Liability and Risk Management Essay Example | Topics and Well Written Essays - 2500 words

Liability and Risk Management - Essay Example I am the Account Manager for Best Western Hotels and work for a worldwide insurance broker, Aon Reed Stenhouse. It is possible Best Western may employ a staff Risk Manager, but it is more likely this function is performed by an insurance broker since only some of the very largest corporations have an in house Risk Manager. Regardless of whether done by staff or an outside agency, the functions are very similar. At this point, a distinction must be made an insurance agent and an insurance broker. An agent serves only 1 or a very few insurance companies and is paid a commission by them for a business referral. In contrast, a broker has access to the entire insurance market and therefore place coverage with any insurer or group of them in the case of subscription policies for physical damage on behalf of a client such as Best Western. Because their remuneration is derived from their client rather than insurer(s) they are usually more attuned to their customers’ needs than an agen t is. While brokers do place insurance coverage their function is much broader than that. Especially if Best Western does not have a staff Risk Manager, the brokers’ function is to supervise the hotels’ static risk management. For example, as Account Manager for Best Western, I would be responsible for liaising with them to ascertain the risks they face and advising them on the most efficient ways of dealing with each one whether by insurance, transfer to subcontractors, reduction through preventative safety measures, retention, or avoidance.   To assist me, I would have a site inspector make at least annual inspections to identify and decide how to minimize perceived hazards. I would probably also have the services of a Claims Manager who would monitor Best Westerns’ claims and if they felt an insurers’ position was wrong, go to bat for the hotel, or conversely if they agreed with the insurer try to convince the hotel their decision was right and in ac cordance with policy terms. In a nutshell my role would be to assist and advise Best Western in all maters related to static risk management. Risk Identification Although there may be slight variations in the risks associated with individual properties due to such variables as differing amenities provided or specific locations, most static risks are common to all. They include the physical risks of damage to the property itself such as by fire, smoke, earthquake ( especially in California), flood, water damage due to leakage from plumbing and fire