Insurance is explained as an exchange for compensation between a business owner and an insurance company for a certain amount in a particular period of time. Insuring your business is simply preventing the business from running out of loss in case of any unforeseen event such as fire, theft or natural calamities. Once a business is insured,the insuring agent will refund the occurring loss.
As a small business owner, you have worked hard to build your business, attract clients, and become a solid part of your community’s economic growth. You need to protect your standing, your business, and any employees you may have.
Benefits of insuring your business
Security against unforeseen events such as theft and fire
In this, one can insure the business so as not to suffer after the effects of theft and fire. Meaning one gets a full compensation after the occurrence of such events
Easy ways to recover loss incase of misfortune
In this, one can insure a business so as not be affected when losses occurs. When insured, some of the losses will be paid back hence keeping your business available
Provides easy access to services without offering physical money at that time e.g. medical insurance
This is for other forms of insurance such as medical, in this one gets full access to medical services without having to pay a dime. Here MSMEs can be sure with the safety of their family members health when sick
Allows smooth growth of business without being often affected by challenges
In this the business can easily prosper without worrying of unforeseen challenges as in case of their occurrence they are all covered.
Things to consider when in need of insuring your business
1. Type of insurance one needs to enroll into
There are several types of insurance e.g. fire, burglary and motor insurance. One needs to read carefully the benefits of each specific scheme before they are enrolled into. Insurance companies have details of each scheme.
2. The authenticity of the insurance company
In many place there are many fake insurance agents. So before one pays for service, they should be aware of the authenticity of the company
To prove authenticity one can ask for proof of the following information
Certified documents from TRA and BRELA
Actual offices and premises of the company
Payments receipts (This should not be the only evidence, as they can sometimes be forged)
A country’s company listing or business directory to see if the company is recognized
3. Comparison between different companies to establish which one offers many services at affordable price
Due to presence of several companies offering insurance services to MSMEs, make sure that you check for price comparison among several companies before enrolling this will help you secure the best offer.
4. Make sure you have the necessary documents
Necessary documents mainly depend on the nature of an item/ scheme enrolled to. E.g.
Registration and licensing documents
Original/certified documents that shows ownership and value of the property/business
Note: Documents required may vary depending on companies
5. Insure the most important items of the business
Thou not a good idea to leave some items, but in most case one should start by insuring the most important items of the business. For example for cooking business, the first item to be insured should be the stove.
6. Insure on the most likely calamity to occur
Although it is not easy to predict an occurrence of a calamity, but depending on the nature of business and the area where the business is placed there are potential calamities that one needs to adhere to. For example in a hotel business: Fire, theft and property are the best schemes to enroll to while for Transportation best schemes can include Property, Accidents and theft.
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