Why insurance should be an early purchase for Start-up Businesses
ProfilePI, is a leading specialist in Professional Indemnity Insurance and we insure many Start-up businesses across the UK, from App Developers to Events & Marketing businesses to Freelancers and Consultants.
Starting a business is always an exciting time and most entrepreneurs are focused on growing their business, developing their product or service proposition and marketing.
What is apparent to us from experience, is that people put their heart and soul into their new business. So if you are putting everything into your business, shouldn’t it be worth protecting from day 1?
Most insurance enquiries we receive from Start-ups, are due to a new client asking them to have the cover in place before they will do busines with them. This is a common request. For example a design agency may secure work from the BBC, but they will be required to provide insurance certificates demonstrating they have cover of £X million pounds, just in case things go wrong for them, and this impacts on the BBC.
Our view is that start-ups should be more proactive in securing insurance early rather than responding to customer requests. Here are some reasons why you should consider insuring your Start-up from day one.
- Customers will often ask to see evidence of your insurance. Having it in place already and providing this quickly signals to them your credibility and professionalism.
- If you plan to seek investment into your business, then expect investors to ask about downside protection and insurance. If you are doing work un-insured then they may be reluctant to invest. Professional Indemnity provides protection for the actual work you do, should someone bring a claim at the time or at a later date.
- Intellectual property and copyright protection is a big deal in the digital age. With most businesses having some online presence, many are vulnerable. Should someone claim your work copies their design or infringes on their intellectual property, insurance can be there to defend the business and protect your reputation
- Dealing with a complaint or handling a claim is not easy. It take a lot of time, effort and resources. This means you spend a lot of time not focusing on your main Start-up business. Insurance will include defence costs, which means a team of expert claims handlers will be defending you and managing the claim, so you can focus on your business.
- For any business, cash is king, and for Start-ups getting paid is vital. For Freelancers it’s one of their biggest worries. Insurance from ProfilePI includes mitigation costs. This protects start-ups from angry customers who are unwilling to pay. We can step in and pay your lost earnings due to a customer being unhappy and unwilling to pay you. We can help fix the matter and crucially, you are not out of pocket.
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