Many mid-size organizations depend on just an insurance broker for their entire Risk Protection Program. Today’s world is marked by increasing business complexity and insurance coverage restrictions. Should we be surprised that execs still get blindsided by claims and lawsuits that aren’t covered by their insurance?
Typically, larger firms have in-house risk managers for broad, strategic risk management – like preventing losses, improving safety, and testing contingency plans for survival. Smaller firms get the same benefits by hiring an independent risk manager.
Your broker unquestionably brings essential insurance-related services to the table. The reality today is this is not enough: businesses cannot get complete protection from just one source.
Some “black holes” you can avoid –
- A contractor needed a liability coverage extension to get a new project. The broker said this would be “hard,” require loads of additional documentation, and incur a substantial additional premium. The risk manager was able to assist the broker to get the exact extension needed with two easy questions and the cost was only $150.
- A high-tech startup needed a Health insurance plan to recruit new employees. The broker said the client was too small, it would be expensive, and options would be limited. The risk manager was able to move the conversation to another level, get “translations” of jargon and simplify the options. The outcome was a great and affordable plan and good service options.
Differences to consider between a risk manager and most brokers ~
- Would you be more confident in a specialist who helps you identify your key business risks and how to prevent losses and lawsuits, or a broker who basically just sells insurance?
- Would you be happier with a specialist who helps with strategic enhancements to your coverage to help you get more business and revenue, or a broker who helps buy insurance to handle your obvious risks?
- Would you get more value from a specialist who helps you enhance your Risk Profile and implement prevention plans for better coverage at lower rates, or a broker whose risk management suggestions will usually be linked to additional insurance purchases?
- Would you prefer a specialist who works only for you with fees agreed in advance and no conflicts of interest, or a broker who gets paid by commission on how much insurance you buy?
Don’t get trapped: Having just one advisor in a key protection area like risk management makes you vulnerable to just one set of ideas or point of view. In today’s litigious and claim-happy world, you need dedicated, objective professionals on your team.