One of the keys to running a successful business is understanding your risks. Business insurance is a great safety net; proactively managing your risk is equally important.
The risks your business is exposed to depends on the industry you’re in and the scope of your operation, but here are some common threats all business owners should be aware of.
1. Natural disasters and catastrophes
Australia is no stranger to devastating natural disasters such as fires, storms and floods The financial and personal wellbeing of you and your people could depend on how well prepared you are for these events. Take the time to create an emergency management and recovery plan.
Read more about how to prepare for a catastrophe
2. Liability claims
Protecting your business against potential lawsuits is critical. Here are three examples of liability to consider:
- Public liability – if a third party is injured or their property is damaged due to your negligence. Such as a customer slipping on a wet floor because you failed to post a warning sign
- Product liability – if you sell or distribute goods you could be held liable if they cause injury, death or property damage
- Professional liability – if you’re a professional services provider you could face claims of negligence, error or omission when you’ve provided a service or advice.
Establishing which risks are relevant to your business and implementing strategies to manage them is a smart move.
3. On-site security
Whatever the size of your business, protecting your people and property should be high on your list of priorities. Your options include alarm systems, CCTV cameras and nightly patrols by private security guards.
4. Employee health
Whether your people are sitting behind a desk for long periods of time or on a construction site, they’re at risk of injury.
All employees must be covered by Workers Compensation insurance, but it’s wise to be proactive about lowering their risk. For example:
- Encourage desk-bound workers to maintain healthy posture to avoid injury and strain.
- Ensure machine operators are fully trained for their roles.
- Check your workplace health and safety (WHS) procedures are up to scratch – if they’re not, perhaps consider WHS training.