To eliminate risks, you have to find them first.
Unwanted risks can bring a business down pretty quickly, which means you want to identify them, analyze them and mitigate or eliminate them pretty quickly. One of Members Insurance Advisors’ specialties is creating and implementing comprehensive risk management programs for small to mid-sized businesses. Not only that, they’ll monitor your program on an ongoing basis so that your business stays strong.
Don’t think your business has risks?
It’s still a smart idea to have Members Insurance Advisors evaluate your business. They may find ways to prevent losses before they ever occur. And because of this, they’ll be able to prevent costs associated with managing claims, paying legal expenses, losing employees due to injury, losing revenue due to property or business interruption loss, and assuming liability of others.
So, how does the process work?
Members Insurance Advisors takes a five-step approach to risk management. Here are their steps:
Step One - Risk Identification
First, they identify your company's exposures to risk by:
- Reviewing internal HR company policies and procedures
- Reviewing internal safety manuals and practices
- Conducting physical inspections of your plants and operations
- Reviewing current insurance policies
- Reviewing leases and customer and vendor contracts
- Analyzing financial statements
- Conducting a claims history analysis
- Completing industry-specific risk surveys and questionnaires
Step Two - Risk Analysis
Then, they analyze them to determine:
- Where, why and when individual exposures exist
- Where, why and when actual losses are occurring
- What types of losses are occurring (back strains, property theft, lawsuits)
- How frequently specific types of losses occur, and how severe they can be
- If there are any identifiable loss trends
- The future total expected losses for each loss type
- The costs vs. benefits of controlling or avoiding particular exposures
Step Three - Risk Control
Next, their consultants work with you to determine how best to avoid, control, reduce and transfer risk. They do this by:
- Implementing workers compensation, property and auto safety programs
- Improving human resources policies, procedures and practices
- Transferring risk contractually when possible
- Managing claims proactively
- Avoiding high-frequency and high-severity exposures altogether
- Implementing safety incentive programs for managers and employees
- Implementing a disaster-recovery plan
- Implementing a drug-free workplace program and a return-to-work program
- Implementing a product recall plan
- Conducting regular safety meetings
- Promoting a culture of safety within the organization
- Transferring risks by purchasing insurance
Step Four - Risk Financing
Then, their consultants use the information gathered in previous stages to help determine how to fund losses. A few options may be buying insurance and retaining risk (self-insured deductibles).
Careful consideration should go into deciding how much risk to retain versus how much to insure, and they use several methods to determine what’s best for your business. When insurance becomes the preferred method of funding and risk transfer, they become an active partner in marketing your company to multiple insurers so they can secure coverage for you.
Step Five - Risk Administration
The last step of the process is to create, implement and monitor a comprehensive risk-management program. They’ll develop a written plan that includes an action plan to reduce future risk.
Need risk management?
Simply click here for more information or contact Members Insurance Advisors at 404-677-4131 or 866-444-4617. You can inquire by email at info@MembersIA.com.
Or, feel free to stop by their offices at:
1980 Satellite Blvd., NW
Duluth, GA 30097