When it comes to running a business, owners, directors, and managers often think that formulating a risk management process can be put on hold—at least while there’s plenty more to be done in terms of boosting the bottom line. Few realise that a complete understanding of a company’s risk and a proper insurance management can actually protect the interests of the business as a whole.
A Huffington Post article stresses the importance of being ready for the risks that need to be addressed early.
Most first-time entrepreneurs are either overwhelmed by the sheer quantity of dangers they face as they step into the role, or are oblivious and underprepared for those risks due to lack of experience.
Large-scale risks are more dangerous and more obvious, such as running out of funding, experiencing a dramatic shift in customer demand, or losing an important client. Small-scale risks are less worrisome, but can cumulatively have a major impact on your business, such as the loss of a crucial team member, or a problem with a new product.
Not all risks are preventable, but they are diminishable. In other words, it is always possible to reduce the likelihood that something bad might happen, and reduce the potential negative impact if something bad does happen.
Whatever the nature of a business, management liability insurance can help shed light on the claims that can be brought against a company and its officers. This type of insurance not only serves as a protection from a number of potential liability issues that may be brought to the management, it also enables the company to determine the procedures that need to be in place to minimise exposure to risks.
From unfair competition and wrongful act to unfair dismissal and theft by employee, being prepared with the right coverage can make a big difference in the success of a business. Suitable structuring of a management liability policy can reduce interruption to a business and reduce losses. Insurance Brokers such as Insuring theProduct, can provide an array of options for management liability insurance on the Sunshine Coast. With the assistance of an insurance specialist, coverage or policy conditions can be fully customised to meet the specific needs of a business.
(Source: Top Keys to Mitigating Risk in Your Startup, Huffington Post, August 18, 2014)