Seeman Holtz Conducts an Investigation on the Correlation Between Insurance Services and Common Risk Management Concerns
Small and mid-sized businesses are naturally more vulnerable when it comes to the various liability and regulatory concerns that could negatively impact their future. While these businesses may not be able to afford all the consultants, specialists, and legal representation that their larger counterparts have on payroll, this does not mean that there is nothing they can do to mitigate damages. In fact, Seeman Holtz investigations reveals that insurance products can be immensely helpful in contributing to risk management for smaller businesses while helping to protect important assets. Here, Seeman Holtz includes a few risks commonly faced by businesses as well as the correlation between comprehensive insurance and risk management for these potential issues.
Supply Chain Issues or Disruptions
Companies that manufacture products overseas or ship products internationally should always conduct proper risk management for the multiple issues that can occur during the process. Many problems can occur during crucial steps in supply chain, and it can be particularly difficult to rectify them quickly and effectively before the business begins to experience losses. For example, a safety issue that impacts the manufacturing process could mean delays that put a business in a tough financial or logistical situation. Recent Seeman Holtz investigations between the correlation between comprehensive insurance and risk management strategy revealed that business interruption insurance is a practical choice for covering the entity if supply chain issues arise. Some providers offer foreign package policies that can extend insurance coverage to a business’s foreign manufacturers. Business interruption insurance can also provide crucial coverage if the preventing your business from running properly occurs on your end as well.
While technological developments have proved fruitful for many industries in the past few years, these strides have been accompanied by a large increase in cybersecurity problems. This trend has been particularly true for e-commerce retailers and fast-food entities, but any business that accepts cards and facilitates business online should be wary of the risks of data breaches. Seeman Holtz investigations into cyber security and its relationship to insurance services found that there are several things that businesses can do to reduce their risk of data breaches that could negatively impact both their business and clientele. For example, business should review their compliance with Payment Card Industry Data Security Standards to best ensure that they are doing everything possible to protect against breaches across their payment network. This is an important part of risk management for cyber security, as there can be penalties if a breach were to occur on your business’s end. To this point, some business- especially smaller businesses that are more vulnerable to cyberattacks- explore the option of cyber insurance. These products can protect against remediation, penalties, crisis management, pr, and even the cost of data breach notification.
Damage to the Property and Its Contents
For most businesses, damage to its physical location and contents are the most glaring (and costly) issues that can occur. After all, disasters such as floods, fires, and hurricanes can do immense damage to a property while potentially making it impossible to continue day to day operations normally. Seeman Holtz investigations into the subject show that most businesses are aware of the relationship between insurance coverage and risk management for potentially damages, but there are naturally some facets of protection that can be overlooked until it is too late. For example, owners need to ensure that the contents of the building (displays, inventory, equipment, and personal property) are insured to their replacement value to protect from damages. For risk management purposes, it may behoove owners to keep a comprehensive inventory of their company’s property, noting objects such as furniture, fixtures, and supplies to have a record of items that may be quickly forgotten if were to strike. Protecting the business if it needs to temporarily close after damages occur is another portion of protection that may be overlooked by owners. To this end, business interruption coverage can be an excellent tool for safeguarding the business, covering expenses and lost income during repairs.
Seeman Holtz acknowledges that there are a wide variety of risk management concerns held by businesses, some of which may be specific to one’s industry. Proper risk management strategy will always be best supplemented by insurance coverage that can provide protection through various obstacles businesses face. While the above list provides insights into some common concerns, it is always important to evaluate (and reevaluate) your specific needs and ability to mitigate damages that may threaten the financial stability of your company.