Ever wonder why there is so much seemingly incomprehensible text in the fine print of your insurance policy? Every industry has its fair share of jargon and the insurance industry is no exception. One term that crops up regularly and may be confusing is ‘risk management’. NY businesses, particularly small businesses in heavily populated urban districts may be exposed to more risks than comparable businesses in regional areas. It’s important to get to grips with what risk management actually is and how to implement safe risk management practices to protect your business.
Risk management consists of identifying the potential risks to your business and taking preemptive measures to counteract those risks or lessen the severity of the impact should they occur. Many businesses develop an official risk management plan with a list of policies and safety measures documented. This is a good idea if you are aiming to lower your insurance costs as many insurance providers look favorably on businesses who can demonstrate a commitment to lowering their risks on a long term basis.
No matter whether you create a formal risk management document or take a more casual approach, it is important to implement some form of risk management in NY. The state has many different business types operating and although the risks may vary, the process is similar for everyone.
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