Managing risk as a manufactured home dealer is key in today’s high-risk environment. Problems with inventory are not uncommon and can result in costly damages. Without proper coverage, it may take months to years to recover financially, even when your business did everything right.

It can seem daunting to take on such odds and attempt to control your risk exposure. But there are a number of simple procedures dealers can follow that make risk management for your business more effective.

It starts with your insurance coverage, understanding how that coverage works and following its terms and conditions closely. Manage your risks actively, and don’t let things run on autopilot. These four best practice secrets are how to do it.

1. Know How and When to File a Claim

With serious problems few and far between, knowing how and when to file a claim is not always easy. You may not have filed a claim in the past or not filed a claim with your current insurer. Or, it may have been so long since your last claim that you’ve forgotten what you need to do.

Yet while the claim process can seem daunting, it’s important to act as soon as you become aware of a potential problem. Insurers rely on prompt reporting, something that often helps minimize overall claim costs due to faster processes and simpler resolutions. Additionally, the conditions of your coverage may also require reporting a claim within a certain timeframe.

2. Track Your Policy Expiration Dates

All insurance policies come with expiration dates and it’s important to keep track of them on your business’s calendar. Usually, this is the date of the one-year anniversary of when you last purchased or renewed your coverage. Your policy documents will give the exact date for your records.

Expiration dates are very important in insurance for a couple of reasons. First, you don’t want to miss a renewal, go without coverage and face exposure to unnecessary risk. Secondly, you’ll want to make sure all claim matters and potential claim matters are reported to your insurer before your next coverage renewal or modification. There’s usually a grace period specified in the documentation for policies renewing exactly as-is without modification, but this provision varies, so expiration dates are still very important.

3. Establish Claim Reporting Procedures

Because it’s so important to identify and act on claims and potential claims in a timely manner, it’s important to establish some claim reporting procedures to minimize risk to the business.

Often the person at your dealership who first becomes aware of an issue is not the one who will need to handle the claim. Miscommunication, failure to escalate and lost messages can result in a claim not being reported or reported late. Some insurers consider an old email that shows prior knowledge of the claim as grounds to deny a claim which has been reported after the end of a policy period.

To reduce the risk of a denied claim, it’s important to have a reporting system in place. Team members can then report the claim internally through the proper channels so that you can meet all the necessary terms and conditions of your policy.

4. Train Your Team on Risk Management

Good communication can go a long way toward reducing the risk your business faces. But it’s important that everyone in your business knows what to do in certain situations. A miscommunicated plan will leave you open to unnecessary risk.

Everyone on your team should understand that problems can and do occur. Provide examples of scenarios, questions or statements that could be the first indication of a problem. Provide documentation of the procedures to follow to ensure claims and potential claims are immediately reported. Make sure everyone knows what channels of communication to use and how to confirm important messages are received.

Insurance Protection for Manufactured Home Dealers

In today’s world, the right insurance coverage is key. With coverage designed specifically for manufactured home dealers like you, Lockton Affinity’s Triad Financial Services Insurance Program protects dealers from the costs of inventory damage, loss and theft, all while providing comprehensive coverage and convenient billing. Our team is well-versed in the needs of manufactured home dealers like you. Whether you have a simple question or need a full policy review, we’re here to help. Visit us or call (800) 522-2013 to learn more and get started today.