After the new policy is put in force, all actions by both insured and insurance company are reactionary. For example, at the beginning of the insurance policy term a visit is made by a loss control engineer (sadly, is not always done). They inspect the property and look for safety issues, building construction issues, fire protection, etc. It is only then that any deficiencies are pointed out and changes are requested-after the insurance is already in place. Also, should claims occur throughout the year, they are reported to the insurance company for adjustment. At the end of the term, perhaps, they are examined as to what happened and why. Underwriters then adjust renewal pricing, terms and conditions accordingly, always underwriting by looking in the rear-view mirror.

Upon close examination, doesn’t this process seem backwards? The commoditization of this process has doomed it to failure. It is no wonder insurance companies seem helpless to hard and soft market swings. The fine art of front-line underwriting is lost while loss experience seems doomed to depend on luck. One year the renewal remains flat, the next year it goes up 30%.

We at Best Hoovler McTeague seek to turn this process upside down, one client at a time. Our RISK MANAGEMENT AUDIT process is the key. We will get to know every aspect of our client’s business, industry and culture. All loss control efforts will be done up front. The purchase of insurance is the last step. Before we take that last step, we will seek to eliminate risk that can be eliminated; minimize risks that can be minimized; and implement results-oriented risk management strategies. It is then and only then we can specifically tailor an insurance program and transfer that risk to an insurance company. (See process page for further explanation)

It is easy to see the traditional way of purchasing insurance no longer works. So why don’t more companies and agencies change?

Every revolution has its drawbacks and BHM’s risk management process is no different. We’ve been told our up-front costs are way too high. Too many man-hours are committed to a prospect with absolutely no guarantee of establishing a relationship. When we asked insurance companies to help us with pre-inspection and loss control, at first they refused. They were not willing to spend any resources on a business that was not already a policyholder. Again, we feel, a backwards way of doing things.

No problem, we’ll do it ourselves. BHM will manage all aspects of the risk management audit process. We contract our own engineers and attorneys. The results speak for themselves. Clients enjoy fewer losses, favorable policy terms, and predictable results and renewals year in, year out. Their assets are properly protected. BHM will see a fiercely loyal client base, excellent performance results, and be seen as a “trusted business advisor” to our clients---not just an insurance agency. The insurance companies we represent enjoy profitable and stable business.

This approach is obviously not for everybody. It is not easy, nor is it easy to explain in a few paragraphs. We encourage you to contact your BHM representative for specific examples and successes.

The traditional way of purchasing insurance is broken. BHM can fix it.

“After explaining our risk management auditing process and what it all entails, the first question I get is how much is this going to cost. I like the look I get when I tell them it’s free.” -Marc McTeague

“The process they (BHM) go through gives them a more in-depth understanding of an insured’s operations and exposures. It also enables us to gain comfort with the risk and more of a willingness to accept the risk.” -Company Underwriter

“The BHM comprehensive risk strategy embodies the concepts of intimacy, intensity and integrity. The process greatly clarifies risk acceptance and pricing decisions by us, and allows more comfort and flexibility in pricing and program design.” -Commercial Lines Underwriting Manager