Review risks
Your risk analysis is a great guideline for your specific needs, but there are a few areas of coverage the economy has made more relevant. And today’s evolving risks can be enhanced by geography and industry.
“In the state of Indiana, we clearly have been hit by the economy especially in the manufacturing sector, so there have been a number of risks that have become more significant in this day and age,” Breiner says. “A lot of those relate to business continuity and supply chain exposures, related to the potential insolvency of trading partners.”
Business interruption and trade credit insurance are two areas to review. If a client can’t pay or your operations are halted, how will those scenarios affect your balance sheet if you’re already strapped for cash?
Insurance executives are warning that desperate times produce desperate people. If you’ve decreased your work force or plan to, keep in mind workers’ compensation and employee discrimination claims tend to rise in a down economy, as do employee crime and cyber theft. Now might be a good time to evaluate directors and officers coverage, employment practices liability insurance, crime insurance, cyber insurance and workers’ compensation coverage.
“As the economic situation squeezes employers and as employees are faced with uncertainty, certain areas deserve special attention and certain housekeeping procedures can help reduce your insurance expense,” Geesa says.