Lesser-Known Insurances Help Small Businesses Protect Their Resources

With concerns like high inflation and generating revenue prevalent in today’s unsteady economy, scores of small businesses continue to face challenges as they try to grow. It’s crucial for small businesses to find the best insurance coverage to help protect their assets.

Factors like rising interest rates and consumers looking closer and differently at how they spend money are also prompting entrepreneurs to focus more on their operations and prepare against unforeseen disasters that could severely harm or even shut down their businesses.

With May being Small Business Month, many small businesses can potentially reduce their risk of heavy unexpected financial loss stemming from everything from cyberattacks to employee theft. For instance, cyberattacks reportedly can cost companies an average of $200,000 for each occurrence.

To boot, small businesses are often so busy running their daily operations they may neglect cybersecurity best practices. That can make them prey to cybercriminals trying to profit off their vulnerabilities. And they most likely don’t have the ample resources of larger companies to combat the assaults.

BLACK ENTERPRISE connected with Steve Maliborski, general manager of commercial products at Acuity Insurance, on the topic. He offered recommendations on three different types of lesser-known insurance coverages small businesses may consider that could help protect their assets.

With larger companies investing in cybersecurity tools, hackers are increasingly targeting small and medium-sized businesses. However, small businesses can help guard themselves with cybersecurity insurance. It generally includes cyber liability and data breach coverage, one of the most common types of cybercrime. “Cyber insurance covers costs to identify the extent of the breach, how you should respond, notification and services to those affected, and any fines you incur.”

The bottom line is the best defense against cybercrime is prevention. Some commercial cyber insurance policies, including Acuity’s, contain resources to help minimize cyber risks. “Cyber insurance will cost you far less than you and your customers being the victim of a cybercrime.” Acuity’s average commercial lines policy starts at $263 yearly.

• Business income and Extra Expenses

Until repairs are made after a property loss, retailers may lose income. Business income coverage helps bridge the gap, while extra expense coverage pays for the added costs needed to resume operations. If the damage is extensive, you may need to shut down operations temporarily. Your income will be impacted during downtime, but your bills and expenses will still need to be paid. The business Income portion pays for the actual loss of income you sustain due to the necessary suspension of your operations. The extra expense portion pays for essential expenses you incur while your regular operations are restored. For instance, if you need to move to a temporary location, the coverage will include relocation expenses and costs to equip and operate the temporary site.

A recent Zippia study showed 75% of employees steal at least once from their employer. This coverage will help as it pays for loss or damage to items such as inventory, office equipment, other personal property used in the business, forgery and fraud, money, and other forms of payment. “Employee Dishonesty Coverage provides an extra sense of comfort to your existing financial controls and security procedures by protecting you and your business against internal threats in your business.” Coverage costs can vary quite a lot by state and business type. Yet, an independent agent will be able to provide you with specifics about the coverage, evaluate your risks, and help you determine how much coverage you need.