Armoring for SMEs; Protect your company’s assets.
- September 15, 2022
- Posted by: master
- Categories: Blog, News
When we start a business, we think about all the resources that allow us to keep the operation of our business afloat and when we begin to see economic growth, we invest in more resources, without taking into account prevention. It is common for SMEs to forget about the risks that surround them in their motivation to grow economically, but the greater the growth, the more responsibilities and risks we assume.
Our investment in the business requires time, work and effort, which makes it even more important to have insurance to prevent all those resources from escaping and damaging the business activity, or worse, stopping it. Here is a list of some insurance policies that can help SMEs to operate and prevent financial risks:
Business package.
Furniture, equipment, raw materials, machinery, product in process, how much have you invested in them? Everything can be lost due to catastrophic events, fire or theft. Damage insurance can protect you in the event that your equipment or infrastructure suffers a contingency and that claims and incidents do not stop your operation. This insurance also gives you support in case of damage to third parties.
Data protection.
All companies handle a variety of data; customers, employees, sales data, bank accounts, payment histories, etc. This kind of information in the wrong hands can bring serious legal and reputational problems to your business. Data protection policies provide you with support to cover the expenses incurred by any eventuality derived from a hacking or theft of sensitive information. In addition, to help you take preventive measures so that this does not happen or happen again.
Credit insurance.
One of the most recent products on the market and one of the least common. This is a policy that protects your accounts receivable portfolio, so that you can secure income. How does it work? If your SME has an annual turnover of 10 million pesos, you are a candidate for this insurance, you have already passed the first filter. Now, by contracting the policy, your company will be protected against the non-payment of a client who has exceeded the assigned credit period and who also refuses to pay you for various reasons, such as political changes, bankruptcy or disappearance. The policy has a collection support and helps you with the credit investigation of your new clients.
Fraud insurance.
SMEs are prone to internal fraud due to lack of controls, carelessness and other reasons. These policies provide you with the necessary support to cover legal expenses derived from: signature forgery, check alteration, accounting frauds and an endless number of fraudulent situations.
Transportation insurance.
If your commercial activity involves moving merchandise or cargo to other parts of the country or countries, and if this merchandise represents your main source of income, it is best to insure it so that in case of any contingency during transportation you do not have a total loss of that sale. Or in other cases, to make you pay for merchandise that is not owned by your company. Cargo insurance has different types of coverage according to the means of transportation and destination.
Flotillas.
If you use cars, motorcycles, trucks or any vehicle for your commercial activity, you should insure them. Not only because the law requires you to have at least a third party liability insurance. Vehicles are part of the company’s assets and having a total loss of them is a serious fault to your finances. Insure them with one company and look for a fleet plan, as it has volume discounts.
Having a vision of your solvency as a company will help you make an analysis of the type of insurance that best suits your business, analyzing the options you have in policies VS the risks in your operation that can make you lose more money is of utmost importance when contracting a policy. This article provides you with some insurance options that have to do directly with our patrimony and how to prevent the risks that impact it. Later on, we will give you recommendations when it comes to making an analysis to choose the right policy so that it does not become a hormone expense.
Author: Sabrina Diaz, Grupo Nuño.
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