Steven Mosier is the co-owner of Garrett/Mosier/Griffith/Sistrunk Insurance Services. He has more than 30 years experience in the insurance industry, including seven years with an international brokerage. Mosier has extensive experience in property loss control and evaluating occupational disease exposures.
Q. Are companies facing different risks in the present economy?
Yes, due to the economic downturn, many companies have to do layoffs, consolidate branches or go out of business. There is risk associated with each of these situations. A client may have a layoff and get a post-termination workers’ compensation claim, or an employee says they were discriminated against when they were discharged. When people feel desperate, there may be employee theft issues. If a business is consolidating their operations, they may have a vacant building that could be subject to vandalism.
Q. How can a company manage risk?
When it comes to managing risk, there are three principles to consider. The first is you could avoid the risk by possibly shutting down different operations that aren’t as profitable. Next, you could transfer the risk, which is what a lot of businesses choose to do through insurance policies. Third, you could assume the risk by self-insuring or other measures, such as taking a higher deductible. This reduces the cost but may not manage the risk as well as other options.
Q. What are ways to save money on risk management?
The key is to have a proactive safety department and prevent a claim from occurring. A business needs to analyze the risk associated with a new product or project prior to beginning work. When a company is looking to cut costs, generally the first to go are the safety people. If a company chooses to do so, the management must be committed to safety and risk management to maintain the current safety environment. Also to save costs, a business could take on higher deductibles and reduce coverage. However, they may expose themselves to a catastrophic loss. A company should be aware of various levels of coverage and use that information to make an educated decision on how they will manage their risks.