Business risk is the possibility that an adverse or unexpected event may potentially interfere with a business's ability to function at its regular capacity. It could also be an event in which an insurance claim may be submitted.

The following list contains threats that may interfere with regular business operations and leave critical businesses vulnerable.

• Natural disasters including hurricanes, flooding, and tornadoes
• Other disasters, such as fires, chemical explosions, industrial accidents and chemical/hazardous material spills
• Terrorism, bomb threats, vandalism, threats to reputation (off- or online), protests, civil unrest/riots, robbery and armed intruders
• Cyber attacks such as denial of service attacks, computer viruses, worms, Trojan horses, cyberwarfare and cyberterrorism
• Pandemics, such as the COVID-19 pandemic
• Supply chain disruption
• Human error or misjudgement, such as carelessness, misconduct, and theft

Travelers Canada recommends considering the following when determining assessment risk:

• Historical – What has happened in your community, to your facility or neighbourhood before?
• Geographic – What is your proximity to flood plains, major airports, etc.? 
• Physical – What is it about the design or construction of your facility/office that might make your business particularly susceptible to a certain event?
• Organizational – What is it about your employee, operational or technological infrastructure that might make your business particularly susceptible to a certain event?
• Regulatory – Is your business/industry required or mandated to prepare for any hazards?

 You may also want to consider Business Interruption insurance.

What is business interruption coverage?

Business interruption insurance covers ongoing expenses, staff wages, the profit you would have lost, and it pays to get you up and running again.
Some of the applicable situations would be if:

• Your business is seriously damaged by a fire
• A natural disaster levels your office
• An explosion is caused by pressure vessels or gas lines.

If you have a question about Business Interruption insurance or any aspect of your commercial or business insurance reach out to us. 

Sources

https://mmlt.ca/protecting-nature/our-protected-properties/cliffland/?