How Entrepreneurs Can Manage Their Risk
The UK has had a resurgence in entrepreneurship in recent years with many people starting their own business. As MD and co-founder of ProfilePI it is exactly what I did.
This is happening for a number of reasons.
The sharing economy or the ‘gig economy’ has made it easier than ever to start up in business for yourself. More people want flexibility in their working arrangements to flex around lifestyle commitments. Many people are becoming deluded working at large corporates and prefer to work in smaller businesses where they feel their voice can be heard, or start their own business.
We love start-up businesses and the entrepreneurs who found them. That is why we are one of the UK leading insurers dedicated to start-ups and entrepreneurs.
But entrepreneurs are by their nature risk takers, and when taking risks it is important to know the downsides as well.
Protecting yourself and your business
Entrepreneurs need to make decisions about their business. If you are a new business trying to disrupt a market, expect a response from the current players keen to protect their market share.
Claims for intellectual property infringement, copyright, trademarks, designs are increasingly common. If you provide design, content or training, we can pay the costs in defending any valid claims made against you.
Almost all businesses run on data these days, loosing data is costly and it can be the end of your business before you have even got started. Cyber insurance will protect you from claims made against you from customers or others following a data breach.
As the entrepreneur and founder of your business, you are liable for hiring staff, filing tax returns and at all times acting in the best interests of your company. Tax investigations by HMRC or a member of staff pursuing you for not following proper employment law can be a huge drain on your resources and time.
If you are seeking investment into your new venture, you stand a much better chance of securing investors, if you can demonstrate down-side protection to them. Ensuring that your business is already protected and has provisions in place will make you and your business a better investment option.
Insurance coverage to protect against the above risks to entrepreneurs can start from as little as £20 per month. So if you are putting everything into your new business, is it worth protecting it?
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