Protecting your personal assets from the risky side of your biz
I’ve just finished my second Biz Blind Date with another fab entrepreneur. If you’re keeping track, I’ve had two BBDs this month, and the topic of business insurance came up in BOTH sessions.
One entrepreneur didn't have insurance, but sent me this DM a few days after we chatted:
And the other entrepreneur already had biz insurance, but we talked lots about protecting her personal assets from her business' activities.
SO: It occurred to me that the content of these discussions could be useful for my community too. {And if you already have biz insurance, stay tuned for a deep dive on one type of insurance I NEED you to confirm you have}.
Here we go!
Do you need business insurance?
The short answer is: yes, yes you do. ✓✓✓
But why??
Isn’t this just an extra $2,000-3,000 that you don’t really need to spend right now?
What if it’s just you and one virtual assistant?
What if it’s just you and a 3-member team in a small office?
Is it really necessary??
I’m still gonna go with “yes.” And my follow-up questions to you would be:
Do you want protection from a lawsuit in the event something goes sideways with the advice you or your team member gave a client?
Do you want to lie awake at night wondering what happens if your client credit card data is intercepted by someone malicious?
These questions aren’t meant to scare you, but they are meant to wake you up because I sometimes feel like the world of small business entrepreneurship in Western Canada is a little bit of the wild west.
You see, friend, people are starting businesses left, right and centre but not really realizing that their actions are potentially putting their biz assets AND their personal assets at risk by not doing all of the things necessary to protect themselves.
SO, whether you’re new to this world of biz insurance or not, I’d encourage you to read on.
The 4 most common types of business insurance are:
Professional liability insurance
General liability insurance
Contents insurance, and
Cybersecurity insurance
You might need all 4 types of insurance or not.
If you are a traditional professional (lawyer, doctor, accountant, engineer, etc.), you’ll most likely have Professional Liability Insurance in the event a client holds you responsible for errors in your work. Your provincial regulator likely requires this.
If you have a physical office space where you and your team work, you’ll likely have General Liability and Contents Insurance to protect your biz operations/assets from bodily injury or property damage that occurs on your commercial property.
But the type of insurance that I get most excited about for entrepreneurs today is CYBERSECURITY INSURANCE.
If you’ve worked with me 1:1, you know I am ever-so-slightly paranoid about cybersecurity. And you might wonder… why is that??
My identity was stolen in 2016 by a mortgage broker who did not have a secure system in place to store my SIN and associated banking/credit details. Unfortunately, identity theft means ongoing challenges for my credit score as people go on shopping sprees in Paris and buy cars using my name/info. I mean, at least the thieves have good taste, but still…
So when it comes to my clients’ data - email address, phone numbers, credit card numbers, financial statements, etc. - privacy and security is top of mind for me because I know the hell that will rain down if this info is intercepted.
Cybersecurity insurance protects against risks involving your tech systems and customer data. You might need it if you use computer or cloud systems, you use a point-of-sale system, or you store customer data like credit card info.
So, back to you, friend. Your assignment, if you choose to accept:
If you don’t have biz insurance, reach out to 2-3 insurance agencies and get some quotes. The quotes will vary a bit so don’t just jump at the first number you get. Remember - **you** are the client and the insurance agency wants your business. Don’t let anyone make you feel dumb for asking lots of questions.
If you’re reaching out via email, I’d start with “Hi there - I’m a small business owner in the ABC industry. I’m interested in getting business insurance and believe I need Professional Liability Insurance and Cybersecurity Insurance, but would love to talk to a broker who would help me confirm this and give me a free quote. Can you let me know what info you need from me to set up an appointment to discuss my situation?"
If you already have biz insurance, check out your policy (or email your broker) to see if you have Cybersecurity insurance that properly covers you, your systems, and the way you store/use client info today.
That's all I have for you today!
If you're someone who cares about managing risk in your biz - aka you don't want tax-time-surprises and you certainly don't want to lose that key employee - we should talk.
I have space for 3 entrepreneurs to start in The 7-Figure CEO in September.
This program is designed to help you develop a sustainable biz so that when challenges and risks arise like income dips because of the BOC's mood swings, you're good. You have a plan. And you feel confident that, regardless of how this quarter shakes out, you know your next steps and you will keep going.
You’ll get the benefit of a 3-person team which will include me - a CPA with over a decade of experience advising 6, 7 and 8-figure business owners; a financial whiz kid/CPA, and a systems/admin support person.
You and I will decide strategy/objectives and my team will help you/your team to implement the strategy… because we all know that execution is everything. You can draft the most beautiful strategy, but unless action is taken, it's kinda useless.
Again, 3 spots avail for a Sept start. Here’s a link to book your consult with me:
Take care and talk soon,
Tanya