Who's Number One?

If you are a college football fan like me, you’ve probably been amazed at all the volatility in the BCS standings, especially with the top ranked teams. It seems that on a weekly basis, there has been a major upset and whoever the new #1 and #2 teams are, they have been bounced out by someone else. It happened again this past weekend when Kansas was defeated at home by Missouri, who then claimed the #1 spot themselves. I can’t remember a football season that has been as unpredictable as this one. It makes for a very entertaining time for football fans.

How volatile is your business? Do you go through stretches where things seem topsy-turvy in your world? That may not be as entertaining to you as a college football season. The reality is that change and volatility are part of any business or industry. How you respond to it will decide your success or failure.

The one constant you always have is how well you present your company. Risk positioning is the concept of making your organization as attractive to insurance companies as possible. This will allow you to get the best pricing available and save you MONEY! A great by-product of that is that with better housekeeping and an eye directed at improved risk management, you will have less claims and reduce the hidden costs of those nasty things. It’s a win-win all the way around. Regardless of what’s happening in a volatile insurance marketplace, you will always be positioned for great pricing on your premiums.

Dan

P.S. Need some help with your risk positioning? Let me help you. As a consultant, I will help make your business look beautiful to insurance companies and they will be begging you to take their best offers. Give me a call at 360-697-1058 or e-mail me at dan@toroic.com.

Apple Cup at 100

It's Apple Cup time again, this time for the 100th time. I'm heading to the big game tomorrow to root on my Dawgs with my daughter Kelli. Both teams have struggled this year, but there's no doubt everyone will be up for this one. The pride of our state and schools are on the line.

Go Dawgs!

Dan

The Big Ouch: Blondie’s Best Lesson Saved for Last

“She’s gone.”

Simple words spoken by Dr. Monica as the shot laced with an overdose of anesthesia gently ended the life of our family dog Blondie at 5:15 pm on November 19. We had scheduled this time because we brought Blondie home as a 6-week old puppy on Monday, June 1, 1991 at 5:00 pm. Sort of a fitting end. The 6,016 days in between were full of love, loyalty, and friendship.

I’ve been compiling for some time lessons I’ve learned from Blondie. Maybe I’ll write a book on them because they are lessons we humans can use at any stage of our lives.

The final lesson she taught me through this process is this – we are blessed with gifts and in some cases there is a time to give them back. The reality of letting go and helping a loved one through the dying process is a fact of life. No matter how well you prepare, until you go through it there is a huge unknown. Now, even though every death in our family will be painful and different, Blondie has taught me that it can be done with dignity, courage and love.

Yes, I know she was a dog, not a human. She was also a binding member of our family for 16 years; a common bond of love for not only our immediate family, but our extended one as well. Parents, siblings, and friends have all shared their sorrow with us. In fact, one of my daughters close friends left a bouquet of flowers on our doorstep last night. That’s one of the many gifts pets bring. They can be the “glue” that brings people more closely together Giving back the gifts are painful, yet always with a lesson to be learned. I want to thank all of my friends and family who have wished us their condolences. Each one is special and appreciated.

Finally, I want to especially thank the wonderful people at Poulsbo Animal Clinic, especially Dr. Monica and her assistant. The opportunity to say farewell to your pet in the privacy of your own home is something I can’t say enough about. Blondie hated going to the vet and this way it was just like having visitors to the house. No other people, no sterile environment; just peacefully passing away at home with your family by your side. Isn’t that the way we would all want to go?

Dan

The Gettysburg Address - November 19, 1863

Today is the 144th anniversary of one of the greatest, if not greatest, speeches ever delivered. It's short...for you fellow Toastmasters, it's about the length of a Table Topics. But its powerful. In honor of this day, please see the text below. You will also see the only known photograph of President Abraham Lincoln at Gettysburg per the Library of Congress.

Dan

Four score and seven years ago our fathers brought forth, upon this continent, a new nation, conceived in liberty, and dedicated to the proposition that "all men are created equal".

Now we are engaged in a great civil war, testing whether that nation, or any nation so conceived, and so dedicated, can long endure. We are met on a great battle field of that war. We have come to dedicate a portion of it, as a final resting place for those who died here, that the nation might live. This we may, in all propriety do. But, in a larger sense, we can not dedicate -- we can not consecrate -- we can not hallow, this ground -- The brave men, living and dead, who struggled here, have hallowed it, far above our poor power to add or detract. The world will little note, nor long remember what we say here; while it can never forget what they did here.

It is rather for us, the living, we here be dedicated to the great task remaining before us -- that, from these honored dead we take increased devotion to that cause for which they here, gave the last full measure of devotion -- that we here highly resolve these dead shall not have died in vain; that the nation, shall have a new birth of freedom, and that government of the people by the people for the people, shall not perish from the earth.

The ONLY way to watch an NBA game

That's me at courtside of the Sonics-Pistons game last Sunday. The Sonics are a new client of mine and they were gracious to put me and my family at courtside for the game after we met (thanks to Chris Fryar).

The opportunity came because I stuck with my goals. How are your goals going? No matter what happens, never give up on your "season". You may find they land you in the front row!

Dan

Beware of the Margin Clause In Your Property Insurance

Here is a great article by my friend and mentor Scott Simmonds. Scott is an insurance consultant in Maine and my guest in the January teleconference. You can see more about Scott at www.scottsimmonds.com.

Dan

For 20 years or so the best way to insure property was to combine all of your buildings and the contents of your buildings into one amount of insurance. So-called "blanket insurance" provides a single limit of insurance from which the losses of an event are paid.
In addition, it has been common to eliminate the coinsurance penalties by using "the agreed amount endorsement."
The combination of blanket insurance and the agreed amount endorsement provided a high level of protection against the threat of under insurance.
While the above strategy provided exceptional protection for the insurance buyer, it didn't always work out so well for the insurance company. Underwriters are fighting back. It is becoming more common for policies to be issued with a "margin clause” that limits the loss payout on any particular building to a percentage above the replacement cost reported by the insurance buyer.
So, if you list two building on your insurance, each having an estimated replacement cost of 1,000,000, you purchased $2,000,000 of blanket coverage. If a 25% margin clause is added to your policy and, for whatever reason, the actual replacement cost of a particular building is found to be $1,300,000. A loss would be paid only at $1,250,000, leaving $50,000 uninsured.
This policy addition severely limits the advantage of blanket insurance. Some insurers are adding a margin clause without notification to the insurance buyer. I 've taken a strong stand against insurance companies restricting coverage at renewal without a specific notification. Hiding a new endorsement in a renewal makes it appear that the insurer is trying to pull a fast one.
Carefully review your renewal policies. Ask your insurance agent if there are any changes from the expiring policy. Save the e-mails confirming the conversations.

Preparation is key to safety

I should know better. Last night when I pulled in at home after a meeting, I noticed my gas tank was on empty. Actually, I had noticed it for awhile - you can't miss the bright orange "LOW FUEL" light glaring at you. I was tired and just wanted to get home figuring I could get gas in the morning.

The thing that dawned on me when I pulled in was this thought - What would happen if there was an emergency in the middle of the night and I needed to drive somewhere like the hospital. In an emergency, there is no time to stop and get gas. As a risk manager, I should know better.

Think about your business. Are there any "LOW FUEL" lights on for you? Being prepared for anything goes a long way in mitigating catastrophes. Whether it's making sure your office, yard, or plant are cleaned up at the end of the day; or ensuring all your commercial vehicles are properly maintained for the morning, may make a difference in the safety of your employees and others that come in contact with your business. Ultimately, it will reduce your risk exposure and your insurance costs!

Dan

Finding Balance on Gilligan's Island

Have you ever found yourself in a situation where you felt totally unable to function? Last night, I was staring at my computer monitor trying to get a little work done after a busy weekend. My oldest daughter Mindy had been home from college for several days and my wife Barb was taking her to the airport. I was at home because our old dog Blondie is starting a steep decline and we didn’t want to leave her alone. Lack of sleep, a helter skelter few days, and a debilitating overtime loss by the Seahawks had me completely distracted. You probably know that weird feeling of just staring blankly at e-mails!

That’s about the time I realized that balance was needed right then and there for my life. I subscribe to Alan Weiss’ newsletter, The Balancing Act (which I highly recommend – wwwsummitconsulting.com). Alan is constantly talking about life balance. In my case, sometimes you just have to take a break.

My method for taking a break was to turn off the computer (so as to not be tempted to come back), pour a smooth glass of wine, and watch my Gilligan’s Island DVD. Now you may be thinking “Gilligan’s Island! Is this guy a kook?” Maybe so. But, at that point and time, I needed a good dose of slapstick humor and relaxation to re-charge my batteries. After a relaxing evening and a good night’s sleep…I was able to tackle the next day with more vigor and focus. If I had continued on my path of work the night before, I’m certain I wouldn’t have had the same focus.

What about you? Are there times that you need to reward your mind and body with a much needed break to find balance? Now, you may not find Gilligan’s Island to be the right remedy for you. But a nice walk, a game of chess, or a quiet dinner with your spouse or significant other may be just what the doctor ordered.

Workaholics abound in our society. The desire to get ahead at all costs often lead to high blood pressure, stress disorders, and failed relationships. One thing I have learned in my life, and continue to be reminded of, is that balance is good for the mind, heart, and soul. Remember that next time you are staring blankly at your computer monitor.

Dan