Risk Strategy

Policies do not manage risk. People do.

Insurance only works when every policy forms part of a deliberate risk strategy.

Most businesses treat strategy as a plan.

Strategy is not a plan. A plan describes what you will do. Strategy determines what is worth doing and why. It is the disciplined process of recognising patterns, anticipating uncertainty, challenging bias and assumptions and making informed decisions before others see the need. Strategy is not an exact science. It is sound judgment applied to uncertainty. Taking this a step further, a risk strategy is the disciplined process of making better decisions before financial uncertainty becomes reality.

In risk and insurance, this distinction is absolutely key.

Most insurance programmes are designed from the bottom up. Ask for asset sums insured, request quotes, buy the cheapest cover available. This is not even planning, it is at best, a basic tick the box exercise and is the furthest thing from a risk strategy.

The Chadwicks Risk Approach

To achieve the best possible protection at the lowest sustainable premium cost, your insurance programme needs more than policies. It needs a clear risk strategy built around the financial risks that could have the greatest impact on your business, wealth or lifestyle.

These principles underpin every account we are appointed on, whether for a business or a private client.

  1. 01

    Start with the real risks and “what ifs”, not only a list of assets or possessions.

    The objective is to understand what could materially affect your business, finances, the contracts you have entered into or your lifestyle, before deciding how those risks should be managed.

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  2. 02

    Be clear on what insurance is meant to achieve.

    Insurance exists to protect you against significant financial loss, preserve cash flow and help you recover from insurable events that would otherwise have been financially devastating. In short, financial peace of mind.

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  3. 03

    Prevent or reduce risk wherever possible.

    The best claim is the one that never happens. Good risk management protects people, reduces disruption and will most likely lower insurance costs and the administrative time burden over time. And invariably, taking reasonable care to avoid or minimise loss is a condition of cover.

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  4. 04

    Use insurance for catastrophic or residual risk.

    Smaller, predictable losses are better managed through prevention, internal controls or self-insurance. Insurance should be reserved for losses that could materially harm your business or lifestyle.

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  5. 05

    Cover first. Premium last.

    The true value of insurance is measured on the day of a claim, not when the premium is paid.

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  6. 06

    Work with one trusted risk advisor.

    A single broker provides clear accountability, develops a deeper understanding of your circumstances, reduces unnecessary administration and delivers stronger insurer relationships and better claim outcomes. Multiple brokers often dilute responsibility, increase overall cost and create gaps in your insurance programme.

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  7. 07

    Someone must own your insurance programme and understand it.

    Whether you are a business owner, director or private client, someone should understand what is insured, why it is insured and where the responsibilities lie.

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  8. 08

    Disclose fully and immediately.

    Incomplete or inaccurate information creates unnecessary gaps in cover. Contrary to popular belief, exploring risk friction points is positive, not negative. A broker who does not ask detailed, difficult questions or challenge assumptions is a quoting machine and is a risk red flag. When in doubt, always disclose more rather than less. Non disclosure and poor understanding of the risk remain among the most common reasons claims are rejected.

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  9. 09

    Avoid underinsurance by keeping sums insured accurate.

    Buildings, contents, machinery, vehicles and other assets require professional valuations, not rough estimates and should be reviewed regularly to ensure your insured values remain correct. Attempting to reduce premiums by understating sums insured is penny wise, pound foolish.

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  10. 10

    Review your programme whenever circumstances change.

    Growth, acquisitions, renovations, new contracts, overseas activities, location, asset use, changes in occupation, major purchases or lifestyle changes all affect your risk. Your insurance should evolve as your circumstances evolve. When in doubt, always disclose. See above for more information on disclosure.

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  11. 11

    Understand the “T&C’s”, the exclusions, conditions, definitions and responsibilities that apply to your cover.

    Insurance is a legal contract. Knowing what is not covered and what you are required to do, is just as important as knowing what is covered.

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  12. 12

    Stay involved when a claim arises.

    A claim is not simply an administrative process. Communication, cooperation with insurers and their claim procedures are essential to achieving the best possible outcome. Having a professional risk advisor on your side, costs nothing and very often, is the most important risk decision you will make.

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  13. 13

    Break down the advisory silos.

    Your business and wealth do not operate in a vacuum. If your insurance is structured in isolation from your legal and wealth strategies, it has blind spots. A robust risk strategy speaks directly to your financial realities, which is why we align our approach to your existing financial and legal architecture like your accountants, attorneys and wealth managers.

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  14. 14

    Protect against the invisible.

    It is easy to focus on what you can see. Physical assets like buildings and machinery are only half the equation. The risks that most often cripple a business or compromise a private client's lifestyle are the ones you cannot physically touch. Whether it is a devastating liability claim, an unforeseen infrastructure failure that halts your supply chain or an event that completely cuts off your cash flow, your risk strategy must cover the intangibles. We design programmes that prioritise these existential threats, ensuring your revenue and your legal responsibilities are as well protected as your property.

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  15. 15

    Understand your legal and regulatory obligations.

    Insurance is designed to respond to insured events, not to replace compliance with the law. Many obligations imposed by legislation, regulation or contract cannot be transferred to an insurer and penalties, fines and certain statutory liabilities are by and large uninsurable. In addition, most insurance policies require compliance with applicable laws and regulations as a condition of cover. Understanding these obligations is an essential part of managing risk.

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The true test of a risk strategy is a large claim. We take the lead and are in your corner, but risk management, proactive communication and cooperation from you are essential to securing the best possible outcome.

These principles are not a checklist. They are the foundation of every recommendation we make and insurance programme we advise on. Our role is not only to arrange the best insurance solution, but to help you understand risk and make informed insurance decisions. We call this insurance clarity. With care.

Review My Risk