Why Plan for Things to Go Wrong?
Life insurance: it’s about death. Disability insurance is about getting hurt. Fire insurance is about your home or your business burning down. These are tough topics. Nobody likes to talk about insurance.
Hi, I’m Jeff Gordon of Gordon Atlantic insurance. We understand that most successful business owners are confident, they’re optimistic. They don’t like talking about things that are going to go wrong.
Planning for the Inevitable
However, sometimes things do go wrong.
It’s the function of an insurance broker or insurance agent to ask some of those tough questions: is this or that risk being attended to? Not necessarily through insurance but by recognizing the total cost of risk to an existing business.
Calculating Risk to your Business
All the large companies quantify quite accurately the total cost of risk to their businesses. The purpose for this is to decide whether it’s more economical to transfer risk through insurance or to mitigate risk to employment through employee training programs, control risk or transfer it to other people that are providing services to the business.
Related: What Is a Business Owner Policy?
Insurance Mitigates Risks
Looking at the total cost of risk puts insurance in its proper perspective. You don’t want to have insurance be the only backstop to a sloppy risk program.
Your Most Valuable Assets: Your Employees
After all, employees are the most valuable asset in most businesses.
So you want to make sure that your employees are safe, productive, and that risk is not something that you just write a check to be rid of but make it part of your overall business strategy.
Insurance Makes Sense
Talking to your broker or agent about total cost of risk and insurance makes a lot more sense.
About Geoff Gordon
Geoff Gordon has been the owner/president of the Gordon Atlantic Insurance agency since 1987. Gordon Atlantic Insurance provides commercial and personal insurance to businesses and families throughout Massachusetts.
A prolific writer and recognized industry thought leader, Geoff has contributed articles to Banker & Tradesman, a regional trade periodical, and served on the Quincy Patriot Ledger’s Board of Economic Advisors column. He is a member of the Plymouth Rock Assurance Agents Advisory Council as well as the Bunker Hill Insurance Agents Advisory Council. Geoff has presented to the Financial Planning Association’s (FPA) education series and teaches locally. Most recently Geoff spoke to a TEDx conference on “Personal Risk for a Rich Life” in February 2016.
Geoff obtained his Certified Financial Planner (CFP®) designation in 1985, the Certified Insurance Counselor (CIC) in 1995, and his Certified Risk Manager (CRM) designation in 2004, and serves as an Asssociate Faculty member of the Institute of Insurance Education and Reasearch, a national credentialling organization.