What About “Poor Decision” Insurance?
A reader wrote in to Startup Journal with an interesting business idea:
“I would like to set up a firm that offers protection to people making life-altering decisions. Let’s call it decision insurance for now. Target customers could include entrepreneurs or new immigrants. Is this a viable business idea? Where should I start my research?”
Startup Journal responded with this advice:
Still, within your broad idea may lay a workable niche. He sees similarities to business-interruption insurance, which is already available. If you have a meat-packing company, and lose power, you lose your inventory and your business day. That’s an insurable risk.It might be worth examining other narrow business angles, says Loretta Worters, spokeswoman for the Insurance Information Institute based in New York, another organization you might check out. A narrow business policy insuring against bad hires might be an area, she muses. Many companies, she says, now have hacker’s insurance, protecting their information systems from viruses and hackers. Many companies have kidnapping insurance for their top executives. “Things are created based on need,” Ms. Worters says. “One concern I’d have is that this sounds as though it would be duplicative of other policies,” she adds, such as other business-liability insurance.
She thought there might be merit in the immigration approach. Perhaps you could write a policy that insures against deportation or other legal entanglements. “But it wouldn’t be the most lucrative area,” she cautions.
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