If your new business is moving along at a great pace and things are going really well, it’s not yet time to open the champagne, save that for the day you go public. Much like a young tree, your business needs some TLC for the first couple of years and when you are doing well, that’s when your resources are stretched and problems can occur. Risk management is an integral part of business development and something you should be looking at as things get really busy.
Risk identification
This is the key to maximizing protection, identify the risks and take action to protect yourself in the form of customized business insurance; as an example, commercial car insurance from a top US business insurer covers you for far more than private auto insurance, all tools, equipment and inventory would be covered and you never know when a road accident might happen.
General liability insurance
What would you do if one of your technicians spilt coffee on the client’s MacBook Air? Or maybe a technical error resulted in a compensation claim from an angry customer! These things can and do happen and a single incident could result in a very costly lawsuit and you can be insured for situations like this.
Planning ahead
This means looking at how the market is moving and making sure that you have the resources to keep up with the demand; foreseeing the need for bigger premises and additional equipment. Failing to plan ahead could have serious implications for any business and by spending the time to look at what might be required if sales were to continue to rise, you can put things in place before they are needed. Click here for many business blogs that might come in useful.
Partner up with a business insurance provider
This would be a smart move, as your insurance partner will ensure that you have adequate protection across the board and as your business develops, new risks can be identified and a special policy created, minimizing the risks to the organization. Ask a business lawyer to browse any contracts to be sure that you aren’t committing to something unexpected and that your best interests are the aim with any legally binding agreement.
Specialized Work
If engineering or design are involved, there’s always the risk of an error; we are all human and can therefore make mistakes; a design error could end up costing a client a lot of money and they would likely file a lawsuit against you, citing professional negligence. This could literally bankrupt the business is it were successful and having error or omission insurance saves the day!
To conclude, when a young business starts to enjoy sustained growth, that is the time to carry out risk assessment and take the necessary precautions to ensure that your organization continues to expand. The US government offers a lot of resources for the entrepreneur, which you should explore.
