4 Must have Insurance Policies for every Business for COVID 19 Lock down & Aftermath

• May 4, 2020
• LUTAKOME
• no comments

For many businesses, this year is about survival, and in the aftermath of the lock-down, an insurance check has to be done against the number of insurance policies in place to ensure that money is not spend on unnecessary expenses following occurrence of the following unforeseen incidents
The list below is not at all exhaustive, but they are worth considering for the relevant businesses.

1. Legal liability as a result of negligence: with the easing of lock-down, employers are likely to deploy their staff to make up for the lost time in an attempt to keep the annual targets on track. Just like some countries that have eased on the lock-down before there is a chance that new infections are going to be registered and if an employee is not given the necessary protective gear whilst executing their duties and thereby contracts COVID 19 and it leads to other effects, there is a thin line for a legal suit for the employer for negligence and that’s why all businesses should ensure that their employers liability coverage is up to date in order to manage this exposure.
2. Keyman insurance cover: If you run a business whose survival depends on specialised skills from one of your personnel, you are likely to suffer a loss of business flows if these key personnel is diagnosed with COVID 19 and the effect will be worse if this key person does not recover. Take an example of a paediatric centre where 70% of their patients come through preference of a particular paediatrician and absence of that particular person will definitely affect the business flow at that facility. If you don’t already have it, all all businesses relying on key people need this cover.
3. Events cancellation insurance: if you are into the business of organising events, like music shows, sports, seminars, etc; its high time you purchased an events cancellation insurance cover for your business that can replace lost cash following unavoidable cancellation of such events.
4. Cyber Risks Insurance: A number of organisations have embraced the “work from home” approach and this is likely to continue after the lock-down. This works well for businesses whose employees use computers and many have been equipped with laptops in order to keep working remotely with unlimited access to company servers.
Every tool of convenience comes with its challenges and the continued use of web applications such as zoom to conduct meetings and document sharing as well as vpn access to company servers, the risk of hacking into sensitive data is apparent.
The risks can be many but in simple terms if there is loss of sensitive data belonging to any of your business partners, you will not only lose their business and trust but you may also be sued for damages. Your only answers for these and more risks is through purchase of cyber insurance.

Which risks to your business have I left out? Let me know https://lutakome.com/qna/web-article-survey/64/