Grow through the stages by headcount 11 of 23 in this group
SOP 156
Insure against what could kill the business
What this page is for. Use it when you are deciding what insurance the business needs beyond the basics. It carries the habit described for choosing cover, the cover recommended in the finance step of SOP 157 — Optimize the business at twenty to forty-nine people, and one line on equipment from the technology step of SOP 152 — Sell a second product at ten to nineteen people. Every statement below about what a policy does is carried as it was made.
SOP-156-Insure-against-what-could-kill-the-business.md
1. What to insure, at a glance
| Cover | Stage | Why, as stated here |
|---|---|---|
| Cyber security insurance | Twenty to forty-nine | One of these big losses could put your business under |
| Business interruption insurance | Twenty to forty-nine | Said to cover your overhead while you replace something whose loss majorly affects your business; for example, it could cover six months of fixed cost |
| Insurance on equipment | Ten to nineteen | Part of the rules around the devices the company buys its people |
2. The habit: what could kill the business?
The habit described is to ask what things will kill your business, and what little percent you can pay today so that those things stop being a worry at all. The finance step at that stage closes on the same question: consider some of the higher-level cover where you think you have more exposure, asking what could kill the business and how to prevent it (SOP 154 section 8).
The same test was set for basic business insurance at five to nine people, where the basic cover named is general liability (SOP 150 section 6).
3. Cyber security insurance
Consider it. In the view here, it is worth it, especially now, with AI and the rest of it getting so advanced. It is called one of the most expensive types of insurance, because it is so prevalent. One of these big losses could put your business under, so, in the view here, it is strongly recommended.
The reason offered is the case on SOP 155 section 7: a payment sent to a new account on a spoofed request, a loss that for some businesses could be fatal even when insured.
4. Business interruption insurance
This one is recommended as well. If some material thing majorly affects your business, such as one of your vendors going out of business, this insurance, in this view, will basically cover all of your overhead for the time it takes you to find someone to replace them. One example: that could mean the insurer paying six months of your fixed costs until the business is up and running again.
5. Insurance on equipment
At ten to nineteen people, when the company starts buying its team good laptops, phones and service, the advice is to get insurance on all of it, beside strong policies on return and damage (SOP 155 section 3).
6. What this page does not decide for you
- What any of this cover costs. This page gives no figure for premiums.
- How much cover to buy. Not established on this page.
7. What this page does not cover
Insurance law and policy terms are not covered on this page.