From Inconvenient to Disastrous: BI Insurance Safeguards your Business

As a small business operator, have you ever wondered what you would do when the unexpected happens? Have you at all asked a small business insurance broker how might your business fare if your main computer breaks down or is attacked by a vicious virus, or the building catches fire?  Any one of these events can cause disruption in your operations, and the financial loss and impact on your business can be grievous.

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What small businesses should understand is that the sooner they put a business risk management plan in place, the better they can survive the impact of potentially devastating loss. While natural events, such as the recent Queensland flood wreaked untold damages to businesses in the Sunshine Coast, the more common causes of business interruption are IT-related and human error. Our considerable dependence on technology on every level and across industries makes these disruptions no less catastrophic.

A report released by Fitch Ratings and posted on Insurance Business revealed how cyberattacks could even challenge the most specialised of business insurers. The scale of financial loss can be calamitous because of the tight interdependence of suppliers and providers for any of their products and services to be delivered at all. “The interconnectedness of today’s technology makes it possible to spread a computer virus within seconds around the globe. In addition, consequences such as loss of reputation and other intangible damage can be very difficult if not impossible to insure,” the report said.

However, if the heart and life of your business rely on keeping highly valuable records of customer and operational files, or if your connection with your customers is mainly online, it makes indisputable sense to obtain Sunshine Coast insurance for your business that covers damages from cyber assaults to IT systems shutdowns.

No business is immune to losses from events that range from the inconvenient to catastrophic. However, you can only design realistic and far-sighted measures to cope with the risks through action plans that minimize the effects of losses on your business. Will the stream of customers in your storefront open you up to personal injury claims? Owning a fleet of vehicles makes you vulnerable to motor accidents.

Effective risk management requires that you identify the risks to your business, and manage those risks against the potential for loss. A business interruption insurance is one way to help cover your back against BI losses.

The policies may be complex to understand at first, so it’s best to consult with an insurance broker. Your insurance broker should be able to identify and analyse the risks so that he can develop a business interruption policy that covers the specific risks and needs of your business.

(Source: Cyber Poses Credit Risk to Insurers who Offer it, Insurance Business Online)

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This advice does not take into account any of your particular objectives, financial situation or needs. For this reason, before you act on this advice, you should consider the appropriateness of the advice taking into account your own objectives, financial situation and needs.

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