Having a small business surely has its perks, but along with the perks come some potential risks that almost all businesses may face at some point. Accidents can lead to legal liabilities. Theft by employees or third parties can lead to lost assets. Damage to property can lead to lost business income.
No matter what industry you are in, by identifying risks, your business can be better prepared for potential hazards. Here are five different risks that are common to most businesses along with how to minimize the repercussions.
· Damage to Your Business or Its Contents: If a fire or natural disaster strikes, your business may be at risk. Damage to company-owned buildings, contents, and supplies/stock should be properly insured to minimize the financial impact of a loss to your business.
· Business Interruption: If a disaster were to occur and your business location is uninhabitable or your operation is no longer functional, does your business have a plan in place? Events such as fire, wind, lighting, theft, or other perils may force you to temporarily relocate while repairs are being made or property is being rebuilt. Consider purchasing business interruption insurance if you don’t already this valuable coverage in place.
· Crime Coverage: Businesses have internal and external exposures to theft and this risk should properly be evaluated and covered by crime insurance. This includes the potential for theft of assets by way of computer fraud or funds transfer fraud as well as losses due to forgery or alteration.
· Injuries at Your Business: If a customer visits your business and becomes injured, you could be found liable and may find yourself having to cover their court costs, legal fees, and medical expenses. This type of coverage is usually included within your general liability or business liability, but take a moment to see if the limit of insurance is sufficient. Should one of your employees become injured while performing his or her job duties, then workers compensation coverage would apply.
· Data Breaches: Arguably one of the most important topics in today’s world, data breaches are becoming increasingly prevalent to businesses. Be sure to train employees on proper information security practices and ensure you are always using secure networks, encrypting data, and requiring password protection on all devices. You may want to consider adding cyber/privacy liability insurance coverage to your program, which will assist with costs stemming from a data breach.
You many never know exactly what type of situation may arise that can put your business at risk. By having proper policies in place, you can help minimize your risk and have peace of mind.
If you have any questions, please reach out to The Uhl Agency at (937) 434-9090.