Risk Management: Your Risk Profile
Chances are that you outsource most risk management functions to an insurance company representative or agent. However, to protect your business against the risks you face at a price you can afford, you need to control the presentation of your loss and coverage information to insurers. In other words, it makes sense to provide what an underwriter needs to write your business: a "risk profile" that shows a historic record of your exposures, loss data, and insurance contracts.
Your profile should include these items:
- A history of the firm that's positive and realistic. The more effectively you've adapted to the recession, the better your chances of getting a competitive rate.
- Resumes of key management— to show that you and your team know your business.
- Marketing materials and Web page(s).
- A D&B Report. Without one, you might get a lower grading. If you've had financial problems, some insurance companies might be willing to write your business, as long as you provide this information upfront.
- Audited financial statements, if applicable.
- Estimated values, including sales, workers compensation payroll, automobile fleet, property and equipment.
- Sales and payrolls for the past five years.
- Insurance loss runs and claim runs during the past five years for all policies, valued within 90 days of renewal.
- An outline of your workplace safety plan(s).
- Fleet maintenance schedules, if applicable.
- Your workers compensation experience modification factor.
Be sure to review all data on your company in the files of your insurance company and add it to your database.
Maintaining a comprehensive, accurate, and updated risk profile, and staying on top of how you present this information, will play a key role in securing a comprehensive and cost-effective insurance program.
Our risk management specialists stand ready to offer their advice at any time.