Scenario: During a board of directors’ meeting of the Manufacture 3000 company, Robert, Director of Operations, proposes a bold redevelopment idea for their plant, with an impressive potential. In addition to drastically increasing productivity, the company will now have the space required for the manufacturing of an all new innovating product, this without having to expend. Animated conversations are then abruptly stopped when Alain, Financial Director, claims: “Forget about that: our Insurer will never go for it !”. The meeting then continues on other subjects, pushing the redevelopment proposal away.
This situation seems at all familiar to you ?
Alain’s way of thinking is shared by many individuals in the manufacturing industry. This mentality comes from the time when Risk Management was more associated with insurance shopping than the implementation of preventive measures. Indeed, not so long ago, a company confined itself to subscribing to several expensive insurance policies, sometimes incomplete, in order to transfer certain risks inherent in its sector of activity. Today however, this company is depriving itself of a real lever that would allow it to develop innovative processes that could lead to the achievement of business objectives.
First, a new look at the obstacles
Why not completely modify your vision and look differently at the obstacles leading to the reorganization of the plant’s space ? Let’s consider Robert’s idea, not as an additional risk to insure, but like an opportunity that will be implemented with the Insurer’s blessing. Even if this new perspective forces the managers to get out of their comfort zone, it will allow the company to progress and to propel itself towards new objectives, while benefiting from an adequate insurance coverage.
With this new way of thinking:
An experienced broker works with the company to identify the potential risks. If you wish to proceed to the reorganization, planning is the ideal step to integrate an insurance professional. He will anticipate the difficulties, evaluate the probabilities and the impacts but, above all, the possible solutions to carry out the project to its completion.
Then, you dissolve your upstream uncertainties
By identifying the risks upstream, it becomes much easier to manage them. Nothing is more frustrating than to realise, following your Insurer’s visit, that the important changes you made are non-compliant. These changes could also involve additional recommendations, modifications, even an increase of your premium, a decrease of your capacity or, even worse, the complete withdrawal of the Insurer from you file ! You avoid bad surprises and new expenses to rectify the situation. For example, consult your insurance professional as soon as you begin to consider some modifications to: your sprinklers systems, your rooms for flammable liquids, the height of your storage, your dust collectors and/or your clearance spaces.
By then carrying out a cost-benefit analysis, the managers will have all the cards in hand to seriously consider this type of investment.
Finally… Do it !
Now is the time to be bold and to go for it ! It does not mean that the process will be easy or that the Insurer will not have any kind of reservation on the company’s ideas. However, instead of giving up, you will get some clues that will eventually allow you to reach your goals, while managing the risks at the utmost. Your Insurer could even surprise you with his ideas ! Each Insurers’ Risk Management Department includes engineers and technicians in fire prevention (FPT). Their experience can be valuable and useful for your projects. Do not fear your next Insurer’s inspection, welcome it !
Risk Management is not a fixed strategy. It is primordial to elaborate a continuous action plan, to follow it and evaluate its relevance frequently, to be able to proceed to the little adjustments that will give you the adequate coverage, all the time. And there it is: risk is now a partner of your growth !
We want to play a part !
At Verrier & Associés, we are very aware that each decision you make daily has its own uncertainties; from the hiring of a new employee to the update of your computer system, including the purchase of new materials and the review of your manufacturing processes.
Rather than enclosing the management of each risk in a financial or operational straitjacket, an ingenious broker will assist you in the integration of these risks to your strategy. Let our team of experts apply themselves to relieve you of your worries and accompany you in your Risk Management.