Using an iceberg analogy is not uncommon so I certainly won’t be the first to open your eyes to this however; it is one of the most powerful methods of getting across an important topic.
In my daily conversations with clients we discuss workers compensation and how that policy actually works. Part of this conversation surrounds quantifying direct costs and indirect costs associated with workers comp so organizations can best make decisions on how to address certain situations. The direct costs are simple (medical and indemnity). Those can be quantified by securing loss runs from the insurance carriers which will indicate Paid and Reserve amounts. The indirect costs most never even ponder and that is a big mistake. Some studies show indirect costs can be 4 to 10 times the direct costs. That is massive!
The image below will provide examples on what indirect costs would be.
Are you properly managing your risk today? How well is your broker helping you identify, quantify and manage your risk?