The Bull Stops Here Blog

I’ve changed the name and address of my insurance consulting blog.  Form here on in, please go to the following:

Name - Insurance Confidential by Dan Weedin

URL - www.insuranceconfidentialblog.com

All posts and resources will now reside there!

Thanks…

Be careful…you could be tomorrow’s safety news!

If you are ever approached by an insurance agent/broker who wants you to sign a broker of record letter, understand one key thing.

You are FIRING your current agent.

A broker of record letter instructs your insurance company (ex. Safeco, Travelers, Firemans Fund) that you are firing your current agent and authorizing them to deal with the agent for which you are signing the letter for.  Plain and simple.  If you are unhappy with your current agent and wish to change, this is the avenue you take.  However, never sig one under the pretense that the broker needs it to procure proposals.  That is not true.

Only sign a broker of record letter if you are intent on firing your agent.  A “best practice” would be to call your terminated agent before they get word from the company. It saves you getting a call from them and is the courteous thing to do.

© 2010 Dan Weedin. All Rights Reserved

My favorite show on television is NCIS.  I look forward to every Tuesday night sitting down with the family and watching a new episode.  Last night, it was another rerun. I hate repeats!  I understand why - they have to time their programs to end during “sweeps” and since shows don’t have as many episodes, you need to sprinkle in reruns.   I still don’t like them.

Are you performing “reruns” with your safety meetings?  Are you running through the same old programs, videos, and training?  If so, your employees will get bored.  Just like watching reruns on television, they only have so long of a shelf life.  In order to maximize your efforts in risk management and get the most bang for your buck, you need to be innovative, creative, and fresh.

Otherwise, your employees will just tune you out!

© 2010 Dan Weedin. All Rights Reserved

Sterling Financial Corporation was hit with a lawsuit due to pension plan losses, according to the Kitsap Business Journal.  This is EXACTLY why you need an ERISA bond.  This is a coverage that protects the board of directors from lawsuits like this one.

Read the full story.

Risky Business: How to Minimize Risk and Maximize Profit

This one-hour teleconference will provide you with:

* Five steps to save money on your insurance today
* Questions you should be asking your insurance agent
* Strategies to avoid the traps when purchasing insurance
* Risk management strategies that are simple to implement
* Ways to avoid the BIG mistakes that cost you money and time

Register now.

Your investment is $49 and includes the MP3 download. The cost of
purchasing the audio at a later date is $75, so even if you can’t make it
tomorrow, consider signing up now and saving.

I hope to have you join us for a teleconference with a potentially huge return on your investment!

I know I blogged on this recently but I just had a client ask me about the viability of earthquake insurance. Her questions was, “I don’t feel we get much for the price we pay…”

My response…

1. What do you expect to get in return? Earthquake insurance returns your investment in only two ways.  First, in the event of an earthquake, your damaged property gets fixed. Second is peace of mind. It sounds like you are questioning paying premium for something that may never happen.  However, if it does, will you be unhappy you dropped it?
2. You can certainly shop your coverage for a competitive quote; you can increase your deductible to lower your premium; or you can decide that you are willing to self-insure the risk.  Those are the three options.
3. Earthquake premium is derived from age of the building, type of construction, location, total area, and value of the building.  Any one of these with a high risk (i.e. Brick construction or old building) can significantly affect the premium.
   

My recommendation to any of you is to first decide if you want to self-insure the risk.  If your risk tolerance can withstand an earthquake loss, then don’t but it.  If it can’t, then shop around to find the best possible option.

© 2010 Dan Weedin - All Rights Reserved

What small businesses can  do right now to start 2010 with the upper hand?

Small businesses  notoriously overpay for their insurance due to lack of risk management  strategy.  If you were to commit to a strong approach to your  insurance, safety practices, risk management and forecasting, you would  be able to save money in 2010 on your premiums, as well as improve efficiency  and profitability.

Here are a few tips that you can implement today that will minimize risk and maximize profit:

1 – Get a  complete diagnostic of your safety program.  Injured employees cost  small businesses money in increased workers compensation premiums, loss of  time, and hiring or moving people to replace the injured worker.  Offices  have a huge issue with ergonomics, as this accounts for 50% of workers comp  claims in the country.  Being able to identify exposures and put safety  practices into place to alleviate them will have a direct impact on their  bottom line.

2 – Bid out insurance.  The insurance market is still  “soft,” meaning that premiums are down and competition for business among insurers is up.  Not looking at all possibilities is simply not prudent  and can be expensive.  Regardless of when their renewal is, they should  make a commitment to aggressively bid out their insurance.

3 – Get a  complete diagnostic on your property and casualty insurance.  I rarely  find a policy that can’t be adjusted to save money.  Normally, business owners leave the programming of their policies to the agent or broker without  getting involved.  This is an area that with proper attention could  immediately improve the program by cutting costs and/or preventing uncovered  claims.

4 – Consider Health Savings Accounts (HSA) for medical  insurance.  The programs will vary among states and insurers, but this is  a real option to save money for the employer and actually provide a flexible  policy for the employee.  I had a client that saved $6,000 a month making  the switch last year.

Start off this new year and decade the right way for your business. Minimize your risk and maximize your profit by implementing these strategies today!

© 2010 Dan Weedin - All Rights Reserved