You’re riding high. Revenue is up, employees are happy, sales are flowing in, and you are even thinking about expanding. Suddenly, tragedy strikes: a hurricane, financial crisis, fire, or a disgruntled former staffer drags you down the litigation spiral. Would you be prepared? You probably have insurance, but do you have enough? Sure, a policy is important, but having the right coverage and internal contingency plans are vital.
Failing to prepare is preparing to fail. We have included a few tips below to best ensure your business is always ready for the best (and worst) case scenarios.
General liability insurance is a must, yet if you’re specialized, your coverage should be too. Tying your insurance to your individual products or services can help check every box and even limit some of the rising costs from a more “blanketed” policy.
For example, if you are on the cutting edge with a new technology system or spearheading innovative product development, make sure your patents and intellectual property are covered. Or, if you’re working closely with a client’s assets on construction, maintenance or improvements, look into errors and omissions (E&O) insurance. Mistakes can be costly—but the right insurance can be much cheaper.
Find an Agent You Can Trust:
Insurance is a complicated business with ton of red tape, upselling, and paperwork—the right agent can make all the difference in the world.
A good agent knows your business, understands the industry and has tangible experience. This person is more than just an agent, but also a partner who will be there for you in the long run.
Know Your Risks and Keep Reevaluating:
The breadth of insurance products may tempt you to buy more than what your business needs. Taking stock of all your risks can help refine your focus and recognize your exposure. From employees to equipment to inventory to data, it may be daunting to consider all of the avenues that could lead to a potential lawsuit, but this exercise is critical to ensuring your bases are covered. Even more importantly, frequently revisiting these risks can help save your business from a ton of headaches…and a lot of money.
Digital Protection and Data Security:
In 2007, T.J. MAXX was hit with a devastating data breach with hackers lifting consumer data including names, email addresses, phone numbers, and more. Analysts estimate that over 45.6 million credit card numbers were stolen from their internal servers, which ended up costing the company over $25 million in damages.
Much of our companies’ information lives on our computers, and these ones and zeros can be very valuable. Ensuring you have the right cybersecurity is one thing, but insuring your data in case of breach can be the extra layer of protection many companies need.
Remember, there’s no one size fits all! Just like your business, your insurance coverage should be unique to your needs. Knowing your business, sizing up your potential risks, and finding a trusted insurance partner can be the difference between a costly lawsuit and a roadmap for the future.