business insurance file

5 Risks That Threaten Your Small Business and How Insurance Can Help

Every small business faces business risks.

We all know that running a small business is tough work, but it can also be risky. There are many different types of insurance that you might need to protect your company and  employees from the unexpected.

You want to make sure that your employees have the best possible coverage in case something happens to them on the job, or if they're hurt while commuting to work. And you want protection for yourself as well – whether it's against lawsuits or natural disasters like fires and floods. Insurance can help with these things and more.

Keep reading to learn about the most common risks.


  1. Employee Injury

    Employee accidents are a big risk for small businesses and injuries can be costly. If you're sued for damages, you might end up paying out a settlement that could seriously hurt your business. And lawsuits aren't the only thing you might need insurance for. You might need to carry workers' compensation insurance. This will cover medical expenses for your employees if there is an accident.

  2. Property Damage

    Property damage can occur when something goes wrong with the building itself, or even items within it. There are a lot of things that can cause this. Accidents (tripping and falling aren't so uncommon), accidents by a third-party (someone slips on a patch of ice outside of your building, for instance), or even someone breaking in and vandalizing your place.

    Property damage insurance will help cover the expenses involved with repairing or replacing damaged property.

  3. Cybersecurity Breaches

    It's easy to think that cyberattacks cannot affect you, but small businesses are also at risk. Most hacks aren't done by hardcore criminals – most often they're conducted by people who want to cause disruptions or gain information for money.

    If someone hacks your business, the costs could be huge. They might include legal fees for informing your customers, setting up a response team to deal with the hack, and even paying for credit monitoring services for your employees.

  4. Natural Disaster or Weather-Related Damage

    No matter where you live, natural disasters can put a serious damper on your business – but some parts of the country are more likely to experience severe weather than others. There's not much you can do about Mother Nature sometimes, but you can be sure you're covered if something does happen.

    Talk to your business insurance provider to find out what type of natural disasters are common in the areas where your business is located – and talk to them about how well-equipped your building is (are the windows large enough for people to escape through after a storm?).

  5. Liability Risk Insurance

    Liability risk insurance is a must for most small businesses.

    This type of coverage will usually include personal and public property liability, as well as medical payments for those affected by the actions of your employees.

    For example, if someone trips and falls on the sidewalk in your store, they might be able to sue you for their injuries. You can also get coverage that will cover lawsuits brought by customers or vendors.

Protect Your Small Business Against Business Risks

The best way to protect yourself against these business risks is to buy insurance.

Talk to an agent who knows about small businesses – they can help you come up with a policy that meets your specific needs. Contact Tailor Made Insurance in Sherwood Park and St. Albert today to get started!