Risk is part of running a business, and it should never be downplayed or ignored. You need to take financial issues, compliance concerns and legalities into account when assessing business risk and arm yourself with resources to ensure you’re prepared to deal with the unexpected.
Key Services to Protect Your Business
If you’re wondering how to reduce business risk without overburdening yourself or your staff, there are several important services in which you should invest. Together, protection in these four main areas forms a comprehensive plan for shielding your operation from common business risks.
Comprehensive insurance coverage is a must for any company. The types of business insurance you need may vary depending on your products, services and industry. Common policies include:
- General liability
- Professional liability
- Product liability
- Business interruption
If you have any employees, you also need workers’ compensation insurance to cover lost wages, medical care and other expenses associated with on-the-job injuries. A business owner policy (BOP) combines several types of insurance into a single policy, making it easier to manage the various types of coverage required for your company.
Not sure where to get business insurance? Check with the National Association of Insurance Commissioners (NAIC) for licensed agents in your area. Members of the NAIC adhere to specific standards and best practices established by the organization, so you can be confident you’re getting reliable advice.
In general, you want to make sure your operation is protected against negligence, product defects, fire, storms, theft, auto accidents and consumer complaints.
If you’re operating in an area prone to natural disasters, such as earthquakes or floods, it’s a good idea to get additional insurance to cover related damage. Companies dealing with a lot of data or maintaining large digital operations should consider some form of cyber insurance.
*Note: If you need extra funds to help repair your business, replace broken or damaged equipment, or restore your building after damages, there are many disaster relief business loans with emergency 24-hour funding, and simple qualifications.
HR Management Platforms
How does using human resource management software protect your business? Consider the consequences of making a mistake with:
- Payroll, including overtime pay
- Recruitment regulations
- Compliance reporting
- Dispute resolution
- Vacation time or sick leave
The right type of HR system puts all employee information together in one administrative platform where your HR department can monitor activity, make updates and generate reports as needed. It also provides a central location from which to distribute employee handbooks, information on company rules and new regulations to staff members.
As a business owner, life insurance is a necessity. You’re not getting the same kind of insurance benefits you would if you were working for someone else, and your family needs to know they’ll be protected should something happen to you. This includes being able to pay off outstanding business debts without sacrificing personal property.
Life insurance comes in many forms, including personal policies and “key person” insurance for the top players in your company. Whole-life insurance accumulates additional cash value during the course of your lifetime, which can be drawn on while you’re still alive to cover business expenses or meet financial obligations.
Depending on how you set up your life insurance, the benefits can go to your family, other owners in the business or the business itself. Choose the policy type and structure best suited for the needs of the company and your dependents.
Legal Insurance Plans
Legal battles cost a lot, and it’s money your business can’t afford to put at risk. Business insurance policies cover some eventualities, but what do you do if you have a question only a lawyer can answer? Instead of shelling out hundreds in fees for legal consultations, you can get an insurance plan to cover business legal services.
Yes, legal insurance does exist! It’s a low-cost way to get access to the advice of a knowledgeable business lawyer and essential legal services. In exchange for a monthly payment, these plans give you the freedom to seek advice regarding compliance, employment laws, contractual obligations and more.
Should a complex problem arise, legal protection insurance can guard against suits involving:
- Employee complaints and disputes
- Copyright and trademark issues
- Personal injury claims
- Breaches of contract
- Criminal allegations
Combining this coverage with other business protection services expands the scope of standard insurance without requiring a big investment.
Find Help with Business Risk Management Today
When considering the business risk factors affecting your company, it helps to have guidance from an expert. Experienced business protection advisors can walk you through the steps involved in creating a risk management policy and clarify the right types of insurance, legal and financial services for your particular business or industry.
National Business Capital and Services offers all the legal protection services you need, including help with the incorporation process if you’re looking to turn your business into a corporation, LLC or non-profit organization.
Call (888) 488-GROW to speak with an Expert Services Advisor, and tell them all the ways you’d like to grow, improve and protect your business, and they’ll get to work finding you the best options in the marketplace that suit your needs.
No matter what the size of your business, it’s important to consider adding one or more key protection services to secure your company and give yourself peace of mind. With help from a partner like National, you can breathe easier knowing your business is shielded from common financial and legal difficulties.