Risk Assesments - People do the Strangest things!!!!

Presentation to Altrincham & Sale Chamber of Commerce – Business Academy For Commercial Insurance ‘Take the risk but protect yourself’ Ged Murray Insure Risk Limited 13 th May 2014

Insurance What is the definition of Insurance? ‘it is the equitable transfer a risk of a loss from one entity to another in exchange of payment’

Business Risk Exposures  Focussing on commercial business Insurance covering property assets and liabilities. –Property, Buildings, Contents, Stock, Plant Contract Works, Computers –Business Interruption –Liability -Employers, Public, Product & Professional Indemnity –Motor Fleet/Engineering  Not included For Today –Life Insurance, Pensions, Health Insurance & Credit Insurance

Key Steps For Business Risk Exposure  Identify potential risks to your business  Where possible remove/reduce risk  Apply management procedures to control risk  Where appropriate transfer risk by arranging correct insurance

Potential Risk Exposures

External & Internal business Risks

External Business Risks – Limited Control

Internal Business Risks

Internal Managed Business Risk Exposures  Own Staff  Customers /Suppliers  Property  Products  Legislation  Contractual

Business Risk  UK Claims Statistics –Cost of Average Fire Claim £7,900 –Cost of Average theft Claim £1,400 –In 2012 £12.5M per day Property Claims£12.5M per day Property Claims £7M per day Liability Claims£7M per day Liability Claims

Risk Transfer - Insurance  Statutory Insurance Required –Employers Liability –Motor –Engineering Inspections –Professional / Trade License Requirements in order to operate –Misc - Legally Specified  Tailored options for Risk Transfer –Property (Buildings, Contents, Stock, Money) –Loss of Profit/income –Third Party Liability (Public/Products Liability & Professional Risks) –Misc- Management Liability/Cyber

Commercial Insurance – Key Consideration Points  Use services of Chartered Insurance adviser who is authorised by Financial Conduct Authority  Make certain adviser understands fully your business activities and risk exposures and is aware of future plans  Declare all ‘Material facts’ which may affect the viewpoint of insurer considering the risk  Ask questions about the insurance recommended, understand the cover arranged, be particularly aware of policy terms and warranties  Regularly review with adviser cover arranged is suitable for your business activities

Commercial Insurance – Key Learning Points  Not Every Risk can be insured - External Factors  Better to Remove/Reduce Risk through management controls  With adviser identify risks to be insured  Not all insurance policies are the same, ask questions don’t assume, understand the insurers policy conditions and warranties  Full disclosure of all material facts ie previous claims  If losses and claims occur there will be increased premiums to pay

Take the RISK Out of RISK Out of YOUR RISK with