What's your risk appetite?

When setting up a program of insurance for a business the one factor most commonly not addressed is the proposed insureds appetite for risk. In other words, how much do you want actually insured, property and liability, and how much do you want to take on your own, self insure. To be sure, when starting up a business, every dollar counts. Unfortunately, while looking for ways to save on initial expenditures important areas of coverage are often sacrificed. Let's be sure to look at our product, what type of exposure does it represent? Take a look at your industry to find out what types of litigation, either liability of otherwise, have been brought against it. This is an area of utmost importance. Don't skimp on your limits, and seriously consider an umbrella in addition to your sub limits of coverage. While you must also pay careful attention to your property coverage, your liability is most often your greatest exposure. What was the old saying, "penny wise and pound foolish"? Something to think about.

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