How to Manage Business Success by Minimising Risk

Many businesses are aware of the need for general insurance but you would be surprised, or even alarmed, at the number of businesses that are at serious risk because they are uninsured, under-insured, or insured with inadequate and sometimes out-of-date policies.
If you consider the increase in crime, weather-related incidents, and litigation we would recommend that you plan for the unexpected and check your financial protection systems, as once an incident has occurred it is too late to then check your documentation and insurance cover.
We would also advise that you examine your insurance cover in a number of areas to make sure that you are not exposed to potential risk and expensive claims. Carefully analysing these risks and planning your insurance cover can give you the peace of mind that, should the unthinkable occur, then the impact on your business would be minimised.
Quite simply, reviewing your financial protection systems ensures that any risk affecting your business is managed effectively - before it could lead to a serious incident which may threaten your business.
If you think about the legal implications, the management time used in dealing with financial incidents, the loss of productivity, and the financial implications, it will come as no surprise that many businesses like yours are looking for specialist help and advice.
Once you are aware of the particular risks your business faces means that any action you take will be more effective and therefore more secure. How can you be sure that you are adequately protected?
At BiB our aim is to help you manage and reduce your exposure to risk, specifically when it comes to the financial protection risk management for your business, helping you to minimise the risk you face from unforeseen incidents, disputes and litigation.
So how can we reduce your exposure to this risk?
Unfortunately, it’s a common feature that many businesses often overlook the need for a comprehensive financial protection risk management programme to their cost. Effective financial protection risk management looks at every possible impact on your business, and knowing the particular risks your business faces means that any action you take will be more effective and therefore more secure.
In fact, there are a number of factors which will affect the risk management measures you adopt; such as policy documentation systems, renewal dates, accurate asset management, personnel compliance and many more, all of which may expose you to significant risk.
Whatever your business, a well-planned review and assessment of your financial protection risk management programme is a proven and effective method designed to protect your valuable investment.
To give you some guidance on financial protection risk management, we have put together an outline below of the main areas you should take into consideration in order to reduce your exposure to risk.

What you should consider

We would recommend that you carry out a thorough examination of both your premises and operations, closely evaluating any areas which may leave you exposed to significant risk. This will highlight any areas which could cause problems to you and your staff, enabling you to:

• Identify the areas in most need of attention.


• Evaluate the scale of risk.


• Ensure that you have adequate arrangements in place.

Some important areas you need to consider when assessing your exposure to risk:

• Are policy documents always read and clarified?


• Is firm evidence of renewal always received?


• Are renewal dates entered into a recurring diary?


• Is disclosure made to insurers and cover secured for all business activities?


• Are assets insured against all risks that the current insurance company will accommodate?


• Is all property for which the business is responsible insured?


• Are all available extensions of cover taken?


• Are you aware of all conditions and warranties?


• Are all personnel instructed on compliance with conditions and warranties?


• Are you aware of the need to disclose material facts?


• Are assets insured at all relevant places and times?


• Is the building sum set by a professional valuation?


• Are systems operated to ensure that sums insured are always maintained at adequate levels?


• Does Interruption insurance fully reflect the projection of future trading?


• Is there any reliance on other parties to insure business property or liabilities?


• Are liability insurances held at sufficient levels to protect business and contract commitments?


• Is liability insurance protection held for all past products and services?


• Are the obligations to report claims and potential claims understood?


• Do you review the insurance system annually and when significant changes take place?

This is a brief overview of some of the issues that could affect your business to a greater or lesser degree, depending on how you manage them. We can help you examine these areas in a well-planned and detailed manner, identify your level of exposure to risk and develop an organised, cost-effective risk management plan.
All of which gives you greater control of your business performance, profitability and success.

What should I do now?

If you would like to find out more about managing the risks associated with financial protection, then please call us on 01325 353888 and we will be happy to discuss this important issue with you in greater detail.
Alternatively please email us on webenq@bibinsurance.co.uk