Business owners have traditionally insured property, equipment, vehicles and liability. With the complexities of today’s world, there are many risks an insurance buyer should evaluate.
In 2017, Chubb North America conducted a study of top risks for private companies in the US. The study revealed a large percentage of business decision makers are not taking steps to protect themselves against liability risks, potential losses from lawsuits and cyber-crimes. In many circumstances, such events can take a business owner away from their day-to-day responsibilities of leading their business.
The following is a sample of anticipated top challenges privately held companies will face in the next three years: attracting & retaining employees (54%), management of expenses (48%), changes in customer needs (47%), increased competition (34%) and government regulations (33%).
The purchase of specific coverages, such as Employment Practices Liability, can assist in addressing and resolving workplace harassment, bullying, retaliation and discrimination claims. This will further a company’s goal of attracting and retaining quality employees due to a respectful workplace environment. Director & Officers insurance can protect a business from wrongful actions of executive management and employees that could result in a lawsuit.
Almost every privately held business has exposure to these risks. It is our recommendation that business owners and decision makers discuss such exposures and coverage options with their insurance broker.
(Source: Top Risks for Private Companies in the US. Chubb Private Company Risk Survey)