Business owners today face a multitude of risks that they did not have to worry about before.
Years ago, a business only needed basic hazard insurance, which provides coverage for damage to property caused by a man-made or natural disaster including:
- Fire
- Flood
- Wind damage
- Earthquakes
But those days are gone. The risks that business owners face today are much greater.
Risk professionals, business owners and even stakeholders need to be aware of an ever-expanding list of enterprise-wide challenges that fall into 3 general risk categories:
- Financial Risk – items that immediately impact the company’s bottom line
- Operational Risk – uncertainties surrounding procedures, systems, and policies
- Strategic Risk – impediments that hamper the company’s long-range goals and managerial decisions
Understanding financial risk is vitally important to a business. In addition, risk transfer methods can result in greater efficiency. The insurance industry is continually evolving to meet these demands, with policies and coverages designed to cover property protections for both tangible and intangible risks alike.
Additionally, commercial package policies aid in bundling coverages together. And, just to name a few, there are specific policies that can address liability and specific coverages like:
- Employment Practice Liability (EPLI)
- Workers’ Compensation
- Errors & Omissions
- Directors & Officers Liability
No discussion of risk in today’s business environment would be complete without addressing the exponential growth of technology, including collecting, storing, and using data. Cyber insurance protection has quickly become a must have; not only to protect the company’s internal systems and information, but that of its distribution partners and customers as well.
To learn more about business insurance and how RMC can help you protect against risk, contact our office at 239-298-8210 or rmc@rmcgp.com.
