5 Ways to Support Small Businesses During the COVID-19 Outbreak

The Importance of Supporting Small Businesses

Across the country, small businesses like restaurants, bars, coffee shops, barber and beauty shops, retail stores and more have been closing their doors in the wake of the coronavirus pandemic. Federal and state governments are working frantically to find methods to slow the spread of COVID-19 to help reduce the number of individuals affected. In many states, this means implementing social distancing, a practice of preventing sick people from coming into contact with healthy people to reduce transmitting the virus. Small businesses have been ordered by state and local governments to shut down as a means of reducing the number of people interacting with each other daily.

This is also known as “flattening the curve,” a term used to describe the success social distancing can have on reducing the influx in infected individuals who could overwhelm the healthcare system. Closing public places, canceling large events, and only allowing groups of 10 at a time to congregate in any one area are all examples of social distancing in the time of the coronavirus crisis.

To many small businesses, this means losing the customers who keep them afloat by buying their products or services throughout the year. These small businesses are a vital part of the U.S. economy, keeping money in the local communities and increasing the value of the local real estate. If the coronavirus pandemic causes them to close their doors for good, the entire country will feel the impact for many months, if not years, to come.

How to Support Small Businesses in the Time of Social Distancing

Shop local – online. Online shopping is convenient and can be done right from the comfort of your couch! While going through mega-retailers like Amazon might be your go-to, for now, change it up and buy items online from shops in your local community. Most, if not all, small business retailers have websites offering their products with a click of your mouse that can be delivered right to your door, so you’ll never have to worry about running low on your favorite items.
Purchase gift cards. Establishments like bars and restaurants who were forced to close will be suffering right now, with no patrons filling the barstools or booths. Consider buying gift cards for the businesses you visit most often to use later when they are officially up and running again.
Order takeout. Can’t wait until you can eat your favorite meals from your favorite local restaurants? Many are keeping things going by offering meals to go, and some are even providing free delivery. This is a great way to keep money going into the local community, and as a bonus, you still get to enjoy all your favorite dishes.
Increase the tip amount. Don’t forget, servers and delivery people will also be feeling the decrease in business, and many of them survive on the tips they’re now missing. If you’re ordering takeout or delivery, consider giving a little more than usual when tipping. The tip may not go right back to the restaurant, but it goes to the workers who can put it towards the essentials they may need during this slower time.
Practice patience. We’re all in this together. Don’t forget that many small businesses are most likely working with a skeleton staff, so you might have to wait a little longer for your delivery to arrive or for items to become available to purchase.

Federal and state governments have been working to reduce the economic disruption the coronavirus outbreak has caused, and the Small Business Administration (SBA) is offering low interest disaster loans to businesses of all sizes. In the meantime, there are things you can do to help keep your favorite small businesses from closing permanently after the COVID-19 crisis is under control. Five easy things you can do to support small businesses include:

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Commercial P&C Insurance

Commercial Office Space Set for a Strong Comeback

The sustained increase in demand for office space across the nation since late 2022 suggests that the market has moved past its lowest point, according to insights from the real estate technology platform, VTS. Demand for office space began to rise in late 2022 and continued into early 2023. Since then, the office market has experienced a period of stability and growth, supported by favorable economic factors, indicating a market rebound. This conclusion is drawn from the VTS Office Demand Index (VODI), which tracks unique new tenant tour requests for office properties in key U.S. markets. The VODI serves as an early indicator of future office leasing activity. According to the index, demand for office space has grown consistently over the past 12 months, closing the second quarter with a 17% year-over-year increase and a 34% rise from the VODI’s lowest point in December 2022. A significant shift in office-based employment patterns further supports the belief that demand for office space has stabilized. After reaching its peak in August 2022, office-based employment declined by 3.9% in early 2024. However, this trend has since stabilized, and employment growth has remained steady. Additionally, a recent decrease in work-from-home rates has fueled the renewed demand for office space. “They say you can only recognize a market bottom after it has passed, and the office space market is no exception. Following what we now see as the bottom, the national demand has gradually increased, though it remains susceptible to economic challenges,” said Nick Romito, CEO of VTS. “However, the growth observed in VODI over the past 18 months, coupled with positive trends in the office-using workforce, suggests that the market has reset, and the worst is behind us.” It’s important to note that this national trend does not impact all local markets equally. Cities like Los Angeles and New York City have seen healthy growth in office space demand, while markets such as San Francisco and Washington, D.C., have experienced prolonged stagnation. In Los Angeles, office space demand surged in the second quarter, briefly surpassing pre-COVID levels, driven by an increase in the average size of office spaces sought by tenants. New York City followed a similar overall pattern, though with some softness in the second quarter. Conversely, San Francisco’s demand for office space remains unpredictable, largely due to its tech-focused workforce, which continues to favor remote work more than other industries. “Markets heavily dependent on the tech sector, like San Francisco and Seattle, are on a markedly different post-COVID recovery path compared to more diversified markets like Los Angeles and New York City. It may take some time before we see office demand in San Francisco and Seattle return to pre-COVID levels,” added Ryan Masiello, Chief Strategy Officer at VTS.

Cyber Liability

Global IT Outage Puts Business Interruption Insurance in the Spotlight

In July, a global IT outage had a significant impact on business interruption insurance policies, overshadowing the effects on cyber insurance coverages. “This incident wasn’t a result of a malicious attack, which is why typical cyber insurance policies may not have been activated,” explained Peter McMurtrie, a partner in West Monroe’s insurance sector, in an interview with PropertyCasualty360.com. “Where coverage was applicable, factors like deductible amounts, waiting periods, and coverage limits played a critical role in determining the extent of exposure,” McMurtrie noted. “Standard policies for small businesses were less likely to offer coverage, while more complex policies for mid-sized companies and Fortune 500 corporations may have included broader triggers for non-malicious outages caused by third-party software issues.” The outage was triggered by a software update on July 19, 2024, by cybersecurity firm CrowdStrike, which affected organizations worldwide using Microsoft Windows. This interruption had far-reaching consequences, including disrupting hospital systems, media outlets, financial institutions, delaying thousands of flights, and halting daily business operations. McMurtrie emphasized that while the initial impact of the outage was similar for both large and small businesses, the ability to recover operations and whether insurance covered the loss of business income varied. “Larger companies are more likely to have advanced disaster recovery plans that ensure service redundancy following unexpected outages,” he added. “Their insurance programs also tend to cover a wider range of incidents.” According to Microsoft, the CrowdStrike update error affected over 8.5 million Windows devices globally. The incident highlighted the interconnected nature of our global ecosystem, including cloud providers, software platforms, security services, and their clients. “It’s a stark reminder of the importance of prioritizing safe deployment and disaster recovery across the tech industry,” the company said in a blog post. McMurtrie pointed out that the outage’s widespread impact was largely due to its effect on organizations that are critical to societal infrastructure—sectors like agriculture, airlines, banking, energy, government, healthcare, manufacturing, and retail. “Insurance companies base their risk appetite on their ability to understand and price risks appropriately. This becomes increasingly challenging with emerging threats,” he said. “However, I anticipate that insurers will respond by clarifying policy language, refining risk selection criteria, and possibly developing new products specifically designed for this evolving exposure.”

5 Ways to Support Small Businesses During the COVID-19 Outbreak