Safeguarding business, this is a top priority for every business owners. Accidents, natural disasters and even embezzlement can lead to loss of revenue, big headaches and legal liabilities.
But fortunately, you have the option to protect your business by just identifying those potential risk and creating actions in order to mitigate those possible risk.
“Identifying and creating actions” this is the key concept to reduce business risk.
In this article, we manage to identify common business risk scenarios and share helpful ideas on how other business owners formulate their solutions to reduce the possible risk that it may happen.
Risk Scenario #1
Unforeseen interruption on business operation like fire, this situation has potential threat to relocate or even close a business.
Build disaster recovery design that backups data with recovery strategies, add plans that will set up remote location and notify workers about latest situation.
It is a plus if you purchase “business interruption policy”, this will help cover operating cost and the loss of income so business can still maintain its regular payroll while the replacement of damage equipment is on the process.
This type of coverage provides reimbursement to loss of revenue within a certain year.
Risk Scenario #2
Loss of property, protection of your business assets from unexpected, like what your home does.
Audit your overall business assets and locate the areas with high vulnerabilities. “Owner’s policy,” is suited for this type of situations that can help your cover damage on your assets from unforeseen disasters.
These type of policy can be purchased whether you rent or own the property.
Risk Scenario #3
Unforeseen injuries during work that results to medical treatment and productivity loss. This type of situation can puff up insurance premiums on your business.
Information dissemination with employees about safety and ensure every workers with full compensation thru insurance.
Insurance policies that provides medical and wage replacement to workers in case of injury during the job, this will also protect your company from legal actions relating to accidents in lieu to the execution of the job.
Risk Scenario #4
Lawsuit risk in situations like injury, liber, and unforeseen results made by day to day operational activities of the business.
Guarding unknown events can be challenging, so design business operational practices that lessens risk. Professional, general and product liability policies offers coverage on businesses exposed on certain threats.
If you don’t have one, talk to your agents and identify the type of liability coverage your company need.
Risk Scenario #5
Breach of business security. Your business can be crippled any moment due to risk of data loss or theft.
Map certain strategy to protect company data. If covering data loss becomes difficult, invest in identify recovery or data compromise insurance.
This will help you protect against unforeseen digital damage due to damage to computer system, storage, device, software and other data related recovery. Your agent will explain appropriate policy for you.