1) A family head may die prematurely because of a heart attack.
Techniques for managing risk:
- A family head should live in a healthy lifestyle such as exercise regularly, eat healthy food and do medical check up frequently to reduce the chance of dying prematurely from a heart attack.
- Life insurance can also be used, which reduces or eliminates the financial consequences to surviving family members if a family head dies prematurely.
The family member still can survive even if a family head die prematurely.
2. An individual’s home may be destroyed in hurricane.
Techniques for managing risk:
- Property insurance which is dealing with the risk of hurricane.
- Retention by owner can also be used by purchasing the policy with a deductible.
3) A new car may be severely damaged in an auto accident.
Techniques for managing risk:
- Collision insurance is an effective way to deal with exposure.
- Loss prevention by following the safety rule on the road & drive defensively.
- Retention by purchasing the policy with a deductible for collision losses.
4) A negligent motorist may be ordered to pay a substantial liability judgement to someone is injured in auto accident.
Techniques for managing risk:
- Private passenger auto insurance protects the insured against liability arising out of auto accidents that cause property damage or bodily injured to others.
- Medical expenses coverage and uninsured motorist coverage are also available.
5) A surgeon may be sued for medical malpractice.
Techniques for managing risk:
- Professional liability insurance should be purchased by a surgeon that protect against malpractice lawsuits or lawsuits that results from substantial error or omission.