Tackling Hidden Risk Control Expense

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!

Reducing Unwanted Expenses in 2023 - Three Critical Questions

Did you know most businesses have a large sum of unbudgeted expenses that erode their profitability? These expenses are directly tied to risk management programs and have little to do with premiums, coverages, or alternate funding mechanisms.

When you have an incident, there are costs that your organization incurs beyond the out-of-pocket expenses of the claim.

For example, lost productivity, brand damage, rehiring, and training. Insurance carriers don’t cover these critical issues. You do. From your bottom line.

To reduce Financial Leakage, you need to measure the true costs of your risk management program beyond your premiums and coverages.

To start, here are Three Critical Questions to ask your broker:

  • What is the amount of Financial Leakage we’ve absorbed this year?
  • What impacts should we expect inside our cost structure next year?
  • What risk management projects will you implement to reduce these costs?

If you cannot get answers to these questions from your broker, consider looking for an organization with better capabilities and who understands business.

As a Certified Analytic Broker, we are uniquely qualified to measure your risk management program and provide you with a plan to reduce your costs and Financial Leakage.

Best of all, our consultation is complimentary with no obligations.

We’re here to help you develop a measurable plan to help you control unwanted costs to improve your business performance in 2023 and beyond.

Contact us today for a no-obligation assessment of your program. We’ll be happy to provide you with some insight into your business and how we can deliver quantifiable results.

Curb Hidden Costs to Improve Your Business

It’s time for 2023 yearly planning and budgeting. One of those line items you take into account every year is your risk management program.

But, this time, don’t simply focus on your insurance prices and premiums!

There are more significant costs to address in your forecasts.

What are they?

Beyond what you pay out of pocket (premiums and deductibles), you’ll find the unbudgeted expenses of claims. This Financial Leakage manifests on your bottom line in business disruption, reputational damage, and the operational and strategic impacts you incur when you experience a sizable claim event.

By the way…

Your insurance carrier does NOT pay these unfunded expenses. Your organization absorbs them, and they erode your profits (or surplus goals for nonprofits).

Let’s get ahead of next year by assessing the true cost of your risk management program today. Here’s what you can do right now:

  1. Get a current and accurate evaluation of your risk management cost structure. This includes the finite, quantifiable, and controllable expenses that prevent you from maximizing your profit potential.
  2. Assess the impact of this Financial Leakage on your business performance. With the proper analytic tools, our firm can assess your Financial Leakage AND create a plan that helps reduce its impact.
  3. Develop a plan to reduce and mitigate unfunded claims expenses. It’s possible to recapture a significant portion of these costs with a solid risk reduction and mitigation strategy. As specialists, we’re here to help!

So, if you’re in the process of planning for a strong 2023, let’s chat right away. Our firm can provide you with a no-obligation Financial Leakage Report™ on your existing cost structure, so you can better and more accurately plan for the coming year.

Contact us today for a no-obligation assessment of your program. We’ll be happy to provide you with some insight into your business and how we can deliver quantifiable results.

Reduce Unwanted Expenses in 2023

To keep ahead of rising costs, you must track your financial performance very closely. Did you know there is likely additional capital inside your risk management cost structure that you can recapture and use to improve your business results?

It's true!

By reducing and mitigating the impact of claims events, you are curbing the unbudgeted costs that your business incurs. Although the insurance carrier covers some costs of a claim, it does not cover everything.

For example, when a claim causes business disruption, or the need to hire and retrain an employee, or inflicts brand and reputational damage-- your business absorbs these additional expenses. Not the insurance provider.

Here are the facts:

  • Financial Leakage exists inside every risk management program. If you have claims, they are very likely costing you additional money.
  • Financial Leakage is absorbed by your budget, margins, or EBITDA. These expenses ARE NOT separate line items; they erode your business performance, eat into your profits, and stretch your budget.
  • Financial Leakage cannot be eliminated. Some claims will occur, but you need to work a strategy to mitigate the impact of those events.

Here’s the good news:

Your Financial Leakage is controllable!

That’s right. You may not be able to completely remove these expenses, but an astute broker with the right tools and resources can measure these costs and put a service plan in action to address the root causes to lower them.

If you’d like to dig deeper, our firm is uniquely qualified to assess, measure, and tackle these unwanted expenses on your behalf.

Our client services go well beyond the traditional placements of insurance programs. We partner with our clients, learn their business models, and help them improve their results by curbing unwanted Financial Leakage.

Curious to see what we can do for your business?

No problem! We’re happy to provide you with a no-risk assessment of your existing cost structure. And, we’ll discuss specific ways you can recapture these unwanted expenses and improve your business performance!

Contact us today for a no-obligation assessment of your program. We’ll be happy to provide you with some insight into your business and how we can deliver quantifiable results.

Changing Your Insurance Broker: The Bottom Line

Have you outgrown your existing risk financing and insurance services provider? It can be challenging to tell when you should consider a change.

Here’s the truth: an effective broker does far more than place your risk financing programs. They align with your business goals and work to help you achieve them.

Virtually all brokers have access to the same insurance carriers, captive managers, or specialty programs. The difference in the price of insurance programs is a small variation between most brokerages. This means your greatest financial performance opportunities do not come from competitive pricing alone.

To get the BIGGEST benefit, you need a risk management partner that knows your business and has resources available to help improve your bottom line.

So, how do you know if it’s time to make a change?

First, ask your existing broker some key questions:

  • What’s our total “controllable expenses” leaking from our financial statement due to the costs of claims? Not hard costs, like deductibles, but the costs of business interruptions, hiring and training, equipment replacement, etc. when a claim occurs and impacts our day-to-day business operations.
  • What is the impact of these unbudgeted expenses on our profits and business performance? How much is this risk program really costing us?
  • What are your plans to help us "recapture" this Financial Leakage? And, can you measure your results for us when it’s time for review?

Suppose your existing broker is unable to answer these questions or provide you with the information you need to make the BEST business decisions possible. In that case, you are likely being underserved and should consider other options.

As an Analytic Brokerage, we are uniquely qualified with the tools and insight to help you get the most out of your risk management program. Moreover, we quantify our work and show you exactly how our specialty services move your numbers.

Not sure where to start in this process?

Contact us today for a no-obligation assessment of your program. We’ll be happy to provide you with some insight into your business and how we can deliver quantifiable results.

Lowering Costs: Pick the RIGHT Risk Management Partner

Now more than ever, it’s crucial that you utilize a risk management program that is laser-focused on improving your financial goals and serving your key business objectives.

Beyond the price of insurance, there are a multitude of hidden expenses that erode your bottom line. If left unaddressed, these unbudgeted claim costs and events are NOT covered by the insurance carrier.

These runaway costs and claims:

  • Reduce Margins, EBITDA, and Operating Capital
  • Create Business Disruption
  • Inflict Brand and Reputational Damage
  • Impact Strategic Goals and Productivity

To identify, measure, and recapture this critical Financial Leakage, you need to work with a knowledgeable broker who can impact your cost structure BEYOND the price of the premiums or alternative financing models.

Not sure where to start in this process?

Most insurance brokers do not have the tools, insight, or analytics to assess your TRUE cost structure properly. They are unsure of how their work impacts your financial position. In this economy, you deserve better insight.

Our organization is uniquely qualified to provide you with another way forward. We’re focused on your business and how the moving parts of your risk management program can either help or hinder your financial position and goals.

Contact us today for a no-obligation consultation and assessment of your risk management program. As Certified Analytic Brokers, we’ll develop a custom-tailored plan to recapture these expenses and measure the results.

Rising Costs and How to Counter Them

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:

  1. Analyze your risk management program, claims amounts, and cost structure. You need to know where the problem areas are.
  2. Determine how your Financial Leakage is eroding your profits, margins, EBITDA, and budget surplus (non-profits), so you can budget accurately.
  3. 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.

An Opportunity to Counter Inflation

Like most businesses, you are dealing with price increases beyond your control. Now more than ever, organizations are looking to reduce their expenditures to lessen the impact of inflation.

One critical component to cost structure (that businesses often overlook) is the amount of CONTROLLABLE wasted capital inside your risk management program.

These potential savings go far beyond the price of insurance.

Here’s what you can do:

Curb the rising costs of goods and services by reducing the severity and frequency of claims inside your organization. How? By implementing the proper resources and programs to improve your risk management practice.

Free up more capital to counter the impact of inflation. When you are not absorbing lost productivity, the cost of replacing equipment, or the impact of business disruption when claims occur, you have more capital and opportunities to grow your business.

To do this, however, you need to work with a broker that understands the importance of (and can measure) these financial metrics to provide you with cost savings.

As an Analytic Brokerage, we are uniquely qualified to help you identify, measure, and recapture these unwanted expenses, so you can better weather a volatile market.

Contact us today for a complimentary assessment. We’ll provide you with an understanding of where cost reduction can occur in your business and a strategic plan to address it. .

Uncovering the Hidden Costs of Risk Management

The price of risk management services does not equal the overall cost of your buying decision. A price-driven policy won't address the additional hidden expenses from turnover, business distribution, equipment replacement, reputational damage, etc., that accrue from claims and often add to your overall cost structure.

When making a significant buying decision for your business, you should consider all the additional costs associated with the purchase.

Your insurance program is no different.

While your existing broker may find you the cheapest policy with a competitive carrier, they're often not considering the significant additional costs eroding your bottom line when claims happen.

To mitigate these expenses, you must go deeper than the price of the insurance policy. You need a broker that can identify the financial leakage points in your business model AND put together a plan to mitigate them. Further, you need a broker that can track these results.

That’s where we can help.

As an Analytic Broker, we're uniquely qualified to address these bottom-line issues with proper risk control and specialized resources. Moreover, we have the capabilities to measure and monitor our performance to provide you with a clear ROI.

Contact us today for a complimentary and comprehensive examination of your program.There’s no obligation for our assessment, and you may be surprised to learn that you’re leaving a lot of money on the table without a strategic plan to address the problems.

Tax Season Checklist: Tackle Financial Leakage!

It’s that time of year again: Tax Season! Over the next few weeks, many businesses will be reminded of the "lost opportunities" derived from their operational expenses.

No matter your EBITDA or profit margin, the I.R.S. shrinks your capital. This cash depletion can often take months to recover.

So, what is the best way to recoup this annual hit to your bottom line?

. . . don't let it leak away in the first place!

Many businesses are not aware of the hidden expenses that eat away at their margins year-round. These unbudgeted expenses hide in your risk management programs and are not covered by the insurance companies.

They are attached to claims events, not premium or deductible costs.

When a claim occurs, productivity disruptions, equipment replacements, reputational damage, and other culprits erode your financial statement.

You may be asking yourself, "OK, how do I stop it?"

Great question! We're here to help.

As Analytic Brokers, we're uniquely qualified to help you replace your tax bill expenditure by finding and addressing the Financial Leakage (mentioned above) that currently exists inside your risk control and risk financing program.

Contact us today and we’ll provide you with a no-risk assessment of your current cost leakage and a detailed plan of action to recapture these critical expenses.

Don't let another tax year come and go without protecting your hard-earned capital!

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