Understanding Risk Management
The first, and often short-changed, step is to identify where your risks lie and how you want to manage each risk. It's not enough to just sit down and chat with you… some of the most important issues might not get addressed. Instead, we have an exclusive, specially designed survey that provides a formal and comprehensive identification of your risk.
Once we know where you have risk, we can decide how you want to handle it. This flow chart helps illustrate your options.
- Perhaps you can avoid the risk by not providing that product or service any longer, or by outsourcing it and thereby eliminating the potential for a claim.
- Maybe it would be most cost effective for you to hold that risk yourself. A good example of holding risk is your insurance deductible. You save a lot of money by having a higher deductible. But you accept that amount of cost as your own should you need to file a claim.
- The final option is to transfer the risk. In some instances, the best way to do this is for your customers to accept the risk. You may require a signed contract stating that they provide their own shipping or storage insurance. And, of course, the other risk transfer method is to purchase your own insurance policy to absorb a loss you can't afford to cover.
It is only after this analysis is complete that we can truly know which of your risks are appropriate to insure. Any other method is just guessing! We then research and study your specific needs so that we can design exactly the policy that fits your chosen risks. Then we'll get together again to present your options. In the meantime, you can learn about our unique and comprehensive Safety First Program the ultimate support for your insurance policy.