The devastating straw market fire last year disrupted the operation of a number of businesses located in the general vicinity of the Straw market in downtown Nassau. Businesses of every kind were affected, straw vendors, hair braiders, restaurateurs, accountants, lawyers, fund managers and retailers. Some of these businesses have resumed operation, while others are still not back in business after almost nine months later.
In the aftermath it was very surprising to hear of the number of entrepreneur (businesses), whether sole proprietors, partnership or corporation who just did not have the required insurance coverage. With this in mind, my first article is geared towards the insurance needs of small business owners.
You may ask why do I need Insurance? Well, few things in life are riskier than launching and running your own business. So you needn't compound that risk by neglecting your business insurance needs. Protecting your business from financial disaster will not only preserve all your hard work and long hours, but it will also help you sleep better.
With that said, under no circumstances should a business be uninsured for its property, equipment, and inventory, as well as against its potential liabilities Simply stated, you need Insurance to protect against the hazards or occurrences that may result in the loss of your investment and financial impairment to your business. Operating a business is difficult enough without having to be concerned about suffering significant financial loss, or worse, due to unforeseen events occurring.
Business insurance is a complex subject, as diverse as the business itself. Therefore, it is extremely important when shopping for insurance coverage to select an agent or broker experienced in business exposures and the commercial insurance market.
Contractual agreements that enable your business to operate, such as leases, merchandising, and finance contacts, may obligate you to insure beyond your immediate concern. As you shop for your insurance you will see special terms and concepts unique to business insurance. Ask your agent to explain anything you are not familiar with.
Your business has it own unique insurance needs and will not have exposures in every area, which is why your agent or broker must review your specific needs. However, there are certain coverageﾴs that are mandated by various legislations, for example, The National Insurance Act requires that all workers (self employed and employed) be covered and pay for Workersﾴ Compensation to The National Insurance Board, The Registrar of Insurance Companies requires Indemnity bonds for Insurance Brokerage and the Road Traffic Department requires Automobile insurance. Most other insurance is a business decision on your part. However, contracts you may enter into, such as leases, loans, etc., may contain, insurance requirements you have to comply with, and of which you should be aware.
Your business have nine broad areas of exposure that you must be aware, these are:
Property
Time Element
Crime
Automobile
Liability
Life Insurance
Disability Insurance
Health Insurance
Employee Insurance Benefits
Over the next few articles I will detail each showing its usefulness to you and your business and why it may be an important coverage for you to have.
In business "Time is Truly Money" because anytime your business is disrupted or you are not able to operate for any period of time, for whatever reason you loss money
Glenn S. Ferguson, FLMI, HIA, founded Comprehensive Insurance Agents & Brokers & Comprehensive Consulting to assists both large, multi-national corporations, as well as smaller family owned businesses with their benefit decision-making.
Glenn has been helping individuals and businesses in the Bahamas with their insurance needs for the last 18 years.
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He is a Fellow, Life Management Institute (FLMI); Associate of The Health Insurance Association of America (HIA) and a licensed insurance broker.
