Tag: Risk Management

Risk Management & Insurance

5 Reasons to Major in Risk Management & Insurance

 

Insurance companies are hiring

One of the main reasons people go to college is to become more employable.  If gainful employment is your goal, than the insurance industry is definitely a good place for you to start to look for a job post graduation.  This is because, the industry is predicted to grow for the next few decades.  More insurance is needed by people than ever before. That goes for both the business and personal side of the industry.  According to the Small Business Administration, there are more than 28 million small businesses in america that make up for more than 55% of all jobs in the country.  All of these businesses need continually need well educated employees to service these businesses.

The workforce in the insurance industry is aging.  

According to Insurance Business Magazine, the average age of an insurance agent is now 59 years of old.  According to the Insurance Journal, “The average age of an insurance industry professional is 54, and 60 percent of insurance industry professionals are older than 45.”  Because of this fact, there will be thousands of retiring professionals who need to be replaced in the next 10 years. This means two good things for graduates looking to get their foot in the door in the insurance industry; there are a lot of potential mentors with a wealth of knowledge and experience in this industry and there will be a lot of room for upward mobility because of the sheer fact that so many people will be retiring in the near future.

Millennials are becoming a target market

Millennials are now a larger portion of the population than baby boomers. Also, they are are now getting to the age where they are buying homes, searching for their own health insurance and even starting their own businesses.  Because they represent such a large new market for the industry, insurance companies need people who can relate to this new market on their terms.  Millennials shop for insurance in a dramatically different way than their parents did.  The insurance industry as a whole has not exactly kept up with technology.  Most insurance companies need employees to help them communicate with these new potential customers and they need to be able to reach these customers where those customers are. More and more often that place is online and through a mobile device.  The older generation, who is now in control of the insurance industry, is not exactly technologically advanced. The better a millennial can help agencies and carriers reach this new demographic on their terms, the better those people can set themselves up for continued success in the insurance industry.

The chance to develop Transferable Skills

Interpersonal communication, critical thinking and computer knowledge are skills that are essential for success in the insurance industry. These are also skills that can be transferred to many different industries. No matter what industry a recent grad desires to be in, in the future, these three skills are crucial to their future success.

Interacting with a 40-year-old business owner in 2016 is much different than in 1996. In 1996, cold-calling and in-person meetings were the typical ways to conduct business.  Now a majority of all business is done via email.  Some business is even conducted thru social media. If you have a knack for these platforms you can position yourself as an asset to your company.  Because of the age of so many within the industry these new skills will only become more valuable as technology advances.

People will always have to purchase insurance in some form or fashion

No matter what the future holds for business in the United States, insurance will continue to be a part of the economy.  More people now need insurance than ever before.  Whether it is health, car, home, auto or small business coverage; there will always be numerous markets for insurance throughout the United States.  That means jobs will always be there for those that are willing to train hard and keep their nose to the grind.

3 tips for effectively managing risk in the Non-Profit Industry

People go in to the non profit industry for a wide array of reasons. For most people, that reason has something to do with serving their community. Many people in the non profit Industry do not anticipate having to manage risk, but how effectively their organization manages risk will contribute immensely to the success or failure of the organization. Some of the aspects of managing risk include:  developing safety programs, writing liability waiver forms, designing a return-to-work program for injured workers or purchasing workers’ compensation insurance.  In order to effectively manage risk, here are three tips every Non Profit Professional should consider when determining how to manage the risks your organization faces.

Find the best info about insurance for Non Profit businesses at My Insurance Question.com

 

 

Have an effective safety program in place.

Having an effective safety program in place is essential for all non-profit organizations. First and foremost, this is simply the right thing to do.  It is the right thing to do for your employees, for your volunteers and for your organization as a whole. The success of the safety program starts with the leaders of the organization. If the leaders of your organization make it clear that you value safety, the employees and volunteers will value safety as well.  What an effective safety program looks like will differ depending on the scope and mission of your organization. A safety program for local soup kitchen will be dramatically different than an NGO that distributes medicine across several different countries.  For that reason, it is important to invite a risk management professional to sit on your board of directors.  If you do not know someone in this field you can consult with your insurance agent.  They typically have generic programs in place for many different industries.

 

Deciding when and if your organization needs to purchase insurance?

For a small or recently founded organization, you may be able to do without insurance for a short period of time. This is not something to take lightly.  No matter how little money your organization has, not securing proper insurance can lead to your organizations failure if an accident does happen without proper coverage.  Eventually there will come a time when your organization will need coverage. The state you are located in will determine when you are required by law to purchase some coverages. Workers’ compensation insurance is usually the first coverage you will be required to purchase. This policy covers the risk of bodily injury to your employees.  General liability insurance covers bodily injury and property damage done to third parties. These third parties may be the people you serve or anyone who comes in contact with your organization. These two policies are typically the first policies a non profit will consider and they are the bare minimum coverage.  As your organization grows these two policies may not fully cover your business from all risks. You may not understand all of the risks you actually face and the types of insurance you need.  Consulting with an insurance professional whom you trust is important at this stage in your risk management process. Asking someone who works in insurance to volunteer with your organization or to sit on your board is a good idea.

 

Have a return-to-work program in place for injured employees.

Developing an effective return-to-work program is something that can be a work in progress. Ideally your safety program works and you do not have many injuries. Even if you only have the occasional minor injury, it is best practice for your organization to have a plan for getting an injured worker back to work as soon as possible.  The quicker they get back on the job the more likely they are to return to regular work and the mission of your organization.  Some common jobs for injured workers include basic office work like stuffing envelopes, answering the phone or writing thank you letters to donors. Getting people back on the job quickly is important because people who work in this industry frequently have a special relationship with the work they do. Many of them want to be a part of something greater than themselves. This is especially true with the millennial generation. When these people are injured and not able to work, part of their life is taken from them. The longer it is not a part of their life, the more likely they are to not come back to work at all. This is when the cost of a claim can become the greatest and is when you can expect to see an increase in your insurance premium. Having an effective return-to-work program can help these employees get back on the job, control the cost of your workers’ compensation claim and continue the mission of your organization.

Why so many questions???

Shopping your Workers Compensation insurance –

4 Tips for the best and fastest results

Shopping insurance can be a daunting task. This is not commonly the case with other purchases. When you buy a couch, you just pick out one that feels comfortable.  One that fits your room or matches your style. You look for one that is in your price range and bam! you have the newest edition to your next super bowl party.

Shopping insurance, as much as we would like it to be, is not like buying a couch. Yes, you shop for a policy that fits your coverage needs and the budget you are able to afford, but there are some distinct differences to shopping for an insurance policy. An important factor to consider is the seller’s motives. When you buy a couch, the sale for all intents and purposes is over. The expense and liability of the company selling the couch is basically the same no matter who they sell the couch to.  When you buy insurance, the company who is providing that coverage doesn’t have the same benefit. Insurance companies use a variety of data to determine the risk of each person or business purchasing from them. The reason this information is used is because it has been shown somewhere in their data that this factor shows a correlation between certain variables and their likeliness of a claim. There are something you can do to help tip the odds in your favor. Here are four tips for making the quoting process easier for you and can help you get you the best price you desire:

Be Presentable: Dress your business up for Sunday church, not casual Friday. Show a clear outline of the purpose of your business and the kind of work you do. Equally importantly is to outline the work you won’t do. Make sure your marketing material and websites match this. There are few objections harder to overcome with an underwriter than a website that says you do something your application says you do not. Having these things in line is the best way to get a great first impression.

Be Open about the biggest risk: Every company has some operations that are lower risk than others. Insurance is as much about preventing claims as it is about paying them. The goal of the industry is to make your business whole after a claim, but wouldn’t it be better if we help you to prevent that claim from happening in the first place. Tell your agent about everything you do. If we don’t know that you are hanging from a rope 50 ft off the ground with a chainsaw in your hand, we can’t help find a better way to protect yourself and your employees in that situation (true story).

Note the details: Sometimes high risks are deal breakers, however sometimes in the right circumstances this can be overcome by showing the amount of this exposure. “Yes, we do work on roofs, however they are only flat commercial roofs and only ones with inside stair access or a permanently attached ladder with walls around the perimeter”. The controls you have in place for the highest risk work will be the most vital controls to focus on.

Don’t be afraid to show your hand: A lot of times people look at an insurance purchase like a poker game. If you are buying insurance as a commodity, then that’s what you should expect to receive when you want that policy serviced.

If you work on the same side of the table with your agent however they can work to get the best pricing possible. There is no better pricing than you can obtain from an insurance company than when the underwriter knows what they are insuring. When the underwriter is confident in your business and knows what price they have be at to earn your business they may be more aggressive with credits and discounts. There is much more savings to be had if you say “this is the premium you have to be at to earn my business” than there is with “show me your best price”.

6 Ways to Keep Your Small Business Safe

Safety can mean a lot of things to a lot of people. In the business world, the perception of safety can mean a lot of things to a lot of different business owners. What it takes to properly protect your business should be something that is taken very serious by all of the decision makers within your business. Safety can mean securing the property at night when you are away from the building or it can mean properly training your employees to use the equipment they will be using as part of their job. It can even be having the proper policies in place to prevent your business from a data breach. There is a laundry list of things that can be included in your businesses strategy to properly keep your business safe. Here are 6 strategies to keep in mind when protecting your small business.

Hire the right people

It may seem obvious, but the people you hire are your most precious asset. Making sure they are the right people can go a long way towards the safety of your business. There are many ways you can go about checking up on your applicants. Criminal background checks, motor vehicle driving records, investigating their references and checking their college transcripts are all great places to start. Sometimes you will have to rely on your gut reaction to them from an interview, but taking extra time to make sure the people you hire are the right people will start your business off on the right foot when attempting to keep your business safe.

recruiting-new-employeeshire

Train people effectively in the first place

Once you have hired the correct people for your organization it is not enough to just set them loose. You must properly train them in the art of protecting your business the way that is best for your organization within your industry. and think everything in your business will remain secure. They need to know what is important to your organization and how you expect them to conduct business. This may seem obvious, but far too many business owners forget this part of their organization. An employee in HR or Marketing might be coming to you from another industry. They may not see the potential risk that exists for your business in your industry. Take the financial services industry for example. This industry deals with every bit of a customers’ sensitive information, most importantly their financial accounts. If they are coming from another industry where the business does not have access to these types of materials’ they may not fully understand the need to safeguard everything they do. Another industry, like commercial cleaning, has risks where they are allowing employees in to a business after hours when they are the only people in the facility. This opens up the possibility for theft or access to internal computer networks. Training new employees properly will prevent risks from getting out of hand later.

Have well-documented, well thought out Safety Programs

Safety programs entail a lot depending on your business. Don’t be afraid to make them more or less extensive based on the needs of your business. It should start during the initial training/onboarding process for all employees. If you make it clear to them from the beginning that safety is important to your business than they will implement this in to their daily work routine. Like many things in life it is always easier to start tight and loosen up than to start loose and try to tighten up later. That works for a safety program as well.

Defensive Driving Class

Defensive Driving Program

Having a Defensive Driving Program in place can make drastic difference in the frequency and severity of accidents that occur among your employees. If you have employees that operate a vehicle as part of their job they need to have their driving record pulled at least once a year. As part of the hiring process, many businesses require employees to pay for the driving record themselves. This can help weed out applicants with the worst driving records. It saves you time and money on the front end from going through the hiring process with someone who will not be getting the job because of their driving record.

Buying the proper insurance.

Having proper insurance is essential to any good business plan. How much and what types of insurance a business needs, is completely dependent upon the business owner. It depends on how much risk they are comfortable taking and what types of risk they actually face. This is something a good independent insurance agent can help you determine. Many business owners face risks they do not realize and that is where having a long honest conversation with your agent can help you get properly insured. In most states and in most industries it is legally required to carry Workers Compensation and General Liability Coverage. But there are several other coverages that may be necessary depending upon the industry you operate in. Most carriers have programs set up for each specific classification code and they are called Business Owners’ Policies. In most cases this is the best way to go about purchasing commercial insurance.

Take cyber security seriously

Cyber security is a real threat to nearly all businesses. Regardless of how technologically advanced your business is there is a threat in the cyber world. Two of the largest data breaches in history were first started by small businesses first being hacked and allowing access to a larger network of customers through a vendor partnership. Many business owners think data breaches occur through highly technological criminals hacking in to a computer. That is the source of many data breaches, but many start with something as simple as someone leaving out a post-it note with their username and password or an employee taking a laptop home for remote work and the laptop getting stolen out of their car. Those are real risks that any business can have and they can cause a huge cost to your business when they do happen.

Get the best answers to Cyber Security questions for small business owners here at my insurance question.com