All too often, business owners assume that their general Business Insurance Policy covers any and all risks associated with their business. But you should know that there are some things that are NOT covered by your standard Business Policy. And without added insurance to protect you against them, they can be very costly.
Two common risks not covered by a stand-alone Business Policy are Cyber Liability and Employee Dishonesty/Crime.
Fortunately, you can purchase separate, specialized insurance coverage to protect your business against these risks.
CYBER LIABILITY/DATA BREACH
If you are not sure that your company needs this type of coverage, consider these questions:
- What types of personal or confidential information does your business collect and/or store?
- Are your clients’ or employees’ personal information, pictures, social security numbers, or credit card data stored on your server?
- If your business were to sustain a data breach, could you or your company be faced with third-party liability actions? Are you aware of your obligation to send government-mandated notifications to the affected parties if such a breach were to occur, and how much this would cost?
- Could someone use your e-signature to sign contracts or make purchases without your knowledge?
- Do you store confidential business plans or product designs digitally?
- How would a malware infection affect your business?
- Is it possible that a hacker could steal identifying or confidential information from your server, even if your system is “secure”?
When it comes to cyber liability, these are just a few of the questions you need to consider. Theft or loss of confidential or vital information can not only cost your business a huge sum of money, but it could also damage your professional reputation and eventually put you out of business.
EMPLOYEE DISHONESTY/CRIME
While your Business Insurance Policy gives you limited protection from losses resulting from burglary or theft, it may not protect you from many forms of employee dishonesty/crime.
And no matter how much you may trust your employees, you’d probably be surprised to learn how common employee crime really is, or how seemingly “minor” acts of dishonesty can lead to a substantial loss over time.
In addition to obvious forms of thievery, such as stealing money from a cash register or taking merchandise from shelves, employee dishonesty/crime can include giving discounts or free merchandise to friends and others who are not eligible for them, “stealing time” by falsifying time cards, and other actions you may have never even considered.
As noted above, theft of confidential and identifying information is another often-overlooked risk that can be costly and potentially damage your business’s reputation. Do your employees have access to such information?
As you can see, Business Insurance can be complicated, so our best advice is to seek the advice of a Business Insurance expert.
Paul & Dixon is here to help! Craig Correia, vice president, and risk advisor is a Certified Commercial Lines Professional who can help you assess your Business Insurance needs and explore your options.
