Look, I love it when people tell me they’re happy with what they’re paying for insurance. That tells me they don’t understand their total cost of risk. If you let that objection get in your way, you got a lot to learn and a long way to go.
Another objection that you may get when you’re reaching out to new prospects is, “I’m happy with what I’m paying right now.” Really? Are you? Let me ask you a question. Has anybody ever come in and done a total cost of risk calculation for your organization? Oh, no, they haven’t?
See, this is a common trap that we find many business owners and decision-makers get into because they’re focused on the premium. They concentrate on the price of a product, and they don’t realize the actual problem. When we engage with a company, we come in, and we do a calculation for the total cost of risk, and that includes many things that you don’t even realize are leaking from your financial statements right now. Just a quick example for you is indirect costs to claims. Did you know that the Bureau of Labor Statistics says that for every dollar spent on direct costs inside of a worker’s compensation claim, that the indirect costs associated with that claim across the general industry nationwide is between two and 20 times the direct cost?
So you might be entirely happy with your premium. Quite honestly, in a guaranteed cost workers’ compensation program, that would make sense. You don’t feel the pain of claims until your mod goes up, and then subsequently, you get a Consent to Rate, or you get a debited rate, depending on what state you’re in, as a result of your performance. See, there’s a lag there. One of the things that you gain by being proactive and focusing on the total cost of risk is that you’re looking at way more than just what you’re paying in insurance premiums. Insurance premium is undoubtedly important, and it’s certainly a component of the total cost of risk, but it’s only one of five things that affect that. And if you only focus on one of five, which is 20% of the calculation, you’re missing out on 80%. Flip the script.
I’d love to have the opportunity to come in and talk to you about the other 80%. We can talk about insurance later.  I’m not an insurance salesman; I’m a risk manager. I would highly recommend that if you’ve not had this done in the past, we spend 20, 30 minutes talking about it. And I can assure you; you’re going to see things that you didn’t realize were happening. It’s just the nature of the beast. It’s what we do.
Yes, I realize my message is different. Yes, I know you’re used to people coming in and selling you something or trying to sell you something. And yes, I realize that you’ve already in your mind lumped me into that same category, assuming that’s what I’m going to do. It’s not. That’s not how we operate. You have my word that I’m not going to try and sell you anything. I’m merely asking for 30 minutes of your time to show you why you shouldn’t be happy with what you’re currently paying right now.
I am back in the saddle now that I’m off the road, and this content is going to come to you fast and furious. Today
5 Ways to Get in Front of Your Ideal Prospect In the world of sales and business development, finding innovative ways to connect with your
When it comes to insurance coverage, many business owners overlook the importance of third-party EPLI (Employment Practices Liability Insurance). In this blog post, we will
We all have choices, as do our clients and prospects. Having deep roots in customer service, I am still a student of the game at
There are five things that we at Florida Risk Partners do for our clients from an HR perspective. You can be doing them too! One
Producers, it’s that time of year again when things are starting to wind down, which means you need to ramp up. As producers, we must
Please confirm you want to block this member.
You will no longer be able to:
Please note: This action will also remove this member from your connections and send a report to the site admin. Please allow a few minutes for this process to complete.
Responses