What's unique about the game show Jeopardy?  Unlike other games where you try to find the right answer, Jeopardy asks you to find the right question.  That can sometimes be tougher to do than the former.

The same is true about your risk management program.  Let's see how you do in playing Jeopardy with these questions -

1.       What you do to decrease the likelihood of an employee getting hurt.
2.       Your tolerance for risk.
3.       The amount you pay for all your risk exposures.
4.       Every two to three years.
5.       Zero.

Any guesses.

 
Okay, let's take a look at the answers.  Remember to add the words, "What is":

1.       Implement a strategic risk management policy that will train your employees to be safe on the job?

Do you have a written risk management plan and is it properly communicated to your employees?  Do you follow through on safety training or push it to the back burner when you are too busy?  I've seen too many business owners do the latter.  My guess is some of you reading this might actually do that.  Planning and follow through are key in risk management.

2.       How much money you can stand to lose in a catastrophe before you get physically sick?
 
Everyone has a flinch point.  What's yours?  How much can you stomach in lost dollars before you want your insurer to pay?  That's the amount you set your deductible at to optimize premium.
 
3.       Total Cost of Insurance?
 
Do you know what yours is?  Remember to add everything, including life insurance, medical, disability, and workers comp.  And yes, remember to include your deductible level.  That's a part of your total cost, too.
 
4.       How often should I bid my insurance?
 
When was the last time you accepted competitive bids from outside agents?  If it's over 3 years - why?  The market is still soft, which means premiums are down.  I don't expect that to last forever.  Now is a great time to see what other companies want to fight for your insurance.
 
5.       The amount your policy might pay on a loss if you're not correctly insured?
 
This happens too much.  Programming your insurance policies is more than giving you an "apples for apples" quote.  It's about sitting down and uncovering your real exposures.  It's about making sure those exposures are protected.  If you don't take this answer seriously, zero is what you might get when you least expect it!
 
Jeopardy is the right word for this little game. That's what you put yourself into if you're pushing risk management and insurance to the back burner.
 
Do yourself a favor as you head into 2009.  Pull out your policy and do a thorough review, regardless of your renewal date.  Get professional help from your agent or a consultant who understands insurance better than you.  You might even consider asking for quotes mid-term.  It's a great time to do so because you're not getting besieged with agents calling you.
 
Bottom line - get your insurance on line.  Like it or not, insurance is your key to surviving a catastrophic occurrence.  Are you willing to play Jeopardy with your life's work?
 

 

 

 

Through the rest of 2008, I have a special offer for you to "Makeover" your insurance at a deeply discounted fee. 

 

For more information and to receive your "Makeover" so you can begin saving money, click on this link.