How to use insurance as a business tool

30 September 2019

No business, is just a “business”. Every business began as a dream, one that was birthed into existence through determination, laboriousness and sacrifice. The bliss of owning a business also comes with inherent risks: An employee could get injured on the job; an unfortunate event could destroy property; a customer or a client could sue the business. 

It is important to protect your assets from all those potential threats and unforeseen disasters. One of the best ways to do that is to make sure your business is adequately insured.

Buying insurance can be confusing, hence a lot of business owners make the mistake of not insuring correctly. Common insurance types include:
Self Insurance: Self-insuring means that you save up enough money to cover the related and possible expenses that may occur in the event that you suffer an unexpected loss, injury, or illness.This is a risky option, as your business needs to generate enough income to cover all risks.

Informal insurance:When a wealthy family member, friend or investor pledges to take care of the business and take on any losses. This is a rare cover, as most business owners don't have the financial backing required to cover all business risks.
Formal Insurance: The business owner hands over the business risks to an insurer and pays a premium monthly. The insurer then pools similar risks together. This option is affordable and easy to implement.

Insurance coverage is far from one size fits all.

Businesses that are underinsured or without broad, proper and adequate coverage are taking needless risks, which could eventuate in serious financial problems, including bankruptcy. In a crisis, a business without insurance or which is underinsured can be  destroyed.

Avoid making the same mistake. Do not let your dream turn into a nightmare. Talk to your broker, ask the right questions.

Are the risks identified correctly?
Are the risks understood correctly?
Are the risks explained correctly?
Are the risks covered correctly?

With Momentum Namibia you get the right cover for your business.

Owning a business is a daunting endeavor. There are too many risky unknowns. That is why Momentum wants to secure your business. Your business is your dream, protect your dream at all cost.Talk to your broker, let Momentum safeguard your dream.