Originally published August 2025.
The economy is in constant flux. At the end of 2025, the Bureau of Economic Analysis stated that the recent contraction in GDP and ongoing inflation concerns highlight the complexities and challenges facing economic recovery. More recently, global conflict has disrupted energy markets, causing the cost of oil to surge, according to the article Crude Oil Prices Surge on Signs Iran War Will Persist. Market-based measures of inflation expectations are increasing, as is the cost of living, driving consumer confidence to an all-time low, as outlined in the Economist article The US Economy Under Donald Trump.
With so many factors influencing the economic landscape, it can be difficult to predict exactly what comes next. That uncertainty makes proactive planning and risk mitigation vital for operational resilience.
Fortunately, the US economy is not yet in a recession as of July 2026; real GDP increased at an annual rate of 2.1% in the first quarter of 2026, according to the Bureau of Economic Analysis. The Fed’s June 2026 projections put 2026 real GDP growth at 2.2%, unemployment at 4.3%, personal consumption expenditure (PCE) inflation at 3.6% and core PCE inflation at 3.3%, as detailed in Recession 2026: What to Watch and How to Prepare.
While the economic situation remains fluid, with various factors influencing the landscape, it can be challenging to know the impact that these economic changes could have on your business and, more so, knowing how your business can weather these fluctuations.
What Is a Business Continuity Plan?
While the economy and global factors are out of your control, how your business plans to ride the waves of prosperity and downturn can be well managed and fine-tuned for success. This is often referred to as a business continuity plan. This overall plan should be tailored to your needs and include key tools that can help you manage risks that could arise. Mitigating risks before they cause serious financial, reputational or personnel problems is critical in ensuring the survival of your business.
What are some tools to help mitigate risk that can be part of a business continuity plan? And what are some business continuity strategies? Here are a few examples of types of insurance products that could be helpful to your business and how they could work to mitigate risk.
Business Interruption Insurance
Business interruption insurance covers loss of profits or increased expenses due to an insured event that interrupts a business’s normal operations, per Aon. This type of insurance can be a stand-alone policy or an optional coverage section on other policies. While you may already have a policy in place that helps you replace physical items that could cause interruption in day-to-day operations, you may not have a policy in place that covers lost profits while your business is recovering.
Your small business experiences a break-in, and your property is stolen and significantly damaged, causing you to close your business for a week while the repairs are done. Typically, theft policies would cover the damage and replace stolen items but would not cover the loss of profits your store would suffer while closed for a week for repairs.
Business interruption insurance makes sure that your profits are protected if a covered event causes you to stop day-to-day operations, providing business continuity.
Employment Practice Liability Insurance
Employment practices liability insurance (EPLI or EPL insurance) provides coverage to employers against claims made by employees alleging:
- Discrimination (based on sex, race, age or disability, or another protected class).
- Harassment.
- Wrongful termination.
- Other employment-related issues.
While large corporations typically have EPLI coverage in place and are ready to combat most types of employment-related lawsuits, small and midsize businesses may not be as equipped. Importantly, small and midsize businesses can be susceptible to these kinds of claims, and the financial repercussions could be detrimental to the bottom line.
You own a contracting business and an employee requests accommodation from an illness and her manager denies it. This employee’s illness worsens due to lack of accommodation and the employee misses several days of work, resulting in the manager terminating the employee for absences. The employee then sues the business for violating the Americans with Disabilities Act, requiring your business to pay close to $100,000 to settle the lawsuit.
Though you never expect to be sued by a current, prospective or former employee, the reality is that it is possible. An EPLI policy can make sure that you’re protected if a legal situation arises and promotes business continuity.
Trade Credit Insurance
Trade credit insurance is a financial safeguard for your business, protecting against the risk of customer nonpayment. This tool’s main role is to help facilitate international trade. Trade credit is offered by vendors to their customers as an alternative to prepayment or cash-on-delivery terms, providing time for the customer to generate income from sales to pay for the product or service.
While trade credit insurance is known for protecting foreign or export accounts receivable, it is also used for domestic accounts receivable protection. Domestic trade credit insurance provides companies with the protection they need as their customer base consolidates, creating larger receivables to fewer customers.
You’ve conducted international business with a customer for many years and haven’t had payment problems. However, due to high tariffs and economic problems, this customer had to file for bankruptcy and can no longer pay. With a trade credit insurance policy in place as part of your business continuity plan, you would be able to recover this unpaid debt with minimal management costs.
The Benefits of Working with an Insurance Broker
There are many tools that can help you and your business mitigate risk and ensure longevity — the trouble is knowing exactly which risks you face and the tools to mitigate them. Working with an insurance broker can help connect you with the right tools and resources for your business.
We start with a total business analysis, uncovering the depth of obvious risks and revealing risks you may not have even considered. From there, we work with you to learn more about the goals and strengths of your business. More than just an insurance broker, we partner with you to create a comprehensive business continuity plan that combines data with strategy and helps ensure you’re set up for whatever challenges your business might face.
