Protecting your business is about a lot more than taking out a standard insurance plan. In fact, most business owners realize how many gaps exist when it comes to their general liability policies. In order for you to get the most from your coverage, you must take the time to assess the specific risks associated with your industry. Failing to do this can leave you open to an array of potential issues down the line.
Focusing on risk retention in insurance can help you get a better idea of where the biggest threats to your company’s longevity are hiding. With risk retention, your business will forego protections in certain areas in order to gain more in the long run. Instead of paying for protections that you will never need to use, your payments will cover the most critical aspects of your specific industry. Naturally, this is a decision you should deliberate for a minute in order to reap all the benefits and not make a hasty move. Be sure to consider:
- Exclusions from current insurance coverage
- Current policy deductibles
- High and low-value losses
Making the Best Choice
Though the idea of foregoing certain protections can seem frightening to some business owners, it is a decision that can yield some positive benefits in the big picture. Take time to think over your options and see if this makes sense for your needs.