Congratulations, you’re launching a new business! Now what? While the period from idea to launch is exciting, it can also be quite overwhelming.
Writing a business plan, product prototypes, and working out the nitty gritty stuff like your insurance… these are all part of the package in having your own business. Here’s a quick guide to insuring your new business:
Figure out your risks
Just like no two business are the same, risks also vary from business to business so it’s important to get really specific. There are two major questions to ask yourself when figuring out your risks: What could go wrong in your business and have you got it covered?
Once you’ve got a clear idea on this, it’s easier to look into what kind of insurance you may need. Some common risks are: fire or natural disasters. Theft, stock damage, loss in transit, health and safety breach.
Then there are risks you might not realise your insurance can actually cover like your legal liability for injury or property damage caused by your products. Knowing your risks will help future-proof your business.
List what you really need
The truth is, is that there’s probably no single policy that covers all the risks you’ve identified so it’s likely you’ll be needing more than one policy to cover you. Check out this list of the types of policies you can choose from.
Make sure you understand your policy
Now that you know what kind of cover you need, ask your insurance company for a quote. They’ll be able to sort your cover out and send you all of your insurance policies. Because your policies are legal documents, you need to make sure that you understand them so read it carefully. They might contain legal terms or jargon you’re unfamiliar with, so clarify before you sign it. If you’re not sure about things like disclosure or excess, ask your insurer to explain it to you before you buy a policy.
Once your business is up and running (yay!), you’ll want to review your cover at least once a year to make sure that you’ve allowed for growth and other changes that happen when your business starts to grow.
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