Skip to main content
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
Hiscox Insurance
Menu Toggle
  • Home
  • Small Business Insurance Toggle Menu Toggle Menu
  • Why Hiscox Toggle Menu Toggle Menu
  • Resources Toggle Menu Toggle Menu
  • Policy Management Toggle Menu Toggle Menu
  • Claims Center
  • Contact Us
  • Español
  • Brokers & Agents
  • About
  • Get a Quote Get a Quote
  • About
  • Get a Quote Get a Quote
  • Blog Home
    Start Your Business
    Grow Your Business
    Protect Your Business
    Celebrate Courage
    Search

    Twenty-Four Seven

    Sign up to get the latest small business news delivered right to your inbox.
    Close Close
    Protect Your Business
    Image of men's hands on desk with papers, pencil, and laptop

    4 Risks to protect your small business from

    Insurance 101 | Claims
    By: Hiscox Blog

    Share Image

    Embed Image

    Copy

    Share Article:

    It takes courage to be a small business owner. You’ve had your lightbulb moment, maybe secured some financing, and are getting your endeavor off the ground. Kudos. That’s already taken a lot of guts. Now is the time to make sure you’re protecting what you’ve built from risks you can anticipate and those you don’t see coming.

    Every small business faces risks associated with changing economic conditions, competition, or other market forces that are best guarded against with education, solid financial management, and contingency plans.

    Then there are some risks specific to running your small business that you can prepare for with risk management strategies, such as business insurance. This protection can help you take on the right risks that contribute to the growth of your company and give you the courage to take on all of your small business dreams.

    Pro Tip: Read Business Insurance 101 for more info on protecting your business.

    Here’s a look at four common risks that small businesses face that can be covered by insurance policies.

    1. If a customer sues, you don’t have to face it alone

    Suppose you’ve started a web design company, and you create a new website for a company. The day it’s launched, a bug in the design causes the site to crash, and it stays down for three days while you diagnose and correct the problem. The client could sue you for the income they lost because their site was down.

    Not your fault, but lawsuits can be costly regardless. Plus, sometimes, despite our best intentions, mistakes happen.

    This is where professional liability insurance comes in. Also known as errors and omissions coverage, this type of insurance protects you from claims of negligence during the course of conducting business.

    If your business provides a professional service or regularly gives advice to clients, you should consider a professional liability insurance policy.

    2. If an accident happens, you can keep your business on track

    If you’re an IT consultant, you may work with other companies’ expensive computer hardware that contains business-sensitive data. But, oops, you just spilled your iced coffee into a key computer component, causing extensive damage.

    If you have general liability insurance, you could be covered from incidents like this one. General liability insurance protects against a third party’s claims of property damage or bodily injury in case of an accident, as well as claims of personal injury such as libel.

    You should especially consider this type of insurance if you:

    • interact with clients face to face at their offices or yours, where someone could get hurt in an accident
    • have access to a customer’s property, which could get damaged by one of your employees
    • market your company with advertising, where you could face copyright infringement risk.

    3. If your own stuff gets damaged, you’ve got backup

    Sometimes general liability isn’t enough, like if you spilled that iced coffee on your own computer.

    The insurance world can be confusing at times, and many small business owners might not know that general liability only protects against third party claims, not claims involving your own business.

    That’s where a business owners policy (BOP) comes in. This type of insurance combines general liability coverage with property insurance that protects your furniture, equipment, and tools that you need to do your job. 

    4. If you get hacked, you can recover

    The information age in which we live has opened up many exciting business opportunities and made our lives more convenient. But the interconnected nature of commerce can also leave your business open to internet-based data theft.

    If you’re accepting credit cards or other digital payment types and storing confidential customer information, you need cyber security insurance as part of a comprehensive plan for preventing, detecting, and mitigating digital risks.

    A cyber insurance policy covers privacy, data, and network exposures and offers both immediate and longer-term support such as:

    • data breach response and data recovery
    • coverage for losses from business interruption

    While you might not be able to foresee every risk scenario, having the right type of business insurance can give you the peace of mind to focus on what’s really important to you – growing your business and helping your customers. Not having to worry about a worst-case-scenario causing you to have to close up shop can give you the courage to continue building on your success.

    Protect Your Business

    Protect the business you’ve worked so hard to build. Get a fast, free quote and your business could be covered today.

    Get a Quote
    Get a Quote
    Subscribe to our newsletter

    Related Articles

    4 Min Read
    Business continuity planning is essential for small businesses, learn the steps to create your plan

    Plan for the unexpected. How to make business continuity plans

    Management | Start up

    Don’t let your business become victim to obstacles beyond your control; learn how to create a business continuity plan – it’s essential to your business’ survival.

    Read More

    4 Min Read
    the impact the war in Ukraine has on small businesses

    The war in Ukraine – is there a risk to your business?

    Cyber | Management

    The war in Ukraine could pose a cyber risk to your small business that you haven’t considered. Read how you could be affected. 

    Read More

     
    Learn more about cloud storage and get tips on choosing the right provider

    Best cloud storage for small businesses

    Technology | Tools & Templates

    Most everything is up in the cloud these days, and moving your business data to the cloud is a logical and practical move. Learn more about cloud storage and get tips on choosing the right provider.

    Read More


    We’re here to help.
    We provide tailored insurance for the specific risks you face, so you can take the right risks to grow your business.
    Get a Quote
    Get a Quote

    Footer menu 1

    • What We Cover
      • Business Insurance
      • General Liability Insurance
      • Professional Liability Insurance
      • Errors and Omissions
      • Cyber Security Insurance
      • Workers Compensation
      • Other Coverage
    • Who We Cover
      • Small Business Owners
      • LLC
      • Sole Proprietors
      • Entrepreneurs
      • Side Hustle
      • Contractors
      • Home Businesses
    • For Our Customers
      • Refer a Friend Program
      • Covid-19 Response
      • Claims Center
    • For Business Owners
      • Save with our Partners
    • About Hiscox
      • About Us
      • Careers
      • Contact Us
      • Hiscox Corporate
      • Investors
      • Foundation
      • Newsroom
      • We Stand Together
      • Affiliate Partner Program

    Footer menu 2

    • Accessibility
    • Site Map
    • Privacy Policy
    • Terms of Use
    • Legal Notices
    • Español

    Feefo Reviews: Hiscox rated 4.8/5 with 2,032 reviews between January 31, 2020 - January 21, 2021

    © 2022 Hiscox Inc. All rights reserved. Underwritten by Hiscox Insurance Company Inc., 30 N. LaSalle St., Suite 1760, Chicago, IL 60602. As of December 31, 2021, HICI had admitted assets of $1,250,758,353 and policyholders surplus of $332,792,666. Total liabilities were $917,965,687 (inclusive of $433,752,764 of loss reserves) and paid-up capital stock was $4,242,000.

    icon-facebook
    icon-youtube
    icon-twitter
    icon-linkedin