Mountain biking is not for beginners. When I was younger I went mountain biking and Colorado. I thought I was skilled but quickly discovered I was out of my element on the unfamiliar steep climbs and sharp drops and my naivete showed right away when I didn’t know bikes could have suspension or handlebar extensions. It buoyed my confidence having friends around and safety gear on, though about halfway through I regretted declining the shinpads.
Businesses similarly reach a point of growth where they move from comfortable operations into mountainous terrain with higher highs, steep cliffs, and imposing obstacles. Faster speeds leads to bigger accidents and now that your risks are greater, it’s time to upgrade your protection. Insurance is one the primary tools for protecting yourself and there may be products you need that you haven’t used because your risks were smaller up until now.
Beyond the insurance you should already be familiar with at this point, here are some new pieces of protective equipment that could make a big difference:
- Employment Practices liability- alleged harm caused by hiring or firing practices. This could be for breach of employment contract, discrimination, harassment, retaliation, wrongful termination, or payment disputes. The cost to defend and settle these types of claims can often cost as much as the claim itself so having this coverage can really come in handy.
- Crime- meant to cover fraudulent acts committed by staff. Options include damage to outside parties as well as internal harm like embezzlement. Employee theft, forgery or alteration, physical theft, computer fraud, disappearance, and other things. This can happen to companies of any size and regrettably often committed by seemingly trustworthy people.
- Cyber liability – the cost for this coverage has increased recently due to the number of claims that have been covered, which is both encouraging and ominous because it means more cyber-attacks are happening and the cost to correct them has increased, but also that means the coverage is working. Coverage includes things like business interruption mentioned below, ransomware event, hotline help, hardware restoration, identity monitoring, telecommunications hack, social engineering attack, data restoration, extortion costs, defense expenses, forensics, incident response, income loss, media incident, negative publicity, transfer of funds, cybercrime and can be global coverage. It’s an underutilized coverage many businesses could benefit from.
- Business interruption – used when a company’s physical location is unusable due to insured damage. There are only certain circumstances that trigger this coverage, with things like government-mandated covid lockdowns being litigated now, but typically used in conjunction with property coverage. The intent of this coverage is to pay fixed expenses during a time when operations are being obstructed.
- Tools and equipment- considering how many years and dollars businesses spend on amassing the assets needed to operate a business, it is vital to properly insure it. It’s important to note whether or not it will be leaving the listed location so it can be properly covered. Equipment falls into a few categories:
- Permanently attached equipment or machinery- immobile equipment like CNC machines, paint booths, bailers, industrial washers, commercial kitchens, etc. These are usually high-value single pieces that could be specifically listed on an insurance policy.
- Mobile equipment – things with wheels or tracks but not tagged for use on the road, like forklifts, bobcats, excavators, lawnmowers, etc. These are usually specifically listed for coverage as well.
- Business personal property – most everything else, like computers, furniture, inventory, or other loose items
- Miscellaneous tools and equipment – this is meant for smaller, lower value items used on and off premises. Typically, there is a blanket “floater” policy used to cover these items and can be packaged in with a Commercial Auto policy, General Liability, or written stand-alone.
- Pollution- if your business handles anything that could be considered a contaminant, cleaning up a spill could cost quite a lot. This is especially important in transportation and trucking where even things like milk can be considered a pollution hazard.
- Cargo – if you are in the business of transporting other people’s stuff, you’ll want to have this coverage. If a contract requires a certain amount, it’s worth considering if the amount you insure would actually cover what you are carrying and who is responsible for it.
- Directors & Officers- management decisions that affect stakeholders. The main coverage intent here is to cover wrongful acts which is any alleged act, error, omission, misstatement, misleading statement, or breach of duty. It can also cover damages resulting from antitrust actions, regulatory violation, HIPAA , management control, or fiduciary responsibilities.
- Abuse or molestation- typically we see this for religious organizations, special events, anyone that works with youths, or counseling, but it can come up in any business. It is most often packaged in with another coverage like the General Liability.
- Bonding – there are three main types of bonds, and you’ll see savvy businesses, even small ones, say they are “bonded and insured”. What bond is needed depends a lot on what the business is, but usually you would get one under some kind of third-party requirement. There are of course bonds that benefit employers or associations as well as individuals.
It’s important to note that these policies don’t cover everything, especially whatever creative exclusions insurance companies are coming up with these days, and there are other myriad coverages tailed to your specific business that are not mentioned here. You could cover your body in bubble wrap before mountain biking but maybe there is a middle ground between fun and safety. It will largely be up to you and your advisors to find that sweet spot. There is coverage for nearly everything though so keep your mind open to your risks, avoid the ones you can, control the ones you can’t, and transfer to insurance companies the ones that keep you on the trail and help you feel confident moving ahead.