Did you know that even if your business has never had an accident, lawsuit or theft claim, carriers may still view your company as high-risk and adjust premiums to match? At McLean Insurance, we’ve developed a TrueRisk Pro fileSM for evaluating business risk management strengths and vulnerabilities.
Consider these instances and ask yourself, is it time to assess my company’s risk management practices?
End of the year
Take an annual look at where you stand in terms of risk management. Has your organization had events (both negative and positive) that could affect your exposure or the cost of coverage? For example, has your business experienced injuries, accidents, losses, lawsuits? Have you implemented new training programs or personnel policies to reduce the chance of injuries, accidents, losses and lawsuits? Have you put new business continuity and disaster recovery plans in place? This annual assessment helps you identify where new risk mitigation actions are needed. If you’ve already made improvements, it helps you identify opportunities to negotiate with commercial insurance carriers for better rates and terms.
Every time you add more employees, facilities, vehicles, equipment you increase your exposure to everything from property damage and OSHA compliance to bad publicity. So any time you grow, make sure your risk management strategy keeps pace with your changing organization.
If you use consultants or contractors (including 1099 employees), make sure that (1) they have adequate liability insurance and that (2) your company is named as an insured party on that policy. In the event of a problem, any loss would be covered by the contractor’s insurance rather than yours. This risk transfer strategy helps protects your own insurance limits from being used up by matters involving contractors.
Cyber liability is a huge new area of exposure. Every business today needs a risk management strategy that addresses how to protect the confidentiality of information on customers, employees, and vendors. From a “smash and grab” burglary, to an employee’s laptop ending up in the wrong hands, the financial consequences and bad publicity can bankrupt a business. Reducing the risk of cyber liability involves far more than virus protection and firewalls. Without sound policies (such as requiring employees to lock both the screen and the computer itself before stepping away from the desk for any reason), your business could still be found negligent. Neither a general liability policy nor a general business policy will cover this – but sound policies, procedures and training will protect you.
A True Risk profile is our first step in developing a comprehensive asset protection plan for each of our clients. We would be happy to provide you -with a free consultation. Please call Maureen Scholz at (703)637-4336 or firstname.lastname@example.org to set up an appointment.