Alberta is an oil-based economy - old news to companies currently affected by lower oil prices. The current crisis in the economy forces companies to focus on preserving their viability, organizations directly involved in exploration and production, to support resource development construction industry and manufacturing
We've been here before. Some companies overcome this crisis with manageable impacts their organizations, while others find their positions more difficult to maintain. The difference between these results may depend on the extent to which businesses take advantage of all existing opportunities and necessary to review their activities and maximize the effectiveness of their expenditures.
Fortunately, a number of specific measures are available to manage insurance costs:
- Examine your income with your insurance broker :. request your broker to change the revenue estimates immediately rather than wait for your renewal cycle to come around
- Add your operations with your broker to find opportunities to improve your coverage and structure bonus: suspend operations for which specific coverage was required can help you reduce the premiums associated during the recession. Reducing the scope of your operations, including the suspension of services or avoid international operations, can reduce the level of risk your business presents to the insurer - the opening of options to reduce your current premiums, or tackle new insurers that might be a better fit for your revised strategy
- review your active contracts: .. you might be able to cut your expenses premium taking into account the reductions under the existing contracts or cancellation of contracts where a specific coverage has been purchased
- update your equipment list and the property of schedule: removing items that have been eliminated or you would not be replaced if lost. Make sure your property is properly valued to reflect its current value or replacement cost
- Determine what equipment you use and how it is on :. If you parked, stacked or set up a significant amount of your insured equipment, your dealer may be able to take advantage of this limited use to obtain favorable rates more closely tailored to your current exposure.
- Make sure the broker is aware of all the safety measures that reduce exposure of the insurer and could get reduced rates: security systems, patrol, protection against fires, fencing, CCTV and GPS systems are examples of measures that can work to your advantage
- review your schedule conductors :. you can help ensure accurate pricing by removing the drivers that your equipment is working and managing drivers whose past performance can affect your premium
- Review your deductibles :. always keep the franchises within your risk tolerance while ensuring that you consider and benefit from premium reductions that can be achieved by selecting the amounts higher deductible
- Attach a valuation of your property. if an assessment has not been conducted recently, your values may be updated. Over-insured property can cost unjustified premiums, while property underinsured can cost you even more if lost - affecting your cash flow due to unbudgeted expenses and gaps in coverage. Make sure your policy limits are precisely tailored to your current and anticipated future needs
- Explore the premium financing options :. Your dealer may be able to offer financing options that reduce the immediate budgetary impact of your insurance portfolio, while keeping. cost of finance within an acceptable range for you
other creative business strategies may exist to improve your survival managing costs:
- Revisit your supplier contracts: you ensure 're getting the best value for your dollar. Utilities and telecommunications companies offer deals at a fixed rate that can help you manage and plan future expenses; they also have some variable costs, so it is in their interest to retain as many customers as possible. If your current provider does not fold, look for innovative solutions from competing suppliers
- Review your benefits plan and pay structure. This is an opportunity for public and private companies to engage stakeholders in the development of solutions and ways to share the load
- proactively manage your costs in human capital :. minimize your future rehiring and retraining expenses preserving employment of as many staff as possible. Consider launching involuntary rotation of unpaid leave programs, or using vacation time earned in lieu of unpaid leave
Remember that the difficult economic climate presents unique challenges - . Not only for you but also your competitors. Although a slowdown, adjust your perspective and focus your operations, it is also an opportunity to tighten your budget and maximize efficiency to survive the competition and be lean and ready for the next boom.
insurance program
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