What are different types of risk management insurance?

The organization seeks to minimize its exposure to loss of applications of risk management strategies. The most common of these is risk management insurance, which protects the organization by sharing exposure with the insurance company in exchange for bonuses. The main types of risk management insurance include liability and property insurance and secondary types may include the cover of natural disasters that are not part of normal property insurance such as flood insurance or earthquakes. These types of coverage are often referred to as disaster insurance. On the part of liability, directors and officers (D&E) are a common type of secondary risk management. For example, the manufacturer may need not only real estate insurance, but also a specialized liability product such as products and completed operating coverage. IT may also require special product coverage in transit, tools and equipment outside the company's assets or specialized equipment. An organization that relies strongly on a single keyA person could consider coverage of a key person, a product for life and disabilities, and a charity organization often seeks to protect members of the Board of Directors through coverage of D&J.

In addition, geography can play an important role in the types of risk management that are suitable. Earthquake insurance is a popular supplement to real estate insurance at places that lie along active failure lines. Flood insurance is often part of the insurance package for risks in coastal areas or inland areas specifically determined as a high -risk government authority. In many areas that are threatened by wind or hurricane damage, this coverage must be added separately to the real estate fuse.

Geography also comes into play when a political risk is taken into account. Many multinational companies use the risk management strategy to help them evacuate JEjich staff in the case of political unrest. Companies that have employees in high -risk areas include hostage coverage in their insurance risk management packages.

One line of risk management insurance that has grown is the coverage of cyber risk. Companies were increasingly aware of the possibility of a computer -based theft called cyber theft that is not limited to theft of funds. The aim is often theft of sensitive information about the client or member. Companies may find themselves responsible for the loss of this information if it is stolen and causes damage to the client or member. Cyber ​​risk coverage has become a larger part of the risk management programs of many companies.

There are almost as many types of risk protection such as risks in the world. Most of which are available through reputable insurance carriers, but sometimes the organization encounters a unique or extremely rare exposure. TOThis happens, insurance companies are sometimes willing to develop new coverage for this particular situation. These situations often become more common and a new series of coverage is born. For this reason, risk management insurance is a constantly developing series of coverage that help organizations reduce their exposure to their loss.