Risk and uncertainty are hydra-headed bottlenecks in Entrepreneurship. Ask any successful entrepreneur around what they did to overcome these risks and they’ll tell you a simple truth: Take calculated risk! This means making smart decisions that can help turn your visionary ideas into profits. And one best way to take calculated risk is by embracing Insurance.
1. Business Security
With Insurance, you are not disturbed by thoughts of insecurity that may pose a risk to your business. Even when others are threatened with the fear of losing their investment to fire, theft, or civil commotion, you can focus on your business knowing that you’ll be compensated in an event of loss.
2. Distribution of Risk
Running a business comes with humongous risk such as financial risk, competitive risk, bankruptcy, environmental risk, political and economic risk. By getting your risk insured, you can spread them to your insurer rather than sink in it alone. This gives you time to focus on your business while an insurance company shoulder the risk on your behalf.
3. Easy Access to Loans
As an entrepreneur, you can access bank loans by using your insurance certificate as collateral. Once your assets are insured, banks can easily give you loans to transact business.
4. Personal Protection
Insurance safeguards you against life perils like illness and permanent disability. While Health Insurance covers your health, Life Insurance bequeaths financial assets to your dependents so funds can be available to the running of the business and for their upkeep.
5. Business Continuity
In an event of permanent disability, death or retirement, your business will continue unrestrained with the help of Insurance. Insurance policies like Keyman Insurance can come in handy to preserve business continuity if you decide to step aside due to personal reasons or illness.
Top 7 Insurance Plans for Entrepreneurs
Since insurance allows entrepreneurs to gain compensation for their insured perils, risks then becomes quite easy to manage. The following are top 7 Insurance plans every entrepreneur should have.
1. Keyman Insurance
Like its name entails, Keyman Insurance is a life insurance policy that a company buys for top executives critical to the business. Because business longevity lies in its sustainability, key people who run business need to be covered. For example, you might consider buying the policy for yourself as the CEO, the manager of your company or other employees holding valuable positions. Once any of these individuals were to suddenly fall ill or die, a lump sum is paid to the business to cover the cost of any profit losses, replacement staff, or loan repayments.
2. Combined Fire & Burglary
What would be the fate of your business if razed by fire or burglary? You’ll agree with me that fire and burglars are twin threats to business survival. Whether you run a small grocery shop or large-scale poultry farm, consider getting an insurance policy to give you financial compensation in an event of loss. The Combined Fire & Burglary is important because it helps to fast-track immediate resumption of business if stalled by the damages from fire or theft.
3. Maximum Investment Plan
With a Maximum Investment Plan you can grow and expand your business through disciplined savings. The MIP offers a long-term duration of 5 years which allows for a huge lump sum that can be reinvested in the business. You are eligible to take up this plan if you are under the age of 60 years and can access an interest loan to a maximum of 70% of the fund balance.
4. Cornerstone Universal Plan
If you’re looking for a short-term savings plan with guaranteed interest over a two-year period, consider the Cornerstone Universal Plan. The CUP offers a minimum contribution of N10,000 with 5% MPR as fixed by the CBN. While it allows you access to Life Insurance based on the added death benefit, you can tender the policy as collateral to banks and get loans for your business.
5. Marine Insurance
In a bid to meet the demand of the market, import and export of goods and services are expected. Marine Insurance provides cover for the loss or damage of goods and any transport or cargo where the items were transferred and point of destination. In addition, if you transport goods interstate, consider buying a Goods in Transit insurance to cover loss or damage to goods whilst in transit by road, rail, air, or inland waters within the geographical limit of Nigeria.
6. Travel Insurance
Imagine travelling overseas for a business trip only to find out that your luggage is missing on arrival. What will you do? Blame the airline, report the missing luggage, or call your travel insurer? Whilst its best practice to report such incident, calling your travel insurer is a plausible thing to do if you’re insured. By buying a Travel Insurance policy, you can mitigate these local and foreign travelling risks with ease. Travel Insurance lets you get reimbursement for travel issues caused by trip delaysand interruptions, health emergencies and loss of luggage.
7. Health Insurance
Good health is the foundation of wealth-making. Successful entrepreneurs who understand the importance of wealth make it a point of call to stay healthy. Health insurance covers any medical bill caused by illness. These bills can include drug expenses, hospitalization fees, and doctor consultation fee.
The pursuit of entrepreneurship presents opportunities for both personal and professional growth and fulfillment that may not be attainable through traditional employment. This includes financial gains, work-life balance, and freedom to determine a company’s future. However, to effectively enjoy these gains, an entrepreneur must be able to turn calculated risks into profit. In turning this risk into financial rewards, you’ll need a trusted Insurance company with a track record of service and claims delivery. Cornerstone Insurance Plc provides the best business insurance plans for entrepreneurs. Why not reach us today so we can help you achieve a secure life?
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