When it comes to commercial insurance for your business, it is best to be proactive rather than reactive. What may seem like a small and insignificant problem today can quickly become catastrophic in the near future. When it comes to your business, sometimes a predict and prevent approach is better than having to repair and reimburse for those repairs later.
Today will talk about how a predict and prevent approach to commercial insurance impacts your business and what kind of policies fall under the predict and prevent approach.
Insurance Policies for this Approach
When it comes to a predict and prevent approach, you will find cyber liability insurance, professional liability insurance, business interruption insurance, and commercial auto insurance policies.
- Cyber liability insurance: this is what covers your business in the case of a data breach or any other kind of cyber attack
- Professional liability insurance: If claims are brought against your business that caused a customer to suffer from any kind of financial harm, this is the insurance coverage that helps protect your business
- Business interruption insurance: If your business experiences a loss of income from a fire or other catastrophe, then this insurance helps when you have to cease operations
- Commercial auto insurance: This kind of insurance policy provides your business with property damage and liability protection for any vehicle that is being used for business purposes
How Does the Predict and Prevent Model Work?
With this model, you are analyzing data to find patterns that lead to specific risks. When you can begin to identify these patterns using real-time data, you can intervene before things get worse. Take a manufacturing business, for example.
When you can track the health and operational history of your equipment and each individual component, the insurance company will have a better idea of the equipment's lifetime, and a predict and prevent methodology can help save on costly repairs.
You can get the repairs you need before there is an accident, or it causes a business interruption or delay. This kind of data tracking can be applied to several other industries as well, including the railway industry and water and energy lines.
Preventative Rather than Reactive
With this approach, your business is focusing more on preventative activities rather than reactive. So, you can place more focus on your business and its success for the future instead of having to continually address past mistakes.
The predict and prevent approach allows an insurance company to adjust quoted premiums according to predictive analytic algorithms. They can look at historical costs, claims, expenses, risk, and profit.
So, if they are looking at property insurance, for example, they can review the claim history in the neighborhood, construction costs, and weather patterns, and all of these factors help determine the risk and price of the commercial insurance policy more accurately for that particular business.
Finding the Best Commercial Insurance
No matter what method you choose when finding the best commercial insurance, you want to consider the unique needs of your business and your industry.
What works for one company is not going to be an exact fit for another.
To determine what is best for your business, contact the experts at Panorama today to go over your options.