Incorporating Insurance Into Your Risk Management Strategy
|By| September 15, 2022|
Risk management is a broad topic that involves taking steps to minimize and control the threats businesses face. Learn how to identify your risks and what you can do for prevention.
All companies face risks depending on where they are located, their industry, and the technology they use. At a minimum, risk incidences can cause disruptions. If they are severe enough, a company could go out of business. While companies can't avoid every challenge and pitfall, having a risk management plan can help handle the fallout. However, did you know that different insurance policies can help mitigate risk? Because of its benefits, every business should consider adding strategic risk management policies to its overall risk management portfolio.
The first step is understanding some of business' biggest risk factors and how insurance can help protect a company.
Technology & Data Breaches
In recent years, cybersecurity problems have increased across all industries. Because these breaches can be costly, it's essential to take steps to help ensure they don't happen. The following lists top advice from the experts:
- Educate employees about strong passwords and how to identify and report suspicious activity
- Create and update data procedures about company expectations
- Employ remote monitoring with 24/7 network monitoring by a managed IT service provider
- Have data backup with recovery in case of loss, server crash, or natural disaster
- Safeguard physical data in a secured location with restricted access
- Maintain up-to-date security software to defend against breaches
- Protect portable devices with security measures
Also, there are insurance options to help prepare for, respond to, and recover from breaches. Cyber liability and data breach insurance can be add-ons to business insurance policies, or a stand-alone cyber policy might be the best option depending upon the needs of the business. Be sure to talk to an insurance professional to determine your costs, what's covered, and any exclusions before making a decision.
Property Damage & Business Interruption
Depending on the company's location, the threat of hurricanes, floods, wildfires, and snowstorms can throw a wrench in everyday operations. And if the building sustains damage, chances are you can't run the business while it's under repair. Also, other risks like supply chain problems and technology use can threaten a business' operation.
Having the right insurance in place can help defend against these risks. For example, business interruption insurance can help keep cash flowing, even if operations temporarily halt. Also, commercial property insurance covers damage to business property from things like vandalism, theft, and fire.
As a business, there are many ways to safeguard against business liability. These liabilities include property damage, personal injury, defense costs, and advertising injury. The following are some steps for mitigating your liability risk:
- Structure the business properly
- Implement procedures to minimize identified risks
- Execute proper sanitation procedures
- Make sure advertising is accurate and know industry regulations
To help protect a business against claims, general liability insurance covers bodily injury, medical payments, and more. Additionally, product liability insurance focuses on specific products you offer, while an umbrella policy provides additional coverage. The cost of liability insurance is based on your particular needs and risks.
Take the Next Step: Explore Your Business Insurance Options
While identifying and managing your risks can help lower your losses, proper insurance is the best way to protect a business. At Cell Brokerage, we help companies find the right coverage and maximize their policy dollars. Take the next step today. Work with an experienced broker to ensure you have the right insurance to protect your business from the unexpected.
For more information, contact Cell Brokerage today at 844-440-4222.
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