Sub Specialty Contractor

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

Hi Michael,

Our insurance year is also July to July.  I inherited it that was in the late 1980's and have not seen any benefit of changing it.

Our fiscal year is October to September and personally I prefer to NOT have the insurance renewals and audits happening during fiscal year end or calendar year end.

As for forecasting and budgeting, ask your insurance agent to give you an idea about where premiums are going (they know the market),have them review your loss runs and give an estimate how those will affect the renewal year. 

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

I think Lucretia's point is where most will fall: there is enough to do at year end without adding in the renewal. If you are shopping hard every year it can be quite time consuming putting everything together for the brokers. Ours renews 1/15 and we have a 12/31 year end, so December is a bit overloaded and stressful. We don't have a traditional 'busy' season so that does not come into play for us. Plus, on the work comp side we are reporting/paying based on actuals every month so the manipulation of the estimates becomes less important. Our audit results are consistent, we typically get back what they required for a deposit.

I will say that having the renewal right at year end does pretty much eliminate any accounting for prepaids and other insurance accruals for tax purposes. So, one less thing....

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael

Hello,

i wanted to start a discussion around insurance policy periods (WC / General/ Umbrella/ Auto), is there an industry norm? and if so why? 

The last 2 construction companies I've worked for have had their policy periods from July - July. 

In most cases I see this as an issue when building out annual forecasts/budgeting and it also makes the accounting for the activity a bit trickier. Also, when it is time for insurance renewals, estimates now carry 2 busy seasons rather than one in a normal fiscal year (Jan - Dec). Also come audit time, results are typically delayed by 3-6 months.

All in all, I would love to start a discussion around the pros and cons of having a July - July policy period vs matching fiscal year (Jan - Dec)

Thank you in advance.

Michael