Business Insurance Changed Forever In 2020

For business owners, the world of insurance is no stranger. Over the years, various types of coverage, from liability insurance to premises liability and EPLI, have become integral to safeguarding businesses from unforeseen risks. However, in the last 18 to 24 months, the landscape of commercial insurance has undergone significant changes – changes that could be surprisingly beneficial for policyholders. In this blog post, we’ll explore the positive shifts in commercial insurance and how they can impact businesses in a rapidly evolving marketplace.

The Positive Shifts in Commercial Insurance: A Rarity

  • Traditionally, changes in commercial insurance policies tend to make things more challenging or expensive for businesses. However, the recent developments have defied this trend, bringing about positive transformations in the insurance landscape. These changes were kickstarted by the introduction of cyber insurance, initially considered an add-on rider to many policies.

The Role of Active Monitoring in Insurance Policies

  • What sets these recent changes apart is the integration of active monitoring into insurance policies. Initially a feature of cyber insurance, active monitoring involves placing tools or monitors on a business’s systems, servers, or websites. This proactive approach allows for the detection of potential cyber threats or hacking attempts, often before the business owner or their IT team becomes aware of them.

Expansion of Active Monitoring Across Coverages

  • The positive news for business owners is that active monitoring is no longer confined to cyber insurance. Forward-thinking insurance companies have started incorporating this monitoring approach into other coverages, including directors and officers insurance (D&O), employment practices liability insurance (EPLI), and even workers’ compensation insurance. This shift is driven by the use of technology to monitor events that could pose risks to a company.

The Advantages for Policyholders

  • The benefits of active monitoring extend beyond just preventing cyber threats. For policyholders, it means:
    • Preventing Claims: Active monitoring helps identify potential issues before they escalate into a full-blown claim, reducing the financial burden on both the insurer and the business.
    • Avoiding Deductibles: By preventing claims, businesses can bypass the need to pay deductibles or retentions, contributing to cost savings.
    • Preserving Reputations: Privacy is a significant advantage. Anything discussed or resolved through active monitoring remains confidential, shielding the business from public scrutiny that might arise from legal proceedings.

Adapting to the Changed Business Landscape

  • The business landscape has evolved significantly in recent years, with the COVID-19 pandemic prompting shifts in work dynamics, technology, and customer expectations. The risk profiles of businesses have changed, and traditional insurance policies may no longer provide adequate coverage.

Embracing Modern Workplace Practices

  • Active monitoring isn’t just about preventing claims; it’s about aligning insurance with the modern workplace. This includes monitoring online resources like Glassdoor for employee feedback and Yelp for customer reviews. Additionally, monitoring business changes such as mergers, acquisitions, or name changes can help prevent unforeseen risks.

Seizing Opportunities in Insurance Evolution

  • As a business owner, viewing these changes in commercial insurance as opportunities rather than mere policy adjustments is crucial. The evolving workplace demands a proactive approach to risk management, and the advancements in insurance policies, particularly with active monitoring, offer a chance to not only save costs but also enhance the overall resilience and productivity of your enterprise.

In a world where change is constant, businesses that embrace and adapt to innovative insurance practices position themselves to thrive in the face of evolving risks and challenges.

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