Risk

Spark Team

No one can insulate their business from every possible challenge or crisis. However, by investing in lesser-known insurances, your business can be prepared for when accidents do happen.

When running a business, protecting assets and operations is critical to sustaining long-term success. Having the right business insurance in place can help you, your employees and your customers feel more safe and secure.

While general liability and property insurances are common staples of most company insurance plans, many business owners overlook some of the more specialized policies that can really make or break their future.

Let’s dive into four “under-the-radar” business insurances you and your company should seriously consider – so you can take protecting you and your assets to the next level.

Cyber liability insurance

“Most people might say ‘well, I have a really good antivirus program installed on all of our work computers, so that’s enough,” says John Swartz, licensed agent at Automatic Data Processing Insurance Agency, Inc. (ADPIA^®) and vice president of ADP^{®. “However, that’s only one small portion of the battle against cybercriminals.”}

In today’s digital landscape, data breaches and cyberattacks are no longer rare occurrences – they’re an everyday threat. According to IBM, the average global cost of a data breach last year was nearly $5 million – the highest average ever. Further analysis points to new-age threats like shadow data – which is harder to track – as a top cause for concern.

That’s where cyber liability insurance can help. It protects a company from financial losses caused by these online incidents. Under most policies, the insurance can cover costs associated with not just the data breaches – including notification of affected parties and credit monitoring services – but also with legal fees and penalties that arise from data privacy violations, as well as business income lost due to system downtime related to the cyberattack(s).

Business interruption insurance

Imagine a fire or natural disaster shutting down business operations for weeks or even months. Such an incident would be devastating to most organizations. According to the latest data, business disruptions increased by roughly 30 percent last year. Top causes included factory fires and extreme weather, such as hurricanes, flooding, forest fires, and tornadoes.

Business interruption insurance provides a financial cushion to stay afloat and keep normal operations going during these uncontrollable situations. For instance, a business interruption policy can help not only cover lost revenue, but also with ongoing fixed expenses (e.g., rent and utilities). If the business needs to temporarily relocate, funds may also be available for that purpose.

“A temporary closure doesn’t mean the bills stop coming,” suggests Swartz. “But a good business insurance policy will help bridge the gap between the disaster and a solid recovery.”

Product liability insurance

“In today’s consumer-driven marketplace, even a minor product issue can escalate quickly,” adds Swartz. Whether it’s a design flaw, manufacturing defect, or a faulty warning label, businesses can face significant legal and financial consequences without proper coverage.

With product liability insurance, companies that make, distribute, or sell products can rest easier knowing that their decision to purchase the insurance can help with things like legal defense costs in any product-related lawsuits; medical expenses or settlements arising from injuries caused by a faulty product; and other associated damages to persons and/or equipment.

“Even when taking every single precaution to ensure product safety,” summarizes Swartz. “There’s always a chance that something can go wrong. Investing in PLI shows that a simple product mishap won’t stop you from serving your employees and customers.”

Tools and equipment insurance

For businesses that rely on specialized tools and equipment, a breakdown or theft can grind normal operations to a halt. “Unexpectedly having to replace equipment out-of-pocket is a budget-buster,” adds Swartz. “Being ready for a breakdown before it happens is the best way to help fix it when it does.”

Tools and equipment insurance is one area of protection that can help ensure costly repairs or replacements to damaged, stolen, or vandalized equipment won’t strain the budget or disrupt normal work. Some may argue, “I already have commercial property coverage;” however, those policies usually won’t protect tools in transit or any business equipment that’s stored at a worksite or storage facility.

A business may be a candidate for tools and equipment insurance if it operates in a high-risk environment where accidents or unforeseen incidents are more likely to occur, such as a construction site or as a traveling repair and service business (e.g., computer repair tech).

Now is the time to invest

“Business owners have a lot on their plates and minds already,” states Swartz. “Sure, some of these lesser-known insurances aren’t always high on their list – but they should be.”

Cyber liability, business interruption, product liability, or tools and equipment insurance could play a crucial role in preparing a business for and recovering from setbacks that could otherwise derail operations.

If you’re interested or unsure if they’re right for you and your business, Swartz suggests reaching out to licensed professionals like those at ADPIA. Discussing your individual business needs with a licensed insurance broker, agent, and other professionals can help you to stay compliant with laws and regulations, as well as get the most out of your insurance plans.

“Peace of mind is one of the best investments you can make as a business owner,” concludes Swartz. “Having insurances that most overlook could be the difference between being open for business or losing everything that the team worked so hard to achieve.”

To learn more about protecting your employees and your business with insurance, check out ADP® affiliate, Automatic Data Processing Insurance Agency, Inc. (ADPIA®), for the latest in business insurance offerings.

_{Automatic Data Processing Insurance Agency, Inc. (ADPIA) is an affiliate of ADP, Inc. All insurance products will be offered and sold only through ADPIA, its licensed agents or its licensed insurance partners; One ADP Blvd. Roseland, NJ 07068. CA license #0D04044. Licensed in 50 states. Certain services may not be available in all states with all carriers. Some carriers may charge an additional fee for services. This information is not intended as tax or legal advice. If you have any questions, contact a tax or legal professional. ADP, the ADP logo and ADPIA are registered trademarks of ADP, Inc. Copyright © 2025 ADP, Inc. All rights reserved.}