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My Insurance Broker arranges my coverage for me. Why do I need a Risk Management Consultant?
Insurance Brokers are professionals licensed by the Department of Insurance to sell insurance products. It is not in their financial interest to recommend a non-insurance option to treat a client’s exposure. Some of the larger brokerage firms offer risk management services, but they are ultimately linked with the sale of a product. A risk management professional will recommend the best treatment for mitigating the exposure, whether it is an insurance policy or a non-insurance solution. At CMS Risk & Insurance Consulting, our loyalty lies with our Client. We will explore and recommend the best solution for treating the exposure, and we will leave no options on the table.
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Can CMS save me money on my insurance policies?
Maybe, maybe not. Our focus will be on making sure that we provide our clients with sound professional advice and counsel on insurance and risk exposure issues to their business. After our analysis, we may find that the Client’s current program is inadequate and we may recommend additional coverages. It would be unethical for us to claim that CMS can save you money until we complete an analysis and understand the current state of the Client’s program.
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We always have an Attorney look at contracts before they’re signed. Why do we need a contract risk analysis?
Attorneys do a great job of making sure that agreements are enforceable and within the law. But it is not usually within their scope to determine whether a provision is covered under the Client’s insurance policy. CMS Risk & Insurance Consulting will review the agreement and make recommendations on uninsurable language or language that imposes obligations on the client that he or she doesn’t have the financial resources to accept.
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We’ve had relationships with our Contractors and Suppliers for a very long time. Why do we need to get an insurance certificate from them?
It’s important to view all of the insurance products that you have as assets. Their value is the insurance company’s promise to pay claims on your behalf. When contractors or suppliers provide goods or services in exchange for your payment, they should be responsible for any claim that is derived from the good or service. As your business partner, CMS Risk & Insurance Consulting will assist you with making sure that the responsible party pays for claims arising from their operation. Your policy should only be exposed when the event arises from your operations. Remember, when you expose your policy, the insurer will reward you with higher premiums.
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How do you justify the cost of implementing a Loss Prevention program?
The investment to implement loss control measures generally begins to pay returns after a few renewal cycles. Potential savings can range from premium credits offered by insurers, to the reduction in the cost of claims. Often the decision to implement loss control measures comes down to the costs of doing nothing. These costs include rising insurance premiums, loss in productivity, and damage to the business reputation and/or market share.
Frequently Asked Questions