28 Dec Crafting a Comprehensive Risk Management Strategy for Your Business

All companies have to worry about risks. It’s simply the cost of doing business. They run into risk when making productions, packaging and selling items, hiring employees, and even owning or leasing a building in which to operate. What makes this easier is knowing that there are plenty of insurance solutions for most, if not all, of these risks.

Wondering what the best insurance policies for your company are? Or do you want to put together a comprehensive risk management strategy for your business? Keep reading for plenty of tips and advice, as well as the answers to both of those questions.

Determining Your Risks

Before you can reach out to your insurance agent and put some policies in place, you first have to take the time to identify exactly what your risks are. Here’s a quick step by step breakdown of the process:

• Define “Risk” – What does the word “risk” actually mean for your business? Does it indicate a loss of profits? Or maybe it refers to any type of issue that leads to monetary losses, such as damage to your warehouse or manufacturing floor? Or does it mean any kind of economic loss, including those that occur through public relations issues?
• Ask Your Stakeholders – Once you’ve collaborated with the leaders of your business to define what risks are, it’s time to check with the board of directors. Go over what your company sees risk as and adjust the definition as needed based on their feedback.
• Make a List of Your Risks – In your meeting with the stakeholders, after you’ve defined what risk means to the business, create a list of potential risks. They can be anything from damage to your main building due to storms or fire, cyber-attacks, broken manufacturing equipment, and more. This list will help you determine what types of insurance your business needs.

Select Your Insurance Plans

Many of the risks that your company faces can be dealt with via insurance policies. Some examples include:

• Business Liability Insurance – This will cover any issues that your business ends up being liable for, such as visitors getting hurt on your property.
• Commercial Property Insurance – Property insurance is designed to cover the building or buildings that your company leases or owns, as well as the land that it’s located on.
• Workers’ Compensation – If you hire employees, you’ll need to have workers’ compensation insurance in case any of them get hurt on the job.
• Equipment Breakdown – An insurance policy designed to cover equipment issues is a good option for manufacturing businesses, contractors, and more.
• Umbrella Liability – In some cases, it’s a good idea to have an additional umbrella liability policy to cover all of those situations that your standard liability policy won’t.
• Cybersecurity Insurance – Designed to help cover some of the expenses that go along with a cyber-attack, this insurance option is quite helpful in today’s society.

Ask a Spivey Insurance Agent

If you have any questions about risk and what types of insurance policies your business needs in order to mitigate those dangers, contact Spivey Insurance. Our knowledgeable agents will be able to answer any questions that you have and help you choose the right policies that will benefit and protect your company.