The Risk You Don’t See Is Usually the One That Hurts the Most

Most businesses understand their obvious risks. What they often underestimate are the indirect ones—the exposures that live in the background.

These are the risks that don’t announce themselves until they’re triggered.

Contractual Risk Is a Common Blind Spot

Contracts are one of the most frequent sources of unexpected liability.

Indemnification clauses, hold-harmless agreements, and additional insured requirements can shift responsibility in ways that:

• Expand exposure beyond core operations

• Override assumptions made during policy placement

• Create obligations insurance was never designed to absorb

Because contracts are often handled outside the insurance conversation, misalignment is common.

Why “We’ve Always Done It This Way” Is Dangerous

Past experience can be misleading. A contract that never caused an issue before can suddenly become central during a loss.

Risk doesn’t change because it hasn’t been tested yet.

A proactive approach asks:

• What assumptions are we making?

• Where are responsibilities being transferred?

• Does our insurance structure reflect those realities?

Visibility Is the First Layer of Protection

The goal isn’t to eliminate every risk. It’s to make sure the risks you’re taking are intentional, understood, and insured appropriately.

What’s unseen is rarely managed well.