While these are responses from large corporations, we take away many applications for medium and small businesses. Here are some of the risk issues for 2021. According to a recent AMEX survey, 92% of businesses pivoted last year, and 76% of small businesses believe they will need to pivot again in 2021. The 2021 pivot may have a different nature, however. 2020 pivots were mainly adjustments to shock changes in customer demands due to safety measures.
- Cyber Liability- Cyber liability and data theft is one of the hottest topics for businesses, risk managers, and insurance companies.
- Employee Safety- Making sure your business follows all COIVD compliance protocols will be a top priority.
- Remote workers- In 2021, remote working and safety measures should become more routine. How businesses recruit, onboard, train, and terminate employees has changed, some say permanently. How businesses are dealing with employee burnout, talent management, and allocating will need to be addressed.
- IT security- Remote workers will require new IT protocols.
- Slow economic recovery- Businesses will need to do planning to manage the recovery in 2021.
- Government mandates and regulations - There continues to be increased oversight from the government in healthcare and financial reporting that creates new risk and liability for businesses.
- Political and Civil Issues - As seen in 2020, political and civil issues have a direct impact on many small businesses. Having the right kind of business insurance is important to protect your business in the event of civil riots.
- Business Interruption - If your business has a loss and you are unable to operate for a period of time, you will need financial resources in order to get back in operation. You may even need to continue payroll for a period of time. Business interruption insurance can provide these resources.
- Class actions and COVID-19 cases- This year has also seen the first class-action lawsuits directly related to COVID-19. Examples include lawsuits against cruise lines that suffered coronavirus outbreaks, as well as suits regarding the business impact of COVID-19 on companies’ financial performance or operations and misrepresentations about COVID-19-related therapies.
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Sources: Forbes, Insurance business