Trade Shows and Insurance Premiums
I usually get out to trade shows, and I encourage
employees to go on their own time. Should I be sending techs on
company time? If so, how do I account for their time spent there,
and what about the lost productivity?
With the shortage of skilled labour, we have to do our best to
constantly develop our employees. Training is an important cost of
doing business because it gives us a competitive edge, introduces
new skills and ideas, and gives people a sense of pride in
themselves, the company they work for and our industry. Sending
them to trade shows and conferences is one great way to do that. I
find the CMX/CIPHEX show
is an excellent opportunity for anyone to stay on top of emerging
issues in our industry. Fortunately, it occurs at one of the slower
times during the year. We do not pay employees to attend, however
we purchase tickets for any members of our staff wanting to attend
(field or office), and challenge everyone to bring back one idea.
We then have paid follow-up idea meetings to review the ideas and
decide on which ones we would like to implement.
We also regularly send employees on courses or to conferences,
especially if their peers will attend. Occasionally, we run a
contest to determine who will go to help generate enthusiasm. We
pay employees to attend as well as their expenses, with the
understanding that they have to report what they learned and help
with the implementation of some of the ideas.
My insurance premiums keep rising and I feel like
I'm throwing my money away. What can I do to reduce my risk and
costs?
Insurance is one of those things that adds no value to your
business - until you need it! In my opinion, you have to have it if
for no other reason than to be able to sleep at night. Insurance
prices move in cycles and reflect underwriting experiences as well
as gains and losses in the investment market. Mostly though, costs
are influenced by your claims record. Most contractors carry
insurance for both liability and vehicles, and every effort should
be made to minimize claims to keep
premiums as low as possible. Your best bargaining position is when
you have a low ratio of claim losses to premiums paid. One of the
best ways to reduce risk on vehicles is to train your drivers well
- ideally in the fall before winter hits. Something as simple as
backing into a "stationary" parking space and driving out into
traffic might save you one accident per year. Remind drivers the
extra weight we carry in our trucks increases stopping distances in
wet or icy weather. Finally, do a regular inspection of your trucks
and look for things like bald tires, worn out windshield wipers;
etc., to prevent needless accidents.We have a checklist, which
I
am pleased to send to anyone who wants it.
Liability is another issue. Analyze your claims and see if there is
a pattern, then brainstorm solutions.We had a problem with claims
for flooded ceilings from attic air handlers.We mandated that all
customers install a secondary drain pan with a safety shutoff
switch. It was a risky move.We lost less than two per cent of our
customers but gained $100,000 in revenue and reduced our insurance
premiums by 10 per cent.