In recent years, the manufacturing sector has been challenged with supply chain issues, labor shortages, government-sponsored hacking, the potential for a recession, and many more. Due to certain economic and social consequences, manufacturers have been forced to look at their companies’ “Total Cost of Risk” in a completely different light.
An enterprise’s total cost of risk is the sum of an organization’s activities that relate to risk, including but not limited to:
- Direct and indirect loss costs
- Direct costs include deductibles or uncovered losses while indirect costs include loss of use, lost productivity and lost contracts due to non-fulfillment of orders
- Direct costs include deductibles or uncovered losses while indirect costs include loss of use, lost productivity and lost contracts due to non-fulfillment of orders
- Administrative costs and services
- These are office, claims and other administrative staff costs to find, implement and manage the company’s risk management systems, programs and claims incidents
- Risk control costs
- Risk control is cost measures to prevent or reduce the size of unintended losses. Money spent on risk control can greatly reduce the other three components of the total cost of risk.
- Insurance premiums, taxes and fees
- Typical insurance coverage including property, liability, workers compensation, etc.
Long gone are the days of simply trusting your insurance broker to construct insurance for your business. R&R Insurance Services’ manufacturing and distribution practice group acts as an extension of your team. Developing specific strategies to address issues such as security, cyber security, risk transfer, product liability and recall, employee wellness, claims management and your insurance program is what R&R Insurance Services has prided itself on for nearly 50 years. In our third generation of family ownership, we believe our industry experience sets us apart. We’re ready when you are! Click here to learn more.
