By Marie King
Wikipedia defines a risk management plan (RMP) as “a document that a project manager prepares to foresee risks, estimate impact and define responses.” If you don’t have a RMP, you need to develop one. Once you have created a RMP, then you should review it with your roofing insurance agent.
Your contractors’ insurance includes your general liability and workers’ compensation. These two types of coverage form the backstop for your risk management strategy. That’s why it’s crucial to consult your roofing insurance agent when evaluating your risk management plan.
What you want to find out from your roofing insurance agent focuses on three questions. One, is your RMP in accordance with industry regulations? Regulations impact on risk management, and your agent might be aware of regulations that you’ve overlooked. Two, is there any improvements that your agent could suggest to your safety plan? Most importantly, three, how do general liability and workers’ compensation claims impact on each of the policies?
When you develop a RMP, there are four strategies that you use to mitigate liability:
A risk assessment matrix defines the probability and severity of harm and specifies what the response will be to these issues. Risk is assessed on four levels, and these assessments can be done project-by-project, quarterly or annually; whichever timeframe yields the most meaningful data.
Risk-assessment levels consist of the following categories:
Your roofing insurance, which consists of your general liability and workers’ compensation, makes up a major part of your risk-management strategy. However, a safety plan, risk- assessment matrix and risk-management strategies comprise the package of steps that you need to complete to protect your company against unexpected liabilities.