1.Assume Risk (Self-Insure)

Example: Keep risk in-house if possible. Evaluate your ability to cover some potential losses on your own.

2.Transfer (Purchase Insurance)

Example: Shift the risk to an insurance company. Purchase disability insurance to protect your income.

3.Avoidance

Example: Don’t take on the risk. Don’t put a swimming pool in your yard.

4.Reduction

Example: Lower the probable loss frequency or severity. Install burglar-proof windows or a fire sprinkler system.