Do You Really Know What You Are Risking?

A couple of years ago, a friend called and asked to have lunch. We met and during the conversation I learned the reason for the meeting. My friend was selling and offering me investment opportunities paying a 100% return on the investment made. Despite the promise of significant returns, I told my friend I was not interested and shared an important principles I use to evaluate any opportunity.

I never risk more than I am willing to lose.

My friend didn’t know it, but the “investment opportunity” was a multi-state Ponzi scheme. The investors, including my friend, lost 100% of what they put in. I dodged the bullet.

A client of our agency had the same experience not too long ago. After reviewing a construction contract for him, we made important suggestions to reduce the risk posed by the contract. The Contractor wouldn’t bend. Being unable to have the terms of the agreement modified to reduce risk he should not have been responsible for, the client chose not to sign the contract and walked. Even with all the work he put into winning the contract, he was unwilling to take a gamble on this project. To him he would be risking more than he was willing to lose.

Good move by our client as the Contractor who would not modify the agreement was eventually thrown off the job by the owner. None of the subcontractors were paid. Our client was not out the contract price nor did he have to pay legal fees to recover what he would have been owed because of his wise decision to avoid the risk the contract presented.

How about you? Do you understand what’s in the contracts you sign? Are you concerned that a couple of words in the contract you’re signing will come back to haunt you?

Will you be risking more than you are willing to lose by signing the contract that’s on your desk right now?

You can be confident and understand contracts. We help our clients know what they are getting themselves into by helping them navigate all the risk they face on a daily basis – not just the one’s covered by an insurance policy. Our goal is to be the one that comes along side you to help you. It’s a unique and different approach that we look forward to discussing in greater detail with you.

In the meantime, you will find a link below for a free resource we provide our clients to help them navigate the world of contracts. We want you to have it since we are passionate about helping businesses stay in business.

Understanding Construction Contracts

Idemnity Agreements and Additionally Insured Endorsements

With Experience Comes Knowledge

Robertson Insurance & Risk Management, formerly Avis Insurance, has met the insurance needs of businesses and individuals for over 30 years. At our inception, there were only two employees. We have grown dramatically in size and in the geographic area we serve, but we have not lost our perspective — every customer is important.

That's why when we say we want to have a conversation that goes beyond price and coverage, we are proposing to engage in a process that goes beyond an insurance policy.   When your risk program requires insurance, we have the experience and knowledge that builds trust with our clients that provides peace of mind knowing they are protected and have a plan to recover after a loss.

Call us today at 717-625-3770