Business Insurance Trends in 2021
Certainly, over the course of the recent year and a half, Canadian business owners have had to adapt and adjust to the new and ongoing realities of business operations. What is also important to note is how this reality has also been significantly reflected in their insurance coverage needs.As many experts are looking at a more positive outlook for the business world moving forward, here are some business insurance trends that are likely to continue throughout Canada as 2021 progresses.
E-Commerce Businesses
With many businesses either switching over to the e-commerce route or being established with this business model in mind, many business owners, including small businesses, will require e-commerce insurance to help offset the potential risks that can also stem from online operations.
One specific are of insurance that online retail business owners will definitely want to consider is cyber insurance. Cyber Liability Insurance, for example, can be added to an e-commerce insurance policy to protect businesses from loss of income, reputation and legal issues, that can result from data breaches and the loss of sensitive information.
Fortunately, cyber insurance can help protect businesses – large or small in a variety of ways.
Business owners are encouraged to look into which areas will concern them the most, and in turn, surround their e-commerce business with the most solid protection possible.
Flexible Working Locations
Another exemplar on the rise this year is the shift towards more frequent work from home. With many employees making this work trend more the norm in 2021, this is also likely to continue to impact insurance coverage moving forward. With employees performing their jobs in a similar manner, yet at times doing so from home, the sensitive nature of their work may require additional cyber security measures.
While network cyber security systems may already be in effect for remote work locations, this type of business insurance can help to protect companies from the unavoidable hazards associated with cyber crime, regardless of where their employees are working at the time.
Home Offices
For those employees who may be making a more permanent shift to remote working environments, in addition to having the necessary cyber security, they will also want to have protection in place to account for their physical work space and business assets.
First of all, having professional liability insurance will be beneficial should businesses be faced with financial losses associated with potential client lawsuits. These costs can be high, and this form of business insurance can greatly contribute to preserving a company’s future financial position.
Since employees may be keeping inventory and equipment at home, in order to perform their duties, then this may also require addition coverage in the form of property insurance. Should there be a need to replace expensive equipment, or should the workspace, itself be damaged, having insurance to properly cover these costs will be extremely important.