Risk Strategy Overview
To manage your insurance program for the best coverage at the lowest possible cost, you will need a definite plan that underpins the objectives of your business.
Here are some suggestions for compiling a risk and insurance plan:
- Write down a clear statement of what you expect insurance to do for your firm.
- Select only one broker to handle your insurance. Having more than one may complicate and weaken responsibility.
- If an employer or partner is going to be responsible for your insurance program, be sure he or she understands the responsibility.
- Do everything possible to prevent losses and to keep those that do occur as low as possible.
- Don’t withhold important information about your business and its exposure to loss from your insurance broker. Treat your broker as a professional helper.
- Don’t try to save money by underinsuring or by not covering some perils that could cause loss, even though you think the probability of that loss’s occurring is very remote. If the risk is marginal, the premium will be marginal.
- Have your property appraised periodically by independent appraisers. This informs you of your exposures, and allows you to prove more conclusively what your actual losses are if any occur.