Insurance: Managing risks

Nobody wants to deal with it, but insurance is vitally important for every business – especially for young companies that have not yet been able to build up financial cushions.

This article is part of the special feature GründerNavi – for founders and young companies

There are simply risks that cannot be managed alone. It's better to transfer these to an insurance company . The company charges a premium for this service, which the business can deduct as a business expense. However, unlike value-added tax (VAT), the insurance tax (19 percent) on this premium is unfortunately not deductible.

Otherwise, the rule is: it's not the quantity of insurance that matters, but the quality – what's actually included. It's just as pointless to insure yourself against everything as it is against nothing. What's important is that the most critical risks are covered.

Liability insurance

mandatory

Business liability insurance is absolutely essential . Business owners are legally liable for damages they cause to employees, customers, or others. Liability insurance policies essentially serve a dual purpose : they defend against unjustified claims for damages and cover justified claims up to the policy limit. This limit should not be skimped on , as legal liability is usually unlimited.

Incidentally, private liability insurance for the family is usually included free of charge with business liability insurance . However, additional insurance policies for particularly serious risks, such as environmental damage, incur extra costs.

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Anyone who fears that, for example, infected emails have been sent from the company PC after a hacker attack can Cyber ​​Police help. This covers third-party damage and also usually covers the costs of restoring your own ITThe scope of coverage varies from provider to provider, so read the fine print carefully. 
If you don't trust your employees at the cash register or in accounting, there are fidelity policies for you.

insurance

mandatory

Workshop and tools are Apart from the vehicle fleet, often the largest assets of a young company, sometimes on credit. Building and contents insurance covers these "valuables" against the following hazards Coverage: fire, lightning, explosion, hail, storms (wind force eight and above), tap water and burglary. 
For a relatively small additional premium, you can include natural hazards (snow pressure, flooding, earthquakes). This is advisable in almost every region, although these hazards rarely occur and certainly not everywhere. When they do, they have the potential for great destruction. 

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The most well-known supplementary insurance is business interruption insurance. As the COVID-19 crisis has shown, misunderstandings often arise in this area. Traditional business interruption insurance is linked to the aforementioned property insurance policies . Accordingly, it only pays out if a property damage causes the business to shut down . For example, if a fire destroys a workshop, the business interruption insurance would then reimburse the fixed costs (wages, rent, interest) during the forced closure. However, it would not cover a shutdown following a hacker attack . Separate cyber policies exist for this. Caution: A pandemic is also not considered property damage. And business closure insurance, specifically designed for restaurants, retailers, and food businesses, targets salmonella and similar contaminants.

Checklist for ongoing monitoring

Check at least once a year whether your insurance policies still fit your risks and whether the conditions are correct.

• Avoid underinsurance: If the insured amount is insufficient to replace the destroyed assets, this often means underinsurance. Determining the correct insured amount is difficult. Calculate the amount as if you would have to buy everything new on the date of the loss.
• Fulfill your obligations: As a customer, you have certain obligations to fulfill before and during the contract term, as well as in the event of a claim. These obligations are listed in the fine print. Failure to comply can lead to loss of insurance coverage. In the event of a claim, for example, you are obligated to minimize the damage as much as possible. Essentially, you must act as if you were uninsured. Failure to take rescue measures can lead to claims for recourse.
• Disaster preparedness: Insurance documents should be kept in a secure location so you can prove your claim, such as a safe or bank deposit box. An emergency plan should also be created, including the names, addresses, and telephone numbers of all persons to be notified after a loss, as well as the police, fire department, and insurer. 

CONCLUSIONFine printA thorough review of the terms and conditions will prevent a nasty surprise in the event of a claim. If in doubt, consult an expert.  
Insurance advisor They work neutrally and for a fee. They recommend, but do not broker, policies.
Real Estate Agent broker policies from various providers on a commission basis.
representative: only sell the policies of one company and receive commission for the conclusion and support of the policy.
Well camouflaged: Neutral comparison platforms such as Check24 are registered as brokers and benefit from commissions. 
Needs check: Under www.existenzgruender.de The Federal Ministry for Economic Affairs and Energy provides an insurance checklist.