How insurance saved a startup
16, Sep, 2020
Insurance is not exciting. No matter the reason, we purchase insurance hoping to never use it. No matter the size of the business, risk management is a critical component of business success.
Today we are sharing with you story of two startups who have been saved by their insurance policies. The examples have been adjusted to illustrate the purpose of business insurance.
An employee shared sensitive customer information
A small consulting firm sent out weekly newsletters and advice. On one particular email, an employee inadvertently attached a document of their customers with detailed personal information.
The company was able to offer credit monitoring services for all the impacted customers. They also hired a PR firm to manage their reputation. Finally, they also had coverage for legal costs associated with the ensuing lawsuits. In total, the costs exceeded $400,000. Without insurance, they would have either shut down, or be forced to raise additional money on unfavorable terms.
How insurance helped:
The advisors recommended that the company should contact all their customers, notify them of the breach and offer support to manage their exposure. This would cost the small business hundreds of thousands of dollars, and lead to lots of negative PR within their professional community.
Water leakage destroyed our office and equipment
Over the weekend, the pipes in the office burst without warning. The entire office was flooded, and some expensive tools and technical equipment was damaged.
Beyond the major issue of the equipment being damaged, there was no place to work or host clients. Given the situation relocating and reestablishing the office, as well as purchasing the tools would be a very expensive and time-consuming process. Also, even though the operating costs were being incurred, the company lost a lot of sales given the distraction.
How insurance helped:
The company had a comprehensive coverage office insurance package which included property insurance as well as business interruption insurance. The insurance company covered the cost of relocating to a temporary office and installing all the necessary equipment to run the business as well as the cost to repurchase the damaged tools. Their insurance policy even provided coverage to compensate for their lost income. Without the comprehensive coverage the company would have gone out of business.
The Technologists Office Protection program
Designed specifically for Technologists, closely with ASET, the Technologists Office Protection Program (TOPP) provides comprehensive coverage in the event of damage plus a number of value-added coverages including:
- Cyber risk
- Damage to computers and electronic media
- Loss or damage to valuable documents
- Crime coverage including fraud
- Employee theft
- Umbrella coverage bodily injury, property damage, personal and advertising injury
Whether your firm rents office space or owns its own building, it's vital to have protection against possible damage to business property, as well as many other risks.
With the Office protection program, you and your business have complete coverage. To see how the Technologists Office Protection Program can give you and your business comprehensive coverage that is designed to fit your needs, CLICK HERE.