Insuring your business - how to choose the best insurance and ensure comprehensive coverage

What risks await a business owner?

Business owners need to be aware of the various risks that can affect the stability and operation of their businesses. One of the main risks is liability risk, which can arise from claims by employees, customers or contractors. In addition, businesses are exposed to business-related risks such as market fluctuations, regulatory changes and competition. Random events, such as fires, floods, earthquakes or other natural disasters, pose another potential threat to businesses. In addition, the risks of data loss and privacy breaches are becoming increasingly important in an era of technological advances. The risk of business interruption due to, for example, equipment failure or loss of supplies is also worth considering. All of these factors underscore the need for a prudent approach to insurance so that business owners can effectively manage these various risks.

Insurance coverage for companies - what does the coverage consist of?

Few people connect the two, but insurance risk management is also part of optimizing company processes. After all, if employees are well insured, they will work better, and secured assets will not require other precautions such as holding funds for a black hour.The basis of good corporate insurance is to understand the various risks and compare them both at the stage of needs analysis and subsequent selection of insurance. Below you will find the most important risks that I consider to be the core of any policy.

Insurance of the company's assets against events and theft

Insuring a company's assets against fire, natural events and theft is a key component of a company's protection strategy. Fire insurance covers the risk of loss resulting from a fire, explosion or lightning strike, protecting company property from damage or destruction. It is also worth considering insurance against fortuitous events, which covers a wide variety of situations, such as earthquakes, floods, hurricanes or other natural disasters that can pose a significant threat to company property.Theft insurance, on the other hand, provides protection against the loss of property due to burglary, robbery or theft of company property. It is worth noting that these types of insurance can together provide an effective defense against a variety of risks that can threaten the stability and continuity of the business. Appropriately adjusted coverage can help minimize potential financial losses associated with unpredictable events that may affect the company's assets.The scope of protection I mentioned above, is slightly different than in the case of the home or apartment insurance I described. Insurance of business property depends largely on the type and needs of the business. After all, a company that does not have any machinery will insure a different coverage than one whose electronic equipment is the backbone of the business. Business insurance is a bit more flexible, mainly because of the other damages that can arise in the performance of a particular business. They can also be extended to cover a variety of very specific risks, so a well-chosen policy should be preceded by a proper needs analysis. I do not recommend to follow the policy of "as cheap as possible", because what if the premium will be low, if the contract will not work in case of damage?

Insuring your company against third-party claims - corporate liability insurance

Liability Insurance (Liability) for a company is an important element of protection against a variety of risks associated with potential damage to third parties or their property in the course of business. Company Liability risks include potential claims and financial losses resulting from accidents in which the company is deemed liable. Examples of such situations include accidents on the company's premises, damage to customers' property, errors or negligence of employees leading to damage to the property or health of others. Business liability insurance may also cover the cost of legal defense in the event of litigation over claims. For an entrepreneur, having a third-party liability policy can be crucial in providing financial security in situations where the company may be subject to claims for damages, helping to preserve the financial stability of the business. As with property insurance, what business liability will look like largely depends on the type of company. I would even be tempted to say that it can be further customized to suit the individual needs of the company.Again heading for examples - a carpenter who assembles furniture in a customer's apartment will need a different insurance contract than what the programmer's OC covers. Some people are surprised at how much data must be provided when writing a third-party liability policy - the turnover of the company, PKD, any machinery, think about the risks that may occur in connection with the operation of the business. However, the matter is very simple - the more precisely you specify your needs, the better and more accurate protection you will receive under the insurance.It is worth distinguishing at this point several , "sides" of liability insurance - because in different situations different parties to a dispute can benefit from it.Employer's Liability allows you to protect yourself in the event of claims by EMPLOYEES in the direction of the company. This means that when, for example, on the shop floor there is an incident/accident due to the fault of the employer, the claim can be covered by such a clause.Worker's Liability, as you can guess, allows you to protect the company in case there is damage due to the fault of an employee, for example, in the property entrusted by the customer. Then, too, any claim is covered by the policy.*** Translated with www.DeepL.com/Translator (free version) ***

Life insurance for employees - group policy

Group insurance, which I have written about more extensively in this article, is one of the most basic benefits at workplaces. These are personal insurance policies that can cover employees, company owners, etc. The hallmark of such policies is lower premiums and many benefits, among others:

• death of the insured,
• personal accident insurance (NNW),
• hospitalization of the insured,
• birth of a child,
• death of a parent/father-in-law,
• serious illness,major surgery

And many others, also with different variants. Comprehensive group insurance should have a wide range of benefits and well-chosen sums insured. Insurance for small and medium-sized companies may differ somewhat from policies of giant corporations, mainly in terms and conditions or the possibility of having several insurance packages

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Choose a medical package as a benefit for your company's employees

Health insurance is another benefit worth introducing in your company. It is used somewhat less frequently than group insurance, although in my opinion - quite wrongly.

As the name suggests, such insurance allows you to use selected services regarding doctors, etc. privately. This is usually done at selected facilities (LuxMed, Medicover) and any cooperating institutions.

Health insurance packages may include:

• Access to a selected number of specialists without queues,selected laboratory procedures such as blood tests, etc,selected outpatient and surgical procedures (with limits set per year),
• Access to various ancillary benefits such as rehabilitation, medical appointments, etc.It all depends, of course, on what package is purchased by the company and the company with which the contract is concluded.
• Business owners can cover part or all of the cost of the premium. This is also a way to optimize taxes, so consider implementing and group insurance and medical packages to your company.
• Remember that it also significantly increases your competitiveness in the market.

Unusual benefits to insure your business for - cyber security, legal assistance, assistance

As I have mentioned many times in the article, insurance for a company can be a very elaborate product, and coverage often includes... unusual benefits. I decided to list three of them that business owners are using more and more often:

1. Cyber insurance: Cyber insurance is an unusual but increasingly important insurance benefit. It covers protection against the consequences of cyber attacks, such as data theft, loss of information confidentiality and ransomware attacks. Cyber insurance works in such a way that a covered company can receive financial support to cover losses related to an attack, costs to restore systems, funds to manage a reputational crisis, as well as legal assistance for possible legal consequences. With this type of insurance, companies can effectively minimize the financial risks associated with cyber incidents.
2. Legal Assistance for Companies: Legal assistance for companies insurance provides support in situations involving the need to resolve legal disputes. This includes civil, commercial and labor law issues. In the event of a dispute, a company can use the services of a lawyer, and the costs associated with defending against claims, litigation or preparing legal documents are often covered by insurance. This acts as a form of protection against unpredictable costs associated with the need for legal services.
3. Assistance for Companies: Assistance for companies is an unusual form of insurance that offers a wide range of operational and logistical support services. In the event of incidents such as technical failures, car accidents or other emergencies, a company can take advantage of a variety of assistance services. These can include transporting and accommodating employees when necessary, organizing corrective actions after technical failures, or even psychological support for employees in crisis situations. Business assistance aims to respond quickly to emergency situations, minimizing their negative effects and supporting the continuity of the company's operations.

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Of course, the different benefits and their variations can be much more, but the most important information is that the subject of insurance can be practically EVERYTHING that will negatively affect the operation of the company in the event of a fortuitous event.

Company succession security and policies covering owners

In many cases, I have encountered a situation where a business owner has taken out good property insurance, taken care of liability insurance, nay, even put in place insurance for employees. In the end, however.... he forgot about himself. Meanwhile, the business owner's insurance is one of the most important aspects determining the fate of the company in various situations.

Roughly speaking, we can divide the situations into three types:

• a person is self-employed, runs a business like a programmer or a lawyer. In this case, it is a good idea to insure yourself in case of, for example, loss of income due to an accident or illness. This way, in the event of an unpleasant event, he will not be left , "in the lurch" without income and with large medical bills.
• The person runs a business and employs workers. What if such a person dies? The company will, of course, dissolve, but if a family member would like to take over the business, he or she must also be aware of any obligations incumbent on the company and the need to repay them. This applies mainly to small and medium-sized businesses, but it is absolutely not the rule - liabilities and various contracts can arise with any business.
• Two partners run the company. What if one of them dies? The other partner may be left with large bills and lack of liquidity. Meanwhile, all it takes is adequate mutual life insurance to reduce to zero the risk of the company collapsing after an unforeseen event.A shoemaker walks without shoes, but if you run a business, don't forget about insurance for yourself.
• A well-developed and comprehensive life insurance (including group life insurance, although I believe they won't cover all events due to lower sums) is a safeguard for you and the business you are building for many years.

Voluntary or mandatory? What you should know

In most cases, company insurance is voluntary, although there are a few exceptions, e.g.:

• certain activities, especially specified professions that must have liability insurance,automobile insurance in companies (which is dictated by normal law, although it is often done in the form of, for example, fleets),
• any insurance required in contracts in certain activities (for example, in the case of construction companies if they participate in tenders, guarantees, etc.).

I, however, recommend setting your thinking to the fact that if you run a business, you have an obligation to insure it. I guarantee you that even basic insurance for company assets will allow you to run your business with peace of mind, and you won't go bust when something unexpected happens. It's worth taking care of liability insurance (especially Employer's Liability, which protects you in case of claims by employees), group insurance (so you don't have to pay a death gratuity) and other risks that characterize every responsible entrepreneur.

Offer - how to choose the best insurance with comprehensive protection?

If you are facing the choice of insurance for your company, pay attention to such factors as:

• coverage, whether it covers all your needs,
• exclusions that you will find in the general terms and conditions of insurance,
• the presence of deductibles and excesses,
• the transparency of the insurance offer (no small crocks or strange exclusions),
• the price.

I specifically mentioned just the price at the end, because although it is an important factor, so it should absolutely not be decisive. By "skimping" when choosing a policy, you can incur much higher costs in the event of an accident or damage to property.Looking for insurance for your company?

Get my help, which I back up with years of insurance experience. I have helped secure both small and large companies, for property and personal risks. All it takes is one conversation and a needs analysis to find the perfect insurance quote for you and your company.