The right insurance policy could mean the difference between survival and going out of business in the event of an unforeseen event. Running a business involves many risks and today’s economic climate presents more challenges than ever before just to keep afloat. Yes, it is a tough time for business but also rewarding too so protecting it has never been more important.
There are many threats to any type of business like limited credit facilities, decline in demand, cost pressures etc. but where insurance really comes into play is providing protection against constant threats like fire or burglary. These are real risks to your business assets and should they occur could push you into major financial strain which could be catastrophic for your livelihood.
This is why a suitable insurance policy is invaluable. It may not be able to help you expand your business into new markets but plays a vital role by providing a financial safety net your business you could not afford to be without.
That said, there is much more to insurance than just financial security. Insurers help you to minimize risk because it is in both theirs, and your interest, to reduce the chance of anything adverse happening in the first place. Nobody wants to make a claim so by doing everything possible to avoid it, is by far the best policy.
Your insurer will help you identify the risks involved in your line of business, and advise you on measures to reduce them. Of course, not all risks can be controlled or eliminated, for instance nobody can control the weather but risks such fire, theft and water damage can be reduced. This is known as risk management and should be carried out by all businesses.
Risk management has many benefits and is looked upon favourably by insurance companies because a business that looks at ways to reduce the need for a claim tend to get a lower premium. If you are unsure, speak to your insurer who will help you conduct a risk assessment of your workplace and help you find ways to control or eliminate them. They will consider things like health and safety procedures for your staff.
It is a one off assessment but once complete you should review it regularly.