Thinking of dropping insurance cover?

Can you really afford not to have insurance cover? If something unforeseen happens and you are not covered - will your business be able to survive the event?

The future is unpredictable which is why insurance exists. Natural disasters, accidents, fraud and theft are common considerations which need to be prepared for in any event. Business insurance makes this possible. In the current economic climate, it may seem like a good idea to cut back on your insurance cover or cancel it to save on operational costs. According to experts, this is never a good idea.

Insurance is not just a ‘nice to have’ in running a successful business, it is a responsibility. Ensuring your business’ operations, equipment, products and employees are all adequately covered is good business practice. But cost pressures are a reality facing every business owner. Instead of dropping your insurance, rather employ ways to save on premium costs without compromising on adequate cover.
Here are some ways to reduce costs:

  • Source comparative quotes from different brokers specialising in business insurance
  • If you work in an industry, enquire about industry-specific insurance solutions instead of broad insurance cover.
  • Use a reputable business broker who can tailor insurance cover to your business’ specific needs.
  • Audit your current cover to assess whether you have cover you do not need. Adjust your cover for items or goods that have dropped in value, or for equipment or items you no longer have. There might be automatic extensions of a policy that are not related to your business.
  • Minimise your business risks by employing methods which will decrease your premium, such as improving your security measures, installing tracking devices in your fleet or installing surge protection to your electronic equipment.
  • Consider paying your premium annually instead of monthly, this usually has a discount attached.
  • Consider lowering your premium by increasing the excess values – but be sure you will be able to afford the excesses if every required.
Business insurance is invaluable, covering what you have worked hard for is priceless. Having to absorb the cost of repairs, replacements or liability claims can cripple a business, especially small enterprises.

MMS Consulting Services is available to you for input or advice, reach out to us at https://www.mmsgroup.co.za/contact/.



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