After Tom Franzen asked our CEO team, “what does insurance do fo you?” He explained, “it transfers financial risk.” Tom has worked in the insurance business for many years and speaks and teaches across the country on risk management.

Some history on insurance, “Ittook off in London in the 1600’s with Lloyds of London. Investors would literally write their names under the name of a ship ready to set sail. They would offset a percentage of that ship’s risk of total loss due to weather or pirates or damage for a premium. This became the first practice of ‘underwriting’ insurance.”

Tom explained that today certain practices assume coverage when they aren’t a guarantee. Considering waivers for services, Tom told the team, “Broad, whole, harmless agreements are deemed to be illegal contracts because the courts have ruled that no company can mitigate the risk of gross negligence.”

Tom encouraged the young entrepreneurs to evaluate their businesses with an informed decision and to prepare for the right amount of instance to protect themselves and their businesses appropriately.

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