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Business Insurance

Business Insurance


Why should a person put money into a business venture when there are so many risks and hazards which could result in the loss of the money. Yet if people did not invest in businesses then there would be fewer jobs, less goods, the need for even higher imports and a general reduction in wealth.

Buying insurance allows the entrepreneur to transfer at least some of the risks of being in business to an insurer. Insurance also acts as a stimulus for the activity of businesses which are already in existence. This is done through the release of funds for investment in the productive side of the business, which would otherwise require to be held in easy accessible reserves to cover any future loss.

Medium-sized and large firms could certainly create reserves for emergencies such as fires, thefts or serious injuries. However, this money would have to be accessible reasonably quickly and hence the rate of interest which the company could obtain would be much less than the normal rate. Quite apart from this there is the fact that money would not be available for investment in the business itself.

Because of the effects of the common pool, a business is able to purchase insurance at a premium, which is less than the fund that the company itself would have to retain; even assuming it could retain anything in the first place. The premium can be looked upon as a sudden loss to the business, but the firm is now free to continue its business and invest in the knowledge that certain risks are provided for. With this peace of mind, it can develop its business activities.

Starting a Business

As part of your business development plan you should devote a reasonable period of time to explore the types of insurance policies that you may need or are required by law to have. A proper structured insurance development plan can enable you to start and grow your business with the confidence that you will be covered every step of the way. As your business grows and develops you can add to your insurance portfolio those policies required to give you continued peace of mind.

We can work with you in developing your plan and provide you with a list of appropriate insurance polices and indicative quotes based upon your projections.

Established Business

It is important for any business to maintain good insurance cover. This can be vitual in winning new contracts as many tenders will often require their service providers to hold minimum levels of insurance. Part of our service to our customers is to review all their current insurance policies and to advise on the adequacy of the cover and to recommend any additional covers that may be required.