Entrepreneurs invest a lot of energy into getting their businesses off the ground and finding ways to differentiate themselves from their competitors. Unfortunately, due to time constraints, few put the same dedicated effort into finding the best insurance solution for their business.
Every business is unique, and there is no guarantee that stock standard insurance solutions can cater to the day-to-day needs of every small-and-medium sized enterprise (SME). That is why it is always a wise decision to work alongside an experienced insurance adviser to tailor policies and risk solutions that fit the needs of the business while also freeing up capital.
Starting with basic insurance needs first
All SMEs need to start with their basic insurance needs first. Most businesses have at least a few insurable risks in common. They all need to protect against business interruptions, costs of property damage, theft and liability claims made against your business by others.
However, these cover options do not necessarily protect your business against all the risks that make it unique.
Since every industry is regulated differently, business owners need to start their search for bespoke risk management solutions by looking at the indemnity policies that the professionals in their company require. Especially if your company offers specialist advice, you should be taking out policies that protect you and them from liability claims for professional errors or omissions.
Next, he states that cyber insurance is an indispensable part of any entrepreneur’s cover. Most businesses operating today are dependent upon digital technology and data storage in some way.
However, the amount of customer data that you store, how dependent your business is on online traffic, and what you do with the data that you gather, differs widely from business to business. With this in mind, you should be consulting a knowledgeable adviser on putting together a cyber policy that fits your pocket while ensuring that you are covered for loss of data and third party claims.
The most unique aspects of the business
You should also be looking at the most unique aspects of your business. Some businesses have environmental risks to consider, which is where a good environmental risk insurance policy can be most helpful. This would cover the cost of clean-up and environmental damages in the event that there is a spill or leak of hazardous materials.
Other companies may need to insure against catastrophic loss of perishable inventory, or cover risks associated with transporting goods. In all of these cases, there are policies that look to help mitigate the associated risks.
Lastly, there are also the additional measures that business owners should take to contain their insurance costs. Not every risk can be managed with insurance. Your policies may require that you take extra precautions in order to qualify for cover, or there may be risks that need to be managed in the absence of adequate insurance. In either case, your insurance adviser is the best resource for all of the information that you need.
Business owners should never settle for stock standard solutions when it comes to their operations. How well you manage your risks ultimately determines how resilient your business will be when it needs to recover from unexpected events. Find an adviser that shares this view, and who will help you set up cost-effective cover.
Article credit https://www.bbrief.co.za/2022/01/17/why-businesses-need-tailor-made-insurance-solutions/