There are risks everywhere in construction and your goal is to take the ones that will be beneficial for your company. While it would be great if you could determine which risks were better than others on your own, there are not enough hours in the day for that. For that reason, most companies outsource their risk management.
Risk management experts have seen it all and they know which risks are worthwhile and which ones are not. These experts can save you time and a lot of money. The key is to find a risk management expert that will fit with your team, your goals, and your vision.
Here are 5 things to look for when outsourcing your risk management:
- Reviews of Policies and Endorsements: You will want to hire a risk management expert that will continuously review your policies and endorsements to ensure that you will receive money if you need to file a claim. Some policies and endorsements are written so explicit that it seems that every claim that is filed will be denied. Therefore, your risk management expert should have them changed to make sure that there are no loopholes for the future.
- Review Contracts: Almost all your contracts should have a comprehensive risk transfer analysis, because it is the least expensive way to transfer the risks. It will be even better if your risk management expert can convince your underwriter that your risks are being transferred this way, so that you have better coverage with reduced rates.
- Support During Bids and Accruals: As insurance costs change, your risk management expert should assist you as you are placing bids and accruals. They will be able to tell you if you should be charging more to coverage the costs of running your business, so that you make money instead of losing it on a project.
- Determine Modification Projections: Modification projections will help you keep your worker’s compensation premiums lower and allow you and your risk management expert to make better decisions.
- Analysis of Cost Benefits: Your risk management expert can research optional coverage as well as deductible levels to make sure that you are getting the biggest bang for your dollar. This research will allow you to make better decisions for your company and your employees.
As you are searching for the best risk management expert for your company, you will want to ensure that they do all the above and more. Any risk management expert that does all that they can for the company that they are working for will be a vital part of the team and well worth the money that they are being paid.