L. Keep professionally active . Continual contact with peers is essential. The size of staff depends on what must be done. Many variables are at work, so comparisons between firms are misleading. A staff handling benefits will usually have more clerical personnel, a firm handling its own claims will have more adjusters, and so on.
Some rough guidelines are as follows.
Method One . Half this figure might then be justified as overhead properly allocable to a risk management department. The fact that insured losses are paid out of insurance premiums does not mean they should not be added to premiums for this purpose. If significant sums are spent on self-insurance service firms or other services, they should be included. This formula, of course, is only a rule of thumb, but it helps to give other managers a better grasp of the scope of risk management.