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Running head: TORO COMPANY SNO RISK PROGRAMToro Company S No Risk ProgramNameTutorInstitutionCourseDate1TORO COMPANY SNO RISK PROGRAM2Having realized that following the offer to the company to insure the weather relateditems the company increased in its sales the insurance company decided on increasing itsinsurance premium rates. It is evident that for the first time in making the contract with thecompany, the insurance company was more interested in wooing the company into having aninsurance relationship with the company (Bell, 1984). Normally, it is expected that the insurancewould try to make the best offer so that it stands out from all the rates of substitute insurancecompanies. The initial rate of 2.1 for the total sales produced is definitely low compared to theother insurance companies. The average rate for the other insurance companies was found to be4% to 10% depending on the items to be insured.This was indeed a good starting campaign for an insurance company in trying to get acontract with the company and it definitely worked. For a company like Toro that has a highlikelihood of risks associated with weather, insurance is obviously the way to survive in acompetitive market. Further, from the financial statements it is evident that the companys totalsales were previously beginning to drop since the customers would not be ready to take risks ofinvesting on equipments that would cost them a huge amount of money for maintenance ...


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