With a new administration on the horizon, political, social and economic uncertainty risks can impact your operations and finances. According to a recent report, 70% of global businesses are concerned with heightened risks during election years.

Explore our forecast of unique risks during politically charged periods and practical strategies to protect your business’ assets and operations. 

Common Election Year Risks

Political & Regulatory Uncertainty

Presidential candidates often signal their future actions that can have extensive risk implications. Here’s what to watch for:

• Trade Policies: New tariffs or trade agreements can disrupt supply chains, impacting the availability and cost of materials.
• Regulatory Environment: Shifts in environmental, labor and safety regulations can alter your compliance expenses and operational strategies. New regulations might require additional coverage or higher limits.
• Economic Policies & Market Instability: Stimulus packages and infrastructure investments can impact property values and replacement costs. Economic fluctuations may increase crime rates, while market instability might lead to cost-reduction measures that heighten liability risks.
• Labor & Employment Law Changes: Changes in minimum wage laws, employee classifications and labor regulations can increase operational costs and potential legal disputes.
• Cybersecurity & Data Privacy: Increased regulations can raise compliance costs and require significant technology investments. 
• Health Care Policy Changes: Changes in health care regulations can affect employee benefits and liabilities. Additionally, new health care policies may result in increased costs for workers' compensation through heightened medical costs and claims.

Civil Unrest & Protests

Regardless of the election outcome, the threat of civil unrest is real. Protests and riots can lead to:

• Vandalism & property damage
• Theft & looting
• Business disruptions
• Safety concerns for employees & customers

Cybersecurity Threats

Election years often see an increase in cyberthreats targeting businesses and critical infrastructure with:

• Data breaches
• Ransomware attacks
• Disinformation campaigns

Protect your business from election-year threats and ransomware. Download our comprehensive Ransomware Survival Guide now to stay ahead of risks and secure your operations.

Supply Chain Disruptions

Political tensions can lead to changes in trade policies and tariffs, disrupting supply chains and impacting operations and financial stability. Global trade relations could face significant shifts with over 60 countries holding national elections this year.

Your Election Year Risk Protection Playbook

Stay ahead of potential election-year risks with these proactive strategies:

Enhance physical security.

• Install or upgrade security systems including cameras and alarms.
• Reinforce entry points with sturdy locks and impact-resistant windows.
• Consider additional security personnel.

Upgrade emergency response plans.

• Create clear protocols for various scenarios.
• Establish a communication chain of command.
• Regularly review and update plans.

Train employees on safety.

• Conduct emergency drills and workshops.
• Teach de-escalation techniques.
• Emphasize situational awareness.

Boost cybersecurity.

• Strengthen irewalls and regularly update software.
• Educate employees about phishing attempts.
• Back up critical data.

Stay informed.

• Monitor local political events.
• Maintain communication with law enforcement.
• Join business community networks.

Conduct risk assessments.

• Identify vulnerabilities specific to political events.
• Evaluate political election outcome impacts.
• Prioritize risks based on likelihood and impact.

Implement risk management strategies.

• Create strategies for policy shift risks.
• Develop contingency plans.
• Consider diversifying operations or supply chains.

Ensure business continuity.

• Plan for possible disruptions.
• Test and refine continuity plans regularly.

Engage in scenario planning.

• Prepare for various policy outcomes.
• Conduct tabletop exercises.
• Adjust business strategies based on likely outcomes.

Partner with your insurance broker

• Review that your coverage is adequate.
• Understand political risk and civil unrest coverage.
• Discuss emerging risks and potential coverage gaps.

Insurance Considerations: Your Safety Net

During a presidential election year, consider these key property & casualty insurance coverages:

• Political Risk: Protects against physical damage and business interruption from politically motivated violence and civil unrest.
• Terrorism: Safeguards against property damage and business interruption from terrorist acts.
• Business Interruption: Offsets losses from temporary closures or disruptions.
• General Liability: Ensures coverage for liability claims from heightened public and political activity around business locations.
• Commercial Property: Covers damage from politically motivated actions.
• Cyber Liability: Enhances protection for politically motivated cyberattacks.
• Directors and Officers (D&O): Protection against regulatory and compliance risks.
• Workers’ Compensation:  Ensure employee safety and increased risk of injury and stress.
• Event Cancellation:  Protects against event cancellations due to political instability

We’re Here to Help: Your Partner in Business Resilience

As presidential election years bring unique challenges to the business landscape, proactive risk management becomes crucial. By understanding the potential risks, implementing robust security measures and securing appropriate insurance coverage, your business can better weather the uncertainties of these politically charged periods.

Don’t wait for the storm to hit. Act now to protect your assets, employees and financial future. Connect with a member of our team for a complimentary election-year business resilience assessment. Our team of experts can help you identify vulnerabilities and create a customized protection plan.