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Insurers are very interested in how you manage risk across your organisation. A business that can demonstrate a positive and consistent approach to risk management is more attractive to them than a business that does little to reduce their exposures.

OF COURSE, NO BUSINESS CAN PREDICT EVERY POSSIBLE RISK SCENARIO, but there are some key areas where it is possible to put risk management measures in place, or enhance the arrangements you already have.

Health and safety — build it into your culture

Establishing a health and safety culture can help reduce the risk of accidents, injuries and complaints – and therefore claims. Training courses are available to help business owners achieve this, such as certified training courses from the Institute of Occupational Safety and Health (IOSH), namely IOSH Managing Safely® and IOSH Safety for Executives and Directors. These courses can help you build health and safety into your everyday operations.

Driving risks — encourage and incentivise safer driving

If your business has a vehicle fleet, ensure your drivers receive the appropriate risk management training.

By TOM JONES

By using eco-driving and defensive driving techniques, drivers can help reduce the number of accidents on the road, while also developing more efficient and sustainable driving habits. Telematics, which involves the use of technology to monitor and track driver behaviour, can also play a part in promoting safer driving and reducing carbon emissions. Some telematics systems can reward drivers personally for safer driving.

Human resources — equip your HR team

Keeping up-to-date with employment law can help you manage and mitigate the risks your company could face, for example, in areas such as discipline and grievance, and discrimination. Knowing how to handle the common relationship issues at work can help prevent a claim scenario arising. In addition, investing in employee wellbeing (which should be intrinsically linked with your health and safety culture) can play a part in reducing the risk of employers’ liability claims.

Business continuity — build a robust plan

A well thought out and tested business continuity plan (BCP) can help you protect your business and people, by providing a framework for incident management and decision-making.

Key areas of your plan may include your critical IT staff and networks, your supply chain and your business interruption insurance indemnity periods. Again, evidence of a robust BCP is a welcome sight for insurers, as it demonstrates your ability to keep things moving, should the unexpected happen.

Cyber liability — strengthen your digital armour

A constantly shifting cyber risk landscape demands continuous risk management. Working with a specialist in cyber risk can help you improve your network security and reduce the risk of cyber incidents (either malicious or accidental). The cyber insurance market is challenging and insurers look more favourably on businesses that can demonstrate they have the necessary protocols in place to help protect their organisation.

Every business is different in terms of its risk exposures, so it’s important to carry out a risk assessment to highlight the actions you may need to take. Then, through implementing and evidencing your risk management approach, you can demonstrate to insurers the areas in which your business might be less likely to make certain types of claims.

This proactive attitude to risk management could also help you to access a wider choice of insurers and ultimately achieve a satisfactory balance between cost and cover.

Tom Jones Gallagher Tom_Jones1@ajg.com

07752 470 406

ajg.com