Business owners often have very specific goals for their company, and will often focus on making sure their business is known as successful, profitable, innovative, popular, or growing. Unfortunately, one word that describes many small and medium businesses is vulnerable; meaning their merchandise can be easily harmed or damaged, or there are other factors that make them less stable. Too often business owners have no clue that their business is vulnerable, or the extent of these vulnerabilities. In today's Aegis blog post, we'll look at what can make a business vulnerable, and what commercial insurance solutions are available to better protect companies.

Vulnerable Industries

Some businesses face higher risks and threats simply because of the industry they're in. For example, businesses like restaurants or retail stores may be more vulnerable than a law firm or real estate office simply because of the nature of their business and client interactions. Unlike other businesses that generate steady income over time, have clients in long-term contracts, or can work remotely, restaurants and retail stores don't have a way to earn income if their business is closed for any period of time due to utility outages, property damages, or other issues. This makes it much harder for them to pay for rent, taxes, utilities, payroll, and other bills if they're not fully operational.

Vulnerable Assets

Another reason why some companies have a greater exposure of risk is because they have more vulnerable business assets or inventory. For example, the bulk of the materials and inventory in a bakery or restaurant are susceptible to spoilage or contamination if not properly stored and handled, or power is lost. Retail stores may have very delicate merchandise that can be easily damaged or destroyed, such as a bookstore or candy shop. In addition, a company with a large amount of sensitive files or online data could be more vulnerable to hackers and cyber criminals.

Vulnerable Location

Finally, a business can be more vulnerable to attacks or losses to property because of their location. While some companies might prefer to pay lower rent or mortgage payments in underdeveloped or neglected parts of town, the cheaper location might come with a greater risk for property theft, vandalism, or personal injuries. Also, businesses in low-lying or coastal regions may be more vulnerable to property damage from tropical storms or regional flooding.

To curtail potential losses, vulnerable businesses can get extra protection through other forms of commercial coverage including Loss of Income Insurance to cover payroll while the business is closed, Business Interruption Insurance to cover rent, taxes, and bills during a closure, and Utility Disruption endorsements to cover losses related to disruptions in utility services. Aegis Insurance & Financial Services is pleased to be a leading provider of Commercial Insurance solutions for businesses of all sizes and across all industries, and we can develop a customized commercial insurance tailored to your unique business needs. Contact Aegis at 713-850-7622 for more information, or fill out our online form for a free quote!