Expanding Your 831(b) Plan: 9 General Risk Policies to Fortify Your Business
In today’s unpredictable and fast-evolving business environment, risk is never one-size-fits-all. While some exposures are specific to a company’s industry, others, such as cyber threats, employee disputes, and supply chain interruptions, are nearly universal. Yet many of these “general” risks remain underinsured or completely uncovered.
At SRA 831(b) Admin, proactive risk management is the cornerstone of business resilience. That’s why we’ve developed a flexible suite of General Risk Policies designed to enhance your 831(b) Plan—offering targeted protection where traditional insurance often falls short.
These nine General Policies address the most common, high-impact risks across industries. Integrating them into your plan helps you self-insure strategically, giving you broader financial control and operational peace of mind.
1. Key Employee Accident & Critical Illness
What it covers: If a critical team member is seriously injured or becomes ill, this policy helps cover lost income, temporary staffing, and recruitment or training of a replacement.
Why it matters: Your business shouldn’t grind to a halt because one key person is suddenly unavailable.
2. Third-Party Interruption
What it covers: Losses caused by disruptions from third-party vendors, service providers, or platforms, such as outages, cyberattacks, or infrastructure failures.
Why it matters: You can control your own systems, but external dependencies can still bring operations to a standstill.
3. Data Breach & Loss of Income
What it covers: Income loss and liabilities stemming from data breaches, including legal fees, regulatory fines, system restoration, and electronic funds transfer fraud.
Why it matters: Cyber incidents can be just as damaging as natural disasters, often with more lasting effects.
4. Directors & Officers (D&O)
What it covers: Legal costs, settlements, and judgments from claims of mismanagement, regulatory breaches, or fiduciary duty violations against company leadership.
Why it matters: As your company grows, so does the scrutiny of its decision-makers.
5. Employer Liability
What it covers: Supplementary protection for claims like discrimination, wrongful termination, and retaliation, beyond what EPLI typically provides.
Why it matters: Even the best HR practices can’t prevent every dispute. This coverage provides a financial buffer.
6. Professional Liability
What it covers: Defense and damages related to claims of negligence, errors, or omissions in the delivery of professional services or advice.
Why it matters: A single miscommunication or missed expectation can trigger significant legal exposure.
7. Coinsurance Gap
What it covers: The shortfall in property insurance claims caused by undervaluing assets, often triggered by coinsurance penalties after events like fire, theft, or water damage.
Why it matters: Don’t let a paperwork oversight undermine your ability to recover from property loss.
8. Business Credit Default
What it covers: Financial losses due to customer or partner defaults, including nonpayment, breach of contract, or bankruptcy.
Why it matters: Businesses with large receivables or long payment cycles are especially vulnerable to income disruption.
9. Representations & Warranty
What it covers: Financial protection from inaccurate statements or omissions in business deals, especially during mergers, acquisitions, or ownership transitions.
Why it matters: Deals don’t always go as planned—this policy helps cover the consequences when they don’t.
Strategic Protection for Real-World Risks
Each of these nine General Policies fills a critical gap in today’s risk landscape. When incorporated into an 831(b) Plan, they empower businesses to prepare for the unexpected with greater financial control, continuity, and resilience.
An 831(b) Plan isn’t just a tax strategy, it’s a powerful risk management tool. Tailoring your plan to reflect your actual exposures ensures you’re not just surviving uncertainty, but confidently navigating it.
Let’s Build a Smarter Risk Strategy—Together
Whether you’re a business owner seeking more robust protection or an advisor supporting clients in risk planning, our team is here to help. We’ll guide you through policy selection, plan design, and administration to ensure your 831(b) Plan is both compliant and customized for long-term success.
➡️ Connect with us to explore how General Policies can support your risk strategy.