The best time to consider what to do following a major loss event is before it happens. Proper planning can minimize the stress and financial impacts of a disaster.
Hutson Resource Group often helps clients with broker selection. We can offer insights based on our history with a broker’s claim team. We can also offer a comparison of the knowledge, value, and resources of brokers who are competing for a client’s business.
Hutson Resource Group can analyze loss histories to help estimate future potential losses. By performing comprehensive risk assessments, a client can identify likely loss scenarios and estimate potential loss frequencies and severity. A thorough risk assessment is a valuable tool in determining how to best manage and finance risks.
Hutson Resource Group can assist a client’s legal experts by reviewing insurance contracts and offering insights. Hutson Resource Group can discuss the responsibilities of the insured under the existing or proposed policy, identify clauses that may negatively affect financial recovery in a loss scenario, and suggest alternative wording that counsel may wish to consider in order to clarify the coverage or to better protect the policyholder.
During a policy review, Hutson Resource Group also looks for opportunities to transfer risk contractually to customers and suppliers, leaving less exposure to an insured under the insured’s own policy. Finally, we can discuss the impact of non-insurance contractual obligations in relation to potential financial recoveries under insurance policies.
Business interruption values at risk
There is nothing more frustrating for a business than to discover after a loss occurs than that it is inadequately covered for a business interruption loss. It is equally important for a business to avoid over-insuring potential losses and paying increased premiums for losses that will never occur. That’s why Hutson Resource Group encourages all businesses to make informed decisions before a loss occurs by having a values-at-risk study done before buying or renewing a business interruption insurance policy.
A values-at-risk study will include a variety of loss scenarios. A business can use these scenarios to determine whether it has too much or not enough coverage, based on the business’s unique philosophies and tolerance for risk. A values-at-risk study allows a business to assess the impact of different waiting periods, deductibles, and sub-limits. Through a review of contingent exposures related to suppliers and customers, a business can minimize the impact of a business interruption that is outside the control of the insured.
Business continuity and disaster recovery planning
Hutson Resource Group can assist a business continuity team in creating a comprehensive disaster recovery plan. A business continuity plan will allow the business to return to operations as quickly as possible following an interruption and to minimize operational and financial disruptions. Hutson Resource Group can assist in the following areas—all identified as professional practice areas by DRI International, the institute for continuity management:
- Program initiation and management
- Risk evaluation and control
- Business impact analysis
- Business continuity strategies
- Emergency response and operations
- Business continuity plans
- Awareness and training programs
- Plan exercises, audit, and maintenance
- Crisis communications
- Coordination with external agencies