AGENCY CORNER - What Makes a Quote?

There are many factors that insurance carriers consider when calculating a new business or renewal quote. It’s not always just the claim history or just the CAB score, but it’s comprising all the small pieces that make up the puzzle. By teaming up with your agent, you can paint a pretty picture for your company to receive a competitive premium from the insurance company. Focusing on the more minor details allows a leet owner to put his best foot forward come renewal time.

The following are examples of some items reviewed by carriers when quoting your auto policies:

• Formal WRITTEN safety plan

(do you have a formal safety policy or employee handbook that you can provide to the carrier before quoting?)

• Copies of subcontractor agreements and hold harmless forms in place

(this is to protect you and your carrier from assuming risk from subcontractors.)

• Driver MVRs

(ensure the carrier approves drivers before putting them in a truck.) Borderline drivers may be surcharged, thus driving up your cost.

• CAB score

(carriers focus on trends to see if owners promptly make repairs. Everyone has a ding or two on their CAB scores, but the most crucial aspect is what are you doing about it? Carriers do not like to see repeat violations or patterns. To them, they assume the manager or owner is not proactive in managing the condition of the trucks.)

• Safer score

• Loss runs/Loss ratio

(does the account exhibit historically profitable

• Age of tractors driving physical damage premium

• Age of drivers

(drivers under 25 or over 65 will draw attention from auto carriers.)

• Number of years in business

(carriers are looking for established companies that have been in business ideally for at least three years.)

• Locations of mills your drivers are hauling to

(while none of us can control the location of our markets but carriers will consider the percentage of your hauls going to and from metropolitan areas or certain states.)

• Do you participate in forestry associations or even your local community?

Try to give carriers the big picture of your business culture and why you are a favorable risk.

As you can see, there are several aspects that auto insurance providers will consider when quoting a new account or even a renewal quote. They will look at how a business has improved and what proactive measures have been taken over the previous year.

Claim history is important, but it is not the end all be all. In the event of an unfortunate claim, focus on the response you have taken or future preventative measures taken as a result of the accident. Sure, some carriers may look at a claim and hold it against you but give them a reason not to.

By having written policies in place before a claim and active response to a claim, a fleet owner can prove to a carrier that this was an accident and not the result of an unsafe culture developed by the company. A little bit of effort can go a long way when promoting your company come quote time. Too much information is better than not enough, so make sure you and your staff do everything you can to promote an attractive