What differentiates an Independent Risk Management Consultant from other so-called "consultants"? 

Independent Risk Management Consultants do not sell insurance nor are they affiliated with firms or individuals that do. Since they work on your behalf, their recommendations are never clouded by the potential gain or loss of commission income.

Can't my insurance agent or broker provide the same services as an Independent Risk Management Consultant? 

There are many competent agents and brokers, many of whom call themselves consultants. Their primary business, however, is  insurance sales. Agency/Brokerage staff is comprised primarily of "Producers," individuals charged with putting new business on the books. These individuals do not always have the technical capabilities to solve your complex risk management problems. 

In addition, reports and recommendations from agents and brokers may be viewed as biased if those individuals have something to gain from their recommendations.

What kind of work does a Risk Management Consultant perform? 

Risk Management Consultants can be called upon to perform a wide variety of tasks. Risk Management Evaluations or Audits are among the most prevalent kinds of work. Such evaluations generally involve a review of insurable loss exposures, the adequacy of insurance protection, propriety of insurance pricing, the extent of risk retention, the effectiveness of contractual risk transfers, and the effectiveness of the risk management function within the organization. 

Consultants are often retained for special projects on an "as needed" basis. Such projects can include alternative risk financing studies, assistance with mergers and acquisitions, advice on bidding or re-marketing of insurance and preparation of specifications, cost of risk allocations and renewal  negotiations. 

Some consultants are also available to provide continuing service as your part-time insurance/risk management department. This service is often provided to firms where Management cannot devote sufficient time to risk management issues, yet the cost of staffing a risk management department is impractical. 

If I hire a Consultant, will they obtain a reduction in my premium that will offset their fees? 

Consultants who guarantee premium savings may be  skewed in their evaluation and those who base their fees on a percentage of savings may not have your best interest in mind.

Cost of insurance and cost of risk are always   issues that consultants are concerned about. Obtaining the lowest insurance pricing without regard to the potential adverse effects is dangerous. If your only concern is buying the cheapest insurance available, you probably should not retain a consultant.

Risk Management Consultants reviewing insurance programs may recommend new coverages, coverage amendments and/or increased limits, all of which may improve protection, but may also result in increased insurance costs. On the other hand, bidding your insurance to different agents and Insurance Companies and making sure that the correct information is being sent out could create large savings. Sometimes, the true benefit of retaining a consultant may not be realized for many years. It may not occur until you suffer a loss that is insured only because the consultant had identified an uninsured exposure which you subsequently insured. Sometimes the savings can be immediate if the insurance premiums are watched and the client is represented well in the insurance market place. 

Independent consultants will look at the overall program and balance cost with adequate protection.

What can I expect to pay for the services of a Risk Management Consultant?

Fees will, of course, vary by the scope of the project and are paid on a per project basis.  This puts a cap on your investment and you know what will be spent with no surprises. PRISM will sum up the requests of the client and then offer three options to the client to best fit their  wants and needs.  

How do I select the right Consultant for the job?

Independent Consultants should be selected on the basis of their professional qualifications and experience.

PRISM has been in business since 1994.  We look at the characteristics of your Business and advise you, implementing those Risk Management tools  you request. Call and set an appointment to see how we can  best fit your needs.