With almost 582 million entrepreneurs around the world, entrepreneurship isn’t just a fad. It’s steadily gaining traction, not just among millennials, but also with middle-aged professionals. More than just a fad, the appeal of financial and career independence, along with better income and better work life balance draws aspiring entrepreneurs in. Likewise, entrepreneurship brings many benefits to the overall revenue of a country and keeps the economy innovative.
Because success is not without failure, entrepreneurs should be wary of the various risks that come with starting a new venture. From funding and hiring staff to daily business operations, maintaining a business comes with a diverse set of challenges, and with it, several risks that you’ll need to manage. Some of these risks are completely manageable, and others, not so much.
Why should we talk about business insurance as part of management?
Business insurance is a must, whether you’re an entrepreneur or a well-established CEO of a multinational corporation. Natural disasters, a weak financial market, and client lawsuits all exemplify the need for comprehensive business insurance. As experienced brokers, we can tailor-recommend small business specific insurance plans for those starting out.
Not only does it offer financial security for the entrepreneur, it also provides backing for the employees. Business insurance is the security blanket for anyone affiliated with the organisation if things do go south.
Our top insurance tips for business spending and start up
Even if you are a small business owner, having a good insurance plan will give you a peace of mind, allowing you to focus on the important tasks. We recognise the inherent complexities involved in navigating the set-up and running of a business. We’ve compiled a list of our top tips concerning business insurance specifically.
Diversify and spread your risks
This applies to most things – don’t put all of your eggs in one basket. Sure, being an optimist is an encouraging way to be, especially when you’re starting a business. However, forecasting potential risks and its accompanying scenarios can be a good way to plan ahead.
Having business insurance to shelter you in bad business times is essential. That said, it’s important that you still diversify your risks and not invest all of your money into your business alone. By ensuring that you have a fallback plan, you can breathe easier knowing that you won’t be financially stranded if the insurance and the business itself encounters a major risk.
Acquire a comprehensive business insurance
On top of diversifying risk, your business insurance needs to be more than just basic. A comprehensive one will have you covered for a majority of scenarios – intellectual property theft, damages incurred related to professional advice, and if a key personnel like a founder, dies.
Getting a comprehensive business insurance means having your professional indemnity, life, disability, property and casualty segments all included. According to a study by Deloitte, only 59% of family businesses have detailed contingency plans in the event of a death or disability.
Ensure emergency savings
As it is with most things in life, you have to save for the rainy days. Even with a business insurance policy, we recommend having an emergency cash cushion. The rule of thumb is to have three to six months of emergency cash on hand should suffice. However, if your business is your only income stream, then it makes prudent sense to expand on your emergency savings as well.
Emergency savings not only keep you protected, but also give you an assurance so that you aren’t stressed out while working on the issues that matter during a venture start up.
Consult Expat Insurance
Having your money matters well-planned out can be instrumental in helping your business take off smoothly. Starting a business involves a whole lot more than insurance alone. That said, business insurance is an integral part of entrepreneurship. Having worked with corporations and individuals alike, our team of brokers are well equipped to support you with your business insurance needs.
Get in touch with a specialist today.