Will Your Business Survive?

A Business Insurance Update

Your business insurance can respond to many kinds of risks and losses.  Protecting your business from loss can mean the difference between having a great year, and having to close your doors.  According to the Insurance Information Institute, 30% of businesses that have a fire never re-open.  Therefore, it pays to have the right business insurance and to manage your top risks.  However, do you know the most common risks faced by most businesses? 

Business Risks

• Cyber breach: Your small business has a greater chance of having a data breach than it does of having a fire.  Make sure you have a cyber liability insurance policy.  Don’t save passwords on your computer, use the latest security software, train your employees on cyber security, and never use an open network.
• Replacement cost coverage: Replacement cost coverage essentially means that the insurance company will replace the damaged or destroyed property with new property up to the policy limit, as long as it is with “like kind and quality”.
• Customer trip and fall: Make sure you keep your business entry clean and clear of clutter.
• Flood: Your business insurance excludes flood damage.  If you are close to water, make sure you consider flood insurance.
• Business income extra expense: This covers the loss of income that a business suffers, after a covered loss, while its facility is either closed because of the loss/claim or in the process of being rebuilt. Extra expense insurance covers some of the reasonable and necessary costs a business incurs, such as the costs of setting up business in a temporary location while its damaged facility is being restored.
• Fire: Every business is at risk of fire. Install automatic alarms to ensure proper notification, disconnect equipment when not in use, and never overload sockets with plugs.
• Theft: Develop a system for end of day closure procedures. Keep a light on at night.  Burglars are less inclined to break in if they think someone is there.
• Employment practices liability: Protects against wrongful employment practices including wrongful termination, discrimination, and sexual harassment.