COVID-19 sent the entire globe reeling, and the uncertainty brought a lot of stress. Many avoid dwelling on memories of shelter-in-place orders because of all the emotions such thoughts stir up.
There is so much valuable information we can learn from the height of the pandemic, though. Many industries demonstrated they were learning as they went through the immediate aftermath of COVID-19. For example, car insurance providers issued coronavirus responses within a few months through refunds and credits.
So, it’s worth looking back and evaluating how you could better protect your business through insurance in the future with a minimal negative impact on sales.
A Basic Business Insurance Policy Might Not Provide Adequate Coverage
Cutting corners and choosing an insurance policy based on the premiums alone could lead to your business being underinsured or worse. You probably won’t be able to find an insurance plan that covers every possible outcome, but if you did, the premiums would likely be so high you couldn’t afford them.
Evaluate Your Business Needs
Not having the coverage you needed during COVID-19 should prompt you to evaluate your needs and choose a plan that provides coverage for them.
You won’t find a plan that covers pandemic shutdown losses. If a business insurer covered worldwide pandemic-related losses, they’d go bankrupt. Insurance is designed to cover localized disasters and individual losses. The premiums the company takes in from other companies across the country offset the claims of a few.
If most policyholders are affected and file claims, the insurance company can’t offset the claims and will almost certainly lose financial solubility.
Consider Additional Types of Coverage
Even though you likely won’t find coverage for pandemics, there are likely other areas where your business could be better protected. For example, you might consider increasing your limits or adding cyber insurance. With cyber-attacks increasing, you should be especially proactive about enhancing cybersecurity.
A business umbrella policy and business auto insurance are other types of coverage worth considering.
Don’t Ignore Your Policy Fine Print
Many companies that had purchased business interruption insurance thought they were properly covered to protect them from COVID-19 business interruptions. Unfortunately, that type of policy only covers interruptions from specific events like storm shutdowns or fire damage.
You won’t be surprised by what your policy covers if you read the fine print before you sign on with the insurer. And when the fine print reveals gaps in your protection, you can develop strategies to protect your losses in those situations.
Protect Your Company Beyond Insurance
Since you probably won’t be able to find an insurance policy for everything, it’s essential to develop a plan for dealing with future disasters.
Many companies were forced to scramble to develop work-from-home options to continue making sales and maintain profitability. If your team is back in the office, you might want to establish a remote work plan to make transitioning as smooth as possible.
Improving your social media presence and generating sales-boosting videos is one way to keep your company profitable even if you must return to remote work.
Now that you know how much your company lost during the pandemic, you have a better idea of what you should work toward saving in case you need to rely on what you’ve saved to keep your company afloat in a future catastrophe.
And don’t forget to take advantage of government programs like the paycheck protection program that made the difference between staying in business and going under for many companies.
With the right insurance policy and strategies for filling in gaps in coverage, you can set your business up to remain profitable when facing unexpected challenges.