The Bear Market is Not Your Biggest Financial Risk

The past five years have been some of the most economically troubling in recent memory. Large banking institutions have come under scrutiny, entire corporations have gone bankrupt and the financial markets have taken a battering. Indeed, this news has made headlines throughout the world; the word “crisis” garnering an unprecedented amount of attention. While historians may look back upon these times and cite the global financial meltdown as perhaps the most newsworthy story, the truth of the matter is that most businesses face a much more acute risk other than the overall financial outlook. A properly managed small to medium-sized business needs to consider much more than the overt threat of an economic downturn but rather needs to be prepared for other unforeseen circumstances which can gravely threaten its day-to-day operations Without proper preparation, the organisation could suffer grave consequences.

General Liability Insurance

Thus, we may begin to understand the necessity that has arisen for small business insurance. These policies can go a long way in protecting the needs of a budding enterprise and are essential for peace of mind and stability. However, not all policies are alike and a business frequently needs to carefully consider which policy suits the best. For instance, general liability insurance is a means by which a company can protect itself and its employees against damages is its services, products or operations cause undue harm to a third party. While this type may be the most frequently seen, other packages may also prove relevant depending on the needs of the organisation.

Worker’s Compensation

In these times of rising medical costs, an adequate worker’s compensation package is essential to providing lost wages and any medical benefits to an employee that may be injured while performing his or her duties on the job. Although this is obviously important from an individual standpoint, small business owners need to remember that by enacting this policy, an employee waives his rights to sue the company, therefore mitigating the risk of litigation costs in the unfortunate event of an accident.

Director’s and Officer’s Insurance

This lesser-known policy covers the upper echelon of a company should their actions prove to be financially or operationally negative to the company’s performance. This can be important if tough decisions need to be made which carry a risk of sending the business down a difficult past. As many of these choices carry with them the chance that a company’s profits may fall or that the workforce may have to be downsized, a director or other main stakeholder cab be protected against any claims of loss or damages that may be the result of a lawsuit.

Data Breach Insurance

As many businesses are increasingly storing sensitive information electronically, it is important to be insured against any loss, corruption or theft of this data. These policies cover against such occurrences and will give the business protection against such an incident.

It should be noted that general liability is frequently not enough coverage for the average business and this policy should be put in place with other tailored packages, a few of which were previously mentioned. The specific insurance needs of a company need to be carefully weighed in relation to its scope of operations, future expansion and employee concerns. By choosing the correct policies a small to medium-sized business can rest assured that the needs of its employees and its customers are being catered to. Doing a thorough search online for main business insurance providers such as AXA Business is definitely a must-do. While the bear market may have made the headlines, the need for a comprehensive small business insurance plan has never been greater.