Blog

By Cory Wadsworth 24 Aug, 2017

Insurance is a method of managing the areas of risk that businesses face on a variety of fronts.

Well-crafted insurance and a robust risk management program creates a wall of protection that allows you to function while taking on these various risks and decreases the chance of them putting you out of business while keeping the costs under control.



There are four common mistakes that I have seen in insurance that cause the most headache.

  1. Not understanding the exposures: This is probably the most common problem. You cannot insure against an exposure you are unaware of. You cannot expect basic Liability and Property Coverage to take care of all your unknowns. Understanding these exposures and identifying them within your organization is critical to effective insurance coverage. You cannot cover an exposure if you don’t know it exists.

  2. Not having the right coverage: This problem is related to the first problem. I have seen it time and again; businesses think they are covered because they have purchased an insurance policy. Insurance policies are complex legal documents that are full of exclusions, limitations, and conditions. A one-size-fits all policy can often prove ineffective when there is a claim. There are many different kinds of coverages that need to be in place in order to have an effective insurance program. They vary from company to company, sometimes dramatically. NOT ALL POLICIES ARE CREATED EQUAL .

  3. Relying too much on Insurance: Insurance is there to protect in the event of a loss, but it should not be relied on as the sole remedy. A robust risk management program should be a key part of every business. Enterprise Risk Management is the new form of risk management. It follows Edward Demming’s Total Quality Management that seeks for quality in every phase of production. Every employee, department, and team member in the company is part of ensuring that risks are identified and taken care. This requires training, education and commitment from top management. Does risk management play a key role in your company?

  4. Uncertainty about resources: Companies and the environments they operate in are constantly changing. So then should their approach to risk management. This includes insurance policies. To keep pace with the changes in your company, the environment, and the insurance industry, the person or team, whether internal, your insurance agent, or an outside consultant, need to be continually aware of these changes.


The most effective way to handle these mistakes is to have an agent you trust to help you navigate these issues. Your agent should be there not only at the inception of the policy and the subsequent renewals, but as well as throughout the policy year. Insurance is meant to protect your business. Let us help you make sure that it is.


By Cory Wadsworth 24 Aug, 2017

Insurance is a method of managing the areas of risk that businesses face on a variety of fronts.

Well-crafted insurance and a robust risk management program creates a wall of protection that allows you to function while taking on these various risks and decreases the chance of them putting you out of business while keeping the costs under control.



There are four common mistakes that I have seen in insurance that cause the most headache.

  1. Not understanding the exposures: This is probably the most common problem. You cannot insure against an exposure you are unaware of. You cannot expect basic Liability and Property Coverage to take care of all your unknowns. Understanding these exposures and identifying them within your organization is critical to effective insurance coverage. You cannot cover an exposure if you don’t know it exists.

  2. Not having the right coverage: This problem is related to the first problem. I have seen it time and again; businesses think they are covered because they have purchased an insurance policy. Insurance policies are complex legal documents that are full of exclusions, limitations, and conditions. A one-size-fits all policy can often prove ineffective when there is a claim. There are many different kinds of coverages that need to be in place in order to have an effective insurance program. They vary from company to company, sometimes dramatically. NOT ALL POLICIES ARE CREATED EQUAL .

  3. Relying too much on Insurance: Insurance is there to protect in the event of a loss, but it should not be relied on as the sole remedy. A robust risk management program should be a key part of every business. Enterprise Risk Management is the new form of risk management. It follows Edward Demming’s Total Quality Management that seeks for quality in every phase of production. Every employee, department, and team member in the company is part of ensuring that risks are identified and taken care. This requires training, education and commitment from top management. Does risk management play a key role in your company?

  4. Uncertainty about resources: Companies and the environments they operate in are constantly changing. So then should their approach to risk management. This includes insurance policies. To keep pace with the changes in your company, the environment, and the insurance industry, the person or team, whether internal, your insurance agent, or an outside consultant, need to be continually aware of these changes.


The most effective way to handle these mistakes is to have an agent you trust to help you navigate these issues. Your agent should be there not only at the inception of the policy and the subsequent renewals, but as well as throughout the policy year. Insurance is meant to protect your business. Let us help you make sure that it is.


Share by: