The Impact of Industry-specific Risks on Insurance Needs

All businesses can benefit from the financial protections provided by insurance. However, operational details and subsequent risks and exposures can mean that the exact coverage needs of commercial enterprises vary significantly. Furthermore, companies in certain industries may be subject to more stringent requirements or standards, making it necessary to conduct careful assessment and exploration of coverage needs.

What Insurance Does My Business Need?

The industry in which you operate is paramount among influential factors when determining your business’s coverage needs. While there may be significant variance in exact operations, risk levels and potential incidents among companies within the same industry, there are generally many common exposures.

Consider the following examples of how the sector in which you operate may impact coverage needs:

• Construction—As one of the more dangerous industries among U.S. employers, businesses involved in construction must account for many risks and exposures. Meeting deadlines, operating heavy machinery, working at height and handling hazardous materials can all involve significant risk levels, making high coverage limits and versatile insurance portfolios necessary.
• Retail—Retailers must account for many potential incidents impacting operations and finances. Theft, burglary and vandalism may all make crime coverage advisable. Similarly, retail businesses often work with credit card numbers, meaning that data breaches and other cyber incidents may necessitate cyber liability insurance.
• Technology—In the digital era, businesses in the technology industry must be wary of potentially catastrophic cyber incidents. Malware infections, phishing scams, social engineering and ransomware attacks could all compromise sensitive information and incur significant business interruption losses. Businesses in this sector may require even more robust cyber liability coverage than businesses in other industries.
• Trucking—Businesses that utilize motor vehicles for business purposes may be subject to stringent requirements. For example, those in the trucking or transportation industries are likely required to carry certain levels of commercial auto liability coverage. Failing to do so could lead to catastrophic out-of-pocket losses, fines, and even the forced shutdown of operations.
• Hospitality—Those in the hospitality sector may experience unique risks and exposures. Suppose you plan to host a large gathering but are forced to cancel it due to unforeseen circumstances. Special event insurance may be critical to assist with nonrefundable deposits and rescheduling fees. In other situations, liquor liability insurance could be an essential investment, as serving alcohol could potentially make you liable for intoxicated guests’ actions.

We’re Here to Help

Securing suitable insurance should be a top priority when assembling adequate loss control measures. However, identifying legal requirements, understanding industry standards, assessing risk levels and exploring ideal options can all be complicated. At Five County Insurance Agency, we have the extensive knowledge and experience to help you identify and secure ideal coverage. Visit our website or call (239) 939-1400 to get started today.

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.