7 WAYS TO SAVE ON
PROPERTY/CASUALTY INSURANCE

1. Don’t Chase the Market

Many things may be disputed in the world of commercial insurance. However, one thing is undisputed - the property / casualty insurance market has always contained periods of wild fluctuations and always will. Some years, rates are too high; some years they’re too low; and other years they’re adequate. Since property / casualty insurance must be purchased each and every year, you want to invest in the best long-term strategy. Resist the temptation to participate in the market when it’s at a low (referred to as a soft market), and you strengthen your bargaining position when rates increase above an adequate level (referred to as a hard market). A stronger balance in your property / casualty insurance costs enhances your ability to manage your risk rather than react to it.

2. Your Loss History is Your Credit Report

Just as a great credit score helps you obtain the best interest rate, your loss history is the single largest factor affecting your property / casualty costs. Insurance is designed to protect you from financial catastrophe rather than smaller frequent claims.

3. Rate Stability

How would you like to know your rates for the next 3 years? PCAL Members protect themselves from the wild swings inherent with the insurance market. PCAL Members have the option of a multi-year rate guarantee.

4. Program Stability

Does your program switch reinsurers every year? Does your program have more than a 90% annual renewal rate? Do you have a multi-year rate guarantee without it being dependent upon your loss ratio? Does your program have a heavy emphasis on loss prevention? Your program must possess these key ingredients in order for you to enjoy the benefits of long-term cost savings. PCAL contains many stabilizing characteristics which provide greater savings for its Members.

5. A Blanket Will Protect You

In today’s environment, many coverage providers restrict coverage by providing “scheduled” property coverage rather than "blanket." "Scheduled" coverage typically requires that individual building values equal 90% of actual replacement construction costs at the time of loss. "Blanket" coverage applies the limits of your "total" property schedule towards the loss on an individual building - without penalty from having a "scheduled" value less than 90% of actual replacement cost.

6. Building Valuations – Always Be Current

Construction costs have increased dramatically over the past few years. Annual property valuations ensure that property values are reported at or near current replacement costs. Antiquated property values at the time of a loss could cost you millions of dollars in penalties and uncovered claims. Are your building valuations up-to-date?

7. Co-insurance Requirements

Co-insurance penalties can cost you millions in uncovered claims. Current property valuations and blanket coverage are just some of the ways to protect a public entity's fund balance from co-insurance penalties.

Bottom line - it’s difficult to know what you’re purchasing unless you know the questions to ask.

PCAL Developed a 20-point Checklist to Assist School Administrators in: