Crisis Plan: What If…?

Apr 1, 2026

Urgent, unforeseen challenges crop up all the time. Whatever your interests, and whatever news you consume, it’s easy to spot information about major brands getting caught in the crosshairs of public opinion downtowns, reputational harm, contractual arrangements gone awry, irrational expectations, faulty products and more. Here’s the thing though, these kinds of crises impact small businesses too. What’s your game plan?

Kick The Can Is Not A Plan

Small business owners know we should have carefully thought out and resourced protocols for all the “what if” scenarios that could strike, but given the whirlwind nature of daily demands, we tend to play “kick the can” when it comes to crisis planning. As Tara Goodwin at Fast Company points out however, we’d do best to take heed of how failing to plan for things going wrong hits even well-established brands hard:

What do Marriott, Peloton, and Major League Baseball (MLB) have in common? Each has recently navigated a major crisis in the court of public opinion. Marriott’s licensing agreement termination with Sonder left guests stranded and fuming mid-stay. Peloton announced its second product recall in just two years. And the MLB is the latest major sports organization whose players have been swept up in sports betting scandals. Crisis is everywhere. And while big brands may dominate the headlines, smaller companies face equally urgent situations. Regardless of a company’s size, leaders must be prepared when the ever-turning wheel of misfortune lands on their spot—because it will….Failing to prepare can shatter reputations, destroy careers, and cripple revenue in a matter of moments.

The wisest approach for business owners to take is to shift from the“if a crisis occurs,” mindset to a “when a crisis occurs” perspective. In other words, embrace the inevitable by putting a plan in place for the day that you need it–and it will come. Specifically, Goodwin suggests preparing for the unknown by creating a crisis plan and team, getting “comfortable with the uncomfortable,” and “learning how to recognize a crisis” at your business, and offers these tips:

…The crisis team is a designated group of people from inside and outside an organization that assembles at a moment’s notice when crisis hits to help gather the facts and take appropriate action….A crisis team…should include representation from…IT, legal counsel, communications, HR, and finance….Smaller companies can have as few as three individuals on their team—you should never try to navigate a crisis alone.
…Envisioning worst-case scenarios and developing a risk profile enables the development of a crisis management strategy before one hits. Worst case scenarios can range from a data breach that compromises proprietary information to an on-the-job employee injury.
Crises often catch leaders off guard because the buildup that caused them goes unrecognized. Most crises are the result of an unsolved business problem … .Business problems that commonly lead to crises include weak security that invites cybercrime, failing to prioritize employee safety resulting in death or injury, or a lack of succession planning….

Another critical aspect of crisis management planning is of course having the right insurance in place to help shoulder the cost of things going wrong. While large companies typically have layers of insurance protections in place, smaller businesses too often put off insurance because of the cost. Unfortunately, failing to have the right coverages in place can turn out to be a business-ending disaster. But the good news is: Colonial Surety Company is making it possible for every professional, at every stage of business development, to affordably protect themselves and their growing enterprises. We make protection right sized, efficient and cost effective for businesses of every size. Our insurance options for businesses and their owners include:

Professional Liability (E&O) Insurance to shield you from allegations that your professional services or advice caused a client financial harm. For consultants, accountants, real estate agents, notaries, and countless others, professional liability insurance is a non-negotiable layer of protection.

General Liability Insurance covers everyday risks like third-party bodily injury or property damage that occurs on your business premises or as a result of your operations. Think of a client tripping on your property or an employee accidentally damaging a client’s equipment.

Business Owner’s Policy (BOP) conveniently combines liability and property insurance to protect against many of the risks commonly associated with running a business, such as property and equipment damage, customer injuries, and defense in the event of a related lawsuit. If a fire, theft or other covered disaster strikes, BOP provides coverage for computers, furniture and other property damages too.

Cyber Liability Insurance: Cybersecurity threats impact all businesses, making it critical to mitigate the damage and ensure obligatory investigation and notification procedures are implemented. That’s why Colonial Surety Company includes $50k of cyberliability insurance at no extra cost with most first-time purchases of liability insurance policies. Higher limits are available depending on your business needs. Colonial Surety’s cyber liability insurance arms you with response protocols and notification services that comply with regulations, as well as protection against lawsuits and regulatory actions.

At Colonial Surety Company, we make it easy and speedy for business owners to obtain insurance coverages, as well as the surety and fidelity bonds required in many fields. Just choose your coverage, get an instant quote, then complete your information, purchase, and download your digital policy in minutes.

Protect your business from all the unknowns with right-sized coverage from Colonial Surety Company:

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