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Commercial insurance is often not a priority for Small and medium enterprise (SME) owners who often invest their resources in ensuring their businesses are a success.
PSG Insure head of distribution, Karen Rimmer says before business owners go for any type of insurance, they must get the type of coverage that addresses the business’ unique needs. Insurance is viewed as essential to safeguard the business.
“While insurance might not be the most exciting step in building a successful brand, it can be invaluable when the unexpected happens,” says Rimmer.
Rimmer says the risks of each business will be determined by the industry it operates within. But every business has risks that can happen due to unforeseen events, fraud, and cybercrime, amongst others.
When choosing an insurance cover, it is important to consider what is under the business’ roof and the value of those items. “It is important to ensure that your insurance cover increases at the same rate as the items you have insured increase on,” she adds.
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She advises business owners to have enough insurance protections to reduce potential risks and prevent substantial financial loss due. The insurance cover that one picks should be able to cover anything that can happen in the event of a fire, flood, or an incident like a burst geyser destroying property within the premises.
“Business contents must be covered to maintain operations if equipment is damaged or stolen, and all-risk items carried to and from work should also be insured, as these are essential tools for business operations,” says Rimmer.
“Commercial insurance provides peace of mind and, a robust strategy to protect the newest project and assets will assist in times of disaster,” adds Rimmer.
It is advisable for one to have insurance that can cover third-party claims.
“For instance, if unforeseen circumstances prevent the completion of an agreed-on service by the contract date, resulting in a client’s loss, liability insurance can manage the associated costs,” adds Rimmer.
Digital use for many businesses has opened a door for cybercriminals. Rimmer says it does not matter how well-established a business is, if there is data that can be stolen, there is a risk. It is therefore advisable to have insurance that can cover any data stored for the business.
“It is important to remember that life typically happens while making other plans, which is why consistent and up-to-date insurance is crucial.”
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