Risk Management

Risk Management is the identification, assessment and prioritization of risk and the methods used to reduce and manage such risks. Everyone utilizes a variety of levels of Risk Management in their daily lives. From an individual taking out a life insurance policy on a spouse to an international manufacturing firm implementing safety procedures, we all utilize Risk Management in one way or another.

Insurance protection is an important tool in managing risk. Without proper insurance coverage, you become vulnerable to the vast array of perils around you.

HOME:
A home with inadequate dwelling coverage leaves the homeowner paying out-of-pocket for construction costs, a risk that can be financially devastating to your personal assets.

AUTO:
Driving on the road while underinsured puts your future wages, personal assets and personal property at risk in the event of a major at-fault bodily injury claim. Having inadequate uninsured motorist coverage can leave you with a tremendous financial loss if you are injured from an uninsured driver.

COMMERCIAL:
Risk Management is most recognized in the scope of business. Business owners and management teams need to have strategies in place to reduce risks that could potentially crush their businesses. Decisions need to be made regarding labeling, ingredients, product safety, workplace safety, advertising risks, handling of complaints, handling of shareholder funds, etc.

Insurance is a key component of any commercial risk management strategy. General liability, product liability, personal injury, E&O and other policies protect a business from the infinite amount of risks in the marketplace. It is important to utilize your commercial policies to cover the risks your business produces in the marketplace.

LIFE:
Families who experience an untimely death of a family member face difficult financial planning situations. Adequate life insurance protects heirs from estate tax liabilities, provides life-long income avenues, pays off debt obligations and accomplishes the goals that would have been fulfilled if that person were still living. Families without life insurance protection risk bankruptcy, rapid drainage of assets and loss of property.

Similar to a family who loses a key family member, a business who loses a key employee shares the same risks. Funds are needed to continue conducting business, to replace that key employee, to buy-out partnerships and payoff business debts.

HEALTH:
We all need to see doctors every year. Most of the time we receive routine physical examinations that are NOT costly. During times of medical emergencies you appreciate the health insurance protection you pay for every month. Without health insurance or a financial plan to pay for medical costs, you will go bankrupt from large scale medical bills.

Today, 79 Million people are financially burdened with medical bills in the U.S. This is why health insurance is the most talked about topic in the insurance world today.

USEFUL LINKS:

http://www.redcross.org/

http://www.quakeprediction.com/

http://www.dir.ca.gov/dwc/employer.htm

http://www.healthyfamilies.ca.gov/Home/default.aspx

-Jacob Pullen, CIC-
Pullen Family Insurance Agency

Comments are closed.