You may not like to think about risk to your business. The word “risk” itself invokes feelings of stress, uncertainty, and possible nightmarish outcomes.
But every responsible business owner needs to accept, understand, mitigate, and effectively manage risk: any unexpected incidents, occurrences or situations that prevent your company from operating safety and profitably.
How Do You Find the Right Business Insurance?
Business risks typically fall into one of two categories:
- Pure risks: Incidents that a company has no way of controlling, such as a wildfire, vandalism, or the unexpected death of a business-critical employee.
- Speculative risks: the positive or negative outcomes of management decisions, such as fallout from launching a new product or expanding into a new geographic region.
You can’t afford to put risk management on the back burner.
Risk management, which typically applies to pure risks, is the ongoing process of identifying and managing threats, so your business can continue to operate successfully, while dealing effectively with any unexpected disruptions. It involves fully understanding and controlling those threats – anything from a flood to a fire, a data breach to a disaster brought on by natural causes, a minor injury to a major catastrophe.
What coverage do you need?
Common forms of small business insurance to help you minimize the downfall from risk include:
- General liability: This covers the most common forms of business risk, such as customer injury or property damage and advertising injury. It protects your company from the potentially exorbitant costs of lawsuits and helps you qualify for leases and contracts.
- Commercial property: This pays to repair or replace stolen, lost or damaged business property. It covers your company’s physical location, as well as equipment and other assets.
- A business owner’s policy: This option bundles general liability with commercial property coverage. It typically costs less than if the two policies were purchased separately.
- Directors and officers coverage: This protects board members and company officers from legal expenses in the event they are sued for a decision they made on behalf of your company that led to financial loss.
- Professional liability: Also known as errors and omission coverage, this protects small businesses against the costs of client lawsuits over unsatisfactory work.
Whichever type of plan you have in place, it’s important to revisit it every six months or so to ensure that it stays current.
The range of business insurance options is very broad – and you may need a trusted partner to help ensure you make the right choices for your growing company.
Looking For Better Business Insurance? Lyons HR Has The Resources to Help!
Lyons HR has provided comprehensive HR solutions – including insurance planning and management – to hundreds of clients nationwide since its founding in 1995. Through our partnership with Aligned Insurance, we offer experienced agents with the knowledge and industry intelligence you need to make the right choices for your growing business. Contact us today to learn more or set up an informational session.