Navigating Risk with Confidence

In the ever-evolving world of business, insurance isn't just a safeguard—it's peace of mind. Whether you're an investor or an entrepreneur, understanding the right coverage can make all the difference. Here’s a closer look at the key insurances every start-up and scale-up should consider:

Early Stage

As you get your business off the ground, certain protections are crucial from day one.

• Employers Liability Insurance: If you’ve got a PAYE scheme or run a limited company with more than one director, this is non-negotiable. It's the legal foundation of your risk management.
• Intellectual Property Insurance: Your ideas and innovations are what set you apart. Protect them. This coverage steps in to defend against infringement claims and the costs involved in enforcing your rights.

Fundraising

Investors do their homework. They’ll often require certain insurance policies before they commit.

• Directors & Officers (D&O) Liability Insurance: This isn’t just for the directors—it’s for anyone in a leadership role. It’s a safety net for personal liability in cases of alleged breach of duty, neglect, or errors.
• Keyperson Insurance: For investors, the people behind the business are just as important as the business itself. This coverage ensures the company can weather the storm if a key figure is lost.

Regulatory & Contractual Requirements

In today’s environment, certain insurance coverages are often required by law, clients, or vendors.

• Professional Indemnity (PI) Insurance: Mistakes happen. This insurance covers you when they do—especially when they lead to financial loss for a client. It’s particularly vital for tech companies, where service or product failures can be costly.
• Cyber Liability Insurance: Data breaches and cyber-attacks are more than just a headache—they can be catastrophic. This policy offers a comprehensive response, from legal support and IT forensics to public relations and business interruption coverage.

Scaling Up

As your business grows, so do your risks. That’s why it’s important to regularly review and update your insurance program.

• Package Insurance Policy: Now that your business is up and running, it’s time to think about protecting your assets. This policy also includes Public Liability Insurance, covering legal liability for third-party injuries or property damage.

Remember, this isn’t an exhaustive list. But it’s a strong foundation that you can build on as your business evolves.

About Paragon:

At Paragon, we provide comprehensive support across the entire investment ecosystem. With deep expertise in the Financial Services sector, we offer a 360° service to investors, covering professional risks from investment through to exit. We also assist in mitigating your risks by ensuring your portfolio is fully protected with comprehensive insurance programs, offering free reviews and independent advice.

Our extensive experience spans the full spectrum of investors, including Business Angels, syndicates, Private Equity, Venture Capital, and AIFMs. Additionally, we provide tailored professional and operational insurance solutions to meet your specific needs.

We are equally committed to supporting entrepreneurs throughout their investment journey. By creating bespoke insurance programs, we help manage overall risk, providing essential protection and peace of mind as you build, grow, and scale your business.