Loss Control Before Binding - is a Good Thing

[AZDave]

I have a current body shop account that is renewing in March. This will be the 7th year with my agency. Seems body shop accounts are constantly being hit by the competition, and this year he told me he is getting some comparisons. Last year total premium around $30,000.

Now I'm doing my due diligence. My current company is coming in flat from last year. Also put an application into another carrier for a more formal quote. They appeared to have a really great rate going. But they require a loss control survey before binding.

The risk includes full body shop operations - building, bpp, gk, auto, work comp and excess. It also includes another building - leased to others. The loss history is spotless. Emod .78. I'm worried a Nationwide is going to come in on this one a kill it.

Loss control for the new quote just got done. The main operation - what a great risk. The LOR risk with an upholstery shop tenant - total mess.

This use to leased to a mechanic repair shop, and was super clean when I first wrote it. Now this could be a hazmat situation!

Looks like the renewal is my only offer on this one, and some housekeeping ideas.

Dave

 

[Matt37]

wow.. that place is a crap hole.

Well... like my co workers said to me when I was working at Universal Underwriters and Zurich bought us and started requiring photos for all new submission... "When you snap the picture give the phone a nice wiggle so it is a tad blurry"

I walked in and out of so many shops that looked like that..

But beware I have gone up against Nationwide no lie probably over 300 times on body shops and they WILL be cheap and they WILL write that without pictures.

Good luck.

 

[nyc2phi]

I have a current body shop account that is renewing in March. This will be the 7th year with my agency. Seems body shop accounts are constantly being hit by the competition, and this year he told me he is getting some comparisons. Last year total premium around $30,000. Now I'm doing my due diligence. My current company is coming in flat from last year. Also put an application into another carrier for a more formal quote. They appeared to have a really great rate going. But they require a loss control survey before binding. The risk includes full body shop operations - building, bpp, gk, auto, work comp and excess. It also includes another building - leased to others. The loss history is spotless. Emod .78. I'm worried a Nationwide is going to come in on this one a kill it. Loss control for the new quote just got done. The main operation - what a great risk. The LOR risk with an upholstery shop tenant - total mess. This use to leased to a mechanic repair shop, and was super clean when I first wrote it. Now this could be a hazmat situation! Looks like the renewal is my only offer on this one, and some housekeeping ideas. Dave

Erie likes to do loss control before binding with us as agents going in with them. If we don't order loss control, we're supposed to inspect ourselves.

It avoids the problem of writing someone, having the carrier inspect, and it being canceled after you just wrote it.

 

[AZDave]

^^If this was a new risk, I sure would take a look before binding. This particular location did not look like this when I first wrote it, and passed loss control then.

 

[myfakename]

If the body shop is significantly cheaper could you have the quoting company exclude the LRO bldg and place it elsewhere?

 

[AZDave]

^^Tried that. They won't write it. It's all under same LLC, liability extension is automatic. Even if they did exclude, insured would lose his excess $2 million for that risk, and the robust coverage currently in place.

Not sure if these will show, but here is the rest of the pics. Ughhhh.

 

[insurance1822]

BAHAHAHAHAH these guys are slobs! That being said, when I was in college this is how our frat house looked like. But when we pulled a mixer w/ a sorority it took us like 2 hours, alot of alcohol & nugs and we turned that place into the taj freaking mahal.

I don't know commercial enough BUT would they be open to doing some house keeping to keep their coverage in place?

 

[myfakename]

i agree. a roll-off and a weedeater and that place would be acceptable in a day.

 

[AZDave]

Have a meeting with insured Tuesday. I got a feeling he has no clue on the current housekeeping and will be open for ideas.

He will probably show me quote from Nationwide or Fireman's Fund with thousands of savings. And I will walk out with a check....think positive.!

Dave

 

[AZDave]

Well my competition was Sentry, and they were $2000 lower. But he chose to renew with me. Oh great! Oh crap.!

Now I have to have the housekeeping discussion.

Any suggestions? How far would you push this with the insured.?

This is interesting because on the one end we have a duty to our carriers to make a profit and not put crap on their books. Then you discover some crap that slipped in. The carrier would love to see these pics.

And on the other end is the renewal. The risk is loss free. They inspected it when I wrote it. Why stir the pot? Maybe I didn't see anything.