When you’re a small business owner, it’s easy to think that you don’t need insurance. After all, what could possibly go wrong? Unfortunately, the answer is “plenty.” From fires and theft to lawsuits and natural disasters, there are any number of things that could happen to your business at any time and without insurance, you could be on the hook for thousands (or even millions) of dollars in damages.
In this blog post, we’ll take a look at six of the most common risks faced by small businesses, and how having the right insurance from top small business insurance companiescan help protect you from them.
Risk #1: Liability Risks
Even if you run a tight ship, accidents can happen. Maybe someone slips and falls in your store, or maybe one of your products causes injury or property damage. If you’re sued as a result, do you have enough money to cover the cost of a settlement or judgment against you? That’s where commercial general liability insurance comes in.
Risk #2: Product Liability Risks
If your business manufactures or sells products, you could be held liable if those products cause injury or property damage. For example, let’s say you sell cosmetics and a customer alleges that your lipstick gave her hives. If she sues and wins, product liability insurance can help cover your legal costs—including settlements and judgments—up to your policy limit.
Risk #3: Natural Disasters
Depending on where your business is located, it may be at risk for floods, earthquakes, tornadoes, or other natural disasters. And if your business is damaged as a result, will you have enough money to cover repairs? That’s where business interruption insurance comes in. It can help reimburse you for lost income and expenses incurred while your business is closed for repairs.
If you’re not sure whether your business is at risk for natural disasters, it’s a good idea to speak to an insurance broker. They can help you assess your risk and find the right coverage for you.
Risk #4: Theft And Burglary
Your business may be a target for thieves, whether they’re looking for cash, equipment, or data. If your business is robbed, will you have enough money to cover the cost of replacing what was stolen? Business interruption insurance can help you recover from a theft, as can property insurance, which can help reimburse you for the cost of repairing or replacing damaged property.
Risk #5: Employee Theft
Employees can also be a risk to your business. Maybe they steal inventory or customer data, or maybe they embezzle money from the company. If this happens, you’ll need business liability insurance to help cover the cost of any damages.
Risk #6: Credit Card Fraud
Credit card fraud is a growing problem for businesses of all sizes. If your business accepts credit cards, you need credit card fraud protection to help cover the cost of any fraudulent charges.
The Bottom Line:
As a small business owner, it’s important to make sure you’re properly insured. There are many risks that you face, and if one of them happens, you could be on the hook for thousands (or even millions) of dollars in damages. By having the right insurance in place, you can help protect your business from these risks.