When it comes to insurance, we want to make sure our customers have a clear understanding of their coverages and how claims can have an effect on their premium. This is the reason for what is known in the insurance world as the “ Loss Runs “. Loss runs are reports generated by an insurance provider that are written records of the claims filed on each policy.
The overall goal when looking at loss runs, of course, is to have as few claims as possible, this is the best way to keep your work comp insurance or nontrucking liability insurance premiums low. Let’s take a moment to cover the most common losses and some of the most expensive losses we heard of when a claim is mishandled.
The Most Common ISP Contractor Losses
As an ISP Contractor, you all deal with the same risks and experience the same types of claims relative to the parcel delivery industry. When it comes to claims handling, choosing the right insurance agency with the best FedEx Ground or Amazon DSP insurance programs is very important to your success.
Here are some examples of payouts we’ve seen when loss prevention is ignored and/or claims are mishandled:
- Driving Errors (such as failing to turn, yield, stop, etc.) – upwards of $9,000 paid out on claims
- External Hazards (sinkholes, potholes, weather conditions, deer, etc.) – upwards of $7,500 paid out on claims
- Unknown Damage to Vehicle/Truck (left unattended) – upwards of $4,500 paid out on claims
- Slip & Falls – upwards of $70,000 paid out on claims
- Improper Package Handling – upwards of $200,000 paid out on claims
Once again, choosing the right agency and insurance company with a strong focus on claims handling is essential for protecting your insurance premiums.
The Cost of a Loss
Now that you’ve seen some examples where claims have been mishandled, let’s talk about how losses like these can impact you and your business. When your insurance provider pays out a huge sum of money, the claim that caused that loss will sit on your policy for three years, increasing the price of your premium that you’re paying annually. Three years is a long time when you’re talking about finances and budgets.
The larger the loss, the more it can affect your premium too. It is absolutely crucial that you work with an agency and an insurance company that specializes in claims handling. Mishandled claims like these can seriously hurt you financially in the long run.
At Paradiso Insurance, we want you to be prepared for claims like these and rest assured knowing that our dedicated team is here for you 24/7. We will equip you with all the knowledge and tools to try and help prevent the most common claims we experience. We at Paradiso Insurance have the same goal as you, keep employees safe and insurance premiums low. If you have any additional questions or would like more information, give us a call at 860-453-0116 and one of our parcel delivery experts will be happy to help you!