How Embroker Protects Startups and Helps Them Mitigate Risks

1. How Embroker Protects Startups and Helps Them Mitigate Risks Embroker has emerged as a pioneering digital insurance brokerage for several recent contributions to the industry. They’ve launched the first (and only) fully digital D&O insurance policy for startups and offer dependable, vital policies for startups and growing businesses such as cyber insurance. Their incredible solution for startups, the Embroker Startup Program, offers unprecedented convenience, as startups can get a quoteand purchase D&O, EPLI, and Fiduciary Liability insurance from them in less than 60 seconds. Why Startups in Particular Face Risks Startups are vulnerable to management liability claimsfor many of the same reasons that make them viable. They tend to be small and lean, as well as founded by investors and venture capital funds, and in some cases those running them don’t have a traditional business background. All of this lends itself to out-of-the-box, nontraditional innovation. But this can also increase the risk of mistakes or oversights that can result in lawsuits. These lawsuits are a major distraction both operationally and financially, and occasionally there’s not enough operating capital to cover the cost of the lawsuit or protect the business and those in key management positions. D&O Insurance

2. The lifeblood of startups is often an influx of investment from third parties. For those investors, backing the right startup can mean a tremendous ROI. It also means that investors and shareholders can have unrealistic expectations of ROI. When the huge returns don’t materialize, and business decisions are placed under scrutiny, it’s not unheard of for those investors and shareholders to file lawsuits against the directors and officers of a startup, claiming financial mismanagement. Fortunatel, D&O insurance protects the management team and the business by transferring the costs associated with lawsuits such as financial mismanagement to an insurance carrier. As such, D&O insurance is also often a condition of venture capital investment. EPLI Insurance It’s tempting for the founders of startups and growing businesses to think, “I am a decent person who treats other people respectfully and fairly, I’m simply not concerned about employment-related lawsuits.” As too many entrepreneurs—and some without a lot of business management experience—have found out, being a decent, respectful person isn’t always enough. Thankfully, EPLI insurance helps protect your business from claims based on wrongful termination, harassment, breach of contract, wage and hour law violations, and anything related to discrimination. Misunderstandings, oversights, and inappropriate behavior can all result in lawsuits. Fiduciary Liability Insurance Fiduciary liability insurance helps startups manage risks while protecting both the company and employees in regard to fiduciary-related claims. By offering employee benefits such as pension, 401(k), employee stock ownership plans, profit sharing, even health and welfare plans, a company has a “fiduciary duty” to act in the best interests of their employees. While it’s primarily the fiduciaries that are covered, those directly involved with the management of said benefits or plans, the business itself, and the personal funds of its management, are vulnerable. Lawsuits can be filed for missing details in plan documents, errors and omissions, alleged improper advice or investment, even the negligence or malfeasance of third parties. It’s outlined in the Employee Retirement Income Security Act (ERISA) that anyone overseeing employee benefits can have a lawsuit filed against them if it’s deemed things have been mismanaged. This is the bottom line: Covering your business liability and managing your risks can help keep your startup protected and operational. Ensure the future of your startup or growing business, at https://www.embroker.com/