Business management risk examines operational factors that could expose your business to theft or financial losses.
Therefore, having a strong grasp of the business management risk for your operations is critical. While last week we considered the impact of defamation, today we’re looking at what’s commonly referred to as crime risk.
The critical question for crime risk that our advisers will ask you is:
- Are you 100% confident that your business is not open to the theft of funds, inventory or intellectual property?
So, to help you answer this question, we use our risk and insurance expertise to take you on a risk discovery journey. During which, we’ll work with you to analyse financial data, growth plans and operations to see what level of risk your company can support.
Why should I consider crime as a business management risk?
Today, the risk of a business falling victim to crime continues to grow and can be distressing for all involved. So, a ‘she’ll be right’ attitude to save money can be costly for your business.
Nevertheless, you may feel that you have the necessary protocols and policies in place to mitigate crime risk. What’s more, you have complete faith in your employees. However, theft can happen in the most unlikely and unexpected ways.
Examples of crime:
Dealing with company insurance programs and insurance claims daily, we encounter many examples of business theft. So, here are a couple of ways crime can occur within a business:
- Distressing family circumstances lead a trusted employee to embezzle funds to help cover critical family issues or addictions over a long period.
- A trusted employee takes products to sell or use outside of the business for financial gain.
- A senior employee or contractor uses your intellectual property outside the business or shares the details with competitors.
As you can see, while we trust our employees, the circumstances can quickly change.
Today, it is becoming harder to feel 100% protected against the risk of crime. However, with the comfort of the most relevant insurance products you can gain peace of mind.
How do I protect my company from business management risk?
There are ways you can mitigate business management risk. Therefore, it’s vital to seek advice from professional advisers such as risk and insurance advisers, human resources specialists, legal advisers, and accountants who can assess your operational procedures and insurance programs to ensure they’re sound.
There is a suite of management liability insurances available to businesses. However, the devil is in the detail, and insurance products can vary substantially. So, it’s vital to have a clear understanding of your insurance program.
How can Clear Insurance help you?
We use our extensive risk and insurance knowledge to help you navigate the full suite of insurance products. As such, we’ll guide you through the pros and cons of each product to help you choose the most appropriate insurance solution for your needs.
When you come on our risk discovery journey, firstly, we’ll help you to streamline existing insurance programs, align renewal dates and provide recommendations to address critical gaps in cover.
Secondly, with our fee-for-service approach, you can feel confident that our fee is calculated based on the insurance services you receive rather than the policies themselves. It also helps reduce the taxes payable on your premiums.
Contact us today to see how we can help.