With the complexities of today’s world, there are many risks business owners need to evaluate to adequately protect their business and bottom-line. Business owners traditionally insure their property, equipment, vehicles and liability risks.
Chubb North America recently conducted a study on the top risks facing privately held companies in the United States. The study revealed a large percentage of business decision makers and owners are not taking the proper steps to protect themselves against liability risks, potential losses from lawsuits and cyber-crimes. In many circumstances, such events can take a business owner away from their day-to-day responsibilities of leading their business.
The study found the following sample of anticipated top challenges privately held companies will face in the next three years: attracting & retaining employees (54%), management of expenses (48%), changes in client needs (47%), increased competition (34%) and changing government regulations (33%).
The purchase of specific coverages, such as Employment Practices Liability, can assist in addressing and resolving workplace harassment, bullying, retaliation and discrimination claims. This will further a company’s goal of attracting and retaining quality employees due to a respectful and reputable workplace environment. Director & Officers insurance coverage can protect a business from wrongful actions of executive management member or employee that could result in a lawsuit.
Almost every privately held business has exposure to the risks listed within this article. It is our recommendation that business owners discuss these exposures and coverage options on an annual basis. If you have questions about your company’s exposures, contact your Flood and Peterson representative today.
(Source: Top Risks for Private Companies in the US. Chubb Private Company Risk Survey)
Jamie May, CIC