22 Apr The Role of Insurance in Your Business Continuity Plan

Your business is more than just your livelihood. Yes, it helps pay the bills, but focusing solely on its profitability negates the fact that your heart and soul went into developing products and services, hiring employees, running the company, and more. So, what happens when the unthinkable occurs? Your company’s continuity plan, which should cover everything from wind damage and warehouse fires to the loss of a company leader, needs to include the right insurance policies as well. These crucial policies can provide the funds that keep your business operating in tough times.

Wondering which types of policies you need? Here are some suggestions to get you headed in the right direction.

Data Breach Insurance

Also known as cyber liability insurance, data breach insurance is designed to help your company pick up the pieces after there’s been a data breach. These policies often pay for everything from the costs of putting your computer system back together in a more secure manner, to the price of sending out a press release about the hacking incident, to the fees associated with offering your customers credit monitoring services so that they can keep themselves safe.

Business Interruption Insurance

When business is interrupted due to factors like building damage, the loss of the company founder who created the proprietary software or items, or anything along those lines, what happens to the company? If you have business interruption insurance, then you have less to worry about because the policy can cover employee wages, a temporary alternate working location, and anything else necessary while the business puts itself back together and starts running normally again.

Commercial Property Insurance

If your business owns or leases a building or warehouse, then you’ll need to have a commercial property insurance policy in place. Acts of nature, such as tornadoes, fires, high winds, and major rainfall should be a part of your continuity plan. How will you protect your employees should they be inside when a tornado hits? Once they’re all safe, any damage to the building and surrounding property will be covered by this insurance policy.

General and Professional Liability Insurance

There are two different types of liability insurance that businesses should have as a part of their continuity plan. The first is general liability insurance, which will pay for things that the business is found liable for, such as the medical bills for a customer who slips and falls in your lobby. The other, professional liability insurance, is designed to help companies that provide professional services to their clients. An accounting firm, for example, that accidentally submitted an incorrect tax return for a client can use their professional liability insurance to pay for any fees, legal costs, or other things related to the incident.

Do You Have Questions About Business Insurance?

If you want the perfect policy to keep your business running in case of a natural disaster, the death of a CEO or founder, or for any other reason, contact Spivey Insurance. Our knowledgeable agents can answer any questions that you have and assist you in finding the best policy for your needs.