Business consultant, fitness consultant, marketing consultant…
Irrespective of the kind of consulting service you sell, it can be exciting and daunting at the same time. After all, running your own business is a rollercoaster ride with many ups and downs. However, if you’re not prepared with the right plans, the ‘downs’ may lurk around more often and the ‘ups’ may not last very long.
As a professional consultant, here are 3 unexpected events you may encounter:
1. Complete stagnancy
This could be quite discouraging, but it’s a part of the process. You will get to a phase where you might not get any new client. The business will feel stagnant. You will feel stuck. Your operational cost may exceed your returns, bringing you losses. For such situations, you need to be prepared in two ways. One, have enough capital and stay liquid so that such phases of stagnancy doesn’t cause you any financial trouble. Second, be mentally prepared for something like this; expect it. This will help you persevere through.
2. Lawsuits
This is getting more common for consultants now. Imagine you offered some advice to your client and it didn’t bring them any good result. They may sue you for this poor quality service. Further, if your advice brought them any loss or damage to property, their litigation could have a solid ground against you. Needless to say, such lawsuits can be expensive. You’ll have to spare a lot in defence cost. A simple solution to this is having professional indemnity insurance. Professional indemnity policy protects you against legal liabilities, covering a range of expenses if you’re sued by your clients for specific reasons. Connect with a licensed insurance broker and learn more about professional indemnity insurance.
3. Unexpected growth
This happens. All your hard work and perseverance finally starts paying off and you start seeing more business growth. The growth rate gets so high that it almost becomes unmanageable. It’s important to stay prepared even for such situations. Know from the go that if indeed something like this happens, how you’re going to hire more people, how you’ll build a team, how you will manage the clients, how you will streamline the operations, and so forth. When your business is growing, you don’t want to take a pause just to figure things out. You should ideally have figured it out from the start.
These are three unexpected events you may encounter as a professional consultant.
Act as a true entrepreneur, stay prepared from ahead, and steer your business in the right direction.
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In 2018, the average cost of a cyber attack was $1.1 million. (1)
Cyber incidents like data breach and ransom ware come with several direct and indirect costs. There are examples of companies shutting entirely after a cyber-attack because of the loss they suffered. This is why more companies are now investing in cyber risk insurance.
Often, many people ask who needs cyber risk insurance.
The simple answer is every business who has some kind of digital footprint.
Of course, large companies that have their entire operations running online almost essentially require cyber security insurance. For instance, a food delivery service stores customers’ highly sensitive data, like credit card details. They are also more prone to cyber-attacks. So, they must have cyber risk insurance.
But even those that have a smaller establishment, they should invest in a cyber-security insurance as well. As long as they are collecting user data (even something as basic as their name and email address), cyber risk insurance is a need. Because you never know when there could be a data breach and those individuals whose data got breached files a lawsuit against your business.
Of course, the kind of coverage one gets would vary on their needs, vulnerabilities and risk exposures. A company that handles sensitive data and is more prone to cyber risks, they should have a wider coverage. Similarly, those who are not at a higher risk and they handle very little customer data, their insurance coverage can be low.
There are many little and big factors that influence what kind of cyber risk insurance plan you should get. Do proper evaluation on your end to establish your unique needs, requirements, and risk exposures. Connect with an experienced (and licensed) insurance broker and get their help. They can help you realize your definite needs. Accordingly, they can assist you in finding the best cyber risk insurance plan from a top insurer that provides you with maximum coverage.
Insurance brokers can also help you buy other policies like E & O insurance; just like cyber security insurance, errors and omissions policy is equally important.
2021 is expected to be quite different. Business owners will face many new challenges. So, adopting a better approach when buying business insurance is important so as to address the newer needs and challenges of the now.
In that context, if you’re planning to buy small business insurance, here 5 tips that will help you:
1. Don’t over-prioritize cost
Of course, in the current economic condition, many businesses are in a financially difficult position. Budgeting ought to be key when buying insurance. But that said, it shouldn’t over-prioritize the conversation. You don’t want to opt for the cheapest plan that falls flat in providing you with adequate coverage. The first priority should always be whether that plan provides sufficient financial coverage or not. Its cost should be secondary.
2. Go with a top insurance company
This is as simple as it gets. There’s a reason why they are the “top” insurance companies. So, trust an insurance company that enjoys good market reputation and has many buyers. Even if their premium is high, they would be beneficial for you in the long-run.
3. Don’t forget to customize your insurance plan
Standard business insurance policies might not suit your exact needs and requirements. So, don’t buy the first insurance plan you come across. Instead, first, establish the kind of insurance coverage you require and then accordingly customize the plan.
4. Build long-term partnership with an insurance broker
It’s much more than just buying business insurance. You’ll have to renew it. You’ll have to file claims. If you have any confusion regarding the terms and conditions, you would want to sort them out. So, having a certified insurance broker by your side whom you can trust and rely on is important.
5. Don’t undermine small risks
Those little risks that may seem negligent can turn up to be quite serious. They are the loopholes that leave your business vulnerable. So, be very careful in establishing and auditing your risk exposures. Make sure you’re providing maximum protection to your business. Accordingly, spare on business insurance.
These are five important tips to help you buy business insurance in 2021.
Find the right insurance broker and take confident strides forward to buy the right insurance policy that provides your business with a wide coverage at an affordable premium.
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