Not every business needs every policy, but these Core Policies address the most common and impactful risks faced by over 80% of the businesses SRA serves. Each policy is designed to protect cash flow, operations, and leadership when unexpected disruptions occur. Together, they form the foundation of a well-structured 831(b) Plan.
Key Employee Loss – Accident & Critical Illness
When a full-time employee is suddenly unable to work due to a serious illness or accident, the ripple effects can be significant. This policy covers lost income, temporary staffing, and replacement or training costs, helping the business remain stable during a critical personnel disruption. It is especially important for companies that rely on key individuals whose absence would immediately impact operations.
Third Party Business Interruption
Many businesses depend on vendors, utilities, or technology providers to function. This policy covers lost income when a third party experiences a disruption—such as a fire, cyber event, utility failure, or software outage—that prevents your business from operating. It ensures continuity when problems occur outside of your direct control.
Data Breach Liability & Interruption
This policy protects against both operational and financial fallout from cyber incidents. Coverage includes lost income from system downtime, legal defense costs, regulatory fines, lawsuits, and certain fraud-related losses tied to a data breach or cyber attack. For businesses that store sensitive data or rely on digital systems, this has become a core necessity rather than an optional add-on.
Directors and Officers (D&O)
Leadership decisions can lead to lawsuits, investigations, or regulatory scrutiny. This policy protects directors and officers by covering legal defense costs, settlements, and judgments related to claims such as mismanagement, breach of fiduciary duty, or regulatory violations. It ensures decision-makers are personally protected while guiding the company forward.
Employer Liability & Interruption
Employment-related disputes can arise even in well-managed organizations. This policy covers legal costs, settlements, and related losses stemming from claims such as wrongful termination, discrimination, or retaliation. It provides protection beyond standard EPLI coverage and helps safeguard business operations from costly HR-related disruptions.
How This Fits Into the Plan
These Core Policies represent the most commonly selected protections within SRA’s 831(b) Plans. While additional options are available to address industry-specific or emerging risks, this core group forms the baseline for protecting income, leadership, and operational continuity.
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