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  • 5 People You Must Have on Your Startup Team
    Game Plan

    Insurance Professionals

    When it comes time to construct your insurance strategy, you will quickly discover that there are literally hundreds of products to choose from, which, in the words of the SBA website, allow you to insure against almost “every conceivable risk your business might face.”

    However, as a risk taker, you’re only interested in protecting yourself against risks that are actual or likely—otherwise you run the risk of insuring your profits out of existence. That’s why your first step should be to redefine insurance as “risk management.” This puts the focus where it belongs—on protecting you and your business—rather than on a series of products.

    The risk assessment process requires experienced insight. Obviously, you’ll want to find a good, objective insurance expert from a reputable company who can customize policies to your specific risk exposures. But shouldn’t your attorney also be involved in the discussion? He or she may be the person who best understands what kinds of lawsuits you may face. After the risks are identified, your insurance professional will present proposed coverages—and their premiums. Again, you may want to run these by your CPA for a round of cost-benefit analysis.

    How do you find the right insurance professional to round out your team? Keep in mind that there are two types of agencies in the insurance industry. Some are tied directly to a single insurer and use only policies underwritten by that firm. Others are independent, and offer policies from many different insurers. As with the other professional advisors you’ve been recruiting, it really makes sense to seek out referrals from people in your business network. It’s important that you find a professional whom you can trust and who possesses the expertise to guide you to the most suitable insurance solutions for your business.

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