Change is constant—that is the nature of business. But do not get carried away by your ever-changing and growing business without considering the gaps in cover that can occur. Innovation and growth are inextricably tied up with risk, so you should continually make sure your policies grow with your business and cover any new risks that pop up.
This applies to businesses both large and small. Smaller businesses typically sacrifice cover in order to remain financially lean. Without adequate cover, smaller businesses are not poised for growth and could stall or prevent expansion. The global economy pressures bigger businesses to export, which opens up a slew of regulatory and legal risks. Penetrating other markets is inherently hazardous. Globalisation also tends to lengthen supply chains, leading to business interruption risks due to more suppliers located farther and farther away.
Smaller businesses that lack a full-time risk manager need to carefully monitor growth in combination with their existing cover. Consider key person insurance to minimise business disruption and help ensure growth if one of your essential personnel cannot work, and business interruption insurance to stabilise your supply chain. (more…)