Home Page Refer A Friend
  • HOME
  • GET A QUOTE
    • Instant Auto Quote
    • Instant Home Quote
    • Business Insurance
    • Business Owners (BOP) Quote Form
    • Commercial Auto Insurance Quote
    • Flood Quote Form
    • Motorcycle Insurance Quote
    • Other
    • Renters Insurance Quote
    • Recreational Vehicle Insurance Quote
    • Truck Quote Request
    • Watercraft Insurance Quote
  • CUSTOMER SERVICE
    • Auto Insurance Customer Service Forms
    • Business & Commercial Insurance Customer Service Forms
    • Flood Insurance Customer Service Forms
    • Motorcycle Insurance Customer Service Forms
    • Recreational Vehicle Insurance Customer Service Forms
    • Watercraft & Boat Insurance Customer Service Forms
  • BLOG
  • MAKE A PAYMENT
  • RESOURCES
    • Secure File Area
    • News Center
    • Insurance Glossary
    • Refer a Friend
    • Free Reports
    • Important Links
  • ABOUT US
    • About Worthington Insurance
    • Location Map
    • Employee Directory
    • Privacy Policy
  • Testimonials
  • Contact
postheader postheader postheader postheader postheader postheader
Home > Blog > What Is Your Cost Of Risk?
TUESDAY, SEPTEMBER 12, 2017

What Is Your Cost Of Risk?

A good way to truly understand your business and risk management program, is to determine your “cost of risk”. Cost of risk (COR) is a combination of business insurance premiums, retained losses, and administrative expenses.

Why is COR important?

COR can help managers better define the success of their business and insurance program. Business insurance premiums are one part of the program. By recognizing these costs, managers can plan and implement management strategies to reduce them.

Here is a good way to start the COR evaluation process:

Insurance premiums -- This would include all business insurance including workers’ compensation, bonds, and standard business insurance policies.

Retained losses -- Retained losses include any claim or cost under deductibles or uninsured losses. This can be very important.  For example, if you thought you were getting a real deal on your insurance because you bid out your insurance and saved $5,000 in premium, only to discover that the new insurance had exclusions which caused you out of pocket costs of $7,000.  Not such a good deal after all!

Administrative expenses -- These include any cost or expense associated with insurance, safety, workers’ compensation, and the management of them. For example, if you had to hire a safety trainer to help with your safety program, that would be an expense.  There may be services offered by workers’ compensation carriers that offset or reduce your administrative expenses. By accounting for these you are better able to determine the best insurance product for your business.

Commercial business insurance is an important aspect of any business that cannot be ignored especially if the business premises are leased or rented. Whatever your commercial insurance needs, we can design a protection program that is right for you.

Worthington Insurance specializing in competitive auto, home, contractor and business insurance as well as insurance in Philadelphia, Yardley, Morrisville, Langhorne, Newtown, Bensalem, Levittown, Bucks County and surrounding areas in Pennsylvania and New Jersey

 

 

 

Posted 11:13 AM

Tags: business insurance, bonds, commercial insurance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2020
  • 2019
  • 2018
  • 2017
  • 2016
  • 2015
  • 2014
  • 2013
  • 2012
  • 2011
  • 2010

  • business insurance(73)
  • home insurance(56)
  • commercial insurance(54)
  • personal insurance(51)
  • insurance(41)
  • auto insurance(37)
  • flood insurance(19)
  • premium savings(14)
  • bonds(11)
  • auto(10)
  • homeowners insurance(10)
  • safety(10)
  • car(6)
  • contractors insurance(5)
  • rental cars insurance(5)
  • renters insurance(4)
  • social media(4)
  • motorcycle insurance(4)
  • vacation safety(4)
  • cyber liability(4)
  • auto savings(3)
  • home(3)
  • agent(3)
  • homeowners(3)
  • cyber insurance(3)
  • holiday safety(3)
  • insurance myths(2)
  • workers compensation(2)
  • cars(2)
  • umbrella insurance(2)
  • claims(2)
  • premiums(2)
  • rv insurance(2)
  • myths(2)
  • rates(2)
  • house(2)
  • pa(2)
  • identity theft(2)
  • flood(2)
  • philadelphia(2)
  • auto accident(2)
  • claim(2)
  • work comp(2)
  • boat insurance(2)
  • risk(2)
  • home safety(2)
  • tips(2)
  • life insurance(2)
  • policy(2)
  • business(1)

View Mobile Version
 
  • Travelers
  • Hartford
  • Safeco
  • Metlife
  • Progressive
  • Westfield
  • Chubb
 

HOME PAGE ABOUT US GET A QUOTE REFER A FRIEND CONTACT US

41 University Dr Suite 400 | Newtown, PA 19067 | Phone: 215-493-4170


Logo
Powered by Insurance Website Builder
Social Facebook LinkedIn Blog Google Plus