It’s a new year and still, the effects of the coronavirus are as pervasive as ever. Not only has it disrupted global economic chains, it has also dramatically transformed and introduced new challenges for organisations all over. Inevitably so, this translates to a shift in business priorities and spending for organisations.
Work-from-home routines, closures in businesses, and a dip in consumer spending all contribute to a need to cut down on spending. Though the answer is obvious, there are some areas in which businesses shouldn’t skimp on, and that’s insurance. Business insurance is indelibly important for both multinational corporations and start-ups.
Just how essential is business insurance?
Beyond just a safety measure, business insurance is pivotal to helping you weather through times of uncertainty and turmoil. Many consider the potential mishaps as far and few, but just the occurrence of one can wipe out the capital and resources put into a business. Protection from intellectual property theft, boosted efforts in hiring and retaining employees, and lowering risks of cyber threats – these are all examples of how comprehensive business insurance could aid your business.
Ways to manage your business insurance spending
Now that we’ve established the importance of business insurance, how do you innovatively keep your business covered for potential mishaps without cutting coverage? Although unfortunate events seem unlikely, the price to pay being uninsured outweighs the cost of insurance itself. Also, because business insurance considers a range of aspects, our team of experienced brokers can help small or growing companies to focus on SME insurance packages.
Research available business insurance policy options
As it is with most things, you shouldn’t pass on the value of good, backed-up, well-supported research. Before you purchase, it makes sense to check on the product offerings, other choices in the market, and what exact needs this policy fulfills for you and your business.
No purchasing decision should be rushed, especially when it comes to your business insurance. Planning for and working on your business takes up a significant amount of time but it’s equally important to invest resources into insurance planning as well. With good research, you’ll have a better understanding of what you are looking for in a plan as well, especially for SMEs.
Reassess and refocus spending
Assuming you already have business insurance set up, crisis management calls for a reassessment of your spending. Keeping the lights on, paying bonuses, and making up for losses, especially during the pandemic, can be extremely stressful and put a strain on your overall budget.
Reassessing your spending can help you get an idea of where you may be overpaying. This is also one of the reasons why working with an insurance broker might be an ideal solution. Your broker will be able to guide you along the conversation should there be a need to redress and refocus your business insurance premiums.
Cut down on other expenditure
Finally, because business insurance plans are a must for organisations big and small, a good way to manage spending would be to cut down on other expenditure. And no, we don’t mean cutting down on employee benefits. Your employees are the bedrock of your business – failing to serve your community, employees, and customers during a pandemic could tarnish your business reputation.
One way you could cut down on costs will be to reduce payments for physical leasing space, since everyone is working from home. It can also be helpful to review insurance payments from time to time. Other non-consequential elements could be food for the pantry, unnecessary equipment or hiring new employees during a tricky time.
Consult our team of specialists for advice
Having worked with corporations large and small, our team of insurance brokers at Expat Insurance Singapore are well versed to help you figure out the right kind of small business insurance plan for your needs. Crisis management is not a problem with our trusted advisors. Get in touch with our specialists.