Frequently Asked Questions
What is the difference between Premier Risk and my insurance broker?
The biggest difference is that Premier Risk Management does not sell any insurance products and are not associated with any insurance firm or people who sell insurance. Therefore, the advice, recommendations and solutions we present to clients are completely objective with no conflict of interest. Organizations turn to an agent/broker to purchase insurance products. Organizations turn to Premier Risk to obtain unbiased, independent, thorough determination of their insurance needs. An insurance agent/broker is paid by the insurance company for the products that they sell, often in the form of commissions and/or over-rides. Premier Risk is paid directly by the client.
Doesn’t my insurance broker essentially do what you do?
No. A good broker will understand the detail behind your business, and will bring you good solutions. However, a broker is balancing his/her attention to your business with attention to the insurance markets. After all, you expect them to present you with thorough, aggressively marketed options at renewal. At Premier Risk, we can help identify new and hidden exposures, work through the internal communications and details that will help the broker provide the most solid coverage. In addition we translate insurance needs and issues between the client and the broker as well as drive down various costing components and premiums.
Are you going to make me fire my broker?
Absolutely not – we do not replace the services insurance brokers provide and we are not in conflict with insurance brokers. In fact, we look to form a team approach to better service client insurance and risk management needs. Most companies and business owners have long-standing relationships with their brokers, and these relationships are important for many reasons. Premier Risk’s priority is to provide clients with an independent, unbiased viewpoint on the overall effectiveness (cost and protection) and administration (process and procedures) of their risk management program. By taking this approach, Premier is able to facilitate communications at all levels, resolve critical issues, and develop productive team efforts to achieve positive results for their clients.
Won’t my broker be mad if I bring Premier into the mix?
Maybe, however a professional, top quality broker with the client’s best interest at hand, will welcome the opportunity to work with a consultant. The broker and the consultant speak the same language. Working together, insurance brokers and consultants engage with senior management to better manage risk for the client. Today’s economy and business environment do not allow for adversarial relationships between consultant and broker—professional cooperation with an eye toward oversight, best practices in risk management, and cost reduction results are the goal.
We are happy with our broker, why should we engage you?
Great question! Our services are directed toward the busy executive who has the responsibility for handling the insurance on behalf of their organization and is interested in covering all bases when it comes to protecting the assets of the company. They know they need to take a look at their options from a broader perspective, more strategic in nature, and with the long-term in mind. Premier helps clients take on complex problems and lead them through a process to improve their business outcomes from an insurance and risk management perspective.
There has NEVER been an engagement where Premier Risk did NOT uncover a gap or serious risk in insurance coverage. Brokers are not equipped to delve this deep into your business nor should they. It is incumbent upon the business leader to do that.
How are you compensated?
Clients pay us a fee for our services. We offer several options:
Flat Fee: geared to a long-term relationship on the basis of being engaged as an “outsourced risk management” department providing 24/7 service, which takes the burden of managing insurance off of our client’s shoulders. In addition, ongoing service ensures further cost reduction opportunities over a long period of time by continuing to work with client companies on other cost control measures, not just premium. Our retention ratio of 99% is a testament to the service, value and results we achieve year after year for our clients.
Contingency Fee Based Services: a combination of a retainer and contingency. The key is to be flexible in producing a return on investment for our clients.
Project Fee: One-time fee geared to specific work i.e. policy audit, risk assessment, claims review or similar type of work.
Risk management is an ongoing process and to effectuate long-term cost savings an insurance and risk management program must be approached in that manner.
Please contact us with any additional questions you may have 201-573-1100.