So, you’ve developed the idea, the marketing plan, identified your customer base and raised the capital that will enable you to realize your dream….. running your own business.
One very important aspect of risk management is insurance. Protecting one’s assets from unforeseen events such as fire, theft, storms and other losses, is one of the most important considerations any business owners faces.
After 26 years in the insurance business, I still get those calls from anxious clients who left their risk management strategies to the last minute.
Each business enterprise has its own unique set of risk exposures depending on their scope of activities, products manufactured, imported and sold to customers, geographic location and the list goes on.
Just how an organization protects itself from unforeseen events is a specialized area and an insurance broker is there to assist you identify your risk exposures and minimize loss, through a tailored insurance program.
In this article, I would like to briefly explain a number of products available to you, the business owner.
Generally provides a tailored package of individual covers including, fire, business interruption, burglary and theft, loss of money, glass breakage, machinery breakdown, accidental damage and general / products liability.
A brief explanation is provided and should be used as a guide only. For complete details of the terms and conditions of this type of insurance contract, refer to the various policy wording available upon request.
Fire and Extraneous Perils
Covers you against loss to your assets resulting from fire, storm, lightning, riots and civil commotion where offered, flood. Many insurers provide benefits in addition to the above.
Losses resulting from the above examples can have a significant impact upon your capacity to trade. This may result in a reduction of revenue derived from selling your goods and or services. A large number of businesses do not have adequate protection in this area.
Burglary and theft
Break, enter and theft is a serious cause of many losses. With these illegal activities on the increase, this cover is most important for the discerning business proprietor.
Provides cover for loss of money and other negotiable instruments against loss from theft or holdup for example. Cover money in transit, at private residence, on the business premises during business hours, outside business hours, in safe or strong room.
Damage to fixed plate glass both internal and external
General and Products Liability
Provides cover against damage to third party property or damage and or injury to third party persons, resulting from the insured’s negligence. Damage or injury resulting from the use of products may also be covered.
This provides a generalized overview of business insurance. It is important that you seek the professional advice from a qualified insurance broker who can identify your risk exposures and then tailor a product that suits your requirements.
Koert Slik is the National Development Manager of NAS Insurance Brokers.