Traditional insurance provides you with a lot of coverage options and peace of mind, but it’s not always the best fit for your business. Often, companies in specialized niches or those in small industries that are not well known have risks that large general insurance providers don’t anticipate. As a result, coverage that truly fits your needs can be tough to find. That’s where alternative risk services can provide you with the options you need, by offering you routes to risk management that sidestep traditional insurance policies.
Common Risk Management Alternatives
For some industries, professional bonds provide a backbone service that also functions as an alternative risk management strategy. If your industry doesn’t tend to use bonds, the most common types of alternative option are captive insurers and self-insurance plans. In both cases, you essentially fund your own insurance policy, so you can control the coverage and make it suit your actual risks. Captive insurers are often easier to fund as a small company, because you can partner with other businesses to split costs, but self-insurance plans offer more control.
Adjustable Premium Plans
Some insurers also offer loss-based plans that allow you adjust your premiums based on your actual losses during an insurance period. With these options in hand, it gets a lot easier to make sure you are fully covered against foreseeable risks to your business.