The insurance industry is a world of “risk profiles.” Insurance companies base their rates, and even their willingness to provide insurance, on how likely parties are to file a claim in the future – the risk profile of an organization. Limited visibility into an organization means higher-than-necessary rates for some and irregularly low rates for others.
Gold Shovel Standard is working to increase transparency in damage prevention through the standardization of metrics. Dramatic reductions in the frequency of line strikes will remain elusive unless all parties continuously improve and measurements underpin continuous improvement. Standardizing the measurement process is an overdue first step to drive performance improvement and increase public and workforce safety. To achieve this ambitious plan, Gold Shovel Standard is working with balanced teams of damage prevention experts to draft, refine and broadly deploy damage prevention metrics for all stakeholders.
Insurance is a highly competitive business, and better data increases competitiveness. Gold Shovel Standard is delivering the first industry standardized measurements based on empirical data. That data can be leveraged to improve the accuracy of an organization’s risk profile.
One of the primary objectives of Gold Shovel Standard is to obtain commitment from more than 75% of insurance providers to consider GSS supported metrics on policies for excavators or locators by the end of 2025.
While it is impossible to know the exact formula any insurance carrier uses to calculate risk and determine premium rates, better control of rating factors can help organizations position themselves more advantageously with insurers.