Risk Management 101
What Is Risk?
Risk is defined by BusinessDictionary.com as “a probability or threat of damage, injury, liability, loss, or any other negative occurrence that is caused by external or internal vulnerabilities, and that may be avoided through preemptive action.” It may not be apparently obvious or imminent, but we are exposed to risk every day in varying degrees.
The good news is that risk is managed through insurance, something we specialize in at InsureYourCompany.com.
Insurance is the buffer that prevents a risky situation from becoming a full-blown catastrophe.
As the insured, it's your job to cooperate with the recommendations and requirements of the insurance carrier to ensure that if you ever have to submit a claim, it will be taken care of with ease.
How Do You Minimize Risk?
One of the first ways to help minimize risk is the make sure you are insuring your home, car, rental property, or company properly.
At InsureYourCompany.com, we take the time to assess what our clients need and recommend, based on our extensive personal knowledge, coverage that will encompass the full spectrum of our clients insurance requirements.
For example, we get a lot of questions on how to insure a house. We use the term “hours” loosely because, while the structure is generally referred to as a house, through the eyes of an insurance broker, there are many different variations to what constitutes a house. You can have a primary, owner-occupied residence or a second home. You can have a vacant dwelling or a tenant-occupied rental dwelling. You can have a townhouse or a condo. So what you refer to as a home gives us six options to choose from right from the start.
It is very much the same with commercial insurance. We speak with business owners every day about their business operations, and if we can’t pinpoint each aspect of what drives your revenue and make sure it’s accounted for, chances are we’d be insuring you incorrectly. Thus, the first step to managing risk is the make sure the risks you’re insuring yourself against will actually be covered by the insurance carrier.
As we progress further into risk management, let’s take a look at the different types of risk for each segment of insurance that we at InsureYourCompany.com specialize in.