Monday, 6 July 2020

To start, and to maintain, a business requires dedication and diligence.

Business owners just like you would do everything within your means to keep the business running smoothly and securely. However, all businesses face risks such as theft, employee accidents and property damage, which could eventually be very costly to their business – especially without proper insurance protection.

Many small businesses are underinsured or are not insured due to the cost factor involved. It is risky to disregard such precautions especially if there aren’t sufficient liquid assets to cover such unexpected losses. You worked hard to start your business, it pays to ensure that it is well protected.

Let’s have a look at the five tips you can use to protect your company for against any surprises that tomorrow may bring;

  1. Understand your specific business needs.
    Every business is unique, hence you need to refer to your business plan and carefully identify all the business’ potential risks. With the wide range of insurance products to choose from, this can sometimes seem overwhelming. To help, you can begin by researching online for business insurance packages based on your industry and compare the package components. This would give you an idea of potential coverage required. Thereafter you can seek advice from reliable insurance representatives to gain an even better understanding of your choices. Explore insurance options needed for your business today.
  2. Write a list of your risks.
    No matter how well you plan, your business can always encounter unexpected problems. It’s best to limit your risks however and wherever possible. When your business is faced with uncertainties such as having spoilt stock, theft and public liability claims can seriously jeopardise your business. Identifying the potential risks your business faces is the first step to protecting your business. With the correct coverage you are able to prevent identifiable risks and minimise those that are unavoidable. Carefully assess the risks you face and select the coverage your business requires. Often, business packages consist of a bundle of different types of coverage such as general liability, business interruption and public liability to fully protect your business.
  3. Avoid common misconceptions.
    Regardless of the size of your business, even if you operate from home, it is practical to procure the proper insurance coverage specifically for the home-based businesses. It is important to understand that your homeowner’s policy does not cover your business assets. Often, business owners think that standard homeowners policies provide coverage for home-based businesses. That is not the case in most instances. In most circumstances, business owners should have a separate commercial policy to safeguard business property and liability restrictions for business-related loss exposure. Although some policies may protect your personal assets however they do not cover your business losses, such as loss of income, when inventory gets damaged or stolen or when customers gets unexpectedly injured. Having a home-based business policy is worth the investment to ensure the sustainability of your business.
  4. Keep it simple.
    Buying sufficient business insurance is wise but no business owner wants to pay for unnecessary coverage. Many business package policies provide comprehensive protection against exigencies such as third-party liability, personal accidents and fire. While many single plans may combine several types of business insurance, it is often best for you to consult a reputable insurance agent to truly understand the policies required and save money.
  5. Re-evaluate Periodically.
    As your business grows over time, your risks usually do too. As such, a growing business may require additional insurance for specific types of risk. If you introduce new products or services, hire new employees due to sales growth or purchase new equipment, it makes sense to review various options like general liability, business interruption and workers compensation insurance policies.

Having identified new risks, schedule a meeting with your insurance agent to review your current insurance plans and top up when necessary to ensure that your business has adequately protection.

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