• 3 Insurance Coverages Business Owners Should Consider

Photo of business owners reviewing insurance information on computers

Every year, your business likely goes through many ups and downs and faces constantly evolving risks. It’s important to make sure your business insurance solutions are keeping up with these changes.

Morse, of course, is dedicated to helping protect the business you’re working hard to build so it can thrive for the long term. That’s why we want you to know about three crucial business insurance coverages that may provide you with a stronger wall of defense when confronted with some of today’s most common small business threats.

Better safeguard your small business with these three commercial insurance coverages:

1. Cyber Liability Insurance

Every organization, no matter its size, needs to be on guard for a cyberattack. There are many reasons why a hacker may target your business, including to gain access to your business and personal financial accounts, customer and employee data, or even intellectual property. Regardless of a hacker’s ultimate goal, a cyber breach can completely disrupt your operations and, adding insult to injury, negatively impact your company’s reputation. Recovering from these types of events is often costly, and a business owner, especially of a small or medium-sized company, can quickly become overwhelmed with the legal and financial responsibilities associated with a hack. In a nutshell, if your business uses technology in any way, shape, or form, securing Cyber Liability Insurance should be at the top of your to-do list. By having this critical coverage, you may get help responding to and recovering from an array of today’s most common cybercrimes against businesses, from ransomware or phishing attacks to a data breach. In the aftermath of a cyber event, this policy typically helps pay for expenses related to:

  • Notifying anyone potentially affected by the incident, including employees, customers, and partners.
  • Hiring IT security and forensic experts to stop and contain the attack.
  • Reimbursing others for their financial losses or identity theft costs.
  • Investing in credit monitoring systems and identity theft restoration services.
  • Fines and penalties resulting from a regulatory investigation of the attack.
  • Legal counsel and other legal fees.
  • Public relations, advertising, crisis communications, and other outreach efforts aimed at rebuilding your reputation.

2. Employment Practices Liability Insurance (EPLI)

With the great team of employees you have in place, it’s probably difficult to imagine a situation occurring that would lead one of your staff to take legal action against you and your company. However, every business owner needs to be aware of this risk—and protected against it. Employee lawsuits can come from a former, current, or even potential employee, but regardless of the source, circumstances, or whether the claim has any merit, putting up a good defense against it almost always requires a significant financial outlay. If a business owner has EPLI, they may get help covering many lawsuit-related costs, like lawyers’ fees and court judgments and settlements resulting from the suit. This coverage typically provides financial protection against many kinds of employee lawsuits, including claims of:

  • Breach of employment contract.
  • Discrimination.
  • Failure to employ or promote.
  • Mismanagement of employee benefit plans.
  • Negligent evaluation.
  • Sexual harassment.
  • Wrongful discipline.
  • Wrongful termination.

3. Commercial Umbrella Insurance

There is almost no business out there that should be without General Liability Insurance. This policy provides broad protection against a variety of claims, including accidental injuries and property damage, that may result from your company’s products, services, or operations. However, this insurance coverage comes with liability limits, which can quickly be reached and exceeded if a claim has been filed against you, your business, or an employee. Once you’ve tapped the limits of your General Liability policy, any remaining costs that need to be paid, including legal expenses, medical bills, repairs to someone else’s property, or court judgments and settlements, may end up being your responsibility—unless, of course, you have Commercial Umbrella Insurance. By investing in this coverage, you may get additional liability protection, from $1 million to $15 million, that generally kicks in after your General Liability policy coverage has been exhausted. It may help you cover the following types of expenses, potentially saving you hundreds of thousands (or even millions) of dollars:

  • Legal defense costs, including attorneys’ fees, court costs, and expert witness fees, as well as damages awarded to claimants.
  • Repairs of or replacements for someone else’s property that has been damaged by your business, whether by accident, negligence, or another covered incident.
  • Medical expenses, rehabilitation costs, and potential legal fees associated with an injury to a customer or other third party that happens on your business property.
  • Financial obligations resulting from claims that your business activities have resulted in damage to someone’s reputation or privacy.
  • Legal costs associated with claims that your business’s advertising includes misleading statements, copyright infringement, or false advertising and caused financial harm to another party.

Morse, of course, helps you select the right insurance coverages for your business.

While these coverages are optional, the Morse team believes all three may play an instrumental role in protecting your valuable investment. We are glad to help you determine the benefits of these coverages for your company and find the most cost-effective way to get them.

One of the things we can look at for you is whether you’re eligible for a Businessowners Policy (BOP). A BOP typically consists of three traditional insurance coverages—property, liability, and business interruption—in one powerful package. It can also often be customized to meet the specific risk management needs of a business, which may include adding Cyber Liability, EPLI, and other important coverages without breaking the bank.

Please don’t hesitate to call Morse for assistance. We will be happy to review your current business insurance coverage and provide suggestions on ways you may be able to broaden your protection. Our goal is to help you make sure your business is better prepared to take on not only today’s most common business risks but also emerging threats that might be just around the corner.

Get to Know Morse Insurance