How and why to secure the business

Insurance will help you protect your business from disasters: from employee mistakes to natural disasters. We will tell you what insurance companies can offer to entrepreneurs, according to the reviews on luminablog.

Why insure your business

Starting a business inevitably involves risks. Entrepreneurs, especially beginners, cannot always predict the consequences.

All risks can be divided into two groups: external and internal. Inventory management software is a very helpful tool when it comes to insurance. External risks have nothing to do with the company’s business processes. These include:

  • the risks of increased competition;
  • changes in the economic situation;
  • man-made disasters;
  • natural disasters;
  • socio-political factors;
  • changes in legislation.

How to choose insurance services

To understand which insurance products are right for a company, you need to answer three questions:

  1. What are the business risks?
  2. What is the probability that each of them will occur?
  3. What consequences will it have and what costs will it involve?

After analyzing the situation, contact the insurer’s representative with the organization’s summary. The advantages of modern insurance lie in a wide variety of products, among which there are many chances to find the best.

What kind of insurance does a founder need?

The type of insurance that is contracted depends not least on the individual security needs and income level. But not every risk needs to be covered. There are insurance policies that should be taken out; others can be offset if the company’s earnings statement allows.

First, the risks in which the damage could have the greatest financial consequences for the company should be covered. Then it is the turn of the risks that can cause damage. Before applying for offers, you need to know where the main risks are, ie where the biggest damage could occur.

Risks that may threaten the company’s existence must be covered in any case and a ranking should be established for all other “lower” risks. Of course, offers should be obtained from various insurance companies, some companies offering complete packages with reduced premiums. In practice, the following applies: Both operational and personal risks must be taken into account.

Corporate insurance and sales channels

Depending on the company, you should take a closer look at the different insurances:

  1. Property insurance: protects against the loss of substance in buildings, goods, installations, data carriers, etc. This includes insurance against fire, burglary, storm damage, water damage, damage to machinery or electrical equipment, and computer insurance.
  2. Financial loss insurance: covers lost income (for example, due to periods of machine failure) or additional costs (for example, legal fees) due to damages. Examples in this sense are public liability, legal protection of the company, business interruption (in case of illness, accident, fire, damage to the car, etc.).
  3. Personal insurance: Applies to business owners, shareholders, or employees and can be contracted in addition to legal social insurance with private insurance. Examples of this are life, health, and accident insurance.

The insurance can be sold through various distribution channels. Your contacts are employees of insurance companies, but also especially independent insurance agents and insurance brokers. The insurance agent provides his service on behalf of the insurance company he represents. The insurance broker usually works for free and collects the commission from the insurance company. You will be charged a fee for the consultation.