Business Insurance - 3 simple steps to build strength and resilience into your SME

Business Insurance - 3 simple steps to build strength and resilience into your SME

09 June 2015

When running a business, large or small, we’ve identified 3 easy steps to feeling secure in the knowledge that you have the right business insurance in place.

1. Take the time to understand your business risk

No matter what size your business, you have risk. Some of these risks mean that you’d go out of business if they happened. Some are not quite so concerning. And let’s face it; you have to have some level of risk to be in business in the first place.

So your first job is to write down all your risks and then decide what actions you can take with all your risks.

  • Can you eliminate a risk? Can you introduce a different way of doing business so that you eliminate a risk all together? For example could you buy locally and avoid all exchange rate risk?
  • Can you reduce a risk by doing something differently? For example introduce a better back up programme for your data and ensure the data is stored at a variety of secure locations.
  • Can you insure against a risk? If you know a risk is present, like the possibility of an employee hurting themselves at work, have you sought the right insurance protection?

Austral have got a great risk assessment tool for SME business – you can download your free copy here.

2.  Find the right insurance

Ok. So now you know your risks. It’s time to speak with a professional about how you can protect yourself and your business against these risks.

 An insurance broker will help you inure for all risks that are insurable. They will more than likely also recommend some insurance for associated that risks that you may not have even considered.

 Having an insurance broker who can assess all the insurance options available to you can save you time, money and most importantly, ensure that you are covered properly – and that there are no surprises when things go wrong.

Time and time again, we hear of businesses who believe they have adequate insurance cover in place only to find out they haven’t and have to pay, or worse still, are liable and have to defend their reputation. An insurance broker is invaluable in making sure that you are covered no matter what.

3. Take the time to review and update your insurance regularly

Finally, your business is not static. Things change. And your risks will change too.

Make sure you make a date in your diary every year to review your risks and take any necessary actions to eliminate, reduce or insurance against the risks in your business. And set your date with your insurance broker to review and update your insurances. This is all part of good business practice.

Remember you’re in the driving seat. The more you know, the better placed your business will be. 

Austral Risk Services are risk advisors and insurance brokers for business. We help build strength and resilience into businesses of all sizes. You can contact us here about your risk management or business insurance.