What Insurance Blind Spots Could Put Your Business at Risk? | Joe Stroot & Art Sordo
Firing The Man · with Joe Stroot & Art Sordo · August 25, 2026 · 43 min
Summary
Protect your growing e-commerce business by understanding critical insurance blind spots. This episode reveals common pitfalls like underinsured business interruption and outdated coverage, emphasizing the need for robust product liability and standalone cybersecurity insurance. Learn how to proactively manage risks beyond a "check-the-box" approach to safeguard your assets, employees, and operations, especially in the digital landscape.
Key takeaways
Regularly review and update your insurance coverage as your business grows (e.g., increased revenue, employees, new product lines, physical locations) to avoid being underinsured during a claim.
Prioritize robust standalone product liability insurance for physical products and cybersecurity/data breach coverage, as "throw-in" package endorsements are often insufficient for e-commerce risks.
Don't underestimate the importance of business interruption insurance; ensure it adequately covers potential income loss for extended downtimes, including contingent business interruption for key third-party service provider outages (hosting, payment processors, fulfillment).
Engage an integrated advisory firm that understands the interconnectedness of insurance with other business pillars like M&A, employee benefits, and capital markets to provide holistic risk management.
Be proactive in discussing business changes with your insurance advisor rather than waiting for annual renewals, as new territories, subsidiaries, or increased inventory significantly alter risk profiles.
One fire, one ransomware click, one product claim, or one auto accident can turn a growing company into a cash-flow crisis overnight and most founders don’t find out they’re underinsured until the day they need the policy to perform. We sit down with Art Sordo (VP) and Joe Stroot (Client Advisor) from Centered Partners to talk about how business owners can protect what they’re building without treating insurance like a once-a-year box to check. We get practical about the blind spots that sho...
What does this episode say about founder & leadership?
Regularly review and update your insurance coverage as your business grows (e.g., increased revenue, employees, new product lines, physical locations) to avoid being underinsured during a claim.
What does this episode say about supply chain & operations?
Prioritize robust standalone product liability insurance for physical products and cybersecurity/data breach coverage, as "throw-in" package endorsements are often insufficient for e-commerce risks.
What does this episode say about finance & fundraising?
Don't underestimate the importance of business interruption insurance; ensure it adequately covers potential income loss for extended downtimes, including contingent business interruption for key third-party service provider outages (hosting, payment processors, fulfillment).
What does this episode say about founder & leadership?
Engage an integrated advisory firm that understands the interconnectedness of insurance with other business pillars like M&A, employee benefits, and capital markets to provide holistic risk management.
What does this episode say about founder & leadership?
Be proactive in discussing business changes with your insurance advisor rather than waiting for annual renewals, as new territories, subsidiaries, or increased inventory significantly alter risk profiles.
