Insurance Risk Management

Insurance is risk transfer, not risk elimination, and the gap between those two ideas is where most claims disputes begin. A policy moves financial consequence to an insurer; it does nothing about the underlying exposure, the operational disruption, or the reputational damage that follows a loss. Treating a certificate of insurance as a completed control is one of the most common mistakes in a risk register.

This section leans practical rather than theoretical. Much of it covers builder’s risk and construction insurance — who pays, how cover works during renovations, and what state-specific rules change — alongside cyber insurance assessment, insurance for crypto custody, NYDFS Part 500 obligations for brokers, and the underlying principles of risk management and insurance.

It sits alongside risk assessment, which is where you decide what is worth insuring in the first place, operational risk for the loss events insurance is meant to absorb, and enterprise risk management for the portfolio view that shows whether your retained exposure is actually within appetite.