Evaluate Operational Risks: Key to Protecting Your Business

Evaluate Operational Risks: Key to Protecting Your Business

When Rosa and Camila first opened the doors of their respective businesses, they never imagined the operational risks involved in daily activities.

Rosa had dreamed of owning a bakery since childhood, where she could showcase her baking talents inspired by her grandmother’s recipes. Camila had a similar vision as the owner of an auto parts store with a large repair shop.

Both entrepreneurs started with about a dozen employees, innovative ideas, and modern premises that exuded efficiency.

However, business operations always involve risks such as fraud, internal theft, employee safety issues, cyberattacks, system failures, accounting errors, vandalism, natural disasters, or product defects. These risks can lead to significant financial losses and, in some cases, an even harder loss to overcome: reputation, whether with dissatisfied customers due to poor product or service quality or with unpaid suppliers.

One day, one of Rosa’s employees had a costly accident while delivering products to clients in a van. When Rosa filed the insurance claim, she discovered that her policy wouldn’t cover the damages because the vehicle was only insured under a private auto policy.

In Camila’s business, the accounts were never balanced; income was never enough to cover expenses, rent, bills, and employee salaries, despite the store and repair shop always being busy. Eventually, she discovered the reason: two employees had devised a scheme to take half of the daily revenue. They were immediately dismissed. If Camila had crime insurance coverage, it would have compensated for the losses caused by the employees. Now, she must go to court and hire a lawyer, an arduous and costly process.

Conclusion: To mitigate these risks, it is essential to have the right coverage, including protection against natural disasters, health insurance for employees, employee dishonesty coverage, workers’ compensation insurance, commercial vehicle insurance, errors and omissions insurance, professional liability insurance, and cyber insurance, among others.

Creating a comprehensive commercial insurance package that anticipates and addresses potential business risks is crucial. Univista Insurance is the ideal choice, with specialists who can design custom protection tailored to your business, helping you avoid experiences like those of Rosa and Camila.