NAESIP supports the TCOR philosophy, which stands for “Total Cost of Risk.” Reducing losses will actually save a company more money than just purchasing the "lowest cost" insurance available in the marketplace. It’s a win-win for everyone.
Environmental risk management focuses on reducing the indirect costs of TCOR. Direct costs include insurance, deductibles, and legal costs from uninsured claims. Indirect costs such as lawsuits, lost productivity due to accidents, or increased premiums due to claims tend to be higher than direct costs. By helping business owners reduce indirect costs through risk management and prevention, insurance agents specializing in the environmental niche can help reduce owners’ overall insurance costs.
A well-educated agent with training from NAESIP who understands environmental risks can present how the TCOR concept can have a greater impact on lowering overall costs beyond just a reduced premium.
Using the principles of TCOR enables agents to show that the investment to prevent claims - fleet safety programs, safety training, health and safety, moisture control programs and more – is worth the upfront cost because it reduces the overall expense to their business.
Understanding TCOR allows environmental business owners to really understand their risk and how major risk factors can reduce the profitability of their business. When it comes to environmental risks, focusing on TCOR and not just the cost of premiums is a win-win for the business owner and NAESIP agents.
For more infornation about how the TCOR impacts environmental insurance, download our article from Resources magazine: The Educated Agent’s Strategy for Tapping the Environmental Market