Owning a business is a rewarding experience that offers many benefits, but failing to be proactive about protecting your business can lead to significant financial losses. Protection from a variety of potential losses must be put into place.
Hire the Right People. One of the most significant sources of financial loss for a small business is theft by employees. Running background checks on potential employees is one way to determine whether an employee will be likely to steal from your company. Questionnaires designed to identify strengths and weaknesses in a candidate ’ s personality can also be used to assess risks related to hiring a specific employee.
Be Cautious About Business Accounts. It may be easy to give an employee a business credit card to make purchases when you are not available, but having another credit card out there opens your business up to fraud and identity theft. Even trustworthy employees can make a mistake by giving a credit card to someone who uses it inappropriately, instead of swiping it for a business transaction. Giving employees a credit card also opens up the possibility that the card will be lost or stolen.
Purchase Comprehensive Insurance Packages. Insurance coverage can help you keep your business from suffering significant financial losses in case a lawsuit is filed against your company. Liability insurance is particularly important for businesses that have brick-and-mortar stores in which a person can become injured. Businesses that file paperwork and provide consultations to individuals and other businesses may also want to consider carrying a type of insurance known as errors and omissions insurance. This insurance protects your business in case one of your clients claims that you made an error while providing them with a service.
Keep Data Safe. It is important to keep data that contains information about the business and customers safe at all times. Any information about customers that do not need to be kept should be destroyed in a thorough manner to avoid exposing customers to identity theft. Business information that is essential to the success of the company should be backed up in cloud storage or on external hard drives.
Your business can suffer financial losses because of the actions of another person. Protect your business to avoid suffering from the consequences of failing to be proactive about protection.
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