Jeff Hall is senior vice president and director of marketing of Aon Risk Services Inc. in Pittsburgh. He is responsible for market placement and client service, including program design, funding and administration. He has a background in risk consulting, marketing and risk management programs for major corporations.
Q. How can a company analyze the risk it faces?
You have to examine your exposures. Sit down and take an examination of your exposures and your insurance program itself to see whether it’s addressing the needs of what you’re looking for. We always try to go through a total cost of risk which includes the premiums, the risk management department, the losses if you’re on a deductible basis, the engineering risks, the IT exposures. There is an array of costs involved that need to go into your total cost of risk. Then you take a look at that and examine areas where you can improve the efficiencies in those items. Smaller companies tend to not examine their losses so much. They still have to have an eye on their losses, because if you start to have adverse losses, your premiums will go up.
Q. How can a company create a risk management plan?
You have to have sign-off from senior management. As you develop a risk management plan, there are going to be recommendations of areas to implement in the corporate picture. The selection of a broker and/or an agent is also key to the equation. I think both can augment and add to a client’s risk management plan going forward. Based on the experience of the people within that organization and the years they’ve worked with similar clients, we have the ability to benchmark tremendous amounts of data. Very key is identifying your individual exposures internally, as well.
Q. What types of insurance should companies be covered under today?
On a very generic basis, there are some certain mandatory coverages workers’ compensation and automobile coverage. More often than not, general liability and umbrella liability or excess liability are going to be requested by almost anybody you work with. Certainly, you should have property liability to insure your physical assets, business interruption coverage, directors and officers liability, and crime coverage.