10 Texas business insurance exposures to tackle in 2017

By Higginbotham on January 18 , 2017

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If there’s one thing Texans are serious about, it’s high school football. Entire populations of many small towns can be found at the stadium on any autumn Friday night, cheering on the local team. Some of the biggest high school football movies and TV shows such as “Friday Night Lights” are based on Texas high school football.

Those football teams naturally want to improve their game each year. So, they diligently review films, practice, adjust their strategies and work hard to execute their game better than the year before.

That’s how it should be with your business and your risk management game. Each New Year is the perfect time to review the past, adjust your strategy and commit to managing your risks better than the year before.

That includes having the right financial protection for those risks. So, for 2017, make sure your risk management game includes a strategy for tackling these 10 business insurance exposures:

  1. Your property. Whether it’s the wrath of Mother Nature, theft or fire, property loss can throw a serious wrench in your ability to continue operating.
  1. Key person losses. Do you have one or more employees who are absolutely mission critical to your operation? If one of them dies or is unable to work unexpectedly, would you be able to continue your day-to-day operations?
  1. Employee injuries. Many business owners still don’t fully understand the overall impact workplace accidents have on their business. Besides the initial treatment costs and lost production time, workplace injuries affect insurance premiums, which can increase costs for many years to come.
  1. Employment practices. From the minute you start the pre-hiring process until the exit interview, you’re at risk for a lawsuit. Employment practices lawsuits are also on the rise (and they can be costly!). Even the many lawsuits that are groundless still eat up time and costs to defend.
  1. Business interruption. The DOT estimates that more than 40 percent of businesses never reopen after a disaster such as a fire or flood. There are many different scenarios that could shut down your operations – a building collapse, civil unrest, cyber-attack, damage to shipping containers, striking workers or technical issues.
  1. General liability losses. Claims of bodily injury or other physical injury, libel, slander, advertising injury or property damage as a result of your products or operations can turn into costly legal battles.
  1. Cyber risks. It’s a growing threat, and every business is at risk. Data breaches, viruses, email phishing schemes, ransomware and many other risks can put sensitive data at risk and wreak havoc on your business, including lawsuits if customers’ information is compromised.
  1. Your supply chain. If you rely on third party suppliers, you’re always at risk – and that risk is multiplied if your suppliers are global. Anything that interrupts one of your suppliers’ operations can impact yours.
  1. Contracts. Careless oversights when evaluating business contracts can make for costly headaches down the road. Make sure your business isn’t taking on added and unnecessary risks when you enter into contracts.
  1. Your reputation. This is your most valuable asset, so anything that puts it at risk can cost you. Take a close look at how much you rely on others to manufacture your product, subcontract part of your service, or deliver the inputs you need to sell your products.

Protect your biggest risks this year

When you’re honing your risk management game plan for 2017, make sure it includes robust insurance protection. For General Liability, Employment Practices Liability, Business Interruption, Cyber Liability, Key Person and other essential business insurance coverage, call our Texas business insurance professionals at Higginbotham.

Tags: Business Insurance


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