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Incentivizing risk management

October 5, 2011
by Nick Zubko, Associate Editor
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How are insurance companies rewarding their customers for having good practices in place?

It's a simple principle-if bad behavior is punished, then good behavior should be rewarded. When it comes to insurance, behavioral healthcare providers can demonstrate “good behavior” by implementing practices and policies that avoid most of the unwanted risk posed to their patients, physicians, staff, and the facility as a whole.

With that idea in mind, we asked two insurance providers, NSM Insurance, and Irwin Siegel Agency, Inc., to explain how their “well-performing” customers are rewarded for their efforts.

NSM Insurance

As a “specialty program”, NSM Insurance Group's Addiction Treatment Providers Insurance Program differentiates itself by offering unique and comprehensive coverage for a broad range of behavioral healthcare facilities. Specialty commercial programs are not “commodity” insurance products such as personal auto, homeowners', or workers' compensation insurance.

According to NSM, not all insurance companies understand the unique exposures and claims facing the behavioral healthcare industry, and design products to properly insure them. That said, the company recognizes and rewards insured customers who practice good risk management and “perform well” with respect to their claim experience.

Where personal auto and homeowner's offer multi-policy discounts, the company also offers what are referred to as “package credits” for customers who place multiple lines of coverage in our program. Many personal lines insurers offer discounts for college degrees and other educational achievements and memberships.

NSM Insurance also offers premium credits for behavioral health industry accreditations and membership in educational associations. Most homeowners' policies include discounts for home alarm systems and other protective systems. The company also offer discounts for sprinkler systems, burglar alarms, and similar protective devices and systems.

One of the most common and significant premium discounts offered by personal auto insurers and worker's compensation insurers is a good driving or good claim experience discount. NSM provides significant premium discounts for our insured customers with good claims experience.

The company insures thousands of behavioral healthcare providers across the country, and is always looking for ways to reward its best performing customers who embrace a culture of risk management and safety-while recognizing that the best reward we offer is a stable market of comprehensive coverage that meets their needs and protects their assets, their reputations, and their treatment clients.

Irwin Siegel Agency, Inc.

Irwin Siegel Agency, Inc., says its mission is “supporting those who support others.” A provider of insurance programs and risk management services to the social service field for over 40 years, the firm has built an extensive network through partnerships with professionals in the behavioral healthcare field.

Through these relationships and involvement in the field, Irwin Siegel has developed an insurance program tailored to meet the specific needs of these organizations.

In 2011, Irwin Siegel began an annual scholarship award for the Certified Psychiatric Rehabilitation Practitioner (CPRP) credential. Provided through the United States Psychiatric Rehabilitation Association (USPRA), the CPRP provides an advanced knowledge base, ultimately improving the quality of care to those served. The scholarship is awarded in May, during Mental Health Month.

Beginning in 2008, the firm partnered with Essential Learning, offering organizations potential savings of up to 15 percent on their training products. As a leader of on-line training services in the behavioral healthcare field, Essential Learning's product serves as an excellent risk management tool.

Through this partnership, Irwin Siegel has the ability to provide credits to the Professional Liability insurance coverage of organizations who have implemented the full learning management system.

In addition to its consultant network and partner services, Irwin Siegel takes an “enterprise risk management” approach to working with insured clients. Recently, the firm's team of dedicated professionals saved an organization thousands of dollars by coordinating loss control and training resources specific to their operations.