4 Tips for Preventing Small Business Insurance Claims

 

Small business owners are responsible for many things geared toward making their business a success and, as a small business owner, you're responsible not only for increased sales and cost reductions but also for managing risk.  A big part of managing risk is to be covered by a comprehensive small business insurance policy that protects you from suffering a variety of losses, one of which may be liability lawsuits.

Your Greensboro small business insurance policy is absolutely something you want to have but also something you never want to have to use.  Without proper protection, however, a serious claim against your business could essentially close down your complete operation.  But smaller claims such as those for a slip and small injury, which is one of the most common, or theft of merchandise or equipment, are not only troublesome but can cost you money in the form of higher premiums.

Tips for Preventing Small Business Insurance Claims

Here are some things you can use to help prevent small business insurance claims:

1. Burglary and theft are the most frequent causes of property loss claims submitted by small businesses, accounting for about 20% of all claims filed.  The best way to mitigate these losses is to introduce some simple security measures such as sturdy locks for all doors and windows and also for any sensitive areas.  High-quality electronic surveillance equipment can be used to guard your business both during and after business hours.  If your employees make bank deposits, it's a good idea to incorporate the buddy system.  Employee dishonesty can be countered by providing a good working environment and fostering high employee morale.
2. Slip-and-Fall Injuries are some of the most common injuries for which claims are made against small businesses.  The more foot traffic your business has, the more vulnerable you are to facing this liability claim.  Good housekeeping is a primary factor in avoiding these injuries.  Inspect for and repair any loose steps or handrails.  Slippery floors should be well marked and any clutter should be avoided.
3. Other injuries caused by unstable product displays or heavy goods falling from high shelves may be alleviated by regular inspections to prevent these problems.
4. Businesses that use vehicles as part of doing business can be held liable if one of these vehicles becomes the cause of an injury or property damage.  Only qualified persons should operate these vehicles and regular driver training should be provided.  

Small Business Insurance: Top Risks Business Owners Face

Optimism is the fundamental foundation of small businesses just getting started. The entrepreneurial spirit is alive and well in most new business owners, who must think of themselves as optimists if they're to stand a chance at success, yet too much optimism can prove fatal. While a business plan built around the best-case scenario may be tempting to create, any business success must be tempered with the real-world risks that face every small business.

If not properly protected by quality small business insurance, even the most successful small business operation can come crashing down. The results of an uncovered liability or wrongful termination lawsuit can be disastrous to your business. This is why one of the top items on your to-do list when opening a small business should be obtaining the protection that comes with quality small business insurance. Following is a list of some of the top risks a small business owner faces.

1. Property loss is high on the list of risks small business owners face. Typically, your business property represents your largest asset and threats to your property are numerous. Whether it's theft, vandalism, natural disaster or fire, your property is at risk and should be protected against loss. This includes coverage of the real property, on your equipment, fixtures and on stock materials.
2. Libel claims against your small business for wrongdoing or negligence can end up costing millions. Damages that result from physical injury, personal injury such as libel or slander, property damage or advertising injury are all risks that can be covered by obtaining an adequate amount of commercial general liability insurance. This protects you from both real and fraudulent claims as well as the costs incurred in settling these claims.
3. Any small business with employees runs the risk of claims by employees as a result of health and safety obligations. You need insurance protection in case any employee becomes injured or sick as a result of on-the-job accidents. One serious claim against an unprotected small business could put that business out of business.
4. There are other risks small business owners face against which insurance protection is needed. These include environmental exposures, improper employment practices, key person loss, business interruption, management of electronic data and more. Most small business owners aren't aware of all the finer details and the need for so many types of business insurance. Consulting a business insurance professional is the best advice.