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Therefore , entrepreneurs need business insurance as it acts as a safety net in case of incidents that result in the loss of income , such as a cyber-attack , property damage and various liability claims .
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Given the complexity of the business environment , an obvious question that comes to mind is whether the insurance industry is equipped sufficiently to assess business risks and develop appropriate products .
This operating business environment requires insurers to develop insurance products and services that show that they understand the entrepreneur ’ s business needs . In other words , the insurance product offering must be more nuanced and not a “ one-size-fits-all ” approach as entrepreneurs navigate an uncertain business environment .
Noting the tiny margin between success and failure , entrepreneurs want to ensure that the insurer or their intermediary guides how to manage risks better . This includes the impact of the business ’ s activities on premiums . To do this , the insurer and their intermediaries must ensure they know the business and understand the business risks associated with the industry sector it operates .
These observations are because at PPS , our focus is uniquely on the needs of professionals and sole enterprises that provide professional services such as healthcare , legal and accounting services . For example , the investment in technology and ongoing maintenance of the latest equipment is high in the dental and medical professions . Should these be damaged , they could have a crippling impact on the professional ’ s practice if there is no insurance cover in place or funds immediately available to replace such equipment .
However , this is a two-way street . It is equally essential for entrepreneurs to understand the different business insurance products in the market . Also , while it is appreciated that entrepreneurs are focused on taking care of the bottom line , the reality is that they need to prioritise obtaining insurance cover as well .
IBM in 2021 shows that companies that can earn their customer ’ s loyalty have elevated levels of engagement , not just at the time of policy renewal , premium increase or claim .
This is critical because , as insurers that participated in the above research confirmed , a worrying trust deficit between clients and insurance companies needs to be narrowed .
* Disclaimer : The information provided herein does not constitute financial advice .
Wilma van der Walt
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