Protecting Your Assets: Understanding Insurance and Risk Management

Protecting Your Assets: Understanding Insurance and Risk Management

Written by Alison Lurie, In finance, Published On
May 31, 2023

When it comes to insurance, risk management considers protecting your assets in the event that something may go wrong. There are, unfortunately, many adverse events that can take place and cause you financial harm. Knowing how to protect your assets against these issues is important, especially in the unexpected. Here, we take a look at protecting your assets in the context of insurance and risk management.

Understanding Insurance and Risk Management

Insurance and Risk Management

Know Your Resources

To protect your assets against risk, you must know your resources. Risk management is addressed in several ways, including control measures that your insurance company can provide.

Contact your agent directly for a breakdown of the risk management controls, such as using a DSCR calculator to protect your assets.

Know The Risks Involved

If you don’t know the risks involved, managing them will be much more challenging. In order to succeed with successful risk management and protection of personal or professional assets, you need to know what is actually at stake.

Although the concept of risk management is fairly broad, there are specific concerns that you should focus on in relation to protecting your assets. Specifically, for businesses, firms, and large-scale companies, the most common risks include:

  • Theft and other crime
  • computer viruses
  • personal injury lawsuits
  • Fires and natural events
  • unmet deliveries of material

Stay aware and informed of the possible threats that are tied to your personal or professional assets to move forward with a protection plan. Common risks related to personal assets are creditors and litigators, greedy family members, and crime. By knowing the potential risks, you can take matters to address these concerns proactively.

Take Preventative Actions

Some losses are preventative based on the actions you set in place from the start. For example, to prevent losses due to fires at the workplace, ensure every staff member is trained in fire safety at the office and be sure you have the equipment to put out the fire on site.

Ensure your electrical system is up-to-date and that you have an established business location that is within a fire-resistant building. Protecting your online assets may include ensuring that only those you trust will have administrative access to sensitive information and that you have security software running 24/7.

Know What Insurance Can Do To Help You

Your insurance agent can review your business or personal accounts and have a conversation with you about what you can do to manage risk and what can be accomplished to see improvements.

They can evaluate the action steps you’ve taken and advise on how to proceed moving forward. You may need to work with a risk management consultant depending on the nature of your work or personal asset protection needs.

What You Can Do To Help Yourself

Aim to have effective loss control; that is, reduce the number and significance of losses to receive lower insurance premiums. When there is a poor loss history, it can be challenging to get insurance.

However, if you are showcasing successful risk management and the ability to control losses, you’ll have fewer claims which will be rewarded via reduced insurance premiums.

Do What Is Needed To Keep Your Assets Safe And Secure

Ultimately, protecting your assets by involving insurance and practicing successful risk management requires cooperation. By working together, your goal of protecting your personal or company assets can be achieved.

You need to rely on risk management procedures on your own and through the assistance of your insurance agent. Neglecting to take steps in one area can have negative results in another, so carry out each step along the way to ensure that your assets stay safe.

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