clock June 8, 2021 comments No Comments flowchart Business InsuranceOur Blog tag Liability
a small business owner hanging an "open" sign on their front door.

Small business owners often think that a simple business owner’s policy offers enough protection. However, a single insurance policy can’t address all risks.

Here are just a few critical and often overlooked small business coverages your company may need.

Cyber Insurance

According to NetDiligence’s Cyber Claims Study 2020, 96 percent of all cyber-related claims were made by SMEs, not large corporations. These companies have fewer resources and consequently much of their IT is handled by third-party providers which increases cyber liability risk.

The number one cause of loss for SMEs is ransomware and ransoms. Ransoms average $175K and each incident around $275K.

However, the Hiscox Cyber Readiness Report 2021 found only 27 percent of businesses have standalone cyber insurance policies, but most of these are big companies. Clearly, this is a threat no small business can ignore.

Employment Practices Liability Insurance

Business owners may not realize that the number of employee claims against employers is constantly rising and small companies aren’t immune.

Employment practices liability insurance can protect your company against costly employee lawsuits claiming discrimination, sexual harassment, wrongful termination, and more.

This coverage may be available as an endorsement on a BOP, or as a standalone policy.

Commercial Auto Insurance

If your employees use their own vehicles for company business, you may want to request non-owned insurance coverage. Company-owned vehicles must be protected with commercial auto insurance.

Flood Insurance

The only insurance policy that protects your business property against flood damage is a flood insurance policy. This coverage is available from the National Flood Insurance Program (NFIP) which can be accessed through your agent.

Even if your business is a low or medium risk zone, flooding can occur at any time and any where. About 25 percent of all claims are from these areas and climate change continues to increase risks.

Business Interruption Insurance

A business owner’s policy protects you against a range of perils. However, when you must close due a disaster such as a severe weather event or fire, business interruption insurance protects against income loss.  It can also help you cover expenses such as payroll, your loan, rent, or mortgage payments, and relocation costs.

Professional Liability Insurance

Professional liability insurance should strongly be considered for any company that provides a service. It can protect against the costs associated with lawsuits claiming errors, omissions, incomplete work, breach of contract, negligence, copyright violations, and more.

There is also specific coverage available for business owners, directors, officers, and management to handle fiduciary liability claims, extortion, ransom, and other threats.

Tailored Coverage is Vital

Discuss the details of your business with one of our professional insurance agents. We will review your existing coverage and provide options of any additional coverage you request.

Remember, we work with you and want to help you protect your interests by offering options based on the information you provide. We use our expertise and industry knowledge to help your company access a variety of coverage options so you can choose the right balance of coverage and cost for your business.  

Don’t leave your company at risk.  Take the first step in contacting us to arrange a meeting for a business insurance review today. 

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