Small businesses are more likely than larger ones to experience potential emergencies, but while most entrepreneurs realize they need some type of insurance, few are pros at navigating risk management.
A recent survey commissioned by RSA Canada revealed that contingency planning was not a priority for the majority of small business owners, but a thorough plan and adequate insurance can mean the difference between the business’ survival and failure in the event of an unforeseen disaster.
Though you will have a number of customized risk management recommendations to share with your clients based on the critical components of their operation, there are still several questions brokers should be asking all entrepreneurs:
- Business Disruption: Supplier mishaps or equipment failure, for example, can cause sudden productivity or profit losses, or interfere with the ability to cover continuing expenses – What are the necessary back-up procedures?
- Weather Damage: This increasing challenge is triggered by climate change – Have you considered and planned for the most common severe weather threats?
- Crime: Fraud, vandalism, theft, and emerging technological and cyber misconduct pose major threats – Which security measures should be implemented?
- Succession Planning and Talent Management: Hiring and retaining the right people is vital – What steps are you taking to ensure employees feel engaged in the business, are adequately trained and keeping up to date on job skills? A strong and stable workforce is the lifeblood of a small business. Along with the business benefits, an investment in employees can have positive impact on insurance premiums over the long term.
Once your clients have a documented plan in place, ensure it is updated regularly and shared with the appropriate audiences. This list is just a starting point, so do tailor your recommendations by circumstance and visit rsabroker.ca/commercial for additional insights and information.