The Graham Company recently announced the results from its 2015 Business Risk Survey. We surveyed 300 senior business professionals across the country to learn what’s keeping them up at night. In addition to finding out that nearly three quarters of respondents are concerned about healthcare costs and cyber security risks, we learned that business leaders have additional concerns: professional liability and legal liability. Yet, they aren’t doing enough to protect their companies from these risks.
Professional Liability Risk: Employee Errors & Mistakes
According to our survey data, nearly 70% of all respondents expressed concern over employee errors and mistakes causing damage to their business operations. Yet, only 56% of respondents have Professional Liability Insurance to deal with these kinds of issues.
Legal Liability Risk: Potential Lawsuits
Our survey also revealed that more than half of respondents demonstrated concern over legal liability and potential lawsuits. And while 78% of respondents said they are prepared to deal with these legal matters, they aren’t implementing the proper safeguards to mitigate the risk of these potential threats.
Perception vs. Reality
Why are business leaders concerned about professional and legal liability issues yet they don’t realize they’re not taking the necessary steps to mitigate these risks? It’s a case of perception versus reality. They might think certain policies are being implemented but they’re not. Or they may simply not know that they aren’t doing enough to protect their company. Every situation is uniquely different.
Knowing that employee errors and mistakes, as well as lawsuits, are a real part of the everyday business world, it’s imperative that companies take the necessary precautions to protect their operations. If they don’t, the impact of these incidents could be crippling. If you’re in a situation like this, reach out to your insurance broker for help. He or she will assist you with identifying potential risk factors so you can implement a more proactive and customized approach to risk management.
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