Insurance Commercial Insurance

Getting Government Discounted Capital? Protect Your Investment With Business Insurance

It's well known among business analysts that it is the SME sector that really drives the economy, offering more jobs and eventually, becoming large enough to pay larger tax volumes for the government to hopefully reinvest in other economic initiatives.
To help the SME sector out and to hopefully fuel further growth, the government as backed a scheme to promote cheaper lending to SMEs.
This is now known as the National Loan Guarantee Scheme; where the banks are encouraged to reduce the cost of their loans to smaller businesses in exchange for a government guarantee on the loan amount; often resulting in a decrease of 1% on standard bank lending rates.
The UK government has already fronted £5 billion for the scheme, with a view to offer a further £20 billion over the next two years.
Whilst useful for giving SMEs the capital required to stay afloat in these turbulent times, or even to expand, a loan is still a business risk.
The result has been a surge in Business Insurance policy buying; where business owners are doing their best to protect their company and their investment.
The problem here however is that many of these business owners have little expertise in choosing a business insurance policy; much of their time is dedicated to running their business, understanding the industry and dealing with day-to-day management, so their understanding of the business insurance industry and the kinds of cover available is likely to be limited.
As with any service that is outsourced, it is good to consult with an expert in the field who's working hours are dedicated to understanding and sourcing exactly what it is that you want.
Whilst a business owner can wear many hats, they cannot be an expert in everything.
So in the case of those businesses that manage to secure government backed capital, consulting with a specialist Business Insurance Broker would be a good way to ascertain precisely what cover the business needs, whilst identifying activities the business can undertake to further reduce their risks.
Unlike with off-the-shelf insurance policies, a Commercial Insurance Broker can tailor your insurance policy so that you only pay for the cover that you need.
An off-the-shelf policy however may cover some of the bases to excess whilst wholly neglecting other parts that may be vital to your business.
The problem is that you may not know what cover you truly need, until you need it; by which point it's too late if the policy you bought online can't help you.
So, if you want to manage your business risks effectively, get some outside help and speak to an experienced commercial insurance broker to find out how you can cover yourself and your business against catastrophe.

You might also like on "Insurance"

Leave a reply