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June 19, 2012


Over my thirty nine years as a risk manager and risk management consultant (in addition to my past sixteen years as an attorney) I have learned that when a company has a long harmonious relationship with their broker the company may feel that the broker is part of the corporate family, and as part of the corporate family may not be able to render a truly impartial, objective verdict on the insurance programs. As a matter of fact, I have had agents and brokers recommend the use of an independent consultant to either get a fresh slant on a problem or opportunity, or to get an endorsement or critique on the way the broker is handling the program so that the brokers recommendations can be validated or improved upon.

That is why insurance and risk management audits are performed by individuals such as myself or companies that are engaged exclusively in risk management consulting activities.

An independent risk management consultant does not steer programs to any one broker and should never taken a commission on any insurance program they recommend.

A full scale audit should:

• analyze exposures to loss and determine what risks should be eliminated, reduced, insured, self-insured or not insured at all;
• independently evaluate the effectiveness of the present insurance program in terms of the protection afforded, services provided and cost;
• consider possible alternatives such as deductibles, retrospective rating, self-insurance and other methods of improving cash flow:
• evaluate management’s attitude toward loss control and the effectiveness of current loss control programs;
• review the administration of the risk management function and insurance program;
• help establish a formal risk management policy;
• provide a written report indicating my findings and making recommendations relative to the areas that appear to be in need of attention.

The information required by a risk management consultant will include information related to:

• corporate structure – subsidiaries, divisions, etc.
• structure of management – scope of responsibility, authority, etc.
• management philosophies, polices, procedures, etc.
• risk management policy
• types of operations other than hotels if they exist
• significant events involving risk management in recent years
• loss prevention programs
• loss control programs
• prior loss experience – insured and uninsured
• copies of contracts affecting risk management
• administration of the risk management function.

In addition a risk management consultant will need copies of all current insurance policies, endorsements, pertinent correspondence, rating plans, premium adjustments, etc.

The Law Offices of Lawrence H. Nemirow can provide risk management audits for legal or insurance matters.

Contact me by calling 562-799-1379 or send me an email at