Small Business Liability Risks to Watch Out For

Here are some of the liability threats that small businesses need to be on the lookout for.

Liability issues are some of the most expensive and damaging types of problems that a small business can face.  This is why it’s so important for business owners to take precautions against these types of threats.  Here are some of the most common liability issues that small businesses experience.

  • Product Liability Issues

If your company is involved in the manufacture, sale, or distribution of products, then you can be held liable if the product causes injuries, damages, or other losses to consumers.  Additionally, your company can be held responsible for product recalls and product advertising issues.

  • Employment Practices Liability Issues

Employment practices liability issues arise when employees claim that a company treated them unfairly or illegally.  Common employment practices liability claims include sexual harassment, discrimination, breach of employment contract, payroll issues, and so on.

  • Cyber Liability Issues

If your business is the victim of a cyber attack or data breach, then your company will be held liable for all the sensitive information that has been compromised.  You will be responsible for the cost of informing customers, recovering lost data, restoring compromised identities, repairing affected computer systems, and so on.

These are some of the major liability issues that your small business needs to be wary of.  Remember, the best way to protect against any liability issue that your company faces is by securing the right commercial liability insurance.  For assistance with your small business insurance needs, contact the professionals at Robert J. Los Insurance Agency in Hamburg, New York today.