LET us talk business and I mean the basic, old fashioned ‘’exchange of goods and services for money in order to make a profit’’ kind of business.
We are constantly reminded that government is not in a position to create enough jobs for the many graduates we have.
The private sector too can only do so much to reduce the unemployment gap that keeps on widening every day. If you are one of the few who have decided to start a business or you are already engaged in running a business whether in a company or as a sole trader then let’s talk business and insurance of course.
Most insurance policies are indemnity policies meaning they are aimed at putting you back to the financial position you were in before the accident or any other reason you had for claiming. This simply means that if you managed to make a profit out of your indemnity policy there might have been some element of fraud involved. Chances are the insurer just could not prove the fraud and they will now watch all your moves like a hawk and you do not want that.
If insurance companies work so hard to make sure you do not make profit out of the policies you take with them then how can one make profit either way but still remain within the boundaries of the law? There is no secret formula but a matter of using the lemon at your disposal to make ‘profitable’ lemonade.
The trick is to start asking yourself how you can use the policies you have to create a competitive advantage against your industry rivals or motivate your human resources to increase revenue. One important question to ask yourself when talking of competitive advantage is ‘why should customers buy what I’m selling and not the competitors’ products?’
In the already saturated industry of cabs and taxis one can gain some mileage if they mention in their marketing campaign that they have passenger liability cover for their customers.
We all know that accidents do happen but why is it that some people call an uninsured cab for transport instead of one that will compensate them in the event of injuries or death? The answer probably lies in that they did not have full information and if they had known they would probably spread the word and this would certainly increase your revenue.
Businesses in the service industry know that providing negligent advice or services to clients can result in lawsuits, expenses and damages being awarded against the service provider.
Some professionals are required by law to have what is called Professional indemnity cover to protect them from such claims and lawsuits. While it is clear how crucial this cover is for professionals in order to protect them one can also use it to gain a competitive edge.
Some clients are very confidential in their business dealings and to land such a client you may need more than just your word to win them over.
A client’s private information can be leaked by mistake and competitors use that information to steal their customers and you need to show your potential client that if such an incident occurs they are covered.
Professional indemnity cover takes care of such issues and errors or omissions which the service provider may make in the course of servicing a client.
Policies such as stated benefits which cover accidental injuries or death to staff even after working hours can motivate your human resource to go an extra mile for the company.
Some employees who work under risky conditions would hesitate to work overtime when they know they are not covered should anything happen even when that overtime would mean a considerable increase in the company’s revenue.
Insurance can help protect your business, increase your market share or help penetrate a new market and it all depends on how you choose to view it.