The Bull Stops Here Blog

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

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

Upcoming Insurance Go2Guy Teleconference:

Friday, January 8, 2010 11:00 AM Pacific / 2:00 PM Eastern

All Teleconferences are recorded and an MP3 audio download will be e-mailed.

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
  

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Start your new year off by protecting your business while saving time, money, and frustration on your insurance.

Register now

What should you consider when looking for the right homeowners insurance?  Here are some thoughts off the top of my head…

Homeowners face a number of personal liability risks such as:

• Slip and falls (premises), including their own sidewalk if icy or wet
• Liquor liability if guests leave their home after a dinner or party having consumed alcohol
• Liability caused by children (mischief or accident) and animals (dog bites)
• Damage to neighbors house by trees from your property falling
• Injuring someone (ex. wayward golf ball)
• Liability from work on a non-profit board of directors
  

Umbrella policies are essential for most people.  No longer do you need to be a high-income person to have exposure to high damages.  The cost of umbrella insurance for just $1,000,000 will range between $150-300 per year based on property and number of vehicles and drivers.  Umbrella policies normally require an “underlying personal liability limit” on the homeowners policy of $500,000. The umbrella normally sits first dollar over that underlying limit to cover both your personal and auto liability.  People who have higher income levels and more properties and autos to insure should consider higher umbrella limits.

Homeowners should look for policies from A-rated companies (financially strong) that offer discounts for multiple policies (i.e. Auto), good claims history, and increasing deductibles. They should be competitively priced (note I didn’t say cheapest) and have local claims representation.

Bottom line - Don’t leave the task of procuring homeowners insurance to chance.  Make sure you find a competent agent with upstanding companies to transfer this risk from you!

This is an article in today’s Scottrade Stock Market News where I am interviewed on the Tiger Woods fiasco. Companies that hire celebrities to endorse their “brand” face liability issues. Insurance companies are not in the moment if they miss this opportunity to protect their clients. Insurance buyers who engage in hiring celebrities are missing the boat if they don’t look into transferring all or part of the risk.

Read the article

I’m working on a manual for business owners, risk managers, and professionals on liability associated with social media marketing. One of the chapters is slated to be “Questions from Readers.”  To that end, I’m in need of questions.  That’s where you come in.

Please send me your questions on anything dealing with social media - your concerns, challenges, privacy issues, best practices, etc. I will do my best to answer them on whatever forum you ask, and use them in my manual which will be published (no names - just questions). Perhaps you have clients that have questions.

You can ask me questions via e-mail (dan@danweedin.com), Facebook, Twitter, or Linked In, or on this blog. Your help is greatly appreciated!