With all the change that is occurring in daily life and in the headlines at the moment, business owners can be somewhat forgiven for thinking that Insurance is something that can be postponed for an “easier” and more “business as usual” time. Before coming to a decision, we should be clear on what Insurance actually is. Everybody knows the term, but what is it and why is it so important for business owners?
At its most basic form, Insurance is a protection policy which is sought to mitigate (or hedge against) a risk.
This could range from covering a period of absence from work due to illness, to covering loss of rental income if a property you rent out cannot be used as a result of fire or flood damage. In both instances a business owner would lose significant income were they not to have adequate Insurance in place.
Covid-19 has also identified a significant lack of personal protection that many Shareholders and Directors have not been insured against. Unfortunately, many business owners have become ill, or in some circumstances died, as a result of Covid-19. Those without the essential coverage for Life Insurance and Critical Illness cover are unfortunately leaving their family in a vulnerable position.
Prior research by the Association of British Insurers identified that over one in four primary income providers do not have a Life Insurance policy in place, thereby potentially leaving their families open to financial problems if they died.
Whilst there are many personal and commercial insurance policies that are needed, Covid-19 has really drawn attention to the most basic risk of a primary income provider not being able to ensure adequate income would continue if they were to be extremely ill, or decease in regards to providing for their home and family.
In the testing times we currently operate in, the questions we ask our clients in regard to these types of products are:
- Who is financially dependent on you?
- What would happen to your financial dependants and your business if you died or were ill for a long time?
Enquire today to see where we could help protect you and your business interests.
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Stay safe!
The Team @ One Click Finance.
The Digital Commercial Finance Broker.
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