Expanding Your 831(b) Plan: The Value of General Risk Policies
Published: Jun 18, 2025
Expanding Your 831(b) Plan: The Value of General Risk Policies
In today’s rapidly shifting business landscape, risk is anything but one-size-fits-all. While some exposures are specific to a company’s industry or model, others, such as cyber threats, employee issues, and supply chain disruptions, are nearly universal. And even these "general" risks can result in severe financial and operational consequences if left unaddressed.
At SRA 831(b) Admin, proactive risk management is the key to building resilient organizations. That’s why we’ve developed a comprehensive suite of General Policies designed to complement your core 831(b) Plan coverages. These policies address the most common, but often overlooked, operational risks businesses face today.
Below, we highlight five foundational General Policies relevant to over 80% of the businesses we serve. While not every business will require all of them, each offers critical protection against high-impact scenarios that can disrupt operations and erode business continuity.
1. Key Employee Accident & Critical Illness
What it covers: If a key employee becomes seriously ill or is injured in an accident, the ripple effects can be significant—from project delays and lost revenue to strained team morale. This policy helps cover income loss, temporary staffing costs, and the expenses of recruiting and training a replacement.
Why it matters: Whether it’s a top executive or a highly specialized team member, your business shouldn’t grind to a halt because one person is suddenly unavailable.
2. Third-Party Interruption
What it covers: Your operations likely rely on third-party vendors, logistics companies, cloud service providers, payment platforms, and others. If a vendor’s failure causes a disruption, your business could experience major setbacks. This policy covers losses tied to third-party incidents such as cyberattacks, outages, or infrastructure failures.
Why it matters: Strong internal controls are essential, but external dependencies are just as critical to business continuity.
3. Data Breach & Loss of Income
What it covers: As digital operations expand, so do the risks. This policy protects against income loss due to data breaches and associated liabilities, including regulatory penalties, lawsuits, and the cost of restoring compromised systems. It also provides protection against electronic funds transfer fraud.
Why it matters: Cyber events can be just as devastating as natural disasters, often with longer recovery timelines and broader exposure.
4. Directors & Officers (D&O)
What it covers: This policy protects your company’s leadership against claims of mismanagement, regulatory violations, and breach of fiduciary duty. It includes coverage for legal defense, settlements, and judgments resulting from lawsuits targeting decision-makers.
Why it matters: As regulatory scrutiny and stakeholder expectations rise, your leaders need assurance that they’re protected while steering the company forward.
5. Employer Liability
What it covers: Even the most diligent employers can face claims of discrimination, wrongful termination, or retaliation. This policy supplements standard Employment Practices Liability Insurance (EPLI) and covers legal costs, lost income, and settlements tied to employee-related disputes.
Why it matters: HR challenges are inevitable. This coverage helps you navigate disputes without jeopardizing your financial stability.
A Stronger Foundation for Risk Resilience
Integrating General Policies into your 831(b) Plan provides broader protection from real-world threats that can derail your operations. These policies allow your business to self-insure against common, high-impact risks, creating a more agile and resilient risk management strategy.
831(b) Plans are about more than tax efficiency, they’re a strategic tool to protect your business from the unexpected. By customizing your plan to reflect your actual risk landscape, you’re taking a proactive step toward long-term stability and success.
Ready to Enhance Your Risk Coverage?
Whether you're a business owner or an advisor supporting clients, our team is here to help you navigate the details of 831(b) Plan design and policy integration. We’ll work with you to tailor your plan and ensure it meets the evolving needs of your business.
➡️ Connect with us to explore how General Policies can support your risk strategy.