I thought this was a clever commercial. Travelers is a good company that does a great job with their advertising. I liked this commercial because every person has prized posessions in their life that they spend almost every waking hour thinking and worrying about. Insurance is a good way to protect the things you value. Hope you enjoy the video!
Wednesday, September 29, 2010
Thursday, September 23, 2010
When Reputation Is At Stake
As a business owner, how often do you think "what would I say if I was the one on the news or the one being interviewed because my company did something wrong?"
This is definitely something to think about. An insurance company can respond by paying claims and helping to rebuild but they won't stand in for you when there is a crisis and the media wants information. What if one of your workers ignored certain warnings and started a fire that burnt down another business or someone's home? What if your product didn't do what it was supposed to do and someone gets hurt? What if one of your workers wasn't trained properly and was injured on the job? Who will be the spokesperson for your company?
There are what if's that apply to every business and it might be worth some time to occasionally consider what they are in your business and how you would respond to them. A reputation can be killed because someone is unprepared to speak up in the event of a crisis and they do it anyway. I found the article below in the Wall Street Journal and thought it was worth sharing.
Warren Buffett famously said that a reputation takes twenty years to build and five minutes to ruin, and that notion is truer today than ever before. Many executives consider their enterprise’s reputation to be their most valuable intangible asset, even more than intellectual property.
And why not? Manufacturers, food processors, retailers, energy companies, service firms: All have a reputation to uphold to their clients, their internal stakeholders and a public that passes judgment on their daily behavior. Every year, we see a major firm suffer a serious test to its reputation. Some fare better than others, riding through an operational setback or public embarrassment with relatively little lasting reputational damage, while others lose customer confidence, strategic partners and market share. The difference is having a good reputational risk management program in place, but this is easier said than done.
A few points to consider:
Embrace enterprise risk management (ERM). Managing a firm’s reputation does not rest with any single department or team, but with the entire enterprise. Any function of the company can impact the overall reputation positively or negatively, whether it is maintaining operational standards, behaving appropriately to meet regulatory expectations or working across departmental lines to ensure that no risk goes unnoticed. In times of reputational crisis, even if certain departments take the lead on handling the situation, everyone in the enterprise has a vested interest in making sure the company’s standing with the public and its stakeholders survives intact.
Have a crisis team in place. A reputation in crisis needs immediate triage by a team that knows exactly what to do and can spring into action the moment it is needed. Typically, this falls to corporate communications, legal counsel and the executive leadership, but in reality, representatives from every element of the enterprise should be represented. Once the plan is designed, it does no good for it to collect dust until the moment of truth. The plan should be rehearsed at least once a year. The more authentic the exercise is, the better.
Engage the media. In many cases, the media will make or break a reputation under fire. This includes traditional media outlets, but also the blogosphere, Twitter feeds and social networking. The key is providing access quickly and in such a way that provides actual content and insight to the situation at hand, rather than pat answers and spin. A contrived response is nearly as bad as no response at all. Bear in mind that the need for fresh content will be intense, especially during the first 48 hours of the crisis. There should also be a continuing plan for media outreach strategies to carry through the first week and first month. Even after the initial media blitz, there will still be opportunities to contribute to the story and to help deliver a happy ending for it. It goes without saying that for many firms, having a friendly and open relationship with the media beforehand can be key in helping engage those same sources when it is needed most.
Make the required sacrifices. Depending on the nature of the reputational crisis, doing what is needed to fix it — including purchasing media time and space — can be extremely costly, especially in the case of a product recall or product tampering situation or in a case where any kind of refund is involved. Do not fixate on these costs; consider them a down payment on the reputation’s rescue effort.
Be a leader first, and a manager second. Executive leadership everywhere is expected by the public to take personal responsibility for their firms’ shortcomings, and this is especially true when a reputation is in crisis. Having executive leaders get out in front of the story and engage the public in a meaningful way is critical. Make sure they are comfortable in front of a camera and under fire from an interviewer. History is replete with gun-shy chief executives who look uncomfortable on camera, which only makes the situation worse. Overall, there needs to be a genuine sense of contrition and a willingness to address the crisis: False sincerity or an attempt to shift blame by the top leadership of a firm in trouble will always compound its reputational problems. Be the leader the public expects and deserves.
Know when to get help. Some firms have reputation problems that are more chronic in nature, or their reputational crisis is more significant than first imagined. In such cases, it always pays to know the firm’s limitations and bring in outside branding experts who can help salve a reputational wound and get the enterprise back in good standing with its most important stakeholders.
This is definitely something to think about. An insurance company can respond by paying claims and helping to rebuild but they won't stand in for you when there is a crisis and the media wants information. What if one of your workers ignored certain warnings and started a fire that burnt down another business or someone's home? What if your product didn't do what it was supposed to do and someone gets hurt? What if one of your workers wasn't trained properly and was injured on the job? Who will be the spokesperson for your company?
There are what if's that apply to every business and it might be worth some time to occasionally consider what they are in your business and how you would respond to them. A reputation can be killed because someone is unprepared to speak up in the event of a crisis and they do it anyway. I found the article below in the Wall Street Journal and thought it was worth sharing.
When Reputation is at Stake
Managing Reputational Risk in an Age of Accountability
By Bill CoffinWarren Buffett famously said that a reputation takes twenty years to build and five minutes to ruin, and that notion is truer today than ever before. Many executives consider their enterprise’s reputation to be their most valuable intangible asset, even more than intellectual property.
And why not? Manufacturers, food processors, retailers, energy companies, service firms: All have a reputation to uphold to their clients, their internal stakeholders and a public that passes judgment on their daily behavior. Every year, we see a major firm suffer a serious test to its reputation. Some fare better than others, riding through an operational setback or public embarrassment with relatively little lasting reputational damage, while others lose customer confidence, strategic partners and market share. The difference is having a good reputational risk management program in place, but this is easier said than done.
A few points to consider:
Embrace enterprise risk management (ERM). Managing a firm’s reputation does not rest with any single department or team, but with the entire enterprise. Any function of the company can impact the overall reputation positively or negatively, whether it is maintaining operational standards, behaving appropriately to meet regulatory expectations or working across departmental lines to ensure that no risk goes unnoticed. In times of reputational crisis, even if certain departments take the lead on handling the situation, everyone in the enterprise has a vested interest in making sure the company’s standing with the public and its stakeholders survives intact.
Have a crisis team in place. A reputation in crisis needs immediate triage by a team that knows exactly what to do and can spring into action the moment it is needed. Typically, this falls to corporate communications, legal counsel and the executive leadership, but in reality, representatives from every element of the enterprise should be represented. Once the plan is designed, it does no good for it to collect dust until the moment of truth. The plan should be rehearsed at least once a year. The more authentic the exercise is, the better.
Engage the media. In many cases, the media will make or break a reputation under fire. This includes traditional media outlets, but also the blogosphere, Twitter feeds and social networking. The key is providing access quickly and in such a way that provides actual content and insight to the situation at hand, rather than pat answers and spin. A contrived response is nearly as bad as no response at all. Bear in mind that the need for fresh content will be intense, especially during the first 48 hours of the crisis. There should also be a continuing plan for media outreach strategies to carry through the first week and first month. Even after the initial media blitz, there will still be opportunities to contribute to the story and to help deliver a happy ending for it. It goes without saying that for many firms, having a friendly and open relationship with the media beforehand can be key in helping engage those same sources when it is needed most.
Make the required sacrifices. Depending on the nature of the reputational crisis, doing what is needed to fix it — including purchasing media time and space — can be extremely costly, especially in the case of a product recall or product tampering situation or in a case where any kind of refund is involved. Do not fixate on these costs; consider them a down payment on the reputation’s rescue effort.
Be a leader first, and a manager second. Executive leadership everywhere is expected by the public to take personal responsibility for their firms’ shortcomings, and this is especially true when a reputation is in crisis. Having executive leaders get out in front of the story and engage the public in a meaningful way is critical. Make sure they are comfortable in front of a camera and under fire from an interviewer. History is replete with gun-shy chief executives who look uncomfortable on camera, which only makes the situation worse. Overall, there needs to be a genuine sense of contrition and a willingness to address the crisis: False sincerity or an attempt to shift blame by the top leadership of a firm in trouble will always compound its reputational problems. Be the leader the public expects and deserves.
Know when to get help. Some firms have reputation problems that are more chronic in nature, or their reputational crisis is more significant than first imagined. In such cases, it always pays to know the firm’s limitations and bring in outside branding experts who can help salve a reputational wound and get the enterprise back in good standing with its most important stakeholders.
Monday, September 20, 2010
Commercial Property
I was lucky enough to be able to spend the last half of last week in a Commercial Property insurance course and just wanted to address some issues that some of you might find to be of value.
1. Now days, some Agents are looking for an easy way out and writing business on a Business Owners Policy for those types of business that can fit under this form of insurance. Basically, it was originally designed for small businesses to give property and general liability coverage with some built in features that make it easy to manage. It is usually a less expensive way to get some great coverage. Well, since the insurance market has become so competitive over the past couple years, many companies have expanded their guidelines to write this type of policy for larger businesses. Sometimes up to $20m in sales. While there is generally nothing wrong with the policy, it can be very limiting in coverage if it is not endorsed correctly for the needs of your business. In other words, if the agent doesn't take the time to find out what limits and coverages you need, then you are getting coverage limits designed for small business which might not meet your needs even though you fit into the program.
2. Do you know what types of claims are excluded from your commercial property insurance? Standard policy forms generally exclude the following:
Earthquake, Flood, Property Away From Premise, Property of Others in your Care, Custody, or Control, Ordinance or Law, Vacancy (certain exclusions along with penalties for properties vacant >60 days), Employee Dishonesty, etc.
The reason for most exclusions on the commercial property forms is because there is generally a different policy designed to cover these items which requires its own specific underwriting. There can be big differences in the insurance companies policy forms as far as what they include and what has been removed from the policy. For price shoppers, this is really something to consider because with insurance as with most anything else, you usually get what you pay for. Insurance rates are down significantly so if your premiums are down, don't assume that you are losing coverage- that is not my point here. More than anything, if your looking for a better price, BE CAREFUL. A good quote that has to do with comparing your insurance (or anything else for that matter) solely on price:
It’s Unwise to pay too much…
But it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better.
- John Ruskin
Remember, the best way for me to do my job is to know your business. A couple hours spent every six months or one year along with constant communication about changes, operations, etc. will go along way in helping me do my job as an insurance agent. Additionally, this is why a long-term business relationship with your insurance agent can be valuable to you. Let's spend more time talking about your exposures and what types of policy options we can provide you with to meet your needs. Keep in mind that not all risks are going to be worth it to you to transfer to an insurance company, but you ought to have the information so you can make those decisions as an Owner or Executive.
1. Now days, some Agents are looking for an easy way out and writing business on a Business Owners Policy for those types of business that can fit under this form of insurance. Basically, it was originally designed for small businesses to give property and general liability coverage with some built in features that make it easy to manage. It is usually a less expensive way to get some great coverage. Well, since the insurance market has become so competitive over the past couple years, many companies have expanded their guidelines to write this type of policy for larger businesses. Sometimes up to $20m in sales. While there is generally nothing wrong with the policy, it can be very limiting in coverage if it is not endorsed correctly for the needs of your business. In other words, if the agent doesn't take the time to find out what limits and coverages you need, then you are getting coverage limits designed for small business which might not meet your needs even though you fit into the program.
2. Do you know what types of claims are excluded from your commercial property insurance? Standard policy forms generally exclude the following:
Earthquake, Flood, Property Away From Premise, Property of Others in your Care, Custody, or Control, Ordinance or Law, Vacancy (certain exclusions along with penalties for properties vacant >60 days), Employee Dishonesty, etc.
The reason for most exclusions on the commercial property forms is because there is generally a different policy designed to cover these items which requires its own specific underwriting. There can be big differences in the insurance companies policy forms as far as what they include and what has been removed from the policy. For price shoppers, this is really something to consider because with insurance as with most anything else, you usually get what you pay for. Insurance rates are down significantly so if your premiums are down, don't assume that you are losing coverage- that is not my point here. More than anything, if your looking for a better price, BE CAREFUL. A good quote that has to do with comparing your insurance (or anything else for that matter) solely on price:
It’s Unwise to pay too much…
But it’s worse to pay too little. When you pay too much, you lose a little money – that is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better.
- John Ruskin
Remember, the best way for me to do my job is to know your business. A couple hours spent every six months or one year along with constant communication about changes, operations, etc. will go along way in helping me do my job as an insurance agent. Additionally, this is why a long-term business relationship with your insurance agent can be valuable to you. Let's spend more time talking about your exposures and what types of policy options we can provide you with to meet your needs. Keep in mind that not all risks are going to be worth it to you to transfer to an insurance company, but you ought to have the information so you can make those decisions as an Owner or Executive.
Monday, September 13, 2010
Common Insurance Myths
“It’s better to pay small liability claims out-of-pocket rather than report them to the insurance carrier.”
“Statute does not require me to have workers’ compensation, thus you (a higher tier contractor) can’t require it either.”
“I pay him with a 1099. He’s an independent contractor, not an employee.”
“If a workers’ compensation injury is less than a certain amount, I do not have to report it to the insurance company.”
“Flood insurance is only for those in ‘flood zones.’
“If I don’t have anything, they can’t get blood out of a turnip.”
“There is no need to purchase liability limits higher than my net worth.”
“That’s why I buy insurance (no need to implement risk management or loss controls).”
“Corporate status will protect me from liability, I’ll just declare bankruptcy and shut down.”
“Insurance is all the same.”
For more info on these myths read the article here....http://www.mynewmarkets.com/articles/103193/insurance-lies-clients-believe-and-pass-on-to-others
“Statute does not require me to have workers’ compensation, thus you (a higher tier contractor) can’t require it either.”
“I pay him with a 1099. He’s an independent contractor, not an employee.”
“If a workers’ compensation injury is less than a certain amount, I do not have to report it to the insurance company.”
“Flood insurance is only for those in ‘flood zones.’
“If I don’t have anything, they can’t get blood out of a turnip.”
“There is no need to purchase liability limits higher than my net worth.”
“That’s why I buy insurance (no need to implement risk management or loss controls).”
“Corporate status will protect me from liability, I’ll just declare bankruptcy and shut down.”
“Insurance is all the same.”
For more info on these myths read the article here....http://www.mynewmarkets.com/articles/103193/insurance-lies-clients-believe-and-pass-on-to-others
Wednesday, September 1, 2010
What Can A Soft Insurance Market Do For YOU?
For several years now the Insurance Industry has been pushing through a Soft Market. Cycles of growth and decline exist within every industry. In the Insurance world, the soft market is a period marked by low premiums, shrinking profits, high capital base, and fierce competition. For now, we are not seeing any indication of entering into a Hard Market which normally follows. From the Insurance Journal, "Abundant capacity coupled with diminished demand keeps downward pressure on rates. As things now stand, insurance buyers can anticipate another year of favorable insurance prices, although catastrophe claims are always a wild card in the pricing cycle." A widescale catastrophe can cause underwriting standards to become more rigid which causes premiums and profits to increase while competition loosens.
So what can a soft insurance market do for you? The soft market is a very beneficial time for consumers because it is ideal for finding the lowest rates and best coverage on most lines of insurance. This means that now is a great time to be buying insurance! I faithfully market every client's insurance program about 90 days ahead of renewal time because I realize there is alot of competition out there between agents and also insurance companies and now is a good time to find lower rates and better coverage for you! The recession has drawn out the soft market and will likely continue to do so as far as I can see.
I hope this is a beneficial brief look for you of the Insurance industry. Some agents complain about diminishing volume, heavy competition, and losing business. I however see this as a great opportunity to save my clients some money and improve their insurance program; and when the market turns I will continue to do my best at saving money for my clients while finding the best coverage available in the marketplace. Because of these fluctuations, I would rarely if ever allow my clients insurance policy to renew without approaching several markets to be sure we are getting competitive rates and coverage.
So what can a soft insurance market do for you? The soft market is a very beneficial time for consumers because it is ideal for finding the lowest rates and best coverage on most lines of insurance. This means that now is a great time to be buying insurance! I faithfully market every client's insurance program about 90 days ahead of renewal time because I realize there is alot of competition out there between agents and also insurance companies and now is a good time to find lower rates and better coverage for you! The recession has drawn out the soft market and will likely continue to do so as far as I can see.
I hope this is a beneficial brief look for you of the Insurance industry. Some agents complain about diminishing volume, heavy competition, and losing business. I however see this as a great opportunity to save my clients some money and improve their insurance program; and when the market turns I will continue to do my best at saving money for my clients while finding the best coverage available in the marketplace. Because of these fluctuations, I would rarely if ever allow my clients insurance policy to renew without approaching several markets to be sure we are getting competitive rates and coverage.
Subscribe to:
Posts (Atom)