It is very popular to set up a task force for marketing projects, venture capital projects, or most any project anticipated in the future in general. Usually companies have one person designated to handle the insurance procurement. While that might seem very efficient and task oriented it might not be the best approach when it comes to getting insurance proposals. Rarely does one person have all the knowledge, expertise, and education when it comes to securing the insurance coverages that are needed for your company’s risk exposures to loss.
Setting up a task force when searching for insurance proposals can be in your best interest in the long haul. Insurance is one of the few contracts that permeate all areas of small business owners operations. The sales team when selling your products and/or services will typically incur insurance requirements before the transaction can be completed from your vendors and/or clients. Your landlord will almost always require insurance with specific verbiage that will be required in order for you to maintain your lease space. Insurance as a direct effect on your employees whether they are injured on the job or become ill and miss work for extended periods of time. Your accounting department may interface with insurance with regards to Accounts Receivable or Accounts Payable losses or claims. There can also be inventory shortages or embezzlement issues that will also interface with your insurance coverages that you have or have not in place.
So while it is very typical for companies to have an insurance person who handles the insurance coverages and placement it might not be the overall best approach for your firm. The institution of an insurance task force can be a good approach for addressing all of the coverages that your firm might need. Depending upon the size of your firm, it would make sense to have somebody from the sales department, the accounting department, the human resource department, the operational managers, and owner or partner on the insurance task force team.
Getting a clear and comprehensive picture from all departments as to your firm’s insurance needs will be a great benefit when it comes to searching out insurance proposals to meet those needs. Depending upon the type of insurance policies you’re getting, many policies have minimum premiums and are fully earned. This means you cannot easily cancel the policy and get your money back. Therefore it makes sense in the beginning of your insurance search that you’re searching and buying the correct policies to cover the insurance exposures that you have. The risk management tip of the day is to set up an insurance task force if applicable for your organization.