We get it. Cybercrime puts you on edge. Unknown entities tapping into your customer data? That's freaky. And defending your business against these breaches is getting harder by the day.
Naturally, we'll discuss plenty of data breach risk management tips this National Cyber Security Awareness Month.
At the same time, data breaches aren't the only thing that put your business at risk. In fact, they aren't even in the top 10 most costly or common small business insurance claims. But these four risks are.
1. Burglary & Theft
Burglary and theft may seem a little sexy when it's happening in a heist movie. However, all the sexiness disappears if you're the person who gets ripped off.
If you have a brick-and-mortar store, hopefully you've invested in Commercial Property Insurance. But all the insurance in the world can't stop a break-in. That's why you might also want to:
- Install a security alarm with UL-certified central monitoring station.
- Perform background checks on new employees.
- Use timed lights to create the illusion of late-night workers.
"Sometimes, going simple is just as easy as going high-tech," he says. "A door with shatter-proof sensors and double floor bolts works just as well as any digital lock."
2. Customer Injuries
A customer tripping over a power cord doesn't seem like a big deal, but a bad fall can mean medical bills and lost wages for the injured person. Those costs may fall to you if their accident is your fault. To minimize the chance of a customer slip and fall…
- Evaluate your premises for hazards like cluttered aisles, icy walks, and loose railings or floorboards.
- Place warnings signs to alert customers to any dangers.
- Establish procedures for handling customer injuries.
How you handle a slip-and-fall accident may be the deciding factor in whether or not the injured party sues you. According to Lawrence Buckfire, managing partner with Buckfire & Buckfire, P.C. (@BuckfireLaw), customers are more likely sue if the business owners appears indifferent to their injuries.
"You do not need to apologize, but just show that you care that a customer was injured on your property," he suggests.
Pro tip: Businesses with more foot traffic, like restaurants and retail stores, run a greater risk of customer slip-and-fall injuries and may need higher limits on their General Liability Insurance.
Fire is the only risk that earns a spot in the top five for both the most costly and most common small business insurance claims. So while restaurants and manufacturers may have the greatest risk, all business should take steps to prevent fires.
For example, you can…
- Keep electrical appliances away from flammable material.
- Train employees on how to properly use fire extinguishers.
- Make sure emergency exit doors are open and available.
Pro tip: Your location may also make you more vulnerable to fire. Check out the Zip Code Tool on the Insurance Institute for Business & Home Safety's homepage. Enter your zip code to see if your area has a history of wildfires and to learn how to protect your business.
4. Product Liability
Product liability woes aren't only for manufactures. Any business involved in bringing goods to consumers can be held responsible for their defects, including…
To keep your customers and your business safer…
- Write clear warnings and instructions.
- Regularly check for product recalls and immediately remove recalled items.
- Inspect retail stock for defects.
Pro tip: Product Liability Insurance, which is usually included in General Liability policies, may not cover recalls. Talk to your agent to learn more.
Get more ideas for minimizing risk in "19 Tips to Prepare Your Business for the 10 Most Common Insurance Claims."