By Spencer Achiu – November 2023
The Nightmare of Every Business
“You’ve been served.”
This notorious sentence can have a chilling effect on its recipient. For business owners, lawsuits can seemingly come out of nowhere. One moment, everything is churning along smoothly as you serve your clients. The next, you find yourself answering discovery requests for documents tucked away in boxes that haven’t seen the light of day in years. All the while, your legal defense fees and costs are adding up to a point where you feel like you might drown.
Fear not! There are things you can do today to get ahead of this nightmare scenario and mitigate certain risks from ruining your business. This article discusses three types of additional insurance coverage you may want to consider beyond your basic general liability policy.
Workers’ Compensation Insurance: Upholding Employee Well-Being
Employees are the backbone of just about every organization. Workers’ compensation insurance stands as a testament to a company’s commitment to their employees’ well-being. It serves as a legal safeguard, providing financial support for medical expenses and lost wages in the event of work-related injuries or illnesses. This coverage is not just a legal requirement but a strategic move to protect a company’s most valuable asset—its workforce. Dealing with expensive medical care and rehabilitation costs for an injured employee can bankrupt a company, especially ones operating on thin margins. Workers’ compensation insurance serves as a financial buffer for the business.
Inventory Insurance: Guarding Physical Loss
Over recent years, we have seen sharp increases in retail theft due to changes in laws and policy attitudes regarding the prosecution of offenders. With little to no consequences for stealing up to hundreds of dollars’ worth of merchandise, many businesses are suffering from severe looting, theft, and other property offenses. Inventory insurance acts as a formidable shield against physical loss or damage. This coverage is instrumental in maintaining the financial integrity of a company, especially retail storefronts with exposure to these types of crimes.
Cybersecurity Insurance: Defending Digital Frontiers
These days, it seems all too common to see news headlines about another company that was hacked, and its systems held for ransom. One such recent victim was MGM Resorts which is estimated to have suffered around $100 million dollars from a cyber security attack that compromised its systems and shut down the casino’s ability to operate just about everything with a computer, including electronic slot machines. The importance of cybersecurity insurance cannot be overstated. As businesses increasingly rely on digital platforms and retain sensitive customers data, it is paramount to take proactive measures against cyber threats. Cybersecurity insurance provides a financial safety net in the event of data breaches, hacking, or other cyber-related incidents. It is an indispensable element in safeguarding a corporation’s reputation and financial stability, especially during transactions where the value of digital assets is at its peak.
Conclusion
For many people, your business is your legacy. These additional forms of insurance coverage can help you to protect that legacy for multiple generations to come. Benjamin Franklin once cleverly asserted that “an ounce of prevention is worth a pound of cure.” It may be better to take significant precautions than to suffer significant consequences later.
Expert Guidance Makes All the Difference
At Navvee Law, we’re more than just attorneys; we’re your strategic partners in achieving your business goals. Whether you’re considering a stock or asset acquisition, or seeking a unique, legally sound, and cost-effective structuring solution, our team can provide invaluable insights. We help you navigate the regulatory landscape, understand potential tax implications (bringing in a certified tax advisor for the more complex tax issues), and generally just manage the complexities that come with each type of transaction. We’re committed to standing by you throughout the process, ensuring a smooth and successful deal.
Questions to Ponder
- Does my company have employees?
- Does my company rely on computers, software, the internet, and other vulnerable systems?
- Does my company carry and sell physical merchandise?
- What transactions is my business engaging in that could result in injury or harm?
Feel free to reach out to us at Navvee Law to discuss these questions and any other concerns you may have. We’re here to guide you every step of the way.
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About the author: Spencer Achiu is an attorney with Navvee Business Advisory and Law, which is headquartered in the Las Vegas, Nevada metropolitan area. Spencer obtained his law degree and Master of Business Administration from the University of Nevada, Las Vegas in December 2022. Spencer was admitted to the Nevada Bar in May 2023.
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If you have any questions about the contents of this article, please feel free to reach out to spencer@navvee.com, and/or if you have any business or legal needs, please feel free to reach out to our office at info@navvee.com.
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Disclaimer: The information provided in this article is for general informational purposes only and should not be taken as legal advice. The contents of this article do not establish an attorney-client relationship, and the reader should not rely on the information provided herein for any legal matters. If the reader has specific legal questions or concerns regarding their situation, they should consult with a qualified attorney who can provide advice tailored to their specific circumstances. The author and publisher of this article do not assume any liability for actions taken or not taken based on the information contained in this article.
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