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Morgan Hege Insurance Agency

The "ART" of Risk Management

There is an art to managing your risk. The strategy is known by the acronym ARRT because it's four steps; Avoid, Reduce, Retain, and Transfer. By implimenting our risk management process, our clients save on thier insurance premiums, have fewer claims, and are able to protect their households, grow their business, and save money.

At Morgan Hege Insurance Agency, we act as risk manager for our clients. We discuss valuable industry insights and share them with you to learn from others mistakes, and protect your assets. Our goal is to become your trusted adviser in regards to your insurance portfolio and provide innovative stategies to help you mitigate claims. Let us keep you financially well protected.

Avoid Risk

You probably already avoid many risks without without even thinking about it. You probably don't skydive or hang glide. You probably don't jump out in the street in front of on coming traffic, and if you do, we should talk about an accident and life insurance policy for you. There are ways to avoid risk all together, for example, by not getting your teenage driver a sports car. Some risks simply out weigh the rewards. By avoiding certain risks all together, you help reduce your insurance premium costs, and the likelihood of expensive and frustrating claims. Learn more about our risk avoidance strategies.

Reduce Risk

In many cases, this is more realistic. If you avoided buying a home because it backed up to a canyon with a lot of brush exposure, you avoided risk, however if you clear away the brush 500 feet from the back of your property, you've successfully reduced the risk. Depending on the type of exposure you are trying to insure, we spend most of our time when discussing risk management working with clients to help them reduce their risk exposure. Discover or recommendations on reducing risk.

Retain Risk

Once we have successfully helped you avoid and reduce your risk, we can discuss options on retaining risk. Obviously the more risk you retain, with higher deductibles or co-pays for example, the lower your insurance premium will likely be. However there is a fine line, and a diminishing return, and so we are happy to discuss strategies to retain risk to help reduce costs, but not so much as to defeat the advantages of having insurance protection in the first place. Find out how we advise our clients to retain certian risks.

Transfer Risk

Risk Transfer is most often accomplished with an insurance solution. With risk transfer, you are buying a policy to pay out in the event of a claim. Obviously you may have retained some risk in the form of a deductible, and you will still be inconvienced in the event of a loss. But having your home covered for $500,000 if it burns to the ground, is much better than oweing the bank the money if you no longer have use of the house.

Cal. Civ. Code ยง 1798.102 - Do Not Sell My Personal Information