Have you recently started your own business, or will you embark on this adventure soon? Well done! But… have you thought about your insurance? Protecting your business effectively is just as important as a well-crafted business plan! Discover our five tips for making the right choices.
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Integrate Your Insurance Into Your Business Plan
Talking about insurance to a starter is, above all, to remind him that there is no such thing as zero risk. Whatever your field of activity, there are certain risks that it is best to consider when starting a business. Water damage, a computer virus, the air conditioning in the cold room which breaks down, a complaint from a customer after the work has been delivered, a supplier who does not keep his commitments … The list of unexpected events that could threaten the running of a business can belong. And yet, too busy perfecting his concept, developing his marketing plan, putting together his teams, and solving his administrative problems… he often forgets to protect himself adequately. Insurance can indeed seem expensive without a loss, but an uncovered loss will cost you even more! Therefore, plan for optimal protection directly in your business plan. You will start your entrepreneurial adventure on the best possible basis.
Think Carefully About Your Risks!
How to effectively protect yourself against the unforeseeable? There is no easy answer because each profession, each company has different needs! The 1st step, therefore, consists in identifying and analyzing the potential risks associated with your activity. This exercise will allow you to establish an action plan, put adequate prevention measures, and list the essential coverages from your launch. What are the essential elements for your activity: machines, computer systems, materials and stocks, premises, employees …? What are the events that could block the functioning of your activity: fire, breakage or breakdown of machines, computer hacking, theft of stock, bad weather, etc.? The more far-reaching your action plan, the more you will react efficiently and quickly to any difficult periods. This will reassure you, your customers, and your investors.
Some Insurances Are Compulsory, And Others Are Not… Sort Out!
Insuring yourself is an act of foresight that you must adopt like a reflex from the start of your business. But where to start? By compulsory insurance, of course! As an employer, you will be required to protect your employees against work accidents. Do you own vehicles? You will need to take out liability insurance. But that’s not all. Various professions (architects, doctors, accountants, tour operators, etc.) must take out specific insurance linked to their liability. And if your establishment (restaurant, café, cinema, etc.) is open to the public, insurance against fire and explosion is also compulsory. In any event, we recommend that you properly insure your premises, including your inventory, machinery, tools, and electronic and computer equipment. It is also important to insure yourself personally if you interrupt your activity due to an accident or illness.
Complete Your Coverage According To The Development Of Your Activities
Other coverages can supplement your “essential” insurance. You are starting, for example, with business interruption insurance, in a way the life insurance of your business. It aims to restore the financial situation of your business or organization as it was before the disaster. Insurance for electronic risks allows you to repair the damage quickly or replace your electronic equipment: computers and tablets, projectors, cameras, air conditioning systems, home automation systems… but also internal failures, theft during transport, and sabotage… And machine breakdown insurance ensures your machines are protected against malicious or clumsy acts by your staff during their movement, maintenance, inspection, overhaul, or repair.
Also, Remember To Cover Your Liability With Third Parties.
Due to the existence of an increasingly restrictive legal environment, your company will be more and more exposed to a possible liability initiated by your customers, your suppliers, third parties, or even your shareholders. And this can have significant financial consequences. To deal with the consequences of such a claim, do not hesitate to take out an operating liability cover which covers all the damage that may be caused in the context of the company’s activity and those caused to or suffered by your collaborators, employees, interns… under your responsibility as an employer. This guarantee also includes all activities and secondary work related to the main activity insured, such as maintenance, repair, and cleaning company buildings and facilities and participation in fairs and exhibitions. Ideal for not compromising the continuity of your activities!