What Basic Insurance Do I Need for My Small Business?

Problems such as a fire or robbery can endanger the continuity of the SME. In order for this not to happen, the company must study its sector and its risks, and contract the policy that best suits its activity.

How can your company recover from a possible fire? Or if they rob you? What are the options to cover the needs of an expatriate worker in the destination country? These are some of the situations that must be considered so that the business isn’t in danger before the risks that, like any company, may suffer. In fact, seven out of ten companies don’t resume their activity after a disaster.

The Most Basic

Many times, the closure of a company is because the policy hasn’t adjusted well to your needs. The most basic thing is that the SME has products designed for their size. Thus, there is a series of compulsory insurance in practically all businesses.

The Needs of Employees Working Abroad Must Be Met

-If you have employees you must have the accident that is included in the agreement. The civil liability is essential in many companies, as it is responsible for paying potential claims through civil. It is also common automotive coverage that is essential for those firms that have some type of vehicle to develop their activity, whether cars or goods transport.

-It is advisable to have multi-risk insurance to respond to damages that may be suffered after fires, explosions, atmospheric phenomena or theft. It also usually includes other hedges, such as losses that occur as a result of the suspension of the activity for a period of time due to an unforeseen event.

-The cost will vary according to various aspects, such as the nature of the loss, the activity of the company, its location and the sum of the capital to be covered.

Specific Coverages

As the SME grows, it must take on more risks. So that this doesn’t affect their development, it is recommended that you study how to cover the needs of your employees to how to deal with the heavy bureaucracy and administration.

– Benefits for employees: In small and medium companies, where it is very complicated to increase salaries, firms can choose to extend social benefits to workers as a way to retain and attract talent. For this, you can count on coverages that offer your staff certain products such as those related to health or travel assistance.

One of the challenges that SMEs face is to manage the absences of their employees. Therefore, it may be advisable to have care-oriented solutions and offer them to the staff, such as telephone lines for medical advice or second professional opinion in case of serious illness.

More and more SMEs choose to internationalize and often need their employees to move to different countries. In these cases, it is advisable to have individual assistance and for small groups to deal with incidents in travel or possible accidents. The cost will vary according to the period of stay abroad, the number of people transferred and the country of destination.

– Product contamination: Every food company must be aware that goods that are in poor condition affect both the health of the consumer and the reputation of the firm. This type of insurance is aimed at manufacturers, sellers, and distributors. It covers aspects such as the expenses of the withdrawal of the food or drink or its rehabilitation, assuming a percentage of the costs of sales and marketing, according to the limit of the policy.

– Clinical trials: The companies dedicated to the research sector are obliged to certify that in the event of a loss, the affected participants will receive compensation. Thus, this policy includes ongoing advice, guidance on the existing regulation and the requirements that are required in the country in which the trial is planned.

– Value-added services: This assistance provides advice in case of various incidents that endanger the business. They are useful in situations, for example, when a dry cleaner suffers a robbery and has its shop window broken and must decide whether to close for a time until the repair or have a security team for 24 hours.

The Insurance Company that Must Be Most Suitable

When hiring insurance, the SME must assess a number of aspects to know which is the most appropriate. You must carry out strategies to negotiate the price, know the products that are in the market, compare them and study the different possibilities.

In the first place, it is advisable to study the possibility of having more than one insurer for the different policies. If you’re going to want to contract different types of products, for example, a theft or credit insurance (which cover the payment of the loans due to the insolvency of the debtor) it is usually more practical to have these coverages with a single company.

To save, an option that can be carried out is to use Internet insurance comparators. They analyze what the coverages of the different companies offer. This makes it easier to see which one provides the best product and the cheapest price. But don’t fall into the error thinking that the most expensive is the best since many times have a higher price to include additional services that make the product more expensive.

The ‘Fine Print’ of Contracts

Before signing the contract for a policy, you don’t just have to check the price and the main objects that are covered, it is also important to pay attention to the legal conditions and the own conditions of the product.

-The exact coverages and their limitations must be in writing. They need to be explicitly detailed to know what is included. For example, in some, it is specified that there is no assistance in certain valuable goods, such as art objects. Sometimes, solutions aren’t offered before the collapse, collapse or cracking of buildings, unless they occur as a result of a cause covered by the policy.

-It is essential to read the obligations in case of loss and study what would happen if the risk is aggravated. When communicating the situation, the insurer can make modifications to the policy that the user must approve. If he does not give his opinion on that change within the agreed period, the entity may terminate the contract.

-We must contemplate the duration and conditions of renewal. Usually, they’re annual and in the end, it is extended for the same time. It is necessary to pay attention to how the renewal should be requested. It is usually done with a written notification, two months before the end of the contract.