Michigan Business Insurance: How to Identify and Manage Risks
In last months post, we talked about why your company needs business insurance coverage. Even the most conscientious business owners could be hit with some type of lawsuit. While it is important to financially protect your business with Michigan Business Insurance, if you also know what your risks are, it’s easier to prepare for them and potentially reduce the chance of litigation or financial loss. Here are a few common business risks, plus how to effectively identify and manage them.
The most common type of physical risk is building risk, which can be affected by fire, flooding, an earthquake, etc. To manage this risk, it’s important to do the following:
- Make sure all employees know the exact street address of the building to give to a 911 operator in case of emergency.
- Know the location of all exits and inform your employees as well.
- Install fire alarms and smoke detectors, as well as sprinkler systems if possible.
- Inform all employees that in the event of an emergency, their personal safety takes priority over everything else.
Other physical risks can include hazardous material spills or employee accidents. A plan should be created and implemented to handle the immediate effects of these risks.
Unfortunately, crimes such as embezzlement, theft and fraud occur frequently in workplaces. A thorough background check before hiring personnel can uncover previous offenses in the applicant’s past. While you might not be able to decline employment to this individual, placement of the new hire in a critical position in which money is used may not be the right role for them.
Technology risks range from equipment breakdown to Cyber Liability cases. Offline and online data back-up systems should be used to protect critical documents, and strict policies for internet use should be put in place for your employees.
Assessing your business’ risks requires prioritization. For example, risks may be very likely to occur, have some chance of occurrence, a small chance of occurrence, or very little chance of occurrence. The key way to manage risks and protect your business financially is with the right Business Insurance NJ policy.
Depending on your circumstances and finances, you might also want to consider other types of insurance, such as Errors & Omissions Insurance, Employment Practices Liability (EPL), and more. At Capital Insurance Group, we understand the risks and exposures your business faces every day. Our approach is why so many of our clients remain with us year after year. Please contact us today at 888 296 0418 for more information.