3 Risks for Which Every Business Needs Insurance

Every business comes with its own risks. Although challenges and failures cannot be avoided, they can be mitigated with proper business insurance. Business insurance covers the array of risks that you may face during the course of your operations and, in a financial crisis, a business without insurance could easily end up going under. Today, businesses face ever more risks in our fast-paced society. Here are some of the biggest risks, and how you could mitigate them.

• Data breaches

Businesses in all industries face an increasing number of cyber security threats. According to a recent survey, only approximately 61% of the businesses that suffered a sensitive data breach took action afterwards, and only 49% reacted after their business systems and computers were hacked. Solving this problem requires a combination of a secure network protocols and the implementation of strict security practices.

However, even with these practices, businesses can never be completely immune to attacks and unrelated attacks on their server hosts can leave them vulnerable. By taking cyber insurance, business owners can also protect their business from the costs of data breach penalties and the huge public relations fallout.

• Human capital risks

Companies face the paradox of requiring more human capital to grow and flourish, but this increased growth comes with the added risk that a growing workforce can represent. This, unfortunately, grows exponentially as you become larger and larger and mismanaged risks can balloon out of control. While not a solution, having commercial liability insurance coverage will at least help to protect you, your business and your employees from claims involving bodily injury or property damage.   

            

• Natural disasters

Natural disasters such as hurricanes, snowstorms, and floods while unpredictable could easily sink your business overnight. Though the risk might seem small and distant, coverage does not usually cost very much and is always good to have. In the minute chance that it could happen, damage is never insignificant and not only might you have to rebuild, the costs of shutting down your business for days or weeks might be prohibitive. The wisest business owners will insure their commercial building and its contents for their full replacement value and rather than the market value.

Companies that are not fully insured or that are under insured may look like they are getting ahead of you. But you will definitely be grateful the when an unfortunate event that proves to merely be a setback for you, turns out to be the downfall of your competitors. Never put your business in jeopardy by risking its loss to an insurable disaster. Always clearly assess your business requirements and its associated risks to determine the best business insurance or commercial liability insurance to meet your needs.