What are the Specific Risks Associated with Business Insurance?
In today’s volatile business environment, business owners are constantly exposed to a certain level of risk. When an unforeseen event negatively impacts your business, having a comprehensive risk management strategy in place increases your chance of survival.
As a business owner, it’s important to understand the specific risks facing your business so that you can put an effective risk management strategy in place. Some examples of risks experienced by many SMEs today include:
- Financial Risk: The risk of losing an investment or achieving a lower than expected ROI.
- Currency Risk: The risk of an investment or payment losing value due to currency fluctuations.
- Credit Risk: Not receiving payment for goods sold on credit.
- Security Risk: Threat of fraud, theft, embezzlement, or misdirection of funds.
- Property Risk: The risk of damage to or loss of business property as a result of fire, flood, earthquake or storms.
- Legal Risk: Threat of facing legal action from customers, suppliers, employees, competitors, investors, or other parties.
- Technology Risk: Misuse or breach of company IT systems.
Insurance is protection for the unexpected. Without adequate insurance cover, a workplace accident, major natural disasters, serious injury or an extended court case could find your business facing huge financial burdens or even the inability to continue operations.