In today’s economy which relies heavily on trade, both local and international, issues such as protracted default and insolvent buyers are ubiquitous. Unfamiliarity with new markets can discourage sellers from extending the credit needed to conduct domestic and international business.
In addition, the risk of non-payments and defaults from suppliers is emerging as a noticeable risk across the globe. A default or non-payment can happen due to several reasons:
- Insolvency of the buyer
- Global economic developments
- Change in domestic trade, trade policies.
- Changes in foreign government regulations
- Political instability
- Willful defaults
Thus, it is essential for businesses to consider credit insurance. A trade credit insurance policy protects a business from a substantial loss. It is possible that one big client defaulting can sink your entire business. Therefore, you need to understand how this insurance works and assess its suitability for your situation.
How Trade Credit Insurance Works?
Trade credit insurance mainly works by safeguarding a business’s cash flow if a debtor defaults on a payment. As mentioned above, there could be many reasons for defaulting.
Unfortunately, these situations can occur from time to time. Credit insurance gives your business a peace of mind so that your cash flow is protected in the event of a non-payment. Without it, you may have to borrow or sell assets to fill the resulting cash shortfall. This situation is quite common, but it is preventable by taking advantage of an insurance policy ahead of time.
Why Should You Consider Trade Credit Insurance?
For a business that takes payment upfront, credit insurance is of no use for them. If your company offers customers with terms of credit, you should consider this coverage as an option.
Although you may not have the scale or need for it immediately, it is better to consider it so you can enjoy peace of mind as you continue to grow. It can even be used by those businesses that trade with international customers. As a risk management tool, credit insurance is an excellent way to protect against risk factors that lie outside of your control. Keep in mind that no business can escape from bad debt.
More than Just Protecting Your Cash Flow:
If you want to operate your business successfully, you need to have confidence in everything you do. Credit and risk management often gets ignored until it’s too late. Most people realize the significance of protecting physical assets, such as property or major equipment, but don’t consider their debtor ledger. By applying for trade insurance, you can gain assurance in your credit management practices.
The Bottom Line
Trade credit insurance is an essential tool that can help cover your company’s receivables and maximize profits over the long-term.
Unlike other insurance policies, this policy can change throughout the policy period, making the relationship between you and the broker quite dynamic.
To know more about trade credit insurance, consult an experienced and well-known insurance broker in the United Arab Emirates.
As a business owner, you would want to preserve your company’s bottom line. For that, you will need insurance, which provides coverage against any damage such as natural calamities, thefts, employees’ sickness, income loss, death, or injuries, any judicial proceedings, and sabotage.
Business insurance is a complicated matter. Corporate insurance brokers work for the company’s benefit and help its employees inform key decisions related to insurance needs. The broker advises you about the risks that your business can face in the future. The insurance covers provided by Insurance companies in Dubai emphasize your company’s security and safety. By applying their knowledge and experience, they can make the insurance procedure and deals effortlessly for your company.
Therefore, you should be very careful when deciding who your broker should be. In order to get the best out of your business, you need to search for a reliable and established corporate insurance broker. Here are a few vital points that you need to target to get the perfect match.
- Ties With Other Companies (Reputation)
Your broker should have a good reputation within the business world. If an insurance broker is growing significantly, getting a positive review, and being approached by big businesses, you should consider that broker.
- Area of Expertise
Today, the business world is more specialized than ever. Different businesses can have distinctive needs. Because an insurance broker is a partner in your business and risk management, they should very well understand your industry.
If you are consulting with an expert who doesn’t specialize in your particular field of business, you may not get top quality advice. Thus, it is crucial to ensure that you know who you are dealing with. Broker’s expertise is required to get you the best insurance coverage at a competitive rate.
Remember, not every broker is an expert at every risk. So make sure your broker is well aware of your business.
- Technologically Forward-Thinking
Work with a broker who is aware of and agreeable with technology solutions. By looking into the broker’s application process, you can get an idea about the broker.
- Availability of Your Broker
A corporate insurance broker has a very tough job on his shoulders, as any company can have significant setbacks that require immediate consultation. So, make sure that the broker is available when you need them.
As a business owner, ensure that you get the right corporate insurance policies. However, you may face many roadblocks when reviewing and selecting insurance policies. When you search for an established insurance company on your own, you may end up becoming a victim of illicit insurance firms.
Therefore, the best thing to do is to hire corporate insurance brokers. They can find corporate insurance policies that provide good coverage with affordable premiums as per your requirements.
When we talk about insurance policies, the very first thing that comes in our mind is an insurance agent or insurance broker. Many people don’t know that the role and job responsibilities of an insurance broker are different from an insurance agent. It is very important to understand the difference between both the roles to make the best use of insurance services to protect business as well as personal interests.
Both the insurance brokers and agents are licensed professionals who help individuals and corporate with insurance policies. The role of an insurance broker is more like an advisor to a consumer and he directly represents the consumer. They don’t sell insurance products but help their clients to find the right insurance policies and risk coverage as per their needs. They provide all the essential information related to different insurance companies and their policies to make a comparison. In a way, they help their clients to find the right insurance policy and protection plan while focusing on their business growth or personal lifestyle depending on if the client is looking for individual insurance plans or corporate insurance plans.
Insurance Broker vs. Insurance Agent
An insurance agent directly represents an insurance company and focuses on selling insurance products to consumers on behalf of the company. Unlike an insurance broker, an insurance agent only targets to increase the sales of the insurer by bringing more clients on board. He/she works as a bridge between the insurance company and consumers for selling insurance products. An insurance agent offers products of a company and gives a detailed insight of the product to the consumers. He also helps clients with paperwork and premiums for the chosen insurance plans.
In general, if you are looking for a new insurance policy and not sure about which insurance policies from which company will be best for your needs, then you should go to an insurance broker. Insurance brokers work with different insurance companies and keep an eye on the market to help their clients get the best coverage plans. They are equipped with technical knowledge and expertise to serve their clients with their insurance and financial planning.
An insurance broker performs the following duties:
- Risk analysis and evaluation based on client’s business information
- Research insurance policies, coverage plans, terms, conditions, and prices on behalf of the client
- Give appropriate advice and insurance solutions to the clients
- Keep updated with the insurance market and policies
- Negotiate with the insurance companies on behalf of the client
- Responsible for progress reports and written acknowledgments
- Offers insurance consultancy during negotiations, claims, risk management, and premiums
There are many insurance broking companies that closely work with their clients to craft their coverage plans as per their needs. They offer all kinds of insurance and investment solutions to their clients. If you are looking for insurance broking companies in UAE, you can connect with the professionals and experts at New Age Insurance Brokers for the quality of services. They have years of experience in providing insurance consultancy and solutions as per the clients’ demands.
The insurance business is evolving more aggressively with growing competition in the insurance sector. The main focus of an insurance agent is to sell personalized insurance services and products to the customers. When it comes to selling insurance products, insurance agents are the backbone of this business as they directly interact with potential consumers. In order to boost their conversion rates, insurance agents need to market them effectively to reach out to more customers. Here’re the top 5 creative marketing ideas for insurance agents that will help them expand and grow their business.
Amp Up Your Networking
When it comes to buying insurance services or products, almost everyone seeks recommendations from family members, friends, and colleagues. To be on their list, you need to get your name in the market. Let people know about your name, business, offerings, and services through networking through various professional networks. Bigger the networking and contacts, the more chances to get potential consumers seeking your products.
Use Social Media
In today’s tech-driven digital insurance world, you should focus on improving your online visibility through different modes. Social media marketing is the most powerful tool to reach out and interact with your audience. You can easily target your audience using your social media posts and promotions. Create your profiles on all popular social media platforms to stretch your reach. Make sure to keep your social media posting interesting and informative related to insurance services and products.
Improve your email strategy
Email marketing is one of the most productive ways to drive customers in the insurance business. If you haven’t used it yet, now is the time to make your email marketing strategies. Emails are the easiest medium to keep in touch with your clients and wish them on important occasions such as their birthdays and anniversaries. Well-time emails can also inform your clients about your services, new offering, promotions, and products to new as well as existing customers. Focus more on what your audience needs and promote your services accordingly for better ROI.
Monitor your online ratings
Your reputation is the most decisive factor that influences the purchasing decision of your potential consumers. In today’s digital, people search and shop online. They find and research about businesses, individuals, products, and services before making any decision. More positive words about your services and products can generate more business and leads. You should monitor your online ratings and reviews to ensure a good reputation on the internet. You can take the help of online reputation management services to build your positive image online.
Automate your marketing strategies
Being an insurance agent means you are managing a long list of tasks for customer excellence. Maintaining a healthy relationship with your clients while growing up the business is essential for every insurance agent. It is very difficult to manage and monitor all your tasks manually on a daily, weekly, monthly, and annual basis. This is where you should think about automated marketing strategies for some of your tasks. For example, you can automate your emails and social media posts to consistently reach your audience even when you don’t have enough time while following up with your clients.
As an insurance agent, it is very important to keep updated with where your audience is and what they are looking for. We hope that these creative marketing ideas for insurance agents will help you keep growing your business online as well as offline.
Running a company involves inherent risks that you can’t always control or manage all by yourself. When things get out of hand in situations, such as being sued by a client, damage due to natural disasters, or someone getting injured on your premises, having only the right corporate insurance coverage can save you from inconvenience and reputation damage.
What is Corporate Insurance?
Corporate insurance is a type of insurance policy designed for organizations to provide protection against unanticipated operational risks, including financial losses, theft, accidents, and employees’ health benefits.
However, each corporate insurance policy comes with its own limits. Thus, it is better that you consult one of the most reliable and experienced corporate insurance brokers in Dubai before making a selection.
Based on your corporate insurance plan, your business will enjoy the following benefits:
- Protect your business in the event of lawsuit or liability claim
One accident, one injury, or one broken contract can quickly fade away the financial stability, especially if you are a small company. While losing the case will require your business to provide the declared amount as compensation, winning a case will still mean paying for the legal defense. But, with corporate insurance, you can concentrate on your business rather than worrying about all these unnecessary matters.
- Keep your business running in the event of a natural disaster
Have you ever imagined what would happen to your business in the event of a natural disaster such as floods and earthquake? If not, you must. A corporate insurance broker will help you select the right insurance coverage so that your business can survive a serious disaster. With P&C insurance, your insurer will pay you the income your company would have made while it is out of operation (if the loss is covered under the agreement). It is smart to choose to insure not only the lost income but also the salaries needed to pay to employees.
- Protect human assets in case of disability or death
What will happen to your business if you can’t fulfill the duties and responsibilities due to a serious heart attack, accident, or other unfortunate circumstances? Sometimes, you might be out of the picture for weeks, months, or even years. In such cases, company-owned life and disability insurance provide coverage for the loss of income you would have generated. In case of death or disability, the insurer provides funds for the purchase of your interest under a buy-sell agreement. There are also other policies like keyman insurance to cover the losses caused by the disability or death of a key employee.
- Increases Your Business Credibility
The one way that you might not have considered till now is that corporate insurance increases your business credibility in the eyes of prospective clients, customers, and even employees. With full-fledged protection, they see you as a safe bet. If anything goes wrong with the work you do for them, they know that you have a way to make up for the loss. Therefore, many companies proudly declare the phrase “insured” on their websites. It helps them build trust, which is critical in today’s business environment.
These are just a few of the several benefits of having corporate insurance. It is best for your business to ensure that you choose the right coverage with the help of a reliable corporate insurance broker and get the maximum benefit out of it.