Risk Management- Your Insurance Needs

1. Risk Management- Your Insurance Needs Edwin J. Polverino , D.O.

2. Insurances • Home • Auto • Life • Disability • Health • Malpractice

3. Options • Go direct • Buy from a broker • Please do not believe that it is the same price. • Nothing is free. • Pay for what you need and nothing more.

4. Home • Some brokers represent one or two companies, others represent many companies. • With Home insurance it is simple to shop around and compare. • Usually flows well with Auto.

5. Home - pearls • Always self insure • Increase your risk with higher deductibles – save money • Be sure the policy pays for Replacement cost • Be sure you get an Umbrella Policy

6. AUTO • Some brokers represent one or two companies, others represent many companies. • With Auto insurance it is simple to shop around and compare. • Usually flows well with home insurance.

7. AUTO - pearls How to beat them at the risk game • Always, Always self insure • Increase your risk with higher deductibles – save money • Consider increased health benefits – it is inexpensive • Check on the replacement value and drop your comprehensive /collision coverage • Be sure you get an Umbrella Policy

8. LIFE • Term • Whole life

9. LIFE – Think about the best tool for the job! • Remember what life insurance is. • Term Life – The best tool for the job • Short term or up to 30 years • You buy what you need • Whole life – RUN!!!!!!!!!!!!

10. LIFE • Some brokers represent one or two companies, others represent many companies. • With Life insurance it is simple to shop around and compare.

11. LIFE - pearls Mitigate risk with multiple policies. Look for policies with automatic increase options, usually at preset intervals. Build an estate and look to eliminate policies.

12. Disability • Some brokers represent one or two companies, others represent many companies. • With disability insurance brokers can be helpful. Lots of “gotchas” here.

13. Disability - PEARLS • Mitigate risk with multiple policies. • Look for policies with automatic increase options, usually at preset intervals. • Build an estate and look to eliminate policies. • Job specific clearly defined. • Age of payment stop date clearly defined. • Post tax policies are best.

14. Health • Go direct - Use the internet. • Evaluate your risk. • The best value is usually a High Deductable Plan. • Remember - self insure as much as you can.

15. Malpractice insurance • Standard Companies • High Risk Companies • Admitted vs Non-admitted • Brokers • Going direct (50 – 66% saving)

16. Malpractice insurance • Reserve the right to settle. • Interview the company’s claims department before making the final decision. • Who do they use in your town • How involved are you • Why would they drop you as a client • What causes a rate increase • Ask about low risk credit programs

17. Malpractice insurance • Occurrence – No Nose or Tail • Claims Made – Nose and Tail available

18. Malpractice insurance • Occurrence – No Nose or Tail • Higher cost (includes tail in the price) • More flat fee (better to budgeting) • Consider the long term strength rating of the company

19. Malpractice insurance • Claims Made– Nose or Tail available • Step rate increase over 5-7, cost will rise to equal an Occurrence Policy. • Tail cost will equal the money not paid in years 1-5 or 1-7. • Sometimes tail is free with retirement. • A Nose can be cheap and prevent the need for a tail. • Employers – avoid offering a nose • Employees – try and get a nose