As we have all seen, the pandemic has wreaked havoc on the economies of many countries, not to mention the global financial landscape. If you were running a business prior to the pandemic, you’ve likely been affected in various ways. The challenges you face will typically be unique to your company, and the solutions you come up with to tackle these problems will be just as unique. However, if there is one thing you should do, it is to reevaluate the insurers you work with.
Having the right insurance is vital to keep your business afloat should trouble happen. For that reason, we want to share some insurance tips to keep your business afloat during the pandemic:
Do not focus solely only on price in insurance.
The price might be a big factor when looking for insurance. However, do not mistake it as the only important factor. A cheap deal is not the same as an affordable deal. After all, looking for a fair price does not always mean the cheapest price. The saying “you get what you pay for” applies well here, so you must purchase insurance that covers your needs that is still affordable.
Insurance alone is not a good risk management strategy.
Once you obtain insurance, you might sit back and relax, thinking that your risk-related concerns have been addressed. Unfortunately, insurance alone is a bad strategy, and it is not a substitute for a good risk management program.
An effective risk management program is all about identifying loss exposures and managing those exposures through different tactics. Such strategies may include various policies, procedures, and practices, and risk management. Insurance should definitely be part of the strategy, but you should not rely on it alone to satisfy all your risk-management needs.
Share your new risk management program carefully with insurers.
Due to the ongoing pandemic, you may have reworked your risk management program to tackle new exposures to losses. This is something you should not keep to yourself, however. You must share it with your insurance broker.
When marketing yourself to the insurance provider or broker, your job is to explain how your risk management program has been changed to meet current needs. This is important because insurers factor in your scope and extent of risk management regarding underwriting decisions. If you share them clearly, it can allow you to get access to favorable conditions, terms, and more to benefit your company.
Conclusion
The pandemic has not been nice to anyone. It has caused plenty of trouble, and the challenges that have risen have caused many businesses to close down permanently. The fact that your business is still open today means that you are doing something right, but this does not mean your efforts should stop here.
You must ensure that your risk management program—which includes your insurance—can protect your company from the uncertainties of the future. While there is no way to eliminate such risks entirely, having the right systems in place will ensure consequences are limited to levels you can control.
Quesurance is an insurance agency serving Hopatcong and the surrounding New Jersey communities to protect people the same way we protect our family. If you are looking for commercial insurance to protect your business, reach out to us today!
