11 | Managing Risk with Insurance
Every business needs core coverages: General Liability (slip and fall, customer injury) Property (equipment, inventory, buildings) Workers’ Comp (employee injuries) Business Auto (for company vehicles) Cyber (especially with customer data or billing software) Employment Practices Liability (EPL) Umbrella Policy (for higher coverage limits) Set deductibles in line with cash on hand — not what looks cheapest. A lower premium with a painful deductible can backfire. Review limits at least once a year or after headcount/revenue changes. And always match COI language to leases and customer MSAs. Depending on your industry and exposures, you may also need: Professional Liability / E&O (for services or advice) Case Example — Healthcare Buyer Adds Cyber Coverage After a minor data breach at a clinic, a buyer added a cyber policy that included breach response, data forensics, and business interruption. The policy’s cost was less than 0.2% of annual revenue — and would’ve saved tens of thousands if the incident had been worse. Action Checklist Review coverage annually and confirm limits with your broker Add cyber and EPL if handling customer data or HR issues Align deductibles to cash reserves Ensure COIs match lease and client contract language Quick Summary Right-sized insurance limits downside without killing cash flow. Build a protection plan you can operate through. Insurance protects your cash flow — and your lender. Review it annually and align it to risk, not just minimums.
T Bank Insight We’ll confirm required coverage levels, lender endorsements, and verify active policies before closing. We help structure renewals and match timing to the first- year budget.
14
For informational purposes only. Not legal, tax, or financial advice.
Made with FlippingBook - professional solution for displaying marketing and sales documents online