The Small and Medium Enterprises (SME) sector has been consistently contributing to India’s GDP (Gross Domestic Product) over the last five decades. With easy availability of project finance, more and more professionals are taking the plunge and turning entrepreneurs. However, statistics show that the true challenge faced by Indian entrepreneurs lie in successfully establishing their businesses. A business, they say, is often vulnerable to risks arising from unforeseen eventualities.
Listed below are seven common risks faced by business owners:
- Malfunctioning equipments: Office equipments play a vital role in the quality of service extended by any business. Simple equipment like servers, workstations, scanners, or printers can cripple your business if they cease functioning.
- Manpower issues: Manpower is the life force of an organisation, clearly an asset to every business. This asset however can jeopardize the operations of a unit due to irregular attendance on account of health issues.
- Theft of valuables or loss of money: While each business is unique, theft of valuables or loss of money can burn a hole in the business’ current account. Smooth functioning of a company may get disturbed due to this set back.
- Damage due to fire: What can be worse than losing your business to fire? Fire can have a detrimental effect not only on the premises and equipment in your workplace but also on the psyche of the owners and the employees.
- Natural disasters: Natural disasters can catch a business owner off-guard. Within minutes, the entire set-up can be ruined. Be it an established organisation or a new one, natural disasters can take a toll on the functioning of a business and paralyse the rate of growth.
- Third party liability: Third parties to a business are creditors, customers, competitors, etc. Every business, its directors and key employees should be protected from third party liabilities as a lawsuit filed by either of them can prove hazardous in the long run.
- Non-Compliance of laws: In the event of being charged for non-compliance of rules and regulations, a business should be prepared to not only investigate the matter but also bear the financial repercussions.
The Way Ahead:
Operational, physical, and compliance-oriented risks need to be handled effectively by business units for sustainable growth. This can be achieved by opting for insurance plans – an ideal method that provides every business with:
- Financial relief: An entrepreneur can effortlessly mitigate any crises without letting it adversely affect the financial health of the company. An insurance plan provides peace of mind; a must-have for spearheading the show.
- Continuity: Unplanned expenses can severely augment the cash outflow of your business by impairing your day-to-day operations. Preparedness to meet such contingencies can cover costs to ensure a smooth continuity of your business.
Insurance plans like Group Health Policies that cover medical expenses of employees can be instrumental in curbing the risks related to manpower. Other plans offer protection from monetary losses arising due to fire and theft. Add-on covers help by covering business losses due to natural disasters.
Click here to know more about comprehensive insurance plans that mitigate risks and safeguard your business.
We are a team of experienced industry professionals committed to sharing our knowledge and skills with small & medium enterprises.