Risk has three different meanings in commercial insurance policies. It refers to the uncertainty if a loss or injury will occur. Risk can refer to the uncertainty of future returns when considering a financial investment. In insurance terms it can also be used to refer to a person or the peril insured.

The high risk driver is one with many convictions/tickets or at fault accidents. A low risk driver would be one with many years of no claims history and no tickets or convictions. An experienced driver is also regarded as a lower risk then a newly licensed operator.

In regards to business insurance the exposure to a possible loss because of a hazard such as a liquor store next door will affect the measure used to rate the premium base of a risk.

A broker or agent can help you determine your risk. You can also use a risk manager whose position is to determine the whole aspect of your business and will advise you on what areas need insurance.

Risk management is up to you. Take control of your insurance. Ask questions and get answers that you fully understand. If you need help, ask your agent or broker.