THURSDAY, AUGUST 24, 2023
Starting and running a small business can be an exciting venture filled with opportunities, but it’s also important to be aware of the potential risks that can impact its success. Small businesses face a unique set of challenges that can significantly impact their operations, growth and profitability.
What Are the Top Risks for Small Businesses?
The following are the most common risks small businesses experience: 
- Physical risks—Physical hazards, such as a fire, can impact any business with a building, inventory or equipment. It is essential to have an emergency evacuation plan, fire alarms, smoke detectors and other safety precautions in place.
- Location risks—Many businesses deal with weather-related risks based on location. This could include wildfires, hurricanes, earthquakes, tornados or other natural disasters.
- Human risks—Employees, customers and clients can also be seen as risks to a business due to the possibility of on-site injuries, discrimination, harassment, physical violence and theft. People are often unpredictable, which can put your business at risk for various types of lawsuits.
- Strategic risks—Businesses may face risks based on their decision-making and overall planning. For example, a business may decide to acquire another company; however, this new asset may come with unforeseen risks, such as reputational or financial issues.
- Cybersecurity risks—Businesses that store data or use the internet for business operations are always at risk of data breaches and cyberattacks. Small businesses may be more vulnerable to these attacks because they lack the proper resources to protect themselves.
- Reputational risks—Businesses may have to deal with customers, clients or employees who threaten their name for legitimate reasons or as a form of retaliation.
- Compliance and legal risks—Businesses may face risks from failing to adhere to federal, state or industry regulations.
What Types of Insurance Do Small Businesses Need?
An insurer may recommend the following business insurance coverage options to manage these risks:
- General liability insurance
- Business interruption insurance
- Workers’ compensation insurance
- Cyber liability insurance
- Commercial auto insurance
- Professional liability insurance
- Business interruption insurance
Business Insurance in Swea City and Estherville, IA
A robust business insurance portfolio is the best way to protect your organization from costly incidents. Contact Cornerstone Insurance Services to discuss risk management solutions. We can help determine which policies and premiums are best for your operations.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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NOTICE: This blog and website are made available by the publisher for educational and informational purposes only.
It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
in your state. By using this blog site you understand that there is no broker client relationship between
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