Is Your Business Bulletproof? Consider These Liability Loopholes

As a small business grows, liability becomes a significant concern. Many startups, small businesses, and young ventures mis-assess their risk or fail to take potential risk loopholes into account. For Ann Anderson, this is the sweet spot where her passion for her community, her excitement for small businesses, and her knowledge of insurance thrive.

Anderson Insurance Agency counts among its clients many small business owners for whom Anderson is a tireless advocate. Liability and exposure to risk are one of her greatest concerns for her clients.

Anderson comments, “Business owners often don’t fully consider all of their liability risks.” She urges business owners to think about all angles of their business and how it intersects with the community around them to begin the process of identifying potentially uncovered risks.

For instance, is there a vehicle used in conjunction with the business? What happens if that vehicle is in an at-fault accident while being driven for business purposes?

Another area where Anderson frequently sees liability loopholes for small businesses is in relation to contractors. Even one contractor working for a business could pose a liability threat if improperly insured. What if that contractor runs to the bank and gets in an accident? What if that contractor is insured while making deliveries for the business. These are the kinds of questions Anderson helps her clients that are small business owners carefully consider.

Cyber insurance is another frequently overlooked area for small businesses. Small businesses may assume they are safe from cyber threats (77% do!), but in 2017, 61% of cyber incidents were directed at small businesses, while only about 17% of businesses actually have some form of cyber insurance in place. Anderson says,

I always encourage small business owners to talk to their agents about every angle of their business. Ask the questions – don’t leave yourself wondering or vulnerable. I am my clients’ biggest advocate.

Moving or transporting goods can pose a threat to businesses as well. If supplies or goods are in transit and disaster strikes, a small business owner could potentially lose large portions of product or equipment. These losses can be devastating for small business just getting off of the ground, but a good insurance agent can help sort through the complexities. Anderson continues,

Small business owners have a fear of the unknown. Potentially higher premiums or unknown price tags are intimidating!”

Anderson continues with the story of a client who came to her. “Make me bullet-proof!” he declared. Anderson said that they carefully combed through his potential liabilities and came up with a plan to cover a remaining loophole.

Anderson laughs. “A $300 annual increase, $15 per month, was all that it took to make him ‘bulletproof’.” Anderson loves the term “bulletproof” now and encourages her clients that are business owners to be willing to investigate their liability fully. From personal experience, she knows that, while it's scary to see an increasing price tag, often the cost of lowered risk is as low as a few coffees.

Is it time to re-assess your small business’ risk? Hiring a local agent who is a part of the community, like Anderson, means that your agent is personally invested in your success. Reach out to Anderson Insurance Agency today to schedule an appointment and make your business “bulletproof”.