ORLANDO, Fla.—As the backbone of our nation’s economy, small business have an incredibly important role. When you are a business owner, you want to maintain your risks controlled. Keeping your property, goods and all assets insured is one way to keep your risks from emerging.

Fires

Fire is the major cause of property losses by number of claims and value. The oil and gas sector is particularly impacted by fire: of the top 20 insured losses in the industry, fire and/or explosion was the main cause, accounting for eight of the losses – Refinery, Argentina ($800m), Refinery Complex, Canada ($500m), Ethylene Plant, US ($500m), Methanol plant, Oman ($252m), Refinery, UK ($210m), Fertilizer Plant, US ($200m) and Refinery, Saudi Arabia ($180m). Collectively, this equates to $3.94bn, almost half the total loss of the top 20 losses combined.

Storms

The Congressional Budget Office estimates that, on average, hurricane damage is $28 billion a year. Florida contributes 55 percent of that; Texas, 13 percent; and Louisiana, 9 percent. By 2075, the average annual damage costs will increase to $39 billion.

Flooding

Flooding is one of the major risk trends since many of the world’s largest cities are situated on the coast or beside rivers, exposing them to floods and storms. Natural hazards account for three of the top 10 causes of losses, with flooding ranking in seventh position.

Product Defects

We could almost assume that new items produced are of perfect quality. The truth is that product quality is not always perfect and is directly affected by the reliability of the production process used to produce the products, which we may not always control. Consumers in emerging markets are growing more aware of their rights and are increasingly more likely to seek compensation for faulty products.  

Software Defects

Virtually every business in the United States now depends on software for their development. Software errors are estimated to cost $59.5bn annually to the U.S. economy.

Professional Indemnity

Professional indemnity claims are the major cause of losses in the financial lines insurance sector, according to the analyzed portfolio, accounting for 74% of claims by number and 72% by value. 

Bodily Injury

Neglecting to upkeep your premises can be a major risk to your company's bottom line. A bodily injury caused by a defective product can easily turn into a lawsuit just as much an a slip accident due to unsafe conditions at your business, be it an office or a commercial establishment frequented by general public. While employees are typically covered for their injuries by workers compensation, lawsuits filed by visitors who are injured in an accident can be costly.

Machinery Failure

The sectors especially hit by machinery breakdown are energy, marine, property and engineering. In most cases damage to the machinery or complete breakdown is due to crew negligence or heavy weather, e.g. storms. Machinery breakdown is a large driver of commercial property claims in terms of the number generated.

At Garzor Insurance, we have expert agents who are highly trained to help you identify the major causes of risk in your particular business operation and help you find accurate insurance solutions to keep your business, and your finances — afloat.

For personal insurance solutions check out our sister company Orlando Insurance Center