Our failure to get their marketing campaign out on time may cause our clients to lose revenue. Doing business has always been risky, but as more small-business owners are finding, basic insurance may not do the trick in the global New Economy. While employee lawsuits aren't exactly new, they're on the rise, and you're more likely than ever to get hit with a big one. They're also coming out with more affordable versions of existing products, such as liability insurance to protect against employee lawsuits and policies that cover various global risks. The timing is no accident.
Insurers face their own new risks under deregulation, and competition promises to get brutal.
This spring, the Financial Services Modernization Act takes effect, letting banks and brokerages compete with traditional insurers. State restrictions are easing, too. Meanwhile, small business is looked on as a ripe market. That said, new competition should bring lower prices and stepped-up service. Some of the new products clearly have value, depending on your industry and your state's regulations.