Insurance for a small business – does it make sense? - Insurance for a small business - does it make sense?

Insurance for a small business is a novelty in Poland. Most entrepreneurs assume that insurance is available only for large companies. In their opinion, a small company should not spend money on such financial services. In today’s article we will consider whether a small company can benefit from insurance. We will also discuss whether it is profitable for the company.

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What kind of insurance for a small business?

The insurance offer for small companies is different than in the case of large companies. Due to their smaller financial capacity, small businesses can in some cases only obtain partial insurance. This is due to their financial capacity. An insurance broker will not treat them as a priority client either, because they guarantee a lower margin. In such a case, it is best to buy insurance in a bank in the form of cross-selling. A large part of the formalities is then handled by the bank which reduces their operating costs making their insurance cheaper.

What can I insure?

If the margin on your products or services allows you to do this, you can insure your sales. If you have products that can be sold with a delayed payment date. In such a case you have to take into account that it will significantly reduce your financial liquidity. This type of insurance can be very beneficial for you. Then you spend only a part of your margin that you can get. For this reason, you don’t have to worry about losing liquidity with one or more unreliable customers.

Another insurance that you can buy is for your employees. It can be either accident insurance or health insurance. This will increase the value of your company to potential employees and extend the period for which you can keep them at work. The best example of this type of insurance is Medicover, PZU or Luxmed.

How much will it cost me?

In our case, the key issue is to adapt the costs to our capabilities. The truth is that it is rather large companies that can offer cheap insurance. This is where you should look for a provider of such services. You can also consult an insurance broker, but be careful. A broker lives of a fee and in case of a small company he is not interested in selling something cheap.

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