Common Risks Facing Small Business and the Insurance Needed for Protection

Common Risks Facing Small Business and the Insurance Needed for Protection

If you are a business owner, then you are already well aware of the risks, rewards, and challenges that come along with the job. From getting the right financing to start to make sure you are protecting the business you have built, there are many steps to take as a business owner in today's world to protect your investment.

Here are some of the common risks facing small businesses and the insurance needed for protection.

Customer Lawsuits

No matter your industry, there is always going to be the chance that a customer is unhappy and will file a complaint and lawsuit against you. Even if the lawsuit is through no fault of your own, it can still turn out to be a costly process. For this reason, professional liability insurance should be in place. It is also commonly known as errors and omissions coverage and helps protect your business against claims of negligence as you conduct your business. 

Accidents Pushing the Business Off Track

If you have had any kind of accident that has pushed your business off track, then general liability insurance should be considered. Accidents happen and sometimes result in damage to equipment and property and sometimes even result in bodily injury. 

With this kind of insurance coverage in place for your business, you are protected against a third party's claims of property damage or bodily injury as the result of that accident or injury. 

Threat of Hackers

Since we live in the information age, we have had access to numerous business opportunities to help make our lives more convenient and our businesses more profitable. However, with this kind of technology, we are also more susceptible to the risk of internet-based data theft by hackers.

If your business, for example, accepts credit cards as payment or other digital payment types at all, then confidential customer information is being stored. For this reason, you should have cybersecurity insurance in place. This can help prevent, detect, and mitigate these risks. 

A cybersecurity insurance policy covers all privacy, data, and network exposures such as data breach responses and recovery and coverage from losses resulting from any business interruptions.

Damage to Equipment and More

At some point, you may find that your general liability insurance coverage is just not going to be enough because it only protects against third party claims rather than claims involving your own business. For this reason, a business owner's policy, or BOP, should be considered.

With this policy, you will have coverage in place to protect your furniture, equipment, tools, and anything else you use to get the job done. 

If you have a small business that you want to protect, then it is important to educate yourself on the types of insurance coverage that is available for whatever industry you are involved in.

Having your own business is already a significant investment in itself, so why not do everything you can to protect that investment and grow your business in the future? For more information on the kind of insurance coverage you should have for your small business, then contact the experts at Panorama today to get started.

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