Posted by Robert Phelan on Fri, Aug 20, 2010 @ 01:56 PM
So now that you know that Total Cost of Risk (TCOR) is the primary criteria to measure, how do you go about it?
If you are going to “begin with the end in mind”, that means you are going to have a plan. I can see your eyes rolling back in your head as you read this. You’re already overwhelmed with work and now some guy is telling you that you have to have a plan to manage your business insurance.
Remember in Part 1 where I told you to find a Risk Advisor or Agent/Broker who can talk to you about TCOR? Well, If their orientation toward risk management has a TCOR focus, creating and implementing a risk reducing plan will be a core strategy they employ. It’s not about more work for you. It’s simply about finding the right adviser trained and skilled in the concepts of risk management vs. selling insurance policies.
If you need heart surgery, you don’t need to know how to perform it. You just have to find someone who does. Same with risk management. This isn’t a new skill you have to develop. You just have to find an advisor who will diagnose, design and implement a risk reducing plan. The reward for you will be much larger long term savings than simply focusing on cheaper insurance.
Rule #2 is to create a long term plan (or have one created for you) to reduce TCOR. Some of the savings will come instantly and some will take longer but this I will guarantee. If you focus on TCOR and have a smart advisor, you will always pay the lowest possible amount for business insurance. I’ll explain in my next post.
Part#1(If you missed it)
Look for Part #3 on Monday 8/23