Toledo Business Journal: Subscribe to the region's source for business news and research

Insurance Insight

As published in Toledo Business Journal - December 1, 2020

How to Protect Your Business Against an Unforeseeable Future

To an eye doctor, 20/20 translates into perfect vision, the ability to focus equally well on what's close at hand and what's far away. As a year, however, 2020 has meant anything but certainty and precise vision. Now is the time to start making defensive moves and preparing for future unpredictability.

Here are four steps the defensive organization can begin working on today.

  1. Consider Hiring a Credit Insurance Company

    2. With bankruptcies rising and more predicted ahead, it has never been more important to diversify your client base. Utilizing a credit insurance company will give you access to best-in-class credit resources and act as your credit department, saving you time and giving you top-notch resources. This will also let you know which opportunities are worth extending credit to and which ones are too risky for your tolerance.

    Michael Casey

    Michael Casey

    Vice President,
    Senior Client Executive
    Market Leader

    567.803.0103
    mcasey@oswaldcompanies.com

  2. Include Cyber Protection

    3. Paycheck Protection Program (PPP) loans are part of the federal CARES Act and have provided many companies with a lifeline and helped avoid business interruption. To provide transparency, the government has made the recipients of these loans and the amounts secured open to the public. This gives cyber criminals information they need to take advantage of companies fighting to stay open. To avoid this, put a policy in place to ensure there is a callback provision on any electronic orders to move bank account numbers or transfer money. In addition, ensure you have a cyber policy which covers “social engineering” among other common attacks. Make sure a cyber expert puts your policy together.

  3. Put a Pre-Renewal Game in Place Now

    4. Many factors continue to have an impact as insurance markets begin to harden. This will undoubtedly result in higher rates and terms that are less favorable for insurance buyers. Your pre-renewal strategy meeting and annual meetings with your underwriters need to plan for the hard market and position you as a best-in-class risk. You want to ensure there are no surprises as you forecast.

  4. Reconsider 2020 Payroll and Revenue Projections

    5. To have an immediate impact on cash flow–look to your insurance policy. At the beginning of the year, many companies estimate their payroll and revenue based on projections which have likely changed since renewal. If your broker has not called to see if you have over-forecasted, be sure to call them. Re-estimating your anticipated payroll and revenue can realize savings now when you need it most.

While 2020 has been a year for the history books, successful entrepreneurs build their business by adding value and solving complex problems.

In addition to helping our clients navigate compliance issues and communication strategies around COVID-19, we are committed to monitoring the impact on our clients’ demographics, utilization, trends, and claims. Visit OswaldCompanies.com to contact us and connect with our COVID-19 Resource Center.

This article originally appeared on www.finishandcoating.com

Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information.

OC_1950