3 Tips for Protecting Your Small Business From Risk
At Snellings, we believe that the survival of your business requires managing risk. In today’s environment, risks are becoming more and more complex. For a small business owner, you must take the proper steps to reduce and prevent risk to avoid legal issues and cyber-attacks. To ensure proper risk management, here are 3 tips:
1. Have a Risk Management Plan in Place
Do you have a plan in place in case risk occurs? The first step to take is determining the risks that your business could potentially experience. There are two main types of business risk:
- Internal risk: Internal risk are risks that arise within the internal framework of your organization. A few examples of internal risks include damage of property, equipment downtime, or dishonesty of employees.
- External risk: External risks are risks that arise outside of your organization. A few examples of economic downturn, legal changes, and environmental damages like natural disasters.
After identifying your top business risks, it’s time to start preparing a plan of defense and action. A few ways that your business can prepare for risk are:
- Training your employees properly
- Establishing a thorough employee handbook
- Creating a natural disaster plan
- Protecting your internal data
- Purchasing the right insurance coverage
Below we will take a deeper dive into how your business can approach protecting information and purchasing the right insurance to mitigate risks.
2. Protect Your Information
One of the largest ways that companies experience risk is through data breaches and cybersecurity attacks. So one of the best things you can do as a business owner is making sure your information is backed up and protected with antivirus software. This includes hardware, software, and any information based on the cloud. For additional tips on how to protect your data, click here.
3. Purchase Professional Liability Insurance
Professional liability insurance is one of the greatest defenses your business can take to mitigating risk. People are bound to make mistakes internally. Professional liability insurance will help cover:
- Work mistakes
- Undelivered services
- Negligent services
For more information on the benefits of professional liability insurance, click here.
To conclude, risk is not always avoidable but can mitigate it with the right policies and precautions. Learn more about the assets we protect at Snellings.