Once Upon a Time
Staffing & PEO Risk Management
Behind every company is a story. Just like the “choose your own adventure” books – there are different paths that determine how exactly a story progresses and concludes. A story often begins with how an organization started and ends with what the future holds. But, there’s one section that’s repeatedly missing – an angle of the story that if not told properly can greatly influence the outcome. It’s what I like to call the ‘Risk Management’ chapter.
Risk management is often glazed over in the storytelling process. Brokers don’t always understand the importance of characters, resolving conflict and illustrating a scene to readers – in this case – insurance carriers. Carriers want to know your story, the stakeholders and plot. They want to hear about how you’re resolving conflict and any risk management triumphs along the way. It’s an important part of the story and one that greatly impacts your renewal. Here are four elements that need to be added into the ‘Risk Management’ chapter of your story:
Loss Experience and Corrective Action – Loss experience by itself only provides a historical view of how a company has performed. Make sure your broker is able to speak to any corrective action taken to minimize the loss from reoccurring. In other words, what has changed? Perhaps a new procedure was implemented and/or safety equipment was added. An underwriter can only expect the same result(s) if they’re not made aware of any changes.
Claims Management Practices – Ensure the broker can clearly articulate your efforts toward mitigating the cost of claims. For example, do you have a Return to Work program? Are accidents investigated for root cause? Are there regular follow ups with injured employees, etc.? It’s one thing to have a claim(s) and go on with your day; it’s an entirely different story when there are steps in place to mitigate the cost of the claim.
Safety and Loss Prevention – This section should certainly include your efforts to maintain compliance with OSHA; just make sure your broker knows what other safety initiatives you have implemented outside of OSHA requirements. Examples would include safety incentive plans, special training practices, unique hiring procedures, site inspections, and any safety committees. All aspects of your safety and loss prevention efforts should be described.
Management’s Commitment – Your commitment and involvement in risk management shows an underwriter that management supports and takes an active role in the program. It also projects a positive perception of the company. It’s important for the broker to describe what the involvement looks like and how the results are being overseen. For example, is there accountability? Is risk management on the agenda at meetings? Is there a dedicated budget?
So now my question to you: is risk management integrated in your story and how well is your broker telling it? Your renewal outcome might just depend on it.
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- Accident Investigation Webinar
- Claims Managemet Webinar
- Safety Culture Performace Metrics Webinar
- OSHA Temporary Worker Initiative & Client Selection Webinar
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