What should be considered when selecting the insurance plan that best fits the risk?

Selecting an insurance plan that best fits the risk involves considering the program's flexibility because it dictates how well the insurance can adapt to changes in the risk profile over time. A flexible plan allows for adjustments in coverage, limits, and terms to align with the evolving nature of the insured's risk exposure. This adaptability is crucial as it can accommodate new risks that arise or changes in the business environment, ensuring that the insured entity remains adequately protected.

When evaluating program flexibility, factors might include the ability to add or remove coverages, adjust policy limits, or modify deductibles as conditions change. This characteristic helps ensure that the insurance remains relevant and effective against emerging threats and opportunities that might impact the insured's operations. Flexibility in adjusting the plan can lead to better financial management and risk mitigation strategies.