There’s a reason businesses are investing big bucks into liability insurance. They’re protecting them from catastrophe.
Every business comes with risk. This said, most businesses face the many of the same pitfall possibilities. If you’re planning your coverage, double down on liability insurance. The big risks listed below, without warning, could wipe you out.
Risk One: Property Damage
Three in four small businesses don’t have disaster recovery insurance. At the same time, over half think it would take three months, at least, to recover from a disaster. Property damage is a huge risk. Bad weather, theft and even day-to-day customer engagement can result in damaged assets. Above all, however, the following contribute to property damage the most:
- Heavy wind
Surprisingly, nature takes the biggest toll. Make sure your policy can defend against Mother Nature. It’s one of your business’s biggest threats.
Risk Two: Professional Service Mistakes
Professional service mistakes are our runner-up, cost-wise. It might surprise you how many liability claims arise from day-to-day errors. If your business has the following workers, you should double-check your insurance coverage:
- Web developers
We’re guessing your accounting department does have these workers. Eventually, mistakes will happen. One lawsuit, even if it’s unwarranted, can cripple a small business. Therefore, consider the importance of investing in professional liability or errors & omissions coverage.
Risk Three: Cybercrime
Cyber-crime has risen, in recent years. Among North American businesses, it sits in fifth place as the most worrisome event. Cyber breaches are a real threat, and they’re only becoming more prevalent. New factors are making traditional risks worse, too. Advances in cyber technology are making old challenges more urgent and complex.
Risk Four: Building Project Damages
U.S. construction costs amounted to $1 trillion in 2015. Industry booms have created a new demand for building projects. Many of these projects go towards businesses hoping to expand. These business plans, however, come with a fair amount of risk. Don’t move forward without a contract. Make sure your general liability insurance plan is secure. Also consider investing in any contractual liability insurance or bonds, as needed.
Is your plan strong enough? Don’t hesitate to fill in the gaps with extra coverage. Even if your liability insurance plan is a comprehensive one, you should think about getting an umbrella policy to protect you. Assess your risks, consider your policy options and move forward with full security.
More Information: Business Liability and Your BOP Policy: Ways to Stay Protected