Anyone who runs a small business, especially these days, knows that they have many risks associated with it. We live in a litigious society and being protected, even at the basic level, is smart business. 

Legal disputes can be an inevitable part of running a business. In 2019, 43% of small business owners report having been threatened with or involved in a lawsuit. For larger businesses, it’s even higher. Fortune 200 companies’ average litigation costs are over $100 million per year. ***

If you have a business, not being protected from liability may cost you your business and reputation. So, here are some typical risks that business insurance would cover:

1. Business Property: Just like your homeowner’s insurance, business insurance covers damage to the property you use exclusively for business. Wind, fire, lightning, plumbing leaks, and other events damage your business's physical property. Even if your storefront or office isn’t a total loss, you may not be able to run your business from that location while repairs are happening. 

2. Data breaches: Most businesses have all of their internal records online. This includes invoicing, credit card numbers, customer lists, bank accounts, and more. Some entire businesses exist in the cloud. Because of this, there has been a huge uptick in cybersecurity issues. If a business accepts credit cards, they need to reevaluate and standardize its security practices to protect against fraudulent activity.

3. Workers Comp: Employees are at the largest risk of all. That risk may be doing heavy labor, driving a company vehicle, working in a retail business, or working with the public. Lawsuits are filed daily by employees against their employers. Additionally, unemployment insurance costs can be quite expensive.

4. Professional services errors: Accountants, web designers, architects, and others have clients who will file lawsuits if their services don’t meet expectations. Most self-employed individuals rarely think that they will be sued.

5. Manufacturer or product failures: If your company uses foreign products, you are at risk of receiving or selling defective ones in the market. If you sell software or electronic devices that may be hacked or infected by viruses.

6. Building projects: Many building projects are commissioned by businesses, colleges, and universities. Of course, construction has a myriad of risks. Business owners need to be protected from liability and other building issues. 

The risks in 2022 are huge for anyone who owns a business. Liability costs can destroy the reputation of a small business and even bankrupt it. Don’t go it alone. Invest in business liability insurance and be protected now. 

Lindquist Insurance has licensed and experienced business insurance consultants who can help you get the best coverage based on your industry. Call (301) 694-0008 to speak to our experienced and licensed insurance agents for a consultation and quote. We will answer all your questions. We serve the Annapolis, MD, and Frederick, MD areas. 

*** For more information about small business litigation, visit The Balance SMB website. The body content of your post goes here.