Posted on | March 28, 2013 | Comments Off
Small businesses are more susceptible and fall prey to more risks than their big cousins. Most people don’t understand the true definition of a small business, unless of course, you have your business intelligence certification. A small business is a business that has fewer than 100 employees. Because of their size small businesses are prone to many more risks both large and small. The owners of small businesses have both personal and business involved which means they have a lot more to lose than larger businesses which is why they are so protective. Unfortunately small businesses are into the phase of going under way before the owners realize it’s happening.
Small business owners pour their heart and soul into their companies and are vulnerable to all the problems and situations that arise as they grow. There is always a lot at stake both emotionally and financially. For example, when something occurs in the personal life of a small business owner that negatively affects them leaving them not able to work then the business is negatively affected as well. If they are supporting a family the decline of the business affects their family as well. Sure you may be able to dictate your schedule and have time to things occasionally but your time is limited as small businesses most often take up well more than a 40 hour work week.
Two of the biggest problems that affect small businesses are fraud and financial problems. Recent studies have indicated that most small businesses neglect to put antifraud policies into effect which leaves the business exposed and the results are financial ruin from fraud. Bigger businesses make sure they are covered by implementing antifraud policies. The only alternative for small businesses is having an antifraud policy that bridges the gap and ensures their businesses remains safe and secure
More than half the businesses in the U.S. feel they are not sufficiently covered against many different risks especially the big ones. There are many reasons for this. The first being many small businesses are under the illusion that it is too expensive to be sufficiently covered against fraud. However, they do not consider the money they could lose from fraud as compared to the money spent for antifraud coverage. They also do not have coverage to prevent the business from being effected in the event the owner is unable to work for several months or other disasters such as theft or fire.
Considering these factors it is wise for small business owners to consult a provider to get the coverage they need to cover fraud, theft, fire, and to protect when the owner is unable to work for long periods of time. Small business owners can also take income protection classes to learn more about how to protect their businesses including protection from losses the owner should become incapacitated. Having these coverage’s can be a bit expensive at first however when compared to the potential loss from unexpected disasters makes it a wise investment. Small business owners can also get coverage that replaces salary, rent and utilities in the event disaster strikes such as theft or fire.
There are many different types of coverage small business owners can get to protect their business and keep it safe and on the grow. See more at this forbes page.