It took me a while before realizing the importance of insurance. Some may consider it a dead investment. But to successfully grow your business, it is essential to have complete knowledge of the insurance protocols.
Initially, I had a tough time understanding the different insurances. Sorting them on the basis of requirements is the next challenging step. So I have sorted out the list and made a compilation for easy access. It is essential to think from multiple angles while starting a business.
If you are planning to start a new business or already running a small business, read this article completely. I am sure this will give you ideas for making your business successful.
Although there are numerous types of insurance, let me start with the basic necessities that are the most essential.
The GLI (General Liability Insurance) mainly covers incidents causing damage to the body or property. It is no surprise that accidents can happen literally anywhere. There is no warning before the occurrence of an accident. Therefore, it is essential for businesses to incorporate insurance into the strategy process.
Successful businesses take risks but know when to cover up and protect. GLI can cover costly expenses for any mishaps that happen during office hours. Without this insurance, you will end up paying from your own pocket.
No service is 100% foolproof. No matter how carefully you work, there are always chances for an error to creep in. This Professional Liability Insurance covers your mistakes when dealing with clients or any particular customer. If there are any mistakes, the clients sue you monetarily for the loss. Again without the insurance, you would be paying out of your pocket.
I have seen many businesses go bankrupt because of such minor mistakes. So professional liability insurance is a must.
Workers Compensation Insurance provides benefits in case your employees suffer an injury or illness when at work. Circumstances like this can arise in both indoor as well as outdoor activities. Indoor work in the form of poor ergonomics or posture can cause employees to undergo unbearable pain.
Having this insurance will again save unwanted expenditures. Establishing a successful business is all dependent on savings upfront.
When I first started my company, the detailed and in-depth study helped me identify the different types of insurance that are actually essential. However, over time I was able to further understand the differences in the insurance.
Insurance is one such topic in which you should not hesitate to ask doubts. Having precise clarity is essential to successfully grow your business. There are different types of insurance which vary as per the business application.
So do not end up buying all types of insurance. The winning strategy in business lies in understanding the application of each insurance carefully. A few insurances that have high importance are as follows.
This insurance helps in recovering the lost income. However, the reason for loss should be damage to property that already has insurance coverage. This includes damage due to natural disasters or theft.
This insurance provides you coverage for all your own as well as rented equipment and office space. So in the case of theft or damage to such property, the insurance provides the cover for the cost of replacement.
This is highly important when you run IT management services. No matter how secure your systems are, there are always chances for a security breach. The confidential data of clients may get compromised. It, therefore, becomes essential for companies to have this coverage in order to ensure security.
This insurance covers the loss that happens due to improper and unprofessional use of confidential data. Also known as cyber liability insurance, this helps in notifying the impacted clients, offers credit monitoring services, and improves the business reputation.
There are multiple instances of problems that arise in the workplace. Being the founder/director, you need to take complete responsibility. However, things like harassment and discrimination happen in unexpected instances.
The insurance provides coverage in case of an employee who is facing such a situation files a legal complaint.
Being a business owner is easy. But the slim line of difference in achieving success lies in the information you are consuming. Having a thorough understanding of the various functions helps in the efficient running of the business.
Try to gain as much information as possible. Somewhere or the other this knowledge will prevent you from falling into a hole.
In 2014 I opened my office. Although I was working on multiple roles myself, I had a team of 5 members. I can proudly say that I managed most of the work myself. I put in hours of hard work and worked even on weekends.
The Logistics and Healthcare divisions had additional requirements in terms of insurance knowledge. Hiring professionals along the way helped me in easing the burden. Further while launching the IT services I was skeptical about the privacy regulations. Therefore, the first step was looking for insurance. I look back and feel proud of myself that I took the untold step and successfully built my business.
When making a strategy to grow your business it is essential to include insurance expenditure as well. This will ensure that your business growth is steady and the business performs well in the long run.
It is highly essential for owners and new entrepreneurs to understand that small businesses require insurance. The key to winning strategy in business lies in proper research and understanding various compliances.