Risk management was a hot topic at the recent World in 2014 Summit in New York, with many speakers predicting that 2014 will be just as challenging as 2013. So while everyone else is making New Year’s resolutions about eating less and exercising more, this is the perfect time to thoroughly assess the health of your business, especially your risk management program. Below are three key topics that should be on your New Year risk management checklist:
- FINANCIAL HEALTH: To start off the New Year on solid footing, take stock of your business’ financial health, including:
- Business structure. If you operate as a sole proprietorship and your business is growing, that type of business entity might not be a good fit any more. You might need the added protection you could get as a limited liability company (LLC) or a corporation.
- Money. Take a close look at your budget, cash flow, debt, loans and lines of credit, and make corrections where indicated.
- Documentation. Make sure all important information such as permits, tax ID numbers, insurance certificates, and other paperwork is up to date. This is also a good time to review employee manuals, job descriptions, and company policies regarding equipment and computer use.
- Business insurance. Take the time to read your policies and thoroughly understand them and how your coverage works. Conduct a thorough annual review of your coverage with your insurance provider, and make sure you’re fully covered from every angle.
- CONTRACTS: Thoroughly review all contracts to ensure they are current and accurate, including real estate and equipment leases, vendor and supplier agreements, and proposal/bidding documents.
Do these documents sufficiently protect you from risks? If you’re not sure, review them with a financial advisor and an attorney. Catching potential issues early gives you peace of mind and lets you focus on growing your business in the coming years.
- LOSS PREVENTION: The New Year is the perfect time to renew your commitment to reducing your exposures, cultivating a safe workplace, and protecting your bottom line. Take a look at last year’s claims experience and conduct a complete risk assessment on your business so you’re fully aware of your biggest exposures and risk factors. Then make sure you have detailed, concrete plans for managing those risks.
Help reduce your exposures this year by getting your entire staff onboard with safety measures, actively promoting health and wellness in the workplace and aggressively managing workers’ compensation costs.
A prosperous 2014 begins with a risk management mindset.
Risk management involves more than just business insurance or crisis management. Make sure you see the bigger picture, consider every risk, and seize every opportunity to mitigate those risks. When you partner with Heffernan Insurance Brokers, you’ll have access to the best tools of the trade to protect your assets, plan for surprises, and help ensure a prosperous New Year. Contact us today.