Dear Valued Customer,

We should all know by now that the Service Station insurance marketplace has become very challenging  and in many cases very expensive. This is why claim prevention should be an important priority in your daily operations. Many of our service stations with only one or two claims on their records are seeing significant increase in premiums, with lesser coverage’s.
NOW is the time that you can be proactive in protecting your business in today’s insurance climate.
Preventing & Mitigating Slip & Falls with proper procedures & Cameras
•    Set up a documented procedure to regularly inspect your premises, multiple times a day, and immediately cleanup and/or fix any trip/slip and fall hazards. We might sound repetitive, but please note the following:
o    We have now just recently received a claim because of a customer tripping on a pot hole. If that pot hole was detected earlier and fixed, it would have prevented that claim and now the insured may be looking at considerable increases in premium come renewal time. What cost more, a couple hundred dollars to fix the pot hole or several more thousand dollars in increased premiums.
o    We are still getting inspection reports back from the insurance carriers that show large cracks and pot holes. AGAIN, it shouldn’t be the inspection report that points these hazards out to you. They should have been already repaired.
•    Video backup and documentation - When an incident occurs (whether or not it develops into a claim), please save the video, document who was working at the time and get a statement from them. As mentioned in prior newsletters, in CA the injured party has up to 2 years to report a bodily injury claim.

Maintaining a clean and well-organized premises is not only essential for customer satisfaction and employee morale but also plays a significant role in mitigating insurance risks. A cluttered or poorly maintained environment not only increases the likelihood of accidents and injuries but also raises concerns about compliance with health and safety regulations.
Insurers often conduct risk assessments of business premises as part of the underwriting process, taking into account factors such as cleanliness, maintenance practices, and adherence to safety protocols. Businesses that demonstrate a commitment to cleanliness and proactive maintenance not only reduce their exposure to liability claims but also present a lower risk profile to insurers, potentially leading to lower premiums and more favorable coverage terms.

Vehicle damage to premises:
•    Whenever a vehicle does damage to your property, get as much info on the vehicle. This would include car info, driver info and insurance info. If there’s a video, make a backup immediately. This way we will make every attempt to get their insurance company to cover the loss.

As businesses navigate the complex landscape of commercial insurance in California, proactive risk management strategies are essential for protecting assets, minimizing disruptions, and ensuring long-term viability. By leveraging tools such as surveillance cameras and prioritizing cleanliness and maintenance, insured businesses can mitigate risks, streamline the claims process, and ultimately enhance their bottom line.

This turbulent insurance environment will continue to worsen for at least 1 – 2 years.

Dear valued customer,

As most of you have heard by now, Nationwide Insurance Company is “Non-renewing” all gas station &  convenience stores in the State of California.

With Nationwide leaving this market, we are all becoming painfully aware that  Liability/Property insurance is becoming more difficult and expensive to obtain in California. Some of our customers, with claims on their record, are seeing anywhere from 25% – 200% increase in insurance premiums. In addition to this, all Carriers have also considerably expanded their  “Brush Area Maps” giving us even a greater challenge.

There are now only a hand full of companies that will insure service stations (especially 24 hour operations) and they are all becoming increasing difficult to work with.

Rest assured, that since RKM insures over 1,000 service stations, we are still one of the few agencies that have access to these companies.

It’s more important today than ever to take extra precautions on preventing claims and documenting potential incidents that may lead to a lawsuits.

A couple important steps we recommend:

•    Keep video tapes of all alleged slip/falls and/or incidents. We have  now had a couple claims were the service station had a very comprehensive camera system and kept the video tape of a bogus slip/fall. With that, the insurance company got out of paying anything. Without those videos, the insurance company would most likely had paid something, which would affect our insured’s record and premiums. Bogus Slip/fall claims are now settling out between $25K - $100K. We strongly suggest you invest in a comprehensive camera system and keep any video of allege slip/fall incident, on a flash drive, for at least 2 year.

•    Do regular daily facility inspections, a couple times a day,  to immediately clean up any slip/fall hazards. These are the most common claims for service stations and sometimes a little extra maintenance goes a long way.

•    On property damage claims, such as a vehicle striking the pumps, canopy and/or building, train your employees to get as much information on the vehicle, driver and their insurance company. We at RKM will always try and help you collect from them before it goes on your record.

We don’t want you to shoot the messenger (us) if your premiums skyrockets because of claims.

Thank you for your continuing support and if you have any questions regarding this newsletter or other, please contact your agent

In the 35 years that we have been specializing in insuring service stations, every so often we run into
a period where claims activity significantly increases.

THIS IS ONE OF THOSE TIMES.

WORKERS COMPENSATION:

Within the last month, we have had two cashiers shot and killed at service stations we insure. In both of these
very unfortunate situations, they were family men with children.   Both very tragic and devastating losses.

While many of these types of claims are sadly unavoidable, it is crucial to do your part and have the proper
protection in place, such as utilizing the cash drawers for the night shift, teach your employees to always be aware of their surroundings, never confront or follow a thief,  call the police, panic button , etc

This will help provide added safety to your employees, as well as keep your Workers Compensation cost down.

In addition, when you have these serious workers compensation claims involving a death, or hospitalization,
you MUST inform OSHA within 24 hours of that incident.  If you fail to do so, you can be subject to hefty fines. We recommend for you to visit “Calosh.org “ and
get familiar with the Laws, Penalty’s and Fines . Plus they have very useful articles and examples.

LIABILITY (SLIP/FALLS):

Unfortunately we are currently seeing a rise in the slip/fall claims and of course the claim payouts have significantly increased.  
In most cases these type of claims are difficult for the insurance company to defend without adequate evidence, pictures, witnesses, video’s, etc.

Again, many of these claims are also unavoidable, so here are some important suggestions to highly consider;

•    Document regular facility inspections (through-out the day) to immediately clean up any slip/fall hazards
such as oil/gasoline spills that may have been left by a previous customer car.
•    Right away take pictures of where the customer alleges they fell
•    Keep the video of the incident. In the State of California, an individual has up to 2 years to file a law suit for bodily injury. Therefore, keep a copy of that video incident in your files for at least the 2 years.
•    Immediately patch up any pot holes and large cracks to prevent claims.

Thank you for your continuing business