Transcript Risk Management Strategies

Module 3
Building Relationships
with Industry Professionals
Important Professionals for your CDC
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Insurance Professional
Financial Professional
Legal Counsel
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Benefits of Building and Maintaining
Relationships with Professionals
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They know and understand your CDC and its
programs and projects.
Professionals have access to the latest
information and research.
Professionals can assist you in framing your
risk profile and provide important guidance.
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Insurers review these factors in
evaluating potential insureds
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Finances
Scope and nature of
operations
Affiliates, subsidiaries
Location of operations
Values at risk
Loss history (and mitigation
activities)
Employee demographics
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Risk management
expertise
Tenure in their field of
expertise
Relationships with others:
mortgagees, lenders, thirdparties
Cost to service account
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Working with an Insurance
Professional
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Is your CDC’s access to the insurance industry.
Assists your CDC in addressing the factors used by
the industry to evaluate potential insureds.
Helps your CDC to craft a risk management plan that
illustrates your CDC’s commitment to being a full
partner in managing risks and keeping down the cost
of insurance.
Facilitates a higher level of understanding in terms of
what factors affect the availability of insurance and
the premium.
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Insurance -Roles & Relationships
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Insured (policyholder) = Your CDC
Insurer (carrier)= The insurance company
Broker and/or Agent = Your insurance
professional
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Your CDC -What are you protecting?
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Tangible assets
Revenue Flow
Individual assets
Third Party Liabilities
Employee Health and Welfare
Organization Financial Stability
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Who else Needs Protection?
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Directors & officers
Affiliates, subsidiaries
Employees
Independent Contractors
Landlords/property managers
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Who are the Stakeholders?
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Customers/clients
Bank & lenders
Suppliers
Community
Utility providers
Service and maintenance
providers
Government Entities
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Evaluating Agents / Brokers
What’s the difference ?
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Agents – generally work exclusively
with one company
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Brokers – have access and relationships
with a variety of companies
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Evaluating Agents and Brokers
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Knowledge and advice from a professional
– Program design
– Pricing changes
– Audits
– Coverage modifications – good or bad, opportunities
– Contractual review
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Can help your CDC with
– Loss control / prevention
– Certificates
– Losses
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RED FLAGS
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Your insurance professional does not return your calls in a
timely manner.
You can’t get answers that make sense – lots of jargon, but
nothing that you really understand.
Is unwilling to present his/her marketing strategy for your CDC
to the insurance industry.
Is not interested in working with you to develop a risk
management plan and/or review your insurance portfolio.
Insists that the current insurance coverage is the best s/he can
find.
Is reluctant to disclose the commission percentage – or if the
brokers are salaried or on commission.
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If you need to find a new insurance
professional…
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Your local Chamber of Commerce’s webpage
might list members who are insurance
professionals.
Call your local LISC office for
recommendations.
Call other CDCs to see if they have
recommendations.
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What Does The Insurance Company
Have To Offer?
Money
 The funds that are paid to settle a claim are intended to put
the insured in the place he/she was prior to the claim.
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Services
– Insurance professionals can offer additional services
such as:
 Review of ergonomics
 Workplace safety evaluation and training
 Risk assessment
 Portfolio review
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Underwriting & Pricing
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How much information should you share when
asking for a competitive program?
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Best Practice
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Total premium for the account
How much spent on casualty, property
3-5 years historical claims data
All relative underwriting data
– Projected Revenue
– Payroll
– Number of employees
– Employee census information
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Other factors
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A risk management plan will demonstrate
your CDC’s commitment to risk management
and due diligence in its endeavors.
Your insurance professional can help you to
present a complete profile of your CDC that
conveys the organization’s competence and
continued commitment to solid business
practices.
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Work With Your Insurance Professional
To Save Money
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Consider how these alternatives could save $$:
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Carry a high property deductible
Buy “package” insurance for its discounts
Check for options not needed
Invest in protective devices
Maintain good records
Prevent losses – promote a safe workplace
Buy catastrophe (umbrella) liability insurance
Increase auto deductibles
Check driving records
Perform incident reports, routinely review them for trends
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(Travelers Insurance Center Travelers Property Casualty Corp – 2002)
Financial Professionals
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Auditor
Tax consultant
Payroll (outsource)
Banker
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Legal Counsel
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Provides essential advice and review of
documents, decisions and other situations
that could present problems for your CDC.
Helps your CDC remain in compliance with
laws and regulations.
Has access to current findings and legal
decisions.
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Summary
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Your CDC will benefit from establishing close
working partnerships with Insurance,
Financial and Legal professionals.
The knowledge and expertise gleaned from
these professionals will facilitate your CDC’s
access to the types of insurance coverage
that you need – because your CDC is a
Player!
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