“Cost of
Risk” includes all of the expenses a business incurs to
treat the risks it faces – not just insurance premiums paid:
Safety, Security and Fire
Prevention Costs
PLUS
Legal Defense Costs for Uninsured
Claims
PLUS
Legal Fees to Draft Risk Transfer
Clauses in Contracts
PLUS
Uninsured Losses
PLUS
Deductibles Paid
PLUS
Program Administration Costs
PLUS
Insurance Premiums Paid
EQUALS
COST
OF
RISK
As you
can see, there’s much more to the “Cost of Risk” than the
“mere” payment of insurance premiums. The key challenge is to
work within each of these elements to control your overall “cost
of risk” – which is where we can help.
