How to save 5 percent on your annual premium

This renewal season, VML Insurance Programs (VMLIP) awarded a five percent premium credit to 161 members who had scored 100 percent on the Risk Management Guidelines (RMG) Assessment. All totaled, this amounted to more than $1.7 million in premium savings.

Was your entity among them?

If not, will you be next year?

Members with a combined premium of $15,000 or more are asked to complete the RMG Assessment each year in order to gauge their risk management efforts against industry best practices. The guidelines also provide tips and resources that members can use to improve their risk management and increase their score.

Members who achieve 100% score on their RMG Assessment are eligible to receive a 5 percent discount on their premium at renewal, which can lead to significant savings. 

For the 2016 – 2017 fund-year, only a few members have completed the assessment.

“We are pleased that the Southeastern Public Service Authority, Pepper’s Ferry Wastewater Authority, and the Town of South Boston are among the first members to achieve 100 percent on the assessment this year,” said VML Insurance Programs (VMLIP) Director of Safety Services Beth Rosenthal.

As in years before, this year’s assessment has undergone a revision designed to keep current with insurance and risk management best practices. If you are a regular participant in this process, you will recall that several questions reset annually on July 1. Members must reaffirm their completion in order to improve their overall score.

“The questions that reset each year typically relate to annual updates or training requirements that need regular attention,” said Rosenthal. “By updating this document, members are given another reminder to keep up with those requirements.”

The best way to reach your risk management goals is to review this document regularly to identify components that may need a bit more time to complete.

“It’s best not to wait until renewal to complete the assessment,” said Rosenthal. “Many questions require ongoing activity throughout the year in order to meet the requirement.”

Below is a summary of some of the significant changes in this year’s assessment.“

Please note that the element relating to online training for Tier III members is being suspended and reevaluated, and is currently not required. Members should, however, incorporate a means to meet this goal as it may be reinstated at the next renewal.

VMLIP offers a “How to Achieve 100 Percent On Your RMG Assessment” document to assist members wishing to achieve this goal. Questions asked reflect the entity’s risk management efforts such as oversight, claims management, fleet safety, self-inspections, workshop and training attendance, safety awareness, and more.

“We provide links to numerous safety resources and training programs to help our members develop their risk management programs – and providing the risk management credit for enacting best practices and utilizing best practices is one way to strengthen the risk management culture among members,” said Rosenthal.

Strengthened risk management programs are a win-win for localities – resulting in safer communities, fewer injuries and, for those receiving the credit, lower insurance premiums.

Localities/entities receiving the credit for the 2016 – 2017 fund-year are listed here. For more information on the RMG assessment, visit the safety page on the VMLIP website.