Overview and key points
Launching a new business is challenging – there’s so much to do and your success depends on getting things right from the start
Arranging the necessary insurance cover is part of that process and when you operate in the science and technology sector, it can be far from straightforward to understand what’s needed for your business.
We were delighted to support Northern Light Microscopy on their journey and here we share their story of spin-out success.
Northern Light Microscopy is a spin-out from the University of Strathclyde and develops and manufactures optical equipment for the life science sector. Although a start-up business in 2024 with two employees at outset, their estimated turnover is £300k in the first year.
Challenge
Northern Light Microscopy was introduced to Partners& by Strathclyde University, with whom we have a strong relationship supporting their spin-out companies.
As a start-up business operating in the science and technology sector, Northern Light Microscopy needed to establish an insurance programme to cover not only the initial contracts they had secured, but also material damage.
The company had looked at arranging the minimum cover to address their immediate needs without considering their anticipated future growth and the financial support they would need to move their business forward.
Their business plan involved further funding rounds and therefore required a robust insurance and risk management plan to be in place to secure the investments needed.
Support
The Partners& Science and Technology team spent time with the company, getting to know their business, the challenges they were facing and their aspirations for future growth. This enabled our team of experts to guide them through the insurance cover they needed both now and to protect against the emerging risks that would arise during the growth process – particularly with regards to funding and the requirements of potential investors.
By arranging a comprehensive, bespoke technology insurance policy, designed specifically for start-up businesses, Northern Light Microscopy now have the cover needed for all liabilities and material damage, as well as future-proofing against risks that are likely to arise as they grow. This also enabled them to meet the requirements of the initial contracts they had secured.
The next step was to introduce Northern Light Microscopy to our Wellbeing, Health and Protection (WH&P) team as they were keen to find out more about key person protection as this would be a requirement of any future investors. With the guiding hand of Georgia Carter and the WH&P team, key person protection was arranged giving the company the financial reassurance that they have resilience should something happen to the individuals that are vital to their business.
Perform
The advice given and insurance arrangements we put in place gave confidence to our client that they were clearly in the right hands with Partners&. They were reassured with our expertise in the technology sector and the clear explanations given to help them understand the risks the business could face. They also gained confidence that their insurance cover would protect them now and help to build resilience as the company grows.
As Northern Light Microscopy will be seeking funding in the future, we introduced them to our Ecosystem Partner, the CFO Centre who are able to support them with insight as to what they could expect as they meet with prospective investors.
We have also connected Northern Light Microscopy with another Partners& client who can potentially provide support in manufacturing the machinery that they need.
Delivering insurance advice and relevant solutions to start-up enterprises is fundamental to the continued success of this important UK sector. With minimal support once outside the university environment and online insurance advice rarely delivering the level of cover – and explanation – needed by spin-outs and start-ups, our proposition offers the right advice that will make a difference to their success.
As part of our spin out process from the University of Strathclyde, we were acutely aware of the importance of having a comprehensive insurance policy, but didn't know even the basics, let alone what our obligations as an employer would be or the liabilities that were associated with bringing physical products to market.We were put in touch with the team at Partners& and they truly went above and beyond to become a partner in our journey. Not only were they able to provide tailored professional advice and insurance services, but they made the effort to understand our business and our specific needs to get us bespoke products that meet the exact needs of our business. Between these services and the introductions and network that they can tap into I would have no problem recommending Partners& to any other spinout and startup in our network.