3 Common Liability Risks that Small Business Face

Watch out for these small business liability risks.3 Common Liability Risks that Small Business Face

Liability issues are some of the most serious threats that a small business can face. To make matters worse, liability problems come in all shapes and sizes, and they affect companies of all sizes, scopes, and industries. Here are three of the most common types of liability issues that your business faces.

  • General Liability

General liability issues most commonly refer to third-party injuries, property damage, or other losses that take place on your business’s premises. For instance, if a customer accidentally tripped and injured themselves while walking into your store, your company would likely be held liable for his or her medical treatment. Additionally, the injured customer would have rights to sue your company for damages, so you might also have to deal with a liability lawsuit.

  • Employment Practices Liability

These types of liability issues arise when a prospective, current, or former employee claims that your business treated them unfairly or illicitly. Common employment practices liability claims range from discrimination to sexual harassment to breach of employment contract to payroll issues. Companies accused of employment practices liability issues are often subject to lawsuits and forced to pay for damages

  • Cyber Liability

Cyber liability problems arise when your business experiences a major cyber attack or data breach that results in private customer information being compromised. If this should happen to you, your company would be responsible for informing customers, recovering lost data, repairing affected computer systems, and much more. As with the previously mentioned liability issues, cyber liability problems could lead to lawsuits as well.

These are three of the commercial liability issues that your small business should look out for. Luckily, having the right business insurance in place can help you protect against these types of liability problems and many more. To get your business the comprehensive commercial liability coverage it needs, contact the team at Desert Empire Insurance today.