Frequently Asked Questions (FAQs)

Q: How does DBHR differ from other risk management consultancies?

A: Because our team of professionals has a broad base of experience in the legal, insurance and business industries, we are well versed in the wide range of risk management issues that can plague a company. This is particularly helpful during risk management audits, because we are able to utilize our industry knowledge to dig deeper than insurance companies are expecting in order to see where there are issues, and allow clients to raise the bar themselves.

Q: How do you explain DBHR's independence?

A: DBHR is an independent consultancy in terms of our service and product-delivery processes. This is critical because it enables us to remain unbiased and uphold the highest standard of performance. Our goal is to build effective partnerships between insurance providers and their consumers.

Q: What is the difference between loss control and risk management?

A: Risk management is the art of determining what exposures a company has, and then eliminating those exposures, limiting them to an acceptable financial level, or transferring the risk to a third party. This requires a proactive mindset—staying ahead of the curve. With loss control, you are dealing with claims and losses after the event. We provide services in both of these very important areas.

Q: What is the value of a good risk management program?

A: Let us count the ways. To begin with, in a hard insurance market, such as the one we have been experiencing for the past several years, companies cannot rely upon the widespread availability of insurance carriers and the efforts of their brokers to find the best available policies for them. Therefore, businesses must make themselves as attractive as possible—risk-management wise—just to maintain their ability to purchase insurance from an ever-dwindling pool of carriers. In addition, an effective risk management plan will allow you to minimize your internal costs in terms of insurance, retaining employees (because they are working in a safe environment), etc. When your internal costs are lower than those of your competitor, you have a higher profit margin, which you can use to leverage your bid.

Q: Is it difficult to “sell” the positive aspect of risk management?

A: Definitely. You can look at how your risk management plan impacts your business versus your past history, but it doesn’t take into account things that never show up on claims, such as customer goodwill, the ability to attract business, and the ability to obtain insurance. There are always going to be people who look at things and think, “ that could never happen to me; claims are things that happen to other people.”

Q: How do you tailor a risk management strategy for your clients?

A: We determine the risk management quality of a company based on a variety of criteria. We examine the safety program (or lack thereof), procedures for handling injuries or accidents, contract language (including indemnity or risk transfer), claims procedures, and customer service practices. Field visits often turn into fishing expeditions in which questions are asked in order to come up with a general feel for the client’s business practices. We provide clients with the tools needed to solve their specific risk management issues, and then evaluate the results and revise strategies, if necessary.

Q: What are some of the most common risk management problems you encounter?

A: Some of the most common problems include incorrect or inadequate contract language, safety issues, OSHA (Occupational Safety and Health Administration) compliance, proper risk transference (due to inadequate indemnity provisions), security issues at construction sites, and claims management problems, particularly managing workers’ compensation or general liability claims.

Q: How important is it for a company to fully disclose its exposure to risk?

A: Companies that make full disclosure about their risk environments and the potential for risk will usually get better insurance coverage because carriers can see that these companies are taking risk management seriously.

Q: How can changing contract language have a positive effect on a company’s bottom line?

A: A poorly written contract can lead to huge financial losses. A generic contract only provides—at best—minimum protection. DBHR enables clients to better protect themselves by tailoring contracts to suit their individual needs. We provide them with specific contract language and proper forms to use, and we educate them on risk-transfer techniques, such as the use of certain indemnity and insurance provisions.

Q: Risk management is great in theory, but not always easy to implement effectively. How can DBHR help me reduce my exposure?

A: We designed our Risk Check service to provide effective risk management protocols in the fields of assisted-living facilities, construction and professional liability. We take you through this step-by-step educational process so that you will have better control over your insurance program, reduce the time and money spent on ineffective office and management procedures, and increase your ability to bid yourself to a wider insurance carrier audience.

Q: How does a construction wrap-up insurance policy benefit builders?

A: The abundance of construction defect litigation all but killed the building of condominiums. Wrap-up insurance policies are changing this picture. Builders—and subcontractors—can now work on such projects without the intimidation factor of Plaintiffs’ attorneys (and subs are provided with the necessary insurance that they might otherwise be unable to obtain). In addition, because policy premiums are allocated across all construction trades on a project, insurance costs are reduced, and since liability boundaries are set under one insurance policy, there is a single, unified and cost-effective response to claims.

Q: Who pays for your services?

A: We contract and are paid by all facets of the various industries. Our risk management review services, performed on behalf of insurance companies, are generally paid for as part of the policy issuance monies. Our wrap-up services are generally paid for by the sponsor of the wrap-up program. There are a variety of programs and fee structures for all of our services.