Insurance and management of risk for small business owners

Many owners of small businesses believe really only when they have an adequate and comprehensive insurance
Program for their business, they will be "protected" financial losses. Setting aside the
Print gray areas on the fine most of the insurance policies, there are numerous casualties insurance cannot
be extended.

Some of these losses than small enterprises suffered after the occurrence of the accident. are lost goodwill to its customers due to a failure to deliver goods on time; loss of faith for employees to step
provide a positive work environment and higher losses which have no financial impact
at first, but gradually translate by financial losses.

While insurance is important in the compensation of the owners of small businesses in case of fire damage their
the properties or accident injuries and loss of life and downtime in productivity, causing
small business owners must practise risk management in order to create a more sustainable business
and have a competitive advantage over their competitors in order to minimize their time lost as a result of the costs.

Risk management-based methods are

1 Avoiding risks

Procedures simple and things that most small business owners took for granted can have enormous impact
When they have resulted in the accident. Always practice the maxim "better safe than sorry."

2 Reduction of risks and losses

Be aware of the impact of risk and accident insurance, to develop a system of prevention or reduction of losses in
to minimize the occurrence of risk and losses when the risk has happened.

3 Transfer of risk of

The risk of transfer to third parties such as insurance company.

4 Maintenance of risk and the absorption of losses.

If the transfer of risk is not possible, you may have to absorb some risk or loss. Some of
insurance policies require the insured to bear part of the mandate of allowable losses or
excess.

Organize a complete coverage for small businesses is crucial for survival, many small
companies were neglected or ignored the important of coverage appropriate for their business, when
accident arrives, they found themselves in financial distress and thus lose their customers
their competitors.

It is therefore advisable to consult a professional for appropriate insurance coverage and, mainly, good risk management practice.

SK Wong is a trader of the Charter with an MBA in Finance. It surrently offers services and risk management and Marketing training to its local business community. There now also focus on Marketing Internet strategy to help small and home businesses in his community to complement and support their business offline. Get more small and Home Business Marketing and finance ideas and strategies in its Strategy of Marketing Internet centre.