Use a water leak detection system with an automatic shut-off valve, not just a simple alarm.
A Smoke Alarm vs. a Home Sprinkler System.
A simple water alarm is like a smoke detector. It’s a great tool that will scream loudly to tell you there’s a disaster in progress. But it does absolutely nothing to stop it. A water leak detection system with an automatic shut-off valve is the home sprinkler system. The moment it detects a problem—a burst washing machine hose—it doesn’t just scream for help. It takes immediate, decisive action, shutting off the water main to your entire house and stopping the flood in its tracks. It’s the hero that prevents the disaster, not just the witness that watches it happen.
Stop leaving your car unlocked with valuables inside. Do adopt a “clean car” policy and always lock your doors instead.
The Open “Pie on the Windowsill” vs. the Locked Fridge.
Leaving your car unlocked with a laptop or a purse on the seat is like leaving a freshly baked pie on an open windowsill with a giant sign that says “FREE PIE.” You are creating an irresistible temptation for a simple crime of opportunity. A thief doesn’t have to be a master criminal; they just have to be hungry. A “clean car” policy, where nothing of value is visible, and locked doors is like putting that pie away in a locked fridge. The thief glancing inside sees nothing to steal and simply moves on to an easier, more inviting target.
Stop just having smoke detectors. Do have a documented and practiced fire escape plan for your family instead.
The Fire Alarm vs. the Fire Drill.
A smoke detector is the fire alarm bell at school. It is loud, it is essential, and it tells you that there is a danger. But the bell alone has never saved a single life. It is the fire drill—the practiced, known escape routes, the designated duties, and the safe meeting spot—that gets everyone out of the building safely. A documented and practiced fire escape plan is your family’s fire drill. It turns the chaos, panic, and smoke-filled confusion of a real fire into a calm, automatic, and life-saving response.
The #1 secret to preventing a devastating lawsuit that insurers know is meticulous documentation of everything.
The Unblinking Security Camera vs. the Foggy Human Memory.
After an incident, a lawsuit becomes a messy “he said, she said” battle of foggy memories. The secret that every insurance company knows is that the person with the best records wins. Meticulous documentation—the safety training logs you kept, the incident report you filled out immediately, the photos you took of the scene—is the high-definition, unblinking security camera footage of the event. It replaces unreliable human memory with a cold, hard, and undeniable record of the truth, often stopping a potential lawsuit long before it is ever filed.
I’m just going to say it: The “it won’t happen to me” mindset is the single biggest uninsurable risk you have.
Driving with Your Eyes Closed and Believing You’re Safe.
Believing “it won’t happen to me” is the mental equivalent of driving down the highway with your eyes closed, convinced that you are such a good driver that you can avoid any potential crash. It is the one risk that no insurance policy in the world can protect you from. Insurance is a powerful tool to protect you from the financial consequences of a crash, but the mindset of invincibility is the broken steering wheel that makes the crash almost inevitable. It is the one belief that guarantees you will be completely unprepared for the statistical certainty of life’s accidents.
The reason your business is at risk for a cyber attack is because you’re ignoring basic employee training on phishing.
The Fortress with Untrained Guards at the Gate.
You can spend a fortune on the best digital firewalls and security software. This is like building a massive, impenetrable stone fortress around your company’s data. But your employees are the guards at the front gate. A single, untrained employee who receives a clever “phishing” email is like a naive guard who willingly opens the main gate for a smiling enemy soldier who is disguised as a friendly baker delivering a cake. The most common and devastating cyber attacks don’t break through the wall; they are politely invited in right through the front door.
If you’re still using a charcoal grill on a wooden deck, you’re losing your home to a preventable fire.
Don’t Build a Campfire on Your Living Room Rug.
A wooden deck is essentially an outdoor extension of your house, built from the exact same flammable material. Using a charcoal grill on that deck is the equivalent of building a small, open campfire on your living room rug. You might get away with it ninety-nine times, but the one time a hot ember escapes or the grill gets knocked over, you have a raging, unstoppable fire attached directly to the side of your home. It’s a completely preventable disaster that is one of the leading causes of devastating house fires.
The biggest lie you’ve been told is that a home security sign in your yard is as good as a monitored alarm system.
The “Beware of Dog” Sign vs. the Actual Growling Rottweiler.
A security sign in your yard is like a “Beware of Dog” sign on your fence. It might be enough to scare off a timid, amateur intruder. But a professional burglar knows it is often just a bluff. A real, centrally monitored alarm system is the actual, 200-pound, growling Rottweiler on the other side of that fence. When the alarm is triggered, a signal is sent to a monitoring station that immediately dispatches the police. One is a simple suggestion; the other is a real, tangible, and immediate consequence.
I wish I knew to check the grade of the land around my house before I bought it to assess flood risk.
The Bathtub That’s Waiting for the Faucet to Be Turned On.
The land your house is built on is not flat. If your house is situated at the bottom of a gentle slope, it is sitting in the bottom of a giant, grassy bathtub. You might not notice it on a sunny day, but the first time there is a torrential downpour, all the water from the surrounding area is going to flow downhill and collect right at your foundation. Understanding the simple physics of water and gravity and looking at the “grade” of the land is the easiest way to predict a future flood that has nothing to do with a river.
99% of homeowners make this one mistake: they don’t clean their dryer vents annually, a leading cause of house fires.
The “Chimney” in Your Laundry Room That’s Full of Tinder.
You would never let the chimney for your fireplace get completely clogged with dry, flammable material. Yet, that is exactly what is happening inside the long, flexible tube that runs from your dryer to the outside of your house. Every single load of laundry deposits a small amount of highly flammable lint into that vent. Over a year, that builds up into a massive fire hazard. A simple annual cleaning of that hidden “chimney” is the single most effective way to prevent one of the most common and devastating types of house fires.
This one small action of replacing the water supply lines to your washing machine with braided steel hoses will prevent a catastrophic flood.
The $20 Upgrade That Can Save You $20,000.
The cheap, black rubber hoses that came with your washing machine are silent, ticking time bombs. They are under constant, high pressure, and when they inevitably fail, they can dump hundreds of gallons of water per hour into your home, causing a catastrophic, multi-floor flood. For less than $20 and ten minutes of your time, you can replace them with durable, steel-braided hoses that are virtually burst-proof. This one, simple act of preventative maintenance is the most effective way to protect yourself from one of the most common and destructive insurance claims.
Use a dashcam in your car to manage the risk of a fraudulent accident claim, not just relying on your memory.
The Unblinking, Unbiased Witness in Your Windshield.
After a car accident, the other driver’s story can magically change when they talk to their insurance company. A dashcam is the ultimate, silent, and unbiased witness that busts these myths. It is a tiny robotic court stenographer that records the exact, impartial truth of what happened. The clear, undeniable video footage of the other driver running the red light or swerving into your lane is an ironclad piece of evidence that can instantly prove your innocence, saving you from a fraudulent claim, a rate increase, and a massive legal headache.
Stop letting your teens text and drive. Do install an app that blocks phone use while the car is in motion instead.
You Can’t Just Hope the Pilot Won’t Get Distracted.
Telling a teenager not to text and drive is like politely asking a pilot to please try not to get distracted while they are flying the plane. The temptation is too great, and the consequences are too catastrophic. You need to take the temptation away. There are numerous apps you can install that will automatically block a phone’s ability to text or use social media the moment the car starts moving. It is the technological equivalent of locking the phone in a box until the plane has safely landed.
Stop ignoring that small leak under your sink. Do fix it immediately to prevent a massive mold and water damage claim instead.
The Slow Drip That’s Secretly Destroying Your House’s Foundation.
A small, slow drip under your sink seems like a minor annoyance that you can get to later. This is a huge mistake. That slow drip is silently feeding a hidden colony of toxic mold, rotting the wood in your cabinets and subfloor, and creating a massive, expensive disaster zone. Insurance policies are designed to cover the sudden pipe burst, not the slow, gradual rot that is considered a preventable maintenance issue. Fixing that small drip immediately is the key to preventing a huge, and likely uninsured, mold and water damage claim.
The #1 hack for preventing theft is making your home look occupied when you’re away with timed lights and holding your mail.
The Burglar Is Looking for an Empty, Sleeping House.
A burglar is like a predator hunting for the easiest possible prey. They are looking for a house that is clearly empty and asleep. The #1 secret to protecting your home is to create the illusion that it is occupied, even when it’s not. Simple, inexpensive timers that turn lights and a radio on and off in a random pattern, combined with a hold on your mail and newspaper delivery, create the powerful illusion of activity. The burglar, seeing signs of life, will almost always skip your house and move on to an easier, darker, and quieter target.
I’m just going to say it: Your overgrown, beautiful landscaping is providing perfect cover for burglars.
The Beautiful Shrubbery That’s a Criminal’s Best Friend.
Those large, beautiful shrubs that you’ve carefully cultivated right next to your house’s windows and doors are not just adding to your curb appeal; they are providing the perfect, hidden workspace for a burglar. Overgrown landscaping creates a protective shield, hiding a criminal from the view of your neighbors and the street as they work to pry open a window or a door. By simply trimming your bushes down below window level, you are removing that shield of invisibility and exposing any potential intruder to the bright, open light of day.
The reason your basement floods is because your gutters are clogged and your downspouts are pointed at your foundation.
The Giant Funnel You’ve Aimed Directly at Your Basement.
Imagine a massive funnel on your roof, designed to collect thousands of gallons of water during a rainstorm. That is your gutter system. Now, imagine that you have clogged the top of that funnel with leaves, and you have aimed the spout at the bottom directly at the base of your house. This is what millions of homeowners do. Clogged gutters cause water to spill over and saturate the ground right next to the foundation, where it will inevitably find its way into your basement. A clean gutter and a long downspout extension is the simple fix.
If you’re still not using a password manager for your online accounts, you’re losing your defense against a data breach.
The One Master Key vs. the Hundred Different Weak Keys.
Using the same, simple password for all your online accounts is like using the same, flimsy skeleton key for your house, your car, and your safe deposit box. The moment a thief gets that one key, they have access to your entire life. A password manager is the master locksmith. It creates a unique, un-crackable, military-grade key for every single one of your accounts. You only have to remember the one, single master password to your secure vault, and it will handle the rest, creating an impenetrable wall around your digital life.
The biggest lie is that your dog “would never bite anyone.” Any dog can bite under the right circumstances.
The Loaded Gun That You Believe Is a Toy.
This is the most dangerous lie that loving dog owners tell themselves. Believing your sweet, friendly dog is incapable of biting is like believing that a loaded gun is a harmless toy. Every single dog, no matter the breed or the temperament, has a “bite threshold.” If they are scared, injured, or feel threatened, that instinct can take over in an instant. The risk is never zero. Responsible ownership means respecting the animal’s potential and taking the necessary precautions, not living in a fantasy world where your dog is a perfect angel.
I wish I knew to turn off the main water valve to my house before leaving for an extended vacation.
The Simple Switch That Prevents a Drowned House.
Leaving your house for a week-long vacation with the water still on is like leaving a pot of water on the stove and just hoping it doesn’t boil over while you’re gone. A single, small leak from a toilet supply line or a washing machine hose can run for seven straight days, dumping thousands of gallons of water into your home and causing a catastrophic, multi-floor flood. The simple, 30-second action of turning the main water shut-off valve before you leave is the ultimate peace of mind. It’s the off-switch that guarantees you won’t come home to a drowned house.
99% of business owners make this one mistake: they don’t have a formal safety program, which is the key to lower workers’ comp costs.
The “Good Student Discount” for Your Company’s Safety Record.
An insurance company views a business with no formal safety program as a high-risk, “C” student. A documented safety program—with regular training meetings, written procedures, and a clear chain of command—is the proof that you are a responsible, “A” student. This proactive approach leads to fewer injuries, which means fewer claims. The insurance company will reward your good grades and your excellent safety record with a significant credit on your workers’ compensation premium. It’s the ultimate win-win.
This one small habit of checking your tire pressure and tread depth monthly will prevent a dangerous blowout.
The Most Important Safety Feature You’re Probably Ignoring.
Your tires are the four, postcard-sized patches of rubber that connect your two-ton metal machine to the road at 70 miles per hour. They are, without a doubt, the single most important safety feature on your car. The simple, two-minute habit of checking your tire pressure and looking at the tread depth once a month is the essential maintenance that can prevent a catastrophic, high-speed blowout. It’s the easiest and most effective way to manage the single biggest mechanical risk you face every time you get behind the wheel.
Use impact-resistant roofing materials in hail-prone areas, not just standard asphalt shingles.
The Armor Plating That Protects Your House and Your Wallet.
If you live in a part of the country that gets regular hail, a standard asphalt shingle roof is like a suit of armor made of cardboard. It is guaranteed to be shredded in the next big storm. Impact-resistant or “Class 4” shingles are the real, steel-plate armor for your roof. They are specifically designed to withstand the impact of large hailstones. While they cost more upfront, insurance companies in hail-prone states will often give you one of their largest possible discounts for installing them, a saving that can pay for the upgrade in just a few years.
Stop leaving your garage door opener in a car parked in the driveway. Do use a keychain remote instead.
The “Key to Your House” That You Leave in Plain Sight.
Leaving your garage door opener clipped to the visor of your car is like taping a labeled, front door key to the outside of your car window. A thief can smash the window, grab the opener, and have instant, quiet access to your entire house through the garage. It is one of the most common and easily preventable security blunders. The simple act of using a small, keychain remote that you take with you inside the house removes that key from the thief’s reach and eliminates one of their favorite ways to get inside your home.
Stop thinking your IT guy is a cybersecurity expert. Do hire a specialist to assess your business’s vulnerabilities.
The General Practitioner vs. the Brain Surgeon.
Your regular IT guy is a fantastic general practitioner. He is an expert at keeping your computers running, your network online, and your software updated. He is not, however, a brain surgeon. Cybersecurity is a deeply complex and highly specialized field that is constantly evolving. A dedicated cybersecurity consultant is the specialist who can perform the “brain scan” of your network, identify the hidden vulnerabilities that a generalist would miss, and prescribe the specific treatment needed to protect you from a catastrophic breach.
The #1 secret to avoiding a slip-and-fall lawsuit is to promptly clean up spills and keep walkways clear of ice and snow.
The “Reasonable Care” That Becomes Your Best Legal Defense.
A slip-and-fall lawsuit is not about proving that someone fell; it is about proving that the property owner was negligent and failed to take “reasonable care” to keep the property safe. The #1 secret to defending against these claims is to have a system in place to prove you were reasonable. Promptly mopping up a spill, diligently salting your icy sidewalk, and keeping a log of when these actions were performed is not just good maintenance; it is the creation of a powerful legal defense that can shut down a frivolous lawsuit.
I’m just going to say it: That trampoline in your backyard is an “attractive nuisance” and a lawsuit waiting to happen.
The Giant, Spring-Loaded Lawsuit Magnet in Your Yard.
In the eyes of the law, a trampoline is what’s known as an “attractive nuisance.” It is a giant, irresistible magnet for every child in the neighborhood, whether they are invited or not. And you are legally responsible for any injuries that happen on it. It is one of the single greatest liability risks a homeowner can take on, and many insurance companies will refuse to cover you if you have one. It is a constant, high-stakes gamble with the safety of children and your entire financial future.
The reason your identity was stolen is because you’re still using public Wi-Fi for sensitive transactions.
Shouting Your Bank Password in the Middle of a Crowded Coffee Shop.
Logging into your bank account or any other sensitive website while using the free, open Wi-Fi at a coffee shop or an airport is the digital equivalent of standing on a chair in the middle of that crowded room and shouting out your username and password for everyone to hear. An unsecured, public Wi-Fi network is an open playground for hackers who can easily “listen in” on everything you are doing. You must treat public Wi-Fi as if a thief is literally looking over your shoulder at all times.
If you’re still not shredding your sensitive documents, you’re losing your privacy to dumpster divers.
The Treasure Chest You’re Leaving on the Curb.
Every single pre-approved credit card offer, old bank statement, or medical bill you toss in the trash is a piece of treasure for an identity thief. A “dumpster diver” can easily take these documents and piece together enough information to open new accounts in your name and destroy your credit. A simple, cross-cut paper shredder is the high-security lock for your financial trash can. It turns your sensitive documents from a readable treasure map into a pile of worthless, indecipherable confetti, protecting your privacy from the easiest form of theft.
The biggest lie is that you can prevent all risks. The goal of risk management is to reduce their frequency and severity.
You Can’t Stop the Rain, But You Can Build a Strong Roof and Buy an Umbrella.
The lie is that a perfect risk management plan will create a world with no accidents. The reality is that risk is an inherent part of life. You cannot eliminate it. The true goal of risk management is not to stop the rain from falling; it is to reduce the chance of a storm happening (frequency) and to minimize the damage when it does (severity). You do this by building a strong roof (loss prevention) and buying a good umbrella (insurance). It’s about being prepared, not about being perfect.
I wish I knew that trimming tree branches away from my roof could have prevented thousands of dollars in damage.
The “Battering Ram” You’ve Left Hanging Over Your House.
A large tree branch that is touching or hanging directly over your roof is a massive, suspended battering ram. During a high-wind event, that branch becomes a weapon that will scrape, gouge, and smash your shingles, leading to thousands of dollars in roof damage and the inevitable water leaks that follow. The simple, preventative act of trimming back any branches that are threatening your roof is like disarming that battering ram before the battle begins. It is one of the easiest and most effective ways to prevent a common and completely avoidable insurance claim.
99% of drivers make this one mistake: they follow the car in front of them too closely, eliminating their reaction time.
The High-Speed Game of Dominoes You’re Guaranteed to Lose.
Driving is a high-speed game of physics, and the most important variable is time. By tailgating the car in front of you, you are intentionally deleting your own reaction time from the equation. You have created a high-speed game of dominoes. The moment the car in front of you taps their brakes, you have already lost. The “three-second rule”—staying at least three seconds behind the car in front of you—is not just a friendly suggestion; it is the simple, mathematical law that gives you back the one thing that can prevent an accident: time.
This one small action of installing a gas leak detector near your furnace and water heater could save your life.
The “Nose” That Can Detect the Silent, Invisible Killer.
You have a smoke detector to warn you about the dangers you can see and smell. But a natural gas leak is a silent, often odorless, and incredibly explosive killer. A simple, inexpensive plug-in gas leak detector is the electronic “nose” that can sniff out this invisible threat long before it reaches a dangerous concentration. Placing one near your gas-powered appliances, like your furnace and your water heater, is a small, life-saving action that provides a crucial early warning for a truly catastrophic risk.
Use a formal contract with any contractor you hire, not just a handshake deal.
A Conversation vs. a Legal Blueprint.
A handshake deal with a contractor is based on memories and good intentions. A formal, written contract is a legal blueprint for the job. A good contract clearly defines the scope of the work, the specific materials to be used, the total cost, and the payment schedule. It is the official rulebook for the project. When a dispute inevitably arises, the contract is the one and only document that will protect you. A verbal agreement is a recipe for a “he said, she said” disaster that you are guaranteed to lose.
Stop letting piles of paper and clutter accumulate in your home. Do reduce your fire load by decluttering instead.
The “Kindling” You’ve Been Storing in Your House for Years.
Every single pile of old newspapers, every stack of cardboard boxes, and every closet overflowing with junk is not just clutter; it is “fire load.” It is the dry, flammable kindling that will turn a small, containable spark from an electrical outlet into a raging, whole-house inferno. The simple act of decluttering and getting rid of this excess fuel is one of the most powerful and effective fire prevention strategies there is. You are not just cleaning your house; you are literally removing the fuel that a potential fire needs to survive.
Stop ignoring your company’s HR policies. Do follow them consistently to mitigate the risk of an employment practices lawsuit.
The “Rulebook” That Can Be Your Best Legal Defense.
Your company’s HR policy manual is not just a dusty binder on a shelf; it is the official rulebook for how you treat your employees. An employment lawsuit is almost always about proving that you, the employer, acted unfairly or inconsistently. By having a clear, well-written rulebook and, most importantly, by consistently and fairly applying those rules to every single employee, you are creating a powerful legal shield. It is the documented proof that you are a fair referee, not a biased one.
The #1 hack for workplace safety is empowering employees to report hazards without fear of retaliation.
The “Early Warning System” You’re Not Using.
Your frontline employees are the human smoke detectors of your business. They are the ones who can see and smell the small, smoldering safety hazards long before they erupt into a full-blown, five-alarm fire of a workers’ comp claim. But if they are afraid that reporting that smoke will get them in trouble, they will stay silent. The #1 secret to a safe workplace is to create a culture where every single employee feels empowered and even rewarded for pointing out a potential hazard. They are your most valuable and effective early warning system.
I’m just going to say it: Your employees are your biggest cybersecurity risk.
The Well-Intentioned Insider Who Opens the Front Door.
The stereotype of a cyberattack is a shadowy, hooded figure in a dark room trying to break down your digital walls. The reality is that your biggest threat is not a stranger; it is your own, well-intentioned employee. They are not malicious. They are just busy, and they make mistakes. The employee who clicks on a phishing link, who uses a weak password, or who accidentally emails a sensitive file to the wrong person is not a hacker. They are the unwitting accomplice who politely holds the door open for the thief.
The reason your pipes burst is because you didn’t let your faucets drip during a hard freeze.
The Tiny Trickle That Saves the Massive Pipe.
When water freezes, it expands with incredible force. When that happens inside a metal pipe, it is like a tiny, powerful bomb going off in your walls. The reason your pipes burst is that the freezing water had nowhere to go. The simple, counterintuitive act of letting your faucets drip a tiny, steady stream during a deep freeze is the safety valve that relieves this immense pressure. That small, open trickle gives the expanding ice an escape route, preventing the catastrophic pressure build-up that leads to a burst pipe and a flooded house.
If you’re still using flimsy locks on your doors and windows, you’re losing your first and best line of defense.
The Cardboard Shield in a Sword Fight.
Your locks are the first, most important, and most tested line of defense for your home. Using a cheap, flimsy, low-quality lock is like going into a sword fight with a shield made of cardboard. It might look like a shield, but it will be instantly and easily defeated by the first serious attack. Investing in high-quality, heavy-duty deadbolts and window locks is the single most important and cost-effective security upgrade you can make. It is the real, steel shield that will actually protect you when the threat is real.
The biggest lie is that loss prevention is someone else’s job. It’s everyone’s responsibility.
The “One Leaky Boat” That Sinks the Entire Fleet.
In any organization, the lie is that safety and loss prevention is the job of one person or one department. The reality is that you are all in a fleet of interconnected boats. One person’s unsafe act—one leaky boat—can cause a chain reaction that sinks the entire fleet. Every single employee, from the CEO to the front-line worker, must be an active participant in risk management. A culture of safety is not a top-down mandate; it is a shared, collective responsibility for keeping every single boat in the fleet afloat.
I wish I knew that having my chimney professionally cleaned every year could prevent a house fire.
The Clogged, Greasy Stovepipe Waiting to Ignite.
The inside of your chimney is not just an empty brick tube. Every single time you have a fire, a sticky, flammable substance called “creosote” builds up on the inside walls. It is the greasy, black residue that is left behind. Not having your chimney cleaned is like letting a year’s worth of grease build up in your oven and then turning it on to broil. A single hot ember can ignite that creosote, leading to a violent and catastrophic chimney fire that can easily spread to the rest of your house.
99% of parents make this one mistake: they don’t have a fence with a self-latching gate around their backyard pool.
The Beautiful Oasis That’s a Drowning Hazard.
A backyard swimming pool is a wonderful luxury, but it is also the single most dangerous “attractive nuisance” a family can own. The statistics on child drownings are heartbreaking and clear. The single, most effective, and non-negotiable layer of protection is a proper fence that is at least four feet high and has a self-closing, self-latching gate. This one, simple piece of hardware is the physical barrier that separates a moment of inattention from a lifetime of tragedy. It is not an option; it is a moral and legal necessity.
This one small habit of doing a quick walk-around of your car before you drive will help you spot a low tire or other safety issue.
The “Pre-Flight Check” for Your Daily Commute.
A pilot would never dream of taking off without first doing a physical “walk-around” inspection of their plane. You should treat your car the same way. The simple, 15-second habit of quickly walking around your vehicle before you get in can be a lifesaver. It allows you to spot the low tire that is about to blow out, the nail in the tread, or the puddle of fluid that indicates a serious mechanical problem. It is the simple, pre-flight check that can help you spot a disaster on the ground, before it happens at 70 miles per hour.
Use surge protectors for all your expensive electronics, not just plugging them directly into the wall.
The “Bodyguard” for Your High-Tech Investments.
Plugging your brand-new, expensive television or computer directly into a wall outlet is like sending a VIP out into a dangerous crowd with no bodyguard. The electrical grid is a chaotic place, and a sudden power surge from a lightning strike or a utility issue can be an “assassination attempt” on your electronics, instantly frying their delicate circuits. A surge protector is the inexpensive but essential bodyguard that stands between the wall and your device, ready to sacrifice itself to absorb that deadly surge and protect your valuable investment.
Stop assuming your subcontractors have their own insurance. Do get a certificate of insurance from them every year.
The “Trust, But Verify” Rule of Business.
Assuming your subcontractor has insurance is a dangerous and naive act of blind trust. The professional approach is to “trust, but verify.” You must require every single subcontractor to provide you with a “Certificate of Insurance” (COI) before they are allowed to step foot on your job site. This one-page document is the physical proof that they have their own, active liability and workers’ compensation policies. It is the simple, powerful tool that transfers the risk of their mistakes off of your shoulders and onto theirs.
Stop leaving your spare key under the doormat. Do give it to a trusted neighbor instead.
The “Secret” Hiding Place That Everyone Knows.
Hiding your spare key under the doormat, in a fake rock, or on top of the door frame is the oldest and most well-known “secret” in the world. It is the very first place that any burglar will look. You are not being clever; you are being predictable. The only secure way to have a spare key is to remove it from the property entirely. Give it to a trusted neighbor or a nearby friend. This one simple action eliminates the easiest and most common way that a thief can walk right into your home through the front door.
The #1 secret to preventing water damage from your water heater is to replace it every 8-10 years, before it fails.
The Ticking Time Bomb in Your Basement.
Your water heater is a silent, hard-working appliance that you completely ignore until the day it fails. And its failure is not a gentle fizzle; it is a catastrophic, rust-induced flood. A standard water heater has a predictable lifespan of about 8-10 years. The #1 secret is to treat it like a wear item on your car, like your tires. You must proactively replace it before it fails. Waiting for it to burst is a guaranteed way to have a massive, and completely preventable, water damage claim.
I’m just going to say it: Most “accidents” are not accidents at all; they are the predictable result of an unsafe condition or behavior.
The Tipped Domino That Started Miles Back.
We call the final, dramatic event—the car crash, the slip and fall—the “accident.” But in the world of risk management, that is just the last domino to fall. The real “accident” was a chain of predictable and preventable events that started long before. It was the worn-out tires, the ignored safety procedure, or the spilled water that wasn’t cleaned up. True risk management is not about cleaning up after the last domino has fallen; it is about having the foresight to remove the first domino from the line.
The reason you need to have good lighting around the exterior of your home is to deter criminals.
The Burglar’s Greatest Enemy Is a Simple Light Bulb.
A criminal’s most powerful tool is darkness. It provides them with the shield of anonymity and the cover they need to work undetected. Good, bright, motion-activated exterior lighting is the ultimate deterrent. It is like a sudden, blinding spotlight that rips away their shield and puts them on a public stage for all your neighbors to see. A well-lit home is a much more difficult and risky target. A simple light bulb is one of the most effective and inexpensive security devices you can own.
If you’re still not backing up your computer data to the cloud, you’re losing it forever in a fire or theft.
The Digital “Life Raft” for Your Most Precious Memories.
Your computer’s hard drive is the ship that carries all of your most precious, irreplaceable cargo—your family photos, your important documents, your entire digital life. A house fire, a theft, or a simple hard drive failure is the iceberg that can sink that ship in an instant, taking all of its cargo to the bottom of the sea forever. An automatic, cloud-based backup service is the digital life raft. It creates a perfect, secure copy of your cargo in a separate, safe location, ensuring that even if your ship sinks, nothing of value is ever truly lost.
The biggest lie is that you can’t do anything about the weather; you can take many steps to mitigate its impact on your property.
You Can’t Stop the Hurricane, But You Can Board Up the Windows.
The lie is that when it comes to the weather, you are a helpless victim. The reality is that while you cannot control the storm, you have an immense amount of control over how your property responds to it. You can install storm shutters, you can use hail-resistant roofing, you can trim your trees, and you can clean your gutters. These are not small actions; they are powerful, proactive steps that can be the difference between a minor inconvenience and a catastrophic, multi-hundred-thousand-dollar insurance claim.
I wish I knew that I should test my sump pump before the start of every rainy season.
The “Fire Drill” for Your Basement’s First Responder.
Your sump pump is the silent, lonely firefighter sitting in the basement, waiting for a flood. But what if its batteries are dead or its engine is seized when the alarm finally rings? The simple act of testing your sump pump before the rainy season begins is the essential “fire drill” for your home’s water protection. By simply pouring a bucket of water into the sump pit, you can verify that the pump turns on, the float switch works, and the drain line is clear, ensuring your firefighter is awake and ready for the storm.
99% of people make this one mistake: they don’t know where their main water and gas shut-off valves are.
The “Off Switch” You Can’t Find in an Emergency.
In a true home emergency, like a burst pipe flooding your house or the smell of a gas leak, you have only seconds to act. The main shut-off valves for your water and gas are the emergency “off switches” for your entire home. Not knowing where they are and how to operate them is like a pilot not knowing how to shut off the engines in an emergency. The simple, five-minute act of locating these valves and teaching everyone in your family how to use them is one of the most critical and overlooked pieces of home safety knowledge.
This one small action of putting anti-slip strips in your bathtub will prevent a common and serious injury.
The $10 Fix for the Most Dangerous Room in Your House.
The bathroom, with its combination of water and hard surfaces, is statistically one of the most dangerous rooms in your home. A simple slip and fall in the bathtub can lead to a broken hip, a concussion, or other life-altering injuries. For less than $10 and five minutes of your time, you can install adhesive, anti-slip strips or a non-slip mat on the floor of your tub. This one, incredibly simple and inexpensive action is the most effective way to manage the risk of one of the most common and serious household accidents.
Use a fireproof safe to protect your most important documents and valuables, not a shoebox in your closet.
The One Thing That Insurance Can Never, Ever Replace.
Your insurance company can write you a check to replace your house, your car, and your furniture. They are fantastic at replacing the “stuff.” But they cannot replace your birth certificates, your passports, your social security cards, or the flash drive with every family photo you have ever taken. These items are irreplaceable. A fireproof safe is the one tool that protects the things that no amount of money can ever bring back. It is the fortress for the pieces of your life that are truly priceless.
Stop being complacent about driving in the rain. Do slow down, increase your following distance, and check your wipers.
The Road You Drive Every Day Has Just Become an Ice Rink.
The first rain after a dry spell is one of the most dangerous times to be on the road. The oil and dust on the pavement mix with the water to create a slick, invisible film that is as slippery as ice. Being complacent and driving at your normal speed and following distance is a recipe for disaster. You must consciously and deliberately shift your mindset. Slow down, double your following distance, and make sure your wipers and your tires are in good condition. The road is no longer the same; you cannot drive on it the same way.
Stop letting your social media posts announce to the world that you’re on vacation.
The “Please Rob Me” Sign You’ve Hung on Your Digital Front Door.
Posting a picture of your family on a beach in Hawaii with the caption “Having a great time for the next two weeks!” is not just sharing a memory. It is the digital equivalent of hanging a giant, flashing neon sign on the front of your empty house that says, “WE ARE NOT HOME. PLEASE ROB US.” You are providing a detailed, real-time itinerary to a global audience of strangers. The safe way to share is to post all your wonderful pictures after you have returned home safely.
The #1 hack for preventing a kitchen fire is to never leave cooking unattended.
The Most Dangerous Room in Your House Requires Your Full Attention.
The kitchen is the heart of the home, but it is also the room where most house fires start. The #1 cause is not a faulty appliance; it is simple, human inattention. A pot of oil that gets too hot, a dish towel that gets too close to a burner, a piece of toast that gets stuck in the toaster—these are the sparks that ignite the blaze. The single, most effective rule of fire safety is to stay in the kitchen when you are frying, grilling, or broiling food. Don’t walk away, even for a second.
I’m just going to say it: Your desire for a perfectly manicured lawn is leading you to use pesticides and chemicals that create an environmental liability.
The “Perfect” Lawn That’s Poisoning the Well.
That lush, green, perfectly weed-free lawn often comes at a hidden cost. The pesticides, herbicides, and fertilizers you use can run off your property during a rainstorm and contaminate your neighbor’s well, a local stream, or the groundwater. This can lead to a massive, and completely uninsured, “environmental liability” lawsuit. A standard homeowners or business policy has an absolute pollution exclusion. Your desire for a perfect lawn can create a catastrophic, six-figure liability that you will have to pay for on your own.
The reason you need to read product manuals is for the safety warnings, not just the operating instructions.
The “How to Not Die” Chapter That Everyone Skips.
When you get a new product, you might skim the instructions to figure out how to turn it on. But you are skipping the most important part of the book. The “Warnings” section is the “how to not burn down your house or electrocute yourself” chapter. It contains the crucial, and legally important, safety information that the manufacturer is required to tell you. Reading this one section is a critical part of your own risk management, ensuring you are using the product in a way that is safe for you and your family.
If you’re still not using two-factor authentication on your important online accounts, you’re losing a critical layer of security.
The Deadbolt on Your Digital Front Door.
Your password is the simple lock on the doorknob of your digital house. A determined thief can often pick that lock. Two-Factor Authentication (2FA) is the heavy, steel deadbolt that you add to that door. It requires a second piece of information—a code that is sent to your phone—before the door can be opened. This one, simple, extra layer of security is the single most effective thing you can do to protect your sensitive accounts, like your email and your bank, from being taken over by a hacker.
The biggest lie is that a small business is too small to be a target for hackers. They are often the easiest targets.
The Thief Who Robs the Corner Store, Not Fort Knox.
The lie is that hackers are only interested in giant, Fort Knox-like corporations. The reality is that a professional bank robber knows that Fort Knox is too difficult. It is far easier and more profitable to rob the local corner store that has a flimsy lock and no security guard. Small businesses are those corner stores. They often have weak security, no dedicated IT staff, and a wealth of valuable customer data. They are not too small to be a target; they are the perfect, most profitable target.
I wish I knew how to properly maintain a fire extinguisher (check the pressure, get it recharged).
The “First Responder” That Needs an Annual Check-Up.
A fire extinguisher is the first responder for a home fire, but it is a tool that requires maintenance. The simple habit of looking at the small pressure gauge on your extinguisher once a month is the first step. If the needle is not in the green, it will not work. And after any use, or after a certain number of years, it needs to be professionally serviced and recharged. An empty or un-pressurized extinguisher is just a heavy, red piece of junk that will give you a false and dangerous sense of security.
99% of business owners make this one mistake: they don’t have a formal business continuity plan.
The Insurance Check Is the Money, Not the Blueprint for Rebuilding.
After a disaster, your insurance will eventually write you a check. That is all it does. It does not tell you how to get your business back up and running. A business continuity plan is the step-by-step, pre-written blueprint for that process. It answers the critical questions: Where will we work? How will we access our data? How will we communicate with our customers and our employees? Without this blueprint, you are just a rich person standing in the rubble of their old business with no idea how to start rebuilding.
This one small habit of checking your smoke detector batteries twice a year will ensure they work when you need them.
The “Chirp” That’s Actually a Cry for Help.
A smoke detector with a dead battery is just a useless piece of plastic on your ceiling. The simple, life-saving habit of changing your smoke detector batteries twice a year—a great time is when you change your clocks for daylight saving time—is the most effective way to ensure that this critical piece of safety equipment will actually be awake and ready to scream for you when you need it most. That annoying “chirp” of a low battery is not a nuisance; it is a desperate cry for help that you must never ignore.
Use a “waiver of subrogation” in your contracts to manage liability risk, not just hoping a claim doesn’t happen.
The “No-Sue” Agreement Between Insurance Companies.
“Subrogation” is the right of your insurance company to sue the person who caused your loss. A “waiver of subrogation” is a powerful legal tool you can put in a contract. It is a promise that if your client is responsible for a claim on your policy, your insurer will pay the bill and then agree not to sue them. Large clients will often demand this. It is a sophisticated risk management tool that prevents your insurance company from turning around and suing your most valuable customer.
Stop thinking that because you have insurance, you don’t need to worry about risk. Your premiums are a reflection of your losses.
Your Insurance Premium Is the “Report Card” for Your Risk Management.
The myth is that insurance is a magic wand that makes risk disappear. The reality is that your insurance premium is a direct, mathematical reflection of how risky your insurance company thinks you are. It is the report card for your risk management efforts. Every claim you have is a failing grade that will cause your “tuition” (your premium) to go up. The only way to get a good grade and a lower bill is to actively manage your risks and prevent the claims from happening in the first place.
Stop letting your kids play with matches or lighters. Do teach them about fire safety instead.
The Dangerous “Toy” That Is Not a Toy.
To a curious child, a match or a lighter is a fascinating and magical toy. It is also one of the leading causes of tragic and fatal house fires started by children. There is no “safe” way for a child to play with fire. The only safe path is to treat matches and lighters like you would treat a loaded gun. They must be kept in a high, locked cabinet, and children must be taught, from a very early age, that they are a dangerous tool for adults only.
The #1 secret to avoiding distracted driving is to put your phone in the glove compartment before you start the car.
You Can’t Eat the Cookie If It’s Not on the Counter.
The modern smartphone is a powerful and addictive dopamine machine. The constant pings and notifications are an almost irresistible temptation. Trying to “willpower” your way out of looking at it while you are driving is a battle you are destined to lose. The #1 secret is to remove the temptation entirely. The simple act of putting your phone on silent and physically placing it in the glove compartment before you turn the key is the only foolproof way to guarantee that you will not be tempted to eat the cookie.
I’m just going to say it: The best insurance claim is the one that never happens.
The “Win” That Is Actually a Devastating Loss.
Getting a big check from your insurance company after a claim might feel like you “won.” You did not. You have just been through a stressful, traumatic, and incredibly disruptive event that has, at best, brought you back to where you were the second before the loss. You have lost time, you have lost peace of mind, and your future premiums will now be higher. The true victory in risk management is not in winning a claim; it is in the quiet, un-celebrated, and far more profitable success of preventing that claim from ever happening in the first place.
The reason you need to inspect your deck annually is to check for rot and loose railings that could cause a collapse.
The Slow, Silent Failure That Leads to a Sudden, Catastrophic Fall.
A wooden deck is constantly exposed to the weather, and that exposure leads to a slow, silent process of decay. The wood rots, the screws rust, and the railings become loose. These small, individual failures are almost invisible, until the day you have 20 people on your deck for a barbecue and the entire structure suddenly and catastrophically collapses. An annual inspection, where you actively poke the wood for soft spots and tighten the railings, is the only way to catch that slow decay before it leads to a sudden, tragic fall.
If you’re still using a portable space heater with an extension cord, you’re creating a major fire hazard.
The “High-Powered Appliance” and the “Thin, Flimsy Garden Hose.”
A portable space heater is a high-powered appliance that draws a massive amount of electricity. It is like a fire hydrant. An extension cord is a thin, flimsy garden hose. Trying to pull the massive flow of a fire hydrant through a tiny garden hose will cause the hose to overheat, melt, and burst into flames. A space heater must always be plugged directly into a wall outlet. It is one of the most common and easily preventable causes of a deadly winter house fire.
The biggest lie is that safety procedures slow down your business. Accidents and injuries are much slower and more expensive.
The “Five-Minute Shortcut” That Leads to a Six-Month Shutdown.
The lie is that taking the time to follow a safety procedure is an inefficient waste of time. The reality is that an accident is the most inefficient thing that can possibly happen to your business. A single, serious injury can lead to months of lost productivity, a workers’ compensation claim, an OSHA investigation, and a massive increase in your insurance premiums. That “five-minute shortcut” that an employee takes can easily result in a six-month-long financial and administrative nightmare for your entire company.
I wish I knew that a simple drain pan under my second-floor washing machine could prevent a ceiling collapse below.
The $20 Piece of Plastic That Catches a Multi-Thousand Dollar Flood.
A washing machine located on a second floor is a massive water damage catastrophe waiting to happen. A simple hose leak or an internal failure can send water pouring through your floor and cause the ceiling of the room below to collapse. A simple, inexpensive plastic drain pan, placed under the washing machine with a drain line running to a safe location, is the essential and often overlooked safety net. It is the $20 piece of plastic that is designed to catch and safely drain away a leak that would otherwise cause tens of thousands of dollars in damage.
99% of people make this one mistake: they overload electrical outlets and power strips.
The “Traffic Jam” of Electricity That Leads to a Fiery Crash.
An electrical outlet is like a two-lane road. It is designed to handle a certain, limited amount of electrical “traffic.” When you plug in a power strip and then plug ten different devices into that strip, you are trying to force a ten-lane superhighway’s worth of traffic onto that small, two-lane road. The result is a massive traffic jam of electricity, which creates an immense amount of heat. That heat can easily cause the wiring to melt and ignite a fire. It is a simple, common, and deadly mistake.
This one small action of securing your bookshelves and tall furniture to the wall will prevent them from tipping over in an earthquake or if a child climbs them.
The Hidden “Tipping Point” in Your Living Room.
A tall, heavy bookshelf or a dresser is a silent, vertical threat in your home. An earthquake, or more commonly, a curious toddler who tries to climb it, can cause it to reach its tipping point in an instant, leading to a tragic and completely preventable crushing injury. The simple, inexpensive action of using a furniture strap or a bracket to secure these tall items to a stud in the wall completely eliminates that risk. It is the essential step to ensure that your furniture remains a beautiful asset, not a deadly hazard.
Use an “additional insured” endorsement to transfer risk, not just hoping your own policy will cover everything.
The “Legal Shield” You Can Lend to Your Best Customer.
An “additional insured” endorsement is one of the most powerful risk management tools in business. It is like a legal shield that you can extend to your client. When you name your client as an additional insured on your liability policy, you are making a promise that if you are both sued for the work you did for them, your insurance policy will step in and defend them as well. It is a crucial part of any professional contract that transfers the risk of your work off of your client and firmly onto your own insurance program.
Stop ignoring the check engine light in your car. Do get it checked to prevent a more serious mechanical failure.
The “Quiet Cough” That Signals a Future Case of Pneumonia.
Your car’s “check engine” light is not a suggestion; it is a warning. It is the quiet, persistent cough of your vehicle’s complex mechanical system. Ignoring it is like ignoring a cough and just hoping it will go away. That small, initial problem—a faulty sensor, a minor misfire—if left unchecked, can easily cascade into a catastrophic and incredibly expensive case of mechanical pneumonia, like a destroyed catalytic converter or a blown engine. The small cost of a diagnosis today can prevent a multi-thousand dollar repair bill tomorrow.
Stop thinking that risk management is just about safety. It’s also about protecting your reputation and financial stability.
The Three Pillars of Your Company’s Health.
The myth is that risk management is just about wearing a hard hat and preventing slip-and-falls. That is only one piece of the puzzle. A true risk management plan is a three-legged stool. The first leg is protecting your people (safety). The second leg is protecting your money (financial stability). And the third, and often most fragile, leg is protecting your good name (reputational integrity). A single, major event can destroy all three. A holistic plan is designed to support and protect all three of these critical pillars.
The #1 hack for a landlord is to conduct regular property inspections to identify and fix hazards before a tenant gets hurt.
The “Preventative Medicine” for Your Rental Property.
The #1 hack to being a successful and low-risk landlord is to practice “preventative medicine.” By conducting regular, documented inspections of your property (with proper notice to the tenant), you can identify and fix the small “illnesses”—the loose handrail, the leaky faucet, the cracked sidewalk—before they can grow into a catastrophic “disease” of a multi-million dollar liability lawsuit. It is the proactive, professional approach that shows you are a responsible property owner who is committed to providing a safe home.
I’m just going to say it: Your comfort with your daily routine is making you blind to the risks around you.
The “Autopilot” That Can’t See the Oncoming Traffic.
Your daily routine is a powerful tool for efficiency. It allows you to put your brain on “autopilot” for the common tasks of your day. But that autopilot is also a massive risk. It creates a “routine blindness” that can prevent you from seeing the new or changing hazards in your environment. The spilled coffee on the floor, the new pothole on your commute, the odd-looking email in your inbox—autopilot will fly you right into them. You must make a conscious effort to periodically turn off the autopilot and actively scan your surroundings for risk.
The reason your employees aren’t following safety rules is because your management team isn’t leading by example.
The “Do as I Say, Not as I Do” School of Failure.
A written safety manual is a great start, but it is just a piece of paper. The real safety culture of your company is determined by the actions of its leaders. If your managers and supervisors are walking through a job site without a hard hat, or if they are ignoring a safety violation to get a job done faster, they are sending a powerful and undeniable message: “The rules are not real.” A culture of safety is not built from the bottom up; it is a direct reflection of the visible, daily commitment of the management team.
If you’re still not wearing a helmet when you ride a bike, you’re losing your best defense against a traumatic brain injury.
The One-Foot Fall That Can Change Your Life Forever.
The myth is that you only need a helmet if you are a high-speed, professional cyclist. The reality is that the vast majority of serious bicycle-related head injuries happen during slow, simple, low-speed falls. It is not the speed that causes the injury; it is the sudden, unprotected impact of your skull against the hard, unforgiving pavement. A helmet is the simple, crucial, and scientifically proven shock absorber that can be the difference between a minor scrape and a permanent, life-altering traumatic brain injury.
The biggest lie is that you can “self-insure” for major risks. That’s not insuring; that’s just being uninsured.
The “Savings Account” vs. the “Financial Fire Department.”
The lie is that if you have a big enough savings account, you are “self-insured.” You are not. You are simply “uninsured.” Insurance is not about having money; it is about the legal transfer of a catastrophic risk to an institution that is large enough to handle it. Your savings account is a bucket of water. It might be enough to put out a small fire in a trash can. But when your entire house is engulfed in flames, you do not need a bucket of water; you need the powerful, overwhelming force of the fire department.
I wish I knew that I should photograph my property and its contents before a hurricane or wildfire threatens my area.
The “Before” Picture That Becomes Your Most Valuable Asset.
When a major storm is heading your way, your first instinct is to protect your property. But one of the most important protective actions you can take is to document it. A quick, 10-minute walk through your home with your smartphone, creating a detailed video record of your belongings and the condition of your house, is a priceless action. If your home is damaged or destroyed, this “before” picture becomes your most powerful and undeniable piece of evidence in the insurance claims process. It is the one asset that cannot be blown away.
99% of people make this one mistake: they don’t have an emergency kit with food, water, and first aid supplies.
The “First Responder” Kit for When the First Responders Can’t Get to You.
After a major natural disaster, the real first responders—the police, the fire department, the paramedics—will be completely overwhelmed. It could be hours or even days before they can get to you. An emergency kit is not for a minor inconvenience; it is your personal, “first responder” kit for that critical window of time when you are on your own. A simple box with a three-day supply of water, non-perishable food, a flashlight, and a first-aid kit is the essential bridge that can keep your family safe until help arrives.
This one small action of checking your local weather forecast before you travel will help you avoid dangerous conditions.
The “Pre-Flight Check” for Your Own Personal Journey.
A pilot would never dream of taking off on a long flight without first getting a detailed weather briefing for their entire route. You should treat your own travel, whether it’s a long road trip or a daily commute, with the same level of professional respect. The simple, 30-second action of checking the weather forecast before you leave is the “pre-flight check” that can allow you to avoid a dangerous snow squall, a severe thunderstorm, or a flash flood. It’s the easiest way to ensure your journey is a safe one.
Use a cross-cut shredder to destroy documents, not a strip-cut shredder.
Confetti vs. a Solvable Puzzle.
A standard, “strip-cut” shredder is like ripping a photograph into a dozen long strips. A patient and determined identity thief can often piece those strips back together like a simple puzzle. A “cross-cut” or “micro-cut” shredder is a much more powerful security tool. It is like putting that same photograph into a blender. It turns your sensitive documents into a pile of tiny, indecipherable confetti that is impossible to reassemble. It is the difference between a simple lock and a high-security vault for your personal information.
Stop letting emotion override logic when assessing risk. Do look at situations objectively instead.
The “Fear” vs. the “Math” of a Situation.
Our brains are hardwired to be terrible at assessing risk. We are terrified of the dramatic but incredibly rare shark attack, but we are completely complacent about the statistically massive risk of a heart attack from a poor diet. This is emotion overriding logic. True risk management requires you to take a step back and look at the cold, hard math of a situation. It is about focusing your time and resources on the boring, everyday risks that are most likely to happen, not the exciting, movie-plot risks that capture our imagination.
Stop thinking that just because you’ve never had a claim, you never will. Past performance is no guarantee of future results.
The “Rearview Mirror” School of Risk Management.
Driving your car by looking only in the rearview mirror is a guaranteed way to crash. The same is true of risk management. Thinking that because you have never had a claim, you will never have one, is a dangerously complacent mindset. It is basing your entire future on a small, and often lucky, sample size of your past. Risk management is not about looking backward; it is about looking forward, at the road ahead, and being prepared for the unexpected potholes and the distracted drivers you haven’t encountered yet.
The #1 secret of professional risk managers is the simple “avoid, reduce, transfer, accept” framework.
The Four Levers of Controlling Your Fate.
Professional risk management is not a complex mystery; it is a simple, four-step process. First, can you avoid the risk entirely (don’t buy the trampoline)? Second, can you reduce the risk’s likelihood or severity (install a fence around the pool)? Third, can you transfer the financial risk to someone else (buy an insurance policy)? And finally, for the small risks that remain, you can consciously accept them (pay for a small fender bender yourself). This simple, four-lever framework is the secret to making intelligent, proactive decisions about any risk in your life or business.
I’m just going to say it: The most important insurance is the one you have in place before you need it.
You Cannot Buy a Fire Extinguisher While Your House Is on Fire.
This is the simple, brutal, and unchangeable law of the insurance universe. Insurance is a proactive tool, not a reactive one. It is a promise you buy for an uncertain future event. The moment that event happens—the moment the diagnosis is made, the moment the hurricane is named, the moment the fire starts—the window of opportunity to transfer that risk slams shut forever. The only insurance that will ever help you is the policy you had the foresight and the discipline to put in place the day before the disaster.
The reason you need to document your training efforts is to have a defense in a negligent training lawsuit.
The “Report Card” That Proves You Taught the Class.
If an employee makes a serious mistake that harms a customer, you will likely be hit with a “negligent training” lawsuit. The claim will be that you, the employer, failed to properly train your employee. The only way to defend against this is to have proof. A documented training program, with signed attendance sheets and a clear curriculum, is the “report card” that proves you taught the class. It is the physical evidence that shows you are a responsible employer who took the necessary steps to train your team properly.
If you’re still not paying attention to your surroundings when you walk, you’re losing your defense against becoming a victim of a crime.
The “Hard Target” vs. the “Soft Target.”
A predator in the wild will always go after the weakest and least aware animal in the herd. A criminal on the street operates with the exact same instinct. A person who is walking confidently, with their head up, and is actively scanning their surroundings is a “hard target.” They are a more difficult and risky prey. A person who is distracted, with their head down, buried in their phone, is a “soft target.” They are the easy, unaware victim. Your situational awareness is your most powerful and primal form of self-defense.
The biggest lie is that you can buy insurance for everything. Reputational risk, for example, is very difficult to insure.
The Financial Shield vs. the Reputational Stain.
The lie is that insurance is a magic wand that can fix any business problem. The reality is that insurance is a fantastic tool for paying for the tangible, monetary costs of a disaster. It can rebuild your building and pay the lawsuit. But it cannot fix every problem. The damage to your company’s reputation after a major data breach or a product recall is an intangible, but incredibly valuable, asset that is almost impossible to insure. Some risks can only be managed with good, old-fashioned integrity and crisis communication.
I wish I knew that a well-maintained property is a less attractive target for both criminals and lawsuits.
The “Broken Window” Theory of Risk Management.
The “broken window” theory states that a property that is visibly neglected—with broken windows, overgrown landscaping, and peeling paint—sends a clear signal that no one is in charge and no one cares. This makes it a magnet for crime and vandalism. It also makes it a much more attractive target for a slip-and-fall lawyer, who sees a property that is clearly not being maintained. A well-kept property sends the opposite signal: “We are responsible, we are watching, and we are not an easy target.”
99% of people make this one mistake: they treat risk management as a one-time event, not an ongoing process.
The “Set It and Forget It” Path to Failure.
The biggest mistake is to treat risk management like a new year’s resolution that you make in January and have forgotten by March. It is not a one-time project that you can check off a list. Your life, your business, and the world around you are in a constant state of change. Risk management must be a living, breathing, and ongoing process. It is a continuous cycle of identifying new risks, implementing new controls, and monitoring the results. It is a process, not a project.
This one small action of asking “what could go wrong here?” will fundamentally change your approach to risk.
The “Pre-Mortem” That Prevents the Post-Mortem.
A post-mortem is the analysis you do after a disaster to figure out what went wrong. A “pre-mortem” is the powerful, proactive act of asking that question beforehand. The simple, transformative habit of pausing before any new project, decision, or activity and asking your team (or yourself), “Okay, let’s imagine this has failed spectacularly. What could have gone wrong here?” is the key to identifying the hidden risks and the weak points in your plan before they have a chance to become a reality.
Use insurance as the final step in your risk management plan (risk transfer), not the first and only step.
The Last Line of Defense, Not the First and Only Soldier.
Insurance is the last, and most expensive, line of defense in a good risk management plan. It is not the entire army. The first, and most effective, soldiers are risk avoidance and risk reduction. You should always first try to avoid or reduce a risk through safer behaviors and better systems. Insurance, the act of “risk transfer,” is the powerful but costly tool you use only for the catastrophic risks that you cannot avoid or reduce on your own. It is the final backstop, not the first solution.