Small business owners are, by nature, risk-takers. After all, who wouldn’t call giving up the security of a regular paycheck to strike out on your own in commerce? Unfortunately, there is a point at which risks can become so high and too numerous that they can threaten your future.
There are ways to minimize risks, which is why business insurance options at Garrity Insurance should be a top priority to protect your hard-earned efforts. What follows are only a few of the most common risks associated with a small business.
1. Liability Risks
Regardless of the type of business you run, it is likely that it could incur a loss during its lifetime. Unfortunately, there is no such thing as a comprehensive insurance policy against unprofitable times. Still, there is Commercial General Liability insurance for liability on damages that a business could be found responsible for, including property damage and bodily injury to third parties, caused on-site. Whether these parties are customers, employees, or others, CGL insurance will protect you.
2. Property Risks
Regardless of where a business is operated from, there can be specific unseen hazards that end up ruining you. A faulty electrical problem could cause a fire that might destroy furniture, inventory, equipment, electronics, and other essential items of business. The costs of repairing or replacing these can become astronomical, leaving a business owner in severe trouble or out of business.
With Commercial property insurance, however, an entrepreneur can be back in business.
A growing number of entrepreneurs operate from offices located in their home, which makes things like damage from a fire a threat to not only the business but the home as well.
Most homeowners’ insurance policies don’t cover losses to home businesses. Still, with a home-based business insurance policy, an entrepreneur is protected with coverage that will allow repairs or replacements of assets.
3. Business Interruption Risks
Due to the recent pandemic and social upheaval, most small business owners have been forced to consider the possibility that their business could be at risk due to interruptions. Due to any number of these types of cases, a company could temporarily close for repairs. Business interruption Insurance would allow an entrepreneur to cover operating expenses and lost income while a business is temporarily closed.
4. Cyber Security Risks
With the growth of computers in businesses, both large and small, cybercrime puts almost everyone at risk. And although larger firms have become more adept at protecting themselves against this problem, criminals have moved down the food chain to reach small businesses where cybercrime isn’t often a big concern. Today, small businesses are the preferred prey for cybercriminals. Fortunately, there is cyber risk and data breach insurance, which protects entrepreneurs and allows for preventive measures against internet-based crimes.
5. Legal Risks
Legal risks have never been far from the minds of most smart entrepreneurs, but preventing these and related problems have always presented perplexing situations for now and down the road. Legal expense insurance can smooth that road by covering the entrepreneur against the costs of legal actions brought against him.
Insurance is a vital consideration of any business owner. By having adequate insurance coverage against these risks, steps can be taken to allow entrepreneurs to not only manage their business better but protect their possessions and property when problems strike.