28 ways to cut insurance costs

ISING INSURANCE costs are hitting everyone these days with many feeling porverless to cope with them and wondering what action they should take.

The following 28 suggestions to save premiums were compiled by an insurance expert especially for those in the building materials trade. Lauren McCarthy, assistant vice president of Bayly, Martin & Fay, Los Angeles, Ca., suggests the following ideas.

(1) Increase your deductibles. Many are still using $100 comprehensive deductible and $250 collision deductible when they should be using at least 2501500 or even 500n,000. (You bump a car now and you have $500 damage.) Insurance companies really don't give credit for 100/250 deductible. Fire insurance deductibles should be at least $1,000.

(2) Eliminate redundant premiums. Example: medical payments on trucks. Only employees should be in trucks. If they are hurt, coverage will be under Workers' Compensation.

Another example: hardware store general liability can be charged at area or payroll. Ifyou have a large building, use payroll. If the store employs many people, use square footage.

(3) It is a mistake to pay liability premiums for non-highway forklifts which should be at no charge.

(4) Fire legal liability premiums can be eliininated either by getting a waiver of subrogation or by getting a Hold Harmless Agreement or by amending the lease by adding younelf to the landlord's poliry as an additional insured.

(5) Changing the garaging territory on a truck can save premium. Example: if the yard is located in a high rated city, garage the truck four nights a week in a lower rated suburban territory.

(6) Check the gross vehicle weight on a truck to make sure it is correct, using the metal plate on the truck, pink slip, etc. Under 10,000lbs. is rated as light; 20,000, medium; 45,000, heavy; over45,000, extra heavy truck tractor.

(7) Duplicate and store separately valuable papers, accounts receivable, records and computer software to avoid buying insurance.

(8) Self-insure items of small value such as fences, signs, money, glass.

(9) Pay small claims yourself to keep your record clear. Underwriters are reviewing applicants once more and that means looking at frequency as well as losses.

(f0) On Workers' Compensation, change a highly paid salesman to officer status with a payroll limitation of V4,2ffi.

(11) Review open reserves on Workers' Compensation claims before unit stat time (6 months after expiration of poliry) with your insurance company and broker to make sure open reserves are justified and will not increase your modification.

(12) Request early advance payment on large property claims. Example: If you know loss is in excess of$100,000get $100.000 at least.

(13) Review your umbrella limits and reduce the limit if your previous purchases were based solely on availability and cost.

(14) Carefully review terms and conditions ofleases and other contracts.

(lt) Develop and maintain clear record ofyour losses.

(1O Use free services of your insurance company such as engineering, appraisals, claim services, risk management.