As an entrepreneur, you’re bound to face risks when starting a new business. The success of your business could depend on how you identify and manage these risks to give your company room to grow. Here are five common risks many entrepreneurs face at the onset of their small business.
Business property is a vital asset that needs to be well protected by your insurance policy. By assessing the value of your property, you can determine the amount of coverage you’ll need to cover damages in the event of a claim. Insufficient coverage can result in financial setback for your fledgling business.
As an entrepreneur, you have to be prepared for any eventuality. This includes being liable for damages or injuries to customers from accidents that occur on your property or use of your products. Commercial liability coverage can protect you against these liability losses so you don’t have to pay out of pocket.
If an accident or disaster causes damage to your business property, you may be forced to stop production or move to a temporary spot while building repairs are made. Having business interruption insurance to compensate for loss of income and operating costs during your recovery period can save your business from financial ruin.
Injuries to Employees
Without workers comp insurance, a workplace accident can have drastic consequences on a small business, as business owners would be liable to pay for medical expenses and/or a disability settlement out of pocket. By promoting a safe work environment and managing exposures, entrepreneurs can keep worker’s comp premiums at reasonable costs, enabling their business to benefit from this coverage.
Key Personnel Losses
As a small business, you may suffer financial loss due to losing key personnel essential to the running of your company. Key person coverage can offer you financial stability in the interim period of finding new personnel to sustain your business.
Learn more about comprehensive commercial insurance and how it can benefit your business by contacting us at The Insurance Outfit.