Your customers shape your business, and in order to survive our rapidly changing economy, you’ll want to respond to their evolving preferences. For instance, because of COVID-19, more people are relying on the internet to buy items. In fact, 32% of Americans have ordered food online from local restaurants. This means certain businesses can benefit from adding more digital options like:
- Meeting with clients with video conferencing tools
- Expanding your online store
- Offering free shipping for online purchases
But as you make adjustments like these and continue to innovate, you’ll need to look at your insurance coverages to make sure you’re still protected.
Recent Challenges for Small Businesses
COVID-19 abruptly shut-down many businesses, causing them to re-think the way they operate. Some changes that are shaping the future of small businesses are:
- New government regulations: Federal and state governments have been releasing guidelines during COVID-19 to help keep everyone safe. These are shifting how businesses engage with their customers.
- Social distancing and face masks: Customers, employers and employees are all expected to wear face masks in businesses when social distancing is not possible. And to help keep everyone six feet apart, many companies have mapped routes throughout their stores to help guide the flow of people.
- Outdoor dining: A number of restaurants are now serving customers only outdoors to keep everyone safe from COVID-19.
- Limits on social gatherings: A growing number of small businesses are regulating how many people are in their building at the same time. This helps reduce everyone’s exposure to the virus.
- Managing remote workers: As small businesses have switched to working from home during COVID-19. This has increased the need to connect online and find new ways to manage their employees. However, many businesses are finding that remote work is just as productive as before.
- Losing customers: If your small business lost money during COVID-19, you’re not alone. But there are ways to get customers flowing back into your business. For instance, you can offer discounts, sales or more convenient delivery options.
- Letting employees go: One of the hardest challenges many small businesses have faced is laying off their employees due to decreased sales. However, as you continue to innovate and find new solutions, you may be able to increase your sales and hire your workers back.
- Supply chain disruptions: COVID-19 impacted more than just your company, it likely caused your supplier to shut-down or make fewer deliveries. This may have impacted your inventory and caused some of your products to be out of stock temporarily. Or if you own a restaurant, maybe you have had to change your menu. But remember, finding new products or new recipes may help strengthen your business in the long-run.
As your business operation continues to change during COVID-19, it’s a good idea to review these insurance policies to make sure you have the right coverage. You’ll want to understand how you could be liable for claims filed against you by customers or employees:
- General liability insurance: Re-opening your business means your clients will face the risk of catching the virus in your building. This means if your customer claims they caught the virus due to your negligence, they may file a claim against you. However, this is difficult to determine, and most of these policies exclude infectious diseases.
- Directors and officers (D&O) insurance: Your shareholders and stakeholders could sue your business if you fail to operate normally due to COVID-19 concerns. For instance, they may claim that you failed to detail how the virus may impact your company’s finances.
- Workers’ compensation: If your employees think they caught COVID-19 at your business, they may file a workers’ compensation claim.
- Data breach and cyber insurance: Many businesses are selling more items online and relying on remote workers, which increases the need for cyber insurance to protect personal information. Because of this trend, the chances of data breaches have increased for companies.
To learn more about the coverage you need during COVID-19, reach out to your Client Advisor. They can help answer any questions you have while finding the right coverage for your small business needs.
Source: The Hartford
