Startups’ Insurance Risks and Ways to Mitigate them
Every business startups owner and faces different types of risks in developing a mobile app or website. Though recent years, with bigger accessibility of data, these risks have become even more common. All of them, though cannot be avoided, can be mitigated with proper insurance policy as well as careful planning. In this article, I gathered really useful information for any business owner - insurance risks and ways to mitigate them.
A few types of insurance risks:
1. Data fleaks
As I have said, the accessibility to any sort of data becomes easier and easier every day. It is good for learners desiring to study something new and it is bad for anyone else because it may cause a lot of troubles, such as confidential information leaks. How to deal with it? Well, mitigating this type can be really tricky, but one thing you should do every time you're hiring a company or are being hired is to sign a Non-Disclosure agreement that will provide you with some sort of safety in communication with other companies. You also should work with Payment Card Industry Data Security Standards (PCI DSS) that can help you with cyber insurance.
2. Property accidents
There are a lot of situations that you won’t ever be able to forecast, like floods, fires, snowstorms, tornadoes etc., but you can have a policy that will protect you against them. There are few types of insurances that are good for property damages, like Product Liability Insurances - it provides owner with protection from financial loss of property or Business Interruption Insurance.
Property damages can be crucial for startups, especially on the first stages of its creation, because they usually do not have so many ways of financing their business, so the recovery of an office after a fire incident is really expensive.
3. Damage caused by staff or to staff
There is a big list of these accidents, but we will talk about a few . You should remember that just having employees is already a risk. They may fail with the call to a client, telling him some unnecessary facts or perform some task incorrectly and mess up the workflow. Also, there are situations where you unintentionally cause damage to the staff, like firing without warning. In these situations, we can advise you get Workers Compensation Insurance or Professional Liability Insurance; these two will help with both accidents.
Also, as for you, being the head of the startup as well as for your colleagues, there is also a good way to mitigate any risks with D&O Insurance.
There are a lot of other risks and ways to mitigate them, but here I’ve listed the most important ones for you to be aware of them. Good luck with your startup development. And remember, Artjoker will happily turn your ideas into excellent results!
Author of this article, Liza Kerimova - internet marketer at Artjoker software company. She loves to write on different topics, because she enjoys sharing knowledges and thinking about information in a new way.