What is a common technique for an insured to mitigate risk?

To mitigate risk effectively, the insured can implement safety measures and risk management practices. This involves taking proactive steps to reduce the likelihood of loss or damage occurring. For instance, an insured might install security systems, conduct regular maintenance of property, train employees in safety protocols, and enforce safety standards. These actions directly address potential hazards, lowering the probability of claims and overall risk exposure, which can lead to lower insurance premiums and improved safety outcomes.

Regularly reviewing and adjusting insurance coverage is also a responsible practice, but it is more about ensuring adequate protection rather than directly mitigating risk through preventive measures. Ignoring safety regulations typically increases risk and liability rather than mitigating it. Insuring only high-risk properties does not serve to mitigate risk; it could increase the potential for loss while exposing the insurer to greater risks, making it a counterproductive approach to risk management.