Unexpected Losses and Damages in Your Business


Business owners know that they sometimes have to take risks in order to grow their company. But there are some risks on which you should never gamble.

What if your employees get sick? What if the economy tanks and your customers suddenly stop buying? What if a natural disaster hits your area, disrupting commerce for weeks or months? These things happen all the time, but most business owners don’t plan for them — until it’s too late. It is important that business owners prepare themselves for these losses by purchasing insurance against them. Make sure you protect yourself before it’s too late!

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Common unexpected losses and damages

1. Sick employees.

When an employee gets sick, it can affect the productivity of every other worker at your company. Without one part-time cashier to man the register, products will go unsold. Without a single dishwasher or cook on duty, plates may pile up faster than they can be washed and served to customers. Not only is this a problem for you as the owner, but as your employees lose wages and become sicker, they may be susceptible to lawsuits. Unfortunately, most small business owners don’t think about getting health insurance until it’s too late.

2. The economy tanks.

Many business owners depend on customers walking through their front doors and making purchases. If the economy tanks and people stop buying, you’re in trouble. Maybe your business is fine for a while; maybe it isn’t. No matter what happens, if your business loses too many customers or has to close its doors because of the economy, you’ll lose money. That’s why so many small businesses fail — owners simply don’t plan for a slow economy. The best way to protect against this is to get business interruption insurance.

3. Natural disasters.

In many states, you can still receive federal business loans even if your area has been declared a disaster zone by the president of the United States. But thousands of business owners never recover from a natural disaster because they didn’t have the right insurance. Floods, hurricanes, and tornadoes — these are events that can destroy a business if you don’t prepare for them. There are recommendations by TCFD about disclosing climate-related information to help other businesses adapt to this kind of damage. You never know when disaster will strike, so make sure your business is protected before it’s too late!

4. Theft.

Most business owners consider theft to be one of the greatest losses their company can face. Whether it’s an employee who skims cash from the register or a teenager who decides to break into your restaurant and steal your flat-screen TV, theft happens too frequently. Make sure that you have good business property insurance in case this happens so it doesn’t end up costing you more than the item stolen!

5. Fires.

Fires happen way too often and they’re not always the result of carelessness. It could be a defective appliance nearby, or maybe even an electrical issue with faulty wiring in your wall. No matter what the cause, it’s essential that you have business fire insurance so that you can continue to operate if such a disaster strikes!

Ways to prepare for all of these unexpected losses and damages

1. Make sure your business is insured.

You never know when one of these disasters will strike, so it’s important to have insurance before you need it. Make sure your company is covered in situations where you’re unable to work — like if an employee gets sick or the economy tanks — and that you’re compensated for the wages you lose.

2. Hire a good accountant.

An accountant can help you make sure your company is insured and that you’re prepared for the worst. Meeting with an accountant on a regular basis may ensure that you never have to worry about going through tough times alone. Don’t risk everything that your business has worked so hard for — get insurance and hire a good accountant to help you plan.

3. Spend on security.

Sometimes, people are just down on their luck. That’s why it’s so important to have security cameras in your business or an alarm system that alerts authorities when something is wrong. Even if it takes a few extra dollars out of your bank account, spending money on security can prevent much bigger problems in the future.

Unexpected losses and damages — they’re not fun, but they do happen. That’s why you should prepare your business before disaster strikes. Whether it’s purchasing insurance or hiring an accountant, make sure your business is as prepared as possible for these unfortunate events. It may mean the difference between success and failure!

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