Business Insurance is a necessity for any company. Not only does it protect against the unexpected, but it also protects the business owner and their employees. If a lawsuit arises, or a natural disaster strikes, a business owner is glad that they had insurance to cover the expenses. If there was no insurance, it would be hard to recover.
Data Breaches
Data breaches are a rising problem in the United States. The number of breaches reported in the United States has rapidly increased in recent years, with the number of reported breaches reaching an all-time high in 2016. Data breaches can have a devastating impact on the victims, with many victims reporting that they have experienced financial loss, identity theft, and increased risk of fraud. Two of the largest data breaches in 2016 were Equifax and Yahoo, both of which reported that hundreds of millions of people were affected by their breaches. In addition, both of these companies may be forced to pay millions of dollars in fines for failing to comply with a security regulation.
Property Damage
The insurance company for the business will have to assess the damages in order to determine the amount of compensation that will be paid to the property owner. The business owner can choose to have the insurance company pay for the repairs, or they can do it themselves. The amount of time that the business is out of commission will have to be factored into the compensation.
Human Capital
The human capital of a company is its most valuable asset, and protecting it is the most important part of any company’s business insurance. Without human capital, a company cannot function. With the cost of hiring, training, and retaining employees, it can be difficult for companies to keep up with the costs. Even if an employer has the best insurance a company can get, they can still be sued by an employee. If the company is unable to control employee behavior, they may be held liable for any injury the employee may sustain on the job. This can result in serious financial implications and a drain on the human capital of a company.
Professional service mistakes
It’s no secret that mistakes are a part of life. It’s also no secret that mistakes can cost a business. A mistake can come in many forms and can be costly in many ways. Some mistakes are costly because of the time it takes to fix the mistake. Other mistakes are costly because they cause a customer to be unhappy. Whether the mistake is big or small, it can potentially hurt your business.
International Manufacturing and Export/Transit Issues
The risks of international manufacturing and export/transit are endless. The latest international news has been on a US-China trade war. There are many other international trade agreements that have been negotiated to try to ensure a fair playing field for international business. The World Trade Organization, WTO, was created to help enforce the more than 100 international trade agreements. With the exception of China, the US has not been very active in the WTO. This is one of the major reasons for retaliation from other countries.
Building Projects
Building projects can be risky, but it’s important to know that there are ways to mitigate the risks. It’s important to know that there are ways to mitigate the risks. For example, you can buy insurance to cover the cost of any potential damages.
