June 9, 2021
Building and running a small or medium-sized business is a dream come true for many people. It is not easy, it costs a lot of effort, capital and demands great sacrifices. Therefore, protecting that enormous investment of money, time and work is essential to keep the dream afloat. This is where insurance for SMEs and companies come in. If you still do not know how they work, what options exist and, above all, why you should hire them, do not take off, because in the following lines we will explain it to you.
Transfer risk to others: your best strategy
Any company is exposed to risks. From not being able to continue due to lack of money, to suffering damage to its facilities due to a catastrophe; not forgetting cyber risks –a growing problem in Mexico – and the physical danger to which employees are exposed, to name just a few.
But what if you could have a “strategic partner” that allows you to absorb the monetary costs of those risks so that you don’t worry about getting ahead in case something happens? The good news is that there are companies that are in charge of doing this and guarantee you partial or total compensation for the damage caused by certain extraordinary events or that may occur on a day-to-day basis: insurance companies.
When contracting an insurance for SMEs or companies, you pay only a premium periodically for the benefits package that the policy covers in the event of an event stipulated in the clauses. The payment of this premium is considerably much less than if you had to pay all the expenses derived from an adverse event.
Insurance for SMEs and companies more common
Hiring insurance is not exclusive to large companies; the offer is so diverse and customizable that many SMEs turn to them. And if there is something that the pandemic has taught us, it is how unpredictable things can become, so any entrepreneur or business owner should at least consider insurance within their planning and budgets.
Among the extensive portfolio that is currently offered to legal entities or companies in Mexico, these are the most common:
- Business insurance. Protect your company against any risk derived from its business activity. Depending on the coverage, it can include from protection of damages to the facilities to civil liability for damages to third parties and payments in case of cessation of commercial activity for reasons stipulated in the policy.
- Auto and fleet insurance. Provides protection for your entire vehicle staff. The coverage can include from civil liability or even theft of units or losses due to claims.
- Accident and / or illness insurance for employees. It saves you the hassle of costly lawsuits if one of your employees has a mishap during working hours.
- Life insurance for employees. They are usually provided as an additional benefit. Some insurers offer this coverage at a discount to their payroll, which is cheaper for them than if they hire it from outside.
- Key man insurance. Covers the economic imbalance resulting from the premature death or disability of a person considered essential for the profitability of the company.
- Credit or non-payment insurance by third parties. Covers the monetary imbalance resulting from the non-payment of your company’s credit sales or the insolvency of your clients.
Coverages vary according to the insurer, and their maximum amounts are customized according to the level of support you want to obtain and the risk assessment study that the insurer makes of your company.
It should be noted that the insurance policy for SMEs and companies usually has many technical components, so, before hiring, we recommend that you advise yourself very well with the support of your entire team, as well as the information from your insurance agent.
Don’t hesitate to take the next step in protecting your business assets. With your insurance, you sure do grow faster.
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