Small businesses are one-of-a-kind in many ways. They can lack the extensive resources and knowledge base that multimillion-dollar organizations may possess. As a result, while small businesses may face similar risks as larger counterparts, they may be more vulnerable and thus require more careful risk strategies.
To lessen the impact of any disruption to your business, assess your insurance needs, purchase the policies you require and make plans for how you will handle any other types of events that may occur.
Identifying potential risks is the first step in implementing a comprehensive commercial insurance and risk management plan. To get you started, we’ve compiled a list of the top ten threats to small business owners. As you go through the list, consider the specific risks that your company faces and whether those risks are being managed effectively.
- Cyber Liability– Cyber liability and data theft are some of the hottest topics for businesses, risk managers, and insurance companies.
- Employee Safety– Making sure your business follows all COIVD compliance protocols will be a top priority.
- Remote workers– In 2021, remote working and safety measures should become more routine. How businesses recruit, onboard, train, and terminate employees has changed, some say permanently. How companies are dealing with employee burnout, talent management, and allocating will need to be addressed.
- IT security– Remote workers will require new IT protocols.
- Slow economic recovery– Businesses will need to do planning to manage the recovery in 2021 and 2022.
- Government mandates and regulations – There continues to be increased oversight from the government in healthcare and financial reporting that creates new risks and liability for businesses.
- Political and Civil Issues – As seen in 2020-21, political and civil issues have a direct impact on many small businesses. Having the right kind of business insurance is important to protect your business in the event of civil riots.
- Business Interruption – If your business has a loss and you are unable to operate for a period of time, you will need financial resources in order to get back in operation. You may even need to continue payroll for a period of time. Business interruption insurance can provide these resources.
- Class actions and COVID-19 cases- This year has also seen the first class-action lawsuits directly related to COVID-19. Examples include lawsuits against cruise lines that suffered coronavirus outbreaks, as well as suits regarding the business impact of COVID-19 on companies’ financial performance or operations and misrepresentations about COVID-19-related therapies.
10.Property losses – Property is frequently the most valuable asset of a small business owner. As a result, evaluating potential threats to your property and developing a plan to manage those threats is critical for the long-term security of your small business. Property coverage can take many forms to meet your specific needs, but a typical policy will cover the replacement cost of your building as well as the value of your business property, equipment, stock, etc.
Ensuring that your business insurance and workers’ compensation insurance policies are adequate for your current risk level will provide you with peace of mind and will aid in the reduction of understaffing-related losses.
Insurance is an important component of any comprehensive risk management strategy, but effective risk management also includes prevention, training, and contingency planning. Contact our office. To learn more about the tools and resources we can provide to assist you in risk management, safety advancement, and employee morale.
Commercial business insurance is an important aspect of any business that cannot be ignored, especially if the business premises are leased or rented and even otherwise. Whatever your commercial insurance needs, we can design a protection program that’s right for you.