You know you have the risk. You want to purchase insurance but are nervous about the added expense that it will take to obtain these types of specialty coverages.
In a time when economic unpredictability is front and center on every news article, adding an extra expense to your business, when it seems best to cut, can be a daunting choice—especially when purchasing insurances that are above and beyond the standard property and casualty insurance for which you are used to affording. This universal trouble does not make insurance any less valuable to your immediate needs.
Say, for example, you have a key contract that purchases the goods that you provide as your business’s core service. This contract has a specialty relationship with your company and accounts for a substantial portion of your annual revenue. You are going through the process of enterprise risk management and have even added business continuity planning in case there is a disruption, such as a severing of relationship, that created an emergency contingency plan to stabilize operations in the event this disruption occurs. (future article: to learn more about contingency planning, click here) You’ve done the work, but you still want some sort of insurance safety net in case the catastrophic loss to net income does occur.
If you go to the specialty markets, you can buy this type of business interruption insurance. When you go this route, you’ll pay a hefty price on the premium, increase your business expenses in the short term, and get the peace of mind through insurance for which you might be looking. Problem solved.
But what happens if you never have an event that causes you to make a claim on the insurance policy?
This, unfortunately, is where large companies win, and small companies lose out.
Did you know certain US laws allow large companies the ability to establish risk structures helping them obtain insurance AND benefit from the underwriting profit as well?
It’s true! These large companies are able to capitalize the structures, fund them through annual premium payments, and by doing so obtain insurance covering the insurable risk of a diverse body of subsidiaries.
But what about small companies who cannot self-distribute risk like the large corporations?
What about midsize companies for that matter?
What about companies like yours that really run America?
You deserve better than the status quo.
Madison Insurance Group recognizes that all companies have enterprise risk, that all companies can benefit from enterprise risk management, and that some of those companies might want enterprise risk insurance for those pure risks where insurance applies. We also recognize that many of those companies would rather hedge their risk by dropping money in a bank account over purchasing insurance policies that they might never make a claim on. To them, insurance seems like a waste of an expense line.
With this knowledge, we have set up an already established insurance structure that allows you to get the best of both worlds. Through our program the business owner of the insured business can designate an investor to ultimately benefit from the underwriting profit of the reinsurance company. Think about that for a minute, this means that the premiums you pay for enterprise risk insurance do not get sucked into the commercial black hole.
This is a bold statement and one that you might not be familiar with, but you can learn more about it by entering this link here.
Again, this is a big decision on your part but by taking the next step to learn more through our free webinar services, you will gain the knowledge you need to acquire peace of mind and preserve your legacy.
When you are ready to make that decision, we are here to help.