The Importance of Business Insurance and the Types of Business Insurance that Every Business Needs

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Running a business and being your own boss is a dream that most people nurture. After all, is there is anything better than being answerable to no one, and working at your own pace? Owning a business provides you with full control of various aspects of your life. You get to decide when to work, whom to work with and how to work. You do not have to be answerable to anyone, and that is perhaps the best thing ever. However, as appealing as the idea of running your own business sounds, it also comes with a number of challenges. Being an entrepreneur is not a cakewalk.

You have a world of responsibilities to shoulder and take care of the smallest details. One slight error of judgement or carelessness on your part can lay waste to the little empire you built for yourself and leave you with nothing. You not only have to take care of your employees but also feel responsible if anything happens to even one of them. Plus, there are several other aspects to factor in too, while running your business. From accounts to shipping, shouldering the weight of a business is not an easy task. That is why, if you have ever nurtured the dream of becoming an entrepreneur, you need to be careful about and consider several things.

Having said that, in this article, we shall shed light upon one of the most important aspects of running a business. We shall talk at length about the necessity of business insurance and the types of business insurance plans you need to know. Most entrepreneurs pay very little attention to this crucial part of their business. They fail to comprehend the complete scope of business insurance policies and the role they have to play in securing their business, and thus, end up leaving a lot of money on the table. That said, let us now proceed to the main part of this discussion and help ourselves become better and responsible entrepreneurs.

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Why Does Your Business Need Insurance?

There are a number of insurance policies that people come across in their lifetime. From home insurance and car insurance to life and health insurance, the types of insurance policies are very many. We do not waste a single minute before purchasing the right life insurance plan or car insurance for that matter. We want to protect our loved ones long after we are gone, and also protect the car that we have invested in. Then why would you think that your business is any different?

You have spent a lot of time, invested yourself emotionally and financially and put in a ginormous amount of effort in building your business. Therefore, leaving it at the risk of various potential threats is inane. This is where business insurance policies step into the picture. Let us now look at a few other reasons why you must purchase business insurance without fail.

You Could Be Sued

The law across most of the countries makes it mandatory to purchase business insurance policies. Therefore, if you do not invest in the same, you could be sued. Plus, in an event where a lawsuit has been filed against you, or there is an instance of a liability claim, without the right business insurance policy at your disposal, your business could shut down. It only takes one employee or an unhappy client to sue you. And even if you happen to win the suit, the cost of legal defense could leave you in tatters and cause your business to fold.

Business Insurance Keeps Your Business Afloat

The second and perhaps the most important reason to purchase business insurance is that the right policies keep your business afloat. No one can predict natural disasters. In the event of an earthquake or a fire, your business might suffer irreparable losses and damages. The right business insurance policy, about which we shall discuss in the next section, shall help you pull through the tough times and make the difficult phase relatively easier. Without any business insurance policy, your business might never be able to recover and fall flat on its face.

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Business Insurance Protects Your Employees

Your employees are an irreplaceable resource. You might have cutting-edge technology at your disposal and AI that makes your job easy and hassle-free. But you cannot manage without human labor. You need your employees to run these machines and technological innovations that you are ever so thankful for. Without your employees, your business shall have a cataclysmic downfall. Therefore, it is extremely important that you have business insurance that protects the interest of your employees as well. From workers’ compensation to disability coverage, your business insurance shall help your employees make a living despite the odds and stay safe at all times.

The Policies Cover Acts of God

One final reason why it is imperative for businesses to purchase business insurance is that these policies cover Acts of God. Acts of God are events that are not human-made disasters. Therefore, if your business experiences losses due to earthquakes, floods or tornado, the right policies shall cover these damages. There are two types of insurance policies that protect your business against such losses- all-risk insurance and peril-specific insurance. Without these insurance policies, you might end up losing everything, and it might then be extremely challenging for you to rebuild your business.

Types of Business Insurance You Must Know of

Now that we have discussed at length all the reasons you need to invest in business insurance, it is now time to look at the policies that you absolutely need to have. As we already discussed at the beginning, running a business might seem appealing, but it has several inherent risks. As an entrepreneur, you will not always have the best time in your business. There will be highs, lows and potential threats that you need to navigate. However, if you invest in the right business insurance policies, you might have to suffer less when disaster strikes. Therefore, without any further ado, let make our way to the next section of the article and enlighten ourselves.

Professional Liability Insurance

The first type of business insurance that you need to learn about is the Professional Liability Insurance. This policy is also known as the Errors and Omissions Insurance and for good enough reasons. This insurance policy covers your business against professional negligence due to errors on your part or failure to deliver on time. The best thing about this policy is that businesses can customize the policy based on what rubrics they function on.

Property Insurance

Just as employees are one of the most vital resources of a business, equipment, workspace, and other properties are equally important. Can you imagine your business to function without the right computers or the right tools? Plus, some of these pieces of equipment like desktops, electrical parts, crucial tools like permanent lifting magnets (the best of which you shall find at https://magnetized.com/products/model-1037jr-permanent-lifting-magnet-1000-lb-capacity) come at exorbitant rates. You cannot always manage to buy them all over again once they are damaged or lost due to a calamity like a flood or fire.

This is where your business needs Property Insurance. This insurance covers pieces of equipment like the ones we discussed a while ago, signage, inventory and furniture sets in the event of a fire, torrential rains or even theft. However, there is an aspect that you need to be careful about while purchasing this insurance. A standard version of this insurance might not cover earthquakes and floods. You have to talk to your insurance agent to clarify this part and figure out what extra policy you need for such instances.

Workers’ Compensation Insurance

One of the most important insurance policies that we need to talk about is the Workers’ Compensation Insurance. You must not wait for your business to expand and hire more employees in order to get this policy. Once you have hired your first employee, you need to purchase this policy.

The Workers’ Compensation Insurance covers the instances where a worker is injured or passes away as a result of his responsibilities in your business. In such a situation, the policy shall cover the workers’ medical treatment, and provide the families with death benefits as well. Your workers are an integral part of your business. You cannot do without them. Therefore, it is mandatory that you purchase the Workers’ Compensation Insurance as soon as you hire your first worker.

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Product Liability Insurance

If your business is associated with manufacturing and selling products, it is imperative that you invest in Product Liability Insurance. It goes without saying that every business takes the necessary precautions to make their products as safe as possible. However, human beings make mistakes and sometimes the mistakes could lead to lawsuits being filed too.

The Product Liability Insurance comes handy at this juncture. This insurance policy helps you fight the battle easily in case you have a lawsuit filed against you due to a product failing to perform as was expected.

Vehicle Insurance

Another insurance that you need to buy to secure your business is Vehicle Insurance. This type of insurance comes handy, especially if your business uses vehicles for shipping and transportation. You need to insure your company vehicles fully. They cost a fortune, and you might not be able to invest in them again once they run into some kind of an accident.

If your business uses its own vehicle, your personal insurance will cover these situations of accidents. However, if you lease out vehicles, you will need to get a policy that shall insure you against third-party injuries.

Business Interruption Insurance

The final type of business insurance that we shall discuss in this article is the Business Interruption Insurance. In the event of any disaster or natural calamity, you might be forced to fold your business for a while. And this shall obviously cause you to lose a significant amount of money. This is where Business Interruption Insurance comes handy.

This insurance policy shall cover your expenses and prevent your business from running into a major financial debacle. Until you are ready to open your office again, this insurance policy shall cover you and protect you from further legal and financial complications.

Summing Up

There are a number of other business insurance policies that you might want to invest in if you have a business to run. However, the ones that we have mentioned in this article are the most important, and you must purchase them without fail.

However, if you are interested in finding out more about these policies, dig around some more and enlighten yourself. Your business is like your child, and therefore, you must do everything in your capacity to protect it.

A Guide for Business Owners: Protecting Your Company from Cyber Threats

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StrategyDriven Risk Management Article |Cyber Threats|A Guide for Business Owners: Protecting Your Company from Cyber ThreatsWhen you’ve spent time building and expanding your business, it can be easy to find yourself taking your foot off the gas. However, there are many areas you still have to think about, and although cybersecurity may not be at the top of your priority list, it needs to be. You may believe that your established business doesn’t face the same risk as new and small businesses, but all businesses — no matter how large or small — face the same threat when it comes to cyber-attacks.

This is why being continually aware of safety and protection methods when running your business will help you to implement them straight away.

What Kind of Cyber Threats Can Your Business Expect to Face?

Even if you employ a dedicated IT team, you may not be personally aware of the threats your business may be exposed to. Here are the most common cyber threats any business can expect.

  • Phishing. This type of attack leaves businesses extremely vulnerable and entails an individual posing as a secure organization in order to gain sensitive data from you. It can be very easy to misinterpret a phishing attempt and surrender personal data.
  • Ransomware. This is where criminals will lock down business information in order to then demand a ransom from the business to unlock it again. This is particularly problematic for businesses because being unable to access data can mean a loss of service or ability to do business until the ransom is paid.
  • Malware. The most common example of malware is a virus. Your business system may become infected or risk having its data corrupted or hacked.
  • Human error through employees. The threat of cyber-attacks increases when you take your staff into account. This is because the more employees you have, the more risk there is that each individual could make a mistake in regard to responding to phishing attempts, downloading information containing a virus, or even posing a risk to your company themselves.

How to Protect Your Business

Below are some of the ways you can incorporate a defense against these types of threats.

Increase Your Web Security as Much as Possible

Do everything you can to increase web security in any capacity. Even as an established business, this should be setting up dependable anti-virus and firewall software as priority. As well as this, be sure to look into the extra security options the services you already use may provide. For those businesses providing a network service for others, you can improve web security by using packages such as Allot’s Network Secure.

Use Strong Passwords

Always use strong passwords for anything you do within business, and be sure to change and update regularly. Try to avoid using the same password for everything within your business. Strong passwords should include a mix of lower case characters, upper case characters, numbers, and symbols.

Always Update Your Systems

It’s easy to let regular system updates slip under the radar when you’re trying to concentrate on running and expanding a business. However, regular system updates for your devices will make sure that the latest operating systems can be optimized and lower the risk of vulnerabilities.

Train Your Staff

Organize training for any new staff, or have a meeting in regard to safe web practices, so that your employees can learn to recognize potential threats, what not to download, and how to best avoid phishing scams.

How To Handle Employee Cyber Security Training

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StrategyDriven Risk Management Article | How To Handle Employee Cyber Security Training | Cyber Security, Business, Corporate

If your employees’ financial and personal information is leaked to intruders, your company may lose a lot. Most employees in various companies have fallen victim to phishing scams, causing great losses to the company. Unfortunately, cyber attackers evolve as technology changes and make their attacks even more sophisticated.

To shield your company from attacks, you need to conduct a compromise assessment and assess where it’s more vulnerable. Setting up complicated systems to protect your business is great. But if your employees don’t know how to use the systems, you’ll still be vulnerable. That’s why every organization should give their employees basic cybersecurity training. That way, attacks targeting social engineering and phishing scams will stay out of your business.

Here are some tactics for training your employees in cybersecurity:

StrategyDriven Risk Management Article | How To Handle Employee Cyber Security Training1. Avoid Blame Games

When the news of a data breach gets into the ears of the company’s executive and other people, it’s easy to attach the fault to some employee who clicked the wrong link. Though it might be true that one of your employees may have fallen for an attacker’s trap, it isn’t advisable to blame them if they don’t have the right knowledge about such attacks. In fact, it may seem that the organization is dodging is the responsibility of training employees on how to keep its data and networks secure.

Instead of blaming the employees, you should develop a plan that’ll ensure every worker has the knowledge they require to prevent attacks. You should also encourage them to ask questions and set up a department that can address their concerns.

Training isn’t only about collecting your employees in some class and lecturing them on best practices, but it could also be sharing with them new threats through SMSs and pinning informational notices on their noticeboards and offices. That way, they’ll keep interacting with the information and enhance their knowledge of cybersecurity threats.

2. Have A Budget For Employee Training

While SMSs and notices can help inform your employees about threats, you may need to conduct a training to explain how to handle some complicated threats. Cybersecurity requires constant maintenance because new attacks are created daily and monthly. Therefore, conducting monthly training can be ideal for updating them on such threats.

According to experienced IT experts, people working in your organization are assets that need continual investment. If you don’t patch them regularly, they’ll be vulnerable. That’s why when planning for your yearly budget, you should include employee training. Securing your systems and data is just as essential as marketing your products and services. So it would be best to treat employee training with seriousness as you would treat marketing.

Furthermore, you need to use many approaches to keep your staff on top of the trends. That may need a mindset shift and not viewing an employee who opened a wrong link as a source of failure even after training them but recognizing that your training and security structure needs updating.

3. Prioritize Cyber Security Awareness

Being on top of trends doesn’t prevent your company from experiencing data breaches. According to Cyber Security Hub, companies like Toyota, Walmart, and Dunkin’ Donuts have experienced attacks in the recent past despite having sophisticated security systems.

If you think that your small enterprise is safe, you need to be very worried because a 2018 cybersecurity report by Ponemon Institute revealed that about two-thirds of small businesses were attacked within a year. The only way to keep your systems secure is always to enlighten your employees about cybersecurity news. That way, they’ll understand the frequency and volume of attacks and be alert throughout the day.

Though getting your employees aware of current events is vital, you shouldn’t flood their inboxes with many emails that may be sent directly to the archives. Instead, you can attach cybersecurity information in the emails or reports news section that you can customize. Also, including messages in the links you send to your employees can help them stay updated.

4. Train Them On Password Best Practices

Having password best practices in your organization is one way of developing a robust security plan. The only problem you may face is convincing your workers to implement it.

Strong passwords should have the following qualities:

  • Be Long Enough: Lengthy passwords are difficult to crack. That’s why IT experts recommend that you set passwords with at least eight characters.
  • Have Many Character Sets: Every character set you add enhances the complexity of the password and makes it difficult to penetrate. That’s why your password should have a lower case, upper case, symbols, and numerals.
  • Have Incomplete Words: There’s no doubt that common words are easier to remember. However, they make it very simple for an attacker to crack. So it’s advisable to use incomplete words.
  • Should Be Changed Often: If you keep on using the same password on many devices, it may be compromised. To avoid that, you should change your password after a smaller window. Setting a reminder can help you know when to change your passwords.
  • Shouldn’t Be Shared Across Accounts: Using similar passwords across accounts can make it easy for an enterprising hacker to obtain your information and use it on other websites. Fortunately, there are sites where you can key in your email to know if your password has been compromised.

To ensure that all your employees have complied with password policies, you can use password managing tools. These tools will generate memorable but strong passwords for every account that your workers use. They’ll also simplify the process of sharing passwords and allow the employees to collaborate remotely.

As much as training your employees on password policies is vital, you also need to complement their knowledge with other data protection policies. Don’t assume that they know and understand them, but remind them regularly through refresher courses.

That way, they’ll always be updated on policies and rules that they need to follow. Every time you hire a new employee, you should tell them about data protection regulations and inform them about the company’s cybersecurity policies.

Final Words

You can’t prevent cyber attackers from targeting your company’s systems, but you can try as best as you can to shield them. Training your employees on best practices can help you to minimize the chances of cybercrime immensely. Their knowledge of cybersecurity threats can make your company secure or a vulnerable target.

Was the State of the Public Cloud Being Used Effectively by IT Managers in 2020?

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StrategyDriven Risk Management Article | Was the State of the Public Cloud Being Used Effectively by IT Managers in 2020?When Netsuite and Salesforce launched in 1998 and 1999, respectively, experts generally considered the cloud to be a fad. Since the early 2000s, the industry has experienced unprecedented growth. The collection, storage, and securing of data is a priority in the business world globally. Cloud-native technology has shaped business operations remarkably in the past decade.

Contino recently released the result of a study that can be accessed in full on www.contino.io/insights/infographic-public-cloud-report-2020. Within it, curious minds can gain enormous insight into the public cloud’s state in modern enterprises. IT managers in businesses with more than 5,000 members within the UK, US, and APAC were questioned to arrive at its conclusions. The survey took place at the start of 2020 to investigate the applications of could-native technology.

These are some of the study’s findings.

The Public Cloud Has Widespread Usage

Among the surveyed, 77% stated that their organisation used the cloud in one form or the other. Another 50% of these IT managers made use of the hybrid cloud. Only 1% of the professionals said they were using on-premise solutions at the time. The rest of the respondents made use of a single public cloud, single private cloud or multi-cloud.

Business-Wide Public Cloud is Uncommon

Only 13% of IT managers reported that their businesses had a fully-fledged public cloud system. Those who said that the most common application of the system was for projects or multiple apps (42%). 24% of businesses were experiencing progress in their public cloud usage, while 18% were still developing.

Most Respondents intend to Expand Cloud Programs

83% of the companies are currently trying to increase their cloud program usage. Out of these, 48% want to proceed cautiously. However, 36% think the best way is to move quickly. A minor 4% are interested in returning to on-premise solutions and mentioned that they were in no haste.

Security & compliance are the Main Obstacles

Security and compliance are vital to businesses. This is why business owners and directors are concerned about the risks of using public cloud since the two factors can vary significantly between industries.

The survey found them to be the biggest barriers. 48% of respondents talked about security concerns, while 37% were apprehensive about compliance. However, most IT professionals stated that these two issues were far from being the only barriers to implementing cloud technologies.

They cited a lack of skills, resources, and the hassle of integrating existing systems as the other issues that obstruct a switch to the cloud. 19% expressed eagerness to get with the cloud, but lack of leadership buy-in stopped them from going ahead.

The Public Cloud is Considered to be as Secure as On-Premises

64% of respondents think that on-premises offers even less security than the cloud. This belief comes after previous security concerns about the cloud. 29% said that they had not noticed any security-related differences between the two systems. Only 7% felt that on-premises provided better security.

Company is More Important than Location When Expanding Cloud Programs

Across the businesses surveyed, Contino found that location played little to no role in determining responses. Instead, the nature of each company that factored into cloud-related decisions.

The Cloud Facilitates Innovation

While 81% of IT managers stated that using the cloud-accelerated innovation, no one expressed any belief that the cloud was hampering innovation. 5% reported that the cloud increases their business expenditure. However, 79% said that the system helped them minimise expenses.

Vendor Lock-In is A Serious Concern

Though 23% reported that they had no worries about vendor lock-in, 63% expressed reluctance to commit to the cloud due to concerns with vendor lock-in that ranged in severity.

The Most Significant Advantage is Aligning IT with the Business

100% of the respondents reported many ways of switching to the public cloud was beneficial to their organisation. 72% found that compliance related to business data was easier, while 4% thought it was trickier.

Many modern organisations have implemented the public cloud in varying forms. The majority of respondents are committed to these programs in the foreseeable future. While security and compliance are the most significant barriers to cloud usage, they were also cited as the most remarkable benefits of switching to the cloud.

Defending Your Storefront With Care & Consistency

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StrategyDriven Risk Management Article | Defending Your Storefront With Care & Consistency

It’s important to note that when we own and operate a store, or a retail building, or our restaurant, we must learn how to defend it. Of course, that usually involves having rules as to what kind of candour is allowed within the store, and having security on hand to remove harmful people where necessary.

That said, it can also be that sometimes, our physical presence of being located in an easy-to-reach spot can be a problem. Furthermore, most people know that retail businesses have had to temporarily close down, or that offices are vacant, and that means they could be targeted by the hands of those looking to do harm. How are you supposed to defend your storefront with care and consistency in this light? Is there a best way forward?

We believe there is. Thankfully, you don’t have to feel that this is out of your wheelhouse, or that it requires overly expensive consideration. With the following advice, you’re sure to defend your storefront in the most aesthetically and purposefully intrusive manner.

Strong, Shatterproof Windows & Glass

Of course, it’s important to ensure that your store is protected with strong, shatterproof glass. This not only prevents people from getting through, but it prevents the nasty sharp edges that might unveil themselves if a trespasser were to break their way through glass and ultimately end up harming themselves. This way you can make sure that the exterior of your building not only looks secure, sturdy and aesthetically similar, but that it is much more secure than it might have been. In some older buildings especially, shatterproof storefront windows are essential.

Appropriate Warning Signage

Often, clear and direct communication is essential to prevent 90% of difficulties that may otherwise happen. This can often be applied in the form of consistent signage. For instance, you might clearly state that thieves or trespassers may be prosecuted if entering your loading bay area. You may notify just what burglar alarm you are using, or the fact that CCTV systems operate at all hours. If you have vans in your lot, a simple sign that states no tools are left in there overnight can prevent a would-be theft. Appropriate signage may not work in 100% of cases, but they certainly put your strong and firm point across -as if you were there.

CCTV & Security Measures

Proper CCTV and security measures can of course help you in the last-ditch effort that you may need to protect your retail presence. To enhance your security measures, consider installing state-of-the-art digital sign installation systems, which can not only act as a deterrent but also provide real-time monitoring and recording capabilities to ensure the utmost safety for your storefront. This might involve ensuring that your alarms are well installed, that you use a range of real and false CCTV cameras to deter would-be trespassers, and that you regularly communicate with other storefronts or restaurants in your area to make sure that you bar or ban the right shoppers, that you know who is most likely to cause trouble, and that you can adequately give evidence in the case of a difficulty.

With this advice, we hope you can more easily defend your storefront with care and consistency.