Lesson 9: Can you control your commercial auto premium in the traditional market place?

Gallagher (Transparent)

In traditional marketplace insurance, auto insurance rates are based on several factors: frequency and severity of crashes, auto repair costs, medical and hospital costs, lawsuits and court judgments, insurance fraud, vehicle type, and deductibles.


This means that while your company’s inherent level of risk is a factor that affects the premium you will pay for auto insurance, that amount is also affected by factors that are not directly controlled by the company.


Many companies are continually facing large increases even when they are having some of the safest years in their careers. When insuring your business with a traditional carrier you are subject to the profitability of the insurance company.


Performance-Based Insurance Programs

Companies frustrated with unexplainable increases that are not related to their own safety and losses, have found the best solution to be captive insurance programs. These are programs by business owners for business owners, with premiums based on your own performances and losses.


What do you need to qualify?

- 4 Years of loss runs: General Liability, Auto, Work Comp
- 4 Years of premium: General Liability, Auto, Work Comp

Lesson 9