Delaware Business Insurance Update by CNC Insurance Associates Inc. "Breaking Down Risks in Four Categories" 9-8-13

Many times in consulting with my clients, the question comes up on how to break down risks in a more understandable way. Though complex there is a way to make sense out of risks by establishing categories.  The four main categories of risk are Property, Liability, Human, and Net Income. Lets talk a little about each of these. Property risks are fairly self evident. Risks of loss to buildings, contents, equipment, fleets, etc..., are easily identifiable and can easily be managed when it comes to risk of loss. Liability is a little more difficult because of the contract issues that businesses can get involved with and the unknown of juries and judges. Human risks are very complex because human beings are complex. This boils down to employee issues on the job and off the job. Finally Net Income risks are the most insidious because it takes professionals, like accountants and finance people to identify net income risks to the organization. For a business owner, by starting with these four categories, risk management starts to make sense. This also gives a starting platform for owners to begin or work from. Don't let risk management overwhelm you. Just start with the four main categories of risk and go from there. Until next time be careful out there and know your risks.
By G. Kevin Nemith President of CNC Insurance Associates Inc.
Serving DE, PA, MD, VA, & NJ
www.cncinsurance.com
www.bizinsurancetv.org

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