Insurance policies have become inevitable in today’s business world, whether we like it or not.
Owners or Operators of businesses, be it small, medium or large, are aware of the fact that having the appropriate insurance covers in place are no longer an option, they are a necessity.
Insurance provides protection to businesses in the event of a loss or damage to assets and covers their liability to other people resulting from their negligence or by any other parties working on their behalf.
The purpose of having a suitable insurance programme in place can be further emphasised by the following points:
Protection on Investments: When a company is set up, there can be borrowings made through banks to purchase Building, Plant, Machinery, Office Contents and Stocks. All these items need to be covered appropriately. Failing to have the necessary covers in place could only result in the owner being out of pocket in the event of a loss.
Continuity of Business: Insurance can be extended during the interruption period (over a specific number of months) following a loss under the Material Damage policy. This would certainly provide a sense of assurance to the owners and employees that their company would continue to operate despite a loss-taking place.
Stimulus to Business Enterprise: With the appropriate insurance covers in place, Directors of the company can focus on the growth of their business rather than worry about any unforeseen losses, which could potentially wipe out their entire reserves or even to the extent of total closure on the company.
Protection and Retention of Employees: It is without any doubt that employees play a vital role in the growth and success of an organisation particularly where the key employees are not replaceable. As such, it may be advantageous to provide Life and Medical insurance cover being part of an Employee Retention plan in addition to providing financial stability to their beneficiary in event of an employee’s death.
Assurance to Customers: Customers are keen to do business with organisations that looks after their assets and with those who have strict compliance procedure in place particularly if it involves substantial investments on their part.
They would normally view the size and financial stability of the organisation with who they do business. As such, having a suitable insurance programme in place would only prove that the organisation is serious about their business and are interested in building long-term business relationships with their customers.
As always, business grows in size and market share over years and as such the insurance requirements of an organisation also changes over time.
The business focus and direction of an organisation plays an important part in their future insurance need. An insurance policy purchased five years ago may not be suitable and aligned with their current business vision.
This is where a Professional Insurance Broker’s service comes in handy to review and provide the necessary advice.
They will act as your insurance arm sitting outside your office but acting on behalf of your organisation, soliciting competitive rates, writing up tailored made policy wordings and also assisting in the event claims.
Jeffery Nathan is Account Manager of Aon Insurance Brokers New Zealand, Sponsor of the ‘Best Young Entrepreneur of the Year’ category of the Indian Newslink Indian Business Awards 2015. Mr Nathan can be reached on (09) 3629535 or 027-7027875; Email: email@example.com