SAFM 550 #5. Loss Control SAFM 550 Accident Costs Iceberg l For every $1 in accident costs paid by insurance l There are $6-$9 paid by the company l.

SAFM 550

#5. Loss Control#5. Loss Control#5. Loss Control#5. Loss Control

SAFM 550

Accident Costs IcebergAccident Costs Iceberg

For every $1 in For every $1 in accident costs accident costs paid by insurancepaid by insurance

There are $6-$9 There are $6-$9 paid by the paid by the companycompany

For every $1 in For every $1 in accident costs accident costs paid by insurancepaid by insurance

There are $6-$9 There are $6-$9 paid by the paid by the companycompany

Direct Costs

Indirect Costs

SAFM 550

Examples Of Indirect CostsExamples Of Indirect Costs

Lost productionLost production Replacement Replacement

equipment/facilities equipment/facilities Replacement laborReplacement labor Clean up costsClean up costs

SAFM 550

Examples Of Indirect CostsExamples Of Indirect Costs

Management timeManagement time Regulatory finesRegulatory fines Insurance deductiblesInsurance deductibles Insurance premium Insurance premium

increasesincreases

SAFM 550

Loss And ProfitabilityLoss And Profitability Company has $10

million in annual sales Their profit margin is

5% Indirect costsIndirect costs of office

fire are $100,000 How much sales to

maintain profit margin?

SAFM 550

Loss And ProfitabilityLoss And Profitability

$2,000,000

Types of Standard Types of Standard Insurance CoverageInsurance Coverage

Property General Liability Fleet Worker’s Compensation Marine Umbrella

SAFM 550

Property CoverageProperty Coverage

Coverage for structure and appurtenances

Business personal property Inventory, goods in

process, finished Personal property of

others on premises

SAFM 550

Property CoverageProperty Coverage

Loss of income/extra expense

Boiler and Machinery Earthquake, flood,

wind, subsidence Crime Special hazard situations

SAFM 550

Comprehensive Comprehensive General LiabilityGeneral Liability

Premises Liability Liquor Liability Products Liability Employment Practices

Liability Completed Operations

SAFM 550

Specialized General Specialized General Liability PoliciesLiability Policies

Professional Liability Directors and Officers Liability Aircraft or Watercraft Liability Personal Injury and

Advertising Liability Environmental Liability Garage Liability Bailment Liability

SAFM 550

Fleet CoverageFleet Coverage

Automobile Liability, Physical Damage, Collision, Comprehensive

Type of Operation, products hauled Radius of operation Driver election, training,

supervision Maintenance program DOT Compliance Past Losses and preventability

judgment

SAFM 550

Workers CompensationWorkers Compensation

SIC Experience Modification Programs in Place OSHA Compliance PREMIUM based on Experience

Mod. Factor and State Rates State Operated [Monopolistic]

Operations OCIP Construction Jobs

SAFM 550

UMBRELLA COVERAGEUMBRELLA COVERAGE

Excess General Liability

Applies After the First Layer

Catastrophic Losses

Reinsurance