1. 2233 112th Avenue NE | Bellevue, WA 98004 | 425.709.3600 | 4000 Old Seward Hwy., Suite 200 | Anchorage, AK 99503 | 907.562.2225 | www.psfinc.com
Understanding and quantifying risk is the cornerstone of
our organization. As insurance professionals our Mission is
to “guide our clients to make informed Risk Management
decisions and develop innovative insurance, surety, and
employee benefit solutions uniquely suited to” your needs.
We provide audit services to new and prospective clients
to provide an assessment of their current risk management
program and offer insight into areas for improvement.
Background information gathered during the audit process
allows us to craft the most comprehensive and efficient
risk strategy.
Our team are experts in performing due diligence research,
in identifying potential risks and finding solutions to
manage those risks.
Our Audit Process includes
Complete review of the organizations existing insurance•
program. Reviewing the program ensuring it is
reasonably well structured, verifying that it fits the
needs of the organization, and deduce whether insurable
exposures have been inadvertently left uncovered.
Evaluation of the levels of insurance coverage including•
liability limits and industry benchmarks for retentions
or deductibles. We review the financial strength of
the incumbent insurers, and offer our perspective on
future insurance industry trends that could impact
rates or coverage’s.
Review of indemnity provisions or insurance requirement•
language found in all existing contracts. Provide synopsis
of past claims, identifying any loss trends that may
impact future insurance availability or rates, or that
may indicate the need for alternative risk management
practices including self insurance or coverage
enhancements. Any active claims are studied and
analyzed for loss reserves and progress toward resolution
and all potential costs associated with closing of the
claim can be quantified and reported.
Evaluate the existing loss prevention and/or safety•
program and determine the effectiveness and adherence
to the program. Review any previous insurance company
loss control recommendations.
Analyze workers’ compensation classifications and Ex-•
Mod factors. Determine appropriateness of alternative
options such as self-insured or Retro programs.
Report findings and provide recommendations for•
improvements
All Audit Services are performed by Parker, Smith & Feek
employees and are conducted in the strictest environment
of confidentiality and best practices. Our Audit Process is
not only offered to clients but also is at the heart of our
Private Equity/M&A Practice where we perform due diligence
regularly for mergers and acquisitions.
The process for performing the audit is designed to be
trouble free for our client. We collect copies of all insurance
policies and supplementary documents related to the
insurance program and this information is assigned to the
various audit team members. Each specialist independently
analyzes their subject area and the combined team then
meets to exchange information on their findings and suggest
any additional steps to needed to complete the review.
As a cross check of our work, we typically compare and
contrast your insurance program with that of other businesses
with similar risk exposures. We then formulate a list of
questions that help us learn more about your business before
we develop our recommendations and final report. We can
schedule a conference call to discuss this set of questions, or
arrange an in-person meeting if you prefer. The final report is
prepared and includes our findings and recommendations for
improvement, corrections or changes.
Audit Services

2. 2233 112th Avenue NE | Bellevue, WA 98004 | 425.709.3600 | 4000 Old Seward Hwy., Suite 200 | Anchorage, AK 99503 | 907.562.2225 | www.psfinc.com
You should consider this service if you:
Do not have qualified staff to carefully review your•
policies each year.
Are thinking about making a change in brokers or•
insurance companies.
Haven’t had your program reviewed by an independent•
consultant within the past three years.
Experienced an unexpected change in insurance•
premiums on the previous year’s renewal.
Had a claim denied by the insurance carrier - a claim you•
thought should have been covered.
Expanded your business or changed your operations and•
need to re-think your insurance strategy.
Think you may have been victimized by over-pricing and•
unethical business practices.
Key Benefits
Correction of errors & omissions in the placement of•
your coverage
Avoidance of uninsured or under-insured claims•
Benchmark your cost of insurance, retained losses and•
other risk management expenditures against similar
organizations
Identifying targets of opportunity for risk management•
improvement and cost savings
Identify gaps in coverage•
Scenario:
A multi national paper organization with revenues in excess
of $4 Billion had separate insurance policies for each business
unit and had become accustomed to the program being
fractured and poorly serviced by a national insurance broker.
During our audit we found areas of duplicate insurance and
numerous locations that were not insured. We assisted
our clients with determining loss limits and designed a
comprehensive program that efficiently provided coverage to
all business units. Coverage was dramatically enhanced while
saving the client over 35% in annual insurance premiums
Scenario: A large financial institution with assets in excess
of $2 Billion had a claim denied by their insurance carrier
that they felt should have been covered. The board decided
to have the insurance policies reviewed by an independent
third party.
Our review showed that the program was a standardized “off
the shelf” program designed for a much smaller organization,
and had not been tailored to the organizations changing
needs. Significant gaps in coverage, coinsurance penalties,
named insured errors, uncovered property, and errors in risk
exposure were uncovered. A well structured program was
designed offering a more comprehensive insurance program
while reducing annual insurance premiums by over 20%.
Audit Services
Contact
Cliff Rudolph, Account Executive
425.709. 3705 | crudolph@psfinc.com