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Top 5 Business Risks and Their Solutions

Top 5 Business Risks and Their Solutions

Business Risks

Are you brave enough to take on all the business risks associated with running a company in order to succeed?  We hear that all they time, but what risks is everyone talking about?  They’re talking about risks including but not limited to natural disasters, accidents, and theft which lead to a loss in revenue and even legal liabilities. It’s the last one that that every business will face sooner or later.

It’s good to have protection with liability insurance, but do you know if your policy has gaps?  You better.  The gaps are what attorney’s will look for when they sue your business.  Don’t think it won’t happen either.  You can be sued for anything these days.  The good thing is that we can always protect our companies by identifying these business risks and taking steps in mitigating them.

Before we proceed with listing down the various business risks owners face, you have to remember that there are different types of business insurance policies that can help ease your worries. You can approach your business insurance agent and request a business risks quote to know your options with regards to coverage.

Now, here are the top 5 business risks that you may face as a business owner. We will also include tips and techniques on how you can mitigate the possible damage from these business risks.

  1. Business Interruptions – Fires or other unforeseen events including natural calamities that may force businesses to close or relocate.

    1. Solution – It is always good to have a disaster recovery plan for your company including backup and recovery strategies. You should also consider getting business interruption insurance for your company for the added coverage. This kind of policy normally covers up to a year of lost revenue in the form of reimbursements.

  2. Property loss – Just like your personal properties, your business properties also need protection from unexpected and untoward events.

    1. Solution – Think about getting a business owners policy. It will cover damages resulting from storms, fire, and other disasters. This policy should be considered whether you rent or have your own building.

  3. Injury – Workplace injuries are not really rare and it will result in medical treatment costs and loss in productivity. It will also be a factor in the increase of your business insurance premiums.

    1. Solution – Educate your workers regarding safety measures while working within the premises of the company. Also, take advantage of a worker’s compensation insurance that will protect the company in the event that one of your workers gets injured while working. It will also provide wage replacement and medical benefits to the injured staff member.

  4. Liability – Companies are beset with the risk of getting sued for libel, accidental injury, and other untoward incidents that may result from day-to-day business.

    1. Solution – Always check your business process regularly and adjust it if needed to mitigate risks. In the event where something unexpected happens then general, product and professional liability policies will be your friend. These policies will protect you from third-party insurance claims.

  5. Security breach – Technology is any business owner’s friend these days but it can also cause problems in the event where there is loss of data or data theft is becoming one of the fastest growing business risks today.

    1. Solution – Develop a plan to help protect your company data both on-site and remotely. You might want to invest on data compromise and identity recovery insurance if you believe your company relies heavily on your data.
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