Business idea/decision insurance
| posted by k. kemperBusinesses insure one's heath, vehicles, equipment,
and against fire and water damage but not agaiinst
risks. Why not ?
I think i have a prototype answer:
10 yrs ago, on paper, I invented Bod Bopi;
Business Operations Decisons,
Business Operation's Profits Insurance.
The idea is Using ACTUARIES to focus on the historical
successful decisions that a company has made and
the unsuccessful decisions and create a matrix based on both.
Then, self-fund [from retained earnings] on a prototype
approach, an insurance policy that insures new
decisions.
AFter several firms have done this.....or
just starting it at one INSURANCE firm,
sell this to both start-ups and 'usually' successful firms that are having troubles.
So, if one firm is ready to start, for example, a restaurant
[the most common new start-up], the insurance underwriter would review the business plan and compare to a hundred
other restaurants to see how this will be different.
If the new one is "way out there" , the insurance
would be perhaps equal to 50% of its cost of starting,
so that it can only lose 50% of its net worth.
----
if a restaurant that is in an underserved area and
is following an accepted theme, its rate would be less
expensive.
---------
if a new invention, start up, the insurance underwriter
compares the similarities of competitors, the biz plan
and the length of time to break even and determines
the risk factor.
--if an expansion of a going firm, it does the same thing
but the cost of insurance is less because the risk
is less to the firm.
------------
facts show 90% OF ALL new businesses are gone
after 5 yrs. With this approach, it is felt that 1/2 of the
start-ups would not be so spontaneous but do more
research. That would stop a lot of failures right there.
those that did fail would at least not walk away broke.
This insurance would require the use of a new type
of insurance, as ID'd above, and it would require the
insurance fim to have a biz consultant in the field,
to ID the difference between supposition and
actuality. And, as mistakes are made at the insured
firm, the consultant can be there to change if
authorized or make fast suggestions to reduce
risks as they occur.
[This insurance inventor is a business consultant].
I seek comments on this.
It is still in the process of being tweaked. I am
proposing that it would take 1-3 yrs to
tweak and polish and when beta is over,
it would alter the world of business decision making.
