Uncertainty is always an unwelcome bedfellow as far as the business community is concerned. Business owners in Egypt have had a difficult couple of years given the changes that have swept through the wider Middle East and their own country in particular. It’s at times like these that thoughts inevitably turn to the vexed question of insurance, a boon when something goes terribly wrong and a bane when everything is running smoothly.
When it’s business as usual, grumbles about premiums costing too much often surface along with questions about the need to have so much insurance cover in the first place. It would be right to ask such questions in an ideal world. But we don’t live in some kind of utopia. Given life’s ups and downs, the truth is you can’t have enough insurance.
All businesses, whether large or small, based in Cairo or Alexandria or Timbuktu for that matter, have people at their heart – customers, employees, shareholders and owners. Naturally, all interact to a greater or lesser extent with colleagues and the community at large. Inevitably, this can sometimes lead to problems – a plumber sent out on a job causes accidental damage to a customer’s carpet or an employee trips, falls and is injured because someone hasn’t tidied equipment away properly.
There are many such scenarios and all can lead to any company – your company – being sued for damages through the courts. Still stubbornly believe you don’t need comprehensive business liability insurance in today’s litigious-minded world? Who’s going to pay the potentially-crippling legal fees if your company lands up in court? Surely it’s not worth the risk. Click here for more information on liabilities insurance.
In an uncertain world, it makes sound business sense to regularly review the liability risk management strategy employed by a company. While good commercial liability insurance may cost in terms of the bottom line, the consequences of inadequate cover can be catastrophic. Although it is prudent to protect against fire, flood and theft, the usual hazards which business owners associate with insurance cover and potential financial loss has many guises.
For example, business owners looking to widen their company’s horizons and markets by expanding overseas could easily find themselves at great disadvantage, especially if they’re not too familiar with the intricacies of the culture or the language. So it makes sense to hire a good English-speaking local to act as your proxy in all but name.
It all works perfectly, for a time. Then suddenly you learn the person you’ve relied on so much is ill. Or, worse still, they’ve died. Now your plans are in shreds. Profits tumble as you scuttle around desperately looking for a suitable replacement. And it’s at that moment you realise you should have looked seriously at key person insurance instead of dismissing it out of hand as another unnecessary expense.
Many businesses owners working on shoe-string budgets have found themselves in such a position. If you have to rely heavily on one or maybe two people in order to run your business successfully, then key person insurance can at least provide the funds if the worst happens to enable the company to keep going until a replacement is found. Don’t leave it until it’s too late.