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Liability Insurance for Small Businesses Is No Small Matter

Generally speaking, the insurance options for mid-size to large businesses, and corporate behemoths (we do love that word) are many. Insurance carriers, well, carry more diverse options for companies and businesses of a certain size, with some types being more easily insured than others, at least in terms of finding insurance coverage.

Small businesses tend to struggle more when it comes to shopping for liability insurance (of various types, depending on the industry) because of this. Some, but not all, insurance carriers do not have what the small business may need at an economically viable rate. In terms of finances, how a small business measures overhead costs is a little different than a corporate giant. On the one hand, it is simpler (fewer costs), but on the other, each element of cost is proportionally greater.

Diversity of coverage is essential when it comes to finding an insurance carrier (which is why we advocate using an insurance agency or brokerage firm…ahem). But, we are happy to announce that at least one carrier is expanding their repertoire for small businesses: ACE Commercial Risk Services.

But Wait…Now, There’s More!

This month, ACE Commercial Risk Services (ACE CRS) announced several new products that expand its suite of specialty commercial products for small businesses. These products are available through ACE Solutions Fast Track, an online small business underwriting and quoting platform.

They include:

  • Lessor’s risk BOP: Business owners policy (BOP) to protect owners of real estate investment property rented to others.
  • Liquor liability: Covering hospitality risks including bars, restaurants, retail stores, and nightclubs.
  • Commercial umbrella: Umbrella coverage over the ACE BOP or other approved package, auto, and employer liability carriers.
  • Employment practices liability insurance BOP enhancement (EPLI): Provides coverage for defense costs and damages stemming from various employment-related claims.
  • Privacy liability & data breach insurance BOP enhancement (Cyber): Provides coverage for attorney’s fees and damages for not properly handling, managing, storing, destroying or otherwise controlling personal information.
  • Professional liability BOP enhancement: provides ACE errors and omissions coverage on a BOP endorsement to a wide range of professional classes.

The ACE Solutions Fast Track system can pre-fill building data such as year built, construction, occupancy, number of stories, and square footage. It also includes building valuation and business personal property estimators.

Good Show, ACE CRS

This is what we like to see. Expanding coverage options will consequently (and obviously) expand coverage and reduce overall liability. One aspect of the ACE expansion that we particularly applaud is regarding cyber liability. While any business, small, large, or gargantuan, needs to provide adequate cyber-security (infrastructure and training), there still exists the risk of cyber-infiltration. There are some very talented hackers out there, some of whom will not think twice before stealing personal client/customer data, no matter how good your security is.

By providing privacy liability & data breach insurance, ACE is giving smaller businesses some more room to breathe. Business owners do their best, but sometimes it is good to have an additional safety net to prevent a dramatic downturn that could financially debilitate the company. As we know, smaller businesses are more sensitive to financial losses.