The beginning of the new year always marks fresh starts and a clean slate in both our personal and professional lives.There are many components of your business to review, and this article will explore one of them: insurance.

Insurance is not one of those “sexy” topics that many business owners like to spend time on since it does not directly add to your bottom line. However, if your risk profile is not properly managed, your business can quickly disappear under the weight of a lawsuit or high-stakes settlement or claim that will financially cripple your cash flow.

Many up-and-coming companies do not adequately mitigate risk in the marketplace which is tantamount to not stopping at a stop sign at a busy intersection. You may not get into an accident every time, but if you do not take precautions, a severe accident is often inevitable. In business terms, your company may not recover from a preventable instance’s negative outcome.

According to Peter Luftig, SCS Agency – pluftig@scsai.com, here are three commonly overlooked areas that entrepreneurs should be addressing in their insurance policies:

Professional Liability aka Errors and Omissions (E&O): This insurance is one that protects companies from inadvertent mistakes made in your service or provides you protection in the event that part of your service provided to clients is either incomplete or not sufficient.
Employment Practices Liability Insurance: This is important for both employees that report to an office as well as consultants that work for you. The short story is this — in order to make sure that you are adequately protected for any potential occurrence at a client’s location, you need to get this insurance immediately.
Cyber Liability / Network Privacy Insurance: Experts in this field all agree that no matter how small you may be in terms of revenue size, cyber liability insurance is a must for all companies.

Besides providing this very important coverage, Peter can also help to mitigate potential losses by working with you and introducing sensible risk management tools that you can use. Hopefully, you will never need them and will avoid having to file a claim against the insurance policy.

Take-away: Take this time in early 2020 to assess your current insurance needs and other potential blindspots that you are not aware of. For assistance in this area, contact AcceleratingCFO or Peter Luftig at pluftig@scsai.com.
Brian Califano