What Large California Companies Do To Lower Costs That Any Company Can Do
As we continue on our journey together to a better understanding of California business insurance, we thought it would be informative to identify some risk management “best practices” of larger companies. We believe that many of these “best practices” can, and should, be discussed with businesses of all sizes. The good news is that these generally don’t create additional costs to the company; in fact, they usually reduce costs!
California Insurance & Risk Best Practices
- Big Companies View Their Broker/Agent As A Trusted Advisor. The best way to accomplish this is to not bid insurance, but rather select an agent based on qualifications and the best fit with the goals of the business.
- Consider Modifying The Insurance Program With The Swings In The “Market”. For example, during a soft market you are able to lower deductibles and broaden coverage. As the market cycles up, you are able the increase deductibles to offset premium increases.
- Develop Cyber Breach Procedures. Small to medium sized businesses have a greater chance of having a cyber-breach than they do of having a fire. Here is an excellent resource from Experian
- Wellness Has Become A Norm. According to an article in the Louis Business Journal, “employee absenteeism is reduced when wellness programs are implemented”. In a study by Prudential Insurance, disability days were 20 percent lower and disability-per-capita costs were 32 percent lower, after implementing a wellness program. In addition, annual medical costs fell by 46 percent.
- Human Resources Is Part Of The Management Team.As the workforce gets older, finding ways to attract younger employees will be important. Developing new nontraditional compensation formulas and work hour flexibility will help attract and retain top performers. Develop an employee handbook and keep it updated. Educate and train all employees.
- Separation of Accounting Duties. A recent report issued by The Association of Certified Fraud Examiners, places the cost of employee fraud at 7% of annual revenues. Companies with less than 50 employees saw a median loss of $50,000. Separate check writing and depositing responsibilities, and have an annual audit by a qualified firm.
Agents at Dahlmeier Insurance Agency can help you find the right insurance coverage for your specific company needs. We work with a variety of Northern California businesses, including contractors and builders, subcontractors, self-employed professionals and artisans, nonprofit organizations, job training centers, commercial farmers and agribusinesses.