Risk Management - What is it?

Risk management involves identification, assessment and prioritization of risks associated then with coordinated efforts of varying resources that will minimize, monitor, and control the probability and/or impact of unfortunate events. In short, we don't want to have losses; what are practical steps that we should be taking as individuals and business owners to keep ourselves positioned not to use our insurance. When we have a claim, it diverts our attention away from our personal and business lives and time is our most valuable asset.

Some quick tips for types of Risk Management

Auto: never loan your car to anyone to drive - the policy follows the car in most cases and NOT the driver so, you could have a damaged vehicle, a deductible to pay for or worse be involved in litigation just because you were helping someone out. Make sure that your tires have tread and are properly inflated and that your brakes are checked every year.

Home: make sure that your smoke detectors actually work and that your fire extinguishers are operational. Don't grill too close to your house to prevent fire and make sure that your gutters are clear of debris to help prevent water damage. If you have a pool, post no diving signs and keep a locked entrance to the pool. Don't leave children of a young age unattended near your pool.

Landlords: pre-screen your tenants to make sure that they will be able to pay their rent and that they do not have a criminal record that could put you, other tenants or the community at risk. Make it a lease requirement that all tenants must have tenant home insurance and name you, as the landlord, as an additional insured. Conduct inspections of the interior and exterior of your rental units once a year.

Business Owners: a pound of prevention is worth a pound of cure: Conduct safety meetings to make certain that employees understand work safety and avoid injuries. This can also save you money on your workers compensation. Keep money and valuables locked in safe and be cautious about who has access to your valuables. Keep public walkways clear of ice and snow during and after storms.

Conduct frequent reviews with your insurance advisor to make certain that the coverage that you have properly reflects your needs.

Remember, insurance is only one component of risk management and when you are claim free, you enjoy using your time for productive matters, you do not have untimely out of pocket costs and you will enjoy better rates and marketability.