Scott Simmonds - Insurance Newsletter

Expert Risk Analysis and Mitigation
www.ScottSimmonds.com

December, 2007
Issue #91 - Since 2000

Your Risk Analysis and Mitigation Calendar

For some time I have been considering the idea of a calendar of risk mitigation actions businesses should follow. The table below outlines a schedule of activities based on a "risk management year" based on the expiration date of the organization's insurance policies.

Month 1
Your insurance renews
Review binders
Review auto id cards
Review list of needed certificates

Month 2
Review renewal policies for accuracy when they are delivered by your agent
Walk through inspection looking for hazards, equipment, and safety issues

Month 3
Test computer backup system
Update contact info sheets – employees, customers, suppliers

Month 4
Review / update disaster plan
Walk through inspection looking for hazards, equipment, and safety issues

Month 5
Review open w/c losses – have reserves adjusted in anticipation of experience mod calculation
Meet with agent - review coverage, losses, and future plans

Month 6
Test computer backup system
Review loses for trends and problems
Walk through inspection looking for hazards, equipment, and safety issues
Update contact info sheets – employees, customers, suppliers

Month 7
Review and update employment forms, procedures, and handbooks
Audit files of new hires – handbook documentation? Computer/ergonomic, harassment, and other training documentation?

Month 8
Meet with agent to strategize renewal
Decide whether a bid process is needed
Walk through inspection looking for hazards, equipment, and safety issues
Risk Identification – Review a comprehensive listing of risk exposures to identify areas of need.

Month 9
Review experience mod calculation from NCCI
Test computer backup system
If bidding, meet and select competing agents – provide info
Update contact info sheets – employees, customers, suppliers

Month 10
Review / update disaster plan
If not bidding renewal, review coverage limits with agent
Manager training on employment law issues
Walk through inspection looking for hazards, equipment, and safety issues

Month 11
If bidding, obtain feedback from participating agents
Review safety policies and audit compliance
Review vendor relationships – their viability, sustainability, replacement relationships

Month 12
If bidding, analyze bids
Decide on renewal policy – agent, insurer, limits, and coverages
Determine payment plan that best meets your cash-flow needs
Test computer backup system
Walk through inspection looking for hazards, equipment, and safety issues
Update contact info sheets – employees, customers, suppliers

The key to exceptional performance is a system of "best practices." The above provides a framework for actions to manage risk in your operation. Who oversees this process for you?

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Maine and Other Stuff

Few people I talk to in Maine can recall a winter in recent memory where it has been so cold and with as much snow as we have had. As a matter of fact, it's snowing right now! A white Christmas is almost guaranteed.

Our bird feeders are full of birds almost all day now. I moved two of them from the yard to just outside my office window. The activity is constant. With seven inches of snow on the ground, they are looking for the easy source of food.

I've now completed teaching my community college class for this semester. For those new to this newsletter, I've been teaching a class on small business management. What a great experience. I would strongly suggest to anyone with an interest to offer to teach at your local community college. The students are eager and interested. It has been great. I look forward to next year.

Happy Holidays and New Year!

Do You Have The Right Insurance? Contact me to discuss an unbiased review of your insurance program. Do you have the right coverage? Can your policies be fine-tuned to improve the protection? Can changes be made to ease the administrative burden insurance causes? Are you getting the service you should from your broker? I can help. Remember, I don't sell insurance so I'm unbiased.

Need A Speaker? I'm pleased to speak to trade, business, or service associations about insurance topics. See my speaker's page.

Please Forward This Newsletter To Your Business Associates

Scott Simmonds, CPCU, ARM, CMC
Insurance Consulting
Phone 207-284-0085
Fax 802-992-4027
Scott@ScottSimmonds.com
www.ScottSimmonds.com

See My Insurance Blog - www.InsuranceBuzzer.com

Comments regarding insurance policies or products in this newsletter do not constitute an endorsement. I accept no fees of any kind from any company mentioned in this newsletter.