7 Liability Risk Examples for Common Types of Businesses – Legal News
and is increasing. These are mostly small businesses who have inadequate cybersecurity procedures that are in place. Cybercriminals tend to be attracted by small companies that are not equipped with cybersecurity measures. Cyberattacks can cause more harm than an issue. They can cause you to go out of business. Did you know that 60% of small businesses close down in six months after an attack on their computer?
Because of the severity of cyber attacks, plenty of firms take out cyber liability insurance. Cyber liability insurance helps businesses recover the financial loss resulting in data breaches and cyberattacks. Cyberattacks pose more severe problems for businesses handling sensitive data. This includes credit card numbers as well as work that is done on the cloud. The hackers could also harm companies in the field of cybersecurity. Cybercriminals usually attack health and financial services and retail companies. But, any company can be a victim to cybercriminals.
5. Directors as well as Officers” Liability Risk
Businesses can also affect their operations by decisions made in the course of roles and responsibilities of directors and officers. It is the reason companies have directors’ and officers’ insurance to protect their personnel from claims in litigation, liability, and. It can cost a lot to protect against lawsuits that can arise due to the decision of a top company executive. Apart from the legal cost businesses that don’t have insurance aren’t successful in recruiting high-quality managerial talent.
6. Environmental Impairment Liability
Another issue that may affect different kinds of businesses is the issue of environmental impairment. The issue of environmental impairment can lead to penalties that can cause financial hardship for a business. It could be the result of either the present or previous processes of a firm.
The majority of the time, these penalties come as a result for claims for cleanup, injury to the body or property damage due to environmental pollution brought on by the company’s operations. The damage caused by business’s activities can only be partially covered.