Face Business Risk and Uncertainty with Confidence
By AP Insurance
Business insurance is the cornerstone of a strong risk management plan – is your business adequately protected?
Whether you’re launching a start-up or adding the 500th employee to payroll, your business is continuously exposed to risk.
Thank you for reading this post, don't forget to subscribe!And while risk and uncertainty can’t be avoided entirely, you can plan for and reduce their potential impacts to your business.
Forward-thinking business owners recognize that reducing risk not only protects their company, but also their employees, families, and livelihood.
Why buy business insurance?
A business insurance policy safeguards your business from losses (usually financial) as a result of risks that can occur during day-to-day business.
Depending on what your business does, risks can include physical accidents, theft, damage to equipment, lawsuits, and even natural disasters. Business insurance is more complex than other types of insurance as it may cover:
- Business interruption – financial support to business owners when they’re unable to operate their business
- Directors’ liability – protection for corporate directors and officers if they’re sued
- Emergency preparedness – protection against business interruption due to natural disasters
- Accounts receivable – protection for business owners against damage to accounts receivable
- Professional liability – protection for professionals if there is an error in their work
Because risk is so broad, there is no one-size-fits-all business insurance policy. Rather, you should work with an insurance broker to identify your unique business risks for a customized policy.
How to confidently search for business insurance
Consider your risks and the perils to be covered by the policy
Business risks can be broken down into four areas:
- Strategic risks – the risks associated with of facing new competition in the marketplace
- Reputational risks – risks that impact your business or brand’s reputation
- Compliance risks – risks of breaking the law or regulation established by government
- Operational risk – risks that may occur on a day-to-day basis
Think big picture about risk and don’t focus too much on every little risk. Your broker’s job is to guide you to the areas of your business that you should focus your attention on when identifying risks.
Seek out and partner with a broker
A good insurance broker should take time to understand your needs and should ask key questions such as:
- What is the nature of your business? For example, do you repair computers from home, or do you run a large corporation?
- What your business is worth? Valuing your business isn’t simply a matter of totalling your tangible assets and inventory but should also include an analysis of your company’s future earning potential.
- What are the key risks facing your business now and in the future? A broker will walk you through a basic risk analysis, but you should arrive at your broker’s door with a good idea of the types of risks facing your company.
Ideally, your broker will be familiar with your business and should provide cost-effective insurance solutions for managing risk.
Discuss your options with your insurance broker
The insurance policy you choose will depend on your business model and unique needs. With their broad scope of expertise, your broker will be able to communicate the technical information of potential policy options clearly.
A broker isn’t just a salesperson, they’re a trusted partner is risk management – contact an AP insurance broker today to learn more about business insurance.
