3 Common Small Business Risks to Understand

Do you own a small business? If you haven’t taken the time to evaluate the risk level of your company, you are putting yourself and your enterprise in serious financial jeopardy. Here are three common risks to know and understand.

Risk #1: Property Damage

Property damage is a serious risk that all businesses face—no matter what the size of the company. Fire, theft, vandalism, bad weather, and other similar circumstances where the items you need to run your company are damaged to the point of repair or replacement all fall into this category. This can even include the building where your firm operates, if you own it. As you can tell, property damage can become costly in the event of a situation, so it is very important to protect yourself with adequate insurance coverage ahead of time.

Risk #2: Liability Claims

Liability claims happen anytime a third-party is accidentally injured—either physically or emotionally—by the direct actions of your company or employees. This extremely broad category spans everything from minor injury to malicious slander. Unfortunately, liability is one of the most expensive risks a small business faces due to the rising cost of healthcare bills in this country and the chance that the other person might file a lawsuit. A good professional liability policy is a must-have protection mechanism for all small businesses.

Risk #3: Worker Injury

All small businesses that have employees encounter the risk of worker injury. These instances can range from minor sprains and strains to life-threatening accidents. Here in Texas, worker’s compensation insurance is a requirement that can greatly help you protect your company against a staff member’s injury. However, regularly offering safety classes and creating an environment that fosters the well-being of employees is a good way to mitigate a situation from even happening in the first place.

Ensure your business is protected against these risks and many others. Please contact our team at State Insurance Solutions for further information.