| Risk management is an endeavor in which most | | | | In fact, the entire insurance industry exists on this |
| successful businesses engage to some degree or | | | | basic premise, doesn't it? Insurance companies |
| another. Whether it be a formal procedure developed | | | | provide insurance so that all businesses can transfer a |
| at the executive level of a large company, or a more | | | | basic component of their risk assessment to |
| intuitive examination performed by an astute small | | | | someone else. Insurance companies make money by |
| business owner, assessing and dealing with risk in | | | | assuming that risk for you. You make money in |
| general is something most businesses do as part of | | | | properly transferring some of the risk involved in |
| their basic planning. No matter who you are, or what | | | | running your business. It's capitalism at its purest. You |
| business you're in, avoiding risk management is a | | | | really can't go wrong when business entities engage |
| risky decision in and of itself. | | | | in mutual profit enhancement, can you? |
| Why insurance exists in the first place | | | | The insurance component of your risk management |
| Of course, no major effort in risk management for a | | | | efforts is probably the most desirable to address. |
| business can really occur without taking into | | | | There are some risks you simply have to assume for |
| consideration the potential for unforeseen harm | | | | yourself, some risks you have to figure out how to |
| affecting your operations. Indeed, this is the purpose | | | | minimize yourself, and some risks you have to learn |
| of insurance in general, and it's certainly the reason | | | | how to eliminate yourself. Those constitute the |
| why business insurance exists specifically. | | | | major remedies after an initial assessment of risk. |
| Are you really engaging in risk management for | | | | The insurance industry specializes in risk management |
| you're business if you're not taking seriously the kind | | | | transfer |
| of insurance you have for that business? Probably | | | | What differentiates insurance from those other |
| not. | | | | remedies is that the entire insurance industry exists in |
| Risk management for small business? | | | | order to manage it for you. Its risk management |
| You can never be too small a business in order to | | | | outsourcing at its finest and it has literally been fine |
| engage in both risk management and due diligence in | | | | crafting its skills for hundreds of years. Ideally, things |
| the choice of small business insurance for your | | | | like small insurance exist not only to handle some of |
| company. The truth is that even small businesses can | | | | your risk management for you, but they exist so |
| be seriously undermined or even ruined if they don't | | | | that you do it at a cost most favorable to you. |
| engage in the proper assessment of risk that | | | | What's easier for a small business owner? Get the |
| involves insurance coverage. Unless you're adequately | | | | right insurance from a company that offers great |
| covered, you simply have not engaged in proper risk | | | | coverage at an acceptable fee? Or hiring your own |
| management - no matter how small your business is. | | | | staff to figure it out for you, without the proper |
| Assessing your risk is the first step | | | | experience or knowledge, and without the specific |
| When any business engages in risk management, | | | | resources specializing in the field? While nobody would |
| assessment is the first step. You need to know what | | | | consider an insurance company to be a magic pill to |
| kinds of risks your business faces in order to take | | | | deal with risk management, they do allow you to |
| that next step in determining how to in fact deal with | | | | outsource one component of it with business and |
| those risks. | | | | small business insurance that's right for you and your |
| Transferring your risk is where insurance comes in | | | | company. |
| Where business insurance comes in is determining | | | | Business insurance helps you address basic risk |
| just how much of that risk you're going to in fact | | | | management |
| transfer to someone else - an insurance company - | | | | Whether you're a Fortune 500 company, or small |
| and how much they're willing to assume that risk for | | | | manufacturer of baseball bats, risk management is |
| you. Transferring that risk is obviously one of the | | | | probably a necessary component of operating a |
| more desirable remedies in dealing with risk of any | | | | successful business. After assessing your risk, you |
| kind. If you can get someone else to essentially | | | | need to someone effectively deal with it. That's |
| assume it for you, without making an unnecessary | | | | where small business insurance in particular comes in. |
| investment in dollars yourself, then not only are you | | | | Business insurance providers essentially allow you to |
| engaging in smart risk management, you're engaging | | | | transfer a part of your risk assessment to someone |
| in smart business - period. | | | | else. They're experts at it, and they allow you to |
| Insurance companies are like risk management | | | | focus on your core competencies and other risks |
| outsourcing firms | | | | associated with doing business. |