Tips for Insuring Your Company Against Disasters Like COVID-19

by Startacus Admin

When establishing your company, you and your insurance broker likely went over the types of coverage that were appropriate for your industry. Having flood insurance is smart and even required for individual businesses located in the Mississippi River area. For California company owners, fire insurance coverage is critical due to wildfires that frequently break out there. In the current international business world, COVID-19 is not only threatening human life, but it is also putting businesses on the brink of bankruptcy. Now that business owners are aware of the fact that the outbreak of critical illnesses can personally touch them, a different strategy must be approached.

1. Avoid Getting the Minimum Amount of Coverage

Think about what having the minimum amount of coverage for any type of insurance means. If you are a motorist, it means that while you might be able to drive legally, you would be in big trouble in case of a severe accident. For a business owner, it boils down to about the same thing. Yes, you will be able to operate your company, and everything could potentially be okay in the end. Unfortunately, as demonstrated by the outbreak of COVID-19, there is pretty much no business in the world that has gone untouched. Upping your insurance coverage amounts in case of any type of disaster is a necessity for all business owners.

2. Check the Market Often for New Insurance Products

Different states have varying levels of insurance requirements that are mandated for various types of businesses. A manufacturing company might require $1 million in liability insurance coverage, while daycare operators might need $250,000 in accidental injury and death coverage. As such, insurance carriers have specific products and even levels of coverage available in different regions and markets. New laws, referendums, and rules for business owners to change regularly. There could be some new insurance products that have recently become available in your area. If you intend to be confident that your business will be prepared to deal with and recover from international disasters like COVID-19 in the future, stay on the lookout for new insurance products.

3. Review Your Liability Insurance Coverage

In a disaster situation, threats are going to come at your business from all angles. As a business owner, it will be you making all of the decisions in a critical situation where fast decisions are vital. Liability insurance coverage can protect your company against having to pay out big bucks in case of several types of legal actions. The Hartford has been in the business of helping business owners since 1810 and offers business owners customizable liability insurance packages that fit all budgets. Liability coverage can payout in case you are sued for negligent actions in civil court, and it can also come in handy in case your company is sanctioned and fined. Merely having the maximum amount of liability insurance coverage will help you in case of an international disaster because you will be better equipped to make quick decisions.

Neither scientists nor business owners know when another outbreak like COVID-19 is going to occur. Most are hoping that nothing like this ever happens again, but there are currently no protections in place to prevent it. Having the right types of insurance coverage for your business can be a good protection in the interim.

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Published on: 11th May 2020