Bottom Line: The traditional insurance market has been designed to increase your dependency as a business owner.

Here are the key issues:

  • You aren’t rewarded when you perform well.

When you have a bad year, everyone can explain why your rates are going to go up. However, on a good year, are you receiving a share in the profits?

  • You’re paying more to play it safe.

The traditional insurance market often paints a picture that choosing any option other than being fully insured is irresponsibly risky. You could, of course, have a bad year. But the reality is that even without a deductible you’re still paying for your performance through annual rate increases.

  • Your insurance broker just wants to renew.

Most insurance brokers focus on renewing your insurance – because that’s what gets them paid. But this 12-month mindset doesn’t do anything to drive down your Cost of Risk and give you more control in the long-run.

Potential Solutions:

  • – Retrospective Rating Programs
  • – Large Deductible
  • – Cash Flow Program
  • – Risk Retention Groups