first start at 5lb, then 10lbs, 15lb etc.)

• “We are in constant contact with our nurse, general counsel, & insurance carrier when light duty is offered”

• Benefits the employee a great deal, they they’re not at home watching TV all day & have a purpose

PRE – ACCIDENT:

• There must be a policy! If there’s no policy, the plaintiff will use that as “threat to the public”

• Have a cell phone policy*

• If cell phone policy is broken & that employee is not terminated, the next accident will become a nuclear verdict (gives the defense a STRONG case)

2023 eMaxx Captive Risk Summit:

The insurance market HAS already started it’s crisis. Weather conditions, nuclear verdicts, & social inflation are contributing factors to Insurance carriers charging increased premiums & limiting coverages. These dominos have caused insurance carriers to leave certain states throughout the US. If your company has a great year – why should your premiums pay for the poor performers? If you prioritize Safety within your company, shouldn’t you receive a portion of your premiums back at years end?

We believe businesses should look into a Captive Insurance model to combat some of these issues we’re facing & will continue to face. You extract yourself from the “Traditional Insurance” model & your pool is made up of all like-minded individuals. There is a strict vetting process to have your company be accepted into a Captive program. And wouldn’t you want it that way? There are reasons I simply can’t go online & get a Saturday AM tee time at Augusta or enroll at Harvard – it’s because they are ELITE!! A Captive program is similar, not everyone qualifies which is a benefit for captive members premiums for years to come.

If you think about it, you’re already in a Captive but without any of the benefits. Your insurance carrier has comprised a massive amount of business’ that share in your “risk pool”. Do you have a say in who joins your pool? Do you know if your insurance carrier offered coverage to someone with 2 DUI’s or multiple accidents with a history of speeding? Of course not, that would be crazzzzzyy!!! You might hear, “simply that’s not how that’s done”. Oddly enough your risk pool affects next year’s renewal because if the pool is having claims, the carriers are forced to increase premiums. Without the knowledge of who is hopping into your pool, you’re at the mercy of the Insurance carrier.

In closing:

Pick your pool – pick your insurance carrier – pick the way you want a claim to be handled or settled – pick out a “poor performer” to be excluded from your risk pool – pick up your dividend check at years end 😊

www.deerfieldrisk.com

Conor T. Kerins, CRIS | 484.620.0064 |

“The Insurance industry has overcharged & underserved for many years, we work on your behalf to find you the right insurance solution.” Deerfield Risk Advisors, LLC