FAQ

Question:	We have used the same brokerage firm for years and let them manage our renewals. We’ve been relatively pleased with them over the years. Why should we bring in ICA as well?
Answer:	We find that so many middle market companies have as their broker, the golfing buddy or friend of a principal, and therefore these prospective Clients have never questioned what they are paying or whether their coverage truly protects their exposures – often simply because these companies have never had any losses to test the adequacy of their coverage. One frightening problem with this complacency is that a GL policy from a few years ago is not a GL policy today. Each year the coverage has gotten more limited and the language drafted more favorably to the insurance company. In effect, if 90% of any potential claims against your company would have been covered in 1990, today that figure may be only 50%. Has your broker described to you what affect these policy limitations have made on your coverages? Probably not. And most other types of insurance policies have also been cut back and tightened. In the coverage provided by many other types of insurance policies, the insurance companies have also reduced the breadth or scope of the insurance coverage, thereby allowing the insurance companies to develop and sell new products. It is ICA's job to identify the risks that face your company, inform you as to what coverage you have or don’t have and how to fill any gaps. It is also our job to take each one of your policies, each year, point out all the changes and mistakes and go back to the broker and insurance company and demand they get corrected. Brokers tend to stop working when the coverage is bound except for administrative responses to client driven questions. On the other hand, ICA works to improve your coverage constantly, during marketing and especially after a policy is issued, following up to ensure that the insurance company actually adds the quoted coverages to the policy as promised. ICA has found that at least 90% of all policies issued to insureds arrive with errors not agreed to at binding. ICA scrutinizes the policies once they are issued and then doggedly pursues the brokers and insurance companies to amend the coverage to fulfill its contractual promises. Another serious problem with allowing the same broker to continue indefinitely without introducing compettition, is that he may have no incentive to re-market your insurance program to assure the terms and pricing continue to be competitive, if he goes unchallenged. As an insurance buyer, you may be in a position whereby you complacently allow a slight increase in premium each year as a given, yet you may be unaware that the pricing for similar policies may have gotten very competitive. So long as you are willing to accept a renewal on an "as is", basis why should a broker seek competitive quotes, especially if it is going to cost him much time and expense? The insurance marketplace is in a state of constant change, and any insurance buyer should always know whether his program is competitive in the current marketplace. The buyer should consider marketing his insurance program at least every three years, to assure it remains competitive, not just with their friendly broker, but with other competing brokers as well. ICA’s objective position as a pure risk management consultant, not tied to the sale of insurance in any way, allows us to recommend the best coverage available at the time. We will help you achieve the results you desire, even if your goal is to continue doing business with your old golfing buddy/broker.
Question:	What is your fee structure?
Answer:	We are typically engaged for a fixed monthly retainer which is based on the scope of services provided, which often allows the Client the capacity to utilize our services as an off premises risk management department within the framework of a fixed annual budget, as much or as little as their needs dictate. We are also engaged on a time and expense or a project fee basis, depending on the services purchased and/or desires of the Client. Our monthly retainer agreement is typically cancellable by either party with thirty days written notice.