Employee-Owned, Union & Co-Op Businesses: Insurance Considerations in the Pacific Northwest

Across the Pacific Northwest, more businesses are choosing people-first models. From employee-owned companies and cooperatives to union-affiliated operations, these structures are gaining traction as organizations look for long-term stability, stronger workplaces, and shared success.

While these models offer real advantages, they also come with unique insurance considerations that don’t always fit neatly into standard business policies.

Understanding Non-Traditional Business Structures

Employee-owned businesses, co-ops, and union-affiliated organizations often share a few key traits:

• Shared ownership or governance
• Multiple decision-makers
• Increased employee involvement in operations
• A focus on long-term sustainability over short-term gains

These differences can affect everything from liability exposure to management responsibilities — and insurance should reflect that.

Liability Looks Different When Ownership Is Shared

In traditional business models, liability is usually centralized with owners or executives. In employee-owned or cooperative structures, responsibility can be more distributed.

Insurance considerations may include:

• Directors & Officers (D&O) Liability for board members or trustees
• Employment Practices Liability (EPLI) to address claims related to hiring, termination, or workplace disputes
• General Liability coverage tailored to how decisions are made and implemented

Having the right protections in place helps safeguard not just the business, but the people who help run it.

Workers’ Compensation Still Matters — Even More So

Union and worker-focused organizations often prioritize safety, training, and fair treatment. Workers’ compensation coverage remains essential, but it should align with:

• Job-specific risks
• Training programs or apprenticeships
• Multi-site or multi-state operations common in the PNW

Well-structured coverage supports injured workers while protecting the business from unexpected costs.

Property & Equipment Coverage for Shared Assets

When tools, vehicles, equipment, or facilities are shared across teams or locations, coverage needs to be clear and comprehensive.

This may include:

• Property insurance for shared or jointly owned assets
• Inland marine or equipment coverage for mobile tools
• Coverage adjustments as operations grow or change

Clear coverage helps avoid confusion when multiple parties rely on the same resources.

Cyber & Data Risk Isn’t Just for Tech Companies

Many employee-owned and cooperative businesses rely on shared systems for payroll, scheduling, communications, and member data. That can increase exposure to cyber risks.

Cyber insurance can help cover:

• Data breaches or ransomware attacks
• Business interruption due to system downtime
• Notification and recovery costs

Even organizations with strong internal trust can face external threats.

Why a One-Size-Fits-All Policy Isn’t Enough

These business models are built on collaboration — and insurance should reflect that. A generic policy may leave gaps that only become obvious after a claim.

Working with an insurance team that understands how your organization is structured helps ensure:

• Coverage matches real-world operations
• Leadership and members are protected
• The business can continue operating with confidence

Protecting the Business — and the People Behind It

Employee-owned, union, and cooperative businesses are a vital part of the Pacific Northwest economy. They deserve insurance solutions that recognize their values, structure, and goals.

At Sea Mountain Insurance, we take the time to understand how your organization works so we can help build coverage that supports both the business and the people who make it run.

If your organization operates outside the traditional mold, let’s talk about making sure your insurance does too.