Risk and Your Go-To-Market Strategy
Last blog we talked about what you would need when you are going through R&D, and what potential vulnerabilities you might have. Now we are onto the fun part: your product is ready and you are entering into the market (Roger Lay has a great breakdown of this lifecycle, and refers to this time as “MVP”, or “Minimum Viable Product”. Another interesting take on the lifecycle from AlleyWatch). This can be an extremely entertaining time, but also one fraught with nervousness: is the product really ready? Do I Truly understand my target market? Have we created a proper go to market strategy? It is also at this time that you need to start worrying about greater risks and vulnerabilities, and how you are going to mitigate and transfer those risks.
From my perspective, you should already have a General Liability (GL) policy and Errors & Omissions (E&O), however, if you don’t, you need to get these now. GL is the minimum you need to satisfy contractual requirement, and E&O will cover you if there is a defect with your product and delivery that results in financial loss to your clients. It is now that you should be considering:
- Directors & Officers Liability (D&O) which protects against court-related settlements or damages and legal fees for lawsuits brought against executives
- Business Interruption and Contingent Business Interruption to cover you for losses sustained due to various outages, costs required to remedy the outage and can cover outages within your supply chain
- Property Insurance can cover your products and supply chain should something occur
- Cyber Risk is a relatively new coverage, but will cover various loss scenarios attributed to cyber crime or disruption
- Crime policy to protect you against employee dishonesty
- There are many additional coverages consider based on your product or service, distribution channel and go to market strategy that you should speak to your Insurance Broker about
The most important thing to consider during this busy time is that you want to ensure your bases are covered, and this may not be your core competency. Work with an expert to understand your current and future vulnerabilities, and build a proper plan to mitigate and transfer those risks.
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