Did you know the premium and deductibles you pay for insurance are likely the smallest part of the ‘true cost’ of your risk control program?
Consider this: When a claim event occurs, your organization absorbs substantial additional costs, such as lost productivity, hiring and retraining expenses, and any brand or reputational damage you may have incurred due to the incident.
Who pays for that? Your insurance policy does not cover those expenses. They are in addition to any out-of-pocket costs paid to obtain/maintain the insurance itself.
To account for them (and recapture some of the financial leakage), you have to be able to quantify them on your financial statement.
Here’s what you need to know:r:
- The actual cost impact of claims. What did your organization pay beyond the price of your insurance placement and deductibles?
- The effect claims had on your profits, growth, and operational expenses. How did these costs affect your business model and goals?
- Is your broker implementing a plan to mitigate these unwanted expenses? Do we have a plan in place to lower the frequency of our claims?
If your broker cannot provide you with those critical pieces of information, you may have to look elsewhere to get the data you need to improve your results.
If you’d like us to help, we’d be glad to. As Analytic Brokers, we’re uniquely qualified to offer a deep-dive cost assessment of your risk control program.
We’ll provide a no-obligation review of your existing cost structure and offer solutions to recapture and mitigate claim-related capital. Contact us today!