Whether it's new equipment, property investments, or employee retention programs, you're looking for more ways to fund the initiatives that improve your business.
One place to find additional capital is your risk management program. Considerable unbudgeted expense develops when the event of a claim occurs. Such as lost productivity, the costs of rehiring, and reputational/brand damage (to name a few).
By the way, your insurance carrier does not cover these expenses. Your margins and budgetary surplus absorb them.
To understand the impact, here are three questions to ask:
- What is the actual cost of your incurred claims? To quantify this, you will need to measure the complete cost structure of your risk management program. You must examine each claim's direct and indirect costs to see the whole picture.
- How do those claims erode your existing margins and business performance? Remember, these expenses go deeper than simply the price of insurance. Every claim costs your business time, additional capital, and resources to resolve.
- How much of this financial leakage is recapturable? The answer to this question will require a plan and resources to mitigate the frequency and severity of your claims. It's all tied together. A strategy is the only way to recoup and measure these costs.
Speaking of a plan, we're here to help you sort through this complex process. As Certified Analytic Brokers, we're uniquely qualified to analyze your cost structure, pinpoint focus areas, and apply our specialty resources to create a quantifiable impact. We go beyond the placement of risk management to help you recapture wasted capital.