Why Small Businesses Need Insurance Protection?
It is a sad fact that many SMEs do struggle to make progress past the first year of trading
. Compounded by the bottleneck on borrowing, many SMEs also seem to forget to cover their business with adequate small business insurance in the event of a catastrophe.Two major issues exist: Obtaining Financing and Being Adequately Protected.
Many simply do not have the adequate level of small business protection.
For example, here is a list of reasons to be sure of securing your business with a strong protection policy:
1.Is your information secure? What if you breached the Data Protection Act?
2.Death or incapacitation of the business owner
3.Environmental Hazards such as fire, floods, and vandalism
4.Problems after a burglary, theft of data
5.Protection of debts
Financial losses due to these causing your capital gains to plummet with no protection can mean the end of the SME business in question. It has been recommended by EU sources that SMEs have a range of suppliers to choose from should calamities cause their current supplier to become bankrupt.
Being sustainable means being able to maintain strength in your market against such crippling issues. Investing in higher margin products against rising costs can mean the difference between success and failure too of course, though this focus should not be devoid of business protection.
How protected are you?
When it comes to financing, the European Commission has a number of initiatives that can help, and stated on their site:
'As part of the CIP, 1.1 billion euros has been earmarked to help SMEs grow and develop their businesses. These new financial instruments are managed by the European Investment Fund (EIF) in co-operation with financial intermediaries, including banks, credit guarantors and venture capital funds. It is expected that close to 475,000 SMEs will benefit from these financial instruments up to 2013.'
Source: Enterprise & Industry Online Magazine
What small business protection insurance do you use? Are your assets currently protected?
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