Wise business owners understand that risk management is a critical element of any successful business operation. Purchasing insurance coverage is one tried-and-true approach to managing the risks associated with the way you do business. Many employers purchase typical products such as property insurance, general liability and workers’ compensation. There are also insurance products that are pretty common within certain industries and work environments. Some businesses need alternative solutions to help manage alternative risk.
What Constitutes Alternative Risk?
Alternative risk describes business risks that are complicated, irregular or otherwise difficult to insure. Any coverage needs that require specialized, tailored solutions fall under the umbrella of alternative risk. Some available insurance solutions include the following:
- Self-insurance plans – Your business can pay its losses to a specified amount with excess insurance protection to cover unacceptable losses.
- Captive programs – Owners can put a certain amount of their capital at risk, but also control underwriting, claims and captive investments.
- Loss sensitive programs – Based on an organization’s history with losses, premiums can be adjusted accordingly.
Why Include Alternative Risk Management?
You’re in business to make money and impact the world around you. An uncovered loss can put your business in serious financial risk. You owe it to yourself, your organization, your partners and your customers to boost your business with real insurance solutions to help cover typical and unexpected risks. It’s incumbent upon you to make sure that you’re completely protected with the customized insurance solutions.