Small businesses are the lifeblood of local communities. From the local baker’s shop to the auto mechanics, small businesses abound and provide jobs and services for many. However, unlike their much larger brethren, they do not usually have dedicated risk management departments to protect them from unforeseen consequences. Thus, a small business owner must act as a risk manager and work to prevent any negative occurrences.
First, a small business should look at potential losses or other liabilities. This means determining what could happen if you lose your stock, physical structure, or data, are the subject of a lawsuit by an employee or customer, and other issues.
Once you have listed the risks, you should attempt to assign them probabilities and damages. For example, although it will cause heavy damage, how probable is it that your building will spontaneously collapse? On the other hand, it is likely more probable that you will have to endure an adverse weather issue leading to the closing of your business for a few days.
Following that, taking steps to mitigate any potential damages is key to preventing negative long-term effects. This could include, for example, paying for hurricane shutters in an area prone to severe storms or paying for employee training on the proper way to serve hot food items to customers.
Whether you’ve created a risk management plan from day one of your business or find yourself in need of one now, contact us so we can help provide the right insurance coverage for your business.