Business insurance helps protect you from many types of losses. Common losses might include fire, flood, theft, and so many more. Understanding them and their risks can help you purchase the right amount and type of business insurance.
You can also utilize several prevention strategies to stop these losses before they happen. This can reduce your insurance costs and collateral damages to your business. The old saying “an ounce of prevention is worth a pound of cure” is incredibly true for your business.
At the Saxton Law Firm, our team of experienced business insurance loss attorneys stand ready to help you. We offer personalized advice on risk mitigation and business insurance issues. We also handle insurance litigation services if your insurer denies coverage.
Common Causes of Business Insurance Losses
Business insurance losses can come from nearly anything. As a business owner, you have probably seen how true this can be. There are countless risks, but that is why you carry business insurance—or you should if you do not already.
Typical causes of business insurance losses include:
- Fire: A fire is one of the most devastating losses for your business. It can destroy your inventory, premises, and even cause major personal injuries.
- Product Liability: If your company designs or manufactures products, product liability can be a major expense. Lawsuits and reputational damage stemming from this issue can be quite costly.
- Property Damage: Damage to your premises, plants, or other structures can cost your business a great deal of money.
- Floods and Water Damage: A large flood, burst pipe, or other water damage are majorly destructive events. They can require repair or replacement of your property.
- Hacking and Cyberattacks: Cyberattacks and hacking are more and more common as the years pass. They can lead to data loss, fines, and much more.
- Auto Accidents: Commercial and business-owned vehicles can cause accidents or be damaged by others.
- Employee Injuries: Workers’ compensation should help with most employee injury costs, but your business insurance may also need to cover certain aspects of these costs as well.
These and many other incidents can lead to costly insurance losses for your business. They may also lead to business interruption and lost income as a result.
Strategies to Prevent Business Insurance Losses
Pre-planning is the most important part of preventing business insurance losses. Consider each of the causes above and how you can work to prevent them from happening in the first place. Every business is unique, and the strategy that will work best for you will differ from another company.
Here are a few overarching strategies that can help you avoid business insurance loss for the future:
- Have Safety Plans in Place: Make sure employees and other workers know what to do in an emergency. Practice escape paths to save lives and injury costs down the road.
- Inspect Your Premises: Self-inspect or hire an inspector to look for dangers on your business premises, factories, and more. Identifying issues early can help repair problems or prevent injuries.
- Provide Safety Equipment and Training: Give your employees the safety equipment they need to prevent injuries and comply with applicable laws. This can save on insurance claims and regulatory fines.
- Install Security Devices: Use security cameras, an alarm system, or other security devices to prevent theft and damage. Lock up your building to ensure would-be burglars are kept outside.
- Speak to a Business Insurance Attorney: A business insurance lawyer has years of experience handling these issues and can help you identify potential problems.
READ MORE: Types of Business Insurance Policies Available in Kansas: A Comprehensive Guide
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