Insurance

Insurance: risk premium

In these times when unnecessary costs must disappear, telematics seems to provide a definitive answer to cost tracking. What could be better than real-time monitoring of all park activity? But before covering the slightest mini-excavator with sensors, the other items of expenditure undoubtedly deserve a little audit. Machinery insurance, for example, should not be neglected. No more decisions taken out of habit or emotion, it is now a question of defining a real plan according to its disaster statistics. “, observes Claude Noël, director of construction development for the risk management and brokerage group WTW in France. The approach may prove to be all the more relevant as prices rise. “”, notes Sarah Chesneau, account manager of the Théorème brokerage firm. She also notes a certain mistrust of insurers who are more demanding as to the quality of the risks to be covered. Claude Noël nuances this observation somewhat, “”

Insurance: risk premium

Shared claims

In this new environment, the broker’s role is not limited to finding policies. Théorème or WTW evaluate the risks of their customers then help them to determine the part to be transferred to insurance and the part to be taken internally, also called risk retention (from English Risk retention). ” In a context of cost rationalization, insurance requires a financial approachsays Claude Noel. By means of modelling, it is possible to estimate the total cost of risks, ie the retention and premiums for transfers to insurance. The analysis of the latter should make it possible to optimize insurance budgets. In other words, a fleet operator may find it beneficial to become their own insurer for a number of issues. Instead of paying out bonuses, he will set aside cash to cover his repairs. “ In this configuration, we can administer the working capital of the self-insurance and guarantee the services delivered by the insurance companies.says Sarah Chesneau. The customer thus retains assistance in managing claims. In the competition between the different insurers, the broker will gauge the quality-price ratios rather than the prices. “We must not stop only at the prices. All the characteristics of coverage and deductibles must be studied, remind the account manager. Businesses may be tempted by exotic companies, but they run the risk of failing to settle claims or finding themselves looking for a buyer in the event of the insurer’s bankruptcy. These consequences must be taken into account. »

Offer more flexibility

The generalization of risk analysis could disrupt the habits of insurers. Here they are confronted with owners of equipment whose specifications will become more and more precise. SMABTP has grasped this growing need for flexibility. ” The expectations of the construction industry are at the heart of our businesspoints out Didier Gangloff, property damage director for the company. We have therefore chosen to review our approach in order to offer more flexibility to our customers. » For fleets of less than 15 units, the machine breakdown contract can be individualized for each piece of equipment. For larger fleets, the Kantor Parc formula covers all machines, including automatic coverage of new machines without declaration, if their purchase value is less than 300,000 euros. Didier Gangloff notes some important features of these policies: the goods remain covered in the event of a requisition by the public authorities. ” This is a fairly common situation. We preferred to mention it automatically in our contracts. The latter may also include a mutual assistance clause. The machine and its equipment then remain covered in the event of temporary loan to the site. In addition, tires and tracks, if their wear does not exceed half, are also guaranteed. Another product designed for the construction industry, Kantor Location insures the machines rented by the company. Its price is calculated according to the amount of the rental budget. When it comes to theft, SMABTP takes into account the protection tools installed, “ with two benefits: a reduction in the price and a reduction in the deductible in the event. “Among the options, the director points out the presence of new reimbursement for 3 years, “ without deduction of obsolescence. This is an interesting option of total destruction. »

If apart from a few clauses, most machines are satisfied with a classic contract, there are materials that are essential to the company’s activity. Comprehensive insurance up to and including business interruption coverage may then prove to be essential. Despite their risky nature, these special cases still find takers. ” This playing field is still of interest to insurance playersnotes Claude Noel. We work with a few companies in this area. In this vein, the director notes the appearance of new comprehensive policies intended for companies working outside of French territory. They include transport insurance for the machine, international warranties and possibly cover for operating losses. That said, in view of current developments in the sector, out-of-the-ordinary cases will multiply. SMABTP is currently working on the question of electric and hydrogen engines. “ We already have some requests in this directionreveals Didier Gangloff. We will have to take into account these new technologies. While waiting for operators to think about protecting themselves against the vagaries of the weather or buying autonomous machines.

Insurance without risks: four points to keep in mind when negotiating your policy

1 – Off-road liability

Civil liability insurance for vehicles in circulation (RC circulation) is not only compulsory for registered machines, but for all self-propelled and self-propelled equipment in motion, whether on the road or on a construction site. However, if a machine is also considered a tool, the damage it could cause when stopped would be covered by civil liability insurance for tools. “Be careful, the border is thin, warns Jean-Paul Chauffour, development manager for construction and agricultural equipment at the brokerage firm Théorème. The declaration must be very clear on this notion of movement. »

2 – Demand tailor-made

Public works activities are varied. It is not uncommon for a machine to find itself in a situation at the limits of the frameworks defined by its policy. To avoid these gray areas, it is better to avoid standard contracts published by insurers. “Companies don’t always master all the particularities of the life of a piece of equipment,” remarks Jean-Paul Chauffour. We draft the contracts ourselves and we negotiate clauses specific to the company’s needs. »

3 – Price and value

This is undoubtedly the essential idea to remember, the declared new value determines the amounts paid if the equipment is found out of service. However, the purchase price of a machine should not be confused with a list price. “With rental companies, the purchase price can even be considered a professional secret,” observes Jean-Paul Chauffour. In the case of construction machinery, it is necessary to refer not to the acquisition value, but to a new replacement value on the day of the loss. The latter is justified by a pro forma invoice drawn up by the manufacturer. »

4 – Keeping is not stealing

Another subtlety of the law, if a third party rents or imprints a machine without returning it, he is not committing a theft, but a misappropriation of property, “because you gave him the equipment”, specifies Jean-Paul Chauffour. To cover this type of act, your insurance must include a clause on embezzlement.

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