Insurance Risk Management: The Framework – The Insurance Policy: Part One

Let me ask a question. What stands between you and protecting your company’s financial assets?

If you are using an insurance policy as a means and maybe the only means, to transfer risk, then the answer could be your insurance policy!

Let’s see why…

Every word in this document means something and the insurance company knows what every one of those words mean and how to use them… potentially against you.

The insurance policy is a contract. 

Don’t let the word “policy” fool you into thinking otherwise. What’s contained in the contract will determine how much protection you have when a loss occurs – how, when and how much you will get indemnified (paid). 

Once you have a claim, your “policy” becomes a “contract”. See the difference?

We’ll go into a bit more detail in the next part of this series.