Insurance, why bother!? Business Protection golden rules

WHY BOTHER!!!
It’s all a rip off right? Insurance never pays out. I’ve never had anything go wrong with me for the last (insert arbitrary number of years) so why do I need it?
Well as the old rock and roll saying goes, you’re only as good as your last gig. Break your arm and can’t play the guitar for 8 weeks and your band and fans will potentially drift apart depending on what you’ve had to cancel and the financial implications of your actions. Maybe it’s not even you, maybe your drummer breaks a leg, your keyboard player catches Malaria finding himself on an African odyssey, or your manager jumps ship for a better offer, or your sound man breaks up with his girlfriend because she is no commercial use to him anymore, gets a younger Thai model and becomes an international knob jockey for s***e boy bands…. you get the picture. There are so many factors that can have a financial impact on you and your business that are totally out of your control and if you don’t think about mitigating the risk in any business, bands, banking or Bonsai cultivation, you’re running a razors edge of risk that means one unplanned event could see the whole show crumble like Ozzy after a 24 hour bender.
You cover your house, your office, your office equipment, your car,  your dog/rabbit/cat/turtle, your house contents, your guitar of course! your phone, your tablet…and what about that “thing” that pays for all of that…you?  That’s what business protection is.
The upshot is this, there is no difference between your personal assets and your business assets, you have to cover your ass! Most people think business protection is complicated and expensive but the principles are simple….

Here are my 4 golden rules for Business Protection:

It has to be to budget – There is no point putting things in place you can’t afford on an ongoing basis. 6 months or 3 years down the line you hit a tough patch and cancel then you may not be able to get the same cover again if your health or circumstances have changed. Before I even look at products for my clients I try to find out what their realistic budget for business protection is because if you show products and prices, expensive “ideal world” scenarios, “I suggest Mr business owner you surround yourself in cotton wool and eat baked beans for the next 2 years”  first then the reaction tends to be “That’s too much, I’ll have nothing”….

Something is better than nothing – Prioritise, cover the basics first, most people can’t afford “ideal world” when it comes to most things. Yes I’d like that Vintage 1964 Chet Atkins Gretsch but it’s unaffordable and my ’64 reissue Strat will do the job for now.  When I’m a rock star I’ll get the Gretsch and the titanium flight case! Sort the following list into order of importance  (following a conversation with your adviser) Life Insurance, Share Protection Insurance, Key Person Insurance, Income Protection, Private Medical and start with the most important for now.

It has to be fit for purpose – It needs to do the job it is designed for; don’t buy the shiny effects pedal because you were a magpie in a former life and then find out it doesn’t work with your other gear. When you find out whether it’s fit for purpose or not isn’t at the beginning, it’s at the painful end when you have to claim and the only way to know for sure pre that event is to use a professional adviser. (see my next blog “Kill the Meercat”)

It has to be reviewed regularly – 6 months is a long time in business, a year even longer (really?!). So what is fit for purpose now may not be so in a year. Get it reviewed, the same way you do (or should do) with everything else you’re paying good money for. If your house contents now equal £50,000, £30,000 won’t cover it. It’s like making sure your kit is road worthy and you don’t turn up at the Enormodome for your biggest gig only to discover your amp has died and you don’t have the money or time to get a replacement because nobody checked. You’d sack your roadie right!?

If you need a heads up on what you might need in place to protect your business you can rock on over to the video link on the right, watch the short video, enter your details and a Business Protect adviser will touch base with you to follow up.
Keep the faith, keep rocking and make sure you stay on the road (to success).