We meet new and existing clients daily to help evaluate business management risk and identify risk appetite.

The critical question we ask is:

What level of risk are you prepared to take when making operational decisions in your business?

  • Low
  • Medium
  • High

Our risk discovery journey helps you use financial data, strategic growth plans and current operations to determine the level of risk your business can afford.

 

understanding business management risk can prevent the wooden blocks from falling over

What is business management risk?

Business management risk looks at the factors that expose your senior management team to legal action. Unfortunately, in today’s litigious environment, no business relationship is free of risk.

Therefore, it’s vital to consider your dealings with other parties, including employees, suppliers, investors, competitors, customers, government agencies, regulators and creditors.

While you may feel that you have strong relationships with internal and external parties, they have the potential to cause harm to your business at any time.

Thus, it’s critical to protect your business against the costs of any legal action taken against you, your directors, or the business.

 

shaking hands in business contract meeting highlights business risk

Types of business management risk to consider.

There are different types of business management risks to consider, such as:

  • Defamation
  • Crime
  • Employment

Today, we’ll focus on defamation and why you should protect your business against legal action.

 

Defamation

Does your business make comments about clients in emails, in office conversations or whilst out at coffee in public venues?

You never know who may be listening or their connections to staff, suppliers or investors.

So, why does it matter? It matters because it can lead to legal action against your company or directors to repair damage to their reputation.

Unfortunately, it happens, and a court case’s outcome can be costly.

Case Study Example:

A senior employee of a civil construction company sent an email to a few staff members. However, it contained statements about two of their suppliers that could be perceived as defamatory.

Outcome:

The suppliers found out about the email and commenced proceedings against the author of the email. Mediation resolved the matter with a compensation payment of $60,000 to the suppliers. Plus, the company paid $57,390 to defend the business against legal action. The company suffered a total loss of $117,390 because of an email between employees. 

Without insurance, the company would have to pay the loss from existing cash flow.

 

How can Clear Insurance help you?

Firstly, we use over 65 years of combined general insurance knowledge to help you evaluate business management risk.

Secondly, we work with you to build your risk profile so you can decide whether to keep, mitigate or transfer risk to insurance.

We’ll evaluate your existing insurance programs to help streamline policies, align renewal dates and make recommendations to address critical gaps in cover.

Finally, with our fee-for-service approach, you can feel confident that our fee is calculated based on the insurance services you receive. Plus, it reduces the taxes payable on your premiums.

Contact us today to see how we can help.

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

Clear Insurance Pty Ltd. ABN 41 601 916 689. AFSL No. 548953.