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Small Business and Commercial Crime Insurance

commercial crime insurance

It can be difficult managing a small business these days, so when your business is really doing well you need to protect your assets in order to continue being successful. As customer satisfaction soars and sales increase you may determine you need to expand your staff in order to continue to provide the type of quality service that has gotten you this far.

Unfortunately you begin to notice that the inventory is not adding up against the amount of sales that have taken place. In addition to this, your petty cash receipts seem to have become smaller since the new hires have come on board. It’s pretty clear that someone within your organization has taken to stealing from the very person that provided him or her with an opportunity to make a decent wage. Commercial crime insurance is just the policy needed to deal with circumstances of this nature.

Risk management can help to reduce losses

It’s hurtful to think that someone you’ve entrusted to take part in helping your business grow would take unfair advantage of you. But this is only part of the problem. Shoplifters, burglars, and robbers can all play a part in decimating the very company you’ve spent your time trying to build up into a successful venture. Insurance will certainly aid you in compensating for any losses that you may experience, but it makes equal sense to also implement a comprehensive risk management program.

An effective risk management program helps owners and managers prepare for these types of risks and concerns before any actual losses occur, and that preparation can be the difference between having a profitable or unprofitable business.

How to manage risk

Just a little bit of risk management can yield a greater return on investment than using that same time pursuing new business because good risk management addresses important factors, such as employees, materials, operations, facilities, and other processes in place.

Take a good look at the areas where your business faces vulnerability, and then develop a program to deal with the things that are most likely to go wrong in each one of these areas. It’s important to take steps to prevent potential problems. Keep accurate records of your inventory and beef up security, installing cameras, locks and other safety features geared to reduce your exposure to crime. Commercial crime insurance will be a valuable asset to have, but prevention is still worth a pound of cure.