High-profile cyber risk on companies such as Target and Sears has raised awareness of the growing threat of cybercrime. Recent surveys conducted by the Small Business Authority, Symantec, Kaspersky Lab, and the National Cybersecurity Alliance suggest that many small business owners are still operating under a false sense of cybersecurity. The statistics of these studies are grim. The vast majority of U.S. small businesses lack a formal Internet security policy for employees. Also, it is about a half have even rudimentary cybersecurity measures in place. Furthermore, only about a quarter of small business owners have had an outside party test their systems to ensure they are hacker-proof. Also, nearly 40 percent do not have their data backed up in more than one location.
Optimism is the fuel that drives the entrepreneurial spirit, so it isn’t surprising that most small business owners consider themselves optimists. Too much optimism, however, can get a small business owner into trouble. A business plan built solely on the “best-case scenario” is like a house of cards, one gust of wind—or fire or wrongful termination lawsuit—and the entire business can come crashing down. That’s why smart business owners temper their innate optimism with a healthy dose of reality. In other words, they learn to manage risk. The first step in implementing a comprehensive risk management plan is identifying potential risks. To help you get started, we have provided a list of the top 10 threats facing small business owners. As you read through the list, consider the unique risks facing your business and ask yourself whether those risks are being managed effectively:
Liquor Liability Insurance protects any business that sells or serves alcoholic beverages. Serving alcohol is a common practice for restaurants, bars, catering companies, entertainment venues, and similar establishments. While providing a wide array of beverage options is important. Serving alcohol, in particular, can create a variety of risks for business owners. For instance, if a patron of your business becomes intoxicated and injures a third party or causes property damage. Then you could be held liable for the damages. In order to protect your business from serious financial and reputational losses, it’s important to consider purchasing liquor liability insurance.