Optimize Bottom-Line Business Growth by Managing Your TCOR

Insurance premiums are the price a business incurs to protect 4 key assets: People, Clients, Balance Sheet, and Brand Reputation. Business owners who only factor insurance premiums into their Total Cost of Risk (TCOR) may not be accounting for 100% of insurance-related expenses that directly impact the bottom line. Insurance premiums account for roughly 50% of an organization’s TCOR. Contributors to the other 50% add significant indirect and “hidden” costs that balance sheets may not account for. Businesses that understand their TCOR and commit to risk optimization can achieve competitive advantages.

What Contributes to an Organization’s Total Cost of Risk (TCOR)?

Total Cost of Risk is reflected in insurance premiums, deductibles, retention dollars, productivity losses associated with claims, claims administration expenses, revenue losses associated with business interruption, uninsured and underinsured losses, regulatory fines, legal fees, and other “hidden” costs. Risk optimization allows organizations to identify TCOR contributors and develop specific risk control strategies that drive costs down to levels that reflect organizational risk tolerances. Businesses that effectively optimize risk can see their TCOR flatten out even as revenues grow and risk exposures change!

How Do I Optimize Profits By Optimizing Business Risks?

Business risk profiling is a fundamental component of risk optimization. Your business risk profile is how insurance carriers evaluate your risk exposures against competitors for allocation of limited insurance market capacity. Increased demands for insurance drive up premiums and other costs. Improving your business risk profile is essential to driving down TCOR and ensuring favorable insurance placement. As a trusted risk advisor, Winter-Dent can guide the risk profiling and optimization process.

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As a trusted risk advisor, Winter-Dent seeks depth of client relationships by integrating our core values into the services we provide. Prevent 365 is an evergreen process that demands execution of our core values - Proactive, Continuous Learning, Transparency, We Do What We Say, Lead by Example, Vested, Other People Matter, and Pay it Forward. Driven by core values and operating under the principle of Humans Helping Humans, Winter-Dent can guide the risk optimization process for your business and reduce your Total Cost of Risk.