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 Total Cost of Risk

Do you know what’s costing business owners money from their bottom line? Believe it or not, it's quoting their insurance every year.
  Businesses are losing profit because when it comes to insurance (one of the largest expenses) the focus is only on the premium, which is one aspect of Total Cost of Risk. Total Cost of Risk is made up of three items: 

Direct Costs: Insurance Premium, Deductible

Indirect Costs: Administrative Costs, Employee Turnover, Absenteeism, Presenteeism, Hiring, Productivity

Preventive Costs: Loss Control Strategies, Mitigation Strategies,
Injury Management, Safety Programs, Wellness Programs

Direct Costs make up 20% of Total Cost of Risk, Indirect Costs and Preventive Costs make up the other 80%.  Indirect and Preventive costs are uninsurable. Therefore, 
traditional agents don’t have any answers other than quoting the insurance premiums. This approach is costing the business owner profit right from the bottom line.  Business owners need to work with a broker who takes a proactive approach to identify strategies and deploy resources to prevent loss, control loss, and mitigate loss, so that they keep their profit instead of giving it to the insurance company.

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O: 507-452-3366 | TF: 800-657-4448
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O: 507-424-4400 | TF: 800-657-4448