Small businesses face a lot of financial and operational challenges, making it so important to have the right insurance to protect them against the risks that could result in major financial losses. The kind of loss that they may not be able to recover from. What insurance does for your business is allow you to focus on your growth strategy, knowing that you have the right protection.
This is the time to make sure that your small business has insurance to help you ensure that you can protect your money-maker.
Here’s what we’re focusing on in this article:
- How technology has changed business insurance needs.
- Covering loss of profit or revenue.
- Legal liability.
- Whether you need a broker.
How technology has changed business insurance needs
The new tools available to businesses are what lighter fluid is to a braai. It just lights things up. Just think about the client relationship management tools available now, which allow you to store client info, identify sales opportunities, record service issues, and manage marketing campaigns, all in 1 central location.
For all the good it does for us, though, technology has opened businesses up to new risks, like cyber-attacks. Your small business can lose money if damage to your computers prevent you from operating as usual.
Covering loss of profit or revenue
Business interruptions (and boy do we know everything about business interruptions after the year we’ve had thanks to COVID) can be devastating. This is 1 of the most common reasons why so many businesses have shut down, particularly this year.
Thankfully, business interruptions are covered and can help you cope with your operating expenses while you get back on your feet after something happens to stop your business from continuing on. It could literally be something as simple as a power surge that crashes your computers, putting a stop to business for a few days, and resulting in huge losses. In fact, there’s an insurance policy called ‘advanced loss of profit’ which covers you if your anticipated gross profit is negatively affected by insured incidents.
Legal liabilities
The reality is that businesses face many threats every day, especially now that we use technology to do so much more. A specific risk is liability, because businesses can be held liable for when things go wrong. In this case, cover for legal liability is needed to compensate third parties for losses suffered owing to actions or negligence of the business.
Do you need a broker
The short answer is yes, you do need a broker. The main reason is that because every business has unique needs, it’s advisable for you to consult a business insurance broker on the type of cover that’s actually right for your business. Not just a 1-size-fits-all policy.
In fact, this royal insurer will only work through your broker because they believe that it’ll protect your best interests and build a stronger, more open relationship that fosters a successful collaboration. And if you don’t have a broker, they’ll hook you up with the best broker in town. If you’re interested in getting down to business, then click here for a commitment-free quote or call 0860 21 00 00.
Posted in partnership with King Price Insurance
