In our world today there are a variety of threats to businesses especially small businesses. Top of everybody’s mind is COVID, which is typically not a risk insurers will cover at least in the traditional sense. However, there are other risks that business owners think little of until it is too late.
There are three areas of coverage that most businessses need but tend to be under covered in. The first is cyber liability coverage, secondly, employment practice liability coverage, and lastly, key person insurance. There are others that are more industry specific and I will touch on those in the future.
Everyone knows that cyber attack is a ever present threat. The nightly news regularly has spots about large corporations that have gotten breached by cyber criminals. Most small business owners seem to think it only affects major chains, but the reality is major chains are the only ones that live to tell about it. As a small business owner the smallest breach can cost tens of thousands to correct and repair. The process is very complex in addition to being expensive and drives many out of business. If a company has a brick and mortar, does e-commerce, or takes credit cards at all they need cyber protection.
Employment practice liability is applicable to anyone who has W-2 employees. We live in a very litigious society and even the best of us make mistakes in managing our staff. Employment practice liability protects the owner from lawsuits arising out of accusations of wrongful terminatilon or other discriminitory conduct. Beware however, that in this time of COVID insurers are very wary of covering businesses for this particularly because so many have been laid off and hence lawsuits for wrongful termination are more likely
Key person insurance is the best way to cover your business from loss of certain key employees due to disability or death. This insurance is not subject to the same limitations that other coverages have when dealing with pandemics. If you have key person insurance in place, then it wouldn’t matter what disabled or killed the employee, the fact that they could no longer work triggers a payout to the business to replace that individual. This insurance is incredibly powerful as it can help businesses of all sizes and varieties.
To ensure these coverages are on your policy you should consult your agent. If you need an agent, I am happy to review your policy with y0u. Simply fill out the form below and my office will be in touch.