Risk management can not occur without being backed by proper insurance coverage, which simply makes sense, insurance being, after all, an insulator against the searing heat of risk itself. Huge amounts of revenue can be lost, leading to the eventual shuttering of risk management firms, without insurance in place as a safety net.
Just a few of the threats to risk management firms include accident claims, lawsuits, and third-party financial damage. While risk management firms may be able to survive without insurance in the short-term, their overall longevity is compromised without coverage.