Every business faces risks—whether it’s financial, operational, legal, or reputational. While insurance helps protect you when things go wrong, risk mitigation is about taking proactive steps to reduce the likelihood of those events happening in the first place.

Here are some of the ways businesses can look to mitigate risk:

1. Identify Your Risks

   Start by assessing the specific risks your business faces. These could include physical, legal, financial, cyber, and operational risks.

2. Create a Risk Management Plan

   Develop a plan to manage identified risks. This might include safety protocols, regular maintenance, management of contractors, particularly hot work activities, clear contracts, backup systems, and emergency procedures.

3. Invest in Security

   Install physical security measures like monitored fire and intruder alarms and CCTV, and digital protections like firewalls and antivirus software. Train staff on cybersecurity best practices.

4. Stay Compliant

   Ensure your business complies with all relevant laws and regulations, including health and safety, employment laws, and data protection.

5. Keep Good Records

   Maintain accurate records of financial transactions, contracts, insurance policies, incident reports, and staff training.

6. Review Your Insurance Regularly

   Review your policies annually or whenever your business changes. Make sure your cover matches your current needs. Always read your policy documents in full to be sure you know and understand any special conditions to be sure you can and will be able to comply with them.

7. Be Vigilant of Common Pitfalls

   When reviewing your insurance, have a mind to the common pitfalls like underinsurance and overinsurance to be sure your sum insured is right.