My firm is just starting up. What basic coverages do I need at the beginning?
A. There are two ways to tackle this question: (1) a product driven (standard policies) approach and (2) a risk management approach. Initial insurance buying decisions are usually product driven and are triggered by demands from landlords, banks and equipment leasing companies. As soon as you gain familiarity with the basic insurance products, it is best to adopt the risk management approach. This allows you to identify what your exposures to risk are and to decide what role insurance and other mechanisms can play in: (1) retaining, (2) eliminating or avoiding, (3) reducing or (4) transferring your risks. Emerging Tech Insurance tries to foster the development of a risk management function in your firm. This is not a separate department, but instead it consists of risk management awareness and thinking in all key executives with overall coordination by a CEO and/or CFO. We rarely work with just one person at a firm; the norm is two to four. Typically, you will begin with up to four pol
