Insurance is a small part of the whole Risk Management process. It allows your organization to receive financial compensation in case of loss, but it doesn't prevent incidents from happening. Insurance should be viewed as a “safety net” rather than a preventive measure.

Identifying your risks and taking out the right insurance will help protect your business from financial loss and minimize exposure. Risks that have major consequences but are unlikely to happen are often insurable.

Risk management encompasses a wide range of strategies, with insurance being just one of these strategies.

Here are common forms of insurance and the risks they cover:

• Property & Casualty Insurance: Mitigates losses from fire, theft, and natural disasters.
• Key Executive Insurance: Protects against losses due to the death or incapacitation of a management team member.
• Errors & Omissions Insurance: Covers lawsuits from disgruntled customers.
• Directors & Officers Insurance: Mitigates lawsuits related to negligence, harassment, or discrimination.
• Public Liability Insurance: Covers financial risk of being found liable to a third party for injury, property damage, or economic loss due to negligence.
• Workers' Compensation Insurance: Compulsory in Australia, it covers accident and sickness insurance for employees and certain contractors.
• Personal Accident and Illness Insurance: Crucial for self-employed individuals not covered by workers' compensation insurance.
• Motor Vehicle Insurance: Compulsory for third-party injury liability coverage for business vehicles.
• Burglary Cover: Protects business assets against theft.
• Professional Indemnity Insurance: Essential for businesses providing professional advice.
• Fidelity Guarantee: Covers losses due to employee embezzlement or theft.
• Machinery Breakdown Insurance: Protects against losses from plant and machinery breakdowns.
• Product Liability Insurance: Provides cover for injury or damage caused by products your business sells, supplies, or delivers (including repairs and services).