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5 Important Types of Insurance for Businesses during the Pandemic

5 Important Types of Insurance for Businesses during the Pandemic

The COVID-19 pandemic has brought many uncertainties to the attention of business leaders around the world, and nowadays companies are struggling to minimize financial losses and stay afloat. While there are many tactics you can use to make 2021 your best business year yet, it’s important to remember that updating your coverage and getting the right insurance is one of the most powerful solutions at your disposal.

Without the right coverage to protect you against various business interruptions and unpleasant scenarios, you can’t hope to build financial stability and avoid financial pitfalls throughout the year. That’s why you need to stay on top of the biggest insurance trends and consider adding coverage to your business.

Fortunately, you can nowadays find tailored policies and coverage options that address your unique needs and support your company’s goals. Working closely with your insurer will help you craft the perfect plan and choose the best coverage options for you. With that in mind, let’s take a look at the most important types of insurance you should get during the pandemic.

Commercial General Liability Insurance

As the name implies, general liability insurance is the primary type of insurance you should get as a business owner. Whether you’re dealing with a pandemic or if it’s just business as usual, having general liability insurance will cover your company in various different cases.

The type of coverage you can expect to get with this policy will be:

  • In case of a slip and fall at a client’s location
  • Product liability
  • Advertising errors
  • Damage to a client’s property
  • Completed operations
  • Medical expenses to a customer
  • Personal injury

Given the wide coverage that this policy provides, it can come in handy in various scenarios. The commercial general liability insurance is the foundation every company needs to have during a pandemic, but in normal working conditions as well.

Needless to say, the cost of this insurance policy will always be lower than the cost of a potential lawsuit, so make sure to get this coverage as soon as you can. That said, don’t settle for any offer that comes your way, but make sure to do your research to find a reliable insurer that offers a fair and decent premium.

Directors and Officers Liability

There’s a lot that can go wrong during the pandemic, and your company can suffer in many ways, particularly due to poor management and the subpar handling of the whole situation. If the shareholders in your company conclude that the directors and officers in your business handled the COVID-19 crisis poorly in any way, then your directors and officers might be subject to lawsuits.

This is why having the directors and officers liability coverage is so important during the pandemic, because it will cover the expenses of legal action and help increase financial efficiency for your business. That said, you should always be aware that different insurers approach this coverage in different ways, and that some exclusions may apply based on the conduct of your directors and officers. Make sure that this policy covers the majority of scenarios and is able to protect your key staff as well as your business.

Workers’ Compensation Insurance

Another crucial type of coverage you need to have during the pandemic, and in general, is workers’ compensation. These policies ensure adequate coverage in case of injuries on the job, but also if the employee is unable to work because of a work-related issue in general. If the illness or injury occurred at work, then this coverage should apply.

Again, it’s important that you work with a trusted insurance company to make sure that the policy covers COVID-19-related incidents and illnesses, which is particularly important for medical practices. While employees in different industries might have a difficult time proving that their injury or illness occurred as a direct result of COVID-19, in the medical industry this is a common occurrence because of the nature of their work environment.

That said, regardless of the industry you’re in, having workers’ insurance during the pandemic is paramount to legal and financial security.

Cyber Insurance

Last but not least, in the increasingly dangerous online world where corporate data stores are under constant threat of cyberattacks, you need to have a cyber insurance policy. Now that more and more people are purchasing products and services online, business leaders are forced to adopt more stringent cybersecurity measures to protect their brand’s and their customers.

That said, there’s no telling when a data breach might occur or when you might experience an abrupt system shutdown. When that happens, you want to minimize any financial losses by having a cyber insurance policy that covers your business against these types of operational interruptions.

Wrapping Up

The COVID-19 pandemic is far from over, and the best way to protect your business in 2021 is to get the right coverage. With these insurance policies at your side, you will have no problem ensuring financial stability and business continuity in 2021 and beyond.

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by Elaine Bennett // Elaine Bennett is a digital marketing specialist focused on helping startups and small businesses grow. Besides that, she's a regular contributor for Bizzmark Blog and writes hands-on articles about business and marketing, as it allows her to reach even more people and help them on their business journey.

Opinions expressed by contributors are their own.