Those brave enough to start a small business are very resilient, and have spent a great deal of time planning their steps to thrive in a competitive world. For owners of small businesses, the margins they survive on are thin and very risk prone. One of the most dependable means of achieving peace of mind is securing the ideal insurance coverage. Since small business owners are forced to take on so many roles at once, they may not have the time to properly determine the insurance coverage that is ideal for their segment.

Here is some very practical information about 3 key insurance coverages that every small business owner should consider for adequate and resilient protection. Our expert backing and assistance here at Alexander Insurance Agency of St Charles can provide your business with a form of welcome reassurance to weather unforeseen events that could cost you precious time and income.

Business Interruption Insurance:

Business interruption coverage is often gravely misunderstood, and it remains a stronghold for business when many forms of unexpected events take place. Issues such as fire or water incidents can temporarily force you to close, along with the spread of viruses that can force employees to be absent. Business interruption insurance was in the spotlight for quite some time over the past few years, as harried owners were hoping that their massive losses would be covered by their policies.

While most policies will continue to forego airborne illness/virus clearly stated within their income exclusions, this form of coverage is still unnecessary for small businesses that depend on their physical location and equipment for smooth and profitable operation. Business interruption policies can include payroll, loan payments, mortgage or rent, and costs to temporarily relocate. Here are two very important questions to consider when you’re thinking about whether business interruption coverage is right for you.

• Would my business be able to weather a shutdown period of anywhere from a week up to a year?
• Can the business afford to continue paying wages if it is shut down for issues such as a natural disaster or fire?

Cyber Insurance:

As your doors are open for business, your registers are ringing, and things are going smoothly, some businesses find it difficult to consider themselves attractive targets for cybercriminals. These attacks can create potential turmoil and income loss for businesses of all types and sizes. Most larger companies have a complex security protocol and more resources to respond if they happen to be suddenly attacked. A small business that becomes a victim of a malicious ransomware attack may suddenly feel that it must meet the hackers’ demands to continue operating without interruption.

It may be possible to add a cyber liability, or “data breach” endorsement to a business owner policy, as this type of sensitive data should be protected at all costs. We can assist you during the duty of figuring out how many policy exclusions are in an endorsement compared to the benefits of a standalone policy. During the underwriting process for cyber insurance, it may be necessary to provide evidence of encryption and authentication to show you have done your due diligence.

Errors and Omissions:

Common mistakes are one of the misfortunes of life that business owners can be held liable for. Errors and omissions insurance is also known as professional liability, in it provides solid backing for the services and various types of work that businesses provide. As projects can be left incomplete, contracts may be breached, and occurrences of negligence take place, many situations that can quickly bring about negative consequences.

As soon as the claim is filed against you, this valuable form of insurance will cover the final settlement or existing legal fees. Professionals such as real estate agents, accountants, and remodeling contractors can benefit from this protection that allows them to focus on their work and not persistent worry about the unknown. As the entire economy was disrupted post-pandemic, some individuals became a bit more frivolous, and engaged in lawsuits that weren’t necessarily backed with formidable intent.

Securing the Best Coverage for Your Business:

We understand that the prospect of securing the right insurance can feel confusing and overwhelming. If you are running a small business, it’s necessary to find the coverage type that will offer protection from grave risks. Thriving is so much better than just surviving in the business realm, and knowing you are fully covered in case of an emergency is crucial. Your ideal scenario is with your professional reputation safeguarded, and your digital assets rendered safe against cyber threats. The Alexander Insurance Agency of St Charles has always tailored our solutions to the pulse of your challenges, with your long-term success as a high priority!