Far from being an expense, insurance is a powerful tool that helps you overcome when your company's assets are lost or damaged, or worse, if the business damages third parties.
6 min read
The opinions expressed by collaborators are personal.
Imagine that after spending many sleepless nights working on your business idea, saving for months or years and being under pressure and stress, you finally managed to open your business. But some time later, on a day like any other, all the equipment in your offices is stolen, the production plant catches fire, or the building collapses in an earthquake. How do you recover and start again?
The reality is that “no one is prepared to have a difficult time like these, and even if it happens to you more than once, it is always different,” says Mauro Soria, executive director of acting at HDI Seguros . Fortunately, there is a tool that protects you in the event that your company suffers material damage, theft of merchandise, machinery and even cash, claims or if the activities stop.
These are the insurances that assist the entrepreneur when he loses or damages any of the assets that are key in the operation of the company, and that according to Soria, can insure vehicles, computer equipment, electrical wiring, industrial machinery, cameras photographic, among others. There are even insurances that cover the damages caused in the property, the removal of the rubble in the event of a collapse and the economic losses that are generated by stopping the operation of the company.
This type of insurance is a great ally of entrepreneurs, says Soria, because it helps them catch up, because during that time they are not generating income. The executive explains that just as there are insurances for the damages that a business may suffer, there are also insurances for damages to third parties. For example, if a visit is accidental on the premises of your company, it is a responsibility that you can transfer to insurance.
These eventualities tend to occur unexpectedly and many times business owners do not know how to react. Unfortunately, Mexico does not have a strong insurance culture, and the following figure shows. Of the 54 million economically active people, only 22% have some type of insurance, according to the National Commission for the Protection and Defense of Users of Financial Services (CONDUSEF) .
As for the insurance of material assets, says Soria, all large companies are insured, while in SMEs the level of insurance is lower. Which is the reason? The manager explains that it is due to two myths that you must break. The first is that people think that insurance is complicated to understand and that insurers do not pay, and the second is that they think they are expensive, although there are firms that offer facilities to contract and pay months without interest, with fractional payment, variable coverage, among other forms.
Ensure the success of your business
If you are still not convinced of taking out insurance, consider that having it will allow you to continue with your business in the event of an eventuality that damages it. “We tend to think that nothing will happen to us, but all people who invest in things have the possibility of losing them,” says Soria.
The benefits you get depend on the coverage you buy and covers depending on the damage that occurs. For example, if an office catches on fire, the insurance principle is to compensate for the damage and leave the place as it was before the incident occurred. What has to be repaired will be done, and what has to be replaced will be bought.
Next, Soria suggests some aspects that you should consider if you are going to buy insurance:
The first step is to understand what your company's need for protection is. It would not make sense to buy earthquake insurance if your company is located in an area where it does not tremble.
The less investment you have in assets, the value of the insurance will be less.
Some of the insurance that is available in the market is for property damage, vehicle insurance, medical expenses insurance, life insurance or company owner's policy.
The price of the insurance is determined according to the sum insured, which is the value of the goods you want to insure, and against which risks you want to protect them.
Try to keep accounting and records up to date so that the insurance company knows how to compensate.
Within the necessary documentation they will ask you for the constitutive act to verify that the company is working, in addition to personal identification.
Remember that no one is exempt from harm and it is best to be prepared for any eventuality. Think: “if you were left with nothing tomorrow, with how much money can you start again?” Says Soria. If you already have insurance and at some point you go through a financial imbalance, do not cancel it because “it is the time when it becomes a necessary expense, if something happens with your company you will not have money to deal with it, and then there if you will lose everything ”.
For the manager, the success of a company must be accompanied by certain supports that can be a business idea or innovation, but it can also be insurance. “The dream of entrepreneurship can end not because it was a bad idea or was poorly executed, but because the assets ran out.”