FAQs:

1. What is the difference between an independent risk manager and the risk management my broker/agent offers?
2. What is risk management?
3. Why is it important for a risk manager to be independent?
4. What work does an independent risk manager provide?
5. Can an independent risk manager obtain a reduction in premium?
6. How is the risk manager compensated?
7. How do I select a consultant?
8. Why should I consider American Risk Managers, Inc.?

What is the difference between an independent risk manager and the risk management my broker/agent offers?

            An independent risk manager does not sell insurance.  They are not affiliated with a brokerage firm, agent, or insurance company.  Their only point of loyalty is to their client.

A broker or agent receive commissions from insurance companies and they must protect their relationship and contract with these insurance providers, creating a dual loyalty.

What is risk management?

Risk management shows you how to identify the losses inherent to your business.  Once these loss exposures are known, you can then determine the best, most cost efficient way in which to mitigate these exposures to loss. 

You don’t always have to buy insurance to deal with potential losses.  Your risk manager will help you find other ways to handle risk, including contractual risk transfer, risk control, risk reduction or elimination, and if you need to insure, your risk manager can help you determine if you should consider a  fully insured program,  a risk retention or deductible plan, or true self insurance.

Why is it important for a risk manager to be independent?

An independent risk manager’s only point of loyalty is to their clients.  They do not receive commissions nor,are they affiliated with any insurance broker, agency, or company.  Risk Managers associated with these insurance providers cannot be complete impartial and unbiased. 

What work does an independent risk manager provide?

An independent risk manager provides valuations on your real property and completes an analysis of your assets to determine that all of your assets are covered at replacement value.  They review your policies to make certain that coverage is in place to protect you from the exposures to loss your company faces. 

They also provide audit reviews and experience modification reviews and check your insurance audits for accuracy.

Then when it is time to renew your coverage, your risk manager will draft Bid Specifications detailing the exact insurance protection you need..

When the agents/brokers present your insurance bids, your risk manager will prepare a comprehensive analysis that will give you a fair and equitable comparison of the bid received.  This gives you someone sitting on your side of the table, with in-depth, comprehensive insurance expertise and daily experience in the insurance marketplace.

Can an independent risk manager obtain a reduction in premium?

A premium reduction is usual when you have an independent risk manager representing you.  Not only is a reduction in premium important, but even more importantly is the increase in coverage you will achieve.

How is the risk manager compensated?

An independent risk manager is like having one in-house, without the overhead of an additional employee.  The cost of a risk manager is usually less than having an entry level employee on staff.

There are several ways a risk manager can be compensated.  It can be on a per project basis or it can be on a contractual basis with a set monthly fee.

How do I select a risk manager?

The first thing is to make sure that they are truly independent.  You want someone who is on your side and yours alone.  Next, ask about what they have done for their current clients and speak with some of those clients first hand to find out the benefits.

Why should I consider American Risk Managers, Inc.?