Federated Insurance provides coverage for businesses across the country.
Its cliental includes members of the automotive industry, those in the contracting industry, and retailers.
Marketing Representative Andrew Renn talked about the mutual insurance company and the services it offers in our Community Conversations segment.
You can watch the interview and see the transcription below.
(Disclaimer: The information contained in the interview is intended to highlight current issues and provide general information only. It should not be considered legal or employment advice regarding your specific facts or circumstances. The illustrations herein are only a basis for discussion and examples of potential coverage options. This information may be subject to regulations and restrictions in your state and should not be considered legal advice. This information is accurate as of October, 2021 and is subject to change. Qualified counsel or other expert advice should be sought regarding questions specific to your circumstances. © 2021 Federated Mutual Insurance Company.)
ST Billingsley: Thank you for joining us today on Community Conversations with What’s Up Prince William. Today, we have Andrew Renn from Federated Insurance. Thank you very much for being with us today.
Andrew Renn: Hey, thanks for having me.
ST Billingsley: So I know that the main stage of your industry is the automotive field, obviously I know you from that, just from us having the automotive repair shops here in Woodbridge. Tell me about, basically, what you guys do for the automotive clients.
Andrew Renn: So Federated, the automotive industry is one of our core groups that we focus on and insure, helping those business owners with day-to-day needs.
ST Billingsley: So when you’re looking for coverage, just what kind of coverages would a normal auto shop need?
Andrew Renn: Well, garage keepers, first and foremost, that’s coverage for the customer vehicles that’s in your care. So when you’re working on them, test driving them, things like that, and then also possibly coverage for your technician’s work. If your technician makes a mistake or something like that, you need coverage for that.
ST Billingsley: So, now that’s interesting. So that’s one of the things you don’t really hear about in our industry is the coverage for what the technician may do. What is something that might be an example of that, or does it even have to do with the technology that’s in these vehicles now?
Andrew Renn: So it’s as simple as a technician maybe not screwing on an oil filter all the way, and the oil leaks out, and now the engine is seized. Or they might not screw the lug nuts back on all the way, or to the right torque specifications, and when the person’s driving down the road their wheel falls off. And it’s liabilities like that, and exposures like that, that we offer protection for.
ST Billingsley: Very good. So, now what about coverages you see at the shop that shop owners really may not be aware of, that they need to have. So whether it be umbrellas, or the amount of cars they have, or a fire, or anything like that?
Andrew Renn: So like you mentioned the umbrella, I think it’s smart for automotive shop owners, or any business owner, to have a commercial umbrella, that’ll sit over a certain portions of your policy to extend your coverage.
ST Billingsley: And for like shuttle vehicles, or those types of things, what kind of coverages should the shop owners be aware of, that they may need?
Andrew Renn: So they definitely need that automobile or that transit van on the policy, and also just make sure that their drivers have a clean driving record, and things like that, and that’s going to be counted very similar to a regular auto on the policy.
ST Billingsley: And you guys have a lot of online resources for those types of things, for drivers training. What kind of things do you have online that can actually help the shop owner for things like that?
Andrew Renn: Yeah so, safe driving initiative, so we have videos, brochures, pamphlets, all regarding safe driving and that sort of thing. And even on top of the safe driving, just a whole bunch, a slew of different risks for the automotive industry, or one of the other industries that we insure. We believe as an insurance company that we really need to help our clients manage their risks, so our risk management materials are so expansive in pretty much every sense of the term.
ST Billingsley: So with rules changing, such as marijuana, those types of things, where do we need to be with having to deal with that? Are there different coverages? Is it the same coverage? Is it still one of those, do we need to have a good drug policy?
Andrew Renn: I think it’s smart to have a drug policy, even if it’s just at the owner’s will or discretion to drug test the employees. I think that’s a smart practice to have. In terms of the marijuana, it’s all state-based. So every state is different, but as of right now, things are still rolling out with the ever-changing laws. The insurance is ever-changing and keeping up with that.
ST Billingsley: And you mentioned that you actually cover other industries, other than automotive.
Andrew Renn: Mm-hmm (affirmative).
ST Billingsley: What examples do you have?
Andrew Renn: So contractors, we’re pretty big in the contracting industry. Automotive service, but automotive dealers as well, your retailers, your wholesalers, those are just some. We usually focus on about 12 industries. And I know the contractors is one industry, but obviously there’s a slew of different contractors. But yeah, so we have about 12 core industries.
ST Billingsley: And so, just from you talking to business owners, from whatever industry, what’s maybe one or two things that you find that most business owners really don’t know about, or didn’t even have an idea that they needed to have covered?
Andrew Renn: Well, I would say that every business owner knows that they need insurance, and kind of hand-in-hand with insurance is risk management. I don’t think that some of them really understand the importance, or how much risk management is required and needed to limit your losses, and your workers’ compensation experience mod, and things like that. So we, like I stated earlier, do a very good job of offering a slew of different materials. And me as a marketing rep, I’m very active with my clients on setting up risk management meetings, and kind of picking a topic or two a year to really focus on with them. And I believe that they see the true value in that, even after one year of really focusing on managing risk, they see the benefits.
ST Billingsley: So let’s kind of pick on that one, just for a little bit.
Andrew Renn: Yeah.
ST Billingsley: So let’s just take the workman’s comp.
Andrew Renn: Yeah.
ST Billingsley: A lot of us, we’re busy running the business, we’re busy trying to make sure the doors open, and employees being sick, or whatever the case may be. What number, like a 1.0 or whatever it might be as a standard, and what does a better modification look like, that actually can translate into saved dollars?
Andrew Renn: So the goal is to have below a one for your workers’ comp mod. Now, granted, anywhere, I would say, between 85 and 90, that’s pretty good. And there, in that range, you can start to see financial benefits for having that low of a workers’ comp mod.
ST Billingsley: Gotcha. So year over year, that could actually save quite a bit for the business owner?
Andrew Renn: For sure.
ST Billingsley: Great.
Andrew Renn: And Federated also offers, back to the drug testing, we do offer a 5%, I guess a rebate, if you will, on the workers’ comp.
ST Billingsley: So if we have a drug testing program at the business, that could actually save us money, yearly, for that.
Andrew Renn: Exactly, yep.
ST Billingsley: Gotcha. So, it’s one of those, just as a small business owner my own self, it’s just one of these things we have to try to navigate all the time. So as things change, we’re trying to keep up. And so what other resources do you have, or do you guys do to just help kind of keep the business owner informed of what’s going on?
Andrew Renn: So we do have certain risk management seminars, or I guess, webcasts or videos that the business owners can log onto and watch. And I know we do have one for the whole marijuana laws changing, and things like that coming up soon.
ST Billingsley: Oh, great.
Andrew Renn: But usually, periodically we come out with something new that’s a very frequently asked question, or concern of business owners that we try to follow up on, and give you guys the resources and training to help handle that.
ST Billingsley: Great. Well we really do appreciate you being on our show today. And always actually appreciate all the help that you’ve been able to give us over the years.
Andrew Renn: Well, I appreciate it as well, thank you for the opportunity.
ST Billingsley: And thank you for joining us today on Community Conversations.
