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With 75 percent of businesses underinsured and 40 percent of businesses having absolutely no insurance at all, it’s no wonder that there’s many commercial lines insurance programs that small business owners aren’t even aware of. Since almost half of businesses have no insurance, that means almost half of small business owners aren’t aware of the types of coverage that they can get, and the types that they need.
A recent survey found that almost one in three small business owners has had to deal with an event that led to an insurance claim since 2016. This means that while you might not think you need insurance, it’s probably a good idea to purchase it. Check out this list of commercial lines coverages many businesses don’t think to get, and communicate their importance to your clients.
Business Interruption Insurance
If something happens that causes you to shut down your business temporarily, then the business should have the insurance to cover that period of time. Some examples of things that can shut down a business include fires, floods, building collapse, or theft, according to Business News Daily. Business interruption insurance covers businesses while they are out of commission, meaning that they will be compensated while not being fully operational.
Data breaches happen, and it’s imperative to be prepared. This is one of the most important commercial lines insurance programs that a business owner should adopt. With the average cost of cyber crime topping $17.36 million, according to Statista, it’s clear that business owners small and large should be prepared for the worst case scenario. Most small business are not prepared for cyber data breaches, with no team in place to tackle any future situations. Make sure that you underscore the threat level to your commercial clients, especially the fact that business size and industry have no bearing on cyber risk.
Employment Practices Liability Insurance
Any business should be covered for external risks. But what happens if someone within the company sues? Businesses can be covered for that too, and it’s important that they understand that employment practices claims (such as sexual harassment or hiring discrimination) would not be covered by a traditional professional liability insurance policy. If a disgruntled employee or past employee sues for something that happened while on the job, having employment practices liability insurance will completely back up the business.
About Mavon Insurance
At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.