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...ction is properly structured. In a small entity, he may do it himself. In a la...o handle bid, performance, and permit bonds. Professional Networking. As ...

...y loss exposures. Medium-sized and smaller companies usually buy Commercial i...ments are generally met by providing bonds or letters of credit. In some case...

... a regular program to charge off doubtful accounts. Be aggressive with collections; buyers pay more for agencies with clean balance sheets. Use finance agreements whenever possible. Change expiration dates on accounts that experience cash-flow problems at particular times of the year. Pay attention to the small things; you've already taken care of the big ones. RULE 6. Make sure your producers have employment agreements. It's not as easy to get the terms you want if your producers have no agreements. Have your lawyer make sure the agreements are enforceable if ... your balance sheet. Buyers- public brokers and private purchases alike-expect and usually demand approximately 60 days' worth of expenses in Tangible Net Worth (TNW) as part of the sale terms. If you don't have 60 days' worth, start leaving profits in the business. Calculate it this way: Assets minus Intangibles (goodwill, expirations, and covenants) minus Liabilities equals Tangible Net Worth. Remember to add in off-balance-sheet liabilities, too! These include deferred compensation or covenant payments to former owners or acquisitions that are not carried ... get to retiring, the less willing you will be to accept your payments from agency cash flow alone. A second consideration is the skills that will be lost when you or other key owners leave. If sales skills are being lost and the successor's skills are primarily administrative, you have another reason to consider an external sale. Your future payments will depend largely on the continued sales power of the agency, especially if there is an earn-out element in your payment arrangements. Only agencies with strong sales cultures will be successful in the ...

... of the year. Pay attention to the small things; you've already taken care of ... in until you have agreement on the business issues first. Buyers generally dr...

... risk manager, duties are often as follows: Chief Administrative Officer (CAO) . The CAO, whether a city manager, county executive, district manager, mayor, governor, or whoever, is responsibile for seeing that the function is properly structured. In a small entity, he may do it himself. In a larger entity, he'll delegate the function to one of the following: Chief Financial Officer. The CFO, treasurer, director of finance, controller, or the like will most commonly have this function because risk ... , tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All Back Managing Risk: A Guide For Your Business Client, Part 1 Of 4 4/30/2013 10:40:04 PM by CompleteMarkets Editor This content has not been rated yet. MANAGING RISK: A GUIDE FOR YOUR BUSINESS CLIENT Part 1 of 4 &# 160 WHY RISK MANAGEMENT? Every ... agents and brokers have more complete knowledge. However, risk-management concepts and procedures help achieve control of the bottom line: total risk-management costs. Total risk-management costs' refers to the sum of costs for: Losses incurred, direct and indirect Loss prevention Claims adjusting Insurance premiums Administration Losses incurred may be controlled through various loss-control measures. Also, the amount of liability claims may be affected-strongly-by prompt and fair payment of legitimate claims combined with vigorous resistance to questionable claims. If claims are not handled in-house (and few public entities handle them) ...

... when the loss is certain, as with small Workers Compensation losses of large ...raight deductible. Waiting period. Business interruption policies are sometim...

... frequency and low severity "High frequency and low severity" means that the number of losses should be at least several dozen per year, of which most are less than $50,000. As a case in point, a large hotel would probably experience many small Workers Compensation claims but relatively few, if any, large claims. A bank can also expect to have numerous low severity Comp claims. Alternative risk financing usually involves loss severity — the exposure to large losses — by purchasing excess insurance or reinsurance. INSURANCE LINES ... , combined with insurance, to finance a company's property and liability losses; a formal program for managing and paying for an organization's losses, usually for a defined period. COMPANY SIZE The first question owners and managers of medium-sized firms ask is "How large must my business be to use alternative risk financing?" Size isn't very important. The main criterion is losses. As a rule of thumb, alternative risk financing requires approximately $500,000 in annual incurred losses in one line of insurance — for example, Auto, ... #160 Guaranteed cost Retrospective rating Large deductible Self-insurance Captive insurance This chart summarizes the main features of these alternatives: Analysis of Key Risk Financing Alternatives Rating Scale 1-5: 1 = least favorable; 5 = most favorable Guaranteed Cost Retro/Rating Large-Deductible Self-Insurance Fronted Cost Non-Loss Administration 1 2 4 5 3 Maintenance 5 4 3 2 1 Organizational Control 1 2 3 5 5 Guaranteed cost insurance. Guaranteed cost remains an attractive option, particularly in a highly competitive insurance market. "Guaranteed cost" means that the insured pays a ...

...nning in the second year-all for a small tax paid on the first-year-end surren...dollar insurance is another way for businesses to give a key employee a large ...