It is a fact that the novel COVID 19 pandemic has made this a peculiar time. Not only because it is the first and worst pandemic in decades but also because of how it has managed to creep into and affect every sector globally and therefore your business strategy.
As such, we have compiled a list of things that you and your business are likely to encounter and have a strategy for in 2021.
RISKS AND INSURANCE
Insurance rates had begun to rise and are expected to continue rising through 2021. Nevertheless, the increase is not uniform and varies from sector to sector.
Insurance for umbrella and excess liability rose by 16.6%, auto by 14.2%, commercial property by 13.6%, professional liability by 11.7%, personal lines by 8.8%, and worker’s compensation by 4.7%. Cumulatively, all lines have had an average of 11.6% rise, according to Business Insurance.
Why the increment? The pandemic and other natural disasters have resulted in an increasing number of claims and subsequent payouts. Insurance companies are therefore compelled to increase their rates in order to go back to profitability. The Texas snowstorm will have a major impact this year as well.
Your insurance budget for 2021 should be increased. Let Starke compare your insurance rates to what other insurance companies are offering.
In 2021, businesses are expected to make technology part and parcel of their operating models.
Of top priority is enhanced IT infrastructure. IT infrastructure poises your business to use analytics and hence gain from data science and analysis, business and predictive analytics, and machine learning.
Social distancing guidelines necessitated that most workers operate remotely. The success of this model will likely facilitate its adoption in 2021, and increase technology expenditures.
Technology enables all the pre-sale, sale, and post-sale exploits to be conducted virtually. This model is gaining speed in replacing the brick-and-mortar system that has been used for ages. An online business’s success is necessary for its broad reach, availability, flexibility, and efficiency.
CHANGE AND ADAPTABILITY
As the business community, we have to brace ourselves for the possibility of Covid 19 and restrictions thereof not going away any time soon. This may just be the new normal.
Your business should strive to continue operating while strictly adhering to the Covid 19 guidelines.
While business travel may have decreased, education can continue via virtual learning. Creating safer workspaces with barriers between employees will become the new normal once working remotely becomes a thing of the past for some businesses.
At Starke, we have over 90 years of business insurance and risk management under our belt. We provide insurance for personal and commercial needs with a concentration on construction, transportation, and auto, non-profits, professional services, manufacturing, government and municipalities, healthcare and hospitality. Feel free to contact us today or call us at 334-363-5535 and we will be more than willing to assist.