Operating Companies

Surmount Insurance Services dedicated focus on the needs client has allowed us to develop unique skills and abilities for serving the needs of traditional insurance buyers. Our clients have enjoyed the following Surmount advantages:

We are engaged by investment firms to analyze business risk, assess risk management practices, interpret coverage adequacy, and design cost effective solutions. How can your agent or broker sell you insurance if they do not take the time to understand your business?

Surmount applies its unique due diligence perspective to traditional buyers of insurance. Does your broker/agent provide you with a Risk Analysis Report highlighting the business risks, operational risks, and financial risks of your business? Do they analyze historical exposures? Identify future exposures? Discuss current trends? Anybody with a broker’s license can sell you insurance. Surmount helps you manage risk.

Business risks are inherent to most activities undertaken by a company. Many of the risks associated with conducting business are not insurable, such as the risk of a new competitor emerging or that of a company’s products becoming obsolete. However, there exists a large body of exposures, particularly those arising from direct or indirect relationships between a company and other parties, which do have insurance implications:

Legal/Contractual Obligations

  • Service commitments
  • Indemnifications provided (and received)
  • Product delivery, performance, and reliability standards
  • Employment contracts
  • Equipment and real estate leases

Strategic and Financing Initiatives

  • Mergers and acquisitions
  • Joint ventures
  • Partnerships
  • Public and private debt and equity issues/placements

Supply Chain Management

  • Vendors
  • Suppliers
  • Resellers/Retailers
  • Contingent business interruption exposures

There are numerous financial risks associated with the management of any business. Like any other exposure to loss, certain financial risks are insurable and certain financial risks are uninsurable. Unlike business and operational risks, where the line of insurable vs. uninsurable is clear, the insurability of financial risks are a “moving target”.

Traditional financial risks are classified as those risks associated with the financing for and financial management of a business. Including:

  • Interest rate risk
  • Foreign currency risk
  • Credit risk (from customers)
  • Credit risk (to suppliers)

Non-traditional financial risks are classified as those risks not associated with the financing of a business but, rather, those risks that have a direct financial impact on the business and are not otherwise classified as business or operational risks. Including:

  • Risks from shareholder litigation
  • Risks from third party (non-product related) litigation
  • Risks associated with political instability (confiscation, contract disruption, war)
  • Risks from regulators and other governmental agencies
  • Risks associated with mergers/acquisitions/divestitures

Surmount has devised unique risk transfer and risk sharing alternatives for clients with exposures in these areas.

Operational risks are defined as those risks associated with the day-to-day operations of a business enterprise. As one would expect, operational risks are dependent on the operations of the organization. Operational risks for service companies are different than those of manufacturing firms.

Operational risks are the most easily transferred risks to third parties. The pricing of the risk transfer is the most uniform.

Coverages associated with operational risks include:

  • Workers’ compensation
  • Business interruption
  • Property
  • Liability