Delaware Business Insurance Update From CNC Insurance Associates Inc. "Hey Business Owners Do You Know Your Total Cost of Risk?" 6-18-17

Most business owners have not heard of the concept of "Total Cost of Risk". Knowing this metric, however, can be vital to the success of any business. So let me explain this a little and maybe, you  will be able to use it in your business.  Every business has risk. These risks are unique and some are more common.  A business owner can buy insurance policies to cover most of these risks. The insurance industry is full of products and policies that protect businesses. The cost of the insurance you buy is the first cost to be added as part of the Total Cost of Risk.  The next cost would be the claims you have to pay out of pocket because, there was no insurance, or you had to pay a deductible, or you did not turn it in for a claim. These are called self funded losses and they are added to the Total Cost of Risk. Nowadays , every business has some sort of loss control or safety programs to reduce risks in the business. The cost to have these programs in place, and the administration to keep them up to date and monitor them,  is also part of the Total Cost of Risk. Finally if your business has been hit with fines or penalties from Federal agencies like OSHA, or if you have had breach of contract penalties in your course of business, this is also added to the total.  Taking all these cost and adding them up,  you get your Total Cost of Risk.  I have added a link below to see our video to learn more on this. Take a look, click the link. Until next time be careful out there and know your risk.
 https://youtu.be/XAhvbLcsKY8


G. Kevin Nemith, President of CNC Insurance Associates Inc. & The Business Insurance Center
Serving DE, MD, VA, NJ, & PA
www.cncinsurance.com
www.bizinsurancetv.org

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