E-business pioneer and entrepreneur Jim Zuffoletti has learned that the insurance needs of emerging businesses are often driven by clients' expectations.
"When you work with large companies, they expect your insurance coverage to be comparable to their own," says Zuffoletti, one of the founders of FreeMarkets Inc. and now president of OpenQ—a solutions provider for life-science companies. OpenQ's suite of tools allows pharmaceutical, biotech and medical-device companies to collaborate compliantly with customers, external consultants, researchers and other stakeholders.
OpenQ is contractually expected by some of these clients to cover $5 million of liability coverage. "It wasn't easy to find brokers," Zuffoletti says. "It took some doing and some creative work."
Besides the typical insurance coverage, Zuffoletti's company also carries Errors & Omissions coverage to protect itself against negligent employees.
One other key insurance need goes a long way in attracting good people as employees, he adds: "One of the earliest challenges is getting a medical-insurance plan in place. It can mean the difference between hiring a talented person or not."
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