Risk Management

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1

Insurance

Objectives

• Risks and how to approach managing risks

• Importance of obtaining adequate insurance

• Primary types of insurance

• Best practices

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Legal and Regulatory Risks

• Torts

• Crimes

• Statutory/regulatory compliance

• Contract

How to Think about Risks

• Exposure/consequences

• Likelihood of occurrence

• Ways to manage: – Accept/ignore

– Transfer

– Mitigate

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What is Insurance?

• Insurance is a risk management scheme where the insured transfers the risk to an insurance company in exchange for payment of a monetary premium

Types of Insurance

• First-party insurance

• Liability insurance

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Types of Insurance

• First-party insurance

• Liability insurance

Summary and Best Practices

• Insurance company may not always have same interests

• Implied duty of good faith and fair dealing

• Get separate counsel when interests diverge