THE COST OF IGNORANCE is a riveting novella by business insurance
veteran Robert Phelan.The story punctures confusing insurance
jargon and introduces a powerful new concept for middle-market
companies: a little-known form of insurance known as
Performance-Based Insurance (PBI) costs less and can save a company
millions of dollars over time. The tale is told through the
misadventures of Timothy Franculli, owner of a wholesale
manufacturing company that is about to go broke because of
escalating liability and health insurance costs. Timothy attends a
conference in San Francisco where he runs into an old friend and
learns about PBI, a type of insurance that could save his
struggling company hundreds of thousands of dollars per year. But
there is a catch. Typically, in order to qualify for PBI, a company
must have a strong safety culture where worker injuries and
accidents are controlled and reasonably predictable. Franculli has
a lot of catching up to do after a series of employee injuries the
year before caused his worker s compensation premiums to skyrocket
40 percent.
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