The Competitive Advantage of a Group Benefits Plan for Tech Companies
If you recall, our last blog focused on an extremely exciting time in any company’s lifecycle: the initial launch of their Minimum Viable Product. After this there are 2-3 more stages of Growth and either Exit or Adjustment. For the purposes of this discussion however, this may seem like the least amount of involvement, however now is when it is important to continually audit your Insurance, Group Benefits and Enterprise Risk Management Structure.
Hopefully by this stage you have already implemented a Group Benefits, RRSP and Pension plan. As we have discussed, this can be an important competitive advantage for luring in the top talent from your competition. You should also be considering additional benefits to your employees, such as Group Home and Auto, Disability and Wealth Management tools. The other thing to consider is the management of these activities. Do you want to manage this in house, which means hiring people with experience, purchasing the tools to automate/manage it, and continually monitoring it. The other option is to outsource this process to a Service Provider and allow yourself to focus more resources on your core competencies.
If you are considering going Public with your company (congratulations!), then you will need to work with your Insurance provider to adapt your overall Commercial Insurance Program to an IPO/Public Company exposure as necessary. You will also need to consider adapting your D&O Insurance Program for IPO/Public Company exposure as well.
More importantly though is to ensure that you are continually ensuring that your Enterprise Risk Management strategy is in play, and properly adapted to your company goals. Part of this is to continually ensure your coverages properly transfer any vulnerabilities and/or gaps that you may have in your risk portfolio.
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