business-insurance

In an uncertain business environment, it makes sense to have adequate insurance cover in place. Take Egypt, for example, where peace of mind is in short supply. Difficulties abound as the country struggles towards an all-inclusive democratic end-game. It’s an economic minefield at the moment, too, with currency problems, an increasing budget deficit and the prospect of unpopular austerity measures in the offing. Add huge levels of unemployment to the mix, especially among young workers, and you’ve a recipe for continued social, political and economic unrest.

So anyone looking to start some kind of entrepreneurial venture in the country would do well to think long and hard about the levels of business insurance. required. It makes real sense given the uncertainty surrounding Egypt’s future. Look on it all as part and parcel of contingency planning, which means hoping for the best but always prepared for the worst.

So what would constitute a worst case scenario, for any business, though not necessarily one based in Egypt? Loss of vital members of staff, perhaps?The business grinding to a halt because of some catastrophic event such as fire, flood, earthquake? What about damage caused by one of your workers to some third party’s property? Any one of these scenarios could result in serious financial loss. Some could even have a devastating impact on the viability of the business both in the short and long term.

So it’s wise to guard against such possibilities, no matter how unpalatable thinking about them may be. The best way to do so is by having an adequate commercial insurance package in place, and naturally, it’ll cost. In the corporate world, you get what you pay for. Cut corners and they’ll bite you back, just when you least expect them to. So what sorts of of insurance cover should you have in place?

Assets Insurance

Should be as comprehensive as possible, covering not only bricks and mortar, but equipment, too. It’s the sort of insurance cover most business owners immediately think of as soon as the word insurance is mentioned. But make sure it covers you against business interruption or stoppage caused by all of the usual suspects – fire, flood, earthquake, storms – and the not so usual. Damage caused to company vehicles by other vehicles, or even animals, falls into the latter category. So does burglary, and water damage caused by bursting pipes or the sprinkler system being accidentally triggered. There’s a lot to think about so expert advice is a necessity.

Liabilities Insurance

What happens to the business if you should die? Is your family protected? Will they be able to take over and run the business? With liabilities insurance in place, the beneficiaries – your family – will be able to do just that, or settle any debts which may have been incurred. Make sure you double check the fine print in terms of the minimum and maximum age of applicants.

Cargo Insurance

Vital if your business involves the import or export of physical goods. The policy should cover risks such as piracy and other types of loss, whether on land or on the high seas anywhere in the world. Again, read the fine print to make sure any goods are covered from warehouse to warehouse.

This is a guest post.