New Year’s Resolutions are a tradition in many households, including mine. Establishing personal & professional goals for 2011 is something I encourage my colleagues to do as well.
By now most businesses have completed their 2011 budget, decided on capital expenditures and have somewhat of a roadmap for 2011. However, few take the opportunity to access their risk tolerance or exposure in the coming year, most stopping with the evaluation of insurance premiums and its impact on the 2011 budget.
What level of risk is your firm interested in taking this year? How strong is your balance sheet, should you have an uncovered or underinsured loss?
At Texas Associates, we proactively work with our clients to evaluate their total cost of risk, which is more than just the cost of insurance. In fact, in some cases spending money on contractual risk transfer or internal safety programs may be a better investment than just relying on an insurance policy to protect a firm.
The economic indicators for 2011 all point to growth for many industries. Having a plan to manage your total risk in this market will be essential to succeed. So did you make a list of risk resolutions for 2011? Are you comfortable that an uninsured loss can be absorbed by your anticipated cash flow?
If your agent simply brought a proposal to you and talked about the cost of insurance in 2011, without addressing your risk that is on the horizon and prioritizing your risk resolutions for 2011 give us a call. Your firm deserves more.
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