чт. мар. 30th, 2023

What insurance do small businesses need to survive? – 2022

Having taken your business from a start up to one with that is stable and has good prospects for growth, you know the importance of a business plan that considers and responds to operational and legal pitfalls that could hurt a small or medium sized businesses.

The right insurance is just as important to protect your business from the dynamic risks of today. This article explores the kind of insurance that responds to these dynamic risks.

5 types of cover all businesses need

Discovery Insure CEO Anton Ossip says that in general, businesses need cover for:

  1. Their business assets, which may be tangible or intangible;
  2. Theft, including theft by employees;
  3. Loss of profits or revenues following interruption of or interference with the business;
  4. Legal liabilities to compensate third parties for losses suffered owing to actions or negligence of the business. This includes liabilities arising from social media interactions.
  5. Losses to the business and liability to third parties following a cyber-attack on business computers.

“Tangible assets are things that you can physically see and touch and include buildings, office contents, motor vehicles, electronic equipment, stock and cash,” Ossip explains. “Intangible assets are not physical in nature and include, for example the business reputation and brand name.”

Any of these events, theft, losses or reputational damage can have negative consequences for a small business.

“Interruptions to a business can also be devastating and many businesses are forced to shut down following a loss owing to interruptions or financial difficulties,” Ossip says.

How technology has changed business insurance needs

Technology may work wonders for your company. For instance, by using business diagnostic tools, you can assess the health of your company and determine how to spur growth.

However, the sort of risks that organizations confront has also evolved as a result of technologies like computers and the internet. For instance, if a company’s computers are damaged and it is unable to conduct business as usual, it could suffer financial loss. Businesses must also consider reputational risks, social media liabilities, and cyber threats. Non-physical damage or business interruption is what all of this is.

What happens if you don’t have business insurance?

According to Ossip, „SMEs and start-ups face many challenges related to financial and operational issues.“ „It is crucial for these businesses to have insurance that shields them from risks that could result in significant financial losses from which the company might not be able to recover. Businesses may concentrate on expanding since they have the necessary protection from their insurer, thanks to insurance.

Your operations could be delayed by a few days by something as common as a power outage that could cause a power surge and harm to your computers. Your company can suffer severe losses as a result. Would you have the financial resources to soften that blow?

How to choose the best insurance for your business

Every business has unique needs; which is why it’s important to consult with an insurance broker or financial adviser on the type of cover that’s right for your business.

“It is also important for businesses to choose business insurance that covers them comprehensively for all their unique risks,” Ossip says. “As such, choosing a good business insurer who offers comprehensive and superior cover for the business is vital to making sure that you are adequately protected.”

How is Discovery Business Insurance different from traditional insurance?

According to Ossip, „Discovery Business Insurance believes in doing a comprehensive analysis of the company, taking into account both tangible and intangible risks. We do this to assist organizations in better understanding their own risks and risk management. We think that organizations with superior management are better insurance risks.

“We offer businesses comprehensive cover based on multi-peril insurance, and we have expanded our offering to include cover for the business risks of today such as non-physical damage business interruption, cyber risks, reputational risks and social media liability,” he adds.

“Our insurance offering is underpinned by our shared-value model, which uses powerful incentives to encourage businesses to improve their risk management and driving behaviour,” Ossip explains. “This reduces the number of car accidents and claims to the insurer, resulting in insurance savings and improved economic growth and safer roads for all. These savings are then shared with the businesses to further incentivise good risk management.”

What insurance do small businesses need to survive? - 2022


By Kalcho Post

Website Administrator

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