Alberta Risk Advice by Cielito Villanueva

In insurance terms, risk is the possibility of suffering financial loss by partaking in business activities that are intended to generate profit. The more services and products you offer, or the more territories you cover and the more revenue you generate, the greater the risk. Think of your business as a person: one who locks themselves in a room and disconnects themselves from the outside world lowers their risk of accidental injury while one who is always connecting with people, partaking in many activities, and traveling all over the world increases their risk of accidental injury.  The difference between the two individuals is that the one who is active and in constant motion will most likely be rewarded financially–not always but more likely than not. Now replace the person with a business and the same principle applies.

So with that said, how does a business protect themselves so they can take the risks necessary to discover success?

By implementing a risk management strategy or reviewing their existing one. More importantly, by understanding how the commercial insurance policy fits into the risk management picture and how to get the most out it. For instance, when was the last time you asked your insurance broker to sit down with you to review your insurance policy? They can make recommendations and give you advice to explore the areas of risk in which you can control the losses as well as reduce your costs in premiums by exploring different coverages, limits, and deductibles. Whether you actually use the advice is up to you, but the service is absolutely free. Depending on the agency, your broker will even go to your place of business to address any concerns you might have about loss exposures. You will never know unless you ask, and even then, the risk would be nothing, but the reward could be everything.

In T.S. Eliot’s famous words, “Only those who will risk going too far can possibly find out how far one can go.”

Cielito V