RISK CONTROL
The Benefits Of Risk Control
Minimizing Risk
Insurance is all about controlling risk , whether it involves your organization , personnel , property or net income . Identifying these trouble spots and developing effective strategies to minimize risk is one of the critical services your insurance broker can provide your company .
We are all familiar with the concept of insurance : paying premiums to an insurance carrier in exchange for transferring the cost of any losses from the company to the carrier . Your broker can help you uncover not only the best combination of coverage and cost but also manage your company ’ s risk profile to present it to potential underwriters in the best possible light .
It ’ s a natural tendency for insurance carriers to try to pigeonhole your business into a neat and tidy category . For workers ’ compensation coverage , perhaps your company will be classified as retail , transportation , residential construction or light manufacturing . For property , the category will be based on usage , such as construction , fire prevention or other damage .
Underwriters will examine your company ’ s loss history , including the frequency and amount of claims in order to determine your premium . If the loss history includes an aberration — like a freak accident , an undetected inaccuracy or an injury incurred but awaiting compensation — it may translate into an artificially high premium . Insurance carriers will do their best to avoid unexpected losses by ensuring that your premium covers any potential farreaching claims . A risk consultant can help avoid inflated premium assessments by advocating on your company ’ s behalf to explain past incidents and discuss mitigation strategies moving forward .
Risk consultants can also help with asset preservation by reviewing vendor contracts and certificates of insurance to ensure proper wording and sufficient risk protection . Services may include reviewing your company ’ s hiring practices , safety training protocols , frequency & effectiveness of retraining and hazard reduction initiatives . Questions the risk consultant may pose include “ Are physical requirements clearly explained in your job descriptions ?” and “ Are there avoidable safety hazards in the workplace ?”
A highly experienced risk consultant will work with you to ensure that your company is presented in the best possible light to carriers and that your risk exposure is minimized to the greatest extent possible . Some carriers require a pre-inspection prior to quoting an account or write their policies subject to an inspection within thirty days .
A good consultant will get to know your company intimately and represent you with integrity , along with a mix of grit and determination . At JGS Insurance , consultants will review your current programs , assist in identifying areas for improvement — either prior to requesting coverage or post-inspection — and help you implement any required changes following your company ’ s inspection .
When choosing a broker or a new agency , it ’ s critical to choose one with a strong risk control group to help ensure you get the most for your money . Your broker or agency should work alongside you as your partner in finding the best carrier , the lowest premiums and the best coverage available . It should also work throughout the year to find you new risk control opportunities for the following year . +
Mr . Wokas has over 25 years of experience as a risk management consultant working for various major property / casualty insurance carriers including Continental , Zurich and Gerling as well as Aon an international insurance brokerage firm . While working for insurance carriers and Aon , Mr . Wokas provided workers comp and general liability technical support in areas of safety and industrial hygiene for companies such as Akzo International , Toys R Us , Formosa Plastics , Macys , Trump Casinos and Sheraton Hotels . He has designed and implemented numerous engineering controls including fall protection systems , noise reduction , slip / fall prevention and less hazardous chemical substitutions . At JGS Insurance Mr . Wokas continues to assist clients in development and implementation of practical solutions in reducing risk .
ERIC P . WOKAS , CSP ARM , JGS INSURANCE
SPRING 2017 | 7