It’s a huge venture to set up a business, but once you’re up and running, there are all kinds of risks you need to be aware of that could threaten your enterprise. Granted, some are bigger than others, i.e., the kind that can cause you to go bankrupt, but even the smaller ones can affect you.
Insurance is, therefore, a wise choice to protect your business from potential pitfalls. It’s surprising how many small businesses choose to forego this to their detriment. Or you could end up under-insured as the business grows, and your hard-fought success can disappear in a flash.
Here are 5 potential risks that could take your business away:
1. Theft & Loss
You may feel your business premises are pretty safe when you lock up and head home for the night, especially if it’s alarmed. But no property is infallible and theft, plus ensuing loss of equipment, is something that every business owner needs to think seriously about. Failing to adequately insure your business for theft and loss is putting your whole enterprise at risk, especially if you don’t have the capital to replace vital equipment.
2. Damage & Loss of Income
If you have the type of business that’s operational online and all you need is a laptop and WiFi, then you can escape the rigours of storm season simply by being portable. But if your business is office or shop-based, then a particularly nasty weather system can impact your ability to operate due to damage of premises, power outages and a lack of customers.
While storms are physically damaging for businesses, the downtime can be even more damaging due to loss of revenue. Fire is also another unforeseen catastrophe that businesses have no control over, but can potentially put you out of operation if you don’t have insurance.
3. Changes in Infrastructure
Cities are ever changing places, and if your business relies on its location for success, then a change in infrastructure can be disastrous, either immediately or further on down the track. Examples can be a zoning law change, a new highway being constructed or the customer base you cater to changing over time. These all have the potential to impact directly on your business now or in the future.
4. Operational Risk
The first three risks we’ve looked at stem from external factors but every business has internal risks that need to be considered such as technical failures (equipment breakdowns) and human error (staff making mistakes that cost the company money). These can mean a potential loss of revenue as well as customer loyalty if you can’t sort out the problem immediately. Risk insurance can help to bridge the gap and keep you operational during this period.
5. Reputational Risk
If you want your business to be a success, then you have to invest time and effort into exceptional customer service and build a reputation for being reliable and trustworthy. You may take your reputation for granted, but if it is damaged the knock on effect can be almost instant, resulting in loss of revenue, loss of staff, loss of advertising offers and negative online reviews. But many a business has survived a loss of reputation and come out the other side stronger, simply because they had adequate insurance.
Allsafe can help manage risk and find the right insurance solution for your business. Contact us today to protect your assets.