Making an Informed Decision

Risk is the product of the probability of a potential loss occurring and its corresponding severity or consequence. Insurance is a tool that is commonly used to manage risk. However, simply buying insurance to address all known elements of risk is not prudent. Buying unnecessary insurance is wasteful. Conversely, uninsured key assets and severe exposures to loss can bring about financial ruin. A well thought out insurance program provides the balance between these two conditions. 

Five major phases are involved:
• Identify exposures to loss, damage and expense
• Analyze data to determine frequency and severity of potential losses
• Reduce or eliminate risk
• Develop strategy to finance losses when they occur
• Implement and manage the plan, and monitor its results

The First Phase of the plan will be to identify the possible loss scenarios you face. Loss can come from property damage, legal actions, reduced income or increased expense. We will gather the information to identify potential causes of loss and to evaluate their corresponding impact on you.

Phase Two involves analyzing the data gathered during Phase One. We will determine your unique tolerance for risk; especially as it applies to how much risk you are willing to accept.

Reducing or eliminating risk is the focus of Phase Three. The obvious benefits include avoiding loss or injury and controlling insurance costs.

Phase Four determines how losses that do occur will be financed. This will ensure that there is no major impact on your overall financial plan. Solutions may include treating losses as a current expense or purchasing insurance.

Phase Five is program administration. During this phase we put the plan into operation and monitor its performance and relativity as your needs change.

The Falcigno Group, LLC
14 Peck Street
P.O. Box 436
North Haven, Connecticut 06473-0436
203 239 2576
203 234 7386 fax
falcigno@falcigno.com

© 2007 The Falcigno Group, LLC