3 Scary Trends that Small Businesses Fear

Topics: Small Business

Some things you can count on every year when Halloween arrives: scary costumes, spooky decorations, and tales of things that go bump in the night. While one of these (or perhaps all) might frighten you, they pale in comparison to some industry trends that could pose a threat to your small business. Let's take a closer look at three of the scariest trends small businesses fear most.

1. Increase in cyber crime

Unfortunately, any small business faces the risk of a data breach or cyber attack. According to the Ponemon Institute's 2017 State of Cybersecurity in Small & Medium-Sized Businesses report, there has been a rise in the number of small businesses suffering a cyber attack: 55% in 2016 to 61% in 2017.

According to cybersecurityventures.com, damages due to cybercrime will cost $6 trillion annually around the globe – more than twice the total calculated in 2015. If your data, important documents or customer information is exposed, recovering from the aftermath could be difficult.

A Cyber Liability Insurance policy from AmTrust can help safeguard your company against loss and damage in a cyber attack. We can show you how you can benefit from a policy, and how to protect your organization from cyber security attacks and other data breach threats. For more information on cyber security, check out blog posts:

2. Trouble in the workplace

An unfortunate trend that has developed recently is an increase in wrongful termination cases. Over the last 20 years, employee lawsuits have risen approximately 400%, with wrongful termination suits increasing more than 260%. Additionally, small and mid-sized businesses (under 500 employees) face a one in five chance of employment charges with an average cost to defend of $125,000, which includes expenses such as attorney’s fees and settlement costs.

Another unfortunate trend is the sharp incline of sexual harassment in the workplace cases. According to MarketStance, nearly $2.2 billion was spent in 2016 by U.S. companies on Employment Practices Liability Insurance (EPLI) policies - specifically to cover issues related to sexual harassment litigation.

While combatting these two issues starts with having policies and training in place, AmTrust can help by offering you our EPLI coverage. Our EPLI product offers comprehensive coverage and provides free risk and employee management services. Find out more here.

3. Property damage

Each year, flooding causes severe damage to many homes and businesses across the U.S. Just last year, NOAA’s National Centers for Environmental Information (NCEI) said the U.S. experienced a historic year of weather and climate damage. The most recent example is the impact of Hurricane Florence, with damages estimated at $17 billion to $22 billion and could go higher, according to Moody's Analytics.

Mother Nature can wreak havoc on your commercial property. Heavy rain and high winds can severely damage or destroy your roof, gutters, roof-mounted equipment, exterior signage and other objects kept outside like display racks or trash cans. Being proactive with your emergency preparedness is a key to helping to avoid, or at the very least, reduce the amount of loss suffered to your commercial property during severe weather.

Check out our commercial property protection section of our website, as well as our other loss control resources. Also, check out our blog post “Create Your Own Hurricane Management Plan” for additional information and tips on preparing your small business for severe weather.

AmTrust can help protect your small business

AmTrust can help ease the fears small businesses face. We take great pride in the portfolio of products we offer, along with the high standards we have set for ourselves in respect to the relationships we have with our customers. We strive to deliver an unmatched level of service with best-in-class insurance products. Discover today how AmTrust can cover your small business insurance needs.

This material is for informational purposes only, summarizes coverages and services that may be available in a policy, and is not legal or business advice. Neither AmTrust Financial Services, Inc. nor any of its subsidiaries or affiliates represents or warrants that the information contained herein is appropriate or suitable for any specific business or legal purpose. Readers seeking resolution of specific questions should consult their business and/or legal advisors.
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