How do you mitigate the risks your business faces including business insurance options?
As a business, you know that the one certain thing in business is uncertainty. There are several risks your enterprise faces and 2020 is a prime example of just how unforeseen events can take your business to the cleaners.
But risks aren’t going to prevent you from starting a business. You do what every smart entrepreneur does: find ways to mitigate or manage the risks.
An ideal way to do that? Purchase business insurance.
Unfortunately, so many business owners don’t quite understand how to best protect their businesses with insurance. Most owners often purchase a blanket policy, usually general liability insurance, and leave it that.
You need to purchase various types of commercial insurance. Read on to learn about some of the frequently overlooked policies.
Business Interruption Insurance
As a business owner, you certainly know that your business could face interruptions from time to time. Yet, you will rarely bother to purchase business interruption insurance.
Perhaps the reason you overlook this policy is you believe an interruption will only last a couple of hours: a few days at worst. This is indeed the case with most interruptions, but the worst can always happen.
You have seen how the COVID-19 pandemic has resulted in shutdowns that lasted several months. This is the kind of business interruption that can bring your business down to its knees.
With business interruption insurance, the insurer will compensate you for the losses you incur when there’s an interruption in your business’s daily operations.
About 50 percent of small businesses in the United States don’t have cyber insurance.
If your business is in this group, that’s fine – as long as you don’t have any kind of digital operations. But if you’ve got a business website, social media pages, or use other digital systems in your operations, you need cyber insurance.
Here’s the thing: over 40 percent of cyberattacks target small businesses. Hackers know small enterprises have their guard down and are easy to penetrate.
A cyber attack can interrupt your operations, causing massive system outages. Hackers can also steal confidential customer information and leak it online, exposing your business to a major liability.
With cybersecurity insurance, you’ll be compensated for the losses you’ll incur as a result of a breach. If regulator fines or lawsuits come your way, this insurance policy will help you settle what you owe.
Flood insurance is for homeowners, right?
Well, that’s correct. But it’s also for commercial property owners.
Floods don’t discriminate. When they strike your location, they will destroy both residential and commercial properties along its path.
And it’s not just floods that can wreak havoc on your property. Plumbing leaks can also cause destruction.
This is why you need to reach out to someone and get commercial flood insurance. In case of floods or water damage, you’ll be glad you bought the policy.
Don’t Overlook These Business Insurance Policies
It’s understandable that you might want to overlook purchasing adequate business insurance if you’re on a shoestring budget. However, you should prioritize insurance. Being insured can make the difference between success and failure in business.
You now know the policies you shouldn’t overlook. Stay tuned to our blog for more business advice and insights.