Risk Financing Alternatives

Dillon Risk Management works with clients to enhance their risk control practices, ascertain their capacity for retaining loss, present risk financing alternatives that meet their operational objectives and facilitate the implementation of the selected alternative. We analyze the factors that can affect your performance in the loss responsive risk financing options under consideration, and we model your organization’s potential outcomes so you have a clear illustration of the possible upsides and downsides of any program. Our clients enter their chosen risk financing alternative with a sound understanding of the upfront and net cost possibilities of the risk financing alternatives we’ve recommended.

Programs typically implemented by our clients include:


Traditional Insurance

Some organizations prefer to know the ultimate cost of insurance from the inception of their insurance policy. For a variety of reasons they are not interested in the potential of a lower net cost of insurance in exchange for the possibility of paying more because their losses were above what was expected. Dillon Risk Management has access to insurance programs and markets that can provide competitive traditional insurance products that are both niche focused and consistently competitively priced in their industry emphasis.

refinery worker filling large fuel-truck inside refinery

Retrospective Rating Plans

Organizations participating in retrospective rating plans enjoy a net cost savings if their policy year loss results are favorable. This reward for favorable loss experience is counter balanced by an increase in net cost if losses exceed expectations. But, the uncertainty surrounding net cost is tempered by a maximum premium limitation. The clear premium formula associated with a retrospective rating plan provides participants with an easily quantifiable “best case – worst case” indication for clients considering a retrospective rating alternative.


Large Deductible Plan

Organizations with well controlled losses can receive immediate cash flow advantages and an overall lower net cost of loss by participating in a large deductible program. We work with clients to evaluate the cash flow advantages of a large deductible plan, as well as the net cost potential. Dillon Risk Management’s experience with third party claims administrators (TPAs) help clients take advantage of the increased control over claims management inherent to deductible programs, creating additional cost savings from this unbundled service approach.  Additionally, we facilitate the application of collateral options to secure the client’s participation in a large deductible plan.

Cement Construction Trucks


Once available to only very large organizations, there are now a host of captive options accessible to an ever increasing participant base. But, as with any loss sensitive option, there are risks associated with captives. We help clients complete their due diligence in evaluating captive options. Dillon Risk Management has successfully placed clients in rental captives and group captives, as well as, facilitated their participation in single parent captives. We help clients determine the short and long term benefits of participating in a captive. We work closely with our clients to ensure participation in the captive meets their needs and expectations.

Truck Fleet


For clients that wish to exercise a high degree of control over claims handling and place importance on taking direct responsibility for losses, Dillon Risk Management will facilitate the application process that leads to certification or qualification to be permissibly self-insured as required by state or federal agencies. We provide analysis of the potential impact of various self-insured retentions (SIR) and on-going evaluation of the selected SIR during the plan year. Dillon Risk Management also will place the excess insurance over the selected SIR and help clients select the most appropriate defense cost treatment option.