As a business owner or executive, it’s likely that you’ve taken great care to minimize your business liability risk exposures with comprehensive commercial insurance packages. However, there are several common yet often overlooked scenarios that may be putting you at risk without your knowledge.
Consider these three business liability risk exposures that may not be covered by your standard general liability, commercial property, or other commercial policies.
1. International Travel & Car Rentals
In the US, renting a vehicle is pretty straightforward, and your employees’ car rentals are generally covered by either your commercial auto insurance policy or a benefit associated with your company credit card. However, when it comes to international travel, you may be surprised to find that your employees aren’t covered the way you assumed.
Before sending your employees overseas on business, be sure you understand the specific requirements of the countries in which they’ll be driving and instruct employees on the choices you’d like them to make at the rental counter. Otherwise, you may find your company is left financially responsible for property damage, injuries, and/or loss of life if an accident were to happen.
2. Mergers & Acquisitions
Mergers & Acquisitions (M&As) are incredibly complex, and it’s easy to overlook the topic of insurance as the intricate business deal starts to near its completion. Before finalizing your M&A deal, be sure to inquire about any liability you may be inheriting.
Here are some important insurance-related questions to consider:
- Have you coordinated with your insurance agent to ensure any additional named insureds can be added to your primary policies in a timely manner?
- Will coverage for the newly acquired entity coincide with the acquisition date? What options do you have if there will be a delay?
- Does the company you’re acquiring have existing contracts or commitments that would carry business liability risk exposures for your company?
- Are there past, current, or potential future claims you need to plan for?
3. Global Expansions, Partnerships & Sales
There’s not an international standard when it comes to insurance coverage. So, when your business ventures and interests cross borders, it’s essential to discuss your evolving business liability risk exposures with your insurance agent – as it may be time to consider a global policy.
Keep in mind that “global interests” may take many various forms – including having subsidiaries in different countries, owning or leasing property in a different country, having employees who regularly travel or live outside the U.S., or simply selling products or services to global customers. For example, you may not consider yourself to be an international business, but if you have customers in the EU, your cyber liability insurance needs to cover issues related to GDPR Compliance.
Get Expert Guidance on Managing Your Business Liability Risk Exposures
From complex scenarios (like M&As and conducting business globally) to more common situations (like an employee providing first aid at work or chartering a boat for a work event), there are business liability risk exposures that may not be covered by your standard policies. So, it’s essential to work with an insurance agency who you can fully trust.
At Swarts, Manning & Associates, we provide a unique perspective on all of your commercial coverage options, and we help to determine which carrier best fits your business needs. We strive to find you the broadest coverage at the best available rate. Give us a call to get started: (833) 878-2820.
Each week, Swarts, Manning & Associates covers relevant topics for your business. Stay tuned to hear more discussions about managing your insurance and industry-specific tips.
