Insurance can be incredibly complicated to fully understand. When insuring businesses or complex risks, it pays to have access to an insurance expert who can spend time with you, review your unique situation, and provide advice and guidance on the type, extent and value of insurance required to protect your assets.
This is a confronting question for most businesses. How much would you need to turnover in sales to replace lost profit? If you are working on a profit margin of 10%, for every $100,000 of profit lost to the business you will need to turn over another $1,000,000 in sales to replace the lost income. Or put simply you will do 10 times the amount of work to cover the lost money.
How would your business cope if one or two of your major customers fell over? Trade Credit Insurance protects your cash-flow by covering your losses if a debtor defaults on payment or becomes insolvent, giving you the peace of mind to focus on running your business. The security it provides may also boost your borrowing capacity with your bank.
In today’s ever-demanding business environment, the respective business entity, it’s directors and officers are under increasing scrutiny, and it has become common place for allegations of wrongful acts to be made.
The directors and officers in your company are in a position of significant responsibility. Whichever sector your company operates in, the directors and officers, including managers and supervisors can face allegations and claims for which they may be held personally liable. Even in a company with a limited liability status, personal liability is unlimited.
Any allegations of wrongdoing need to be investigated and defended accordingly. The legal defence costs to defend allegations of wrongful acts, (aside from any actual penalty if found guilty), can be financially crippling for businesses and individuals, even if the case doesn’t reach court. This means directors and officers personal finances are exposed and at risk.
Every business faces risks, whether you’re just starting out or if you have been running for a number of years. Those that practice good risk management create a positive risk culture, and reduce the likelihood of a liability event occurring. You’ll also increase the confidence within your business by demonstrating that risks are proactively identified, assessed and managed. It will seem less like a ‘chore’ and more a part of everyday business. Businesses which incorporate risk management into their everyday business are more likely to be proactive than reactive. Why wait to learn what is a risk to your business when you can avoid it in the first place?
An Insurance Broker IS a specialist who not only has the expertise to place the right cover, at the right terms for your business, but importantly like this video from Vero quite rightly depicts, has the knowledge and capacity to handle your claims professionally, efficiently and always acting in your best interests.
The following is from an excellent piece by a quality insurer – QBE.
In business, continuity is the baseline of success. That’s because in almost all cases, continuous revenue and cash flow without interruption is the lifeblood of SMEs.
Ensuring a business has the correct insurance to continue to trade irrespective of internal and external factors, is absolutely key to that business’s success, regardless of size.
LMI Group are leaders in Claim Preparation/Representation, hence witness first hand the impact of loss on people and their businesses.
They have produced a very funny series of videos, albeit based on very serious business insurance issues. Business Interruption (BI) is largely an ‘Income Protection’ form of cover for businesses who have suffered an insurable incident which impacts on the performance/productivity, revenue and profitability generating abilities of said business for an ongoing period – be it weeks, months or years in some cases.
- Building & Construction Insurance
- Business Pack Insurance
- Management Liability Insurance
- Medical Indemnity Insurance
- Professional Indemnity Insurance
- Professional Liability Insurance
- Public & Product Liability
- Strata Insurance
- Trade Credit Insurance
- Trades Insurance
- Tradies Insurance
- Trucking & Transport Insurance
- Workers Compensation