SavvyprobookkeepNo matter how careful the manager is when making decisions, certain situations are beyond his control and could cause harm to the organization. However, even if the existence of these business risks is a fact, taking out insurance can minimize their consequences.
Want to find out how? Do you want to understand what are the main business risks that an enterprise can avoid? So, continue reading this post. We will analyze the main threats that management can encounter and point out the best alternative to avoid them.
Main business risks
The very definition of the word risk shows that this type of event is uncertain and its occurrence does not depend on the will of those interested. This means that, even if your company works in an organized way, within a plan, these unforeseen events can surprise managers.
There are risks inherent to the operation of an enterprise, such as uncertainties in the market and the sector in which the company operates and the macroeconomic environment. To avoid these situations, the organization must follow an entire management process.
However, there are other situations that a manager cannot predict and, among them, are the main business risks. Do you want to know them and prepare your company to deal with them?
1. Threats to heritage
Whether your company is small or a large company , it is essential to be careful with your assets. Losses resulting from losses in this area can compromise the financial health or even the functioning and survival of the organization.
Taking out insurance that covers losses in the event of a fire is mandatory for companies. Without this coverage, the enterprise is subject to fines or may be prevented from operating.
In addition to this mandatory insurance, there are other policies that provide for reimbursement in the event of other external events, the main ones being:
- robberies or thefts;
- emergency fixed expenses;
- fires, electrical damage and accidents involving the company’s fleet;
- compensation in case of loss caused by vandalism;
- damage resulting from natural disasters.
Although not mandatory, these insurances guarantee greater peace of mind for the enterprise and its employees.
2. Problems involving civil responsibilities
Civil Liability Insurance is extremely important for those who provide services to third parties. An example are companies that work on events, sporadic occasions, with teams that work on customer premises or use third-party machinery.
Basically, this contract provides for compensation for damage caused to the property of third parties, whether customers or others. The insurer reimburses repair expenses and amounts spent on this process.
3. Work accidents
Occupational Accident Insurance (SAT) is an obligation that companies must comply with. Its function is to guarantee financial compensation to the employee in the event of an accident at work.
It is worth remembering that, according to the legal definition, the following are also considered work accidents:
- professional or work-related illnesses, which have been produced or triggered by the activities carried out by the employee in the performance of their role;
- typical accidents related to the performance of work or that occurred when the employee was working for the company;
- accidents occurring on the route between the place of residence and work, as long as the distance and time are compatible with this route.
The law also understands that, when an employee suffers these accidents, their possibilities of obtaining the same income are reduced. It is possible that the injured person has permanent sequel, which compromise their functionality and ability to work.
Therefore, insurance that anticipates this situation and provides the necessary means to provide assistance is not only mandatory, but also very important for companies.
4. Data security threats
Currently, it is essential that organizations raise awareness among their employees so that they adopt safe digital behavior and invest in protection with antivirus and firewalls.
However, even with all precautions, organizations may face cyberattacks and other threats to the data collected and stored in their operations.
5. Other risks
Insurance companies also offer solutions for other company needs. They can take out health and dental insurance for their employees, group life insurance, corporate pension insurance and even to guarantee working capital in times of financial vulnerability caused by an accident.
The importance of insurance in preventing business risks
As we can see, companies will not always be able to avoid some of these risks.
Although it takes measures that are within its reach, such as hiring surveillance services and equipment, investing in digital security, purchasing protective material and providing guidance to employees, accidents can happen.
Just like these measures we mentioned, taking out insurance cannot prevent accidents from happening. However, this is a very important decision to minimize the consequences and allow business continuity.
In addition to the assistance that a good insurance company provides — which is essential for an organization in a time of crisis — insurance provides the necessary resources to resolve these situations without compromising the company’s financial health.
Monitoring and assistance to injured employees, replacement of stolen goods or financial compensation, provision of resources in the face of possible processes related to civil liability may seem unnecessary when everything is fine.
However, these benefits are essential in times of crisis and can be crucial for a company’s survival in the face of an accident.
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