3 Types of Insurance Your Business Can’t Afford to Go Without

Running a business can come with its fair share of gains, such as profits and sharing your service or product with consumers, but it also comes with inherent risks, including but not limited to lawsuits and discrimination claims. To protect both yourself and your business, it’s imperative that you work with a trusted insurance brokerage to find the insurance your company needs to mitigate risks and the costs associated with recovery—be it from getting hacked or being sued.

https://www.embroker.com/business-tips/general/cyber-insurance-guide

Cyber Insurance

In order to protect yourself from a cyber-related security breach, it’s beyond important to have strong cyber insurance coverage. Also referred to as network security and privacy liability insurance or cyber liability insurance, this coverage helps businesses mitigate risk exposure and pay for the costs that can be associated with recovery from a cyberattack such as a customer data breach.

It’s important to note that big businesses aren’t the only ones at risk of cyberattacks. You need to protect your company from this threat regardless of its size, as small businesses, in particular, have a much harder time bouncing back from being hacked. In reality, 60% of small companies don’t bounce back from a cyberattack and end up closing six months after.

 Employment Practices Liability Insurance

Also referred to as EPLI insurance, this critical coverage helps businesses protect themselves from lawsuits that could be brought up by current or former employees—even candidates. Employers need to always act appropriately around employees, but should be particularly cautious regarding the age, national origin, religion, gender, and even pregnancy of current, former, or potential employees. Relevant non-discrimination cases include wrongful termination or failure to promote.

It’s worth noting that misbehaving managers can significantly cost a business if they take inappropriate actions or make unprofessional remarks. Additionally, even if an employee is no longer with your company and has signed a waiver or agreed to receive a severance that does not mean they have waived their right to file a discrimination case if they feel justified.

 Directors and Officers Insurance

Also referred to as D&O insurance, this coverage protects the—you guessed it—directors and officers of a company if a lawsuit is filed claiming financial injury due to mismanagement. This coverage helps your company’s leadership take the actions needed to keep the business successful by lessening fears of personal financial loss.

To be clear, D&O insurance typically does not cover any lawsuits that might occur between the directors and officers within a business.

 About Embroker

Embroker is a leading digital commercial insurance brokerage that combines data and technology with real industry specialization to help growing businesses find the coverage they need. Founded in 2015, Embroker serves over 1,800 customers and is licensed in all 50 states. The San Francisco-headquartered business helps their clients save time via Embroker’s user-friendly platform to digitally carry out needed tasks, while real live experts are on hand to help. Whether your business needs crime or cyber insurance, Embroker has the tools to support your claims and protect your time.

Get the coverage your business needs today at Embroker.com

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