Insurance Risk Management

       To stay profitable, businesses really need to have a firm understanding of their insurance portfolios. For many, insurance is just another cost-of-doing business. For successful businesses, the art and science of using insurance to the business’ best interest is called insurance risk management.
       Insurance policies are expensive. We view certain insurance policies as a ‘profit center’ for insurance companies. Policies paid for and not used ultimately mean profit for the insurance company. Claims that should be paid but were not tendered to the carrier equal profit for the insurance company. Claims that pay out less than their worth also means more profit for the insurance company. With that in mind, the team at Prosperous Law Group meticulously crafts different strategies to maximizing the usage of insurance that the clients have while minimizing the risks of loss as well as reducing out-of-pocket expenses. Today, more than ever, it is vitally important to have a comprehensive plan on how to utilize insurance policies. Our firm is on the forefront of insurance risk management, particularly for the construction industry, as to how to protect the subcontractors from being victimized for insurance benefits.
Our law team has extensive expertise working with Self-Insured Retentions (SIR) and deductibles to the clients’ benefits. The firm uses proven strategies to cherry-pick select insurance policies to use in order to get the most bang for the client’s buck. Often, choosing one insurance policy vs. another can mean the difference between having the client’s insurance rate increase or not. This depends on the client’s insurance claims history and the carrier’s looks back calculation when it determines what the following years’ insurance offered rate. In other scenarios, we may advise the client not to tap into their insurance when their deductible is not much more than what it costs to resolve the claim. The bottom line question is: whether or not using the insurance serves the client’s best interests in the short run or the long run.
       It helps to view insurance policies and insurance carriers as viable living entities that will fight vigorously to defend themselves and protect their own self interests and not ‘pay-out’ without good cause. We also advise that as long as the client understands the insurance policy’s reason-for-being (profit motive), its intricate composition, its behavior in comparison with other insurance policies, and the multiples rules and regulations dictating how insurance companies can interact with their customers, only then can the client fully harness the energy and power of the insurance policy for the client’s best interest. Once that process is understood and managed, the benefits of the insurance policy are multiplied exponentially.

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