It’s no secret that the word “insurance” gives most business owners an uneasy feeling. Often perceived as a commodity, insurance policies and risk management services can cause anxiety and the urgency to just get some kind of protection in place so and move on without concern. The need for this must-have element typically results in business owners telling insurance agents what they think they need instead of the agent doing an in-depth analysis of the reality of business operations.
The current state of the insurance industry has proven that sometimes even the most seemingly secure companies have gaps in their coverage. It is in the merging of all these elements that the Whitlock Group strives to restore clients to a policy that diligently protects and accurately represents your company.
When the counsel at the organization*first approached the Whitlock Group, they felt no uneasiness regarding the policy created for their 13 health spa locations, but simply wanted someone to take a look and confirm that they were protected.
*Organization name excluded to protect those involved.
The Whitlock Group reached out to offer a free Insurance Auditto review the policy and locate any gaps. The insurance audit is the process of learning all aspects of the operation through interviews and physical inspections with senior management and the front line workers. By understanding how the company functions as a whole, The Whitlock Group is able to start a conversation on how to address insurance changes and even uninsured exposures without purchasing insurance.
The well-known and thriving company received course-altering news after the Whitlock Group conducted an insurance audit. Operations that make up 80% of the business were excluded by their current insurance program, which was marketed as a health spa insurance product. For a busy and thriving spa company who served many each day, the lack of liability coverage could have easily resulted in tremendous out of pocket expenses, and possibly a financial burden so great that not addressed could lead to financial ruin and a public relations nightmare.
It was clear that the current agent, a large national broker, had not truly read the policy. The General Liability policy excluded massage, microderm abrasions, and Botox – all of which were performed daily. It also excluded abuse & molestation, which is a huge burden for any organization when employees and clients are alone.
Presenting the findings from the Insurance Audit, The Whitlock Group immediately began to work on correcting the policy to ensure protection for the organization.
- Found coverage for professional services and addressed gaps in coverage under the automobile policy caused by the different vehicle titles used by the owners.
- Closed the gap in liability with doctors and nurses providing injections by developing procedures on insurance requirements for any medical provider.
- Changed the workers compensation policy to a pay-as-you-go, which avoided audit issues and improved cash flow.
- Developed an incident report for all locations to use and trained staff on how to report incidences.
The Big Takeaway
The lesson found in this story is that in-depth policy and risk analysis can save a business. Prior to The Whitlock Group insurance audit, nobody sat down and talked to the organization about their policy. No one explained the specific coverage of their policy. Considering this lack of awareness, the company is fortunate that the unthinkable did not happen before the policy was reviewed and changed. The Whitlock Group is proud to extend a sense of relief when it comes to insurance and confidence in knowing that you and the organization you’ve built is protected. The Whitlock Group Insurance Audit is a free service. Please let us know if you would like your business and policy reviewed.
“If [the policy] is good, they’ll tell you it’s good, if it’s bad, they’ll tell you it’s bad and it won’t cost you anything.”
-Strategic Partner, The Whitlock Group