Lions, Tigers and Bears, Oh My!

What danger is lurking in your business backyard?

How in the world can you ever anticipate all of the things that can go wrong?  How do you identify the risks that would impact your business and which coverage you need to protect your assets and your ability to run your operation?  And then how much should you pay for the coverage?

This is a continuation of my series of 4 blog posts discussing insurance needs.  In my last blog post, I talked about the types of risk.  In this one we will discuss how to identify the risks you need to cover.

Where are the lions, tigers and bears hiding in your business?

So here you are, in a meeting with your insurance agent working to determine if you have the proper and enough insurance coverage.  You have your base policies and you have an umbrella policy.  But is it enough?  Have you thought of everything?  This is where good insurance agents separate themselves from GREAT insurance agents.  Great agents will know and understand your business.  They will take the time to review your operations with an eye for the risks. Finally, they will assess your coverage and reveal any coverage shortfalls that may make you vulnerable.

A friend of mine recently provided me with a great tool to help assess risk.  Using the scale below, you can more readily rate your risk based on frequency and severity. When you are meeting with your agent, start plotting the risks your business faces in the box below.  Go through the four types of risk I talked about in my previous blog.   Is the severity of the loss likely to be low and infrequent?  Box 1 it is.  Is the severity likely to be catastrophic and frequent? Box 4 it is.  Write each scenario down and plot it in the appropriate box.  It won’t take long to see the risk and magnitude.

Deny Claims Chart










Don’t kid yourself.  This is not an easy process.  Plan on spending a few hours with your insurance agent and your management staff.  Then after the agent leaves, you and your staff will continue to think of things and put them on the chart. A great agent will be doing the same.  You will talk with each other and over time, this chart will become very crowded.  But the first time is always the hardest.  And you’ve got to start somewhere.

Now that you’ve completed the table and it cluttered with scores, it’s time for action. What do you do next?  You fortify and defend your business and read my next blog post, Building the Fort to Protect Your Business.

My Role in Helping Business Owners

As your B2B CFO®, everything I do is to improve the life of you, the business owner.  You are important to society.  I have unique processes and tools to help eliminate the barriers to your success.  Let’s talk about how I can improve your life.

Other blog posts in this series are:

  • What Do Insurance Companies Do Best?  Deny Claims
  • Building the Fort to Protect Your Business
  • Think You Have Your Troops in Tip Top Shape?

I Bring Financial Knowledge, Provide Financial Training and GenerateFinancial Stability

I am fluent in “financialspeak” and can translate your monthly numbers into strategies for future success.  I take companies to a higher level of success.


Email :  Phone: 909-732-4917

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