In the case of operating an automobile, a failure or accident can cause damage to the car itself, injury to the driver, damage to property and other vehicles around it, injury to other drivers and pedestrians, traffic, etc. Insurance is the thing that keeps accidents and failures from impacting the insured and those around them from suffering the full brunt of these losses. Without insurance, losses create economic uncertainty, the disruption/destruction of growth, pain, suffering, and so much more.
In other words, you sign a contract to pay a small sum of money now for a much larger amount of potential money if you suffer a loss.
Well, you’re not alone. Many other organizations or individuals like you buy policies. Not everyone suffers a loss, thankfully, so the Insurance Company pools everyone’s money together to pay for the losses, the company’s expenses, and some amount of profit. Without the pooling of money and the availability of a much larger sum of money when you suffer a loss, you or your organization would have to deal with the full impact of a large claim without any help.
A deductible is the amount that the insurance buyer must pay out of their own pocket for each claim. There are several reasons Insurance comes with a deductible (not all insurance policies do, but most include some form of deductible):
The answer here is almost limitless. New insurance products become available every year. And outside of traditional insurance, Wall Street and other financial markets have created all sorts of exotic insurance vehicles to provide protection or hedge against losses. We will focus on the more main street, traditional, and universally available corporate & commercial insurance solutions here:
The most important ways of determining which insurance to choose focuses on how your organization operates, where the largest risks are, what solutions are available to address those risks, and if there are any alternatives to buying insurance for those risks.
Insurance is a catch-all word that refers to all of the options that are out there. It includes the various types of insurance as well as each of the more specific products available within those types. Treadstone Risk Management’s goal isn’t to simply sell ‘Insurance’. If that were the case, we would pick a handful of insurance products that sold well and would try and get everyone and anyone to buy them. We tailor insurance solutions to our clients' needs and seek the best value in the solutions that we recommend.
To start, some insurance is always better than no insurance at all. So this isn’t an all-or-nothing situation. One-size-fits-all insurance products are quick, cheap, and easy to purchase but there’s a reason they’re quick, cheap, and easy. The reason is that they are designed for the average buyer. Unfortunately, 99.9% of buyers aren’t the average buyer and they find that out only after they run into an issue with a claim or loss. In addition, when you try and fit together cookie-cutter policies to cover multiple things, they can conflict, overlap, or leave you completely unprotected to a loss you thought you would be covered for.
Our goal is to build a Risk Management and Insurance Program that is tailored to each one of our clients’ needs. Insurance Solutions are specifically targeted insurance policies and products that meet these needs. To take it further, the collection of these policies and products need to work together in concert so there are no ‘holes’ or ‘gaps’. Treadstone takes a holistic approach to this process.
An Insurance program that compliments the Risk Management activities we recommend to reduce the likelihood of certain losses, reduce their costs if/when they do happen, and dramatically reduce the threat of disruption or catastrophic failure for your business or organization.
For most risks but not all. That is why Treadstone also brings solutions to the table that include Risk
Management Services and Insurance Alternatives.
CEO of Bajaj Allianz General Insurance
CMO for TrustedChoice.com & Agency Nation
CEO of Tesla & SpaceX
NOT SO FAST! Harkening back to the car example at the beginning, Insurance Solutions and Risk Management Programs require routine maintenance to make sure that they’re operating properly. Coverage and what is covered needs to be updated, new business practices need to be factored into the overall program, and industry/economic changes can influence what solutions are available and for what price.
That is why Treadstone Risk Management focuses on building a long-term relationship with its’ clients to help with both the construction and yearly maintenance of the solutions we provide.
We want your business or organization to keep performing at a high level and hopefully growing. In that way, Treadstone is your partner. If you succeed, so do we!