Risks that business owners underestimate.
With every new business venture, there is an element of risk and optimism. No budding entrepreneur wants to think about worst-case scenarios before they’ve even got started. Optimism is one of the key elements to harness as a business owner, after all. Yet, too much optimism can hinder a business owner and the business by leading them to overlook common risks. Being prepared for risks, no matter how likely or unlikely, could mean the difference between success and failure. Here are a few risks that are often underestimated by businesses.
- Business interruption
If a disaster tears through your property, what would you do? Ideally, you would move to a temporary location while your permanent place of business is being repaired. However, your property insurance most likely won’t cover the cost of relocation and the loss of income. For some businesses, such a disaster would force their business to close. To mitigate this risk, consider adding business interruption coverage to your policy. This coverage helps with operating expenses and lost income in such a situation.
- Injuries to employees
Small business owners often don’t realize the full effect workplace accidents can have on their bottom line. Beyond initial treatment costs and lost production time, on-the-job injuries can cause your insurance premiums to skyrocket. Having the proper procedures in place can reduce your liability exposure and implementing a comprehensive safety program can reduce the accident rate.
- Electronic data
Small businesses often lack a formal IT department and even fundamental internet security measures. This leaves them vulnerable to cybercriminals who are looking for an easy target. If your business’s personal information, client details, and more were hacked, you could be in a lot of trouble. By staying on top of the latest security procedures and securing cyber liability insurance, your business is prepared for the worst. Cyber liability coverage helps when your business has fallen victim to a data breach.
Have questions regarding your business insurance? Talk to the professionals at Unisource Insurance Associates to get started on your tailored policy today!