The size of the company, type of industry, type of organizational structure, capitalization, geographical area, management team, degree of experience and expertise in the targeted business, capitalization, competitive environment and many other factors can have a bearing on the risk environment for the company. The business owners should address such issues in their business and strategic analyses of the company’s situation. A few of the potential operational risks are as follows:

1. Risk of Property Damage

2. Risk of Inventory Loss or Damage (through spoilage, etc.)

3.Risk of Loss from Employee Theft

4. Risk from Various Liabilities (including injuries to customers or to others)

5.Risk from Errors and Omissions Liabilities

6.Business interruption Risks

Other risks involve the business’s employees and may call for optional or mandatory insurance coverage:

1. Worker’s compensation

2. Unemployment

3. Employee benefits

Some additional risks relate to the owners and their ability to continue the business in the event of serious losses

1. Risk of death of an owner or key employee

2. Risk of disability of an owner or key employee.

Last updated on June 17, 2011 by Fowler & Associates Insurance Services, LLC.