There is certainly a convenience that comes with placing your insurance coverages under one carrier, including fewer contacts and accounts to manage. Outside of potential cost benefits, this flexibility allows your carrier to better understand your overall organizational risk with access to more claims data.
“There are several operational efficiencies to bundling multiple coverages with one insurance provider,” said Dave Randall, Vice President of Public Entity Underwriting at Safety National. “More importantly, this approach allows your carrier contacts to form deep relationships with all stakeholders to gain an expanded understanding of the client’s distinct business and create a specific program that meets those distinct needs.”
Here are some possible benefits to consider when bundling multiple coverages with one carrier:
1. Greater Underwriting Flexibility
Occasionally, there may be more efficiencies in casting a wider net of coverages, allowing a carrier to more evenly spread the risk, which might result in less penalty for the insurance buyer if one line underperforms. For instance, if one line incurs a large frequency of claims, but another line is stable with little-to-no claims incurred, it could create a balance that might not affect future rates or insurability.
2. Prevents Coverage Gaps
There might be situations in which the policy must be reviewed to determine the nature of the claim and which line will cover that claim. For example, a motor vehicle accident could be a workers’ compensation claim or an auto liability claim, depending on the situation. If both the workers’ compensation and auto liability coverage is purchased from one carrier, that carrier has a better ability to find a solution between their written policies instead of the potential conflict that could occur between two carriers trying to make a determination of responsibility.
3. Streamlines Claims Activity
Placing multiple coverages from a single carrier means that the carrier only has to work with one third-party administrator (TPA) for the various lines of business, which creates an ease of doing business for claims administration, monitoring, and reporting.