Last updated on March 19th, 2023 at 04:37 pm
All businesses face external and internal risks that can damage their business. In the tech industry, these risks are considerably high. To better protect your assets, you need to first understand the common risks facing your company.
What Is Business Risk?
If you find yourself asking “what is business risk?”, the answer simply refers to any event that can have a detrimental impact on your business. To find out what your business risks are, you will need to carry out a risk assessment. Then, you can find appropriate insurance to protect your assets against all eventualities.
Cybercriminals are always looking for ways to harm businesses and access private information. The majority of attacks attempt to steal data and sell it for a profit. However, other attackers are simply out to cause mayhem. For example, malware can be delivered to your systems through digital communication, leading to misbehaving systems and loss of profits.
System Failure and Loss of Business
Software needs updating to receive the latest functionality and security patches. However, during the process, computer systems can shut down unexpectedly. Unfortunately, this is unavoidable but will put you out of operation for a while.
Privacy and Data Security
The public has become more aware of how their business is used and stored. However, whether an employee breaches the code of conduct, or you come under a cyberattack, private data can fall into the wrong hands. Lawsuits as a result of data breaches are considerably expensive, and there has been plenty of media coverage on the topic over the last few years.
Your onboarding procedures, vetting process, and company policies will be robust. However, employee fraud can happen within any business. To protect your assets against property theft, you need to take out fidelity and crime coverage.
Injuries at Work
Workers’ compensation is required by law in the majority of states. This type of coverage is designed to protect yourself and your employees in the event of injuries at work. The insurance will pay out compensation, including loss of earnings, as well as subsequent medical bills.
Your HR department will have put together detailed policies regarding the correct terminations and discipline procedures, discrimination, and harassment. However, this doesn’t mean your robust policies won’t have gaps, which can leave you with lengthy court proceedings if employee complaints escalate that far. Employee practices cover will protect you financially against claims of wrongful termination/discipline, harassment of any shape, or discrimination.
The chances are you hired talent based on expertise, but mistakes can be made by anyone. Unfortunately, careless mistakes can lead to significant losses to your customers and business partners. To protect yourself from claims of negligence or erroneous work, you need to take out errors and omissions insurance.
Technology companies face considerable risks from every angle, many of which are unavoidable. To protect your business, carry out a thorough risk assessment and take out all necessary insurance. Lawsuits are expensive, and they’re known for putting companies out of business for good – avoid becoming another statistic.