Risk Management Isn’t the Only Role for Corporate Insurance

Posted on May 04, 2016

by Admin in AW360 Risk Management, Business Insurance | 0 comments

Companies need to identify, manage and prevent risk in order to maintain a sustainable business. Business insurance has long played an important part of helping companies in a key area of risk management, risk financing. And while insurance can still help businesses transfer potential risk, it isn’t the only reason why companies should create a relationship with an insurer.

Traditional Role of Insurance

Companies use risk management strategies:shutterstock_251707783 sm

  • As a way to identify significant risks
  • To assess the potential of a risk event occurring
  • Employ risk control or risk financing strategies
  • Determine the amount of damage a risk event may cause

Risk control is a method companies use to eliminate unacceptable risks as well as prevent future risks. Risk financing strategies is ensuring a loss can be covered when they occur, usually by transferring that risk to an insurer or other third party.

Evolving Role of Insurance

Originally, insurance companies created products based solely on the idea that companies purchased policies as a way to transfer risk. However, with the advancement in the science of risk management, a company may be able to use certain insurance policies for other reasons. Other benefits for obtaining insurance products include:

  • Putting a joint venture partner at ease
  • Easing the mind of a customer
  • Government regulations
  • The ability to work with claim-handling experts
  • Receive cash flow benefits

Risk financing is only one benefit you can receive from corporate insurance. Contact the experts at AW Welt to learn how insurance products can help your company with your evolving risk management needs.

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