Top 10 Risks Business Owners Face – and the Coverage They Need to Mitigate Them

By Jennifer Chenault, Sales Executive, Lovitt & Touché 

Success. It's one word on the mind of most business owners today. Successful business owners take a realist look at how to best position their company for success and plan accordingly. They learn to manage risk and exposures.

Each company's potential risks are unique and should be evaluated independently. An insurance expert can help entrepreneurs and other decision makers navigate these areas and provide more peace of mind. If you own a business or assist with such decisions, consider these typical risks and exposures to ensure you're fully protected.

Property Coverage - Your property may be your most valuable asset, and insuring its value can be tricky.You don't want to over or under insure. To determine how much coverage you need, take a complete inventory of your assets and determine how much risk you can bear in the event of a loss.

Business Interruption Coverage- What would success look like if you were forced to shut your business down and interrupt the cash flow? Are you prepared? Depending on your life situation, this type of coverage may be needed.

Liability Coverage-Commercial General Liability (CGL) provides coverage for claims of bodily injury or other physical injury, personal injury (libel or slander),advertising injury and property damage as a result of your products, premises or operations.

Key Person Coverage - Your business may be built from the talents of key individuals. Would your operations be affected if those individuals were unable to work? There is coverage available to you that would allow you to keep your business moving forward in a time of loss.

Workers Compensation Coverage - By managing worker exposures on the job and promoting safety, it is possible to control worker compensation premiums. Successful business owners have pre- and post-accident procedures in place, along with an effective safety program, to net long-term savings.

Contingent Business Income Coverage - This lesser-known insurance covers losses incurred as a result of interruptions in the supply chain. It offers greater confidence when dealing with vendors outside your control and allows you to work confidently with suppliers who face external exposures

Electronic Data and Computer Exposure - Data breaches are on the rise in numerous industries.Cyber liability insurance can help protect your business against damage from cyber attacks, data breaches and other Internet-based exposures.

Environmental Exposure – Business owners can purchase a policy to manage their pollution exposure. Even the most careful business owner can cause a spill or a leak that will result in a claim. Keep in mind that because most commercial insurance policies contain pollution exclusions. If you don't carry environmental insurance, you may be uninsured against significant environmental loss exposure.

Employment Practices Exposure - Businesses experience this exposure from pre-employment through the exit interview. Your exposure can range from wrongful termination,inappropriate workplace conduct and negligent evaluation of job performance.This coverage can be found in a management liability policy.

Contract Exposure- Many successful business owners evaluate each and every contract that comes their way. Doing so, can help you save money in the long run. It is recommended to review contracts once a year to ensure you are up to date with any needed changes in conditions.

A successful risk management program involves prevention,training and planning. Take time to identify a broker who can help you identify risks and exposures, and navigate this complex landscape.

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