Most small business owners worry about the obvious risks—customer injuries, property damage, or lawsuits. But what about the hidden threats lurking in everyday operations? These overlooked liabilities can lead to devastating financial losses if you’re not properly insured.
After analyzing hundreds of small business claims, I’ve identified 10 commonly ignored risks that catch entrepreneurs off guard. Some might surprise you—but knowing about them could save your business.
1. Volunteer Injuries
The Risk: Even unpaid volunteers can sue if injured while helping your business.
Real Case: A nonprofit faced a $75,000 claim when a volunteer fell during a fundraising event.
Fix: Add volunteer coverage to your general liability policy.
2. Employee Social Media Posts
The Risk: Workers’ personal posts about your business could lead to libel claims.
2024 Stat: 28% of employment practices claims now involve social media.
Fix: Update your employee handbook and consider employment practices liability insurance (EPLI).
3. Third-Party Data Breaches
The Risk: Your vendors’ poor cybersecurity exposes your customers’ data.
Shocking Fact: 60% of breaches originate through third parties.
Fix: Require vendors to carry cyber liability insurance and add it to your own policy.
4. Food Contamination (Even for Non-Restaurants)
The Risk: Office potlucks or client gift baskets causing foodborne illness.
Actual Claim: A marketing firm paid $30,000 when a client got sick from holiday cookies.
Fix: Add product liability coverage regardless of your industry.
5. Tenant Liability
The Risk: Renting? You could be liable for building issues you didn’t cause.
Example: A boutique was sued when a ceiling collapsed in their leased space.
Fix: Ensure your policy covers “tenant legal liability.”
6. Website Accessibility Lawsuits
The Risk: ADA compliance claims for non-accessible websites are soaring.
2024 Trend: 12% increase in digital accessibility lawsuits.
Fix: Conduct an accessibility audit and consider web liability coverage.
7. Employee Off-Clock Accidents
The Risk: Workers injured while running business errands off-hours.
Common Scenario: An employee gets in a car accident while depositing cash.
Fix: Clarify work hours in policies and review workers’ comp coverage.
8. Emotional Distress Claims
The Risk: Customers or employees suing for stress/anxiety (no physical injury needed).
Growing Threat: These claims have doubled since 2020.
Fix: Ensure your general liability policy includes personal injury coverage.
9. Pandemic-Related Claims
The Risk: COVID-19 isn’t gone—neither are related lawsuits.
Current Reality: 1 in 500 businesses still face pandemic liability claims.
Fix: Review policy exclusions and consider communicable disease coverage.
10. AI-Generated Content Issues
The Risk: Copyright infringement from AI tools you or employees use.
Emerging Threat: 17% of businesses using AI have faced legal notices.
Fix: Update acceptable use policies and review professional liability coverage.
How to Protect Your Business
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Conduct a risk audit (look beyond the obvious)
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Review policy exclusions with your agent
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Consider umbrella insurance for extra protection
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Document everything (policies, training, safety measures)
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Final Thought: Don’t Learn About These Risks the Hard Way
Small businesses face enough challenges without unexpected liability bombshells. By addressing these often-overlooked risks now, you’ll sleep better knowing you’re truly protected.
Take Action Today:
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Schedule an insurance review this month
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Share this list with your business network
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Bookmark this article to revisit in 6 months
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For more essential business protection tips, visit Akolaybook News.