Certified Insurance is pleased to offer risk management services to our customers. We will take the time to complete a Risk Management Profile and review with you important items every business needs to contemplate and address, such as Business Continuation, Contract Analysis, Procedures and Safety Programs.
We will take the time to show you how some simple measures can save you money and protect your business, because “an ounce of PREVENTION is worth a pound of INSURANCE. See some of our examples below.
If you would like more information regarding our Risk Management Services please contact us.
Owner Value/Business Continuation
Brother’s Excavation, Inc thought they had done everything right. They had been in business for 25 years and built a great family business that they planned to pass to their sons. 58 year old John who was the sales person with all of the relationships passes away from cancer. 50 year old Ron that managed the office and the crews has to try to work out the financing to buy out his brother’s interest from his wife who knows nothing about the business. The negotiations breakdown and the business relationships start to have significant strain while Ron tries to keep up with the demands from both executive positions while also trying to teach his 22 year old son and John’s 25 year old son how to help with John’s position.
Brother’s Excavation, Inc had done everything right. After 25 years in business 58 year old John passes away from cancer. As the main sales person and relationship holder for the company he was difficult to replace. John’s partner and brother Ron owned a 1 million life insurance policy on John that he used to buy John’s ownership from his wife and used the remaining funds to pay for his 22 year old son and John’s 25 year old son to complete their education and buy them time to learn the business and keep the relationships that were built. The way things were handled with John’s wife and with the business solidified their family and business relationships and the extra cash influx into the business opened many new opportunities.
Everyone’s ISP, LLC has their insurance and safety procedures in place but do not have indemnification agreements and hold harmless agreements and other protective clauses in their contracts. They get sued by a large investment firm that uses their internet service because one of their towers went down during a storm and the investment firm missed a $500,000 investment timeline. The insurance company settles out of court for $100,000 and drops the Everyone’s ISP which then has to purchase their insurance from a substandard carrier at double the premium for the next 3 years and paid their E&O deductible of $10,000.
Everyone’s ISP, LLC had a full contract risk review and implimented the changes advised including indemnification agreements, hold harmless agreements and other protective clauses in their contracts. A storm drops a tower but the company has backups ready and gets the service back available within minutes. A complaint is made by an investment firm that lost valuable time on a project but when they refered them the the hold harmless agreement, indemnification agreement and Force Majeure clause in their service contract the firm backed off and also praised them for getting the service back up in time for them to still hit their timeline.
Procedures, Manuals & Programs
Custom Cabinets, Inc has insurance but no hiring or safety procedures. They have 2 large preventable workers comp losses in one year from a newly hired employee that purposely injures himself to get prescription pain killers. That causes their premium to increase 30% over the next 4 years until those losses come off their Experience Mod.
Custom Cabinets, Inc has insurance, and conducts background checks of all employees as well as random drug tests. They only hire employees with clean backgrounds and no drug issues are ever a problem for the company. As a result their products are higher quality, their people work faster, morale is higher and their insurance costs decrease over time because of their exceptional e-mod and drug program discounts.