Southwest Insurance Service

Risk Management

Risk management should be the cornerstone of your insurance program. We believe that there are three essentials for any person to consider in buying the proper insurance:

Never risk more than you can afford to lose.

Do not risk too severe a loss when probability of loss is low. Premium costs are also low.

Consider self-insuring all or part of a loss where probability for loss is high and severity is low. Premium costs will be relatively high.

There are three main methods of handling the various exposures that you face:

Assuming the Risk Yourself

This method can only be chosen after you measure what financial impact a loss would create for you. When the possible severity of loss is great, the risk should be transferred. When the possible severity of the loss is small, assume the risk. Losses above a certain amount would be insured. Losses below that amount would be handled by you.

Reducing the Risk

This method involves a loss prevention program. When likelihood of loss is high, reduction through loss prevention techniques is the best way to deal with the exposure. An established program can aid in reducing premiums paid by reducing losses.

Transferring the Risk

This method allows you to transfer the risk to an insurance company or another party. When the possible severity of loss is great the risk should be transferred.

We would be glad to assist you at any time in evaluating your exposures and establishing your risk management policy and program.

Southwest Insurance Service

146 Third Street
PO Box 369
Balaton, MN 56115

Toll Free:
Phone:
Fax:

800-734-6224
507-734-2244
507-734-2245

Email: steve@southwestins.com

Important Note: This website provides only a simplified description of coverages and is not a statement of contract. Coverage may not apply in all states. For complete details of coverages, conditions, limits and losses not covered, be sure to read the policy, including all endorsements.

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