Saturday, May 05, 2007

Philippine Business Insurance

The often mistake Philippine business owners make is not getting an insurance for their business thinking of business insurance as an unnecessary expense, rather than a business essential especially since the overall business climate today is not exactly that great due to low sales, high rental cost and operating expenses. But the Filipino business owner should first and foremost realize that it doesn’t take much to lose an entire business to fire, theft, accidents, dishonest employees, or other unforeseen events.

Convincing one to get a business insurance is doubly hard compared to traditional types of insurance like life insurance or health insurance which is already difficult to sell to begin with since when you hear about insurance the first thing that pops up your mind is pushy insurance agents trying to close a sale and the attitude of most Filipinos towards thinking about their future can be summed up into two words which is also a popular Filipino saying, "bahala na" which means what ever tomorrow brings makes for low and slow adaptation of insurance for the typical Filipino.

Business insurance cannot be applied to all business. Micro or small businesses like sari-sari stores or a carinderia makes it impractical to get an insurance in which monthly payments for the insurance will greatly affect business profitability. Medium to large scale business will greatly benefit from getting a business insurance particularly factories and the manufacturing sector. Factories who produce products that are susceptible to fire like paper or textile should definitely get insured. Running a business is like waging a war campaign in which you should be well prepared and covered at all fronts for any eventuality.

No comments: