lnspect your protection

By Lenelle Duecker TriWest Insurance Services Sherman Oaks. Ca.

well protected. Your c.f.o. is trained in finance. not insurance. All the more reason for you to understand your exposures, the optional protection devices available, and then select using your perspective as well as his. Every owner we've met knows more about insurance than he initially gives himself credit for. Plus, his perspective is unique, and can have a beneficial impact on critical decisions. Without that, the process of protection suffers.

A controller recently said, "The owner doesn't like insurance. He doesn't believe in products liability." Maybe he doesn't, but the courts do! From a brief glance at their program I knew he could buy products coverage for the same cost, or less, than his fleets' physical damage premium. When I quote, I will recommend he buy products and "self-insure" on the auto portion. He had a good track record there, so how much could his business suffer? Not much more than market value on one unit. But the cost of an uncovered lawsuit, dragging on for years? Just add up the attorney fees alone. Now, if he rejects it, it will be a reasoned business decision, not an emotional one.

Take this test: how manY of these common insurance terms can You define (answers at end of article) and relate to your assets? Can you confirm they are in your program? Do you know their cost?

EBL, EPL, ' EDP. EAP, . B&M, DOC, ' EQSL, . BI/EE, NO CO, . SIR, . Contingent BI, and . Extended Period of Indemnity. When was the last time you and your buyer had a full exposure analysis, coverage audit or property valuation? Once done, you may be shocked at uncovered exposures, then relieved by the cost of doing it right versus just doing it. After the initial effort, yearly updating is routine.

The best time to analyze security is not after the theft. Ditto an insurance program. You have probably spent more hours debating the merits of a new phone system or copier than You do protecting your assets.

Add to "What is your business worth?" the question "How well have you protected it?" Your true value is how you weather the adversity which could strike tonight. Isn't that the reason you buy this "stuff'? Don't waste money on the wrong Products. Upgrade your knowledge, get personally involved, and really work with your c.f.o., just like you do on any other key financial decision.

- Definitions: EBL (Employee Benefit Liability), EPL ( Employee Practices Liability), EDP (Electronic Data Processing), EAP (Enployee Assistance Plan), B&M (Boiler & Machinery), DOC (Drive Other Car), EQSL (Earthquake Sprinkler Leakage ), B I/EE ( Business Income/Extra Expense), NO CO (No CoInsurance), SIR (Self Insured Retention), Contingent BI (Business Income).