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Determining Risk for your Small Business

The amount of insurance needed for your small business encompasses more than simply a building and its contents. There are many factors that can affect a business ranging from injured workers and cyberattacks to fire and flooding. If you don’t have adequate insurance for all contingencies, one adverse situation could put you out of business.

There are five main types of risk that any business will face. They are compliance, financial, operational, reputational and strategic. A complicated formula exists for determining risk, which is why most business owners leave the number crunching to insurance agents.

It will be essential to consult with an insurance agent that can assist you in determining the value of your business and any unique types of risk you may encounter based on your industry and location where you conduct commerce. The types of risks you may face include the following.

Asset Loss

Commercial property insurance covers a variety of assets from office space and warehouses to machinery and equipment in the event of theft, vandalism, or natural disaster. There are also some natural disasters that won’t be included, so you may need additional coverage.

Commerce Interruption

Insurance for business interruptions due to a wide variety of circumstances protects you against lost income if you’re unable to conduct normal commerce.

Defective, Dangerous Products

Even if you only distribute a product, if it’s found to be defective or dangerous you’ll need insurance to protect yourself against litigation.

Employee Injuries

Workers’ Compensation is mandated. It protects you and employees in the event that there’s a job-related injury, whether you’re in a low or high-risk industry.

Home Business

If you operate a business out of your home, don’t assume that your homeowner’s policy will cover loss due to fire and other circumstances. Many policies exclude home businesses and you may need to purchase a rider.

Inadequate Services

This falls under the category of professional liability insurance. Often called Errors and Omissions insurance, it protects you from client claims that you provided inadequate or sub-par work, services, or consulting.

Injuries, Costs, Settlements

General liability provides protection in injury claims and it’s critical if you own a business where customers or clients frequent. It also covers their property while they’re there.

Online Risks

Cyber protection insurance is a necessity in an age of hacking and ransomware whether you’re operating out of your home or in a separate space. It protects you against liability in a wide range of cyberattacks.


Bad online reviews and negative word-of-mouth can destroy your reputation. Reputation insurance protects you from loss of sales related to reputational damage.


A vehicle used for work-related services will need some type of commercial auto insurance. Even an employee that makes a drop off or lunch run with a company vehicle creates a risk that needs coverage for your business.

For more information about how The Sena Group can help you with any

of your insurance needs, please contact us at 561-391-4661.

We can be found on Social Media at the following links.


The Sena Group
6501 Congress Ave., Ste. 100
Boca Raton, FL 33487