Protection from Common Business Risks

There are many benefits associated with owning your own business, but if you are a proud business owner, we are sure that you are aware that it also has its disadvantages and risks. To protect your business, it is wise to evaluate potential risks and develop plans to safeguard against such risks. It is also necessary to have a proper commercial or business insurance policy in place to cover you against liability or damages. 

Many people dream of owning their own company, and as a small business ourselves, we appreciate the effort you put in every day. We don’t want you to have to shut your doors forever, so we’ve compiled a list of typical business risks and methods to protect yourself as a company owner. Don’t let liability ruin your company.

Employee Liability as a Business Risk 

First and foremost, having Employment Practices Liability Insurance (EPLI) protects you against being sued by former or present workers.

Sadly, many business owners lack this coverage, but they should since litigation may strike any size company. Another employee sued Ford for sexual harassment, and received $16.8 million from the business and his former bosses.

How Else Can EPLI Safeguard Your Company?

Any kind of business occurrence may pose common business risks. Whether it’s a Christmas party or a corporate picnic, accidents may happen whether it’s on or off-site. An employee may sue you and your firm for failing to safeguard them even though you have a no harassment policy and a well-defined employee handbook. 

An EPLI policy will protect you and pay legal costs, so ask one of our certified insurance brokers about adding it to your existing policy.

Alcohol Liability as a Business Risk 

In terms of business-hosted parties, drinking frequently raises the risk of harassment and antagonism. When serving alcohol at a business function, be sure to add Host Liquor Liability Insurance to your Commercial General Liability Insurance. You don’t want to be held responsible for drunken workers’ mistakes.

Workplace Injury Liability as a Business Risk 

Workplace injuries are another frequent business risk. An employer is responsible if an employee is hurt or ill on the job. Workers Compensation Insurance is needed in Connecticut for companies with one or more workers. 

Business Interruption as a Business Risk

We often find that business owners neglect to consider what would happen to their business if disaster strikes. For example, how would you continue normal operations if an earthquake destroys your business premises? If the unthinkable ever happens, it is certainly better to have a plan in place. 

We recommend looking into business interruption insurance, as it offers coverage against certain expenses resulting from temporary business closure or relocation as a result of certain events. 


Owning a company is part of the American Dream; just make sure you know how to protect yourself. Please contact our trustworthy and knowledgeable team at Paradiso Insurance if you have any concerns regarding commercial insurance for your company.


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