Pest Management Professional, November 2009
Business Manage Your Risk Now is the time to review your insurance portfolio By Gary Shapiro Contributor P est management professionals PMPs whove been in the industry the past two decades are certainly aware that the insurance market goes through cycles that affect insurance buying decisions These cycles are driven primarily by two things that create a buyers soft market or a sellers hard market For years the property and casualty insurance market has generated profits driven by investment income rather than profits generated by underwriting which is premiums less losses less expenses Traditionally market cycles follow interest rates The higher the rates are the greater the investment income enabling companies to offset underwriting losses During this cycle companies reduce rates to gain market share broaden coverage and as interest rates fall the industry is forced to react This usually means rising premiums and pulling back on capacity Which Cycle Are We In Now Were in a true buyers insurance market with low rates new carriers entering the industry and standard markets competing for excess and surplus lines business PMPs should use this time to examine their insurance programs and work with their insurance agent or broker to ensure theyre getting the best value and to ensure theyre with a financially secure carrier who has experience in underwriting this specialized class of business As a first step in evaluating your insurance portfolio your current coverage should be reviewed with your insurance agent or broker to ensure your policy is suitable for your current operations Business may have changed significantly over the past year restructurcontinued on page 40 www mypmp net NOVEMBER 2009 PEST MANAGEMENT PROFESSIONAL 37
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