Why you Should Insure Your Business
Should you insure your business? You’ve invested so much time, effort, and money into your business, so you should consider investing in suitable protection to cover your business interests. Sheron Gilzean, General Manager of JMMB Insurance Brokers, joined us on #MoneyMovesJa to explain why.
Gilzean stated that SMEs often need to apply for loans to expand the business and for this to be done, the bank requires them to ensure their assets. Not only is insurance a requirement for bank obligations, but also to cover liability to satisfy some small contracts. Sometimes small enterprises have contacts with larger companies that want to ensure that they have public liability and employer’s liability.
Even if you are not seeking to expand your business, or borrow a loan, you have invested so much money and time into your business so, at the end of the day, you want to ensure that it is sustainable even when unexpected incidents occur. Having insurance transfers risk/exposure from the business to the insurance company. In the case of any incident, the business owner would not have to replace equipment or compensate staff using money from their own pockets.
What does insurance cover? Is it just assets?
According to Gilzean, insurance can cover much more. She states that JMMB, for example, can provide up to eight different policies, which can be bought individually or packaged.
The Eight Policies
- Material Damage
This covers the cost of repairs and replacement in the case of damage to the business property or material, which consists either of your stock or your equipment.
- Business Interruption
Covers financial losses if you have a disaster and you’re not able to start back your business and you lose profit
3.Crime
Which reduces the company’s vulnerability to direct losses stemming from theft and certain types of fraud
- Employers Liability
Protects employers from financial loss if a worker has a job-related injury or illness not covered by workers’ compensation.
- Public and Product Liability
Public liability insurance covers you against any claims made against your business – for example, if you were held legally liable for personal injury, or for damage done to the property.
- Personal Accident
Provides financial protection against uncertainties such as accidental bodily injuries, and partial/total disabilities, permanent as well as temporary disabilities resulting from an accident.
- Goods and Equipment
Covers unexpected to incidental damage or loss of goods and equipment
8.Goods in Transit
Covers unexpected to incidental damage or loss of goods in transit
What do these policies cost?
Gilzean stated that JMMB offers Individual policies that range from a minimum of J$30,000 to J$50,000, annually. She added, however, that JMMB offers a combined package of all eight policies that ranges from J$65000 to J$250000 annually.
Gilzean stated that the level of insurance required by each business owner varies based on their assets and what they hope to do with them. She emphasized that having business insurance can protect the business, its owner, the employees, and its publicity.
Having a business can be both exciting and daunting. Even if you start small, the risks may feel greater when it’s your own time and money on the line. Insurance will help to protect your business from some of those risks
