Business owners are aware that there are risks involved in almost everything. From vendors to insurance, everything has the ‘at your own risk’ label attached to it. But part of operating a successful business is not only tackling these risks one-on-one, it’s eliminating their chances of affecting your organisation!
While you might have a solid business plan to manage risks and consequences, without insurance policies, it’s useless. This is because not only will your clients have a better plan to counter-attack you, you will exhaust your funds fighting them!
Just as a solider needs armour, businesses need insurance. Your business plan may be your weapon but without defence, you’re bound to get injured.
Insurance acts as a shield for businesses. In case you face the consequences of negligence or defamation, you risk having your enterprise shut down permanently.
With these 5 tips, your business’s protection is guaranteed!
- Reduce Product Liability: The product a business designs and sells is the identity of its brand.
Cheap products with defected materials can not only damage a business’s brand image; it can result in consumers showing you the way to court. If you sell cigarettes, add a health warning. If you sell chocolate, add a nuts allergy warning. Finally, get Product Liability Insurance. This will save you from the stress of legal costs.
- Minimize Risk of Customer Injury: If you own a restaurant, chances are, customers will walk in as soon as your doors open.
This is when cleaning takes place and customers can badly injure themselves. Unfortunately, it will be your responsibility because it’s your property. Place a caution sign and purchase General Liability Insurance, which helps protect against bodily harm and injuries.
- Reduces Chances of Defamation: Social media networks can make or break the image of a business! Therefore, it’s highly important that you reduce chances of bad customer reviews. Don’t opt for cheap materials when making products. In case an employee bad mouths a client or customer, you can get sued. Therefore, Professional Liability Insurance is what you need to protect your business from defamation.
- Invest in Equipment: In case of fire, invest in fire extinguishers. These will minimise damage and help prevent loss of lives and capital. Furthermore, invest in additional computers and accessories. In case there is an important deadline to meet and systems stop working, you will have backup to prevent unhappy clients.
- Provide Clear Instructions: Last but not the least, make sure your products have clear warnings and instructions. It is hard for some customers to understand instructions. Therefore, make sure they are simple, easy-to-read and get the message across.