Your Insurance Premium is Only a Fraction of Your Real Cost
For specialty trade contractors, "Hazard Risk" is a silent profit killer. Learn how to master the Total Cost of Risk (CoR) and drive more money to your bottom line.
Deep Dive: What is the Total Cost of Risk?
- The Concept: Managing the cost of risk involves more than just buying a policy; it’s about managing the financial impact of property damage, liability claims, and business interruptions.
- Hazard vs. Speculative Risk: Unlike "Business Risk" where you might gain or lose, Hazard Risk only has a downside—accidental losses that eat your net income.
- The Goal: Our goal is to help you minimize the cost per unit of risk transferred and identify when it actually makes financial sense to retain risk internally.
The 4 Pillars of Risk Expenses
- Administrative Expenses: The internal cost of managing certificates, compliance, and claims.
- Loss Control Expenses: Your investment in safety training and equipment to prevent accidents before they happen.
- Retained Losses: The money you pay out of pocket for deductibles or small, predictable losses.
- Transfer Costs: The premiums you pay to an insurance carrier to take the risk off your plate.
