Why Plan for Things to Go Wrong?

Life insurance: it’s about death. Disability insurance is about getting hurt. Fire insurance is about your home or your business burning down. These are tough topics. Nobody likes to talk about insurance.

Hi, I’m Jeff Gordon of Gordon Atlantic insurance. We understand that most successful business owners are confident, they’re optimistic. They don’t like talking about things that are going to go wrong.

Related: How to Convince Brokers to Insure Your Startup

Planning for the Inevitable

However, sometimes things do go wrong.

Understanding Total Cost of Risk

Sometimes things go wrong. Do you know which risks your business should cover? 

It’s the function of an insurance broker or insurance agent to ask some of those tough questions: is this or that risk being attended to? Not necessarily through insurance but by recognizing the total cost of risk to an existing business.

Calculating Risk to your Business

All the large companies quantify quite accurately the total cost of risk to their businesses. The purpose for this is to decide whether it’s more economical to transfer risk through insurance or to mitigate risk to employment through employee training programs, control risk or transfer it to other people that are providing services to the business.

Related: What Is a Business Owner Policy?

Insurance Mitigates Risks

Looking at the total cost of risk puts insurance in its proper perspective. You don’t want to have insurance be the only backstop to a sloppy risk program.

Your Most Valuable Assets: Your Employees

After all, employees are the most valuable asset in most businesses.

Understanding Total Cost of Risk

Your employees are your most valuable asset. You need to integrate their well-being and security into your strategy.

So you want to make sure that your employees are safe, productive, and that risk is not something that you just write a check to be rid of but make it part of your overall business strategy.

Related: What Does Additional Insured Status Mean?

Insurance Makes Sense

Talking to your broker or agent about total cost of risk and insurance makes a lot more sense.

What Are Umbrella Insurance Policies?