How To Risk Proof Your Business?

Taking on risks can leave most businesses vulnerable but having an insurance cover assuages any unforeseen setbacks, says Anagh Pal.

- Anagh Pal

Nasty surprises can wreak havoc for a business, especially for a startup. Take, for instance, a high-value shipment of an e-commerce company that gets lost in transit or a week’s earnings collected from different centres being looted. All businesses are fraught with risk and it is no different for start-ups. In such cases, insurance provides a way out by insulating businesses so that they can deal with emergencies that would otherwise throw their growth process out of gear or even lead to their death. 

While it does not feature in the priority list of most start-ups, the importance of insurance is significant. A start-up that does not have insurance is as much at risk as an individual who does not have health or life insurance. Insurance can protect a start-up from making losses on its assets, liabilities and human resource. If adequately insured, a start-up can take unexpected and nasty surprises in its stride with little or no financial damage and the business can continue on its growth path.

“Insurance also gets client confidence in your business as they know that a particular freak incident won’t put you out of business,” says Abhishek Rungta, CEO, Indus Net Technologies, a Kolkata-based web development and digital marketing company, and also a co-founder of Seeders, an angel fund and incubator for tech start-ups. There is a wide range of insurance covers available for businesses to ensure protection against any mishaps. (See: Ringfencing your business).

Mix ‘n’ match