IRMI Update
Risk Management & Insurance
Commentary, Tips, and Tactics
December 8, 2010 | Issue 240 | ISSN: 1530-7948
In This Issue
Colleague,
Builders risk insurance is the backbone of every construction project's insurance
program. Without it, lenders would not lend, builders would not build, and owners
would not own. Complicating matters is the fact that these policies are highly
complex, and there is no standard form used consistently by insurers to cover
larger projects.
With so much at stake, those who develop, underwrite, sell, and purchase
builders risk policies need authoritative resources to guide them in structuring
the coverages that adequately respond to stakeholders' needs. To meet this need,
IRMI recently published
The Builders Risk Book. This new book provides an understanding of the laws
governing builders risk insurance, knowledge of the risk exposures and contract
requirements that must be satisfied, and specific advice for structuring the
best coverage terms.
Written by Donald S. Malecki, CPCU, and, Steven A. Coombs, CPCU, ARM, it
provides key insight and practical guidance into a number of cutting-edge areas,
such as delay coverage and green construction, which are barely touched by most
other publications. Helpful all the way from groundbreaking through final closeout
of the project and beyond, The Builders Risk Book also offers a myriad of suggestions
for avoiding the pitfalls experienced by others, based on the authors' analyses
of well over 100 appellate court cases (cited in the book), review of all the
major standard contracts, and their own personal experience.
This thoroughly researched and well-written treatise will help risk professionals
avoid the costly mistakes that are so easily made when working with this complicated
insurance. Order or learn more about
The Builders Risk Book on IRMI.com.
Thank you so much for choosing to be part of the IRMI family. On behalf of
all my colleagues at IRMI I wish you peace and happiness during the holidays
and good health and prosperity in the new year.
All the best,
Jack
Jack P. Gibson, CPCU, CRIS, ARM
President
International Risk Management Institute, Inc.
IRMI Featured Publication
Take the Mystery Out of Professional Liability Insurance
Professional Liability Insurance eliminates
the mystery and intimidation of errors and omissions, management, and professional
liability insurance with practical coverage explanations and recommendations
for virtually every major type of policy. It provides a helpful overview of
the exposures that indicate a need for various types of insurance and follows
with detailed analyses of how the policies cover (or don't cover) them. Insights
are provided into the underwriting and pricing process as well.
See a detailed table of contents and list of benefits to you.
Risk Tip
Ask Probing Questions To Find the Best TPA Fit
Many companies choose to utilize a self-insured retention for their workers
compensation programs and purchase needed services on an unbundled basis. Selecting
the right third-party administrator (TPA) to handle claims can make all the
difference in what is paid out and how claims are handled. Here are some questions
to ask during your search:
- Ask your current adjusters and broker which TPAs are most useful and
responsive to them.
- Ask potential TPAs:
- How long have they been in the claims handling industry?
- Describe their claims handling procedure.
- What is the average number of days it takes to close a claim? What
conditions impact this number?
- How are litigated files handled and monitored?
- What are their fee options and requirements?
- How are claimants indexed?
- Explain your familiarity with our industry.
- Ask questions about the TPA's claims adjusters:
- Describe your team. How many? What is their experience and tenure?
Are they bilingual?
- What follow-up/diary requirements are in place?
- What type of training and continuing education is provided by the
TPA?
- Are field adjusters used? If so, under what circumstances?
- Describe the caseloads expected of each team adjuster. When and
how often are these revised?
- In which states are the adjusters licensed?
- How are the adjusters rewarded (claims closed, quality of work)?
- Explain the TPA manager/adjuster communication process.
- Are translation services available?
- Compare the average number of claims your company receives annually
and see if it will fit into the prospective TPA's workload.
- Ask questions about the TPA's database:
- Is it web-based?
- What reports are provided?
- How are claim notes accessed?
- Can documents be uploaded or scanned to a claim file?
- Are letter templates available?
By: Amy Strange, Insurance Claims Analyst
Bergensons Property Services,
Inc.
Oceanside, CA
GET PUBLISHED IN IRMI
UPDATE: Send us a practical tip (less than 300 words) for identifying
and managing risks, buying insurance, managing claims, or filling gaps in insurance
coverages. We'll acknowledge your contribution as we did for Amy.
Submit an IRMI Update risk
tip.
What's New in Your IRMI Library
Use Checklists To Assure the "I's" Are Dotted and "T's" Crossed
No matter how many times they've taken off or landed, pilots use checklists
to assure that they have addressed every detail. With the complexity of insurance
policies these days, it makes sense to use this same process every time a policy
is placed or renewed. IRMI Insurance Checklists
gives you 58 checklists for reviewing the coverage provisions of personal and
commercial lines insurance policies, and the 2011 version is now on IRMI Online
and Sage/ReferenceConnect. You can use the checklists as is or modify them to
suit your needs. Below are handy links to the latest updated version for subscribers:
If you don't subscribe, learn more about
IRMI Insurance Checklists on IRMI.com.
For summaries of other new and updated information in your IRMI library,
go to What's New on IRMI Online
or
What's New in SilverPlume Sage.
Recent Articles on IRMI.com
New Expert Commentary
There are 1,001+ risk management and insurance articles on IRMI.com. Below
you'll find summaries of some recent additions with links to the articles.