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Is AI Revolutionizing the Insurance Market? In Short, Yes.

The insurance industry, historically characterized by manual processes and conservative risk assessment, has seen a remarkable transformation in recent years with the infusion of artificial intelligence (AI). Artificial intelligence has revolutionized the insurance market by streamlining operations, improving customer experiences, and enhancing risk management. In this article, we will explore the significant impact of AI on the insurance sector, its key applications, and the prospects of this dynamic landscape.

READ: AI in Insurance — How New Technologies are Changing the Game

The evolution of artificial intelligence in the insurance industry

The integration of AI into the insurance market is emblematic of the broader digital transformation across industries. Insurers have recognized the potential of artificial intelligence to optimize their processes, reduce costs, and enhance decision-making. This evolution can be attributed to the following factors:

  1. Big data: The advent of big data has enabled insurers to access and analyze vast amounts of information related to customer behavior, demographics, and risk factors. AI algorithms can process this data to identify patterns, trends, and correlations that were previously difficult to discern.
  2. Advanced analytics: AI technologies, including machine learning and deep learning, have empowered insurers to develop predictive models that assess risk more accurately. These models consider a multitude of factors, improving the precision of underwriting and pricing.
  3. Customer-Centricity: AI-driven personalization has allowed insurers to create tailored policies and services that cater to individual customer needs. Chatbots and virtual assistants are used for claims processing, policy management, and customer inquiries, resulting in a more responsive and efficient customer service experience.

READ: 6 Game-Changing Conversational AI Applications for Your Business

Applications of AI in Insurance

AI is applied across various facets of the insurance industry, and its impact is profound. Here are some key applications:

  1. Risk Assessment and Underwriting: AI algorithms evaluate a vast range of data sources, including historical claims data, social media, and IoT devices, to assess individual risk profiles. This enables insurers to make more accurate underwriting decisions and calculate premiums that reflect the specific risk of each policyholder.
  2. Claims Processing: AI-driven automation simplifies the claims process. Chatbots and virtual assistants can gather initial information and guide policyholders through the claims process, speeding up claim settlements and improving customer satisfaction.
  3. Fraud Detection: AI is a powerful tool for identifying fraudulent claims. Machine learning models can detect unusual patterns and flag suspicious activities, helping insurers combat fraud more effectively and save substantial sums of money.
  4. Customer Service: Virtual assistants and chatbots provide customers with 24/7 support, answer queries, and offer policy information. This enhances the overall customer experience and reduces the workload on customer service teams.
  5. Predictive Analytics: AI is instrumental in predicting future insurance trends. It can help insurers identify areas with high potential for losses and adjust underwriting and pricing strategies accordingly.
  6. Customer Insights: Artificial intelligence enables insurers to gain deeper insights into customer behaviour and preferences. This information is valuable for crafting personalized policies, improving customer retention, and enhancing marketing strategies.

READ: AI Revolution — Unveiling the Transformative Power and Unforeseen Consequences

Benefits of AI in insurance

The adoption of AI in the insurance industry brings with it a multitude of benefits:

  1. Enhanced efficiency: Automation and process optimization have resulted in significant time and cost savings. Routine tasks, such as data entry and claims processing, can now be completed more swiftly, allowing employees to focus on more complex, value-added activities.
  2. Improved accuracy: AI-driven risk assessments and underwriting models are more precise and data-driven, minimizing the risk of incorrect policy pricing or coverage. This not only benefits insurers but also ensures that policyholders receive a fair and accurate premium.
  3. Fraud prevention: AI-based fraud detection systems are highly effective at identifying suspicious activities, ultimately saving insurers substantial amounts of money and protecting honest policyholders.
  4. Customer satisfaction: The introduction of chatbots and virtual assistants streamlines communication between insurers and policyholders, providing real-time support and quicker claims processing, ultimately improving the overall customer experience.
  5. Data-driven decision-making: AI enables insurers to make data-driven decisions in real-time, whether it’s in underwriting, claims processing, or risk management. This ensures that decisions are based on the latest information and trends.

READ: AI for Customer Service — 5 Easy Ways to Help Your Customers

Prospects of AI in insurance

The insurance industry is expected to witness further transformation as AI technologies continue to advance. Here are some key areas to watch in the future of AI in insurance:

  1. Enhanced personalization: AI will enable insurers to offer even more personalized policies, tailoring coverage to individual customer needs based on real-time data.
  2. Autonomous underwriting: AI may soon enable fully automated underwriting, where machines assess risks and calculate premiums without human intervention.
  3. Telematics and IoT integration: Insurers will leverage data from connected devices, such as telematics in automobiles and wearable health devices, to fine-tune underwriting and pricing models.
  4. Cyber insurance: As cyber threats continue to evolve, AI will play a pivotal role in assessing and mitigating cyber risks, leading to the growth of cyber insurance.
  5. Regulatory compliance: AI can aid insurers in staying compliant with evolving regulations by automating processes and ensuring transparency in decision-making.

The bottom line

we can say that artificial intelligence is ushering in a new era for the insurance industry, transforming traditional practices into modern, data-driven operations. From underwriting to claims processing and customer service, AI is enhancing efficiency, accuracy, and customer satisfaction.

As technology continues to advance and data sources expand, insurers that embrace AI will be better positioned to remain competitive, make data-driven decisions, and offer tailored services. The future of AI in insurance holds the promise of even greater personalization, autonomy, and an increased ability to adapt to emerging risks, making it an exciting and transformative space to watch.

 

Harish Mukkawar is a highly skilled and experienced digital marketer who has dedicated his career to driving online success for businesses. With a strong passion for data-driven strategies and a deep understanding of consumer behaviour, Harish has become an invaluable asset in the field of digital marketing. Reach him at [email protected].

Protect Your Business from Severe Weather and Inflation: 5 Strategies for Colorado Business Owners

Following the Front Range hailstorm of 2017, it’s hard not to look to the sky each spring and wonder what’s in store for this severe weather season — and with good reason. That storm resulted in approximately 167,000 auto insurance claims, more than 100,000 home and business claims, and $2.3 billion in costs, according to Claims Journal. Combine an increase in severe storms with the effects of inflation, and it’s a perfect storm for business risk.

READ: 5 Ways Small Business Owners in Colorado Can Survive Inflation

Unfortunately, it’s just not hail that Colorado business owners need to be concerned about. Heavy snows, extreme windstorms, tornadoes, and wildfires require you to have year-round vigilance when it comes to protecting your employees, business structures and equipment.

With forethought and planning, however, you can help shelter yourself from the unexpected and the high cost of rebuilding. Here are several ways to protect your employees and business while managing your risk.

Protect your employees

Your priority as an employer should be keeping your greatest asset — your employees — safe during severe weather events. Business owners in Colorado have a unique set of challenges when it comes to preparing for severe weather. Identify which severe weather events could affect your business locations and create a comprehensive emergency response plan to meet your needs. It should address the following:

  • Emergency equipment and supplies needed for short and long-term stays.
  • Severe weather exit and sheltering drills.
  • Individual roles and responsibilities for executing the plan.
  • A secondary offsite location to resume business operations.

Protect your structures and equipment

Whether it’s hailstorms or snow melt, putting effort into preparing your structures and equipment ahead of time can help you save money in the long run.

When possible, protect equipment and vehicles from hail.

Use overhead coverings or store them inside structures when not in use.

Conduct regular roof inspections for damage or wear, and make repairs immediately.

Consider using a third-party drone service to conduct the checks and prevent employees from risking injury from falls. Invest in hail guards for roof-top HVAC systems and make sure your roof shingles are rated appropriately for their exposures. Use impact-resistant solar panels.

As the snowpack begins to melt, water — and any refreeze that occurs overnight — can damage pipes and injure individuals.

To reduce the risk of costly liability claims from slips, trips, and falls, make sure you address any wet or icy conditions at your businesses as soon as possible. As temperatures rise, frozen pipes may also leak or burst — causing significant property damage. In both cases, consider hiring third-party professionals for pipe inspections along with snow and ice removal before they lead to an incident.

To protect against water damage, ensure your equipment and supplies are stored in locations on an elevated grade — or kept offsite in a location that is safe from runoff.

Whether your business is located near the foothills or in the middle of a city, keep equipment safe from potential water damage caused by sewer backups and snowmelt runoff — particularly amidst supply chain delays.

Mitigate wildfire damage.

Clear vegetation and debris around your business’ structures and buildings.

Reassess your coverage

Our current economic climate means just about everything costs more. An often-overlooked consequence of inflation is that your business may be underinsured when it needs to be rebuilt or repaired following severe weather damage. Much like inflation causes the cost of the goods we buy to increase, the properties you own — including the equipment inside — could cost more. Talk with your insurer and update your property valuation to cover possible gaps. You may also want to consider adding an inflation guard provision, which automatically increases the value of your insured property, at a percentage you set, to compensate for rising costs of materials throughout your policy term.

Maintain a business continuity plan

Risks continue to evolve, so it’s important to maintain and update a business continuity plan. This can help protect your employees’ livelihoods and aid in your business’ recovery after severe weather strikes. Consider adding business income insurance to that plan if you don’t already have it. It can help you pay for overhead and employee wages while you rebuild and manage lost profits. Think of it like a form of disability insurance for your business. Flood insurance can add an extra layer of protection based on your business’ location.

Protect yourself against the unexpected

If your business is damaged after a storm in the upcoming year, material inflation and supply chain delays could lead to longer recovery periods and even greater financial losses.

While you can’t prevent severe weather, you can prepare now. Review your risk management program — and most importantly have a conversation with your local experts and agent. They can help you navigate the unique weather challenges ahead and give you confidence that your business is prepared.

 

Paul BoehmPaul Boehm is a regional executive with Sentry Insurance. With more than 30 years of experience working with nationally recognized insurance companies, he has lived in Denver for nearly 20 years, helping support the risk and insurance needs of businesses in the Mountain region.

AI in Insurance: How New Technologies are Changing the Game

Artificial intelligence application in the insurance sector is not necessarily a novel idea. Yet due to recent technological developments, many insurers now have the capability to more fully utilize AI in the insurance sectors to transform their business. 

Current state and use of AI/technology in insurance

For many years, insurers have used statistical models and data analytics to forecast and evaluate risk. These conventional data solutions for insurance providers do have certain drawbacks, though. They take a lot of time, they’re expensive and they’re prone to mistakes. Also, they frequently draw on previous data, which may not be a good indicator of what will happen in the future.

By enabling insurers to make data-driven choices in real-time, artificial intelligence and machine learning have the potential to revolutionize the insurance sector as well as several other industries. Massive volumes of data from many sources, such as social media, IoT devices and other unstructured data, may be analyzed by AI-powered systems.

As data is a core component of virtually every business in every industry, these effects will be unquestionably impactful. Specific to the world of insurance; underwriting, claims processing, fraud detection and customer service may all be made better with the use of such data tools.

READ: AI in Employment — A Troubling Issue in the Hiring Process

How new AI technologies will impact and change insurance?

The act of evaluating a potential policyholder’s risk and establishing the proper premium is known as underwriting. Conventional underwriting practices sometimes rely on insufficient or out-of-date data, which can result in erroneous risk evaluations and increased client rates. By examining a wider variety of data sources, such as social media, credit scores and driving behaviors, AI-powered underwriting can assist insurers in producing more accurate risk assessments. Moreover, AI has the potential to automate the underwriting procedure, speeding up the policy issuance process and enhancing client satisfaction.

Another area where AI can have a big influence is in claims processing. The typical claims processing methodology is frequently labor-intensive, error-prone and manual. By automatically checking claims, spotting possible fraud and sorting claims according to severity, AI-powered claims processing systems can speed up the process. This increase in the resolution of claims will surely increase client satisfaction.

For insurers, fraud is a major issue that costs them billions of dollars annually. The majority of the time, traditional fraud detection techniques are reactive and rely on post-incident investigation to determine fraud. Systems for detecting insurance fraud that are driven by AI may be proactive and analyze trends and anomalies in real-time to find probable fraud before it happens. By avoiding the payment of bogus claims, this can save insurers time and money.

READ: Combatting E-commerce Fraud: Best Practices for Fraud Prevention in Online Sales

In the insurance sector, AI may also enhance customer service and satisfaction. Customers may get immediate responses to their questions and concerns through chatbots, virtual assistants and other AI-powered solutions. Moreover, AI may assist insurers in tailoring their offerings to each client’s particular demands, increasing client satisfaction and loyalty.

Potential challenges

Although AI has the potential to completely transform the insurance sector, there are still a number of issues that insurers must deal with. Privacy and cybersecurity challenges are among the biggest difficulties. The proper and moral collection and use of consumer data is the responsibility of insurers.

Moreover, they need to safeguard client data from potential hacks and security holes. Potential effects on employment present yet another difficulty. Several jobs that are now carried out by human personnel might potentially be automated by AI-powered technologies. This may result in cost savings for insurers, but it might also cost people their jobs. Insurance companies need to find a method to combine AI’s advantages with any possible effects on employment.

READ: How to Minimize Cybersecurity Risks and Balance Customer Friction for your Online Business

The bottom line

As has been shown, artificial intelligence and other emerging technologies have the potential to drastically alter the insurance sector in ways that we do not yet completely comprehend. Although there are certain issues that need to be resolved, AI has a lot to offer customers and insurers. Insurance companies may improve the product suites, operations and customer service by utilizing AI and other cutting-edge technology. We can anticipate many more cutting-edge applications of AI as the insurance sector develops, which will certainly have a massive impact on the sector’s future.

 

Ben HartwigBen is a Web Operations Executive at InfoTracer who takes a wide view from the whole system. He authors guides on entire security posture, both physical and cyber.

7 Tips for Choosing Your Health Insurance in 2023

Amid higher inflation, you may be looking at ways to adjust your lifestyle and spending habits. But when it comes to health care, it’s important to keep your well-being and budget in mind.

Annual and open enrollment season is here — a time when more than 5.7 million people in Colorado and across the country will have the opportunity to select, or switch, their health insurance plan for the coming year.

Open enrollment is a good chance to review how often you’re using health services and decide whether you’ll stick with the plan you’ve got or switch to another being offered. It’s also an opportunity to assess your overall care costs to ensure you’re choosing a plan that will work best for next year’s budget.

READ — A New twist on health insurance

Enrollment timing — For people with coverage from their employer, open enrollment typically happens for two weeks sometime between September and December. Medicare members can enroll or make changes to coverage from Oct. 15-Dec. 7. Most selections made will take effect on Jan. 1, 2023.

Here are seven things to consider when evaluating the next move in your health insurance journey:

1. Understand all your options

Take time to understand and compare the benefits, services and costs of each plan, so you can figure out which will work best for you. A good first step may be to watch a quick refresher video on health insurance lingo, including premiums, deductibles, copays, coinsurance and out-of-pocket maximums.

  • Medicare members: As you weigh your options, ensure you’re familiar with the difference between Original Medicare and Medicare Advantage. If you need a review, visit MedicareEducation.com — an online resource with answers to questions about eligibility, plan choices, cost basics, prescription coverage and more.

2. Check your prescription benefits

Knowing how to get the most out of your prescription benefits may help you manage costs. For example, check into discounts and lower-cost alternatives, including generics, which may be available. You may also be able to fill your prescriptions at a participating network pharmacy or with home delivery by mail — two more money-saving options. 

  • Medicare members: You may be surprised to learn Original Medicare doesn’t generally cover prescription drugs. Consider adding Part D or a Medicare Advantage plan with prescription drug coverage to help keep your medication costs in check.

3. Check for mental health coverage

In addition to in-person mental health care, you may have access to a large virtual network of therapists and psychiatrists. Some health insurers also offer advocacy services to help you find the right type of behavioral health care.

  • Medicare members: Some plans offer virtual mental health care with a $0.00 copay, including UnitedHealthcare Medicare Advantage.

4. Don’t forget about specialty benefits

Additional benefits, such as dental, vision, hearing or critical illness insurance, are often available and may contribute to overall well-being.

  • Medicare members: You may be surprised that Original Medicare doesn’t cover most dental, vision and hearing services, but many Medicare Advantage plans do.

5. Look into wellness programs

Many health plans offer incentives that reward you for taking healthier actions, such as completing a health survey, exercising or avoiding nicotine.

  • Medicare members: Many Medicare Advantage plans also offer gym memberships and wellness programs for members at no additional cost.

6. Anticipate next year’s health expenses

If you’re expecting a significant health event in the next year, such as surgery or the birth of a child, compare the differences in plan designs for that specific situation, including any out-of-pocket costs.

7. Consider a plan with virtual care services

If you’re busy or just prefer connecting with a doctor from the convenience of your home, consider choosing a plan that includes 24/7 virtual care. You may have access to virtual wellness visits, urgent care and chronic condition management.

  • Medicare members: Most Medicare Advantage plans provide access to virtual care, which can be an easier, more affordable way to talk with doctors about common health issues on a smartphone, tablet or computer.

For more helpful articles and videos about open enrollment, visit uhcopenenrollment.com.

 

George Young 1George Young is the CEO at UnitedHealthcare Medicare & Retirement, AZ, CO, MT, NM, WY.

 

Aco Summitt

Marc Neely is the President and CEO at UnitedHealthcare Employer and Individual, CO & WY.

 

The Future of Colorado Dental Care Lies in Digital Transformation

The dental benefits landscape stands to gain significantly from digital transformation, particularly in Colorado where access to dental healthcare is alarmingly low across certain patient populations.

Presently, 1.3 million Coloradans — that’s a little over one-fourth of the state’s population — lack access to dental insurance. These statistics can reasonably be classed as bleak.

This disparity must be addressed: affordable dental care significantly decreases the onset of harmful oral health conditions and can help increase the number of Coloradans with access to proper dental coverage. Implementing a consistent cadence of preventive care and clinical intervention in childhood is particularly important for establishing healthy habits and achieving early disease detection.

READ — The Success of Our Economy Depends on Accessible, Affordable Child Care

The implications of increasing access to dental care for patient populations are far-reaching. Improving patient access to dental care results in healthier Colorado residents, higher job retention for employers, and reduced healthcare costs overall.

Increasing patient access to dental health insurance in Colorado must be a priority in the coming years to reduce health disparities and bolster the quality of life for all Coloradans.

Admittedly, people might be hesitant to visit the dentist. The hefty premiums, confusing benefit details, and uncertainty of what it might cost keep many Coloradans from routine dental appointments. But it’s an integral puzzle piece that completes the picture of a healthier life.

Better dental benefit options mean healthier Colorado residents and employees.

Dental insurance ranks as the third most important benefit to employees, and offering dental insurance to employees can both improve employee retention and employee health.

Having good dental hygiene reduces the chances of gum disease, which can be detrimental to an individual’s health, nutrition, and appearance.

Gum disease exacerbates a host of other chronic conditions, including diabetes and heart disease. It can also cause tooth loss over time, which impedes what a person can eat, how they speak, how they look, and how they feel about themselves.

While visiting the dentist with reasonable regularity may take some time and effort in the short term, it saves employees and companies a ton of time in the long term. One report from the Surgeon General found that employed adults miss more than 164 million hours of work each year due to dental disease or dental emergencies.

Offering dental benefits as part of employees’ benefits packages enables them to access vital preventative care and reduces the chances that dental emergencies will arise. By extension, access to dental insurance also decreases the number of productive hours employees lose each year due to oral health issues.

READ — Local Dental Office Addresses the Special Needs Community

The dental insurance status quo is dated.

The term “dental insurance”, while universally accepted, is a misnomer. Insurance generally denotes a buffer against steep financial expenses that patrons pay overtime to protect themselves against the high cost of unexpected crises.

But that’s not really what “dental insurance” is. Unlike medical insurance, dental insurance does not cover any serious problems or procedures. Today’s dental insurance is only meant to pay for routine maintenance procedures like cleanings and checkups – it does not offer protection against serious and costly oral health issues.

Typically, traditional dental insurance has an annual maximum of $1,000 to $2,000 in coverage, and also requires co-payments for all major services. But emerging tech-led dental platforms are changing the status quo.

With these next-gen dental benefit platforms, plans can be customized and upgraded based on each group’s needs. Additionally, there’s no added risk of emerging dental emergencies. These platforms empower employers to set limits and know their precise rate of utilization. And importantly, employers keep all unused benefit dollars.

This last perk is particularly important in light of a 2020 internal study, which found that only 9% of Americans use their entire annual maximum. This allows traditional insurance companies to retain unused benefit dollars.

Next-gen dental benefits platforms don’t work that way. They let employers keep the excess and save on State and ACA taxes, claims processing fees, and insurance capital reserves.

It’s time to change the status quo of dental insurance with modern technologies and innovation.

Colorado dental benefit options are transforming the oral care landscape.

Colorado is leading the charge for the digital transformation of the dental care industry. This digital transformation is taking place in the form of a SaaS solution that enables employers to build, launch, and administer their own dental plan without the need for traditional dental insurance companies.

Leveraging an end-to-end platform to build custom dental plans lowers the cost of plan administration and claims processing. It also offers members access to greater transparency and discounted rates.

With flexible customization options, companies of every size and budget can tailor their plan to meet their specific needs, with significant cost savings. As a result, employees can get better benefits at a lower cost.

Companies and individuals can choose plans designed to meet the needs of associates, part-time workers, and contracted workers.

Overall, self-insuring benefits through an innovative digital platform help companies deliver better benefits to employees for a lot less.

Digitizing the dental benefits process provides a better and more modern end-user experience for employees, translating to higher adoption rates and fewer frustrations.

Ram is a serial entrepreneur with nearly 30 years of experience in technology development, senior management, marketing and sales in the US, Canada, UK, France, Italy, Israel and India. Identifying the need for change, Ram founded Bento in an effort to create a better experience and provide affordable oral care for all Americans. Prior to building Bento, Ram successfully built multiple startups. Ram was the Founder and CEO of Cimaron (acquired by AMCC), Founder, CEO and Chairman of CHiL Semiconductor (Acquired by IR, IR then acquired by Infineon) and Chairman of the Board at Sanovi (Acquired by IBM). Ram has also served senior positions as Sr. VP, GM & CTO at AMCC, Sr. VP at IR, and Architect at AT&T Bell Labs.

Affected by the Marshall Fire? What To Do After Filing a Fire Insurance Claim

Boulder County’s Marshall Fire ravaged homes, businesses, buildings, and other properties in Superior, Louisville, and unincorporated Boulder County on December 30, 2021. It turned into Colorado’s most costly wildfire to date, with preliminary loss estimates of at least $2 billion.  

In less than 24 hours, the Marshall Fire obliterated 1,089 homes and significantly damaged another 149. Property owners have submitted insurance claims and are now dealing with the claims process. 

If your home was destroyed or damaged in the Marshall Fire or any other fire, you might wonder what to do after a fire insurance claim. While reporting the fire claim to your insurer is an essential step that should be taken as soon as possible, your job doesn’t end there.  

Under your insurance policy, you must take other actions that protect your right to recover. Experiencing a house fire can be devasting and overwhelming. But it’s important to take these necessary steps to ensure a recovery to the fullest extent allowed by your policy during this difficult time. 

Communicate and Continue to Follow Up with the Insurance Carrier 

Once you have reported your claim, communication with the insurance carrier is critical. The adjuster assigned to your case should call you and schedule a time to come out and inspect the damage. If you are asked to provide additional documentation or proof of your damages, do so promptly, to the fullest extent possible. Your insurer should keep you updated on where your claim is in the process and what you should expect. If at any time you feel like they are intentionally or unreasonably delaying your claim, it’s time to reach out for legal help.

Take Pictures and Videos 

Whether you use a cell phone or a different camera, get pictures and videos of the damage to your property. Be sure to document both the inside and outside, paying close attention to any specific areas with substantial damage. You should also take pictures and videos of what is left of your belongings to show the extent of your losses. For fires, you will also want to include pictures of any smoke damage.  

Gather Old Photos and Videos 

To the extent you can retrieve pre-fire photos and videos of your property and belongings, gather them and provide them to your insurance company.  This helps to document what you had before the fire versus what has been lost.  It will also assist in placing an accurate value on personal property and your home’s finishes. 

Put Together an Inventory 

With the assistance of memory, pre-fire photos and videos, and talking with your loved ones, put together a spreadsheet of the personal property you believe you have lost.  To the extent you can, place a dollar value on each item or category of losses.  If you can identify the specific item lost, it can be helpful to search the internet for links to that item for sale today and copy them into your spreadsheet. This is time consuming and painful, but it is necessary. If you do this right, the insurance company is less likely to underestimate your losses. 

Get Everything in Writing 

Unfortunately, you can’t just take the insurance company or adjuster’s word for it. Whatever they tell you, get it in writing. If they provide you with a settlement offer, get it in writing and read it carefully. Anything they tell you should be documented so that you have a paper trail of everything that has occurred since the start of your claim. Put your communications to the insurance company in writing. Get your adjuster’s email address and send communications directly. You may need these records to back up something you were told, or that you told the adjuster. If it comes to it, such documentation will be helpful in any subsequent legal action you are forced to take against the company if it doesn’t act in good faith to settle your fire damage claim fairly and promptly.

Talk to an Insurance Claims Attorney Before Signing Anything 

As a claimant, you have the right to hire an attorney or to file a legal action when the insurance company violates these rights. The claims adjuster might act like they may be trying to save the insurance company money, but paying you fairly for your claim without any delays is counter to the insurer’s bottom line.  

Don’t blindly sign anything the insurance company gives you without first reviewing it with an experienced insurance claims attorney. The documents they ask you to sign may be filled with insurance and legal jargon that could jeopardize your rights without you even knowing what you are signing. Protect your claim by being an informed consumer with a legal advocate on your side. 

 

Zachary Warzel Headshot 2 2Zach Warzel, from the law firm of Keating Wagner Polidori Free, PC, has represented personal injury and bad faith clients since 2005. He focuses on representing insurance policyholders and complex personal injury clients. His notable cases include a $4.8M jury verdict against a supplemental health insurance company and a $2.2M jury verdict against a liability insurance carrier. Mr. Warzel has argued cases before the Colorado Court of Appeals, the Colorado Supreme Court, and the United States Court of Appeals for the Tenth Circuit.

Mr. Warzel was named Lawyer of the Year by Best Lawyers in American in the area of Insurance-Litigation in 2018 and 2022.

Top Entrepreneur Finalist: Jenn Knight, CTO and Niji Sabharwal, CEO

The wife-and-husband duo of Knight and Sabharwal met working together at LinkedIn in the Bay Area. “We really liked working with each other and were hoping to find another opportunity to do that,” says Sabharwal, 37. “I never would have thought it would be regulatory compliance software for the insurance industry.”

Knight, 36, concurs: “We worked together at LinkedIn, building things, and I never expected this would be the thing we built together, but it was a fun moment as we realized we had something we could probably make an impact with.”

But that’s what they did when they started AgentSync in California in 2018, then moved to Colorado with their startup in 2020. “It was a fantastic transition for us,” Knight says.

The company has scaled from three people to about 100 at its Denver office (and 130 total) in 2021 as it landed $100 million in VC investments since moving the HQ. Knight and Sabharwal forecast 2X growth in 2022 while hiring at least another 100 employees. Four new products — including “a pretty big, game-changing one,” Sabharwal says — are also on the calendar.

Another big event for the founders: They welcomed a baby to the family in late 2020. “I can’t even imagine doing that in San Francisco or really any other bigger city,” Sabharwal says. “The work/life balance here is exactly what we were shooting for.”

They live and work in Denver’s Five Points neighborhood, and the commute is six minutes by foot. “Being able to walk our daughter to school is not something we ever would be able to do — and that’s been pretty miraculous,” Knight says.

Any advice for aspiring entrepreneurs? Be patient and persistent. “The first year is always really hard and really lonely,” Knight says. “When you get through the first year, you start to get traction, things start to change, and things go forward.”

 

Agentsync Jenn Knight Cto And Niji Sabharwal Ceo
Niji Sabharwal, CEO | Jenn Knight, CTO

AgentSync
AgentSync’s mission is to create efficiency for the nation’s insurance industry – one more step forward among many in lowering insurance costs in the U.S.

 

 

THIS ARTICLE IS PART OF COLORADOBIZ MAGAZINE’S FEATURE FOR TOP ENTREPRENEUR FINALISTS

 

How Colorado businesses can better prepare for wildfire season

Every August, more than 9,000 wildfires burn in the U.S., on average, causing nearly two million acres of damage, which includes residential and business structures. 

Looking at historical data of the 20 largest wildfires in Colorado’s history, nine of those have occurred since 2018, 15 of those have occurred since 2012 and all 20 have occurred since 2001. Even more alarming, the three largest fires all occurred in 2020.  

“We’re having fire years, not fire seasons anymore,” said Colorado Division of Fire Prevention and Control Director Mike Morgan.

Ahead of the wildfire season, Society Insurance, which provides coverage to the hospitality industry in Colorado and beyond, has put together prevention tips and controls a business owner can implement to better protect their establishment from wildfires.

Identify and Proactively Address Your Defensible Zones

The Federal Emergency Management Agency (FEMA) defines a defensible space as an area around a building in which vegetation, debris and other types of combustible fuels have been treated, cleared or reduced to slow the spread of fire to and from the building. The National Fire Protection Agency (NFPA) recommends a defensible space of up to 200 feet from a structure, which encompasses three zones. Each zone has different maintenance needs:

  • Zone 3: 100+ feet (to property line) – Remove dead trees & plants. Keep trees spaced. 
  • Zone 2: 30-100 feet – Remove dead vegetation. Remove hanging branches at least 6 feet off the ground. Trim tall grasses/plants that would allow fire to travel up trees.
  • Zone 1: 0-30 feet – Use gravel, rock or mulch. Relocate firewood piles. Plant high-moisture content annuals and perennials.

Understand Your Severity Zone 

Depending on which severity zone a business is in will ultimately dictate what preparations they need to do to protect their property. As you can expect, preparing for a potential wildfire is even more critical if your property is classified as being in a high or extreme severity zone.                                                                                                                                                                                                         

A severity zone is classified as moderate, high or extreme. These classifications can be based on:

  • Fire history in the area
  • Vegetation/landscaping
  • Slope
  • Other terrain features

Search where you operate in Colorado to view the risk using this tool from the United States Department of Agriculture. You should also consider contacting  your local insurance agent to discuss in more detail.

Examine–and Possibly Reassess–Building Materials

From your roof to your patio, it’s important to understand what materials offer the best fire protection and the controls you can implement to reduce the likelihood of your livelihood going up in flames.

Roofing

Class A fire-rated roofing material is most effective against fires. Fire-resistant roofing materials include:

  • Clay tile
  • Slate tile
  • Concrete tile (fiber-reinforced)
  • Metal

It is equally important to keep roofs and gutters clear of pine needles, leaves or other debris. It’s also a good idea to have a local fire marshal or roofing professional assess your roof.

Windows and Vents

Dual-pane windows with tempered glass offer increased protection against radiant or direct flame contact. Vents should be covered with 1/8 inch (minimum) noncombustible metal mesh screening to help minimize the size of embers that can enter attic or crawl space area vents.

Patios, Decks and Porches

Flammable materials should not be stored on or under decks. Consider enclosing your elevated deck, patio or porch. Some manufacturers are also incorporating fire retardant chemicals into products like wood-plastic composite decking, so be sure to look into this material option. If you have an existing wood deck and are not looking to replace it any time soon, consider having it treated with exterior fire retardant.

Enforce Smoking Controls

The National Park Service estimates at least 85% of wildfires are caused by human activity. Provide receptacles in easily accessible areas and place these away from the building and combustible materials. Ensure your employees empty these receptacles regularly. The ground should also be cleaned of cigarette butts to eliminate fire hazard.

Last year was an extremely challenging fire season in Colorado and the National Significant Wildland Fire Potential Outlook expected warmer and drier than normal conditions, especially in the West, throughout the summer. Additionally, more than 90% of the West is in drought with over half the region in extreme to exceptional drought.

By investing in quality building materials, taking proactive measures of regularly maintaining the landscape around your building, and understanding the risk where your business is, you are taking control of the variables in your power and taking proactive measures for a situation that can seem out of your control. 

Jarrett Wagner is a risk control representative at Society Insurance. He began his career at Society Insurance in 2008 in the property, auto and liability claims department. During his tenure at Society Insurance, he earned his AIC and AIS designations and has spent the past three years in risk control. Wagner has a B.A. degree in criminal justice from Illinois State University. 

This information is provided as a convenience for informational purposes only. This information does not constitute legal or professional advice. It is provided to assist you in recognizing potential unsafe work problems or conditions and not to establish compliance with any law, rule or regulation. 

Construction risks and 5 insurance policies you need

Construction and contracting businesses face a wide range of risks. That’s true of all small businesses, of course, but there are aspects of construction work that increase the potential for claims.

Job sites are busy places buzzing with activity, where it’s easy for someone using a power tool or operating heavy equipment to become distracted and cause an injury or property damage. Also, weather can be a factor in some instances, creating less-than-optimal work conditions or causing workers to hurry, which increases the chance of an accident.

But job site injuries and property damage aren’t the only risks. Incidents like accidents involving company vehicles or confidential information about clients being stolen by a hacker can occur.

For these reasons, it’s imperative that construction and contracting business owners get and maintain adequate small business insurance. However, as Peter Shelley, president at small business insurer biBERK (part of Warren Buffett’s Berkshire Hathaway Insurance Group) points out, “Because there is tremendous variability in what these types of companies do and how they do it, construction risks are often covered by multiple policies, each focused on a different type of risk. Our licensed insurance experts are available to assist business owners if they need help determining the right policies for the type of work they do.”

Understanding what your risks are and how to address them is essential to protecting your employees and your business. Fortunately, as Shelley notes, “Obtaining the multiple policies your company needs is easier and less time-consuming than it may sound once you have a general understanding of small business insurance for construction companies.”

Common Construction and Contracting Business Risks 

For construction companies and contractors, the most common business risks—and the types of insurance that protect you from them—include: 

Employee on-the-job injuries and illnesses

An employee arrives at a new construction site, takes two steps into the work area, and is struck by debris from collapsing scaffolding. You hope this type of thing never happens, but it’s the reason that workers’ compensation insurance is required by law for most small businesses in most states and has to be in place before the first shovel of dirt is turned or nail is driven. Sometimes called workman’s compensation insurance, this type of policy helps pay bills associated with a work-related injury, including medical care and lost wages.

Damage to customer property and injuries to non-employees

Even the most careful workers make mistakes that can damage customer property. For example, a welding torch that was thought to be extinguished is not and sets fire to the building your crew is working in. General liability insurance can cover the cost of repairs. Similarly, if a client slips and breaks their arm while visiting your office, a “GL” policy may cover liability that results from the accident. 

Bodily injury and property damage liability associated with the use of company vehicles

An employee is driving a company vehicle to get supplies and strikes a pedestrian. A commercial auto insurance policy can cover costs related to the person’s injuries, including legal defense costs. This type of insurance also can cover claims associated with your vehicle hitting or being hit by objects, injuries to passengers in your vehicle, and property damage caused by your vehicle, among others.

Loss of sensitive client data

You arrive at your office one day to find that a hacker has gained access to your computer and stolen sensitive customer information. If you have cyber insurance, purchased as an add-on to other coverage like a general liability policy, it can cover costs when data has been stolen and fraud has occurred or there is a reasonable expectation that it might occur.

Exceeding the limit of an existing policy

The right small business insurance policies can protect you from typical claims. However, it’s possible for an especially large claim to exceed the limits of the policy that addresses it. In that instance, an umbrella insurance policy can kick in to cover the difference. For example, referring back to the job site fire scenario mentioned above, if the claim totals $175,000 and your general liability policy has a maximum of $150,000, an umbrella policy could cover the additional $25,000. In many cases, purchasing umbrella insurance is more cost-effective than increasing your policy limit. 

So, in summary, every construction or contracting company should consider these types of insurance, in addition to others if appropriate:

  • Workers’ compensation
  • General liability
  • Commercial auto
  • Cyber add-on coverage
  • Umbrella

It’s also helpful to know that general liability and commercial property insurance can be combined into what’s known as property & liability insurance or a business owners policy (BOP). A contractor might purchase this type of policy if, for example, they have a storage facility or workshop and want property coverage for the buildings and their contents. This can be a convenient way to manage a variety of risks in one policy.

Understanding Small Business Insurance Policy Endorsements 

Construction business owners wanting to tailor their insurance coverage to their specific needs can do so using what are called endorsements or riders. An endorsement modifies an insurance policy by adding or deleting specific types of coverage.

For example, the tools and equipment you use in your work aren’t covered by property & liability insurance at the base level of coverage. However, you can add an endorsement to protect those items while they are on the job site, being transported, or temporarily in storage between jobs.

Insuring a Construction Business Today Is Easier Than Ever 

“The challenge of ensuring that your construction company is properly protected can seem daunting,” adds Shelley. “However, many small business insurance providers like biBERK now enable you to get insurance quotes, buy policies, and file claims all online.”

 This makes it easier than ever to get the coverage you need. And since online providers often have very competitive rates (biBERK’s are up to 20% below other providers), there’s no reason your construction company should go without proper protection and the peace of mind that comes with it.

How restaurants can protect themselves against the costly hail season

With so many uncertainties in the restaurant and bar industry, there’s one consistent hazard in Colorado every spring: the return of hail season. Colorado’s infamously dangerous and costly hail season begins mid-April, running throughout the summer and into September, and your business should be prepared.

Colorado is one of the most hail-prone states in America, with a reported 380,066 hail loss claims between 2017 and 2019, according to the National Insurance Crime Bureau. This represents 14% of all hail claims in the United States. In fact, of the top five U.S. cities with the most hail loss claims, two are in Colorado – Colorado Springs and Denver. And the financial impact of the damage is tremendous. In May 2017, a powerful storm accompanied by hail resulted in $3.6 billion in damages across Colorado.

While you can’t predict the unexpected, restaurants can better prepare themselves with annual preventive measures against these dangerous storms. The following are best practices for bars and restaurants to avoid costly storm damage and insurance claims from hailstorms and other natural disasters.

Regularly inspect your roof

Not only does regularly inspecting your roof extend the life of your roof and save you money in the long term, it also allows you to troubleshoot and remedy any issues such as split shingles, loose or broken roofing material, rusty metal and sagging. Inspecting your roof every year or two will help prevent indoor damage to your property.

Address drainage problems prior to hail season

Check your gutters and building drainage before the storm season begins. If your gutters are due for a cleaning, contact a local gutter company to complete the job. Additionally, if your roof has been damaged, your gutters have probably been damaged too. Neglected gutters spell disaster as they accumulate debris and standing water. Standing water can easily overflow into your foundation, potentially flooding the basement and shutting down your establishment.

Secure outdoor items to prevent wind damage

Grills, picnic tables and lawn furniture can become projectiles in high wind scenarios. It’s best to ‘Batten down the hatches’ as they say — you don’t want your patio umbrella to go spiraling through the air during a summer storm. Consider securing patio furniture with steel security cables if you cannot safely store furniture indoors.

Trim your trees to prevent storm damage

While dead trees and dead branches are a liability all of the time, dead branches are more likely to fall during heavy storms and gusting winds. This can be hazardous to you, your employees, patrons and the building. From tree limbs falling on the roof to dead branches getting tangled in power lines, a well-maintained property will help you avoid costly storm damage insurance claims.

Research insurance companies and policies

Like with cars and apartments, you should shop around for the insurance policy that fits your business best. Try and select an insurance company that understands the unique needs of your restaurant or bar. The right company will know where the risks are and can help you control them to minimize loss.

 

Colorado’s Front Range receives the highest frequency of large hail in North America. Residents can expect three to four catastrophic hailstorms every year, defined as at least $25 million in insured damage. Restaurant owners can lessen the damage to their building, payroll and bottom line if they invest a little bit of time every year into preparing for the season.