Business Risks You Didn’t Know Insurance Can Cover

When most business owners think of insurance, they picture coverage for property damage, liability claims or employee injuries. But modern insurance solutions go far beyond the basics, offering protection against a wide range of unexpected and often overlooked risks.

Lesser-known Business Insurance Coverage Options

The following are some surprising business risks that insurance can help mitigate:

• Cyber liability and data breach recovery—In today’s digital age, cyberthreats are growing. Cyber liability insurance can also help with legal fees, customer notification, credit monitoring services and even public relations efforts to restore your company’s reputation.

• Reputational damage—Some insurers offer coverage for reputational harm caused by negative publicity, social media backlash or defamation. This type of insurance can help fund crisis management strategies, legal defense and marketing efforts to rebuild trust.

• Key person insurance—If your business relies heavily on one or two individuals, such as a founder, top executive or lead developer, key person insurance can offer financial support in the event of their death or disability. This coverage can help maintain operations and offset losses while you search for a replacement.

• Supply chain disruption—Global supply chains are vulnerable to natural disasters, political unrest and transportation issues. Supply chain insurance can cover losses due to delayed shipments, unavailable materials or supplier insolvency, helping you stay resilient in turbulent times.

• Business interruption from civil authority—If your business is forced to close due to a government order, some policies offer coverage for lost income and operating expenses. This can be a lifeline when external events halt your operations unexpectedly.

• Employee dishonesty—Fidelity insurance protects your business from financial losses due to employee theft, fraud or embezzlement. It’s especially valuable for companies that handle sensitive financial data or large cash flows.

• Intellectual property infringement defense—Legal battles over trademarks, copyrights or patents can be costly. Certain policies offer coverage for legal defense and settlements related to intellectual property disputes, helping you protect your brand and innovations.

For business insurance near you, contact Hampton Insurance Services.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.