Business Insurance Risks

Owning a small business comes with a very unique set of risks. While there are plenty of insurance policies that are available to keep your business safe, you may be thinking of skipping out on coverage to help save money. However, skipping out on the necessary business insurance coverage can leave your business vulnerable to many different liability issues that could lead to the downfall of your company.

Being underinsured at your business means that you do not have enough coverage or have the wrong coverage that will not protect your company from key areas of risk. More than 70 percent of all small businesses in the United States do not have the proper insurance protection, which leaves then dangerously exposed to many issues.

Some of the most common risks that small business face and that you should protect your business from include:

• Theft and burglary
• Water and freezing damage
• Hail and wind damage
• Fire
• Customer slip and fall

While those are the most common, they are not necessarily the most expensive. The most costly insurance claims that are made by small businesses include:

• Reputational harm, with an average cost of $50,000
• Vehicle accident, with an average cost of $45,000
• Fire, with an average cost of $35,000
• Product liability, with an average cost of $35,000
• Customer injury or damage, with an average cost of $30,000

It is important to keep in mind that the above claims are simply the average, and your business could face much more expensive claims.

For all of your commercial insurance needs, contact the insurance professionals at Michelle Lim Insurance Services in Alhambra, California. As an independent insurance agency, we will work with you to make sure that you have the protection that you deserve, all at the right price to fit your company budget.