Historically small business used to mean less risk and exposure. Consequently, simple insurance products were all an entrepreneur needed. However, with today’s changing workforce, customer needs, evolving technology and new regulations small business operations have changed and so have their needs. Small business owners can no longer run their companies under simple terms.
Studies show professional liability, workforce issues and crime risks are the top reasons the small business environment is changing. As a result, small business owners can no longer rely on the simple insurance policies and are now learning to better manage risk. Risk management no longer entails a simple insurance policy but a more robust, complex look at the business’ potential vulnerability for each type of risk they may face.
Simple strategies a small business owner can take to identify and manage top risks are outlined below:
- Protecting their property
- Business Interruption
- Liability Losses
- Key Person Loss
- Injuries to Employees
- Managing Electronic Data and Computer Resources
- Environmental Exposures
- Employment Practices
- Manage your Supply Chain
Over the next series of posts, we’ll dive into key exposures your company may face and what you can do to mitigate those risks.
The SBA also provides a Small Business Insurance and Risk Management Guide which can help identify potential risks.