Risk-taking is second nature to entrepreneurs. Some take the risk of leaving a stable job to pursue their dream of starting a company while others invest their savings into an idea they’re passionate about.
Some entrepreneurs are calculated risk-takers. They will try to minimize risk as much as possible. They’ll rely on a safety net in moments when there is no choice but to take risks – this is where small business insurance comes in.
Small business insurance can help you recover when disasters strike and threaten your startup’s success – like your business being sued or an injury to an employee.
Have the Right Mindset
You’re bound to run into challenges as your startup takes off. You can either deal with these obstacles when they catch you off-guard, which can slow down your business, or prevent them altogether. The latter is a better approach. Be prepared and ask questions: what are some of the risks facing my business? Are my employees and property covered? What kind of insurance coverage do I need? And how much? What isn’t included in my small business insurance policy?
Be proactive. Prepare for problems before your time and attention turn from sales to crisis management.
Have a Good Team
Running a small business takes the coordinated effort of every employee. Hiring the right employees could help you lower the risk in your business. Hire employees who can plan ahead and problem solve to prevent risk and manage risks when problems arise.
Connect to Your Startup Community
The entrepreneurs in the startup community are always open to sharing their expertise, sharing their experiences, and helping other entrepreneurs succeed. Entrepreneurs with young startups should connect to their local startup community to learn what other startup owners have done to manage risk. Ask them about the risks they encountered as a startup, and what risks did they not expect? How satisfied are they with their insurance provider? While every business is unique, finding out more about their insurance needs is a great way to learn more about the small business insurance needs of your startup and prepare for a conversation with insurance providers.
Start right away
Insurance is an often-overlooked startup cost. Whether you’re starting up or growing quickly, you should prioritize getting insured. Small businesses that have the right insurance coverage, and the right amount of coverage, often recover from losses whereas businesses that overlook insurance are less likely to recover from a loss.
Don’t Be Afraid to Ask
Think of your relationship with your insurance company as a partnership. You work together to ensure your business needs are met. As with every successful partnership, communication between both parties key. Ask your insurance company to explain their products and services when trying to find the coverage that works for you. They are there to answer your questions and address your concerns.
When it comes to protecting your startup, it’s always better to be safe than sorry. Find out how small business insurance can help you by visiting www.trushieldinsurance.ca/.
Want to learn more? Read through our past #StartupChats and #StartupSchool episodes for further startup insurance advice.