‘Tis the Season: Recapturing Costs During Insurance Renewals

Aside from year-end tasks and holiday events, ‘tis the season for insurance renewals. You’ll likely be meeting with insurance brokers soon to determine the right risk management program for your business in 2022.

In the past, you’ve explored coverages and premiums.

This year, you can (and should) expect better for your business and your financial statement. There is likely a sizable sum of unfunded expenses that your business absorbs that are not covered by the insurance carriers. This Financial Leakage is a direct result of the unbudgeted impact that accompanies each claim event you experience. Lost productivity, brand damage, and the cost of replacing equipment are a few examples of these expenses.

Unfortunately for your organization, these expenses are typically not discussed in the renewal process, leaving you without the ability to measure the effectiveness of your insurance program properly.

You deserve to know much more than the basics of premiums and coverages. The true costs of your risk management program go much deeper than that.

Here are Four Critical Questions you should ask your broker during renewal:

  1. What is the impact you have had on our business results (profits, EBITDA, budget accuracy) over the last year?
  2. What impacts should we expect inside our cost structure in the coming year?
  3. What risk management projects will you implement in the coming year to reduce our cost structure?
  4. How can we quantify your impact using benchmark data and key metrics.

As a Certified Analytic Broker, we are uniquely qualified to answer these questions for you during a complimentary consultation. We’ll attach our answers to your key metrics and help you measure your organization’s cost structure in 2022 and beyond.

Best of all, we’ll develop a data-driven plan to help you measure and recapture these controllable costs to improve your business performance in 2022 and beyond.

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