Is your business prepared for 2018? If not, you had better get ready because 2018 may be filled with many twists and turns that could affect your business. Last year we saw record storms, wildfires, economic difficulties, cyber breaches, sexual harassment claims, and more. All of these affected businesses throughout California. There is no reason to think that 2018 will be any different. In fact, 2018 might be even more volatile and that is why your business needs to be prepared to manage many different kinds of risks.
Top Risks For 2018
Here is a breakdown of your top business insurance risks for 2018, as well as some ideas to help you manage these risks. Business insurance is designed to protect you from the unknown events that may cause you financial loss. However, by implementing risk management best practices you are able to minimize these risks as best you can. Here are top business insurance and risk issues for 2018, not necessarily in any order:
World Disorder – There continues to be unrest in many parts of the world, from an unstable man in North Korea to ongoing terrorism in Europe and the Middle East. These events could lead to a tightening of the commercial insurance market.
Sexual Harassment Revelations – This trend appears to continue into 2018. Women are being empowered to come forward with these kinds of allegations no matter how powerful the accused person is. This will lead to an increase in harassment claims in 2018.
Strong Economic Conditions – With a continued growing economy, business will be faced with a limited workforce and the increased competition will drive wages upward. Finding quality workers will be the most difficult part of 2018. However, once you find the right employee you may have to pay more than anticipated.
Cyber Risk – Cyber risk will continue to be a major concern for all businesses in 2018. It will be necessary for your business to have a clear risk management plan to address this growing concern.
Increased Claims in High-Risk Jobs – High-risk jobs will continue to see an increase in accidents as economic growth creates increased workplace stress.
Attracting Top Talent – With continued reduction in unemployment, it will be necessary for businesses to develop new methods to attract the best talent.
Business Disruptions –The current political climate may lead to regular social disruptions causing work stoppage or absenteeism. In addition, businesses should be concerned with possible long-term shutdowns because of fire, flooding, etc.
Suggested Risk Best Practices
There are a number of insurance and risk best practices that any business can use to address these risk issues. We provide these best practices as a starting point in the decision. We hope you might connect with us to help you identify how to develop a specific plan for your business.
There are two strategies that your business can utilize to limit harassment claims. First, develop a comprehensive set up employment policies and procedures. This should include a strict anti-harassment policy and clear reporting provisions. Second, purchase an employment practices liability policy. This kind of coverage can offer indemnification for actions relating to employee/employer relations for which you, the business, are held legally liable.
Cyber liability insurance can be purchased through your broker and is very competitively priced. A cyber policy can offer third-party breach and notification as well as provide any direct loss your business incurred because of a covered cyber breach. Your business can institute loss prevention techniques to help lower your risk. Some of these might include requiring employees to reset passwords on a regular basis, making sure your security software is up to date, developing guidelines for the protection of private client information, and ensuring that all HIPPA guidelines are followed.
One of the most common business disruptions is caused because of a fire or vandalism. Business interruption insurance is designed to cover the lost revenue as the result of a covered loss. Business Interruption insurance can cover the cost of ordinary payroll, cost to rent a temporary facility, and other related expenses.
Attracting Top Talent
Your business will need to create innovative strategies to attract and retain top talent. In order to accomplish this, your business should consider thinking out-of-the-box.
Offer flexible work hours
Allow work from home for certain job functions
Offer more education and career growth
Offer a 401k plan
More paid time off
Provide food for employee lunches
Offer wellness programs
Plan more company retreats and planning meetings
Offer tuition reimbursement
Leap/Carpenter/ Kemps Insurance Agency can help you manage these and other risks your business may have. Call our professionals today for a no-obligation business insurance review.
LCK Insurance Agency is one of California's most prominent independent insurance agencies. They offer commercial business insurance, employee benefits, life & health insurance, and personal insurance.
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Leap | Carpenter | Kemps Insurance Agency provides Commercial Business Insurance, Employee Benefits, Life and Health Insurance, and Personal Insurance to all of California, including Merced, Atwater, Los Banos, Mariposa, Madera, Fresno, Modesto, Turlock, and Stockton.
CA License Number 0646081 | Licensed to do business in California, Arizona, Hawaii, Idaho, Montana, Nevada, North Carolina, Oklahoma, Oregon, Virginia, West Virginia and Washington.