Business is a great way to supplement your income, pursue your passions, or build a foundation for a future full-time venture. However, it's important to be aware of the risks involved before you take the plunge.
There are a number of potential risks associated with side businesses, including legal liability, property damage, business interruption, company vehicle accidents, death or disability of key employees, natural disasters, and hackers and technological issues.
Some Side Business Risks:
There are numerous risks that accompany a side business. Be aware of these possibilities if you plan to start a side business of any kind.
- Legal Liability: A business is liable for injuries to its employees, customers, or vendors that occur on the company premises or off as a result of the company's negligence. A business is also liable for product-related problems due to defective merchandise or inadequately performed services.
- Property Damage: Any business can sustain property damage, whether it is due to burglary, a fire, an accident, severe weather, or vandalism.
- Business Interruption: If a business suffers a loss, such as property damage, it may be forced to shut down for a period of time. Unless there is insurance to cover business interruption, this break in business can be financially catastrophic.
- Company Vehicle: A business vehicle is vulnerable to damage and destruction, and many businesses require at least one vehicle in order to operate.
- Death or Disability of Key Employees: Some experts argue that the most valuable assets to any business are its employees; without them, the business cannot function. Any health issues or deaths can significantly compromise a business.
- Natural Disaster: Natural disasters can cause property damage, injuries or deaths to employees, severe loss of client base, and many other misfortunes that can effectively ruin a business.
- Hackers and Technological Issues: Many businesses are heavily reliant on their websites to function, but hackers, viruses, and other issues can seriously disrupt their Internet presence.
Insurance Coverage for Side Businesses
The good news is that all of these risks can be covered with the right kind of insurance policy. There are a variety of packages available to suit the needs of side businesses of all sizes and industries.
If you're thinking about starting a side business, be sure to do your research and invest in adequate insurance coverage. This will give you peace of mind and help you to protect your business from financial ruin in the event of an unexpected event.
For all of your business insurance questions, call or contact InSouth Insurance Services today.