Business owners have enough to worry about besides uncontrollable threats that prevent success.
Business liability insurance is one way to help prepare for and protect your business from the biggest risks you face, according to our partners at Trusted Choice.
Top Business Risks in 2016
A recent study done by Allianz concluded that the following three risks are considered by business owners to be among the most significant business risks for 2016:
You can protect your business from these threats with a variety of business insurance policies, including business liability insuranceâ€”specifically cyber liability insurance and employment practices liability insurance.
Protect Against the Top 3 Risks with Liability Insurance for Your Business
Liability claims are among the most expensive business insurance claims. Without appropriate liability coverage, one lawsuit or unexpected event can force you to close your doors. Business liability insurance can help you protect your business from the 3 top risks named in the survey.
In order to protect your business from cyber incidents, PR disasters, and the impact of new technologies, you need:
- General business liability insurance also known as Commercial general liability insurance (CGL) is the most basic form of business liability insurance.
- General liability insurance definition: A contract that protects a business against claims due to injuries, accidents, and negligence. It can protect your business from costs related to bodily injury, property damage, medical expenses, legal costs, judgments, and personal injury claims such as libel and slander.
- To protect your business from more specific types of emerging threats, you may need to purchase additional liability policies.
- Cyber liability insurance is important for any business that uses electronic information. If you are sued because of a data breach or other cybercrime, your business could be responsible for paying legal fees, court-ordered judgments or settlements, and any other court-mandated costs. Your general liability policy may not appropriately cover these costs.
- Cyber liability claims are also extremely costly in terms of fines, public relations costs, and other expenses you must pay on behalf of your affected customers.
- While cyber liability policies continue to evolve because of the ever-changing nature of the threats, most cyber liability insurance policies protect your business assets by covering your legal defense costs, as well as any settlements and judgments that you are ordered to pay.
- Cyber liability insurance also helps businesses repair their reputations and damage to their brands in these situations by providing coverage for PR and other related expenses.
- Employment practices liability insurance (EPLI) is another form of liability insurance for your business that is becoming more important as technology changes.
- EPLI provides protection from claims and lawsuits brought against a business, its officers or directors, or its employees and managers for discrimination, wrongful termination, sexual harassment, and other employment-related allegations.
- In addition, EPLI covers claims related to employee benefits mismanagement. In todayâ€™s interconnected society, itâ€™s not hard to imagine a scenario in which new technology makes it possible for an employeeâ€™s benefits enrollment or personal health information to be made public inadvertently. EPLI insurance would protect you in such a circumstance.
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