Risks that your expanding small business faces.
If you own a small business, then you are probably looking for ways to expand your venture. Whether this means hiring a new employee or introducing new product or service offerings, it’s important to understand that growing your business exposes you to new risks. To ensure that these risks do not hurt your company, you need to take preventative measures, such as securing the right business insurance in Montville, Connecticut. Here are some of the risks that your growing business faces and what you can do to protect against them.
- Hiring a New Employee
Hiring new staff members opens small businesses up to a multitude of risks. For starters, new employees mean an increased risk for worker injuries and illnesses. Additionally, because new employees may be inexperienced, they have an increased chance of making professional mistakes that the company will be held liable for. Finally, when interviewing and hiring new employees, your business’s management faces the risk of employment practices liability issues, which could make your company vulnerable to major lawsuits. The best ways to protect against these issues is by asking new hires to complete rigorous training. This will reduce the chances of them injuring themselves while at work while simultaneously lowering the chances of them making major mistakes. To ensure that company management or senior staff do not run into employment practices liability issues, they should receive intensive sensitivity and inclusion training and be educated on appropriate interview protocol. You should also protect your business by updating your workers compensation, professional liability, and employment practices liability insurance when you add a new member to your team.
- Selling New Products
If your business is involved in the manufacture, distribution, or sale of products, then you might expand your enterprise by adding new product offerings. The more products you offer, the greater your risk for product-related injuries, damages, and other losses. To reduce your risk for product liability issues, make sure all new product offerings are subjected to intensive research and development and safety testing before the official release. Additionally, make sure you update your business’s product liability insurance to protect against your increased risk.
- Offering New Services
Introducing new service offerings is a great way to attract new customers and provide more value to existing clients. However, anytime your business introduces a new professional service, it faces an increased risk for professional liability issues. These issues arise when your company makes a mistake while rendering professional services, putting clients and other parties at risk for injuries, damages, and other losses. You can reduce this risk with careful employee training and oversight. Additionally, updating your professional liability coverage will also provide an added layer of security.
These are some of the risks that your business may face as it expands. Remember, securing the right business insurance in Montville, Connecticut is a great way to keep your company safe. For assistance with all your commercial coverage needs, contact the experts at The Reardon Agency today.
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