What are the most effective ways to manage insurance policies across multiple locations or business units?

1. Assess risks: Identify common threats at each site. Consider local regulations too! 2. Consolidate policies: Look for multi-location discounts or umbrella policies covering all locations. 3. Communication hub: Create a central system (spreadsheet, software) with policy details, contacts, and renewal dates. 4. Automate: Set up automatic reminders for renewals and payments. 5. Performance check: Regularly review claims history and coverage gaps. Adjust as needed.

Assessing the risks is also going to guide insurance coverage choices you may have. The changes you may need will vary. For instance, adding a new office location for your restaurant management group will require less changes than adding a whole new restaurant location and a new restaurant concept will require different changes than just a duplicate of your current concept.

Technology plays a significant role in this: Insurance brokers, for example, are at the forefront of this evolution. They typically possess networks and leverage global technology platforms to manage policies efficiently. This allows them to maintain a comprehensive overview of all policies under their administration. Such a system ensures that brokers can oversee local and international policies effectively, streamlining the management process and ensuring that all aspects of risk are appropriately addressed. This global approach optimises risk management strategies and enhances the ability to adapt to changing risk landscapes quickly.

In most cases consolidation will be the best decision. As you consolidate consider per location aggregates, blanket property limits, and other endorsements that are specifically beneficial for multi-location businesses. However, for workers compensation, this may not be possible if your expansion is into a monopolistic state.

When agents automate their administration, they stand to benefit from: #1 - Fewer policy lapses #2 - More referrals #3 - Increased client retention #4 - A more efficient agency #5 - Maintained focus on revenue-generating activities

A. Utilize automated tracking systems for real-time monitoring. B. Conduct regular risk assessments and minimize identified risks. C. Benchmark performance against industry standards. D. Conduct periodic compliance audits. E. Continuously improve processes based on feedback.

Communicate early with your insurance provider about adding new location. They can let you know what information would be particularly helpful in order for them to make the required changes. Most changes can be backdated up to 30 days. But a discussion beforehand can allow the broker to flag potential issues such as operational expansions that are outside your current carrier's appetite, lease/contractual requirements of third parties that are different than your current operations, and property characteristics at your new location that will drive up your insurance costs.

Implement a centralized system or platform for managing insurance policies across all locations or business units. Centralization ensures consistency, visibility, and control over policy administration processes.

Something based on experience: Before offering multi-location / international location policies, think about how to handle the downstream systems. Let us take an example of offering a P& C policy with international locations allowed as part of the policy. Do we want to feed that information, such as the claims system... Some business units and insurers offer policies but may not want to cover the exposure to claims related to those. Think about the critical scenarios for handling these kinds of situations.