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If you are preparing to start a new business, you could understandably be brimming with excitement. Still, be careful not to allow unbridled enthusiasm to cloud your company’s need for a safety net. Even if your company doesn’t end up needing it, its mere presence can be comforting.
You can never entirely rule out the possibility of unfortunate occurrences – like natural disasters, security breaches or disgruntled employees or customers – arising unexpectedly and wiping out many of your monetary takings. With the right insurance in place, you can counter these threats.
Is any particular corporate insurance legally necessary?
Some insurance products are simply a good idea; however, in your case, you might find that a certain type of insurance is mandatory by law. Hence, for both the reputation and financial health of your start-up, you can’t afford not to prioritize taking out such insurance.
You should look up the law in your own company’s jurisdiction to assess what insurance, if any, is a legal necessity. For example, if you operate in the UK and employ anyone, regardless of the number of their working hours, you must get employer’s liability insurance.
Once you have narrowed down the insurance options your firm legally requires, you can avoid being hit with government-imposed penalties that would deplete funds possibly already meager.
Twenty-first-century concerns for modern businesses
You might be familiar with “business interruption”, a term used for coverage that makes amends for money lost as a result of usual corporate operations being temporarily hindered. However, it’s not just natural disasters from which insurance could help you to recover…
It might also be necessary to watch out for the very modern possibility of a cyber attack. If much of your custom is transacted online or your company uses the internet to store sensitive information, Entrepreneur advises that you consider how much you could lose from a significant data breach.
There are ways of reducing the chances of a cyber attack happening or, at least, diminishing the adverse effects of one. You could, for example, give all of your corporate accounts stronger passwords and more closely monitor the activity on your banking accounts.
However, returning to the subject of the “safety net”, you could get one here by taking out what is called cyber insurance or CLIC – cyber liability insurance cover. It can help you to recover from an incident more quickly, so look for an insurance broker that offers this type of insurance.
Don’t go for broke, but do go for a broker
Going straight to an insurance broker can be a more time-effective means of getting urgently-needed insurance than making separate approaches to individual insurers. It can also work well in terms of keeping more money in your pocket and so helping to buoy up your company financially.
Various insurance products are available from a broker that specializes in corporate insurance. By clicking the link, you can learn more information about one such broker, Be Wiser Business Insurance, that is based in the UK.