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"Thinking through innovative business models and creating new risk maps to make risks insurable in the European or UK market is one of our core competencies and inspires me every day."
Risk management may understandably not be at the top of a start-up's list of priorities, but it is ultimately of crucial importance, as the Watchmaster case shows.
As riskand insurance managers , we support you increating a suitable risk transfer concept. Depending on your business model (product / services), we translate the risks into a viable management / insurance concept. For example, cyber / IT liability and IP risks can threaten the existence of a SaaS case, while food start-ups have to deal more with recall costs and product liability in the context of personal injury and property damage. Subtle differences can have a fundamental impact on insurance cover, which is why a clear translation of your risks is crucial in order to have the relevant insurance in place in the event of a loss that threatens your existence.
Our experts will be happy to assist you, even with business model changes.
Suggested procedure: In order to address your risks appropriately, it is important to understand your business model in detail. We therefore suggest a non-binding meeting where we can discuss your concerns. If desired, we can also agree a non-disclosure agreement (NDA). At the end of this meeting and after presenting our concept, you will have the opportunity to decide whether we will become your Risk Partners.
In addition, our free guides are available to you, in which we have not only invested a lot of time, but also our extensive claims experience.
Florian was recently invited to the #VentureMate podcast with Artur Schneider and Luca Grunwald from the HHL Venture Capital Club and talked about our experiences in risk management.
Whether you're a founder, VC or any other role from the startup world, our founder Florian gives you first-hand insights and experiences on typical (liability) risks and what you can do about them in the episode. Some of the topics we discuss there:
Venture capital-financed growth companies have to manage special requirements from investors and stakeholders with each financing round. In some cases, these are also set out in the term sheets (especially for US investors). The balancing act of the liability fields becomes greater for all parties involved as the exit / IPO draws closer. We are the only specialist broker in Germany to support companies with a focus on VC-financed growth throughout all phases.
We have also developed special insurance concepts in our specialist area of D&O insurance for start-ups and scale-ups for which an IPO is a possible scenario in the next few years:
If there is a key person in your company, such as a "super brain" from IT or a special leader from the founding team, who is crucial to the success of your company, without whom the company would be worse off both financially and in terms of its positive outlook, key person insurance(keyman insurance) should be considered. This insurance is basically cover for a health event in the key person and pays out in the event of a prolonged absence of the key person in your company. Although the insurance benefit cannot prevent the loss of the key person, it can cover the costs of recruiting via headhunters, attractive signing bonuses or higher salaries for highly qualified replacements. An experienced partner for the recruitment of highly qualified personnel can often close the gap quickly. Many VCs now include the requirement for key person insurance in the term sheets in order to "hedge" the exposure and special dependency of an individual from the founding team. Particularly in the context of an investment in the (pre-)seed phase, the investment decision is often based on trust in the founding team.
Especially for scale-ups and pre-IPO companies, it is important to develop simple and viable (risk management) concepts that manage or transfer the key risks in order to avoid insolvency of the business model in the worst-case scenario. On request, we therefore go beyond the classic services of a specialist broker with our "risk management as a service" approach and support you in setting up risk management (spoiler: this will play a significant role in later due diligences / IPO prospects). From a risk management perspective, it is essential to create a common risk awareness in the first step, which is largely supported by the risk strategy. If you wish, we can develop this with you so that you can subsequently impress your investors in the due diligence process with a risk report and a deep understanding of your risks and the risk transfer of risks that threaten your company's existence.
On the basis of sound risk and insurance management, we develop a decision-making basis for your company. You decide what to insure and what not to insure. Because not every risk is worth insuring. Here is our basic approach:
Your added value through active risk and insurance management:
The Silicon Valley Bank case, which was identified as part of a risk management process and - if necessary - would have led to an adjustment of the banking strategy, also demonstrated the importance for young growth companies.
A holistic approach to risk management
We place identified and insurable risks on the global insurance markets for you in the best possible way. We know that this does not always solve all your challenges. Strong growth can lead to bottlenecks in the insurance department and/or a professionalization of risk management may be necessary. We can help you with this.
Risk management as a service
It is particularly important for start-ups and pre-IPO companies to develop simple and less complex (risk management) concepts. These must identify, assess and transfer the key risks in order to avoid the insolvency of the business model in the worst case scenario.
⭢ see the Watchmaster case, for example.
From a risk management perspective, it is essential to create a common risk awareness in the first step, which is largely supported by the risk strategy. Convince your investors in the due diligence process of your next financing round with a risk report and a deep understanding of your risks, thereby safeguarding against risks that could threaten your company's existence.
On the basis of sound risk and insurance management, we develop a decision-making basis for your company. You decide what to insure and what not to insure. Because not every risk is worth insuring. Here is our basic approach:
Your added value through active risk and insurance management:
The importance of this for young growth companies was demonstrated not least by the Silicon Valley Bank case, which was identified as part of a risk management process and - if necessary - would have led to an adjustment of the banking/treasury strategy.
From a risk management perspective, it is essential to create a shared risk awareness in the first step, which is largely supported by the risk strategy. Convince your investors in the due diligence process of your next financing round with a risk report and a deep understanding of your risks and hedge against risks that could threaten your existence.
On the basis of sound risk and insurance management, we develop a decision-making basis for your company. You decide what to insure and what not to insure. Because not every risk is worth insuring. Here is our basic approach:
Your added value through active risk and insurance management:
The Silicon Valley Bank case, which was identified as part of a risk management process and - if necessary - would have led to an adjustment of the banking / treasury strategy, also demonstrated the importance for young growth companies.
Rent-an-Insurance-Manager
We place identified and insurable risks on the global insurance markets for you in the best possible way. We know that this does not always solve all your challenges. Strong growth can lead to bottlenecks in the insurance department and/or a professionalization of risk management may be necessary. We can help you with this.
On the other hand, many companies do not (yet) have an insurance department with their own staff or cannot find suitable personnel. Above a certain size, your industrial risk and insurance issues require professional support to ensure that your investments and strategies are adequately protected. This is where we provide you with support tailored to your needs.
Building up your own staff to deal with your internal insurance issues is time-consuming and cost-intensive. This work is often carried out by the head of finance or legal, for example, but not by professionally trained insurance staff.
Our solution for your company: Rent-an-Insurance-Manager
Our "Rent-an-Insurance-Manager" concept allows you to hire core competencies in the field of insurance for a limited period of time and tailored to your needs, as if you had your own staff in place.
As an outsourced insurance department, Risk Partners manages and handles your company's insurance work, e.g. as an in-house contact for insurance issues, an interface to your insurance broker or to your insurers.
Your added value through Rent-an-Insurance-Manager:
On the other hand, many companies do not (yet) have an insurance department with their own staff or cannot find suitable personnel. Above a certain size, your industrial risk and insurance issues require professional support to ensure that your investments and strategies are adequately protected. This is where we can provide you with support tailored to your needs.
Building up your own staff to deal with your internal insurance issues is time-consuming and cost-intensive. This work is often carried out by the head of finance or legal, for example, but not by professionally trained insurance staff.
Our solution for your company: Rent-an-Insurance-Manager
With our "Rent-an-Insurance-Manager" concept, you can hire core competencies in the insurance sector for a limited period of time and tailored to your needs, just as if you had your own staff in place.
As an outsourced insurance department, the Risk Partners manage and take care of your company's insurance work, e.g. as an in-house contact for insurance issues, interface to your insurance broker or to your insurers.
Your added value through Rent-an-Insurance-Manager:
Request our guides now
How to avoid liability digitally and effectively as a business manager in 2024 and protect yourself properly for worst-case scenarios.
