Breaking Up Is Hard To Do
An Article By
Mike Sizemore and Michael Rosado
In 1975, and for the second time in his career Neil Sedaka recorded the hit song, “Breaking Up Is Hard to Do”. It was considered his signature song and was also recorded by other artists as well. The song is all about the break up and pain surrounding it. Remembering the good times and wishing they could come back, but in reality…no matter how hard he tries, she’s not coming back. Ever been there? You’ve come to the realization that life has changed, you’ve changed and now it’s time to move on. So what in the world does this have to do with Risk Management or Workers’ Compensation Insurance? Stay with me for a few minutes and I’ll let you know.
Welcome back for Episode 3 in our four part series on Risk Management and Workers Compensation. And as you can see by today’s title, I’ve moved from preaching to meddling just a bit. Oh, and one other quick disclaimer this close to a new year or any time for that matter, this DOES NOT include your spouse! Just wanted to be real clear on that. Now back to our topic.
I know what you’re thinking. You’ve been with this company for years. They seem to always provide good service. Heck, they send you a new calendar each year as a way to say thanks! Over the years, we’ve only filed a couple of claims, so why in the world would you consider making a change now? Why would I break up with my insurance carrier? As I said in the beginning…whether you realize it or not, you’ve changed, your business is growing, adding new staff and possibly additional product lines. So in today’s economy, now may be the best time to look closer at your options when it comes to workers’ compensation insurance.
So let’s being with…you’ve changed. Perhaps you’re in a location due to growth. The company started with just a few employees, but now there are three times that amount. And with those added staff members, your payroll has increased as well. So if you’re not having regular conversations with your broker, they may be completely unaware this has taken place. It may seem insignificant, but something as simple as adding new employees can provide discounts and benefits bringing more dollars to your bottom line. But you have to ask!
And what about your classification code? Is it still correct? Did you make some changes when adding that new product line? Did you change industries all together? Are all your employees W-2 staff or have you added on some contract labor as well? When it comes to workers’ compensation insurance, there are many things that can affect your current policy. So, you should be having meetings with your broker at least twice a year to look at your business and discuss any and all options available to you. Remember, in today’s market those changes and corrections just don’t happen, they must be intentional! For example, a change in classification codes could end up saving you thousands in premium costs. On the other hand, if your agent doesn’t know about the changes, you could get hit with a very unexpected and expensive rate increase. You need to ask yourself these questions, “Just how proactive is my current broker? Are they keeping pace with me, or only showing up at renewal time?”
And speaking about being proactive, do they have a Risk Management Department? And if so, are they involved with your insurance and risk planning? Those are skilled professionals helping you manage risk while adding untold dollars to your bottom line. Next, are you trying to keeping up with the latest in safety regulations or does your risk management team do that for you? And if you’re running into serious problems with your workers’ compensation insurance because of injured employees, what is risk management doing to help mitigate those issues for you?
Conversely, if your company has gone several years or longer with little to no activity, that’s a clear indicator your premiums need to be adjusted. Again potentially adding significant dollars to your bottom line. So if that’s the case, why not consider all options available to you? And the best option may be looking at other carriers in the market.
One of the hardest things to do is make a change. In fact, you’re already thinking of all the best excuses not to. We’ve been with them for years. We went to school together. They’re the largest agency in town. Many of my competitors use them as well. I know it may same me some money, but all those potential changes and getting to know someone new. I just don’t know if I can have that conversation with them. And the list goes on. Let me help you out a little here. I’m not saying they’re not a good company. I’m not saying they don’t have a reasonable product. And I’m not saying they haven’t helped you out in the past. What I am saying, especially in today’s market, is that you need to be looking at every option to grow and sustain your business. A partner whose sole purpose is to help grow and protect your company. Someone who will invest the time, energy and expertise to keep you moving in the right direction.
I know, because I’ve had those conversations before. With staff, suppliers, clients, the bank and even my broker. There are simply those times when you’ve moved beyond their ability to help you or you them. And trust me, they will appreciate your honesty and candor. Often times those talks ended up in a very amicable, respectful and even profitable for both parties. Yes, at times it becomes a win-win situation for everyone. But you won’t know until you begin taking a hard look at how all these issues effect your business. And you may find out that breaking up, if necessary, really isn’t that hard to do.
This article is the third in a four part series on Risk Management, Safety and Workers Compensation Insurance provided by Mike Sizemore Consulting and The Omni Insurance Agency. The contributors are Mike Sizemore, President of Mike Sizemore Consulting with over 30 years of experience in leadership, management and customer experience along with Michael Rosado, CPCU, ARM, Code Rule 59/60 Consultant, and Director of Risk Manager at the Omni Insurance Agency.
Let’s book an appointment today and discuss how we can help you succeed beginning now! Simply contact me at firstname.lastname@example.org