1. Why do I need to partner with Corporate Risk Consulting, Inc. if I already have an insurance broker?

Answer: Corporate Risk Consulting, Inc. is NOT an insurance broker, nor are we affiliated with any insurance companies; we are completely independent risk management and insurance advisors working only for our clients.  Unlike brokers, we are able to work with all insurance companies and are not limited to only a select few based upon existing agency relationships.   We utilize this ability to access a broader array of insurers in the marketplace, thus allowing for the development of more competitive insurance renewals. Our clients typically see reduced pricing and more comprehensive insurance programs due to the enhanced competitive environment now available to them while partnered with Corporate Risk Consulting, Inc.

Additionally, in contrast to our set fees from clients, brokers are compensated by insurance companies which pay commissions to them based on the total amount of premiums charged for insurance policies placed.  Certain brokers also still receive additional commissions called contingent commissions when they write a certain amount of business with a specific insurer.  These general compensation arrangements inherently promote conflict of interests which typically do not benefit the insurance buyers, our clients.

Since brokers’ compensation is contingent upon how much premium is charged, their incentive to negotiate premiums down may be minimized since their own commissions will also decrease proportionally. This lack of financial incentive along with the investment of time and effort required to make price comparisons among many providers explains why a majority of brokers will choose to forego the marketing of program renewals with additional brokers and/or other markets. Instead, if prompted by the insured, most brokers will offer to have a few others insurers look at the program with no other brokers involved. To the detriment of the insured, this pattern will typically result in higher insurance and brokerage expenses attributable to the lack of competition for the insured’s business.

Furthermore, after policies have been issued and commissions paid, most brokers have moved on to their next client’s renewals and focus is lost on you and your policies until next renewal.  There is again minimal incentive for them to completely review and critique the actual issued policies against any previously agreed upon pre-renewal client specifications.  While you may have received assurance that your insurance policies, endorsements, and forms have been reviewed and are sufficient, be aware that we have been told this many times only to find inappropriate exclusions, missing endorsements, and other such significant errors.  As such, we remain proactive year-round, not just reactive when prompted with a question from the client or at renewal time.

In utilizing Corporate Risk Consulting, Inc. as your risk and insurance consultant, you will receive unbiased objective advice since we are only working for you, and are only compensated by you.  We are and will remain completely independent of all insurance companies, agents, and brokers, thus allowing for the placement of the most comprehensive and competitively priced programs available.  In most cases, our fees are more than offset by the savings realized by our clients.

2. How is the fee structure comprised when working with Corporate Risk Consulting, Inc.?

Answer:  Depending upon the particular needs of the client and scope of services being provided, we try to remain as flexible as possible, allowing for payment on a fixed monthly retainer basis, on a time and expense basis for certain projects, or under certain circumstances, on a set percentage of actual savings realized.  The fixed monthly retainer option is used most often since it is most economical for our clients who utilize us as their off-site risk management department.

3.  We have been thinking about hiring a risk management and insurance consultant; can you give me a few more reasons why we should?

Answer:  Given the current challenging economic environment, businesses right now need to be as efficient as possible in order to remain competitive and profitable.  Corporate Risk Consulting, Inc. will assist in reducing your insurance costs and/or your total cost of risk.  In fact, in most cases, our fees are more than offset by the savings realized by our clients.

Are you not comfortable with your current insurance program? Do you feel you are missing something or possibly paying too much?  As experienced risk management and insurance consultants, we can evaluate your organizational exposures and insurance programs to ascertain whether or not you are adequately protected at a fair market cost.

Has your organization grown significantly, so that the individual who has been handling the management of the risk and insurance responsibilities now requires assistance?  As with any growing organization, there comes a time when certain responsibilities become too much for one individual to handle.  We often see this occur with risk and insurance matters.

Many times an executive member of the organization who has been handling the risk and insurance matters requires some assistance due to the increased responsibilities he or she may now be facing.  It is often these same companies that are not quite large enough to justify a full-time risk management professional on staff. In these situations Corporate Risk Consulting, Inc. can assist by providing much needed risk management and insurance services at a competitive cost less than that of a full time employee.

4.  We have had the same broker handling our insurance now for a long time; we have had no problems. Why do we now need to work with Corporate Risk Consulting, Inc.?

Answer:   We are here to assist organizations in reducing their total cost of risk, plain and simple. On the other hand, a broker’s primary function is to sell insurance products to their clients.  While one may argue that the aforementioned is not a broker’s primary function given other services possibly being provided, be aware that the sale of insurance products is always a brokerage firm’s main objective, followed by retaining the same business.

As part of a brokerage firm’s process in retaining its clients, its representatives will try to build strong relationships and/or friendships with their clients.  This is acceptable assuming the client is able to remain completely objective.  We have often seen brokers hired on and/or retained because of a relationship and not because of merit.  When a single broker relationship is driving the decisions, there tends to be little competition, and the program suffers.  Given the constant changing state of insurance markets, we recommend that insurance programs be marketed at least every other year with multiple brokers.  In utilizing multiple brokers, the insurance options available will be enhanced and the current broker will not become complacent.

Corporate Risk Consulting, Inc. is constantly looking for ways to reduce policy premiums, increase coverages, reduce and or identify organizational risks, and fill insurance gaps.  We meticulously review all insurance policies, forms, and endorsements after each renewal for errors or omissions. Once these reviews are completed, we then work directly with the insurance companies and brokers to assure that all changes and corrections are made as previously agreed upon at binding.  Typically, after policies have been issued and commissions paid, most brokers have moved on to their next client’s renewals and focus is lost on you and your policies until next renewal.  As such, we remain proactive year round, not just reactive when prompted with a question from the client or at renewal time.

In utilizing Corporate Risk Consulting, Inc. as your risk and insurance consultant, you will receive unbiased objective advice since we are only working for you, and we are only compensated by you.  We are and will remain to be completely independent of all insurance companies, agents, and brokers, thus allowing for the placement of the most comprehensive and competitively priced programs available.  In most cases, our fees are more than offset by the savings realized by our clients.   

5.  We advised our broker that we may be hiring a risk management and insurance consultant but he advised against it, saying it was not worth the money. What should we do?

If your broker is saying this or something similar, odds are he or she is not confident in what is going to be turned up when the independent firm is brought on.  We recommend that an independent risk management and insurance consultant or internal risk management professional be hired on as soon as possible.  No reputable broker should have any concerns with a risk management professional being brought on if he or she has been doing the job adequately.