Specific goals and consistent growth are the backbone of any successful business. With 63% of startup businesses failing after their first two years primarily due to thoughtless business models, the importance of having a clear and thorough business plan is ever so critical.
We understand that efficient planning is understandably no simple task, requiring extensive market research, cost analysis, funds, a qualified internal team, and understanding potential threats and competition. However, whether you have 20 employees or are running an enormous conglomerate, your business success relies on your ability to set goals and grow your business to achieve them.
Although it is vital to focus on your business today, it’s important not to lose sight of the big picture. Striving towards a massive, specific, and long-term business goal can be overwhelming. However, this is the exact reason goal setting exists. Breaking down your overarching goals into smaller and more achievable chunks will enable you to closely identify and track your intentions.
The biggest mistake in goal setting is not choosing worthwhile or achievable goals specific enough for you to prioritise and commit to. As much as goal setting is vital for business success, and when done efficiently can guarantee your business growth, the unexpected happens.
Business insurance comes into the picture when preparing for the unexpected and any inevitable incidents that are likely to arise. Business insurance is not only in place for specific incidents but to give you a sense of security and ensure the hard work you put into goal setting won’t go to waste.
We have compiled the top five reasons business insurance is essential in protecting your goals and guaranteeing an upward business growth trajectory.
1. Covers Your Professional Reputation
Goals and business objectives are guaranteed to be aligned with your business persona and professional brand, meaning you should be doing all you can to maintain this image and reputation.
Professional Indemnity insurance is one element of business insurance that can help protect your business and keep your goals intact. Professional reputation takes a lot of effort to build and maintain, so this type of insurance is important and not limited to doctors, lawyers or engineers. In fact, anyone providing any advice or consultancy services for a fee is exposed to professional liability and should consider this insurance.
Even offering simple advice about one of your products or services could leave your business exposed to unhappy customers or even legal action, which can put a hold on the business goals you have set. A simple oversight could end up costing your business considerable legal costs, in addition to a loss of reputation and may even require a complete overhaul of your business goals.
2. Help Your Business Recover From Any Incidents
The risk of potential legal action and liabilities are inevitable and part of your business risks. Increasing globalisation has also made every industry, business, and operation more complex and challenging to navigate.
As part of your business goal setting, you should be considering these risks and take active steps to manage and prevent or control them. However, if you are exposed to legal action and damages, ensuring you are protected by product and liability insurance is a crucial step in your goal planning procedure.
Product and Liability insurance essentially protects you against legal costs and claims for personal injury or damage to a third party arising at your business or from goods sold, serviced or supplied. While your business goals will include preventing injuries or damage from happening, this insurance will help you get back to business as usual quickly.
This type of insurance protects you against the unexpected by covering any legal costs and compensation awarded by the courts relating to your business. This type of insurance can cover public liability, product liability, advertising liability, goods in care, custody and control, driving risk etc.
Understanding exactly what your insurance covers can help you set your goals to reduce, avoid or minimise business liabilities or you can adjust your insurance policy to help you achieve your specific goals.
3. Protect Your Goals Amid Disruptions
Like the current Omicron outbreaks, disruptions and disturbances in business practices happen. Despite the size of your business, if you exist within an industry, your trajectory relies on more than your efforts and will be influenced by external factors.
Although disruptions are expected, we’ve seen a rapid increase since the start of the COVID-19 pandemic. While this has taught us a lot about adapting to external environments, it has also taught us the importance of managing potential risks and disruptions.
Business Interruption insurance is designed to protect businesses against physical loss or damage type losses such as fire, storm or machinery breakdown that forces your business to close for an extended period. It is a highly beneficial and powerful type of insurance that can assist in returning your business to the financial position it was in before the damage occurred, helping you get back on track and achieve your goals.
When choosing the basis of this insurance cover for your business, it is vital to consider the factors that best align with your business goals. Things to consider are:
- How long do you need the cover for? Consider any time factors within your business goal.
- How much are you willing to spend? Consider how much is sufficient cover to ensure your set goals are still achievable without compromising on any of your economic goals.
- Do you have any significant intentional business changes or supply line issues? If your business goals depend on overseas suppliers, consider how the policy will cover you.
4. Safely Accomplish Your Goals Online
Technology is now so profoundly entwined into our lives and business practices that it is nearly impossible to remember anything different. Yet, while we have a lot to be thankful for regarding technological advancements’ significant efficiencies and conveniences, we cannot dismiss significant cyber risks daily.
Cyber insurance is essential in this day and age, where cyber-attacks are rapidly rising. The latest annual Australian Cyber Security Centre Threat report identified that there had been another 13% increase of cyber incidents in 2021, which won’t be decreasing any time soon.
Despite these statistics, many businesses don’t fully understand or factor cyber-attacks and the loss of computer systems into their business plans, putting themselves and their business goals at risk. However, the reality is that anybody or any business with a web portal, collects data or uses a computer connected to the internet is at risk. Understandably, to succeed with your business growth plans, it is vital to minimise these risks and be prepared for their occurrence.
As one of the best forms of managing the financial impact of cybercrime, cyber insurance covers a range of first-party and third-party losses, including loss of business income and customer losses. Ultimately, with this insurance, if you are subjected to a cyber-attack and are adequately covered, you will be able to return your business to what it was and continue achieving your goals.
5. Recover Quickly From Physical Damages
If your business plans to build new premises or expand, Contract Works Insurance is a key element to reduce the financial risk of accidental loss or damage during its construction.
Any physical damage of the work or third-party personal injury, including workers on-site during a project, construction can understandably put a massive halt on your business endeavours. Not only can it be extremely costly having to pay for material and injury damage, but it can have an impact on your reputation.
Regardless of the type of accidental loss, damage, or personal injury, this type of insurance is essential to achieve your goals without suffering extended delays or significant financial loss.
Creating your brand and building your business takes planning and goal setting and is extremely important to your business success. Understandably, it is ever so important to consistently ensure these goals remain achievable as your business circumstances change.
This includes modifying your goals as your business grows, prioritising what is important and preparing for the unexpected. Business insurance in its various forms is ultimately a key financial support to your hard planning work paying off and the backbone to your success.
For more advice and information regarding the best insurance cover for your business, contact Insurance Advisernet today. Our professionals specialise across various insurance types and are passionate about seeing everyday people.
This communication, including any weblinks or attachments, is for information purposes only. It is not a recommendation or opinion, your business or personal objectives, financial situation or needs have not been taken into account. This communication is not intended to constitute personal advice.
We strongly recommend that you consider the suitability of this information in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.