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Risk Management

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Managing risk for your business should always be the first step when formulating a solid financial plan. In order to reach the financial success you desire for your business, it’s imperative that all assets are properly protected. 

Protecting Your Business

Managing risk for your business should always be the first step when formulating a solid financial plan. In order to reach the financial success you desire for your business, it’s imperative that all assets are properly protected. 

risk managementOwning and operating a business can come with a variety of financial risks, such as liability or lawsuits—and both can be time-consuming and expensive. The median costs for a business lawsuit start at $54,000 for a liability suit, and can reach around $91,000 for the median contract dispute. Other risks, such as natural disasters, can cause serious damage and potentially destroy a business.

According to the United States Small Business Administration (SBA), around 25% of businesses do not reopen following a disaster—such as an earthquake, flood, fire, water damage, burglary, or public health emergency.

If and when a risk becomes a reality, a business with a well-prepared financial blueprint can mitigate a risk’s impact. As a result, lost time, money, productivity, and assets can all be minimized.

Common Business Risks

Some risks are common to most or all businesses, while others are very specific to their industry. The best way to approach business protection is to begin with a standard risks checklist, then create additions as needed. 

    • Property Loss
    • Business Interruption Loss
    • Key Person Loss
    • Injury to Employees
    • Lawsuits
    • Bankruptcy
    • Natural Disaster

Types of Protection

Individual Health Insurance
Life Insurance
Key Man Coverage
Disability
Coverage
Property Casualty

Even for the smallest company, safeguarding against these risks is essential for the protection and maintenance of its financial health. Insurance coverage and protection is available for every potential risk your business might face. 

    • General Liability Insurance
    • Property Insurance
    • Business Owner’s Policy
    • Worker’s Compensation 
    • Liability Insurance
    • Life Insurance
    • Disability Insurance
    • Buy-Sell Agreement

If your business suffers a loss and has no insurance or improper and insufficient coverage, there is very little your financial architect can do to assist you. You must be prepared for the inherent risks of any business, as well as the losses they can potentially cause. 

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