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