Month: December 2016

Risk Management & Insurance

5 Reasons to Major in Risk Management & Insurance

 

Insurance companies are hiring

One of the main reasons people go to college is to become more employable.  If gainful employment is your goal, than the insurance industry is definitely a good place for you to start to look for a job post graduation.  This is because, the industry is predicted to grow for the next few decades.  More insurance is needed by people than ever before. That goes for both the business and personal side of the industry.  According to the Small Business Administration, there are more than 28 million small businesses in america that make up for more than 55% of all jobs in the country.  All of these businesses need continually need well educated employees to service these businesses.

The workforce in the insurance industry is aging.  

According to Insurance Business Magazine, the average age of an insurance agent is now 59 years of old.  According to the Insurance Journal, “The average age of an insurance industry professional is 54, and 60 percent of insurance industry professionals are older than 45.”  Because of this fact, there will be thousands of retiring professionals who need to be replaced in the next 10 years. This means two good things for graduates looking to get their foot in the door in the insurance industry; there are a lot of potential mentors with a wealth of knowledge and experience in this industry and there will be a lot of room for upward mobility because of the sheer fact that so many people will be retiring in the near future.

Millennials are becoming a target market

Millennials are now a larger portion of the population than baby boomers. Also, they are are now getting to the age where they are buying homes, searching for their own health insurance and even starting their own businesses.  Because they represent such a large new market for the industry, insurance companies need people who can relate to this new market on their terms.  Millennials shop for insurance in a dramatically different way than their parents did.  The insurance industry as a whole has not exactly kept up with technology.  Most insurance companies need employees to help them communicate with these new potential customers and they need to be able to reach these customers where those customers are. More and more often that place is online and through a mobile device.  The older generation, who is now in control of the insurance industry, is not exactly technologically advanced. The better a millennial can help agencies and carriers reach this new demographic on their terms, the better those people can set themselves up for continued success in the insurance industry.

The chance to develop Transferable Skills

Interpersonal communication, critical thinking and computer knowledge are skills that are essential for success in the insurance industry. These are also skills that can be transferred to many different industries. No matter what industry a recent grad desires to be in, in the future, these three skills are crucial to their future success.

Interacting with a 40-year-old business owner in 2016 is much different than in 1996. In 1996, cold-calling and in-person meetings were the typical ways to conduct business.  Now a majority of all business is done via email.  Some business is even conducted thru social media. If you have a knack for these platforms you can position yourself as an asset to your company.  Because of the age of so many within the industry these new skills will only become more valuable as technology advances.

People will always have to purchase insurance in some form or fashion

No matter what the future holds for business in the United States, insurance will continue to be a part of the economy.  More people now need insurance than ever before.  Whether it is health, car, home, auto or small business coverage; there will always be numerous markets for insurance throughout the United States.  That means jobs will always be there for those that are willing to train hard and keep their nose to the grind.

Garage Liability Insurance vs. Garage Keepers Coverage

The difference between Garage Liability Insurance Coverage and Garage Keepers Coverage is the difference between Liability Insurance and Physical Damage Insurance. The first covers the insured’s liability for operations and autos. The second covers damage to a customer’s vehicle. All businesses with garage risks need both coverages to properly insure their loss exposures.

Gold Colored Cylinders in a Car Engine showing the need for Garage Liability Insurance.

A typical garage business has an auto exposure, both owned, non-owned and hired. These businesses also have risks related to premises/operations, contractual and products/completed operations exposures. Rather than writing two separate policies, the Garage Policy allows a business to combine the coverages into one all encompassing Insurance Policy. A Garage Policy is a combination Business Auto Coverage form and a Commercial General Liability Coverage form. Garage liability insurance is an absolute necessity for the owner of a car dealership, a local mechanic, a tire dealer or a company doing oil changes. These policies are for employers who make a living working on cars. These programs can also apply to companies installing stereos or satellite radios. Business owners should not make the mistake of believing Garage Liability Insurance covers the loss of a customer’s auto while in your care. A separate Garage Keeper’s Policy or an addendum to the garage (service center) policy already in place must be added.

Auto Repair Shops: Garage Keepers Coverage

Garage Keeper’s Coverage

Under the Garage Keeper’s Coverage, there are two options for the auto service operator to consider. One is called direct excess coverage. This policy pays up to the value of the destroyed vehicle above the owner’s coverage. The other type of coverage is direct primary coverage, where the service owner’s carrier shares the loss with the car owner’s insurer.

Garage Liability Insurance

If you own or operate a business that has a repair center and the repair center has a fleet of tow trucks or dispatched repair vehicles, those assets are covered under Garage Liability Insurance. However, if the customer car is sitting outside waiting for service, or inside on a lift, they are not covered.  This is the reason why you need a keeper clause for the protection of your business. Please note that most Garagekeeper’s Policies excludes loss to non-factory installed sound equipment.

Keys, Workshop, Mechanic, Tools

Garage Liability Insurance providers may become extremely discriminatory regarding the requirements for getting the insurance, such as strict loss prevention or risk management efforts by the auto service owner. To cut costs and keep premiums lower, indemnity companies are often refusing to underwrite such things as wind and hail damage for company and customer vehicles. Tolerance by insurers for multiple incidents at a garage is limited. These are things a business owner should keep in mind when purchasing insurance. Partnering with an experienced independent insurance agent is the best way to determine how your business should best proceed when purchasing this type of insurance coverage.

Make sure every employee and officer of the company is on the policy. Coverage is usually only afforded to the locations and drivers listed on the coverage. Employees that get a DUI or go over their point allowances may be excluded from driving privileges and non-company drivers need to be discussed with the agent.

Getting and keeping garage liability insurance can be daunting. Proper night lighting, well landscaped grounds, well maintained signage and windows as well as a freshly painted exterior as well as clean floors and bathrooms inside can make or break a policy being approved.

 

My Insurance Question is a creation of The Insurance Shop LLC. The Insurance Shop was formed in 2005 and over the course of a decade and a half they have developed relationships with more then two dozen carriers. Those carriers allow their agents to get the best value on commercial insurance for many different industries. If you are ready for a new look at your coverage, give us a call at 800-800-4864.