26 Feb Risk and Reward
We all know the phrase “insurance is a grudge purchase”, but when it comes to your commercial business you need to consider the rewards that come with a properly thought out risk programme that supports your basic insurance covers.
So, when do you retain risk and keep your costs low; or when do you transfer that risk on to an insurer?
Furthermore, what additional steps can you take to minimise or manage potential risks in your business?
Manage your risk
There are certain events in your business that cannot be insured against. For example, when developing new products, you will have a certain failure rate. However, once your product is available for sale or distribution, you can consider Products Liability to cover any customer come backs.
It is critical to ensure that your checks and balances are monitored and any weaknesses in your process flows are identified and a suitable action plan is put in place to deal with potential problems
Certain situations can result in a financial loss that your business cannot absorb, and these risks should be transferred to an insured.
Catastrophes are an example of this; they are few and far between, but can result in total devastation. (fire, flood and other natural disasters)