5 Top Risks In A Business; Cyber Is A Big One

While risks in a business can range in size and potential impact, many can lead to serious financial consequences. There are many risks in a business. Below are five that can do the most damage:


Pennsylvanians can be grateful for many things, including a great abundance of scenic rivers and streams. In fact, Pennsylvania ranks in the Top 10 in the number of rivers and streams in the United States. As a result, though, businesses located in the Keystone State should be alert to flooding when considering risks in a business.

Although flood and sewer back-up is excluded under most standard commercial property policies, both coverages can be added by endorsement. Depending on the flood zone identified on the property, coverage is available on a primary basis through a number of carriers.

In instances where property is located within a flood zone, coverage is often limited to what is available through the National Flood Insurance Program and a few private insurers. When used in coordination with private insurance, NFIP coverage can mitigate or “buy down” large deductibles associated with commercial flood policies or provide additional coverage.

Workplace Deaths and Injuries

According to the US Bureau of Labor Statistics, an average number of 4,500 annual workplace fatalities have occurred during the past several years. In addition to exerting enormous personal and financial losses on affected workers, their families and businesses, workplace injuries and fatalities also affect a firm’s Workers’ Compensation Insurance costs. Because KMRD Partners understands the many issues that are part of the premium determination for Workers’ Compensation coverage, beginning with loss prevention and claims management, we encourage any firm to contact one of our skilled representatives.

Business Interruption and Supply Chain Disruption

Your firm should consider transferring risk to Contingent Business Interruption Insurance coverage if you answer “yes” to any of the following questions: Do any of your operations rely heavily on a single or select group of third party providers of goods or services? Would a long-term computer outage disrupt your company’s ability to maintain normal business operations? Would losing a key source of raw material or component parts from a supplier interrupt your business operations? Would a transportation disruption affect your business?

Business Auto

Commercial vehicle insurance provides coverages to your organization such as bodily injury liability coverage, property damage, liability coverage, collision coverage, comprehensive physical damage coverage, medical payments (or personal injury protection) and uninsured motorist coverage.

Cyber Risk

Like the federal debt, risks in a business from data breaches and other malicious cyber acts just keeps on growing. Did you know:

  • The average cost of a US data breach is $5,850,000
  • The average cost per stolen record in the US is $201
  • The likelihood of a data breach is 22% when you have more than 10,000 records
  • In 2014 a total of 15,435 vulnerabilities were identified in 3,870 applications from over 500 vendors

Want to Lower Your Cyber Risk and Get 20% Off Your Cyber Risk Insurance Premium?

KMRD Partners and COMPASS have partnered with a global leader in cyber risk insurance to offer clients up to 20% off their cyber insurance premium. Insureds will derive the following benefits:

  • 5% premium policy discount after initial vulnerability assessment
  • An additional 15% premium discount after any critical network vulnerabilities are remediated
  • A.M. Best rated A, VII carrier. They are the industry leader in cyber insurance coverage
  • Proactively identify and address potential vulnerabilities at a pre-negotiated discounted flat rate

Our cyber assessment will show you the critical vulnerabilities within your network, organization, procedures, and policies.

Request AssessmentSee Cyber Risk Insurance Program Get the PDF Overview

Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from a KMRD risk professional before taking any action.


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