5 reasons why I fired my Insurance broker – Poll Results are in!

1.       Service  issues......Timeliness and attention to detail are key!

2.       Didn’t understand my business and wasn’t pro-active in providing guidance.......I have to wear many hats; Need  a broker who can see whats down the road for my company.

3.       Didn’t comprehend my priorities.......Cost containment; Asset porotection; Contractual obligations!

4.       Other brokers asked and provided solutions  to my problems.......Under my priorities and in terms understand, show me how your products or services can help me!

5.       I felt I wasn’t valued enough – that I was a small fish........It would be nice to get a call more then once a year from my broker.

5 Keys to reducing Workers Comp Premium Costs

1.       Loss forecasting

Most insureds don't understand that they (with their broker) can control the renewal negotiation process. Loss forecasting - if to the advantage of the insured - can force a carrier to reassess his loss cost factors, loss pick and ultimately premium. In short, if I can show the carrier that my clients claims are not trending as badly as first thought, I can drive down premium.

2.       Experience Mod reviews

A no brainer, annual Experience modification reviews are successful 60% of the time in providing an adjustment and thus return premiums.

3.       Classification reviews

Are your employees classified correctly. Especially in the manufacturing industry, mis-classification can be the difference in tens of thousands of premium. Why should a clerical employee who happens to have to walk across the shop floor to get to her bosses office be classified as a shop floor employee?

4.       Quarterly Claims reviews

Your broker should be conducting quarterly or bi-annual claims reviews to analyze reserves, lag time, reporting prodedure, back to work process and potential fraud.

5.       Marketing

Many companies believe that they are 'stuck' with the State Funds due to their risk profile or because of cost. Standard carriers more and more are competing with the State Funds price wise and providing top notch service, claims handling and coverages.

What do you consider to be your Company’s greatest insurance exposure?

Cost containment, Asset Protection, Business Continuity and GROWTH!

These are the answers CFO's provided in a recent Linkedin survey with over 600 responses.

A simple insuranve program review can show where holes in a program can be that can lead to uncovered claims, inadequate limits or incorrect classification codes.

All can cost a company thousands - even millions - and make the difference between layoffs and profit and hiring!

Want to Grow your business in 2011? Trade Credit insurance offers business security!

Trade credit insurance is a business insurance product that indemnifies a seller against losses from non-payment of a commercial trade debt. With trade credit insurance in place, the seller/policyholder can be certain that non-disputed accounts receivable will be paid by either the debtor or the credit insurer.

Trade credit insurance is a financial tool to hedge against both commercial and political risks that are beyond a company's control. Balance sheet strength is ensured, cash flows are protected, and loan servicing and repayments are enhanced.

A trade credit insurance policy also allows companies to feel secure in extending more credit to current customers, or to pursue new, larger customers that would have otherwise seemed too risky.

The protection it provides allows a company to increase sales to grow their business. Insured companies can sell on open account terms which, for exporters especially, can be a major competitive advantage.

Companies invest in trade credit insurance for a variety of reasons – including:

• Sales expansion: If receivables are insured, a company can safely sell more to existing customers OR go after new customers that may have been too risky without insurance.
• Expansion into new international markets
• Better financing terms – In many cases, a bank will lend more capital against insured receivables, and may also reduce the cost of funds.
• Reduce bad-debt reserves – This frees up cash for the company. Also, trade credit insurance premiums are tax deductible, but bad debt reserves are not.
• Indemnification from customer non-payment.

A wholesaler company’s credit department had granted a credit line of $100,000 to a customer. They then purchased a trade credit insurance policy and the insured approved a limit of $150,000 on that same customer.

With a 15% margin and an average DSO of 45 days, the wholesaler was able to increase their sales to realize an incremental annual gross profit of $60,000 on just that one account.

Whats Important to a CFO?

My clients tell me that growth, cost containment, asset protection and business continuity are their biggest day to day concerns.

All of these issues can be addressed by risk management services from an insurance broker.

Examples, Experience mid and Classification reviews; Loss forecasting; Cat modeling; Collateral reviews; Contract reviews.

Utilization of these concepts allows a company to take control of the insurance process and allows for broader coverages and less premium.

Is your broker providing you solutions or just taking your premium?

The Importance of Cyberliability Insurance Coverage in Response to Hacking

A massive and growing data breach recently engulfed a swath of US corporate titans focused on consumers exposing the names and email addresss of their clientele

In what could be one of the biggest such breaches in US history, computer hackers penetrated the databases of online marketer Epsilon at the end of March.

The incident comes three years after hackers penetrated Heartland Payment Systems, a credit and debit card processor.

A hacking ring stole more then 40 MM payment cards – the leader of the ring was sentenced to 20 years in prison.

http://www.usi.biz/

Gender bias claims not slowing down

Gender discrimination claims persist as a risk for employers despite widespread implementation of company policies on the issue and greater employer sophistication in this area.

According to the EEOC, gender discrimination charges accounted for 29.1% of all charges in fiscal 2010. Since 2000, they have registered in a relatively narrow range between 29.1% and the 31.5% reported in 2000.

The total number of charges filed with the EEOC has increased 25.1% since 2000, to 999,992 in 2010, which many attribute at least in part to the economy.

- Business Insurance 2011.

They key in these matters is to coordinate with your insurance carrier for defense and settlement.

Most carriers have an approved listing of counsel – but will often approve outside counsel depending on the case. Defense costs cannot be reimbursed if outside counsel is not approved.

Regardless, settlement amounts – when applicable - should never be agreed upon unless the carrier approves. Upon selection of counsel, An ‘Indication Coverage Letter’ details the ‘rate’, as it were, at which defense costs and applicable settlements are to be settled. Carriers will not pay beyond these rates unless there are extraordinary circumstances.