Risk Management Will Help You Achieve Peace of Mind
Do you ever think about risk, whether you and your company are exposed, and whether the insurance you paid for will actually cover you. Even if your first reaction is to say you sleep like a baby, likely there is a sneaking, subtle anxiety in the back of your mind. You may try to tell yourself your broker has it all under control, but at the core you know that is not really true.
The biggest companies have risk managers on staff. Why? Because business risk is complex and constantly changing. Insurance policies are complex too, sometimes covering hundreds of pages filled with terms, exclusions, limitations and conditions. The typical businessperson has neither the time nor the expertise to sort it all out, separate fact from puffery and determine whether the risks facing that particular business are covered without a lot of unnecessary and costly extras.
Risk management is in fact more than insurance. Liabilities can be directed and redirected by contracts between trading partners. Have you agreed to indemnify another party? Will your liability insurance cover that assumed liability? Have you forgone opportunities to obtain indemnification from others whereby you could insulate your own insurance program from loss, and thus prevent future premium increases? Do you have the right safety programs in place?
What about claim management. Simply send in a claim to the insurer and forget about it? No way that will ever work. Claims need to be managed, and claim experience is how companies are judged when they go to the insurance market to negotiate for an insurance deal. We want as large a payout as possible when we are the recipient of the claim funds, and as small a payment as reasonable when other parties are the recipients under our coverages.
All of these are functions of a risk manager. And they are all functions, which we, licensed risk managers and insurance advisers, can provide for you and your firm. Whether you ever lose sleep , or have nightmares, over insurance and risk issues or not, we will provide you with the knowledge that your company has evaluated its risks, instituted programs to minimize those risks and effectively protected itself, and you, from crippling losses.