2. Assess Your Community's Risks
Risk management involves identifying, analyzing and
evaluating potential areas for loss and then implementing
methods for mitigating them. Insurance is one way to manage
risk, but it's not the only way.
Below are some common areas of risk along with additional
options for controlling them.
• PROPERTY. Trimming vegetation 30 feet around the
perimeter protects buildings from fire; hurricane shutters
protect windows from storms.
• LIABILITY. Maintaining sidewalks minimizes the
opportunity for people to trip and fall.
• INCOME. Segregating accounting functions and
requiring dual signatures on checks over a certain
amount guards against fraud.
• PERSONNEL. Conducting safety trainings with all
maintenance employees reduces the likelihood of
workers' compensations claims.
Your board shouldn't try to complete a risk management
assessment independently. To make sure the process
successfully identifies every area of risk and all appropriate
control methods, work with your community manager,
insurance professional and attorney. Their expertise makes
them excellent resources.
4 Steps to Ensure Comprehensive Community Insurance Coverage
