Founders: Insurance cover is falling out of focus

Young companies are particularly susceptible to business risks. But their founders hardly have time to look for tailor-made company insurance.

Setting up your own company is always a big risk. After all, it usually involves the financial existence of the founders, who often invest a lot of money in the project for staff, office equipment, tools and machinery. The pressure is all the greater if failure could also affect employees and business partners.

This is why founders and self-employed people invest a lot of work and nerves in a successful start. With this strong focus, it is easy to lose sight of protection against accompanying risks. According to a survey of public insurers, around two thirds admit that they do not feel confident taking out insurance without advice.

Why is that? Because they don't have enough time, especially in the important start-up phase, to deal with this key issue in depth. This is stated by 57 percent.

Young companies are particularly susceptible to risks

Every company must comply with numerous rules and guidelines and avoid damage. Even small mistakes and omissions, which can easily happen in the hectic day-to-day running of a start-up, can lead to considerable consequential costs. This applies, for example, to the following risks, some of which can have enormous financial consequences.

• Keys and code cards are lost
• Customers slip on the business premises and injure themselves
• Fires break out, water pipes leak or short circuits damage equipment
• Criminals break in and steal money or office and production equipment
• Business activities have to be temporarily suspended due to unforeseen events
• Invoices are not paid by customers

These and other causes quickly put young companies in particular under severe financial strain and may threaten their continued existence. The right choice and combination of business insurance policies protects against this. Here is an overview:

• Liability insurance is a matter of course for many people in the private sphere. But the professional version also protects against third-party claims for damages in a business environment.
• Contents insurance covers damage to the interior furnishings and equipment of business premises. This includes, for example, the consequences of fire, burglary or elementary risks such as severe storms.
• Buildings insurance is aimed at homeowners and landlords. It offers them financial protection against risks that damage their building.
• Loss of earnings insurance covers running costs and lost operating profit if business activities have to be suspended for a certain period of time.
• Loss of rent insurance steps in if, for example, tenants fail to pay rent due to property damage in or on the property.

How founders find a tailor-made package

Business insurance covers a large number of risks financially. But which one is essential for an up-and-coming company and which one is not, at least initially? When is there a risk of overinsurance, which puts an unnecessary strain on scarce resources? And when is underinsurance a serious risk to the company's existence? It is not easy to find an answer to these questions in the time-consuming start-up phase.

In order to research the actual need, a finely tuned analysis of the respective business activity and its potential risks is required. This is the only way to find a sensibly balanced solution for each individual case that is both practical and cost-effective.

Which the majority of founders simply don't have the time for. If they still want tailor-made insurance cover, only detailed and fair advice can help. Like from AXA. AXA Versicherung has developed professional protection especially for founders with little time, which can be easily and individually adapted thanks to various modules and options. And for numerous sectors such as trade, crafts, services and freelance professions, agriculture, construction, healthcare, associations and municipalities.

With the industry expertise of AXA's experts, founders not only save time, but also avoid both overinsurance and underinsurance.

You can find more information about AXA insurance cover for the self-employed here