The problem with some business owners, small and big, is that they tend to overlook risks. These uncertainties can come at a time you will never know. Sometimes, not just fires or bankruptcy can affect a business establishment. Natural phenomena like heavy storms, flooding, and earthquakes can also be enough to dilapidate physical stores. Especially in the Philippines where it is located in the ring of fire and also gets more than 20 typhoons a year. Unfortunately, if business is good, getting any kind of property insurance in the Philippines seems to be out of the equation. Also, beginners may sometimes choose to use the money for securing investment than purchasing insurance. After all, if nothing bad happens, no insurance is needed right?
However, that will never be the case when entering the world of business. Just like the unpredictable stream of customers, there are unprecedented events. An entrepreneur should be prepared for both. And there are only two possible ways you can be ready for it: (1) to get an enormous amount of money from profit to cover it all, and the more economical, (2) to get your business insured.
There are many types of business insurances; the payments can be with low-cost premiums and some with costly fees. There are types of premiums that can cover even employees. However, amateur businessmen can’t immediately buy all insurance to get maximum protection. Sometimes a businessman can only do so much. Normally, protecting the establishment or the physical store should be the first move of a smart businessman. Here are some essential business insurances that can safeguard your shop/store:
1. Property Insurance
If your business happens to be in an office or a building that you own, a property insurance in the Philippines has the policy to protect your establishment. Also, it gives protection even to your equipment and inventory. There are already given rights and privileges in owning a property. In order to maximize this, a property insurance is the way to go.
2. Business Owners Policy (BOP)
Small businesses like retail or hardware store may purchase BOP as it can cover property damages caused by theft, storms, fire, and other unforeseen circumstances. It can also cover employee injury (injuries inflicted during business hours), business interruption, and in some cases, employee compensation.
3. General Liability Insurance
This insurance is ideal for starters. It covers accidents, personal injury, damage to property, and other unprecedented events. It can also provide the policyholder with medical and lawyer fees. Typically, General Liability Insurance is fused with additional insurance to widen the coverage.
4. Business Interruption Cover
This is also known as Business Income Insurance. In the event of unexpected disasters, evacuation is a must. This means that operations are suspended. The cost of the transition to a different place for the business to continue or to rebuild an establishment is covered. Plus, it can cover income loss during the closure caused by disasters.
5. Loss of Profit following Machinery Breakdown
As much as businessmen want their building insured and protected, the business will be rendered obsolete if the equipment does not work properly. This insurance covers the cost of damage caused by the insured machinery should it affect the business profit. This is important because the business is prepared even if the machines that help it is not functional anymore.
The business insurances explained above are only five of the many insurances an entrepreneur can purchase. If you want your business stable and protected from unexpected events, it is recommended to check for more personal insurance, or you can also combine coverages. It takes careful attention to understand the ins and outs of being a policyholder. Thus, it’s also important to start with the basics.
If you are an amateur entrepreneur, it is normal to focus on investing for your goods and advertisements. However, if you want a secured business, there is nothing wrong in investing on an insurance. Some people will think that it is counterproductive, but a smart businessman with a clear perception of risks will always be one step ahead.