Guest post by Hunter Hoffmann
The movie of my life was on TV the other day, and it struck me that some of the decisions I made when I was much younger had an outsized impact on my life today and where I’m heading in the future. OK, there isn’t a movie about my life, yet. But, there is the next best thing – the Hiscox Reactor – a personalized virtual journey through my career powered by my LinkedIn Profile. Give it a try, watch your career unfold, and see what successes are in your future. 
The ending of the Hiscox Reactor experience is a surprise, just like the end of my life story will be when it finally gets made (message me to read my treatment). But what isn’t a surprise is how insurance coverage can protect a small business when it faces the inevitable bumps on its way to success. It’s part of the Reactor experience, personalized to your industry, and part of life.
Insurance isn’t always the first thing on the task list for an aspiring entrepreneur or small business owner, but it should be on there, even for the smallest firms. Building a business takes time, investment, and dedication, and having the right insurance protection for your business is the easiest and most effective way to make sure your hard work isn’t derailed by a simple mistake, misunderstanding, or lawsuit (warranted or unwarranted).
I know what you’re thinking, “But I’m on top of my game—mistakes aren’t my concern, growing my business is.” Confidence is a key to growing a small business, and getting the right insurance will only increase your confidence. It’s not just about the mistakes you might make, although professional liability insurance covers that. It’s also about keeping the partners you’re working with and your clients happy. Unfortunately, you can’t always do that – even if your work product is 100% error free.
If an unhappy client believes you didn’t deliver exactly what you promised, they can file a lawsuit. Even if their grounds for legal action are shaky, you’ll still need to defend yourself – and legal representation is expensive. And these suits can drag on, taking up precious working capital that you need to keep growing your business. Small business insurance can pay for legal costs so you can keep focused on your goals.
As your business grows and you add employees, you’re also adding exposures. You’re now responsible for their actions, and if someone feels they’ve been wronged, you’ll be the one opening your wallet.
Do your employees ever visit client sites, or work on client equipment like their computer systems? If they spill coffee on a laptop, rip a cord out of the wall, or cause a server explosion that wrecks the office, that client is going to want compensation for their loss. Either you have small business insurance to help reimburse them for their loss, or you could potentially be writing a nice big check. You need your clients to give you their money for your business to succeed, not the other way around.
It’s better to not put yourself at risk and to take control of the situation. Take the time to make sure you have the right insurance for your small business, a policy that’s really designed for your industry and company size. Once you have that, you’ll be able to avoid a lot of these types of risks.
The contents of this article and the linked materials do not offer legal, business, or insurance advice related to the needs of any specific individual business. Please consult your professional advisor.
Hunter Hoffmann is Head of US Communications at Hiscox insurance and is responsible for media relations, social media, internal communications, and executive messaging. Hunter lives in New York City with his wife and two sons – Walker and Otis. In his spare time, he moonlights as Chief Marketing Officer and deliveryman for Junior’s Fresh, a fresh baby and toddler food delivery service and cafe in New York City founded by his wife, Michelle. His passions in life are food, family, and the NY Yankees.
