Risk Management Audits
The scope of services involved with a Program Audit typically includes:
Confer with management to learn about your organization’s current risk management strategy, its tolerance for uncertainty, internal reporting relationships, loss history and its relationships with carriers and other service providers.
Conduct an on-site survey directed at identifying and analyzing exposures to loss or liability.
Scrutinize your property/casualty insurance portfolio for validity and correctness of all provisions; examine funded retentions, leases, trust or bond indentures and other documents of importance to risk planning.
Measure current risk management methods against the exposures identified in the survey.
Examine insurance expenditures for maximum cost effectiveness.
Prepare a comprehensive written report of our findings including comments and recommendations for improvement in your program.
Featured Case Studies
Big Savings
A manufacturing client was insuring his property and inventory via a traditional property policy. When initially engaged as their Risk Manager, BMK reviewed the inventory and property values and suggested the inventory be insured elsewhere under a Marine Stock Through-put policy which could result in premium savings. Marine underwriters can frequently be more flexible and competitive when underwriting large inventory values. We held discussions with various Cargo brokers and chose one to go out to the Marine market. The result, premium savings of over $400,000 to the client!
Retro Adjustment Mistake
BMK as part of their comprehensive risk management services will review Retrospective Premium Adjustments that are calculated by insurers to adjust premium on loss senstitive programs. We reviewed a large Retro Adjustment for a Manufacturing client and discovered an error in a claim value being used in the adjustment. The claim was settled and the carrier loss run incorrectly had the claim open with a large reserve. We notified the insurer who promptly corrected the claim amount resulting in a return premium of over $100,000!
Over Insured
BMK Risk Management were engaged to perform a Risk Managament and Insurance Audit for a large Informational Technology Company. We performed an in depth review of their global property program and dfscovered they were reporting over $60 million in Business Interruption values. Most if not all Technology Companies can not afford any “down” time and have to be up and running within hours therefore have a limited Business Interruption exposure to cover continuing expenses. We were able to reduce the Business Interruption values to $10 million resulting in over $80,000 in premium savings!
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Whether you're planning a new construction project, navigating a merger or acquisition, or simply looking to optimize your risk management strategy, we're here to help. Our team of experts is ready to provide personalized solutions tailored to your specific needs. Let's discuss how we can support your project and ensure your peace of mind.