We went a little deep into coverage this week...
In this episode of Falcon Forward, Peter Brecht and Mike Tanghe got into the technical side of insurance strategy, focusing on the critical timing of product liability and the art of auditing claims reserves.
If you're keen on learning more, we've written two detailed articles about today's topics as separate resources:
- How Claims Reserve Auditing Impacts Your Insurance Premiums
- Why Delaying Product Liability Insurance Can Cost Your Business
Whether you are a startup delaying coverage to save cash or a large corporation wondering why your premiums are spiking, this conversation provides actionable insights into how insurance carriers view your risk. The discussion covers the hidden dangers of coverage gaps, including why some carriers will flat-out refuse to quote businesses with a lapse history.
Mike explains the strategy behind matching insurance binding with actual revenue and the importance of checking loan and investor requirements before delaying a policy. We also dive into the complex world of workers' compensation, exploring how light-duty programs and aggressive reserve auditing can save a business thousands in the long run.
Finally, we look at the difference between renting a policy and building a long-term partnership with underwriters. From the nuances of experience modification rates to the practicalities of negotiating with claims adjusters, this episode is a masterclass in total cost of risk management for small and large businesses alike.
Timestamps
00:00 - Introduction and family milestones
02:24 - Teaching math and lessons in business prospecting
06:10 - Strategy for timing product liability insurance
09:00 - How loans and contracts dictate your insurance start date
11:50 - Creative ways to match coverage with revenue launch
14:33 - The nightmare of lapsed insurance policies
16:00 - What is a No Known Loss Letter
18:14 - Why underwriters do not like to rent coverage
19:16 - Understanding claims management and reserve auditing
23:50 - How adjusters set reserves and why it impacts your premium
26:40 - The importance of the 90-day claim check in
29:54 - Workers' compensation and light-duty back-to-work programs
32:23 - Explaining EMR and loss cost multipliers
36:55 - Final advice on regular risk reviews