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Maximizing sales is crucial for retailers, but protecting profits requires mitigating risks. For small retailers, a single emergency or oversight can be enough to wipe out profit margins.

The key is being proactive, whether you run an online shop or brick-and-mortar store.

The smart approach is being proactive about potential hazards, whether you run an e-commerce site or physical store. Here are 5 key risks to address:

1. Data Breach

Technology has benefited retail, but cyber threats persist. A few ways you can safeguard your business:

• Make sure you have the most up-to-date firewall and security systems.
• Consider cyber liability insurance. It may be a wise investment and help limit the damage of a breach.
• Employ simple, preventative measures. For a brick and mortar, a password-protected wifi network can save you and your customers’ identities from being compromised.

2. Injury

Accidents involving customers, delivery personnel, and staff are always possible. Reduce liability with general liability insurance for customer/visitor injuries and workers' compensation for employee injuries. Bundle policies to save costs.

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3. Inventory

Whether brick and mortar or e-commerce, Your inventory is your livelihood, so protect it carefully. Cover inventory kept on-site through property insurance. For off-site storage, vet the security, environment, and space before moving goods.

Once you feel comfortable with the location, read through your property insurance plan to ensure that it includes protection for multiple locations and transport.

4. Manufacturing

Even if your retail business sells custom made product, you will still be reliant on one or more manufacturers. In the event of a machine malfunction or shipping error, you will want a second source on hand to fulfill your needs. If that is not a possibility, consider business interruption coverage. Freight and ocean cargo coverage is also option to offset the loss of inventory while in transit and transportation costs.

As a business owner, you need to play risk manager — identifying, prioritizing, and transferring your biggest exposures. Properly insuring against key risks helps protect your profits and future.

Stay ahead of the game by subscribing to the WorkCompOne blog, for insurance and risk management advice by and for small businesses.