The Insurance Wall: Risk Transfer

THE BRUTAL REALITY: RISK CANNOT BE DELETED; IT CAN ONLY BE MOVED

No matter how perfect your contracts are, someone will still sue you.

The Conflict: Most founders see insurance as an "unnecessary expense."

The Truth: Insurance is not a cost; it is "Risk Transfer." You are paying a small, fixed fee to ensure that a $5,000,000 mistake doesn't end your life.

The Fix: Build a wall of insurance around your most critical risks: People, Data, and Decisions.

1. D&O INSURANCE (DIRECTORS & OFFICERS)

If you get sued personally for a decision you made as a CEO, D&O insurance pays your legal bills. Without it, your personal bank account is the first thing the lawyers look at. This is non-negotiable if you have investors or a board.

2. CYBER DEFENSE

A data breach is the #1 way for a small tech company to go bankrupt in 48 hours. Cyber insurance covers the ransom, the legal fees, and the cost of notifying 100,000 angry customers. It is the "fire insurance" of the digital age.

SMART WORDS

DEDUCTIBLE

The "Pain Threshold." The amount you pay out-of-pocket before the insurance company steps in. A high deductible lowers your premium.

KEY MAN INSURANCE

A life insurance policy on the founder. If the "genius" dies, the company gets a massive cash infusion to stay alive during the transition.

GENERAL LIABILITY

The "Slip and Fall" coverage. Protects you from physical accidents at your office or by your employees.

TACTICAL DIRECTIVES

1. The Quote: Get a quote for Cyber and D&O insurance by the end of the week. Don't wait for a crisis.

2. The Exclusion Audit: Read your policy "Exclusions." Know exactly what the insurance *won't* cover before the disaster happens.

3. The "Key Person" Policy: If the company relies entirely on you, get a policy that pays the company enough to hire your replacement if you disappear.