The world of business has its rewards, but it also has its risks. One of the biggest fear that prevents many from being entrepreneurs is the fear of failure. And this isn’t only about the failure to make profitable business decisions, but it is also about the fear of making mistakes.
But these risks will forever be a part of running a business, and it should not deter you from starting your own venture. Insurance policies for businesses are all about minimizing these risks, helping you realize your dreams. In this article, we will walk you through some of the best insurance policies you should opt for as a business.
1. Professional liability insurance (Errors and Omissions Insurance)
The professional liability insurance covers the legal costs that arise from defending yourself against the negligence claims made by your clients. This scenario happens when the clients face some form of losses due to the advice or service that you had provided them.
The professional liability insurance covers your legal costs and some damages that will be specified by the insurance company. Different industries have certain variations when it comes to professional indemnity insurance coverage and conditions to compensate for different circumstances.
2. Product liability insurance
If your business specializes in making products for the general market, then a product liability insurance is a must-have. Professional Liability Insurance provides coverage for damages caused by your service/advice, while Product Liability Insurance provides coverage for damages caused by your products.
You might think about why you would need such an insurance cover as you are confident in your product. And this is why many businesses get stopped in their tracks after getting a lawsuit, as they weren’t prepared for it in the first place. Save yourself from such a misconception, choose a product liability insurance to future proof your company.
3. Medical Insurance
Medical insurance for employees is mandatory in the Dubai and Abu Dhabi. If you are hiring someone in your business or company, they must be provided medical insurance.
In Dubai, the DHA (Dubai Health Authority) put forward the law of mandatory medical insurance and this applies to all economic areas of Dubai, including free trade zones.
4. Property Insurance
Property Insurance for businesses also known as Commercial Property Insurance offers coverage for the physical assets of your company from damages. Natural disasters are not typically covered under the insurance policy. However, this is largely up to the insurance provider.
The benefit of property insurance cover is that it protects the contents within and outside of your building, granted that they are within the same property.
When your business possesses assets that are very valuable, it is always better to insure them.
5. Workers Compensation Insurance
People are the engine of one’s business and taking care of them will boost their morale and hence their performance. This is where the Worker’s compensation insurance comes in. If something were to happen to them, including death, while working for you, then you are liable to pay for their medical bills and work benefits.
One can combine Workmen’s Compensation with a Group Life policy at a nominal cost thereby providing your employees with a safety net in case something were to happen to them outside of working hours.
6. Business Interruption Insurance
Sometimes, events can unfold that can interrupt the working of your business such as a fire. And not being able to operate your business results in loss of income.
Business Interruption Insurance provides compensation for days where your business lost its income. This will help you pay the employees or pay off any standing dues that were caused when your business wasn’t able to operate.
The coverage of Business Interruption Insurance is based on the past records of business income. The extent of coverage is determined by the insurance provider. With a really good insurance provider, you can even get coverage for transport costs that would incur if you were to move your business to a new place.
7. Cyber Liability and Privacy Insurance
If your business delves in digital technologies or services, then you will definitely need a Cyber Liability and Privacy Insurance. The insurance will cover the losses that happen to your business due to data breaches or cyber crimes against you.
Since more and more businesses are adopting the online business model, the need for Cyber Liability and Privacy Insurance carries more weight than ever before.
8. Vehicle Insurance
In the UAE and many parts of the world, vehicle insurance is mandatory. If your business own more than two vehicles, you are eligible for fleet insurance. The benefit of choosing fleet insurance is that it a single insurance that can be applied to all the vehicles.
It saves you both time and money, plus you don’t have to bother with individual insurances and their paperwork. The ease of use is also felt when claims are made as the process is much quicker and easier.
Choose the best for your business, we are at your service!
Starting a business can be nerve-racking, and choosing an insurance policy can be confusing. However, they are important for the sustainability of your business.
Leave the hard work to us, we will help you choose what is best insurance policies for your business. Our experts will review your business and suggest the best insurance policies based on the type of your business and growth stage from the best insurers in UAE. Contact New Age Insurance Brokers today and grow your business today.
We all know the importance of insurance coverage on the various assets we possess ranging from our houses to the automobiles that we use to travel. Insurance coverage is taken on your life, family, education, and whatnot. All of this is because of the fact that we do not want to end up without it when something bad befalls us.
But insurance coverage isn’t a once in a blue moon thing that you can avoid caring as soon as you opt for one. Just like the frequent assessments that you conduct for all your possessions, insurance to needs to be reviewed at regular intervals. And you don’t have spent days on it, just a few hours once in a year will do!
Now let us delve into why an individual or an enterprise should revise their insurances annually.
To review the changes in circumstances
One of the prime reasons why one needs to review their insurances frequently is to inform the insurance company about the changes that you and your condition or the objects that you have insured have undergone during that time period. It can be anything from an upgrade on the value of the assets to the addition of a new driver into the clause. Adding this new information into the insurance clauses can ensure that your insurance holds good when the need arises and saves you from the headaches of claims not being paid out in case the necessary details were not furnished in a timely manner.
To avail any discounts or other offers
This is one of the best reasons why you should review your insurances annually. Over time, there might be discounts and bonuses that these insurance companies provide their customers with. Being updated about these benefits at the necessary times can be used to plan your insuring of assets wisely and lead to saving more money.
Discounts and offers include special rates for existing customers, lower rates for insuring more than one automobile with the same insurance provider, the status of usage of an automobile that you have insured and so on. Don’t let these opportunities to miss through your fingers due to negligence.
To notice the surge in insurance premiums
Most of the customers might have programmed their insurance such a way that it is deducted from their bank accounts at the required intervals. For the same reason, they fail to notice the surge in prices that have been affecting their insurance policies.
The increase in prices can be because of many reasons like the increase in government taxation which are legitimate as opposed to the totally ridiculous reasons some providers have for the increase in its policy premiums. So the timely review of the insurances can make the customer more aware of the current rates.
To ensure the status, relevance, and performance of the policy
Some policies get outdated over time in terms of the coverage they provide and the various exclusions in a policy. The conditions and clauses change and the policy that once suited you and your assets may not be the ideal option to cover it. In such cases, one must go through the current policy and contact the provider to discuss new policies/clauses that have come up and can be beneficially added to the insurance policy. Any policy or clause that is not beneficial must be revoked and a new one must be adopted.
To ensure the best life insurance policy
Unlike other policies, one of the policies that customer needs to check and review frequently is the life insurance policy. Life, as we know, undergoes constant changes and so should the policy that covers it. Marital status, a new member is born, the health status of the insured, current occupation and so many other life situations have a say in the type or amount of insurance one must choose to cover their lives.
Taking care of all these facts and the timely review of the insurances will give you the peace of mind you expects when you sign up for an insurance policy. As the saying goes it is always better to be cautious and be happy than lament about missed opportunities.
There is no need to panic if you haven’t gone through your insurance policies in a while, we are here to help you out. Contact New Age, the leading Insurance Brokers in Dubai to know how you can improve your existing plans or choose the best one if you haven’t already! Our experts are here to help!
Small and Medium Enterprises (SMEs) i.e. businesses with a turnover of less than AED 250 Million are the backbone of Dubai’s economy, representing 95% of all establishments in the Emirate. These SME businesses account for 42% of the workforce and contribute around 40% to the total value add generated in Dubai’s economy. The power behind this engine is the business owner/key person.
Defining Keyman Insurance
It is the dream, vision and risk-taking ability of the owner that gives birth to the business and through his hard work, it flourishes. Banks lend to and suppliers work with the businesses because of the ability of the owner/key person to make profits and keep financial commitments.
While a business normally insures all its assets (building/stocks etc.) However, it sometimes forgets to insure is most valuable asset – the KEYMAN. Keyman could be the Founding Owner / Director / Key Technical Personnel.
Keyman Insurance protects businesses from falling in the hands of creditors/banks in the event of untimely death of the key person. In such a situation, insurance policy will pay off to the creditors / banks and business can be passed on to the next generation – debt-free. Of course, all loans are secured – but if all assets (which are under lien to the creditors/banks) go to repay those liabilities, what remains for the family?
Keyman Insurance is the cheapest form of ensuring that family / remaining shareholders get business without any liabilities, market is assured that it is business as usual and that their funds are secured in CASH and not through sale of assets.
Cost of Keyman Insurance is negligible and most organizations add it to the cost of borrowing.
Following diagrams illustrate this concept:
 THE STATE OF SMALL & MEDIUM ENTERPRISES (SMEs) IN DUBAI: A report by Dubai SME An agency of the Department of Economic Development
How does Keyman Insurance Work?
For the Key Employee
A company purchases a life insurance policy on the key employee, pays the premiums and is the beneficiary of the policy. If that person unexpectedly dies, the company receives the insurance payoff. The purpose of Keyman insurance is to help the company survive the blow of losing the person who makes the business work. The company can use the insurance proceeds for expenses until it can find a replacement person.
For the Partnership
Keyman Insurance in partnerships can be used to stabilise business in the event of death of a partner. Company insures all the partners in the proportion of their share in the firm. Company pays the premium. In the event of death of a partner, insurance proceeds can be used to pay deceased partner’s share in the business and surviving partner inherits the business. This arrangement avoids having to sell off company assets to pay for deceased person’s share.
Having Keyman Insurance is a very effective arrangement as most of the organisations do not have their assets in cash to take care of such contingencies and moreover, surviving partners may not wish to do business with deceased partner’s spouse and vice versa.
How we can help you
New Age Insurance Brokers is a fully-licensed (by the U.A.E. Ministry of Economy) insurance brokerage and represent many local and international companies of repute. We will assess your need and place your coverage in the most cost-effective way. If warranted, we may place business with one or more companies.
There are nearly a million new malware attacks every day and 62% of these attacks are carried out on small and medium business enterprises. It takes nearly 200 days to even discover that a data breach has occurred!
In the modern internet era, it is data everywhere. Data is stored, retrieved and transacted across businesses and industry. A strong IT infrastructure at times appears too weak in the face of the onslaught of cybercriminals and hackers. Cyber security related issues are becoming a big source of threat, which can either make or mar the future. The after-effects of a data breach can be daunting to overcome and painful to recover from. Loss of face, customers, pride and confidence are some of the immediate reactions. The financial loss, compensation, and legal issues are the final nails on the coffin.
Estimated Loss sustained during wannacry outbreak
During May 2017, wannacry ransomware outbreak made companies lose more than $4 billion in just under a week, infecting over 30,000 machines across the world. We will not delve further into the intricacies of the vulnerability or the technical details behind it, but rather focus on how cyber insurance can help companies tackle such attacks and overcome them with peace of mind.
How does Cyber Insurance help?
Data breach or loss or leakage of customers’ personal data is ground for hefty penalties in several countries. Privacy of data is to be ensured at all costs. Therefore, to minimize losses, under cyber insurance policies, insurance companies provide the services of a crisis-management team, (experts in cyber security), immediately when a data breach is noticed. The crisis management team arrests the further slide of data, plugs loopholes in the system, attempts to repair and rebuild company reputation and estimates the losses suffered or the costs associated with the breach.
Cyber liability cover gives both First-party and third-party. First party coverage is the loss and expenses sustained by the holder of the policy, while third-party coverage protects victims of data theft or other cyber-crimes. Cyber insurance helps a company cover the costs of compensation, penalties and the expenses associated with data protection and data retrieval. Apart from this, claims arising out of the failure of the victim to secure personally identifiable information of a third party are also covered. Regulatory actions, privacy breach and failure to detect or disclose a security failure are some of the other issues covered under cyber insurance. Even the notifications, public relations exercise (For example, informing customers not to panic or that their data and money is safe etc.), legal guidance are all included in the coverage.
The outage period or interruptions and the loss sustained due to such interruptions are covered. Ransomware infections lock a computer and demand a ransom amount to get them ‘unlocked.’ This ransom payment is also covered under cyber insurance.
The outlook for the next decade
As we get more and more electronically connected, cyber threat is real and is here to stay. It all depends on how an organization copes up with it. The effort should be to minimize the financial and other implications of the cyber attack. The ability of the organizations to make informed decisions prior to the attack and their preparedness for facing any eventuality is the key to successful crisis management. An appropriate cyber insurance policy will help you tide over the crisis with ease.
At NAIB, we know the importance of sensitive data and how it affects your business interests. Our comprehensive range of cyber security schemes covering network security, cyber liability and privacy for first and third party risks shall help you sail through the risks associated with cyber threats at competitive rates.
Electronic Equipment Insurance is an insurance policy that applies to low power/voltage equipment. It covers the owner, hirer or the lessor for the cost of accidental or unforeseen material damages to the said equipment(s).
What equipment can be covered under an EEI policy?
The policy owner must understand that the insurance covers only a particular set of electronic equipment. Many insurance companies call these equipment “silent” operating systems because the internal parts do not make much noise under operation. Examples of such “silent” electronic equipment include:
- Power management equipment like Voltage stabilizers, UPS, etc.
- Computer and related peripherals
- Medical equipment like an X-ray machine, Ultrasound Machines, Cath Lab, etc.
- Telecommunications equipment
- Control panels
- Televisual equipment
- Navigational equipment
- Electronic equipment for research
The Electronic Equipment policy not only covers hardware but also the cost of software that was installed on the machine. Thus, having Electronic Equipment insurance will help the organization safeguard its capital from unexpected losses.
To get adequate coverage, providing detailed information up front about the equipment to be insured and how and where they are being operated is essential. The following is the list of specifics that the insurance companies typically ask from the organization to determine coverage and premium amounts:
- The model and make of the equipment
- Type of machinery
- Type of industry
- Experience of the industry
- Replacement value of the equipment
- Application and/or usage of the machinery
- Estimated cost of the restoration of data
- Professional experience of the workers handling the equipment
- Standard of management
What events can result in a claim under an Electronic Equipment Insurance policy?
When you choose Electronic Equipment Insurance, it is critical that you know what types of damages are covered against the policy. Let us review the types of damage that are typically covered by EE insurance.
- Fire, lightning, and explosion
- Mechanical or electrical breakdown
- Flood or water damage
- Smoke or corrosive gasses
- Electrical damages like short circuits
- Natural calamities like storms, cyclones, or any other atmospheric disturbances
- Theft or burglary
- Damage caused by the failure of air conditioning equipment
- Human errors like faulty operation, careless/negligent operations
- Riot, strikes and malicious damage
- Environmental factors like water, humidity and environmental contamination
In case of a claim, the Electronic Equipment Insurance covers the replacement of the parts, the cost of the total work hours spent on repairs, cost incurred to restore information/data and even freight charges. There are different levels of these plans, so based on the type of the insurance that you choose, the benefits will vary.
Who is it for?
After reviewing the basics of Electronic Equipment Insurance, it is clear that the insurance policy is beneficial for organizations that house several electronic machines. Since the majority of industries today use electronic machines like computers to streamline and coordinate projects, it is advised that you cover them with a robust insurance plan.
If you are wondering whether you should insure your electronic equipment or in the process of selecting Electronic Equipment Insurance for your organization, let us review the specific variables in your case and help you make a decision.