Managing Your Risk
Life is full of risks. Some of these are risks we eagerly take on, as they are opportunities to learn new skills, prosper financially and have fun. Others, such as the risk of accident or natural disaster, can be devastating and costly.
Surviving the misfortunes that come our way with minimal financial loss depends on proactively managing risk over the long term:
- Transfer your risk. When you buy an insurance policy, you're in effect transferring specific risks to the insurance company. If you suffer a loss due to fire, theft or other covered peril, the insurer will compensate you or restore the property to pre-loss condition. Without insurance, you might not be able to recover financially from a major loss. That’s why banks will insist on insurance coverage before loaning money to buy a home or expand a business.
- Reduce your risk where possible. Many losses are preventable. Keep your property well-maintained and hazard-free to help prevent losses from water damage, fire and other perils. Advise your insurance broker of changes such as a renovation so that your coverage can be updated.
- Be prepared in an emergency and/or mass evacuation. Have a grab-and-go kit ready so that you and your family can leave quickly or survive for at least three days without power, running water or communications.
- Have a rainy-day fund. Maintain a good credit rating and claims history. Have funds set aside, or have a plan for accessing sufficient funds, to pay your insurance deductible so that you can start your insurance claim quickly after a loss.
- Keep important documents safe and maintain a household inventory to assist in the claims process.
Insurance brokers are risk managers who can obtain the right insurance coverage for you and provide advice on mitigating risks. Follow these links for some basics and contact your insurance broker for more information. Find an insurance broker near you.
Additional Resources - covers consumer tips, road safety, emergency planning, homeowner information and other topics related to insurance and risk management.