Broker Prefers a Road Not Taken
Sometimes the best risk management move is the one that isn't made -- although that might not be so evident if it's not understood throughout an organization prior to a loss.
Patricia Piccinini, vice president with Aon Risk Solutions, understands this and helps clients determine through critical analysis which risks to insure and which to retain.
Laura McWeeney, former director of Maryland's Insurance Division and now associate general counsel to the University of Maryland University College, was in her previous role fielding numerous questions from a state public transportation agency about the benefits and drawbacks of purchasing business interruption insurance for its rail lines through two existing coverages: An inland marine rail car floater and an excess property policy.
"Ms. Piccinini suggested a conference call with myself, the rail risk manager, and the carrier for these coverages so we could have an open discussion with potential scenarios on both policies and see if (the agency) had resources to handle the situation if a loss occurred, or if the business interruption coverage was a cost-effective and necessary route to go," McWeeney said.
Ultimately, the state agency decided to retain the business interruption risk and not purchase coverage, but that decision in no way diminishes the value of Piccinini's coordination of the coverage examination, McWeeney said. "Had the broker not helped us with this issue, there could have been a claim involving loss of revenue, and there would have been much turmoil about not having the coverage and why didn't we have it."
February 21, 2012
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