Small business owners are often juggling so many responsibilities that it’s easy for them to forget about the importance of risk management. However, according to New Zealand’s largest broking collective, small businesses should have insurance needs as one of their top priorities.
In a recent blog entry, NZBrokers outlined three main risk categories small business owners face: financial risk, physical risk, and human risk.
“While there are steps you can take to mitigate these risks, there are always aspects that are completely out of your hands,” said NZBrokers.
According to NZBrokers, one way to alleviate these risks is by setting strong expectations around workplace health and safety requirements and developing a culture of safety. Another way is to recruit, train, and keep the best employees possible.
However, the broking collective pointed out that no matter how careful entrepreneurs are, unexpected events can and will occur.
“While many small business owners have considered and planned for most risks, it’s impossible to predict and prevent every single risk facing your business,” said NZBrokers. “And when it happens - do you have the capital or cash to put it right? That’s where insurance comes in.”
“The right insurance can financially protect you from losses in case adverse events occur. Like most small business owners, you’re probably well aware of this and have taken out insurance policies for this very reason.”
“It’s essential to ensure you’re covered for all the unforeseen events that could potentially cause losses for your business. Without a crystal ball to see into the future, that could seem like a daunting task. However, by working with an experienced insurance broker who is also a risk advisor, you can identify the risks in your business and put the right policies in place to protect against them.”
