What Is The Biggest Financial Risk To A Business In 2015?
What is the biggest risk to your business this year? Well, let’s run through some of the possibilities. You might think that the biggest risk is that you’ll be pushed out of the market by a competing company. It’s possible, but generally if you have a firm footing, you’re always going to have a loyal customer base that will let you break even.
It could be the difficulty of outsourcing. Companies are cutting costs internationally, making their business more attractive to investors than yours. But, we suspect you are already engaging in some form of outsourcing for your company.
You should at least be considering this option. Okay, so maybe it’s the possibility your data could be stolen, losing you the trust of your customers. But, as long as you deal with the theft quickly this won’t be an issue. You will be able to win back the support.
The answer is a lawsuit. It’s not that there is no protection from this financial danger. It’s that companies often choose not to take the protection offered because they believe a lawsuit won’t hit them. Business owners think that if they keep health and safety standards high it will never be a problem.
Well firstly, health and safety measures can only go so far. There is a factor to take into account referred to as human error. You can’t prevent this kind of danger through increased measures. It will happen without any fault on your part, but you can still be blamed.
A good lawyer will ensure if a worker is injured on your premises, they’ll get far more than just their lost paycheck. It’s not uncommon for an accidental injury settlement to be as high as five hundred thousand. They just have to show that either a) you knew about the hazard and didn’t take action or b) you didn’t know and should have been aware.
The other key fact to remember is that it doesn’t matter if either of these facts are true. It’s about whether a lawyer can convince a court they are true. If they can, your business is going to lose a lot of money unless you are protected.
If you have workers compensation insurance, your insurance provider will pay the wages of a worker who is unable to complete a job due to an injury. By having this service, a worker will not be able to sue you for negligence. You are cutting the risk away at the roots, and your workers will be protected if they are injured on the job.
Aside from this, you should continue to ensure health and safety measures are in place. Obviously if you do make an insurance claim, your premium will rise, and it will still end up costing your business money. Albeit, not as much as a hefty lawsuit. The best way to keep health and safety standards up is by regularly training your employees.
Make them responsible for their own safety. The truth is despite, what the media would have you believe, most workers do not want to suffer an injury in the workplace. They want to avoid a lawsuit as much as you do.