With rising costs across the board, it’s more important than ever to find ways to reduce expenses eroding your financial statement. One place to find these costs is inside your risk management program. These frictional costs can be identified and recaptured over time.
But, how do you find them?
For years, brokers have advised you that the best way to cut risk management expenditures is through policy changes, deductible options, or new funding mechanisms.
These are common ways to shave dollars from the price of your program, but they do not address the more significant cause of financial leakage inside your margins: the frequency and severity of claims.
When a claim occurs, a frictional, unbudgeted expenses ripple through your organization that are absorbed by your balance sheet.
These costs are unbudgeted, erode your margins, and are not covered by the insurance company. When you reduce your claims, the costs of business disruption, equipment replacement, brand damage, and many other impacts also drop.
Here’s what you should do to counter rising costs:
- Analyze your risk management program, claims amounts, and cost structure. You need to know where the problem areas are.
- Determine how your Financial Leakage is eroding your profits, margins, EBITDA, and budget surplus (non-profits), so you can budget accurately.
- Work with a broker who understands how to recapture these costs using specialty resources designed to improve your business performance.
Not sure where to get started? No problem!
As an Analytic Broker, we’re uniquely qualified to help you achieve these goals. We have the tools, expertise, and experience to help you drive down these costs.
Contact us today, and we’ll analyze your existing cost profile, measure the impact of these expenses on your financial statement, and build a strategy to help you reduce them.<
Don’t wait! Your capital is more important than ever in this inflationary market.