In today's dynamic and unpredictable business landscape, companies face a myriad of challenges that can disrupt their operations and threaten their viability. From economic downturns and market uncertainties to rising crime rates and industry changes, businesses must navigate through various obstacles to ensure their survival and growth. Short-term insurance advisers play a crucial role in helping businesses protect themselves against potential risks and uncertainties and
According to Karen Rimmer, Head of Distribution at PSG Insure; by providing expert guidance and tailored insurance solutions, advisers can help business owners to mitigate potential financial losses by safeguarding their assets and serving as a vital lifeline when things go wrong.
Better managing economic hardship and uncertainty
Among the most common disruptions that businesses face are economic hardship and uncertainty. Economic downturns, fluctuations in market conditions, and unforeseen events such as natural disasters or pandemics can have a significant impact on businesses of all sizes. During such challenging times, advisers can help businesses assess their risks, identify potential vulnerabilities, and recommend appropriate insurance coverage to protect their assets and operations.
“Insurance helps to provide compensation for financial losses incurred due to covered events. For example, business interruption insurance can help companies cover lost revenue and incurred expenses when their operations are disrupted due to external factors beyond their control. An example might be if supply is interrupted due to weather conditions, affecting the output of a business. By working closely with an adviser, a comprehensive risk management strategy can be put into place to prevent unforeseen events having a negative impact on the profitability of a business,” says Rimmer.
Dealing with crime
In addition to economic challenges, businesses also face threats from rising crime rates. Criminal activities such as theft, vandalism, fraud, and cyberattacks can pose significant risks to businesses, leading to financial losses, reputational damage, legal obligations, and operational disruptions.
Short-term insurance advisers play a critical role in helping businesses manage risks related to crime by recommending suitable insurance products such as property insurance and cyber insurance. Rimmer explains: “These policies can provide businesses with financial protection against losses resulting from criminal activities, data breaches, and other risks. By assessing the specific needs and vulnerabilities of each business, advisers can tailor insurance solutions to address the unique challenges businesses face and ensure comprehensive cover for potential threats. This can extend to dealing with internal criminal activities, which can arise in a business of any size.”
Adapting to change
The insurance industry, globally and in South Africa, has experienced many challenges influencing the overall profitability of insurers. They have reacted to this by implementing extensive changes to their policy wording, risk requirements, and costs to clients. Rimmer asserts that advisers have an important role to play in communicating these changes to clients to ensure that the impact is managed effectively.
Building trust and reliability
Advisers act as trusted partners to business owners, offering expert advice and solutions that are bespoke to the needs of a business. They also offer impartial advice to keep business operations going. With a realistic outlook on the various markets that businesses may operate in, advisers are perfectly placed to weigh up the relevant risks. An important component of an effective relationship is also ensuring that you review your cover at least once a year.
Advisers are only able to offer reliable assistance if they are kept in the loop regarding new business activities or changes, such as additional employees joining a business, a different address where the business is based, or a new product on offer. “By leveraging their expertise and industry knowledge, advisers help business owners to make informed decisions about ongoing and evolving risk management and insurance cover, enabling them to focus on running and expanding their businesses with confidence and peace of mind,” says Rimmer.
By transferring risks to insurance companies through premiums, businesses gain access to a financial safety net, which can become essential when the unexpected happens. Additional costs are seldom welcome for businesses, making short-term insurance all the more valuable.
In the event of a claim, advisers also assist businesses in navigating the claims process, advocating on their behalf, and ensuring timely and fair settlements to minimise disruptions and financial losses. This can drastically reduce the time spent on finalising claims, which can be a lengthy process, and as every business owner knows, saving time is always useful.
As Rimmer concludes: “Working closely with a trusted adviser can truly make a big difference to the bottom line for business owners overall.”
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