Insurable Risk Overview:
What is risk and when should I transfer it to an insurance policy? This is broad sweeping question though. Our answer is that risk is simply any situation that contains uncertainty of financial loss, and in terms of risk transfer, a diagram may be the best way to depict and think about risk, starting with what can be considered Low Severity, non-business threatening risks and what should be viewed as High Severity, business threatening risks.
Low Severity Risks
Non-Business Threatening | High Frequency
Insurance is dependent on the severity of any one loss & whether loss is business threatening.
Transit Risk
Persons
Motor
Computers
Other Assets
Risk Profiling should always be effected under this category as certain risks may be business threatening.
High Severity Risks
Business Threatening | Low Frequency
Insurance is essential to ensure business continuation.
Fire & Natural Perils
Construction Projects
Buildings
Stock
Plant & Machinery
Computers
All Other Assets
Reduction in Turnover
following an Insured
Material Damage Loss
Gross Profit
(if cover is available)
Suppliers / Customers
Public Utilities
Prevention of Access
Cyber Liability
Construction Liability
Marine Liability
Advice/Treatment Liability
Motor Liability
Tenant Liability
General Liability
Product Liability
Workmanship Liability
Environmental Liability
Storage Liability
Labour Liability
Directors & Officers Liability
Credit Risk
Export / Domestic Credit
Low Severity Risks
Non-Business Threatening | High Frequency
Insurance is dependent on the severity of any one loss & whether loss is business threatening.
Transit Risk
Persons
Motor
Computers
Other Assets
High Severity Risks
Business Threatening | Low Frequency
Insurance is essential to ensure business continuation.
Fire & Natural Perils
Construction Projects
Buildings
Stock
Plant & Machinery
Computers
All Other Assets
Reduction in Turnover
following an Insured
Material Damage Loss
Gross Profit
(if cover is available)
Suppliers / Customers
Public Utilities
Prevention of Access
Cyber Liability
Construction Liability
Marine Liability
Advice/Treatment Liability
Motor Liability
Tenant Liability
General Liability
Product Liability
Workmanship Liability
Environmental Liability
Storage Liability
Labour Liability
Directors & Officers Liability
Credit Risk
Export / Domestic Credit
