Risk Management for Individuals

Step 1:
Identify the Risk

Which may come from obvious sources including:

  • Products or services you provide
  • Real estate that you own or operate
  • Car, plane or boat you own or operate
  • The business or charity on whose board you serve
  • Other unanticipated sources such as actions or entities of your partners or children

Step 2:
Isolate the Risk

So that you are not personally exposed, even if the assets and individuals who may have triggered the claim are vulnerable. Isolating the risk limits the exposure, financial and reputational impact, to the maximum extent possible

Step 3:
Shift the Risk

Shift the risk to others, by contract and by law. Every business transaction offers the opportunity to shift the risk of loss or damage to third party vendors, buyers, or users. A proper insurance risk transfer vehicle should be used whenever possible.

Step 4:
Collaborate

Which may come from obvious sources including:

  • Independent review of insurance policies should be performed for gap analysis
  • Broker of record selected
  • Service expectations and timelines identified
  • Partner carrier identification
  • Put coverage in place