Posts Tagged ‘Risk management’

Why Captives and Enterprise Risk Management Are a Good Idea

Risk Management

When running any business, a level of risk and uncertainty is involved. Likewise, most business owners and management strive to determine how much chance or risk to accept or manage to enhance or erode company assets. This is why enterprise risk captive insurance is vital to the potential growth of your business.

What is Captive?

A captive can be an effective way of maintaining more significant control of risk management and fund self-insured risks. Additionally, a captive insurance company accepts premiums your business may have to pay against a parent company and can profit if those claims are less than the original premium.  A captive can also lower insurance premium costs and provide long-term stability for pricing on customized policy manuscripts.

Benefits of Enterprise Risk Management

Enterprise risk management or ERM is a crucial component of how a captive contributes to your business’s profitability.  Often, a captive consists of a board of highly trained professionals within a variety of disciplines that can also influence your risk management program’s success. Since an ERM  focuses on preventing uncertainty, claims are likely prevented instead of administered, giving business owners a broader understanding of their industry limitations as well.

When you have a captive in place and enforce an ERM, you can ensure effective compliance with local laws and reduce potential risks. Additionally, when you combine enterprise risk management and a captive, it can be vital to your company’s overall growth.

Risk Management for Businesses in Richmond, VA

Risk Management

As a business owner, you have to be conscientious about safeguarding your business against risk. Working with an insurance company that is experienced in serving commercial clients in Richmond can provide you with thorough coverage to protect your business from risk comprehensively and affordably.

Getting the Right Help

Business Insurance by BlueSky offers a variety of coverage areas that can meet all of your business’ individual policy needs. BlueSky provides insurance for a wide range of businesses that vary in size and span across many different types of industries. Their experienced representatives can help you build a package that’s customized to address every type of risk involved in your day-to-day operations.

Tailored Policies for Your Business

To effectively safeguard your business, it may be necessary to get more than a basic general liability policy. BlueSky can help you get competitive prices for the following types of policies:

  • Commercial Property
  • Commercial Umbrella
  • Directors and Officers
  • Employment Practices Liability
  • Cyber Liability
  • Errors and Omissions
  • Special Events
  • Workers Compensation
  • Bonds

Building a package with an experienced agency can help you get access to the best carriers in the marketplace that serve your area. Reach out to BlueSky for help with protecting your business from potential liability or loss with thorough commercial insurance coverage.

7 Challenges in Wholesale Operations

Wholesale Operations

Retail stores face considerable risk when dealing with inventory and purchasing. Wholesalers have similar challenges, and the risks in distribution business can put a company out of business if they aren’t prepared. In addition to carrying a comprehensive insurance policy, the team at HILB Group of Florida recommends being aware of the risks in order to form a sound risk management strategy.

Distribution Risks

  1. Property Damage- inventory damage could interrupt your supply to your customers
  2. Supply Shortage- without an ability to stock your inventory you struggle to sell
  3. Product Liability- liability for the sale of a product determined to be unsafe or defective
  4. Legal Penalties- contract fulfillment concerns when accidents or shortages occur
  5. Theft- responsibility for stolen goods by employees or while during transport to retailer locations
  6. Equipment Failure- product damage due to failed transport trucks, cooling systems, heating or freezing equipment
  7. Incident Tracking- lost data due to misplaced or inefficient data tracking and analysis

Finding Coverage

These claims may have some obvious risks attached, but there are also concerns that will be specific to your distribution business. You can mitigate risk through a management strategy, but you can also have a strong defense with a comprehensive insurance plan in place. Promote best practices throughout your company, but also meet with an insurance agent to discuss your coverage options.