Most people, especially in business, are familiar with the basic concept behind insurance. It is "contingency money" to provide some financing in case something happens, such as an accident, which may require spending to stabilize and recover.
But insurance can cover a broad range of incidents. You may only be looking at the ones most likely to happen, such as workplace injuries or health concerns. But often, the right insurance policy can be far more comprehensive than you might think, especially for business purposes. Accidents can happen to anyone, but there are some hazards of business that require special considerations, and you might be surprised by what else your insurance is protecting you from!
It's true! While kidnapping and being held for ransom is not the most common business occurrence, that doesn't mean it still doesn't happen. This situation is, sadly, sometimes prevalent in less developed countries where it's apparent to the general population that a wealthy business person from a foreign nation could prove valuable to a company that wants their employee back.
The right business insurance can have provisions in place if someone from a company is kidnapped and then a ransom is demanded for their safe return. Of course, it is up to every single business to determine whether or not to even have a corporate policy in place about negotiating with kidnappers and complying with their demands. But in the event you decide that the ransom is the fastest way to ensure the safe return of a valued company employee, it doesn't necessarily have to come from the company budget.
Product recalls are probably one of the top nightmare scenarios for every company. It becomes clear to both a business and the general public that a product you're selling may be unsafe. The most responsible thing a company can do in this situation is to make a public announcement about the product, make sure the media is also aware, and then put in motion the procedures needed for a product recall. It is extremely dangerous to a business's reputation, especially in the age of social media, to be repeatedly told that a product is potentially harmful, and to ignore those warnings and sell the product anyway. In the 21st century, that is a recipe for a class action lawsuit.
Of course, product recalls are neither easy nor cheap to execute. However, with the right provisions in an insurance policy, the financial burdens of this exhaustive procedure can be offset. Ultimately, both from a legal and public relations standpoint, taking responsibility for a product recall is the best move.
While life insurance is known as a contingency for families who have lost a member making critical financial contributions, that doesn't apply to businesses. However, there are specific forms of business insurance that can help to alleviate some of the costs when a valued staff member, such as a key researcher or partner, unexpectedly passes away.
In the way that a family's financial situation can be dramatically affected by the death of a key member, the same is true for a company. Insurance can mitigate the impact on a company’s finances as it struggles to fill the void.
Some accidents can hurt people, but others can have a very dramatic and negative impact on the environment. Releasing deadly gases or toxins into water sources or even contaminating the soil with waste material, will render these precious resources unsafe and unusable. Companies who display these kinds of actions, when found out, will ultimately be held responsible. When this happens, even if it was an accident, the company should still put forth efforts to make amends for what happened, rather than allow the environmental harm to go unchecked.
Coverage in these instances can help with the quarantine, containment, or recovery efforts that may be necessary for the aftermath. Insurance can be incredibly helpful in protecting business assets and finances because you are budgeting adequately for much-needed actions to be taken while allowing the company to move forward.
What Else Can Be Covered?
If you're not sure what your current business insurance covers you for, or you are thinking it's time to get more insurance coverage that is comprehensive enough to include some of these contingencies, then we can help! Contact one of our agents with your questions and concerns, and we can go over your current policy or even help with moving onto a new one.