Frequently Asked Questions by Insurance Policyholders about Loss Control Information/Services
- If I am a business owner and have a commercial lines insurance policy for commercial automobile liability, general liability, or professional liability insurance, is my insurance carrier required by the Texas Insurance Code to provide me with Loss Control service?
The Texas Insurance Code states that your insurance company must provide you with loss control information/services based on the risk, exposure, loss experience, and other considerations of your business. If you have a large trucking business and haul hazardous cargo such as gasoline, propane, or chemicals, your insurance company should be looking at your internal loss control programs and providing assistance or guidance if necessary. If you only have a fleet of two small delivery vehicles and have never reported an accident, your insurance company will provide loss control assistance at your request, or may provide loss control through brochures, pamphlets or other mailouts. The decision factors are always: risk, exposure, loss experience, and other considerations of each policyholder. Regardless of these factors, and even if you are a low risk company, if you specifically want the loss control assistance of your insurance company, they are required to assist you.
- What kind of service or assistance can I expect from my insurance carrier?
An insurance company could approach your business in several ways. First, they could do an analysis of any claims you have had. An analysis of losses could pinpoint areas of weakness in your internal safety or loss control program, and result in recommendations or assistance to strengthen your employee training programs, employee hiring practices, general housekeeping, material handling practices, or a total rebuilding of your safety/loss control program. Second, they may see the need to send a professional loss control representative to visit your place of business to conduct a thorough survey and analysis to see where your loss exposures are and what can be done to mitigate against a potential loss. Based on either method, recommendations may be made, safety materials may be provided, employee training may be recommended, or a total overhaul of your safety program may be recommended.
- If I think the services of my insurance company loss control department would help my business, how do I get it?
Most insurance companies will provide you a letter or notice at policy issuance and/or renewal that includes instructions for requesting loss control; or may include a mail in card to request service. If you cannot locate this, call your agent or your insurance company and ask for the loss control department. If all else fails, contact the the Texas Department of Insurance, by e-mail or call (512) 322-3435.
- Why should I want loss control service from my insurance company. Everyone has accidents and losses. Isn't that what I pay insurance premiums for?
The Texas Department of Insurance, Loss Control Section has an excellent publication titled LOSS CONTROL, MONEY IN YOUR POCKET. We recommend that you read this brochure to gain some useful insight about the value-added aspects of a strong loss control program. After reading this publication, we are certain you will agree that loss control is a win-win situation for both the policyholder and the insurance company.
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Last updated: 10/12/2010