Some examples of risk are personal and professional liability, business ownership, property loss and catastrophic illness or disability.
1| First line of defense: Identify your sources of risk
WEALTH – Lawsuits, accidents, property damage and other financial risks are facts of everyday life. Asset protection planning looks to transfer the risk of these events through: insurance, repositioning asset ownership and other protections available under the law.
BUSINESS – Starting and running a business carries its own set of risk exposures. Certain factors can have a huge impact on the safety of your personal assets are from, risk. For example: business entity type, state laws, business management strategies, human resource and taxation.
GENETICS AND LIFESTYLE CHOICES – Genetics and lifestyle affect your risk profile. Being overweight, eating poorly, failing to exercise, smoking, driving unsafely and not wearing a seatbelt and taking appropriate safety measures can increase your insurance premiums. On the other hand, making healthier lifestyle decisions can help to reduce your insurance premiums.
2| Second line of defense: Avoid or minimize the major exposures
3| Third line of defense: Insurance