2016 Risk Management and Insurance Review Tips

As the old adage goes, “the only thing that is constant is change.” As the world changes with time, it is important you protect your business’ survival by adapting to changing circumstances accordingly. Reviewing your risk management and insurance program annually is critical to your long-term success.

If your business has grown or downsized over the past year, it is important you consider the following:

1. Audits: Workers compensation and general liability policies can be audited to verify you are paying on accurate sales and payroll values. By updating your sales, property values, and workers compensation payroll figures, you can avoid the risk of an audit and the possibility of having to pay money on last year’s policy without an option for a pay plan.
2. Property: Alter your insurance coverage to correctly reflect the amount of property and inventory your company owns. If you are overpaying for insurance coverage, look to reduce your coverage and save money if you can.
3. Liability: If you are providing new or altered services that are different from what you have done in the past, you may want to increase your insurance coverage or purchase a new policy that covers your unique risks. Get the right coverage for your exposures and what you feel are priorities for your organization.
4. Emerging risk: How susceptible is your company to digital risk, and what coverage do you have to mitigate this risk? What would happen if your business were to be the target of a denial of service attack or virus? How much money would be lost, and what would happen if our valuable data was destroyed or stolen?
5. Contractual and legal obligations: Review your legal and contractual liabilities. Is your liability insurance sufficient to cover your potential liabilities? Consulting with a knowledgeable attorney with risk a management mindset could be particularly beneficial.
6. Risk control plans: What procedures and policies do you have to control the frequency or severity of a loss? It is important you review your human resources policies, workplace safety procedures, and the security of your digital and intellectual property.

Reviewing your company’s potential risk on an annual basis can be invaluable to help you prepare for the coming year and boost your confidence in your ability to meet your goals. For more information on this topic, check out our firm’s original blog post as featured on ERAI.com.