Buy Insurance! And Other Ways To Protect Your Business


Michael Foote
Buy Insurance! And Other Ways To Protect Your Business

 

A small business is not just a project that they want to make a reality. It is the owner’s livelihood. Its success or failure has a real life impact on that person’s capacity to pay their bills and lead the sort of lifestyle that they wish to lead. That is why it needs to be protected. If you are a budding entrepreneur, or you have been running your small business for a while, there are certain things that you can do to make sure that your business continues to be viable. One of the most important is buying insurance. Just as you may wish to protect your home, or the health of your family, by buying insurance, protecting your business is no different. Except it is, in some fundamental ways. While building and contents insurance is a sensible investment, you should also thoroughly check that your business is compliant with the relevant health and safety codes. The fire code, for instance, might seem like an exercise is tedious bureaucracy, but it is there to protect you and your employees. However, it is sometimes your employees that are the threat. If one of them, or if a visitor, injures themselves, you could be considered to be personally liable and end up facing an expensive, time-consuming lawsuit. To avoid this, you may also want to think about business liability insurance, as well as registering your business as a limited liability company (LLC). This is intended to ensure that your personal assets will not be subject to damages. It is not an absolute guarantee that this will not take place, but it is a good first step.

However, protecting your business requires that you are dynamic and informed. The threat to your computer system was ably demonstrated recently when systems in ninety-nine countries around the world were hit at the same by ransomware. Major institutions like the NHS were affected. If you are not protected, you could suffer. A recent study found that 60% of small businesses that are hit with a cyber attack are out of business within six months. However, one of the greatest vulnerabilities of a lot of businesses face when it comes to cyber threats is their employees. This is especially true if they use their own phone or tablet to work. This is a problem, but there are BYOD Solutions. One of the most important is educating the people you work with so that they can better identify and avoid potential threats. This may mean attachments in emails from people they do not know and trust, or phone calls from people who ask questions that sound reasonable but which are actually malicious. It is a form of social engineering.

Another potential threat from your employees comes in the form of theft. Fraud is serious, and to avoid it you should implement non-disclosure agreements when someone joins your company. A study in 2014 found that 30% of business failures are caused by employee theft and that the median loss for a single occupational fraud is $145,000.

Michael FooteBuy Insurance! And Other Ways To Protect Your Business

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